Document:

Securities Purchase Agreement, dated June 28, 2007

 Exhibit 10.01 
 SECURITIES PURCHASE AGREEMENT 
 This Securities Purchase Agreement (this
“Agreement”) is dated as of June 28, 2007, between Brooke Corporation, a Kansas corporation (the “Company”) and the investors identified on the signature pages hereto (each, an
“Investor” and collectively, the “Investors”). 
 WHEREAS, the Company is offering on a “best
efforts” basis in a private placement to “accredited investors” (as such term in defined in Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”)) of units (the
“Units”) of up to 1,500,000 shares of the Company’s common stock, $0.01 par value per share (the “Common Stock”) and five-year warrants (the “Warrant”) to purchase shares of the Common Stock,
in the form attached hereto at Exhibit A; 
 WHEREAS, each Unit will be offered at a purchase price of $13.50 per Unit (the
“Per Unit Purchase Price”) and will consist of (i) one share of Common Stock and (ii) a Warrant to purchase a half share of Common Stock; 
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act and Rule 506 promulgated thereunder, the Company desires to issue and sell to each
Investor, and each Investor, severally and not jointly, desires to purchase from the Company certain securities of the Company, as more fully described in this Agreement. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the
Investors agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 1.1 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: 
 “Action” means
any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility. 
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with a Person, as such terms are used in and construed under Rule 144. 
 “Business
Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions in the State of New York or Kansas are authorized or required by law or other governmental action to close.

 “Closing” means the closing of the purchase and sale of the Units
pursuant to Article II. 
 “Closing Date” means the Business Day immediately following the date on which all
of the conditions set forth in Sections 5.1 and 5.2 hereof are satisfied or waived, or such other date as the parties may agree. 
 “Commission” means the Securities and Exchange Commission. 
 “Common Stock
Equivalents” means any securities of the Company or any Subsidiary which entitle the holder thereof to acquire Common Stock at any time, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock. 
 “Company Counsel” means Kutak Rock LLP. 
 “Company Deliverables” has the meaning set forth in Section 2.2(a). 
 “Company Shares” means the unregistered shares of Common Stock issued to the Investors by the Company pursuant to this
Agreement. 
 “Company’s IP” has the meaning set forth in Section 3.1(p). 
 “Confidential Information” means trade secrets, confidential information and know-how (including but not limited to
ideas, formulae, compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications, support documentation, drawings, specifications, designs, business and marketing plans, and
customer and supplier lists and related information). 
 “Disclosure Letter” means any of the disclosures
hereto containing information relating to the Company pursuant to Article III and other provisions hereof that has been provided to the Investors on the date hereof. 
 “Disclosure Materials” has the meaning set forth in Section 3.1(h). 
 “Effective Date” means the date that the initial Registration Statement filed pursuant to Section 2(a), 2(b) or 2(c)
of the Registration Rights Agreement is first declared effective by the Commission. 
 “Exchange Act” means
the Securities Exchange Act of 1934, as amended. 
 “GAAP” means U.S. generally accepted accounting
principles. 
 “Infringe” has the meaning set forth in Section 3.1(p). 
  

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 “Intellectual Property” shall mean any or all of the following and all
rights in, arising out of, or associated therewith: (a) all United States, international and foreign registered patents and applications therefor and all underlying patent rights, reissues, divisions, renewals, extensions, provisionals,
continuations and continuations-in-part thereof; (b) all inventions (whether patentable or not), ideas, processes, invention disclosures, improvements, trade secrets, proprietary information, know-how, technology, improvements, discoveries,
technical data, customer lists, proprietary processes and formulae, all source and object code, algorithms, architectures, structures, display screens, layouts, development tools and all documentation and media constituting, describing or relating
to the above, including, without limitation, manuals, memoranda and records; (c) all copyrights, copyrights registrations and applications therefor, copyrightable material including derivative works, revisions, transformations and adaptations,
material that is subject to non-copyright disclosure protections, and all other works of authorship and designs (whether or not copyrightable), and all other rights corresponding thereto throughout the world; (d) all trade names, logos, trade
dress, common law trademarks and service marks, trademark and service mark registrations and applications therefor throughout the world; (e) domain names; (f) web sites and related content; (g) intellectual property rights acquired by
license or agreement; (h) damages or benefits derived from any action arising out of or related to the foregoing, including laws controlling computer and Internet rights; (i) all manuals, documentation and materials relating to the above;
and (j) any equivalent rights to any of the foregoing anywhere in the world. 
 “Investment Amount”
means, with respect to each Investor, the Investment Amount indicated on such Investor’s signature page to this Agreement. 
 “Investor Deliverables” has the meaning set forth in Section 2.2(b). 
 “Investor
Party” has the meaning set forth in Section 4.5. 
 “License Agreements” has the meaning set
forth in Section 3.1(p). 
 “Lien” means any lien, charge, encumbrance, security interest, right of
first refusal or other restrictions of any kind, other than restrictions on the transfer of securities arising under federal or state securities laws and regulations. 
 “Material Adverse Effect” means any of (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 condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material and
adverse impairment to the Company’s ability to perform on a timely basis its obligations under any Transaction Document. 
 “New York Courts” means the state and federal courts sitting in the State of New York. 
  

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 “Person” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 “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. 
 “Registration Statement”
means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Investors of the Company Shares and the Warrant Shares to the extent provided for therein. 
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date of this Agreement, among
the Company and the Investors, in the form of Exhibit B hereto. 
 “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. 
 “SEC Reports” has the meaning set forth in Section 3.1(h). 
 “Securities” means, collectively, the Company Shares, the Warrants, the Warrant Shares and the Units. 
 “Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but
shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 
 “Subsidiary” means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the Commission under the Exchange Act. 
 “Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin
Board or Pink Sheets LLC), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board or Pink Sheets LLC), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC
Bulletin Board or Pink Sheets LLC, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the OTC Bulletin Board or Pink Sheets LLC (or any
similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business
Day. 
 “Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ Global 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. 
  

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 “Transaction Documents” means this Agreement, the Registration Rights
Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder. 
 “Warrant Shares” mean the shares of Common Stock issuable upon the exercise of the Warrants being sold under this Agreement. 
 ARTICLE II. 
 PURCHASE AND SALE 
 2.1 Closing. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Investor, and each Investor shall, severally and not jointly, purchase from
the Company, the Units representing such Investor’s Investment Amount. The Closing shall take place at the offices of Brooke Corporation in Overland Park, Kansas on the Closing Date, or at such other location or time as the parties may agree.

 2.2 Closing Deliveries. (a) At the Closing, the Company shall deliver or cause to be delivered to each Investor the following
(the “Company Deliverables”): 
 (i) an irrevocable letter of instruction to the Company’s transfer
agent directing the transfer agent to issue to such Investor a stock certificate representing a number of Company Shares equal to such Investor’s Investment Amount divided by the Per Unit Purchase Price, registered in the name of such Investor;

 (ii) a Warrant, registered in the name of such Investor pursuant to which such Investor shall have the right to acquire the
number of shares of Common Stock equal to 50% of the number of Company Shares issuable to such Investor pursuant to Section 2.2(a)(i); 
 (iii) the legal opinion of Company Counsel, in substantially the form previously provided to Oppenheimer & Co. Inc., as lead placement agent, addressed to the Investors; and 
 (iv) the Registration Rights Agreement, duly executed by the Company. 
 (b) At the Closing, each Investor shall deliver or cause to be delivered to the Company the following (the “Investor
Deliverables”): 
 (i) its Investment Amount, in United States dollars and in immediately available funds, by wire
transfer to an account designated in writing by the Company for such purpose, with such wire transfer instructions attached hereto at Exhibit C; and 
  

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 (ii) the Registration Rights Agreement, duly executed by such Investor. 
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES

 3.1 Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to each
Investor: 
 (a) Subsidiaries. The Company has no direct or indirect Subsidiaries other than as specified in the SEC
Reports. Except as set forth in Section 3.1(a) of the Disclosure Letter, the Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding shares
of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. 
 (b) Organization and Qualification. The Company and each Subsidiary are duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company and each Subsidiary are duly qualified to conduct its respective businesses and are in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse Effect. 
 (c) 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 and otherwise to carry out its obligations thereunder. The execution and delivery of each
of the Transaction Documents by the Company and the consummation by it of the transactions contemplated 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 in connection therewith. Each Transaction Document 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 binding obligation of the
Company enforceable against the Company in accordance with its terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, and 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. 
  

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 (d) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) except as set forth in Section 3.1(d) of the Disclosure Letter, 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 or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, 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 or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any
property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect. 
 (e) Filings, Consents and Approvals. Except as set forth in Section 3.1(e) of the Disclosure
Letter, 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) the filing with the Commission of one or more Registration Statements in accordance with the requirements of the Registration
Rights Agreement, (ii) filings required by state securities laws, (iii) the filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act (iv) the filings required in accordance with
Sections 4.4 and 4.7, and (iv) those that have been made or obtained prior to the date of this Agreement. 
 (f)
Issuance of the Securities. The Securities have been duly authorized and, when issued and paid for in accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The
Company has reserved from its duly authorized capital stock the shares of Common Stock issuable pursuant to this Agreement and the Warrants in order to issue the Company Shares and the Warrant Shares. 
 (g) Capitalization. Except as set forth in Section 3.1(g) of the Disclosure Letter, the number of shares and type of
all authorized, issued and outstanding capital stock of the Company, and all shares of Common Stock reserved for issuance under the Company’s various option and incentive plans, is specified in the SEC Reports. Except as specified in the SEC
Reports or Section 3.1(g) of the Disclosure Letter, no securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive right, right of participation, or any similar right
to participate in the transactions contemplated by the Transaction Documents. Except as specified in the SEC Reports or Section 3.1(g) of the Disclosure Letter, there are no outstanding options, warrants, scrip rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by 

  

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which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable
into shares of Common Stock. Except as set forth in Section 3.1(g) of the Disclosure Letter, the issue and sale of the Securities will not, immediately or with the passage of time, obligate the Company to issue shares of Common Stock or
other securities to any Person (other than the Investors) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. 
 (h) SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and
the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required by law to file such reports) (the foregoing materials being collectively
referred to herein as the “SEC Reports” and, together with the Disclosure Letter, the “Disclosure Materials”) on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their respective dates, 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. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing (or amendment, as applicable). Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise
specified in such financial statements or the notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash
flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments or as otherwise disclosed in the SEC Reports. 
 (i) [Reserved.] 
 (j) Material Changes. Since the date of the latest financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports or Section 3.1(j) of the Disclosure Letter, (i) there has
been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables,
accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to
its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing
Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. 
  

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 (k) Litigation. There is no Action which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents against the Company or the Securities or (ii) except as specifically disclosed in the SEC Reports or in Section 3.1(k) of the Disclosure Letter, would, if
there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof (in his or her capacity as
such), is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty, except as specifically disclosed in the SEC Reports or in
Section 3.1(k) of the Disclosure Letter. There has not been, and to the knowledge of the Company, there is not pending any investigation by the Commission involving the Company or any current or former director or officer of the Company
(in his or her capacity as such). The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

(l) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of
the employees of the Company. 
 (m) Compliance. Neither the Company nor any Subsidiary (i) is in default under or
in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that
it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (except to the extent such default or
violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse Effect. The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder, that are
currently applicable to it, except where such noncompliance would not have or reasonably be expected to result in a Material Adverse Effect. 
 (n) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to
conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, and neither the
Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such permits. 
  

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 (o) Title to Assets. Except as set forth in Section 3.1(o) of the
Disclosure Letter, the Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is material to their respective businesses and good and marketable title in all personal property owned by
them that is material to their respective businesses, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and, to the Company’s knowledge, enforceable leases of which the
Company and the Subsidiaries are in compliance, except as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 
 (p) Patents and Trademarks. 
 (i) Section 3.1(p) of the Disclosure Letter accurately sets forth all Intellectual Property that is material to the business of the Company and its Subsidiaries, viewed as a whole,
“Company’s IP.” The Company or one of its Subsidiaries is the sole and exclusive owner of all right, title and interest in and to Company’s IP (with no breaks in the chain of title thereof) free and clear of,
to its knowledge, any claim, security interest, lien, pledge, option, charge or encumbrance of any kind whatsoever. Company’s IP has not been used or enforced or failed to be used or enforced in a manner that would result in the abandonment,
cancellation or unenforceability of any of Company’s material rights in and to Company’s IP. 
 (ii) Except as set
forth in Section 3.1(p) of the Disclosure Letter, Company has not transferred any rights or interest in, or granted any exclusive license with respect to, any of the Company’s IP, to any third party. 
 (iii) All of Company’s IP is currently in compliance in all material respects with all legal requirements (including timely filings,
proofs and payments of fees) and is, to the Company’s knowledge, valid and enforceable. None of Company’s IP which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted has been or is now involved in any pending or threatened cancellation, dispute or litigation of which the Company is aware. No patent of the Company or its Subsidiaries has been or is now involved
in any interference, reissue, re-examination or opposition proceeding. 
 (iv) All of the licenses and sublicenses and
consent, royalty or other agreements concerning Company’s IP which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to
which the Company or any Subsidiary is a party or by which any of their assets are bound (other than generally commercially available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than $25,000 per
license) (collectively, “License Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties thereto and, to the Company’s knowledge, the other parties thereto, enforceable in accordance
with their terms, except to the extent that enforcement thereof may be 

  

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limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’
rights generally, and there exists no event or condition which, to the Company’s knowledge, will result in a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by the Company or any of
its Subsidiaries under any such License Agreement. 
 (v) The Company and its Subsidiaries own or have the valid right to use
all of the Company’s IP that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted and for the ownership, maintenance and
operation of the Company’s IP, free and clear of, to the Company’s knowledge, all liens, encumbrances, adverse claims or obligations to license all such owned Intellectual Property and Confidential Information, other than licenses entered
into in the ordinary course of the Company’s and its Subsidiaries’ businesses. The Company and its Subsidiaries have a valid and enforceable right to use all third party Intellectual Property and Confidential Information used or held for
use as the Company’s IP. 
 (vi) To the Company’s knowledge, the conduct of the Company’s and its
Subsidiaries’ businesses as currently conducted does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any confidentiality obligation owed to a
third party, and, to the Company’s knowledge, the Company’s IP which are necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted
are not being Infringed by any third party. There is no litigation or order pending or outstanding or, to the Company’s knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the ownership, use, validity or
enforceability of any of the Company’s IP or, to the Company’s knowledge, the Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential Information owned by a third party, and, to the Company’s
knowledge, there is no valid basis for the same. 
 (vii) The consummation of the transactions contemplated hereby and by the
other Transaction Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’ ownership or right to use any of the Company’s IP which is necessary for the conduct of
Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted. 
 (q) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in
which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. The Company has no reason to believe that it will not be able to renew its and the Subsidiaries’ existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business on terms consistent in all material respects with market for similar size companies as the Company and its
Subsidiaries for the lines of business of the Company and its Subsidiaries. 
  

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 (r) Transactions With Affiliates and Employees. None of the officers or directors
of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, which in each case is required to be disclosed in the SEC Reports and has not been
so disclosed. 
 (s) Internal Accounting Controls. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined
in Exchange Act rules 13a-14 and 15d-14) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the certifying officers by others
within those entities, particularly during the period in which the Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and
procedures in accordance with Regulation S-K under the Exchange Act for the Company’s most recently ended fiscal quarter or fiscal year-end (such date, the “Evaluation Date”). The Company presented in its most recently filed
Form 10-K or Form 10-Q the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant
changes in the Company’s internal controls (as such term is defined in Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that would significantly affect the Company’s internal controls.

 (t) Solvency. Based on the financial condition of the Company as of the Closing Date (and assuming that the Closing
shall have occurred), (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking
into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the
Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company
does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). 
  

 12 

 (u) Certain Fees. Except as described in Section 3.1(u) of the Disclosure
Letter, no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by this Agreement. The Investors shall have no obligation with respect to any fees or with respect to any claims (other than such fees or commissions owed by an Investor pursuant to written agreements executed by such Investor which
fees or commissions shall be the sole responsibility of such Investor) made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.

 (v) Certain Registration Matters. Assuming the accuracy of the Investors’ representations and warranties set
forth in Section 3.2(b)-(e), no registration under the Securities Act is required for the offer and sale of the Units by the Company to the Investors under the Transaction Documents. The Company is currently eligible to register the Company
Shares and the Warrant Shares for resale by the Investors under Form S-3 promulgated under the Securities Act, except to the extent that the SEC communicates to the Company that such resale would not constitute a “secondary offering”
permitted by Rule 415 of the Securities Act (as to which the Company makes no representation or warranty, notwithstanding anything contained in the Transaction Documents to the contrary). Except as specified in the Registration Rights Agreement and
in Section 3.1(v) of the Disclosure Letter, the Company has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights) to have any securities of the Company registered with the
Commission or any other governmental authority that have not been satisfied. 
 (w) Tax Status. Except for matters that
would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or
accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary which is not being contested. 
 (x) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the
Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to “accredited investors” within the meaning of Rule 501(a) under the Securities Act. 
 (y) Listing and Maintenance Requirements. Except as specified in the SEC Reports, the Company has not, in the two years preceding
the date hereof, received notice from any Trading Market to the effect that the Company is not in compliance with the listing or maintenance requirements thereof. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with the listing and maintenance requirements for continued listing of the Common Stock on the Trading Market on which the 

  

 13 

 
Common Stock is currently listed or quoted. The issuance and sale of the Securities under the Transaction Documents does not contravene the rules and
regulations of the Trading Market on which the Common Stock is currently listed or quoted, and no approval of the stockholders of the Company thereunder is required for the Company to issue and deliver to the Investors the Securities contemplated by
Transaction Documents. 
 (z) Acknowledgement Regarding Investor’s Trading Activity. Anything in this Agreement or
elsewhere herein to the contrary notwithstanding (except for Section 3.2(f) hereof), it is understood and acknowledged by the Company: (i) that none of the Investors have been asked by the Company to agree, nor has any Investor agreed, to
desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) that past or future open
market or other transactions by any Investor, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively impact the
market price of the Company’s publicly-traded securities; (iii) that any Investor, and counter-parties in “derivative” transactions to which any such Investor is a party, directly or indirectly, presently may have a
“short” position in the Common Stock, and (iv) that each Investor shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further
understands and acknowledges that (a) one or more Investors may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Warrant
Shares deliverable with respect to Securities are being determined and (b) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging
activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents. 
 (aa) No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or
reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company, which could affect the Company’s ability to perform any of its obligations under any of the
Transaction Documents, and the Company is current with respect to any fees owed to its accountants and lawyers. 
 (bb)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any
Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection with the placement of the
Securities. 
  

 14 

 (cc) Investment Company. The Company is not, and is not an Affiliate of, and
immediately following the Closing will not have become, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (dd) Real Property Holding Corporation. The Company is not, nor has ever been, a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon any Investor’s request. 
 (ee) No Additional Agreements. The Company does not have any agreement or understanding with any Investor with respect to the transactions contemplated by the Transaction Documents other than as specified in
the Transaction Documents and the Disclosure Materials. 
 (ff) Disclosure. Except with respect to information subject
to a separate confidentiality agreement, the Company confirms that neither it nor, to its knowledge, any Person acting on its behalf has provided any Investor or its respective agents or counsel with any information that the Company believes
constitutes material, non-public information except insofar as the existence and terms of the proposed transactions hereunder and the information contained herein or in the Transaction Documents or the Disclosure Letter may constitute such
information. The Company understands and confirms that the Investors will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All written disclosure provided to the Investors regarding the
Company, its business and the transactions contemplated hereby, furnished by or on behalf of the Company (including the Company’s representations and warranties set forth in this Agreement) do not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 
 3.2 Representations and Warranties of the Investors. Each Investor hereby, for itself and for no other Investor, represents and warrants to the Company as follows: 
 (a) Organization; Authority. Such Investor, if an entity, is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its
obligations thereunder. The execution, delivery and performance by such Investor of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or, if such Investor is not a corporation, such partnership,
limited liability company or other applicable like action, on the part of such Investor. Each of this Agreement and the Registration Rights Agreement has been duly executed by such Investor, and when delivered by such Investor in accordance with
terms hereof, will constitute the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the
public policy underlying such laws, and except as such enforceability may be limited by 

  

 15 

 
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) [Reserved] 
 (c) Investor Status. At the time such Investor was offered the Securities, it was, and at the date hereof it is, an
“accredited investor” as defined in Rule 501(a) under the Securities Act. Such Investor has completed and executed the Investor Questionnaire (attached to this Agreement as Exhibit D attached hereto and incorporated herein as
representations and warranties of such Investor under this Section 3.2) and that the information contained in such document is complete and accurate. Such Investor is not a registered broker-dealer under Section 15 of the Exchange Act.
Such Investor, either alone or together with its 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
Securities, and has so evaluated the merits and risks of such investment. Such Investor is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 

(d) [Reserved] 
 (e) Access to Information. Such Investor acknowledges that it has had the opportunity to review the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to
receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and the
Subsidiaries and their respective 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. Neither such inquiries nor any other investigation conducted by or on behalf
of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained
in the Transaction Documents. 
 (f) Certain Trading Activities.
Such Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Investor, engaged in any transactions in the securities of the Company (including, without limitations, any Short Sales
involving the Company’s securities) since the earlier to occur of (1) the time that such Investor was first contacted by the Company or any other Person regarding this investment in the Company and (2) the 30th day prior to the date of this Agreement. Such Investor covenants that neither it nor any Person acting on its behalf or
pursuant to any understanding with it will engage in any transactions in the securities of the Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed or 

  

 16 

 
in any manner that violates federal or state securities laws. Notwithstanding the foregoing, in the case of an Investor that is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such Investor’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such
Investor’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this
Agreement. Notwithstanding the foregoing, with respect only to Lehman, this Section shall only apply to the Global Trading Strategies group, as currently configured, of Lehman Brothers Holdings Inc., and shall not apply to any other person,
affiliate, subsidiary, business unit, area, group or division of Lehman Brothers Holdings Inc. Other than to other Persons party to this Agreement, such Investor has maintained the confidentiality of all disclosures made to it in connection with
this transaction (including the existence and terms of this transaction). 
 (g) Independent Investment Decision. Such
Investor has independently evaluated the merits of its decision to purchase Securities pursuant to this Agreement, and such Investor confirms that it has not relied on the advice of any other Investor’s business and/or legal counsel in making
such decision. Such Investor has received a copy of the Confidential Private Placement Memorandum and understands the risks involved with the purchase of Securities. 
 (h) Reliance. Such Investor understands and acknowledges that: (i) the Securities are being offered and sold to it without
registration under the Securities Act in a private placement that is exempt from the registration provisions of the Securities Act and (ii) the availability of such exemption depends in part on, and the Company will rely upon the accuracy and
truthfulness of, the foregoing representations and such Investor hereby consents to such reliance. 
 (i) Residency.
Such Investor is a resident of the jurisdiction set forth immediately below such Investor’s name on the signature pages hereto. 
 The Company
acknowledges and agrees that no Investor has made or makes any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2. 
 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES

 4.1 Transfer Restrictions. 
 (a) Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of the Securities other than pursuant to an effective registration statement, to the
Company, to an Affiliate of an Investor or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and
substance of which opinion shall be reasonably satisfactory to the Company and for which the Company shall pay reasonable fees and expenses, to the effect that such transfer does not require registration of such transferred Securities under the
Securities Act. 
  

 17 

 (b) Certificates evidencing the Securities will contain the following legend, until such
time as they are not required under Section 4.1(c): 
 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 AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 
 (c) The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities upon which it is stamped, if, unless otherwise required by state securities
laws, (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a generally acceptable form, to the
effect that such sale, assignment or transfer of the Securities may be made pursuant to Rule 144, or (iii) such holder provides the Company with reasonable assurance that the Securities can be sold, assigned or transferred pursuant to Rule
144(k). Following such time as restrictive legends are not required to be placed on certificates representing Securities pursuant to the preceding sentence, the Company will, no later than three Trading Days following the delivery by an Investor to
the Company or the Company’s transfer agent of a certificate representing Securities containing a restrictive legend and the foregoing evidence, deliver or cause to be delivered to such Investor a certificate representing such Securities that
is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section, except as it may
reasonably determine are necessary or appropriate to comply or to ensure compliance with those applicable laws that are enacted or modified after the Closing. The Company shall, upon request of such Investor, use commercially reasonable efforts to
deliver certificates hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions, if available, provided, that, the Company may, but will not be required to change its
transfer agent if its current transfer agent cannot deliver certificates electronically through the Depository Trust Corporation. 
  

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 (d) The Company acknowledges and agrees that an Investor may from time to time pledge,
and/or grant a security interest in some or all of the Securities in accordance with all applicable federal and state securities laws pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under the
terms of such agreement or account, such Investor may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer 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 may be required in connection with a subsequent transfer by the pledgee or secured party following default by the Investor or
otherwise. No notice shall be required of such pledge. At the appropriate Investor’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection
with a pledge or transfer of the Securities. 
 (e) If the Company shall fail for any reason or for no reason to issue to the
holder of the Securities within three (3) Trading Days after the occurrence of any of (i) through (iii) in Section 4.2(c) above, a certificate without such legend to the holder or to issue such Securities to such holder by
electronic delivery at the applicable balance account at DTC, and if on or after such Trading Day the holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the holder of such
Securities that the holder anticipated receiving without legend from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after such three (3) Trading Day period, and at the holder’s
request and in the holder’s discretion, either (i) pay cash to the holder in an amount equal to the holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such unlegended Securities shall terminate, or (ii) promptly honor its obligation to deliver to the holder such unlegended Securities as provided above and
pay cash to the holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price of the Common Stock on the date of exercise.

 4.2 Furnishing of Information. As long as any Investor owns the Securities, the Company covenants to use reasonable best efforts to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any Investor owns Securities, if the
Company is not required to file reports pursuant to such laws, it will use reasonable best efforts to prepare and furnish to the Investors and make publicly available in accordance with Rule 144(c) such information as is required for the Investors
to sell the Securities under Rule 144. The Company further covenants that it will use reasonable best efforts to take such further action as any holder of Securities may reasonably request, all to the extent required from time to time to enable such
Person to sell the Securities in compliance with Rule 144. 
  

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 4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the
Securities to the Investors, or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market in a manner that would require stockholder approval of the sale of the securities to
the Investors. 
 4.4 Securities Laws Disclosure; Publicity. 
 (a) By 5:30 p.m. (New York time) on the first Trading Day following the execution of this Agreement, and by 5:30 p.m. (New York time) on
the first Trading Day following the Closing Date (unless the Closing Date occurs on the same date as the execution of this Agreement, in which case only one press release will be required), the Company shall issue press releases disclosing the
transactions contemplated hereby and the Closing. On the second Trading Day following the execution of this Agreement, the Company will file a Current Report on Form 8-K disclosing the material terms of the Transaction Documents (and attach as
exhibits thereto the Transaction Documents), and on the second Trading Day following the Closing Date the Company will file an additional Current Report on Form 8-K to disclose the Closing (unless the Closing Date occurs on the same date as the
execution of this Agreement, in which case only one Form 8-K will be required). In addition, the Company will make such other filings and notices in the manner and time required by the Commission and the Trading Market on which the Common Stock is
listed. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Investor, or include the name of any Investor in any filing with the Commission (other than the Registration Statement and any exhibits to filings made in
respect of this transaction in accordance with periodic filing requirements under the Exchange Act) or any regulatory agency or Trading Market, without the prior written consent of such Investor, except to the extent such disclosure is required by
law or Trading Market regulations. 
 (b) From and after the Company’s issuing a press release describing the material
terms of the transactions contemplated by the Transaction Documents, no Investor shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of its respective officers, directors, employees
or agents, that is not disclosed in the Current Report on Form 8-K except with respect to any Investor that may have entered into a separate confidentiality agreement with the Company. The Company shall not, and shall cause each of its Subsidiaries
and its and each of their respective officers, directors, employees and agents, not to, provide any Investor with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the Current Report on
Form 8-K with the SEC without the express written consent of such Investor or as may be required under the terms of the Transaction Documents. 
 4.5 Indemnification of Investors. In addition to the indemnity provided in the Registration Rights Agreement, the Company will indemnify and hold the Investors and their directors, officers, stockholders, partners, employees and
agents (each, an “Investor Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
out-of-pocket attorneys’ fees and costs of investigation (collectively, “Losses”) that any such 

  

 20 

 
Investor Party may suffer or incur as a result of or relating to any misrepresentation, breach or inaccuracy of any representation, warranty, covenant or
agreement made by the Company in any Transaction Document. In addition to the indemnity contained herein, the Company will reimburse each Investor Party for its reasonable out-of-pocket legal and other expenses (including the reasonable
out-of-pocket cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as promptly as practicable after such expenses are incurred and invoiced. 
 4.6 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Investor or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Investor shall have executed a separate written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Investor shall be relying on the foregoing covenant in
effecting transactions in securities of the Company. 
 4.7 Listing of Securities. The Company agrees, (i) if the Company applies
to have the Common Stock traded on any other Trading Market, it will include in such application the Company Shares, and will take such other action as is necessary or desirable to cause the Company Shares to be listed on such other Trading Market
as promptly as possible, and (ii) it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and to comply in all material respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Trading Market. 
 4.8 Use of Proceeds. The Company will use the net proceeds from
the sale of the Units hereunder for the satisfaction of a portion of the Company’s debt, and not to redeem any Common Stock or Common Stock Equivalents. 
 4.9 Additional Issuances of Securities. The Company agrees that for a period beginning from the Closing until the later to occur of (a) the date that is ninety (90) days after a Registration Statement
has been declared effective by the Commission, or (b) the date that is six months following the Closing, the Company shall not issue any capital stock of the Company, including without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, capital stock of the Company (collectively, “Equivalents”). Notwithstanding the foregoing,
this Section 4.9 shall not apply in respect of the issuance of (A) capital stock or Equivalents issued to directors, officers, employees or consultants of the Company in connection with their service as directors or officers of the
Company, their employment by the Company or their retention as consultants by the Company pursuant to an equity compensation program approved by the Board of Directors of the Company (or the compensation committee of the Board of Directors of the
Company), (B) capital stock or Equivalents in connection with strategic alliances, acquisitions and as equity kickers in lease and financing transactions, the primary purpose of which is not to raise equity capital, (C) shares issued upon
the conversion or exercise of Equivalents issued prior to the date hereof, provided 

  

 21 

 
that such Equivalents have not been amended (other than automatically by their terms) since the date of this Agreement to increase the number of shares
issuable thereunder or to lower the exercise or conversion price thereof, or (D) shares issued or issuable by reason of a dividend, stock split or other distribution on capital stock. 
 4.10 The Company shall deliver, or cause to be delivered, the respective Securities purchased by each Investor to such Investor within 5 Trading Days of
the Closing Date. 
 ARTICLE V. 
 CONDITIONS PRECEDENT TO CLOSING 
 5.1 Conditions Precedent to the Obligations of the Investors to Purchase Securities. The
obligation of each Investor to acquire the Securities at the Closing is subject to the satisfaction, or waiver by such Investor, at or before the Closing, of each of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and correct in
all material respects as of the date when made and as of the Closing as though made on and as of such date; 
 (b)
Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior
to the Closing; 
 (c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; 
 (d) Adverse Changes. Since the date of execution of this Agreement, no event or series of events shall have occurred that
reasonably would have or result in a Material Adverse Effect; 
 (e) No Suspensions of Trading in Common Stock;
Listing. Trading in the Common Stock shall not have been suspended by the Commission or any Trading Market (except for any suspensions of trading of not more than one Trading Day solely to permit dissemination of material information regarding
the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have been at all times since such date listed for trading on a Trading Market; 
 (f) Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a);

 (g) Timing. The Closing shall have occurred no later than July 1, 2007; 
  

 22 

 (h) Legal Opinion. The Company shall have delivered or caused to have been
delivered a legal opinion reasonably acceptable to the Investors to the effect that the Company Shares, the Warrants and the Warrant Shares have been duly authorized, executed and delivered, and have been duly paid and are non-accessible; and

 (i) Minimum Funding. The Company shall have received minimum gross proceeds of not less than $15,000,000 from all
Investors. 
 5.2 Conditions Precedent to the Obligations of the Company to sell Securities. The obligation of the Company to sell the
Units at the Closing is subject to the satisfaction, or waiver by the Company, at or before the Closing, of each of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of each Investor contained herein shall be true and correct in all material respects as of the date when made and as of the Closing Date as
though made on and as of such date; 
 (b) Performance. Each Investor shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Investor at or prior to the Closing; 
 (c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; 
 (d) Investor Deliverables. Each Investor shall have delivered its Investors Deliverables in accordance with Section 2.2(b);

 (e) Timing. The Closing shall have occurred no later than July 1, 2007. 
 (f) Single Closing. The Company Shares and Warrants will be sold at a single Closing unless otherwise agreed to by the Company and
the Investors in writing. 
 ARTICLE VI. 
 MISCELLANEOUS 
 6.1 Fees and Expenses. Except as specified in Section 6.1 of the Disclosure Letter, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction
Documents. The Company shall pay all stamp and other similar taxes and duties levied in connection with the sale of the Units. 
 6.2
Entire Agreement. The Transaction Documents, together with the Exhibits, Schedules and the Disclosure Letter thereto, 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, exhibits and schedules. 
  

 23 

 6.3 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 (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified in this Section prior to 6:30 p.m. (New York City 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 6:30 p.m. (New York City 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 for such notices and communications shall be as follows: 
  

			
	 If to the Company:
	  	 Brooke Corporation
 10950 Grandview Drive

Suite 600
 Overland Park, KS 66210
 Facsimile: 913-451-3183
 Attn: Anita Larson

		
	If to an Investor:	  	To the address set forth under such Investor’s name on the signature pages hereof;

 or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

6.4 Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written instrument
signed by the Company and the Investors holding a majority of the Securities. 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. No consideration shall
be offered or paid to any Investor to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to all Investors who then hold the Securities. No such amendment shall be
effective to the extent that it applies to less than all of the Investors of the Securities then outstanding and no amendment to the Securities that has a disproportionate negative impact on any Investor as compared to the other Investors may be
made without the approval of such negatively affected Investor. 
 6.5 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. 

  

 24 

 
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. 
 6.6 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investors. Any Investor may assign any or all of its
rights under this Agreement to any Person to whom such Investor assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the
“Investors.” 
 6.7 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, except as otherwise set forth in Section 4.5 (as to each Investor Party). 
 6.8 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 New York, without regard to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) may be commenced in the New York Courts. Each party hereto hereby irrevocably
submits to the non-exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of
the any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced
in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. 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 out-of-pocket attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 
  

 25 

 6.9 Survival. The representations, warranties, agreements and covenants contained herein shall
survive the Closing and the delivery of the Securities. 
 6.10 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. 
 6.11 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. 
 6.12 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Investor exercises a right,
election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Investor may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights. 
 6.13 Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The
applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities. If a replacement certificate or instrument evidencing any Securities
is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement. 
 6.14 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the
parties hereto 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 the defense that a remedy at law would be adequate. 
 6.15 Payment Set Aside. To the extent that the Company makes a payment or payments to any Investor pursuant to any Transaction Document or an Investor enforces or exercises its rights thereunder, and such
payment or payments or the proceeds of such 

  

 26 

 
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by
or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not
occurred. 
 6.16 Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction
Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Transaction Document. The decision of each Investor
to purchase Securities pursuant to the Transaction Documents has been made by such Investor independently of any other Investor. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be
deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such
Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that each of the Investors
has been provided with the same Transaction Documents for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGES FOLLOW] 
  

 27 

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Brooke Corporation
		
	By:	 	/s/ Anita F. Larson
	Name:	 	Anita F. Larson
	Title:	 	President & COO

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGES FOR INVESTORS FOLLOW] 

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	LB I GROUP INC.
	
	/s/ Eric Salzman
	By:	 	Name: Eric Salzman
		 	Title: Managing Director
	
	Investment Amount: $2,970,000
	
	Tax ID No.: 13-274-1778
	
	Residency of Investor: DELAWARE
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Steelhead Investments Ltd.
	By: HBK Services LLC, Investment Advisor
	
	/s/ J. Baker Gentry, Jr.
	By:	 	Name: J. Baker Gentry, Jr.
		 	Title: Authorized Signatory
	
	Investment Amount: $2,700,000 (200,000 shares)
	
	Tax ID No.: 98-0215933
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Berlin Income, L.P.
	By: Berlin Financial, Ltd., Its Investment Advisor
	
	/s/ Thomas G. Berlin
	By:	 	Name: Thomas G. Berlin
		 	Title: Managing Member
	
	Investment Amount: $135,000.00
	
	Tax ID No.: 20-2572320
	
	Residency of Investor: OHIO
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Berlin Capital Growth, L.P.
	By: Berlin Financial, Ltd., Its. Investment Advisor
	
	/s/ Thomas G. Berlin
	By:	 	Name: Thomas G. Berlin
		 	Title: Managing Member
	
	Investment Amount: $202,500.00
	
	Tax ID No.: 34-1872691
	
	Residency of Investor: OHIO
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	J. George Investments LLC
	By: Berlin Financial, Ltd., Its. Investment Advisor
	
	/s/ Thomas G. Berlin
	By:	 	Name: Thomas G. Berlin
		 	Title: Managing Member
	
	Investment Amount: $202,500.00
	
	Tax ID No.: 38-3435546
	
	Residency of Investor: MI
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Fort Mason Partners, LP
	
	/s/ Dan German
	By:	 	Name: Dan German
		 	Title: Managing Member, Fort Mason Capital, LLC
	
	Investment Amount: $119,205.00
	
	Tax ID No.: 20-2009438
	
	Residency of Investor: California
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Fort Mason Master, LP
	
	/s/ Dan German
	By:	 	Name: Dan German
		 	Title: Managing Member, Fort Mason Capital, LLC
	
	Investment Amount: $1,838,295.00
	
	Tax ID No.: 98-0442713
	
	Residency of Investor: Cayman Islands
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Wedge Equities, L.P.
	
	/s/ Nijad I. Fares
	By:	 	Name: Nijad I. Fares
		 	Title: President of Wedge Equities, L.L.C.
		 	General Partner of Wedge Equities, L.P.
	
	Investment Amount: $3,982,500
	
	Tax ID No.: 51-0381829
	
	Residency of Investor: Texas
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first
written above. 
  

			
	Jayhawk Institutional Partners, L.P.
	
	/s/ Michael D. Schmitz
	By:	 	Name: Michael D. Schmitz
		 	Title: CFO of GP
	
	Investment Amount: $8,100,000
	
	Tax ID No.: 48-117-2611
	
	Residency of Investor: Delaware
	
	ADDRESS FOR NOTICE
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________
	
	Fax:________________________________________
	
	DELIVERY INSTRUCTIONS
	(if different from above)
	
	c/o:________________________________________
	
	Street:______________________________________
	
	City/State/Zip:_______________________________
	
	Attention:___________________________________
	
	Tel:________________________________________

 Exhibit A 
 FORM OF WARRANT 

 Exhibit B 
 FORM OF REGISTRATION RIGHTS AGREEMENT 

 Exhibit C 
 WIRE INSTRUCTIONS 
 JP Morgan Chase 
 55 Water Street 
 New York, NY 10041 
 ABA# 021 000 021 
 Account # 323-838685 
 Account name:
American Stock Transfer & Trust Co as agent for Brooke Corp. 

 Exhibit D 
 Brooke Corporation 
 Confidential Investor Questionnaire 
 Before any sale of Shares or Warrants by Brooke Corporation can be made to you, this Questionnaire must be completed and returned to Oppenheimer & Co. Inc.
Attn: Investment Banking Department, 125 Broad St., New York, NY 10004, FAX: 212-425-2028 
 1. IF YOU ARE AN INDIVIDUAL PLEASE FILL IN THE
IDENTIFICATION QUESTIONS IN (A) IF YOU ARE AN ENTITY PLEASE FILL IN THE IDENTIFICATION QUESTIONS IN (B) 
  

	 	A.	INDIVIDUAL IDENTIFICATION QUESTIONS 

 Name
                                        
                                        
                                       
 
 (Exact name as it should appear on stock certificate) 
 Residence Address
                                        
                                        
                    
 Home Telephone
Number
                                        
                                        
        
 Fax Number
                                        
                                        
                              
 Date of Birth
                                        
                                        
                            
 Social Security Number
                                        
                                        
          
  

	 	B.	IDENTIFICATION QUESTIONS FOR ENTITIES 

 Name
                                        
                                        
                                       
 
 (Exact name as it will appear on stock certificate) 
 Address of Principal Place of Business __________________________________
 State (or Country) of Formation or
Incorporation __________________________
 Contact Person _____________________________________________________ 
 Telephone Number (____)_____________________________________________ 
 Type of Entity 
   (corporation, partnership, trust, etc.) ____________________________________

 Was entity formed for the purpose of this investment? 
 Yes  ̈    No  ̈ 
 2. DESCRIPTION OF INVESTOR 
 The following information is required to ascertain whether you would be deemed an “accredited investor” as defined in Rule 501 of Regulation D
under the Securities Act. Please check whether you are any of the following: 
  

	 	 ̈	a corporation or partnership with total assets in excess of $5,000,000, not organized for the purpose of this particular investment 

	 	 ̈	private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, a U.S. venture capital fund which invests primarily through
private placements in non-publicly traded securities and makes available (either directly or through co-investors) to the portfolio companies significant guidance concerning management, operations or business objectives 

  

	 	 ̈	a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958

  

	 	 ̈	an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act 

 

	 	 ̈	a trust not organized to make this particular investment, with total assets in excess of $5,000,000 whose purchase is directed by a sophisticated person as described in
Rule 506(b)(2)(ii) of the Securities Act of 1933 and who completed item 4 below of this questionnaire 

  

	 	 ̈	a bank as defined in Section 3(a)(2) or a savings and loan association or other institution defined in Section 3(a)(5)(A) of the Securities Act of 1933 acting in either an
individual or fiduciary capacity 

  

	 	 ̈	an insurance company as defined in Section 2(13) of the Securities Act of 1933 

  

	 	 ̈	an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 (i) whose investment decision is made by a fiduciary which is
either a bank, savings and loan association, insurance company, or registered investment advisor, or (ii) whose total assets exceed $5,000,000, or (iii) if a self-directed plan, whose investment decisions are made solely by a person
who is an accredited investor and who completed Part I of this questionnaire; 

  

	 	 ̈	a charitable, religious, educational or other organization described in Section 501(c)(3) of the Internal Revenue Code, not formed for the purpose of this investment, with
total assets in excess of $5,000,000 

  

	 	 ̈	an entity not located in the U.S. none of whose equity owners are U.S. citizens or U.S. residents 

  

	 	 ̈	a broker or dealer registered under Section 15 of the Securities Exchange Act of 1934 

  

	 	 ̈	a plan having assets exceeding $5,000,000 established and maintained by a government agency for its employees 

  

	 	 ̈	an individual who had individual income from all sources during each of the last two years in excess of $200,000 or the joint income of you and your spouse (if married) from
all sources during each of such years in excess of $300,000 and who reasonably excepts that either your own income from all sources during the current year will exceed $200,000 or the joint income of you and your spouse (if married)
from all sources during the current year will exceed $300,000 

	 	 ̈	an individual whose net worth as of the date you purchase the securities offered, together with the net worth of your spouse, be in excess of $1,000,000 

  

	 	 ̈	an entity in which all of the equity owners are accredited investors 

  

	3.	BUSINESS, INVESTMENT AND EDUCATIONAL EXPERIENCE (with respect to individuals) 

 Occupation _______________________________________________________
 Number of Years ___________________________________________________
 Present Employer
__________________________________________________
 Position/Title _____________________________________________________
 Educational Background ____________________________________________ 
 Frequency of prior investment (check one in each column): 
  

					
	 	  	Stocks & Bonds	  	Venture Capital
Investments
	 Frequently
	  		  	
	 Occasionally
	  		  	
	 Never
	  		  	

  

	4.	SIGNATURE 

 The above information is true and
correct. The undersigned recognizes that the Company and its counsel are relying on the truth and accuracy of such information in reliance on the exemption contained in Subsection 4(2) of the Securities Act of 1933, as amended, and
Regulation D promulgated thereunder. The undersigned agrees to notify the Company promptly of any changes in the foregoing information, which may occur prior to the investment. 
 Executed at                     , on             ,
2007 
  

	
	
	   
	(Signature)

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

  

			
	Warrant No. [    ]	 	Date of Original Issuance: ______

 Brooke Corporation, a Kansas corporation (the “Company”), hereby certifies
that, for value received,                      or its registered assigns (the “Holder”), is entitled to purchase from the
Company up to a total of [    ] shares of common stock, $0.01 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the
“Warrant Shares”) at an exercise price equal to $16.20 per share (as adjusted from time to time as provided in Section 9, the “Exercise Price”), at any time and from time to time through and including
the earlier to occur of (a) the Call Event Expiration Date (as defined below) and (b) June 28, 2012 (the earlier to occur of (a) and (b), the “Expiration Date”), and subject to the following terms and conditions:

 1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein
shall have the meanings given to such terms in the Securities Purchase Agreement dated as of June 28, 2007 by and among the Company and the investors thereto (the “Securities Purchase Agreement”). 
 2. Registration of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the
“Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

 3. Registration of Transfers. The Company shall register the transfer of any portion of this
Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a
holder of a Warrant. 
 4. Exercise and Duration of Warrants. 
 (a) This Warrant shall be exercisable by the registered Holder at any time and from time to time up to the Expiration Date. At 5:30 p.m.,
New York City time on the Expiration Date, the portion of this Warrant not exercised (or called) prior thereto shall be and become void and of no value. 
 (b) If at any time after one year from the Closing there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

  

	 	(A) =	the VWAP (as defined in Section 13) on the Trading Day immediately preceding the date of such election; 

  

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

  

	 	(X) =	the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

 5. Delivery of Warrant Shares; Disposition of Warrants and Warrant Shares. 
 (a) To affect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant
Shares represented by this Warrant is being exercised. Upon delivery of the attached Exercise Notice to the Company (with the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price
multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder, the Company shall issue and deliver to the Holder within 3 Trading Days (the “Warrant Share Delivery Date”), a certificate for the Warrant
Shares issuable upon such exercise. The Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities and Exchange
Commission, use commercially reasonable efforts to deliver Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions, if 

  

 2 

 
available, provided, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot deliver Warrant Shares
electronically through the Depository Trust Corporation. A “Date of Exercise” means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the Warrant Exercise Log attached to it),
appropriately completed and duly signed and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased. 
 (b) The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. 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 the Warrant as
required pursuant to the terms hereof. 
 (c) If the Company fails to cause its transfer agent to transmit to the Holder a
certificate or certificates representing the Warrant Shares pursuant to Section 5(a) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 
 (d) 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 Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if on or after such date the Holder purchases (in an open market transaction or otherwise) shares of Common Stock
to deliver in satisfaction of a sale by the Holder of such Securities that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after such Warrant Share Delivery
Date, and at the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock
so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such Securities shall terminate, or (ii) promptly honor its obligation to deliver to the Holder such Securities as provided above and
pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price of the Common Stock on the date of exercise.

 (e) The Warrant and Warrant Shares (collectively, the “Securities”) may only be disposed of in compliance
with state and federal securities laws. In connection with any transfer of the Securities other than pursuant to an effective registration statement, to the Company, to an affiliate of a Holder or in connection with a pledge as contemplated below,
the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company and of no cost to the Company, to the
effect that such transfer does not require registration of such transferred Securities under the Securities Act of 1933, as amended (the “Securities Act”). 
  

 3 

 (f) The Warrant shall contain the legend set forth above and the stock certificates
evidencing the Warrant Shares will contain the following legend, until such time as they are not required under the conditions described below: 
 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 
 (g) The Company acknowledges and agrees that a Holder may from time to time pledge, and/or grant a security interest in some or all of the
Securities in accordance with all applicable federal and state securities laws pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under the terms of such agreement or account, such Holder may
transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer 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 may be required in connection with a subsequent transfer by the pledgee or secured party following default by the Investor or otherwise. No notice shall be required of such pledge. At
the appropriate Holder’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities including the
preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. 
 (h) Certificates evidencing the Warrant Shares shall not contain any legend at such time as a Holder has provided evidence to the Company
(including any customary broker’s or selling stockholder’s letters) that: (i) there has been a sale of such Warrant Shares pursuant to an effective registration statement, (ii) there has been a sale of such Warrant Shares
pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), or (iii) such Warrant Shares are then eligible for sale under Rule 144(k). Following such time as restrictive legends are not required to be placed on
certificates representing Warrant Shares pursuant to the preceding sentence, the Company will, promptly following the delivery by a Holder to the Company or the Company’s transfer agent of a certificate representing Warrant Shares containing a
restrictive legend and the foregoing evidence, deliver or cause to be delivered to such Holder a certificate representing such Warrant Shares that is free from all restrictive and other legends. The Company may not make any notation on its records
or give instructions to 

  

 4 

 
any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section, except as it may reasonably determine are necessary or
appropriate to comply or to ensure compliance with those applicable laws that are enacted or modified after the date of initial issuance of this Warrant. 
 6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer
agent fee or other similar incidental tax or expense in respect of the issuance of such certificates, all of which such taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result
of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof. 
 7. Replacement of Warrant. If this
Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such
mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant. 
 8. Reservation of
Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares
upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other
than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in
accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. 
 9. Certain Adjustments.
The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9. 
 (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on
its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding
shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of 

  

 5 

 
shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the
period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event. 
 (b) Subsequent Rights Offerings. If the Company, at any time while the Warrant is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to Holders) entitling them to
subscribe for or purchase shares of Common Stock at a price per share less than the VWAP at the record date mentioned below, then the Exercise Price shall be multiplied by a fraction, of which the denominator shall be the number of shares of the
Common Stock outstanding on the date of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and of which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise
of such rights, options or warrants) would purchase at such VWAP. Such adjustment shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled
to receive such rights, options or warrants. However, such adjustment shall not result in an increase of the Exercise Price. 
 (c) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to Holders of the Warrants) evidences of its indebtedness or assets (including cash
and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 9(e)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of
which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock
as determined by the board of directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights
applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. However, such adjustment shall not result in an increase of
the Exercise Price. 
 (d) Fundamental Transactions. If, at any time while this Warrant is outstanding, (1) the
Company effects any merger or consolidation of the Company with or into another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange
offer (whether by the Company or 

  

 6 

 
another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or
property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such
case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon
the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate
Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one
share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental Transaction. Any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form of this Warrant and consistent with
the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. 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 paragraph (b) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction. 
 (e) Adjustment upon Issuance of shares of Common Stock. If and whenever on
or after the Subscription Date, the Company issues or sells, or in accordance with this Section 9 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or
for the account of the Company, but excluding shares of Common Stock deemed to have been issued by the Company in connection with any Excluded Securities) for a consideration per share (the “New Issuance Price “) less than the
Exercise Price (the “Applicable Price “) in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a “Dilutive Issuance “), then immediately after such Dilutive Issuance, the
Exercise Price then in effect shall be adjusted in accordance with the following formula: 
 CP2 = CP1 * (A+B) / (A+C), where: 
 CP2 = Adjusted Exercise Price 
 CP1 = Exercise Price in effect immediately prior to new issue 
 A = Number of shares of Common Stock deemed to be outstanding immediately prior to new issue (includes all shares of outstanding common stock, all shares of outstanding preferred stock on an as-converted basis, and all outstanding options
on an as-exercised basis) 
  

 7 

 B = Aggregate consideration received by the Company with respect
to the new issue divided by CP1 
 C = Number of shares of stock issued in the subject transaction. 
 For purposes of determining the adjusted Exercise Price
under this Section 9(e), the following shall be applicable: 
 (i) Issuance of Options. If the Company in any
manner grants or sells any Options and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of
any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For
purposes of this Section 9(e)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon
exercise of any such Option” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of
the Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares
of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities. 
 (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest
price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold
by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 9(e)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the
conversion, exercise or exchange thereof” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible
Security and upon conversion, exercise or exchange of such Convertible Security. Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of
this Section 9(e), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of such issue or sale. 
 (iii) Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange
of any Convertible Securities, or the rate at which any 

  

 8 

 
Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the Exercise Price
in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional
consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 9(e)(iii), if the terms of any Option or Convertible Security that was outstanding as of
the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or
exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 9(e) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

 (iv) Calculation of Consideration Received. In case any Option is issued in connection with the issue or sale of
other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of $0.01. If
any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company therefor. If any shares
of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration
consists of securities, in which case the amount of consideration received by the Company for each such security will be the VWAP of such security for the five (5) Trading Day Period immediately preceding the date of receipt. If any shares of
Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value
of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or securities
will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such
consideration will be determined within five (5) Trading Days after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such
appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company. 
 (v) Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock,
Options or in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to
have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be). 
  

 9 

 (f) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise
Price pursuant to paragraph (a) of this Section, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price
payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment. 
 (g) Calculations. All calculations under this Section 9 shall be
made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock
outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock. 
 (h) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its
expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or
other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly
deliver a copy of each such certificate to the Holder and to the Company’s transfer agent. 
 (i) Notice of Corporate
Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any
capital stock of the Company or any Subsidiary that is not publicly announced, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least 10 calendar days prior to the applicable
record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the
practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the
corporate action required to be described in such notice. 
 10. Payment of Exercise Price. The Holder shall pay the Exercise Price by
delivery to the Company of immediately available funds. 
 11. No Rights as Stockholder. Until the exercise of this Warrant, the
Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company. 
 12. Call Event. At any point
beginning two years from the date hereof after which the VWAP of the Common Stock over any 20 consecutive trading day period shall have been equal to at least 150% of the Exercise Price and if all of the Equity Conditions have been met (a
“Call Event”), the Company may provide written notice of such Call Event to the Holder, in which 

  

 10 

 
case, the “Call Event Expiration Date” shall mean the date that is ten business days’ after the Company has provided written notice to
the Holder of a Call Event. For purposes hereof, the term “VWAP” shall mean on any particular trading day or for any particular period, the volume weighted average trading price per share of Common Stock on such date or for such
period, as determined by the Company after review of the volume information and sale price information reported by Bloomberg L.P. or any successor performing similar functions. For the avoidance of doubt, at 5:30 p.m., New York City time on the Call
Event Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value. For purposes hereof, the term “Equity Conditions” shall mean: (i) the Registration Statement filed
pursuant to the Registration Rights Agreement shall be effective and available for the resale of all Registrable Securities in accordance with the terms of the Registration Rights Agreement; (ii) the Common Stock is designated for quotation on
a Trading Market and shall not have been suspended from trading on such exchange of market (other than suspensions of not more than two (2) days occurring due to business announcements by the Company) nor shall proceedings for such delisting or
suspension by such exchange or market have been commenced, threatened or pending; (iii) the Company shall not have failed to timely make any payments within five (5) business days of when such payment is due pursuant to any Transaction
Document; (iv) the Company shall have no knowledge of any fact that would cause the Registration Statements required pursuant to the Registration Rights Agreement not to be effective and available for the resale of at least all of the
Registrable Securities or that would cause any shares of Common Stock issuable upon exercise of this Warrant not to be eligible for sale without restriction pursuant to Rule 144(k) and any applicable state securities laws; and (v) the Company
otherwise shall have been in material compliance with and shall not have materially breached any provision, covenant, representation or warranty of any Transaction Document. 
 13. No Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any
fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the Market Price of one Warrant Share on the date of exercise. “Market Price” as of a particular
date (the “Valuation Date”) shall mean the following: (a) if the Common Stock is then listed on a U.S. national stock exchange, the closing sale price of one share of Common Stock on such exchange on the last trading day prior
to the Valuation Date; (b) if the Common Stock is then quoted on the National Association of Securities Dealers, Inc. OTC Bulletin Board (the “Bulletin Board”) or such similar quotation system or association (such as Pink
Sheets LLC), the closing sale price of one share of Common Stock on the Bulletin Board or such other quotation system or association on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of
the high bid and the low asked price quoted thereon on the last trading day prior to the Valuation Date; or (c) if the Common Stock are not then listed on a national stock exchange or quoted on the Bulletin Board or such other quotation system
or association, the fair market value of one share of Common Stock as of the Valuation Date, as determined in good faith by the board of directors of the Company. 
 14. Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest
of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the
date of 

  

 11 

 
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 5:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given. The addresses for such communications shall be: (i) if to the Company, to Brooke Corporation, 10950 Grandview Drive, Suite 600, Overland Park, KS 66210, Facsimile: 913-451-3183, Attention: Anita Larson, or such other
address as the Company shall so notify the Holder, or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in accordance
with this Section. 
 15. Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 10 days’ notice to the
Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or
any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor
warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register. 
 16. Representations of Holder. By acceptance hereof, the Holder hereby represents and warrants to the Company as follows: 
 (a) The Holder is an “accredited investor” as defined in Rule 501(a) under the Securities Act. 
 (b) The Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act on the basis that no
distribution or public offering of the stock of the Company is to be effected. 
 17. Miscellaneous. 
 (a) This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing
signed by the Company and the Holder and their successors and assigns. 
 (b) All questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and the transactions herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective Affiliates,
employees or agents) may be commenced non-exclusively in the state and federal courts sitting in the State 

  

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of New York (the “New York Courts”). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the New York Courts
for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally
subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any
such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under 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 manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this
Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 
 (c) The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof. 
 (d) In case any one or more of the provisions of this Warrant shall be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision
which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant. 
 [SIGNATURE PAGE FOLLOWS] 
  

 13 

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

			
	BROOKE CORPORATION
		
	By:	 	  
	Name:	 	
	Title:	 	

  

 14 

 BROOKE CORPORATION 
 WARRANT ORIGINALLY ISSUED [            ] 
 WARRANT NO. [     ] 
 EXERCISE NOTICE 
 TO BROOKE CORPORATION: 
 The undersigned hereby elects to purchase
             Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any. 
 Payment shall take the form of (check applicable box): 
 [   ] in lawful money of the United States; or 
 [ ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 4(b), to exercise this Warrant with respect to the maximum number of Warrant
Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 4(b). 
 By its delivery of this Exercise Notice, the
undersigned represents and warrants to the Company that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution
thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters
that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned is an “accredited investor” as defined in Regulation D under the
Securities Act of 1933, as amended (the “Securities Act”); and (v) the undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant have not been registered under the Securities Act, by reason
of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been
registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common
Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144; and (vi) the undersigned agrees not to
make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance
with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required. 

 Please issue a certificate or certificates representing said Warrant Shares in the name of the
undersigned or in such other name as is specified below: 

			
		
	 	 	   

 The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery
of a certificate to: 
  

			
		
	 	 	   
		
	 	 	   
		
	 	 	   

 [SIGNATURE OF HOLDER] 
 Name of Investing Entity: 

			
		
	 	 	   

 Signature of Authorized Signatory of Investing Entity: 

			
		
	 	 	   

 Name of Authorized Signatory: 

			
		
	 	 	   

 Title of Authorized Signatory: 

			
		
	 	 	   

 Date: 

			
		
	 	 	   

 Warrant Shares Exercise Log 
  

							
	 Date
	  	 Number of Warrant Shares
 Available to be Exercised
	  	 Number of Warrant
 Shares Exercised
	  	Number of Warrant Shares
Remaining to be Exercised
		  		  		  	

 BROOKE CORPORATION 
 WARRANT ORIGINALLY ISSUED [            ] 
 WARRANT NO. [     ] 
 FORM OF ASSIGNMENT 
 [To be completed and signed only upon transfer of Warrant] 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                         the right represented by the above-captioned Warrant to purchase
                 shares of Common Stock to which such Warrant relates and appoints
                 attorney to transfer said right on the books of the Company with full power of substitution in the premises. 
 Dated:                 ,      
  

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

 In the presence of: 

	
	
	   

 Exhibit B 
 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this
“Agreement”) is made and entered into as of June 28, 2007, by and among Brooke Corporation, a Kansas corporation (the “Company”), and the investors signatory hereto (each a “Investor”
and collectively, the “Investors”). 
 This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the
date hereof among the Company and the Investors (the “Purchase Agreement”). 
 In consideration of the mutual covenants
contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledge, the Company and the Investors hereby agree as follows, with the intent to be legally bound hereby: 
 1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the respective meanings set forth in this Section 1: 
 “Common Stock” means the Common Stock, par value $0.01 per share, of the Company. 
 “Effective Date” means the date that the Registration Statement filed pursuant to Section 2(a), 2(b) or 2(c) of this Agreement is first declared effective by the Commission. 
 “Effectiveness Date” means: (a) with respect to the initial Registration Statement required to be filed to cover the
resale by the Holders of the Registrable Securities the 120th day following the Pricing Date, and (b) with respect to any additional Registration Statements that may be required pursuant to Section 2(b) or 2(c) hereof, the 120th day
following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required under such Section. 
 “Effectiveness Period” shall have the meaning set forth in Section 2(a). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Filing Date” means, with respect to the initial Registration Statement required to be filed to cover the resale by the
Holders of the Registrable Securities, within 30 days following the Pricing Date. 
 “Holder” or
“Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities. 
 “Indemnified Party” shall have the meaning set forth in Section 5(c). 
 “Indemnifying
Party” shall have the meaning set forth in Section 5(c). 

 “Losses” shall have the meaning set forth in Section 5(a).

 “Pricing Date” means the date of this Agreement. 
 “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. 
 “Prospectus” means the
prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
 “Registrable Securities” means (i) the Shares, (ii) the Warrant Shares and (iii) any additional securities
issued in connection with a stock dividend or stock split or other distribution or in connection with any recapitalization, merger, consolidation or reorganization of the securities referenced in (i) or (ii) above. 
 “Registration Statement” means the initial registration statement required to be filed in accordance with
Section 2(a) and any additional registration statement(s) required to be filed under Section 2(b), 2(c) or 2(e), including (in each case) the Prospectus, amendments and supplements to such registration statements or Prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statements. 
 “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. 
 “Rule 415” means Rule 415 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. 
 “Rule 424” means Rule 424 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. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Shares” means the shares of Common Stock issued or issuable to the Investors by the Company pursuant to the Purchase
Agreement. 
 “Warrants” means the Common Stock purchase warrants issued or issuable to the Investors
pursuant to the Purchase Agreement and to any placement agent identified in Schedule 3.1 (u) to the Purchase Agreement in accordance with the terms of the engagement letter or similar agreements between the Company and any such agents.

  

 -2- 

 “Warrant Shares” means the shares of Common Stock issued or issuable
upon exercise of the Warrants. 
 2. Registration. 
 (a) On or prior to the Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of
all Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except if the Company is not
then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form for such purpose). The Registration Statement shall contain (except if otherwise required pursuant
to written comments received from the Commission upon a review of such Registration Statement) the “Plan of Distribution” attached hereto as Annex A. The Company shall use its reasonable best efforts to cause the Registration Statement to
be declared effective under the Securities Act as soon as practicable but, in any event, no later than the Effectiveness Date, and shall use its reasonable best efforts to keep the Registration Statement effective under the Securities Act until the
earlier of (i) the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement without restriction pursuant to Rule 144(k) (or any successor thereto) promulgated under the Securities Act or
(ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement (the “Effectiveness Period”). 
 (b) If for any reason the Commission does not permit all of the Registrable Securities to be included in the Registration Statement filed
pursuant to Section 2(a), or for any other reason any Registrable Securities are not permitted by the Commission to be included in a Registration Statement filed under this Agreement, then the Company shall prepare and file as soon as possible
after the date on which the Commission shall indicate as being the first date or time that such filing may be made, an additional Registration Statement covering the resale of all Registrable Securities not already covered by an existing and
effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415, on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such
registration shall be on another appropriate form for such purpose). Each such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement)
the “Plan of Distribution” attached hereto as Annex A. The Company shall use its reasonable best efforts to cause each such Registration Statement to be declared effective under the Securities Act as soon as possible but, in any event, no
later than its Effectiveness Date, and shall use its reasonable best efforts to keep such Registration Statement effective under the Securities Act during the entire Effectiveness Period. 
 (c) If at any time during the Effectiveness Period, less than 95% of the then Registrable Securities are then registered in a Registration
Statement(s), then the Company shall file as soon as reasonably practicable, but in any case prior to the applicable Filing Date subject to any restrictions imposed by Rule 415, an additional Registration Statement covering the resale by the Holders
of not less than 100% of the number of then Registrable Securities. 
  

 -3- 

 (d) If: (i) a Registration Statement is not filed on or prior to its Filing Date,
(ii) the Registration Statement is not declared effective by the Commission within five business days of the date upon which the Commission or its staff notifies the Company or its counsel that the Commission has no further comments on, or will
not review, the Registration Statement; (iii) a Registration Statement is not declared effective by the Commission on or prior to its required Effectiveness Date, or (iv) after its Effective Date, (A) as a result of the occurrence of
a Company Event (as defined below), such Registration Statement ceases to be effective and available to the Holders as to all Registrable Securities to which it is required to cover at any time prior to the expiration of its Effectiveness Period for
up to no more than 7 consecutive Trading Days (or 20 Trading Days in any 12 month period in the aggregate) or (B) such Registration Statement ceases to be effective and available to the Holders as to all Registrable Securities to which it is
required to cover at any time prior to the expiration of its Effectiveness Period for any reason other than a Company Event (as defined below) for up to no more than 7 consecutive Trading Days (or 20 Trading Days in any 12 month period in the
aggregate) (any such failure or breach being referred to as an “Event,” and for purposes of clauses (i) or (ii), or the date on which such Event occurs, or for purposes of clause (iii)(B) the date on which such 3 consecutive
Trading Day-period or 15 Trading Day-period, as applicable, is exceeded, or for purposes of clause (iii)(A) the date on which such 20 consecutive Trading Day-period or 20 Trading Day-period, as applicable, is exceeded, being referred to as
“Event Date”), then, in addition to any other rights available to the Holders under this Agreement or under applicable law: (x) on each such Event Date the Company shall pay to each Holder an amount in cash, as liquidated
damages and not as a penalty, equal to 1.0% of the aggregate Purchase Price of such Holder pursuant to the Purchase Agreement; and (y) on each 30-day anniversary of each such Event Date thereof (if the applicable Event shall not have been cured
by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty, equal to 1.0% of the aggregate Purchase Price paid by such Holder pursuant to the Purchase
Agreement. The liquidated damages pursuant to the terms hereof shall apply on a pro rata basis for any portion of a month prior to the cure of an Event. “Company Event” as used herein means the existence of
material non-public information regarding the Company which the Board of Directors of the Company reasonably determines not to be in the best interests of the Company to disclose, including a significant business opportunity (including, but limited
to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or similar transaction) available to the Company, but which would be required to be disclosed in a Registration
Statement. The payments to which a Holder shall be entitled pursuant to this Section 2(d) are referred to herein as “Registration Delay Payments.” In the event the Company fails to make Registration Delay Payments
in a timely manner, such Registration Delay Payments shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full. Notwithstanding anything herein or in the Securities Purchase
Agreement to the contrary, (i) no Registration Delay Payments shall be due and payable with respect to the Warrants or the Warrant Shares and (ii) in no event shall the aggregate amount of Registration Delay Payments (other than
Registration Delay Payments payable pursuant to events that are within the control of the Company) exceed, in the aggregate, 10% of the aggregate Purchase Price. 
  

 -4- 

 (e) Each time within three years of the date hereof the Company proposes to file a
Registration Statement under the Securities Act with respect to an offering by the Company for its own account or for the account of any of its securityholders of any class of equity security (except, (i) a Registration Statement on Form S 4 or
S 8 (or any substitute form that is adopted by the Commission), (ii) a Registration Statement filed in connection with a dividend reinvestment plan, stock option plan or unit investment trusts, or (iii) a Registration Statement filed in
connection with an exchange offer or offering of securities solely to the Company’s existing securityholders), and the form of Registration Statement to be used permits the registration of Registrable Securities, then the Company shall give
written notice of such proposed filing to the Holders as soon as reasonably practicable (but in no event less than 20 days before the anticipated filing date and no less than 30 days before the anticipated effective date), and such notice shall
offer the Holders the opportunity to register up to 25% of such Registrable Securities held by the Holder as the Holders may request (which request shall specify the Registrable Securities intended to be disposed of by the Holders and the intended
method of distribution thereof) up to 20 days before the anticipated effective date (a “Piggy Back Registration”). The Company shall cause the managing underwriter or underwriters of a proposed underwritten offering to permit the
Registrable Securities requested to be included in a Piggy Back Registration to be included on substantially the same terms and conditions as any similar securities of the Company or any other securityholder included therein and to permit the sale
or other disposition of such Registrable Securities in accordance with the intended method of distribution thereof. The selling commissions with respect to any Holder included in the Piggy Back Registration shall be paid by such Holder. Any Holder
shall have the right to withdraw such Holder’s request for inclusion of its Registrable Securities in any Registration Statement pursuant to this clause (f) by giving written notice to the Company of such withdrawal no later than two
Business Days prior to the anticipated effective date. The Company may withdraw a Piggy Back Registration at any time prior to the time it becomes effective, provided that the Company shall give prompt notice of such withdrawal to the other Holders,
if any, requested to be included in such Piggy Back Registration. 
 1. Reduction of Offering. If the managing underwriter or
underwriters of an underwritten offering with respect to which Piggy Back Registration has been requested as provided in Section 2(f) hereof shall have informed the Company, in writing, that in the opinion of such underwriter or underwriters
the total number of shares which the Company, the Holders and any other Persons participating in such registration intend to include in such offering is such as to materially and adversely affect the success of such offering (including without
limitation any material decrease in the proposed public offering price), then the number of shares to be offered for the account of all Persons and Holders (other than the Company) participating in such registration shall be reduced or limited (to
zero if necessary) pro rata in proportion to the respective number of shares requested to be registered by such Persons to the extent necessary to reduce the total number of shares requested to be included in such offering to the number of shares,
if any, recommended by such managing underwriter or underwriters. 
  

 -5- 

 2. Underwriting. In the case of a Piggy-Back Registration, if the Company has determined to enter
into an underwriting agreement in connection therewith, all Registrable Securities to be included in such Registration Statement shall be subject to such underwriting agreement, and no Holder may participate in such Registration unless such Holder
agrees to sell its Registrable Securities on the basis provided for in such underwriting arrangements approved by the Company and completes and/or executes all reasonable and customary questionnaires, powers of attorney, indemnities, underwriting
agreements and other reasonable documents which must be executed under the terms of such underwriting arrangements. 
 3. Registration
Procedures 
 In connection with the Company’s registration obligations hereunder, the Company shall: 
 (a) Not less than four Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or
supplement thereto, the Company shall furnish to the Holders (provided that with respect to Holders that are transferees of Investors or other Holders, the following will only be furnished, and any other notification requirements required to be made
to the Company to such transferees under this Section 3 will only be made, to such transferees to the extent that such transferees have provided the Company with the address, e-mail address and facsimile number of such transferees) copies of
the “Selling Stockholders” section of such document, the “Plan of Distribution” and any risk factor contained in such document that addresses specifically this transaction or the Selling Stockholders (based upon the completed
Selling Stockholder Questionnaires, a form of which is attached hereto at Exhibit A, previously provided by the Investors hereto), as proposed to be filed which documents will be subject to the review of such Holders. The Company shall not
file a Registration Statement or any such Prospectus or any amendments or supplements thereto that does not contain the disclosure containing such Holder as a “Selling Stockholder” as provided to the Company by such Holder in connection
therewith, except with such revisions to such disclosure as the Company, after consultation with its counsel, deems reasonably necessary. 
 (b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such
Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the
Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 and Rule 172;
(iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete
copies of all correspondence from and to the Commission relating to such Registration Statement that pertain to the Holders as a Selling Stockholder or to the Plan of Distribution, but would not result in the disclosure to the Holders of material
and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable
Securities covered by each Registration Statement. 
  

 -6- 

 (c) Notify the Holders as promptly as reasonably possible and (if requested by any such
Person) confirm such notice in writing no later than four Trading Days following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed or is filed; (B) when
the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof
and all written responses thereto to each of the Holders that pertain to the Holders as a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and
(C) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements
to a Registration Statement or Prospectus or for additional information that pertains to the Holders as a Selling Stockholder or to the Plan of Distribution; (iii) of the issuance by the Commission of any stop order suspending the effectiveness
of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the
financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in
any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (d) Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 
 (e) Furnish to each Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all
exhibits to the extent requested by such Person (including those previously furnished) promptly after the filing of such documents with the Commission. 
 (f) Promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably
request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any
amendment or supplement thereto. 
  

 -7- 

 (g) Prior to any public offering of Registrable Securities, use its reasonable best
efforts to (i) register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of those specific jurisdictions within the United States which the Holders may reasonably request from time to time in writing to the Company, (ii) keep each such registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and (iii) do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements;
provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or subject the Company to any material tax in any such jurisdiction where it is not then so subject.

 (h) Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to the Registration Statements, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any such Holders may request. 
 (i) Upon the occurrence of any event
contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (j) Each Holder agrees to furnish to the Company a completed Selling Questionnaire in the form attached to this Agreement as Annex B (a
“Selling Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in a Registration Statement and shall not be required to pay any liquidated or other damages under
Section 2(c) hereof to such Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least five Trading Days prior to the Filing Date (subject to the requirements set forth in Section 3(a)). 

4. Registration Expenses. Except as provided in the Section 2(f), all fees and expenses incident to the performance of or compliance with
this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation,
(i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (B) in compliance
with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably
requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act
liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this 

  

 -8- 

 
Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions
contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required hereunder. 
 5. Indemnification. 
 (a) Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock),
investment advisors and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each Person who controls any such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, shareholders, partners, agents and employees (and any other Persons with a functionally equivalent role of a Person
holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration
Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, (2) any breach of any material term of this Agreement by the Company or
(3) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except
to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in
any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder
of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated by Section 6(d). The Company shall
notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. 
  

 -9- 

 (b) Indemnification by Holders. Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder’s failure to comply with
the prospectus delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising
solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form
of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the
amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 
 (c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from
whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and
only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the
Indemnifying Party. 
 An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the
Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including
any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying 

  

 -10- 

 
Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all
Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, which consent shall not be unreasonably withheld, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 
 All reasonable
out-of-pocket fees and expenses of the Indemnified Party (including reasonable out-of-pocket fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification
hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification
hereunder). 
 (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable out-of-pocket attorneys’ fees or
expenses or other reasonable out-of-pocket fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section
was available to such party in accordance with its terms. 
 The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 
  

 -11- 

 The indemnity and contribution agreements contained in this Section are in addition to
any liability that the Indemnifying Parties may have to the Indemnified Parties. 
 6. Miscellaneous 
 (a) Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company
and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate. 
 (b)
No Piggyback on Certain Registrations; Prohibition on Filing Other Registration Statements. Except as and to the extent specified in Schedule 6(b) hereto, neither the Company nor any of its security holders (other than the Holders in
such capacity pursuant hereto) may include securities of the Company in a Registration Statement required to be filed hereunder other than the Registrable Securities, and the Company shall not after the date hereof until the initial Effectiveness
Date enter into any agreement providing any such right to any of its security holders. The Company shall not file any other registration statements prior to the Effectiveness Date other than as contemplated herein, provided that this
Section 6(b) shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement or registration statements on Forms S-4 and S-8. 
 (c) Compliance. Each Holder covenants and agrees that it will comply with any prospectus delivery requirements of the Securities
Act as applicable to it and otherwise comply with all applicable securities laws in connection with sales of Registrable Securities pursuant to the Registration Statement. 
 (d) Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in clauses (ii) through (v) of Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement
until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be
resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders
to enforce the provisions of this paragraph. 
  

 -12- 

 (e) Amendments and Waivers. No provision of this Agreement may be waived or
amended except in a written instrument signed by the Company and the Holders of no less than a majority of the outstanding Registrable Securities. 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. 
 (f) Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing or via e-mail and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or e-mail at
the facsimile telephone number or e-mail address, as applicable, specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile or e-mail at the facsimile telephone number or e-mail address, as applicable, specified in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such date,
(iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and
communications shall be as follows: 
  

			
		
	If to the Company:	  	 Brooke Corporation
 10950 Grandview Drive

Suite 600
 Overland Park, KS 66210
 Facsimile: 913-451-3183
 Attn: Anita Larson

		
	If to an Investor:	  	To the address, e-mail address or facsimile number set forth under such Investor’s name on the signature pages hereof;
		
	If to any other Person who is then the registered Holder:	  	To the address, e-mail address or facsimile number of such Holder as it appears in the records of the Company;

 or such other address, e-mail address or facsimile number as may be designated hereafter, in the
same manner, by such Person. 
 (g) Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of each Holder. Each Holder may assign
their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement. 
  

 -13- 

 (h) Execution and Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. 
 (i) 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 New York, without regard to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) may be commenced non-exclusively in the state and federal courts sitting in State of New York,
(the “New York Courts”). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in
an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other party for
its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 
 (j) Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. 
 (k) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 (l) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
  

 -14- 

 (m) Independent Nature of Investors’ Obligations and Rights. The obligations
of each Investor hereunder is several and not joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor hereunder. The decision of each
Investor to acquire Registrable Securities pursuant to the Transaction Documents has been made independently of any other Investor. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any
Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert with respect
to such obligations or the transactions contemplated by this Agreement. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as
agent of such Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents. Each Investor shall be entitled to protect and enforce its rights, including without limitation the rights
arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any Proceeding for such purpose. 
  

 -15- 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	BROOKE CORPORATION
		
	By:    	 	  
	Name:	 	
	Title:	 	

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGES OF INVESTORS TO FOLLOW] 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	[INVESTOR]
		
	By:	 	  
		 	Name:
		 	Title:

  

			
	
		
	 Address for Notice:
	 	  
		
		 	  
		
		 	  

  

			
	
		
	Facsimile No.:	 	  
		
	*E-mail:	 	  
		
	Attn:	 	  

 By providing an e-mail address, the party listed above hereby consents to electronic delivery of the
documents and notices required to be delivered pursuant to this Agreement. 

 ANNEX A 
 Plan of Distribution 
 We are registering the shares offered by this prospectus on behalf of the
selling stockholders. The selling stockholders, which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests in shares of common stock received after the date of this
prospectus from a selling stockholder as a gift, pledge, partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common stock or interests in shares of common stock on
any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price,
at varying prices determined at the time of sale, or at negotiated prices. To the extent any of the selling stockholders gift, pledge or otherwise transfer the shares offered hereby, such transferees may offer and sell the shares from time to time
under this prospectus, provided that this prospectus has been amended under Rule 424(b)(3) or other applicable provision of the Securities Act to include the name of such transferee in the list of selling stockholders under this prospectus.

 The selling stockholders may use any one or more of the following methods when disposing of shares or interests therein: 
  

	 	•	 	 ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	 block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the
transaction; 

  

	 	•	 	 purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	 an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	 privately negotiated transactions; 

  

	 	•	 	 short sales; 

  

	 	•	 	 through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; 

  

	 	•	 	 broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	 a combination of any such methods of sale; and 

  

	 	•	 	 any other method permitted pursuant to applicable law. 

 The selling stockholders may, from time to time, pledge or grant a security interest in some or all of
the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from time to time, under this prospectus, or under an
amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this
prospectus. 
 In connection with the sale of our common stock or interests therein, the selling stockholders may enter into hedging
transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of our common stock short
and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). 
 The
aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and,
together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive any of the proceeds from this offering. Upon any exercise of the warrants
by payment of cash, however, we will receive the exercise price of the warrants. 
 The selling stockholders also may resell all or a portion
of the shares in open market transactions in reliance upon Rule 144 under the Securities Act of 1933, provided that they meet the criteria and conform to the requirements of that rule. 
 The selling shareholders might be, and any broker-dealers that act in connection with the sale of securities will be, deemed to be
“underwriters” within the meaning of Section 2(11) of the Securities Act, and any commissions received by such broker-dealers and any profit on the resale of the securities sold by them while acting as principals will be deemed to be
underwriting discounts or commissions under the Securities Act. 
 To the extent required, the shares of our common stock to be sold, the
names of the selling stockholders, the respective purchase prices and public offering prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus. 

 In order to comply with the securities laws of some states, if applicable, the common stock may be sold
in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for sale or an exemption from registration or qualification
requirements is available and is complied with. 
 We have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Exchange Act may apply to sales of shares in the market and to the activities of the selling stockholders and their affiliates. In addition, we will make copies of this prospectus (as it may be supplemented or amended from time to time)
available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the
shares against certain liabilities, including liabilities arising under the Securities Act. 
 We have agreed to indemnify the selling
stockholders against liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration of the shares offered by this prospectus. 
 We have agreed with the selling stockholders to keep the registration statement that includes this prospectus effective until the earlier of
(1) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance with the registration statement or (2) the date on which the shares may be sold pursuant to Rule 144(k) of the Securities
Act. 

 ANNEX B 
 Selling Stockholder Questionnaire 
  

	To:	Brooke Corporation 

 Pursuant to Section 3 of the
Registration Rights Agreement, the undersigned hereby furnishes to the Company the following information for use by the Company in connection with the preparation of the Registration Statement contemplated by the Registration Rights Agreement.

  

	 	(1)	Name and Contact Information: 

  

			
		
	 Full legal name of record holder:
	  	  
		
	 Address of record holder:
	  	  
		
	Social Security Number or Taxpayer identification number of record holder:	  	  
		
	Identity of beneficial owner (if different than record holder):	  	  
		
	 Name of contact person:
	  	  
		
	 Telephone number of contact person:
	  	  
		
	 Fax number of contact person:
	  	  
		
	 E-mail address of contact person:
	  	  

	 	(2)	Beneficial Ownership of Registrable Securities: 

  

	 	(a)	Number of Registrable Securities owned by Selling Stockholder: 

 _________________________________________________________________________________________________________ 
  

	 	(b)	Number of Registrable Securities requested to be registered: 

 _________________________________________________________________________________________________________ 
  

	 	(3)	Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder: 

 Except as set forth below in this Item (3), the undersigned is not the beneficial or registered owner of any securities of the Company other than the
Registrable Securities listed above in Item (2)(a). 
 Type and amount of other securities beneficially owned by the Selling Stockholder:

 _______________________________________________________________________________________________________ 
 _______________________________________________________________________________________________________ 
  

	 	(4)	Relationships with the Company: 

 Except as set
forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years. 
 State any exceptions here: 
 ______________________________________________________________________________________________________ 
 ______________________________________________________________________________________________________ 
  

	 	(5)	Plan of Distribution: 

 Except as set forth below,
the undersigned intends to distribute pursuant to the Registration Statement the Registrable Securities listed above in Item (2) in accordance with the “Plan of Distribution” section set forth therein: 
 State any exceptions here: 
 _______________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________ 

	 	(6)	Selling Stockholder Affiliations: 

 (a) Is the
Selling Stockholder a registered broker-dealer? 
 ________________________________________________________________________________________________ 
 (b) Is the Selling Stockholder an
affiliate of a registered broker-dealer(s)? (For purposes of this response, an “affiliate” of, or person “affiliated” with, a specified person, is a person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the person specified.) 
 _________________________________________________________________________________________________ 
 (c) If the answer to Item
(6)(b) is yes, identify the registered broker-dealer(s) and describe the nature of the affiliation(s): 
 ______________________________________________________________________________________________________ 
 (d) If the answer to Item
(6)(b) is yes, did the Selling Stockholder acquire the Registrable Securities in the ordinary course of business (if not, please explain)? 
 ______________________________________________________________________________________________________ 
 (e) If the answer to Item
(6)(b) is yes, did the Selling Stockholder, at the time of purchase of the Registrable Securities, have any agreements, plans or understandings, directly or indirectly, with any person to distribute the Registrable Securities (if yes, please
explain)? 
 _____________________________________________________________________________________________________ 
  

	 	(7)	Voting or Investment Control over the Registrable Securities: 

 If the Selling Stockholder is not a natural person, please identify the natural person or persons who have voting or investment control over the Registrable Securities listed in Item (2) above: 
 _________________________________________________________________________________________________________ 
 The undersigned hereby acknowledges that the undersigned shall indemnify the Company and each of its directors and officers against, and hold the Company
and each of its directors and officers harmless from, any losses, claims, damages, expenses or liabilities (including reasonable attorneys fees) to which the Company or its directors and officers may become subject by reason of any statement or
omission in the Registration Statement made in reliance upon, or in conformity with, a written statement by the undersigned, including the information furnished in this Questionnaire by the undersigned. 

 By signing below, the undersigned consents to the disclosure of the information contained herein in its
answers to Items (1) through (7) above and the inclusion of such information in the Registration Statement, any amendments thereto and the related prospectus. The undersigned understands that such information will be relied upon by the
Company in connection with the preparation or amendment of the Registration Statement and the related prospectus. 
 The undersigned has
reviewed the answers to the above questions and affirms that the same are true, complete and accurate. THE UNDERSIGNED AGREES TO NOTIFY THE COMPANY IMMEDIATELY OF ANY CHANGES IN THE FOREGOING INFORMATION. 
  

							
				
	Dated:                    , 2007	 		 		 	  
		 		 		 	Signature of Record Holder (Please sign your name in exactly the same manner as the certificate(s) for the shares being registered)Waiver Agreement, dated as of June 28, 2007

 Exhibit 10.04 
 WAIVER AGREEMENT 
 THIS WAIVER AGREEMENT (this “Agreement”) is made as of
June 28, 2007, by and between BROOKE CORPORATION, a Kansas corporation (the “Company”) and HBK MASTER FUND, L.P., a Cayman Islands limited partnership (“HBK” and together with the Company, the
“Parties”). 
 WHEREAS, HBK executed a Securities Purchase Agreement dated September 15, 2006 (the “Securities
Purchase Agreement”) with Brooke Corporation (the “Company”) in connection with the purchase of Securities (as hereafter defined). In accordance with the Securities Purchase Agreement, HBK purchased securities (the
“Securities”) of the Company, consisting of 20,000 shares of 13% Perpetual Convertible Preferred Stock Series 2006 of the Company initially convertible into 1,176,471 shares of Common Stock governed by the Certificate of
Designations, Preferences and Rights filed with the Kansas Secretary of State on September 15, 2006 (the “Preferred Certificate”), and a Warrant initially exercisable into 235,294 shares of Common Stock at an exercise price
equal to $23.9954 per share dated September 15, 2006 (the “Warrant”). Capitalized terms used herein and not defined shall have the respective meanings ascribed to them in the Securities Purchase Agreement, the Preferred
Certificate and the Warrant; and 
 WHEREAS, the Company desires to sell additional securities in the gross amount of up to $22.5 million to
investors (the “New Investors”) pursuant to a securities purchase agreement, which shall be in form and substance reasonably acceptable to HBK (the “Proposed Securities Purchase Agreement”), between the New
Investors and the Company (for which Oppenheimer & Co. Inc. is acting as placement agent), and the Company is seeking this waiver in order to proceed with the sale of securities pursuant to the Proposed Securities Purchase Agreement; and

 WHEREAS, Section 4(o)(iii) of the Securities Purchase Agreement provides that “until no Preferred Shares remain outstanding, the
Company will not, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section...,” which requires the Company to provide HBK with notice and an opportunity to purchase any securities
offered in a Subsequent Placement; and 
 WHEREAS, Section 2(a)(vi) of the Preferred Certificate defines “Brooke Holdings
Group” to mean “collectively, Brooke Holdings, Inc., Robert D. Orr, Leland G. Orr, Anita F. Larson, Shawn T. Lowry, Michael S. Lowry, or Kyle L. Garst and any other officers and directors of the Company or its affiliates” and Shawn T.
Lowry has withdrawn from the Brooke Holdings Group; and 
 WHEREAS, Section 3(a) of the Preferred Certificate defines a “Triggering
Event” to include the consummation of a Subsequent Placement resulting in gross proceeds to the Company in excess of $10 million; and 
 WHEREAS, Section 1 of the Preferred Certificate provides that dividends payable to holders of Preferred Stock shall commence accruing on the second anniversary of the date the Preferred Stock was initially issued at a rate of
13% per annum, and, upon the happening of a 

 
Triggering Event, the accrual of dividends will automatically accelerate to the date such Triggering Event occurs, with such dividends payable at varying
rates, as described in Section 2(a)(xvii) of the Preferred Certificate; and 
 WHEREAS, Section 2(b) of the Preferred Certificate
provides the holders of Preferred Stock the right to convert in full the Preferred shares upon the happening of a Triggering Event; and 
 WHEREAS, Section 3 of the Preferred Certificate provides HBK an option to require the Company to redeem all or a portion of the Preferred Stock upon the happening of a Triggering Event at the Redemption Price, which would represent a
premium over the Conversion Price; and 
 WHEREAS, Section 2(a) of the Warrant provides for the adjustment of the exercise price of the
Warrant from the exercise price then in effect under certain circumstances to an amount equal to the per share consideration paid for any shares of Common Stock sold by the Company subsequent to the purchase of the Securities pursuant to the
Securities Purchase Agreement. The current exercise price of the Warrant currently is $23.9954 per share of Common Stock; and 
 WHEREAS,
Section 2(f)(i) of the Preferred Certificate provides for the adjustment of the conversion price of the Preferred Stock from the conversion price then in effect to an amount equal to the per share consideration paid for any shares of Common
Stock sold subsequent to the purchase of the Securities pursuant to the Securities Purchase Agreement. The current conversion price of the Preferred Stock currently is $17.00 per share of Common Stock; and 
 WHEREAS, the parties have previously entered into a Confidential Disclosure Agreement and Waiver dated as of June 4, 2007 (the
“Confidentiality Agreement”) relating to the Proposed Securities Purchase Agreement and Regulation FD promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby acknowledge, agree
and consent as follows: 
  

	 	1.	Waiver. 

  

	 	a.	For purposes of the offer and sale of securities to the New Investors pursuant to the Proposed Securities Purchase Agreement only, HBK agrees to waive the following:

  

	 	i.	the provisions of Section 4(o)(iii) of the Securities Purchase Agreement relating solely to HBK’s right to participate in the issuance by the Company, pursuant to the
Proposed Securities Purchase Agreement, of more than $3 million of units (as defined in the Proposed Securities Purchase Agreement); 

  

	 	ii.	the dividend acceleration and variable dividend rate provisions of Sections 1 and 2(a)(xvii) of the Preferred Certificate should the proceeds of the Proposed Securities Purchase
Agreement exceed $10 million; 

  

 2 

	 	iii.	the full conversion right of Section 2(b) of the Preferred Certificate should the proceeds of the Proposed Securities Purchase Agreement exceed $10 million; and

  

	 	iv.	the redemption option and related provisions provided in Section 3 of the Preferred Certificate should the proceeds of the Proposed Securities Purchase Agreement exceed $10
million. 

  

	 	b.	With respect to the transactions contemplated by the Proposed Securities Purchase Agreement, the Parties agree that the “New Issuance Price” (as defined in the Preferred
Certificate) shall be deemed to be $16.00 (the “Preferred Deemed New Issuance Price”) and the anti-dilution provisions of Section 2(f)(i) of the Preferred Certificate shall be applied with such Preferred Deemed New Issuance
Price in lieu of the New Issuance Price. 

  

	 	c.	With respect to the transactions contemplated by the Proposed Securities Purchase Agreement, the Parties agree that the “New Issuance Price” (as defined in the Warrant)
shall be deemed to be $20.00 (the “Warrant Deemed New Issuance Price”) and the anti-dilution provisions of Section 2(a) of the Warrant shall be applied with such Warrant Deemed New Issuance Price in lieu of the New Issuance
Price. 

  

	 	d.	With respect to the transactions contemplated by the Proposed Securities Purchase Agreement, the Parties agree that the “Brooke Holdings Group” (as defined in the
Preferred Certificate) shall be deemed to exclude Shawn T. Lowry. 

  

	 	e.	These waivers are solely limited to the sections of the Securities Purchase Agreement, the Preferred Certificate and the Warrant referenced above. In all other respects, except as
otherwise provided by the Confidentiality Agreement, the Parties agree that all of the other covenants and provisions provided in the Securities Purchase Agreement, the Preferred Certificate and the Warrant shall remain and continue in full force
and effect. 

  

	 	2.	Miscellaneous 

  

	 	a.	In connection with the foregoing, the Company agrees, if necessary, to file a prospectus supplement pursuant to Rule 424(b) of the Securities Act of 1933, as amended, to the
currently effective HBK selling shareholder registration statement promptly following the effective date of this Agreement describing the material terms of this Agreement or, if available, incorporating the material terms by reference into the
registration statement by the filing of a Current Report on Form 8-K. 

  

 3 

	 	b.	Effective upon the filing of the Current Report on Form 8-K announcing the transactions contemplated by the Proposed Securities Purchase Agreement, the Confidentiality Agreement
shall be deemed terminated and of no further force and effect. 

  

	 	c.	This Agreement may be executed in two or more identical counterparts, all of which 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; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original,
not a facsimile signature. 

  

	 	d.	This Agreement shall be governed and construed in accordance with the laws of the state of New York applicable to contracts to be made and performed entirely therein without giving
effect to the principles of conflicts of law thereof or of any other jurisdiction. This Agreement may only be amended, modified and supplemented by written agreement of the parties hereto. 

 [SIGNATURE PAGE TO FOLLOW] 
  

 4 

 IN WITNESS WHEREOF, this Waiver Agreement has been duly executed by the undersigned as of June 28,
2007, effective as of the date of the Proposed Securities Purchase Agreement; provided, that if the Proposed Securities Purchase Agreement is not executed and delivered by July 15, 2007, this Agreement shall be null and void and of no further
force or effect. 
  

			
	BROOKE CORPORATION
		
	By:	 	/s/ Anita Larson
	Name:	 	Anita Larson
	Title:	 	President & COO
	
	HBK MASTER FUND L.P.

			
		
	By:	 	HBK Services LLC

			
	Investment Advisor
		
	By:	 	/s/ J. Baker Gentry, Jr.
	Name:	 	J. Baker Gentry, Jr.
	Title:	 	Authorized Signatory

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