Document:

EX-4.1

 Exhibit 4.1 
 Loan Agreement dated May 23, 2012 between Badger Meter, Inc. and BMO Harris Bank NA relating to Badger Meter, Inc.’s credit agreement. 

CREDIT AGREEMENT 
 THIS CREDIT AGREEMENT is made and entered into as of this 23rd day of May, 2012, by and between BADGER METER, INC., a Wisconsin corporation (the “Company”), and BMO HARRIS BANK N.A. (the
“Bank”). 
 RECITALS 
 The Company has requested that the Bank extend credit in the aggregate amount not to exceed $125,000,000, and the Bank has agreed to extend credit to the Company upon the terms and conditions of this
Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, the receipt
and sufficiency of all such consideration being hereby acknowledged, the parties agree as follows: 
 AGREEMENT

 SECTION 1 DEFINITIONS AND TERMS 
 1.1. Definitions. As used in this Agreement, the following terms have the following meanings: 
 “Affiliate” shall mean, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified. 
 “Agreement” shall mean this Credit Agreement, as amended, supplemented,
modified or extended from time to time. 
 “Applicable Margin” shall mean, for each Loan, the percentage set
forth under the relevant column heading in the following table by reference to (a) Consolidated Senior Funded Indebtedness outstanding on the last day of the most recently completed fiscal quarter, to (b) Consolidated EBITDA computed as of
the last day of the most recently completed fiscal quarter based on the four fiscal quarters ending on such date as follows: 
  

					
	 Tier
	  	 Consolidated Senior Funded

Indebtedness to Consolidated
 EBITDA Ratio
	  	 Applicable Margin for Revolving

Loans, and Foreign Currency
 Revolving Loans

	I	  	< 1.0 to 1.0	  	1.125%
	II	  	3 1.0 to 1 but < 2.0 to 1.0	  	1.350%
	III	  	3 2.0 to 1.0	  	1.500%

 The ratio of Consolidated Senior Funded Indebtedness to Consolidated EBITDA shall be calculated by the Company as of the
end of each fiscal quarter and shall be reported to the Bank pursuant to a certificate delivered in accordance with Section 5.1(c) hereof. Commencing with the fiscal quarter ending June 30, 2012, and continuing with each fiscal quarter
ending thereafter, the Applicable Margin shall be adjusted, if necessary, as of the first Business Day of the month following the date on which the certificate is delivered to the Bank pursuant to Section 5.1(c) and shall remain in effect until
the next adjustment to be effected pursuant hereto. For the period from the date of this Agreement through June 30, 2012, the Applicable Margin for each Loan shall be the rate set forth in Tier II for such Loan. If any certificate referred to
above is not delivered within the time periods specified in Section 5.1, then, from the date such certificate was due and continuing until three (3) Business Days following the date on which such certificate is delivered, the Applicable
Margin for each Loan shall be the rate set forth in Tier III for such Loan. 

 “Board” shall mean the Board of Governors of the Federal Reserve System of
the United States of America. 
 “Borrowing Date” shall have the meaning assigned in Section 2.3.

 “Business Day” shall mean any day that is not a Saturday or Sunday or other day on which commercial banks
in Milwaukee, Wisconsin are authorized or required by law to remain open; provided, however, that when used in connection with Loans bearing interest at the LIBOR Rate, the term “Business Day” shall also exclude any day on
which bank are not open for dealings in Dollar deposits in the London interbank market. 
 “Capital Lease
Obligations” shall mean with respect to any Person, obligations of such Person to pay rent or other amounts under any lease (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Change in Control” shall mean the occurrence of any of the following: (a) the consummation of any transaction the
result of which is that any “person” or “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 but excluding any employee benefit plan of the Company or its Subsidiaries, and any Person acting
in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as such term is defined in Rule 13d-3 under the Securities Exchange Act of 1934) of more than twenty-five percent
(25%) of the total voting power in the aggregate of all classes of the Voting Securities of the Company then outstanding, or (b) during any period of two consecutive calendar years, individuals who at the beginning of such period
constituted the board of directors of the Company cease for any reason to constitute a majority of the directors of the Company then in office unless (i) such new directors were elected or nominated by a majority of the directors of the Company
who constituted the board of directors of the Company at the beginning of such period or (ii) the reason for such directors failing to constitute a majority is a result of retirement by directors due to age, death or disability. 

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any successor statute, together with the
regulations and published interpretations thereunder, in each case as in effect from time to time. 

“Commitments” shall mean the Revolving Commitment and the Foreign Currency Revolving Commitment, and each is a
“Commitment”. 
 “Company Financial Statements” shall have the meaning assigned in Section 3.4.

 “Compliance Certificate” shall mean a certificate, substantially in the form of Exhibit D. 

“Computation Date” shall have the meaning assigned in Section 2.4(b). 

“Consolidated EBITDA” shall mean Consolidated Net Income plus, to the extent deducted in determining
Consolidated Net Income, (i) current and deferred income taxes, plus (ii) Consolidated Interest Expense, plus (iii) depreciation, plus (iv) amortization, all calculated in accordance with GAAP for the Company
and its Subsidiaries on a consolidated basis. 
 “Consolidated Funded Indebtedness” shall mean at any time the
aggregate Dollar amount of interest-bearing Consolidated Indebtedness of the Company and its Subsidiaries which has actually been funded and is outstanding at such time, whether or not such amount is due or payable at such time, including the face
amount of all outstanding letters of credit and the full stated amount of all outstanding commercial paper. 

“Consolidated Indebtedness” shall mean at any time the Indebtedness of the Company and its Subsidiaries calculated on a
consolidated basis as of such time. 
 “Consolidated Interest Expense” shall mean, with reference to any
period, the interest expense of the Company and its Subsidiaries calculated on a consolidated basis for such period. 

  
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 “Consolidated Net Income” shall mean, with reference to any period,
the Net Income (or Net Loss) of the Company and its Subsidiaries calculated on a consolidated basis for such period. 

“Consolidated Senior Funded Indebtedness” shall mean at any time the aggregate Dollar amount of Consolidated Funded
Indebtedness which is not subordinated to the Loans. 
 “Control” shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. The terms “Controlling” and “Controlled” have
meanings correlative thereto. 
 “Default” shall mean any event or condition that constitutes an Event of
Default or that upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 

“Dollar Amount” of any currency at any date shall mean the equivalent in Dollars of such amount if such currency is any
currency other than Dollars, calculated on the basis of the arithmetical mean of the buy and sell spot rates of exchange of the Bank for such currency on the London market at 11:00 a.m., London time, on or as of the most recent Computation Date
provided for in Section 2.4(b). 
 “Dollars” or “$” shall mean lawful money of the
United States of America. 
 “Effective Date” shall mean May 23, 2012. 

“Environmental Law” means any and all present and future treaties, laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the presence,
management, release or threatened release of any Hazardous Material or to health and safety matters. 
 “Equity
Interests” shall mean (a) shares of corporate stock, partnership interests, limited liability company membership interests, and any other interest that confers on a Person the right to receive a share of the profits and losses of, or
distribution of assets of, the issuing Person, and (b) all warrants, options or other rights to acquire any Equity Interest set forth in the foregoing clause (a). 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and any successor statute, together with the regulations and published interpretations thereunder, in
each case as in effect from time to time. 
 “ERISA Affiliate” shall mean any trade or business (whether or
not incorporated) that, together with the Company and any Subsidiary, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated
as a single employer under Section 414 of the Code. 
 “ERISA Event” shall mean (a) any “reportable event”,
as defined in Section 4043 of ERISA with respect to a Plan (other than an event for which the 30 day notice period is waived), (b) any failure to satisfy the minimum funding standards of Section 412 of the Code or Section 302 of
ERISA with respect to any Plan, whether or not waived, (c) the incurrence by the Company, any Subsidiary or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan, (d) the receipt by the
Company, any Subsidiary or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan, (e) the incurrence by the Company, any
Subsidiary or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan, or (f) the receipt by the Company, any Subsidiary or any ERISA Affiliate of any notice, or the receipt
by any Multiemployer Plan from the Company, any Subsidiary or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA. 
 “euro” and/or “EUR” shall mean the single
currency for any participating member state of the European Union. 

  
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 “Euro Index Rate” shall mean, for any applicable Interest Period, the rate
per annum equal to the rate (rounded upwards, if necessary, to the nearest 1/100 of 1%) quoted to the Bank as the rate at which Euro deposits are offered to the Bank two (2) Business Days prior to the commencement of the applicable Interest
Period in the London interbank offered rate market as at or about 9:00 a.m., Milwaukee, Wisconsin time, for delivery on the first day of the applicable Interest Period, for the number of days comprised therein and in an amount equal or comparable to
the amount of such Loan for such Interest Period. The Euro Rate shall be determined by the Bank in accordance with the terms of this Agreement. The Bank currently uses the British Bankers Association to provide information with respect to the London
interbank market, but the Bank may change the service providing such information at any time. Each such determination shall be conclusive and binding upon the parties in the absence of demonstrable error. 

“Euro Rate” shall mean the Euro Index Rate plus the Applicable Margin. 

“Event of Default” shall have the meaning assigned in Section 7.1. 

“Financial Officer” shall mean the chief financial officer, principal accounting officer, treasurer or controller of
the Company. 
 “Foreign Currency Revolving Loans” shall mean loans to the Company pursuant to the Foreign
Currency Revolving Commitment and Section 2.2, as evidenced by the Foreign Currency Revolving Credit Note. 

“Foreign Currency Revolving Commitment” shall mean the obligation of the Bank to make Foreign Currency Revolving Loans
to the Company in an aggregate Dollar amount not exceeding $5,000,000. 
 “Foreign Currency Revolving Credit
Note” shall mean the promissory note from the Company to each Bank in the form of Exhibit B evidencing the Foreign Currency Revolving Loans, as amended, supplemented, modified or extended from time to time. 

“GAAP” shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public Accountants and in the statements and pronouncements of the Financial Accounting Standards Board or in such other statement by such other entity as may be approved by a
significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination, consistently applied. 
 “Government Authority” shall mean the government of the United States of America, and any other nation or any political subdivision thereof, whether state or local, and any agency,
commission, exchange, association, board, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government, and any corporation or other entity owned or controlled through stock or capital ownership or otherwise, by any of the foregoing. 
 “Guarantors” shall mean Badger Meter Europe GmbH, Badger Meter de Mexico, SA de CV and Racine Federated, Inc., and any other direct or indirect Subsidiary of the Company that may now or
hereafter guaranty the Obligations. 
 “Guaranty” shall mean the Guaranty in the form of Exhibit C of
the Guarantors in favor of the Bank, as amended, supplemented, modified or extended, from time to time. 
 “Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Indebtedness” of any Person shall mean, without duplication, (a) the Revolving Loans and all other indebtedness for borrowed money; (b) Capital Lease Obligations; (c) all
obligations of such Person, contingent or otherwise, as an account party or applicant under acceptances, letters of credit or similar facilities; (d) all other obligations which are evidenced by notes, bonds, debentures or other similar
instruments; and (e) indebtedness of another Person guaranteed in any manner by the Company or a Subsidiary. 

  
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 “Indemnitee” shall have the meaning assigned in Section 8.2.

 “Interest Payment Date” shall mean the first day of each month. 

“Interest Period” means, as to each Foreign Currency Revolving Loan, the period commencing on the date such Loan is
disbursed or continued and ending on the date one, two or three months thereafter, or to the extent agreed to by the Bank, such longer period in additional thirty day increments; provided that (a) any Interest Period that would otherwise end on
a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; (b) any Interest
Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period; and (c) no Interest Period shall extend beyond the Termination Date for Foreign Currency Revolving Loans. 
 “LIBOR Index Rate” shall mean the annual rate equal to the rate at which U.S. Dollar deposits are offered for a thirty (30) day period as determined by the British Bankers
Association (BBA LIBOR) and reported by a major news service selected by the Bank (such as Reuters, Bloomberg or Moneyline Telerate). This rate will change on the first day of each calendar month on or about 9 a.m., Milwaukee, Wisconsin time. If BBA
LIBOR for the selected period is not provided or reported on the first day of a month because, for example, it is a weekend or holiday or for another reason, the LIBOR Rate shall be established as of the preceding day on which a BBA LIBOR rate is
provided for the selected period and reported by the selected news service. 
 “LIBOR Rate” shall mean the
LIBOR Index Rate plus the Applicable Margin. 
 “Lien” shall mean any mortgage, pledge, hypothecation,
assignment, collateral deposit arrangement, encumbrance, lien (statutory or other), deed of trust, charge, preference, priority, security interest or other security agreement or preferential arrangement of any kind or nature whatsoever including,
without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable law of any
jurisdiction. 
 “Loan Request” shall have the meaning assigned in Section 2.3. 

“Loans” shall mean the Revolving Loans and the Foreign Currency Revolving Loans. 

“Margin Stock” shall have the meaning assigned to such term in Regulation U. 

“Material Adverse Change” shall mean a material adverse change in (a) the financial condition, operations,
business or property of (i) the Company or (ii) the Company and its Subsidiaries, taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement or any Related Document to which it is a party, or
(c) the validity or enforceability of this Agreement or any Related Document or the rights or remedies of the Bank hereunder or thereunder. 
 “Material Adverse Effect” shall mean a material adverse effect on (a) the financial condition, operations, business or property of (i) the Company or (ii) the Company and
its Subsidiaries, taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement or any Related Document to which it is a party, or (c) the validity or enforceability of this Agreement or any Related
Document or the rights or remedies of the Bank hereunder or thereunder. 
 “Maximum Available Loan Commitment”
shall mean, for any Loan, an amount equal to the excess (if any) of (a) the applicable Commitment, minus (b) the outstanding principal amount of all Loans pursuant to the applicable Commitment and, with respect to the Revolving
Commitment, the face amount of any commercial paper. 

  
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 “Multiemployer Plan” means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA. 
 “Net Income” or “Net Loss” shall mean, for any period,
the net after-tax income (or net loss) of a Person on a consolidated basis determined in accordance with GAAP, excluding the after-tax effect of gains or losses from the sale of capital assets and other extraordinary gains or losses. 

“Notes” shall, collectively, mean the Revolving Credit Note and the Foreign Currency Note, and any note(s) issued in
substitution, replacement or renewal thereof. 
 “Obligations” shall mean the Loans, all mandatory
prepayments, all fees, costs and expenses, all Rate Management Obligations of the Company, all liabilities of the Company to the Bank under this Agreement and the Related Documents, and all other Indebtedness of the Company to the Banks or any of
its Affiliates, whether or not evidenced by this Agreement or the Related Documents. 
 “OFAC” shall have the
meaning assigned in Section 8.14. 
 “Participant” shall have the meaning assigned in Section 8.3.

 “Patriot Act” shall have the meaning assigned in Section 8.14. 

“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA. 

“Permitted Liens” shall mean: (a) Liens for taxes, assessments, or governmental charges, carriers’,
warehousemen’s, repairmen’s, mechanics’, materialmen’s and other like Liens, which are either not delinquent or are being contested in good faith by appropriate proceedings which will prevent foreclosure of such Liens, and
against which adequate cash reserves have been provided; (b) easements, restrictions, minor title irregularities and similar matters which have no material adverse effect upon the ownership and use of the affected property; (c) Liens or
deposits in connection with worker’s compensation, unemployment insurance, social security or other insurance or to secure customs duties, public or statutory obligations in lieu of surety, stay or appeal bonds, or to secure performance of
contracts or bids, other than contracts for the payment of money borrowed, or deposits required by law as a condition to the transaction of business or other Liens or deposits of a like nature made in the ordinary course of business; and
(d) Liens evidenced by conditional sales, purchase money mortgages or other title retention agreements on machinery and equipment (acquired in the ordinary course of business and otherwise permitted to be acquired hereunder) which are created
at the time of the acquisition of such property solely for the purposes of securing the Indebtedness incurred to finance the cost of such property, provided no such Lien shall extend to any property other than the property so acquired and
identifiable proceeds. 
 “Person” shall mean an individual, partnership, corporation, limited liability
company or partnership, firm, enterprise, business trust, joint stock company, trust, unincorporated association, joint venture, Government Authority or other entity of whatever nature. 

“Plan” means an employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV
of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Company, any Subsidiary or any ERISA Affiliate is (or, it such plan were terminated, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA. 
 “Prime Rate” shall mean the interest rate
publicly announced by the Bank from time to time in Milwaukee, Wisconsin as its prime rate for interest rate determinations, which is solely a reference rate and may be at, above or below the rate or rates at which the Bank lends to other Persons.
Any change in the Prime Rate shall become effective as of the opening of business on the day on which such change is publicly announced by the Bank. 
 “Related Documents” shall mean the Notes, the Guaranties and all other instruments, agreements, certificates, and other documents executed by or on behalf of the Company, any Subsidiary
or any Guarantor in connection with any Rate Management Transaction (including, as applicable, any ISDA Master Agreement and each schedule, transaction and confirmation relating to or entered into under the ISDA Master Agreement or under any other
such agreement) including all deliveries under Section 4.1 hereof or in connection with any of the other Obligations or the transactions contemplated under this Agreement, all as amended, supplemented, modified or extended from time to time.

  
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 “Rate Management Obligations” shall mean any and all debts, obligations
and liabilities of a Person, whether absolute or contingent and howsoever and whenever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (i) any and all Rate
Management Transactions, and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Rate Management Transactions. 
 “Rate Management Transaction” means any transaction (including an agreement with respect thereto) now existing or hereafter entered into between the Company and any Bank or Affiliate
thereof which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. 
 “Revolving Loans” shall mean loans to the Company pursuant to the Revolving Commitment and Section 2.1, as evidenced by the Revolving Credit Note. 

“Revolving Commitment” shall mean the obligation of the Bank to make Revolving Loans to the Company in an aggregate
amount not exceeding $120,000,000, as reduced from time to time pursuant to the terms hereof. 
 “Revolving Credit
Note” shall mean the promissory note from the Company to each Bank in the form of Exhibit A evidencing the Revolving Loans, as amended, supplemented, modified or extended from time to time. 

“SEC” shall mean the Securities and Exchange Commission or any Governmental Authority succeeding to the functions
thereof. 
 “Subsidiary” shall mean as to any Person, any corporation, association, partnership, limited
liability company, joint venture or other business entity of which such Person or any Subsidiary of such Person, directly or indirectly, either (a) in respect of a corporation, owns or controls more than fifty percent (50%) of the
outstanding Equity Interests having ordinary voting power to elect a majority of the board of directors or similar managing body, irrespective of whether a class or classes shall or might have voting power by reason of the happening of any
contingency, or (b) in respect of an association, partnership, joint venture or other business entity, is entitled to share in more that fifty percent (50%) of the profits and losses, however determined. Unless the context otherwise
requires, any reference to a Subsidiary shall be deemed to refer to a Subsidiary of the Company. 
 “Tax”
shall mean any present or future tax, levy, assessment, impost, duty, charge, fee, deduction or withholding of any nature, and whatever called, by a Governmental Authority, on whomsoever and wherever imposed, levied, collected, withheld or assessed.

 “Termination Date” shall mean, (a) as to the Revolving Loans, May 23, 2015, and (b) as to
the Foreign Currency Revolving Loans, May 23, 2013; or such earlier date on which the Commitments shall terminate pursuant to the terms hereof. 
 “Transactions” shall mean (a) the execution, delivery and performance by the Company and each Guarantor of this Agreement and the Related Documents to which they are a party,
(b) the borrowing of the Loans, and (c) the use of proceeds of the Loans. 
 “Voting Securities”
means a security which ordinarily has voting power for the election of the board of directors (or other governing body), whether at all times or only so long as no senior class of Equity Interests has such voting power by reason of any contingency.

  
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 “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
 1.2. Accounting and Financial Determinations. Except as provided to the contrary herein, all accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be
made in accordance with Agreement Accounting Principles, except that any calculation or determination which is to be made on a consolidated basis shall be made for the Company and all its Subsidiaries, including those Subsidiaries, if any, which are
unconsolidated on the Company’s audited financial statements. If any change in generally accepted accounting principles from those applied in the preparation of the financial statements referred to in Section 5.1 is occasioned by the
promulgation of rules, regulations, pronouncements and opinions by or required by the American Institute of Certified Public Accountants (or its boards or committees or successors thereto or agencies with similar functions), the initial announcement
of which change is made after the date hereof, results in a change in the method of calculation of financial covenants, standards or terms found in Section 6, the parties hereto agree to enter into good faith negotiations in order to amend such
provisions so as to reflect such changes with the desired result that the criteria for evaluating the Company’s financial condition shall be the same after such changes as if such changes had not been made; and provided, further,
that until such time as the parties hereto agree upon such amendments, such financial covenants, standards and terms shall be construed and calculated as though no change had taken place. When used herein, the term “financial statement”
shall include balance sheets, statements of earnings, statements of stockholders’ equity, statements of cash flows and the notes and schedules thereto, and each reference herein to a balance sheet or other financial statement of the Company
shall be to a statement prepared on a consolidated basis, unless otherwise specified. 
 1.3. Interpretation. The words
“hereof,” “herein” and “hereunder” and words of a similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Section, Schedule and Exhibit
references contained in this Agreement are references to sections, schedules and exhibits in or to this Agreement unless otherwise specified. Any reference in any Section or definition to any clause is, unless otherwise specified, to such clause of
such Section or definition. 
 1.4. Other Terms. Except as otherwise specifically provided, each accounting term used
herein shall have the meaning given to it under GAAP. Terms defined in other Sections of this Agreement shall have the meanings set forth therein. 
 SECTION 2 THE CREDITS 
 2.1. Revolving Commitment. From and
including the Effective Date and prior to the Termination Date for Revolving Loans, and so long as no Default is in existence, the Bank agrees, on the terms and conditions set forth in this Agreement, to make Revolving Loans to the Company from time
to time in Dollars in amounts not to exceed in the aggregate at any one time outstanding of the Revolving Commitment. Subject to the terms of this Agreement, the Company may borrow, repay (in whole or in part) and reborrow at any time prior to the
Termination Date for Revolving Loans. The Revolving Commitment shall expire on the Termination Date for Revolving Loans. 
 2.2.
Foreign Currency Revolving Commitment. From and including the Effective Date and prior to the Termination Date for Foreign Currency Revolving Loans, and so long as no Default is in existence, the Bank agrees, on the terms and conditions set
forth in this Agreement, to make Foreign Currency Revolving Loans to the Company from time to time in euro in amounts not to exceed in the aggregate at any one time outstanding of the Foreign Currency Revolving Commitment. Subject to the terms of
this Agreement, the Company may borrow, repay (in whole or in part) and reborrow at any time prior to the Termination Date for Foreign Currency Revolving Loans, provided that payments on any Foreign Currency Revolving Loan may be made only at
the end of the applicable Interest Period. The Foreign Currency Revolving Commitment shall expire on the Termination Date for Foreign Currency Revolving Loans. 
 2.3. Procedures for Revolving Loans and Foreign Currency Revolving Loans. 

(a) The Company may obtain Revolving Loans or Foreign Currency Revolving Loans under this Agreement only as provided in this
Section 2.3. The Company shall give the Bank notice of any Revolving Loan or Foreign Currency Revolving Loan requested under this Agreement (the “Loan Request”) specifying the date the Revolving Loan is to be made to the
Company (which shall be a Business Day) (the “Borrowing Date”), the amount of the Loans requested and, with respect to a Foreign Currency 

  
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Revolving Loan, the Interest Period. Each Loan Request shall be received by the Bank not later than 12:00 Noon (Milwaukee, Wisconsin time) on the requested Borrowing Date for a Revolving Loan and
by 12:00 Noon (Milwaukee, Wisconsin time) three (3) Business Days before the Borrowing Date for a Foreign Currency Revolving Loan. 
 No Loan
Request shall be modified, altered or amended without the prior written consent of the Bank. 
 (b) All Loan Requests shall be
in writing unless the Bank agrees to accept telephonic requests or as otherwise mutually agreed to by the Company and the Bank. The Loan Requests shall be on forms approved by the Bank. 

(c) Each Loan (other than Foreign Currency Revolving Loans) shall be in the principal amount of the lesser of (i) $1,000,000 or a
multiple of $500,000 thereof or (ii) the applicable Maximum Available Loan Commitment. Each Foreign Currency Revolving Loan shall be in a minimum amount of €250,000 (and in multiples of €50,000 in excess thereof), provided
however, that any such Foreign Currency Revolving Loan may be in an amount of the unused Foreign Currency Revolving Commitment. 
 (d) As an accommodation to the Company, the Company may utilize the Bank’s business online banking software to request borrowings in lieu of telephonic or written Loan Requests as set forth above. In
the event the Company utilizes the business online banking software to request a borrowing hereunder, any such request shall be deemed a certification by the Company that the conditions specified in Section 4.2 have been satisfied. 

(e) Upon fulfillment of the conditions specified in Section 4.2, the Bank shall promptly deposit the amount of the requested Loan
in the general deposit account of the Company maintained at the Bank. 
 (f) The Bank is authorized to make book entries
evidencing the Loans, payments made on the Loans and the other payments made under this Agreement. The aggregate unpaid amount of all Loans and the interest due thereon, as evidenced by those entries and the Company’s Loan Requests, are
presumptive evidence that those amounts are outstanding and unpaid to the Bank. 
 2.4. Payments; Continuation of Foreign
Currency Revolving Loans; Reduction of Commitments. 
 (a) All payments to be made by the Company shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Each Loan and each payment of interest thereon shall be paid in the currency in which such Loan was made. All payments by the Company hereunder shall be made to the Bank in
immediately available funds not later than 12:00 noon (Milwaukee Wisconsin time) on the date specified herein to such office, branch, affiliate or correspondent bank of the Bank as it may from time to time specify to the Company. All payments
received by the Bank after 12:00 noon (Milwaukee, Wisconsin time) shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall in each case continue to accrue. 

(b) At any time that (i) the aggregate principal amount of Revolving Loans outstanding plus outstanding commercial paper
issued by the Company exceeds the Revolving Commitment, or (ii) Foreign Currency Loans outstanding exceed the Foreign Currency Revolving Commitment, the Company shall immediately pay the amount of such excess, as applicable for each facility,
in immediately available funds, together with interest accrued on the amount of the payment. The Bank shall apply such payments to the applicable facility in such order as the Bank shall determine in its sole discretion. 

(c) The Bank will determine the Dollar Amount of (i) each Foreign Currency Revolving Loan as of the date three Business Days prior
to the borrowing date thereof, or if applicable, date of continuation of such Loan, and (ii) all outstanding Foreign Currency Revolving Loans on and as of the last Business Day of each quarter and on any other Business Day elected by the Bank
in its discretion. Each day upon or as of which the Bank determines Dollar Amounts as described in the preceding clauses (i) and (ii) is herein described as a “Computation Date” with respect to each Foreign Currency Revolving Loan for
which a Dollar Amount is determined on or as of such day. If at any time the Dollar Amount of the sum of the aggregate principal amount of all outstanding Foreign Currency Revolving Loans (calculated as of the most recent Computation Date with
respect to each such Loan) exceeds the Foreign Currency Revolving Commitment, the Company shall within ten (10) days after written notice from the Bank repay Foreign Currency Revolving Loans in an aggregate principal amount sufficient to
eliminate any such excess. 
 (d) The Revolving Commitment shall be permanently reduced on an annual basis by an amount equal
to $16,666,666.67 commencing May 23, 2013 and on May 23 of each year thereafter. 
 (e) At the end of any Interest
Period for Foreign Currency Revolving Loans, the Company shall either (i) pay such Loan, or (ii) provide the Bank with written (or telephonic, if agreed to by the Bank) notice of the Company’s desire to continue such Loan and shall
specify the requested date of the continuation (which shall be a Business Day), the principal amount of Loans to be continued and the Interest Period with respect thereto. Each such notice of continuation must be received by the Bank 12:00 Noon
(Milwaukee, Wisconsin time) at least three (3) Business Days prior to the end of the applicable Interest Period. 

                         
   (f) The Company may, upon two (2) Business Days’ prior written notice to the Bank permanently reduce the aggregate amount of any of the Commitments; provided that no such reduction shall reduce the amount of the
applicable Commitment to an amount less than the aggregate unpaid principal balance of the Note for the applicable Loan on the effective date of such reduction. Each reduction in the applicable Commitment shall be in a minimum amount of $1,000,000
and in integral multiples of $1,000,000 above such minimum. 
 (g) Notwithstanding the foregoing provisions of this Section,
if, after the making of any Foreign Currency Revolving Loan, currency control or exchange regulations are imposed in the country which issues euros with the result that the euro no longer exists or the Company is not able to make payment to the Bank
in such currency, then all payments to be made by the Company hereunder in such currency shall instead be made when due in Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due, it being the intention of
the parties hereto that the Company take all risks of the imposition of any such currency control or exchange regulations. 

2.5. Interest. From the date of the first Revolving Loan and until all Revolving Loans are paid in full, the Company shall pay to
the Bank all accrued and unpaid interest on the Revolving Loans on the applicable Interest Payment Date, commencing with the first Interest Payment Date following the date of the First Revolving Loan. From the date of the first Foreign Currency
Revolving Loan and until all Foreign Currency Revolving Loans are paid in full, the Company shall pay to the Bank all accrued and unpaid interest on the Foreign Currency Revolving Loans on the applicable Interest Payment Date, commencing with the
first Interest Payment Date following the date of the first Foreign Currency Revolving Loans. Prior to a Default, interest shall accrue on the aggregate unpaid principal amount of Revolving Loans from time to time outstanding at a rate per annum
equal to the LIBOR Rate. Prior to a Default, interest shall accrue on the aggregate unpaid principal amount of Foreign Currency Revolving Loans from time to time outstanding at a rate per annum equal to the Euro Rate. All outstanding unpaid
principal and accrued interest on the Loans shall be due and payable on the applicable Termination Date for the applicable Loans. 
 2.6. Interest After Default. After a Default, each of the Obligations shall bear interest at the rate of five percent (5%) per annum in excess of the applicable rates set forth herein. In no
event shall the interest rate under the Notes exceed the highest rate permitted by law. 

  
 9 

 2.7. Computations; Payments. Interest shall be computed and adjusted daily based on a
365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under
this Agreement and the Notes is computed using this method. This calculation method results in a higher effective interest rate than the numeric interest rate stated in this Agreement. Whenever any payment to be made hereunder shall be stated to be
due on a day which is not a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest hereunder. The Bank may debit to the depository accounts maintained
by the Company with the Bank all payments on the Obligations when due without prior notice to or consent of the Company. 
 2.8.
Late Charge. In the event that any payment due under any of the Obligations is not received by the tenth (10th) day of the month, the Company shall pay to the Bank a late charge in the amount of five percent (5%) of such delinquent
payment. 
 2.9. Prepayments. The Company may, at its option, prepay the Revolving Loans, in whole or in part without
premium or penalty. Partial prepayments shall be in the principal amount of $1,000,000 or a multiple thereof, together with accrued interest to the date of prepayment on the amount prepaid. 

2.10. Increased Costs. If Regulation D of the Board, or the adoption of any applicable law, rule or regulation of general
application, or any change therein, or any interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any
request or directive of general application (whether or not having the force of law) of any such authority, central bank or comparable agency: 
 (a) shall subject the Bank to any tax, duty or other charge with respect to the Loans, this Agreement, or its obligation to make the Loans, or shall change the basis of taxation of payments to the Bank of
the principal of or interest on the Loans or any other amounts due under this Agreement in respect of the Loans or its obligation to make the Loans (except for changes in the rate of tax on the overall net income of the Bank); or 

(b) shall impose, modify or deem applicable any reserve (including, without limitation, any reserve imposed by the Board, but excluding
any reserve included in the determination of interest rates pursuant to this Agreement), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, the Bank; or 

(c) shall affect the amount of capital required or expected to be maintained by the Bank or any corporation controlling the Bank; or

 (d) shall impose on the Bank any other condition affecting the Loans, this Agreement, or its obligation to make the Loans;

 and the result of any of the foregoing is to increase the cost to (or in the case of Regulation D referred to above, to impose a cost on) the
Bank of making or maintaining any of the Loans, or to reduce the amount of any sum received or receivable by the Bank under this Agreement with respect thereto, then within ten (10) days after demand by the Bank (which demand shall be
accompanied by a statement setting forth the basis of such demand and a calculation of the amount thereof in reasonable detail), the Company shall pay directly to the Bank such additional amount or amounts as will compensate the Bank for such
increased cost or such reduction. Determinations by the Bank for purposes of this section of the effect of any change in applicable laws or regulations or of any interpretations, directives or requests thereunder on its costs of making or
maintaining the Loans or sums receivable by it in respect of the Loans, and of the additional amounts required to compensate the Bank in respect thereof, shall be conclusive, absent manifest error. Notwithstanding the foregoing, the Company shall
not be required to compensate the Bank pursuant to this Section 2.10 for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that the Bank notifies the Company of any change giving rise to such
increased costs or reductions and of the Bank’s intention to claim compensation therefor (except that if any change in law giving rise to such increased costs or reductions is retroactive, then the nine month period referred to above shall be
extended to include the period of retroactive effect thereof). 
 2.11 LIBOR Rate Not Ascertainable. If the Bank
reasonably determines (which determination shall be binding and conclusive on all parties) that by reason of circumstances affecting the London Interbank Eurodollar Market (a) adequate and reasonable means do not exist for ascertaining the
applicable LIBOR Rate; or (b) if the Bank determines in good faith that the LIBOR Rate will not adequately and fairly reflect the cost to the Bank of 

  
 10 

 
maintaining or funding loans based on the LIBOR Rate, or that the maintenance or funding of such LIBOR Loans has become impracticable as a result of an event occurring after the date of this
Agreement which in the opinion of the Bank materially affects such Loans; then so long as such circumstances shall continue, the Bank shall not be under any obligation to make or continue the Loans based on the LIBOR Rate, and on the first Business
Day of the next calendar month, all such Loans shall bear interest at the Prime Rate. 
 2.12 No Obligation to Extend or
Forbear. The Company acknowledges and agrees that the Bank (a) upon execution hereof, has no duty or obligation of any kind to, and has made no representations of any kind or nature that the Bank will, extend credit or any other kind of
financial accommodations to the Company after the Termination Date, or forbear at any time from the exercise of any of its rights or remedies under this Agreement, the Related Documents and applicable law, and (b) may at any time, in its sole
and absolute discretion, exercise any rights and remedies the Bank may have under this Agreement, the Related Documents and applicable law. All Obligations shall be due in full on the applicable Termination Date without further demand. 

2.13. Application of Payments. Prior to an Event of Default, all payments and prepayments (other than mandatory prepayments)
hereunder shall be made to the Bank in immediately available funds and shall be applied first to unpaid costs and expenses due under this Agreement, then to accrued and unpaid interest and the remainder, if any, ratably against unpaid principal on
the Loans in such order as the Bank shall determine in its sole discretion. Upon the occurrence and during the continuance of an Event of Default, all payments and prepayments applied by the Bank toward the payment of the Obligations then due, in
such order and in such amounts as the Bank shall determine in its sole discretion. 
 SECTION 3 REPRESENTATIONS AND
WARRANTIES 
 The Company represents and warrants to the Bank as follows: 

3.1. Organization; Powers. The Company and each Subsidiary is duly organized or formed, validly existing and in good standing
under the laws of its organization or formation, has all requisite power and authority to carry on its business as now conducted or proposed to be conducted and, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
 3.2. Authorization; Enforceability. The Transactions are within the corporate powers of the Company and the Guarantors and have been duly authorized by all necessary corporate and, if required,
equity holder action. This Agreement and each Related Document to which the Company or any Guarantor is a party has been duly executed and delivered by the Company and the Guarantors and constitutes a legal, valid and binding obligation thereof,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general principles of equity. 

3.3. Governmental Approvals; No Conflicts. 
 (a) The execution, delivery and performance by the Company and the Guarantors, as applicable, of this Agreement and the Related Documents to which they are a party, and the borrowing of the Loans by the
Company do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for (i) information filings made in the ordinary course of business, which filings are not a condition to
the Company’s or any Guarantor’s performance under this Agreement or the Related Documents to which they are a party, and (ii) such as have been obtained or made and are in full force and effect and not subject to any appeals period.

 (b) The Transactions will not (i) violate the charter, bylaws or other organizational documents of the Company or any
Guarantor, (ii) violate any applicable law or regulation or any order of any Governmental Authority, (iii) violate or result in a default under any material indenture, agreement or other instrument binding upon the Company or any Guarantor
or their respective assets, or give rise to a right thereunder to require any payment be made by the Company or any Guarantor, and (iv) result in or require the creation or imposition of any Lien on any asset of the Company or any Guarantor.

  
 11 

 3.4. Financial Condition; No Material Adverse Change. 

(a) The Company has previously delivered to the Bank copies of (i) its Form 10-K for the fiscal year ended December 31, 2011,
containing the audited consolidated balance sheet of the Company and its Subsidiaries and the related audited consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows for the fiscal year ending
December 31, 2011 (including with the applicable notes and schedules, the “Company Financial Statements”), and (ii) the unaudited consolidated balance sheet of the Company and its Subsidiaries and the related unaudited
consolidated statements of income, equity and cash flows for the fiscal year-to-date period ending March 31, 2012. All such financial statements have been prepared in accordance with GAAP and fairly present in all material respects the
consolidated financial condition and results of operation of the Company and its Subsidiaries as of the dates and for the periods indicated therein (subject, in the case of unaudited financial statements, to the absence of footnotes and to normal,
year end audit adjustments). 
 (b) Since December 31, 2011, there has been no Material Adverse Change. 

3.5. Litigation. There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against
or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary (a) that, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (b) that involve this Agreement, any
Related Document or the Transactions. 
 3.6. Environmental Matters. The Company and its Subsidiaries (a) are in
compliance with all applicable Environmental Laws, (b) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses, and (c) are in compliance with all
of the terms and conditions of any such permit, license or approval, except, in each case, such as could not reasonable be expected to have a Material Adverse Effect. 
 3.7. Investment Company Status. Neither the Company nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company” as defined in,
or is otherwise subject to regulation under, the Investment Company Act of 1940. 
 3.8. ERISA. Each of the Company and
its ERISA Affiliates is in compliance in all material respects with the applicable provisions of ERISA and the Code except for any such failure that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

 3.9. Disclosure. None of the reports, financial statements, certificates or other information furnished by or on
behalf of the Company or any Subsidiary to the Bank in connection with the negotiation of, or delivered under, this Agreement or any Related Document contains any material misstatement of fact or omits to state any material fact necessary to make
the statements therein not misleading. 
 3.10. Subsidiaries. As of the date hereof, the Company has only the
Subsidiaries set forth on Schedule 3.10. Schedule 3.10 sets forth with respect to each Subsidiary, the identity of each Person that owns Equity Interests in such Subsidiary and the percentage of the issued and outstanding Equity
Interests owned by each such Person. The shares of each Subsidiary are duly authorized, validly issued, fully paid and non assessable and are owned free and clear of any Liens, other than Liens permitted pursuant to Section 6.1. 

3.11. Use of Proceeds; Federal Reserve Requirements. 
 (a) The proceeds of the Loans will be used for general corporate purposes not inconsistent with the terms hereof, including liquidity support for the Company’s commercial paper program,
provided that the outstanding principal amount of commercial paper issued by the Company shall not exceed at any one time the aggregate amount of $70,000,000. 
 (b) Neither the Company nor any Subsidiary is engaged principally, or as one of their important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock.
Immediately before and after giving effect to the making of each Loan, Margin Stock will constitute less than twenty-five percent (25%) of the Company’s assets as determined in accordance with Regulation U of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof. 

  
 12 

 (c) No part of the proceeds of any Loan will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to purchase, acquire or carry any Margin Stock or for any purpose that entails a violation of, or that is inconsistent with, the provisions of the regulations of the Board, including Regulation T, U
or X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof. 
 SECTION
4 CONDITIONS PRECEDENT 
 4.1. Effectiveness. The obligations of the Bank to make the initial Loans hereunder are
subject to the satisfaction of the following conditions precedent: 
 (a) Credit Agreement. The Bank shall have received
from the Company a counterpart of this Agreement duly executed on behalf of the Company. 
 (b) Notes. The Bank shall
have received the Notes duly executed on behalf of the Company and payable to the order of the Bank. 
 (c) Organizational
Documents. The Bank shall have received such documents and certificates as the Bank or its counsel may reasonably request relating to (i) the organization, existence and good standing of the Company and the Guarantors (including
(x) articles of incorporation of the Company and the Guarantors, certified as of a recent date by the Secretary of State (or comparable official) of the jurisdiction of its incorporation, and (y) certificates of good standing (or
comparable certificates) for the Company and the Guarantors, certified as of a recent date by the Secretaries of State (or comparable official) of the jurisdiction of its incorporation and each other jurisdiction in which it is qualified to do
business, (ii) the authorization of the Transactions, (iii) the incumbency of its officer or officers who may sign this Agreement and the Related Documents, including therein a specimen signature of such officer or officers, and
(iv) any other legal matters relating to the Company, the Guarantors, this Agreement, the Related Documents or the Transactions, all in form and substance satisfactory to the Bank and its counsel. 

(d) Officer’s Certificate. The Bank shall have received a certificate, in form and substance satisfactory to the Bank, dated
on or prior to the Effective Date and signed by the chief executive officer or chief financial officer of the Company (or other Financial Officer acceptable to the Bank), confirming (i) the representations and warranties of the Company set
forth in this Agreement and the Related Documents are true and correct and (ii) no Default or Event of Default exists. 

(e) Material Adverse Change. The Bank shall have received a certificate of a Financial Officer, in form and substance
satisfactory to the Bank, dated the Effective Date, to the effect that since December 31, 2011, no Material Adverse Change has occurred. 
 (f) Other Documents. The Bank shall have received such other documents has the Bank or its counsel may have reasonably requested. 

4.2. Subsequent Obligations. The obligations of the Bank to make any Loan is subject to the satisfaction of the following
conditions: 
 (a) The representations and warranties of the Company set forth in this Agreement and the Related
Documents shall be true and correct on and as of the date of such Loan, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and
correct on and as of such earlier date. 
 (b) At the time of and immediately after giving effect to the Loan, no
Default or Event of Default shall have occurred and be continuing. 
 (c) The Bank shall have received a Loan
Request and such other documentation and assurances as shall be reasonably required by it in connection herewith. 
 (d) Such Loan shall not be prohibited by any applicable law, rule or regulation. 
 Each request
for a Loan shall be deemed to constitute a representation and warranty by the Company on the date thereof as to the matters specified in clauses (a) and (b) of this Section 4.2. 

  
 13 

 SECTION 5 AFFIRMATIVE COVENANTS 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees and other amounts
payable under this Agreement and the Related Documents shall have been paid in full, the Company covenants and agrees with the Bank that: 
 5.1. Financial Statements and Other Information. The Company will furnish to the Bank: 
 (a) as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year, (i) a copy of the Company’s Annual Report on Form 10-K in respect of such
fiscal year required to be filed by the Company with the SEC, together with the financial statements attached thereto, and (ii) the Company’s audited consolidated balance sheet and related consolidated statements of income,
stockholder’s equity and cash flows as of the end of and for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by the Company’s independent certified public
accounting firm acceptable to the Bank (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results of operations of the Company and the Subsidiaries on a consolidated basis in accordance with GAAP consistently applied during such fiscal year; 

(b) as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter of each fiscal year
(120 days with respect to the last fiscal quarter of the fiscal year), (i) a copy of the Company’s Quarterly Report on Form 10-Q (other than with respect to the last fiscal quarter of the fiscal year), together with the financial
statements attached thereto, and (ii) the Company’s unaudited consolidated balance sheet and related consolidated statements of income, stockholder’s equity and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods (or, in the case of the balance sheet, as of the end of) the previous fiscal year and together with the budgeted
figures for such date and period, all certified by a duly authorized Financial Officer as presenting fairly in all material respects the financial condition and results of operations of the Company and the Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year end audit adjustments and the absence of footnotes; 
 (c)
within forty-five (45) days after the end of each fiscal quarter of each fiscal year (120 days with respect to the last fiscal quarter of the fiscal year), a Compliance Certificate, signed by a Financial Officer (or such other officer as shall
be acceptable to the Bank) as to (i) the Company’s compliance, as of such fiscal quarter ending date, with Section 6.7, (ii) the absence of any Default or Event of Default as of such fiscal quarter ending date and the date of
such certificate (or if a Default or Event of Default existed or exists, the nature thereof), and (iii) a calculation of the ratio of Consolidated Senior Funded Indebtedness to Consolidated EBITDA for purposes of calculating the Applicable
Margin; 
 (d) within forty-five (45) days after the end of each fiscal quarter of each fiscal year, a commercial paper
back-up certificate, signed by a Financial Officer (or such other officer as shall be acceptable to the Bank), in form and substance acceptable to the Bank; and 
 (e) promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Company or any Subsidiary, or compliance with the terms of
this Agreement and the Relate Documents, as the Bank may reasonably request. 
 5.2. Notices of Material Events. The
Company will furnish the following to the Bank: 
 (a) prompt written notice of the occurrence of any Default or Event of
Default, specifying the nature thereof and any action taken or proposed to be taken with respect thereto; 
 (b) prompt written
notice of any citation, summons, subpoena, order, notice, claim or proceeding received by, or brought against, the Company or any of its Subsidiaries which could, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect; 
 (c) prompt written notice of any Material Adverse Change; 

  
 14 

 (d) prompt written notice of any Change in Control or of any change in the positions of the
chief executive officer, chief financial officer or chief accounting officer; and 
 (e) promptly upon becoming available,
copies of all regular, periodic or special reports, schedule and other material which the Company or any of its Subsidiaries may be required to file with or deliver to any securities exchange or the SEC, or any other Governmental Authority
succeeding to the functions thereof. 
 Each notice delivered under Section 5.2(a) or (b) shall be accompanied by a statement of a
Financial Officer or other executive officer of the Company setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

5.3. Legal Existence. The Company shall maintain its legal existence in good standing in the jurisdiction of its organization or
formation and in each other jurisdiction in which the failure to do so could reasonably be expected to have a Material Adverse Effect, and shall cause each of the Subsidiaries to maintain its legal existence in good standing in the jurisdiction of
its organization or formation and in each other jurisdiction in which the failure to do so could reasonably be expected to have a Material Adverse Effect. 
 5.4. Taxes. The Company shall pay and discharge when due, and cause each of the Subsidiaries to pay and discharge when due, all Taxes imposed upon it or its property, which if unpaid could,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or become a Lien on the property of the Company or such Subsidiary (other than a Lien described in clause (a) of the definition of Permitted
Encumbrances), as the case may be, unless and to the extent only that such Taxes shall be contested in good faith and by appropriate proceedings diligently conducted by the Company or such Subsidiary, as the case may be, and with respect to which
adequate reserves have been set aside in accordance with GAAP. 
 5.6. Insurance. The Company shall maintain, and shall
cause each of its Subsidiaries to maintain, with financially sound and reputable insurance companies insurance on all its property in at least such amounts and against at least such risks as are usually insured against in the same general area by
companies engaged in the same or similar business. The Company will furnish to the Bank upon request full information as to the insurance carried. 
 5.7. Condition of Property. The Company shall at all times maintain, protect and keep, and shall cause each of its Subsidiaries to at all time maintain, protect and keep, in good repair, working
order and condition (ordinary wear and tear excepted) all material property necessary for the operation of the Company’s or such Subsidiary’s, as the case may be, business. 

5.8. Observance of Legal Requirements. The Company shall observe and comply in all material respects, and shall cause each of its
Subsidiaries to observe and comply in all material respects, with all laws, regulations and orders of any Governmental Authority which now or at any time hereafter may be applicable to it, including ERISA and all Environmental Laws, a violation of
which could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 5.9.
Inspection. The Company shall keep proper books of record and account in conformity with GAAP and all requirements of law. The Company shall permit representatives of the Bank to visit its offices, to inspect any of its property and examine
and make copies or abstracts from any of its books and records at any reasonable time and as often as may be desired, and to discuss the business, operations, prospects, property and financial condition of the Company and its Subsidiaries with the
officers thereof and the Company’s independent certified public accountants. 
 SECTION 6 NEGATIVE COVENANTS

 Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees and other
amounts payable under this Agreement and the Related Documents shall have been paid in full, the Company covenants and agrees with the Bank that: 
 6.1. Liens. The Company shall not, and shall not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, whether now owned or hereafter acquired,
except (a) Liens now existing or hereafter arising in favor of the Bank; (b) Permitted Liens; and (c) Liens existing on the date hereof and described in Schedule 6.1, provided that the Indebtedness secured thereby shall
not be renewed, extended or increased. 

  
 15 

 6.2. Indebtedness. The Company shall not, and shall not permit any Subsidiary to,
create, incur or suffer to exist any Indebtedness, except (a) the Loans; (b) Indebtedness existing on the date hereof and described in Schedule 6.2, including any renewals and extensions thereof, provided that any such renewal or
extension does not increase the principal amount thereof; (c) Indebtedness arising under Rate Management Transactions; (d) current accounts payable arising in the ordinary course of business which are not more than ninety (90) days
overdue, unless being contested in good faith and with due diligence; (e) Indebtedness of any Subsidiary to the Company or to another Subsidiary; (f) Capital Lease Obligations not to exceed at any time $10,000,000 in aggregate principal
amount; (g) other unsecured Indebtedness not to exceed at any time $15,000,000 in an aggregate principal amount; and (h) principal amounts of commercial paper issued by the Company. 

6.3. Guaranties. Guaranty or otherwise in any way become or be responsible for obligations of any other Person, directly or
indirectly, whether by an agreement to purchase the indebtedness of any other Person, or agreement for the furnishing of funds to any other Person through the purchase of goods, supplies or services (or by way of stock purchase, capital contribution
advanced or loaned) for the purpose of paying or discharging the indebtedness of any Person, or otherwise, except for the endorsement of negotiable instruments by the Company or a Subsidiary for deposit or collection or similar transactions in the
ordinary course of business. 
 6.4. Merger; Consolidation. The Company shall not, and shall not permit any Subsidiary
to, consolidate with or merge into any other Person, other than (i) a merger of a Subsidiary into, or a consolidation of a Subsidiary with, the Company or another Subsidiary, and (ii) a merger of another Person into, or a consolidation of
another Person with, the Company, provided that the Company is the surviving corporation and the aggregate consideration paid by the Company in connection with such transaction does not exceed $20,000,000. 

6.5. Sale of Assets. The Company shall not, and shall not permit any Subsidiary to, lease, sell or otherwise dispose of its
property to any other Person, except (a) sales of inventory in the ordinary course of business, and (b) leases, sales or other dispositions of property that, together with all other property of the Company and its Subsidiaries previously
leased, sold or disposed of (other than inventory in the ordinary course of business) as permitted by this Section during the twelve-month period ending with the month in which any such lease, sale or other disposition occurs, do not constitute a
material portion of the property of the Company and its Subsidiaries. 
 6.6. Transactions with Affiliates. The Company
shall not, and shall not permit any of its Subsidiaries to sell, transfer, lease or otherwise dispose of (including pursuant to a merger) any property or assets to, or purchase, lease or otherwise acquire (including pursuant to a merger) any
property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except in the ordinary course of business at prices and on terms and conditions not less materially favorable to the Company or such Subsidiary, as
the case may be, than could be obtained on an arms length basis from unrelated third parties. 
 6.7. Financial
Covenant. The Company shall not permit the ratio, determined as of the end of each of its fiscal quarters commencing June 30, 2012, of (a) Consolidated Funded Indebtedness to (b) Consolidated EBITDA for the then most-recently
ended four (4) fiscal quarters to be greater than (i) 2.50:1:00 for the four (4) fiscal quarters ending June 30 and September 30, 2012, (ii) 2.25:1.00 for the four (4) fiscal quarters ending December 31,
2012, March 31, June 30 and September 30, 2013, and (iii) 2.00:1.00 for the four (4) fiscal quarters ending December 31, 2013 and each four (4) fiscal quarters thereafter. 

6.8. Fiscal Year. The Company shall not change its fiscal year. 

SECTION 7 DEFAULT AND REMEDIES 
 7.1. Events of Default Defined. Any one or more of the following shall constitute an “Event of Default”: 
 (a) the Company shall fail to pay any interest on any Loan or principal of any Loan when the same shall become due and payable; 

  
 16 

 (b) the Company shall fail to pay any fee, commission or other amount payable under this
Agreement or any Related Document when the same shall become due and payable and such failure shall continue unremedied for a period of five (5) days; 
 (c) any representation or warranty made or deemed made by or on behalf of the Company or any Subsidiary in or in connection with this Agreement or any Related Document or any amendment or modification
hereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any Related Document or any amendment or modification hereof or waiver
hereunder or thereunder, shall prove to have been incorrect in any material respect when made or deemed made; 
 (d) the
Company shall fail to perform or observe any covenant, condition or agreement contained in this Agreement or any Related Document to which it is a party; 
 (e) the Company or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect to any material Indebtedness, when and as the same shall become due
and payable and after the expiration of any applicable grace period; 
 (f) any event or condition occurs that results in any
material Indebtedness becoming due prior to its scheduled maturity or payment date, or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any material Indebtedness or any trustee or
agent on its or their behalf to cause such material Indebtedness to become due prior to their scheduled maturity or payment date or to require the prepayment, repurchase, redemption or defeasance thereof prior to their scheduled maturity or payment
date (in each case after giving effect to any applicable cure period); 
 (g) the Company or any Subsidiary shall
(i) suspend or discontinue its business, (ii) make an assignment for the benefit of creditors, (iii) generally not pay its debts as such debts become due, (iv) admit in writing its inability to pay its debts as they become due,
(v) file a voluntary petition in bankruptcy, (vi) become insolvent (however such insolvency shall be evidenced), (vii) file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment of debt,
liquidation or dissolution or similar relief under any present or future statute, law or regulation of any jurisdiction, (viii) petition or apply to any tribunal for any receiver, custodian or any trustee for any substantial part of its
property, (ix) be the subject of any such proceeding filed against it which remains undismissed for a period of forty-five (45) days, (x) file any answer admitting or not contesting the material allegations of any such petition filed
against it or any order, judgment or decree approving such petition in any such proceeding, (xi) seek, approve, consent to, or acquiesce in any such proceeding, or in the appointment of any trustee, receiver, sequestrator, custodian,
liquidator, or fiscal agent for it, or any substantial part of its property, or an order is entered appointing any such trustee, receiver, custodian, liquidator or fiscal agent and such order remains in effect for forty-five (45) days, or
(xii) take any formal action for the purpose of effecting any of the foregoing or looking to the liquidation or dissolution of the Company or any Subsidiary; 
 (h) an order for relief is entered under the United States bankruptcy laws or any other decree or order is entered by a court having jurisdiction (i) adjudging the Company or any Subsidiary bankrupt
or insolvent, (ii) approving as properly filed a petition seeking reorganization, liquidation, arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under the United States bankruptcy laws or any other
applicable Federal or state law, (iii) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company or any Subsidiary of any substantial part of the property thereof, or
(iv) ordering the winding up or liquidation (other than, in the case of a Subsidiary, voluntary liquidation, not under any bankruptcy, insolvency or similar law) of the affairs of the Company or any Subsidiary, and any such decree or order
continues unstayed and in effect for a period of forty-five (45) days; 
 (i) one or more judgments or decrees against the
Company or any of its Subsidiaries or any combination thereof aggregating in excess of $10,000,000, which judgment or decree (i) shall not be fully covered by insurance after taking into account any applicable deductibles, and (ii) shall
remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of at least thirty (30) consecutive days; 
 (j) this Agreement or any Related Document shall cease, for any reason, to be in full force and effect of the Company or any Guarantor shall so assert in writing or shall disavow any of its obligations
hereunder or thereunder; 

  
 17 

 (k) an ERISA Event shall have occurred that, in the opinion of the Bank, when taken
together with all other ERISA Events that have occurred, could reasonably be expected to have a Material Adverse Effect; 
 (l)
The occurrence of any “default”, as defined in any Related Document (other than this Agreement) or the breach of any of the terms or provisions of any Related Document (other than this Agreement), which default or breach continues beyond
any period of grace therein provided; 
 (m) and authorization of approval or other action by any Governmental Authority
required for the execution, delivery or performance of this Agreement or any Related Document shall be terminated, revoked or rescinded or shall otherwise no longer be in full force and effect; or 

(n) a Change in Control shall occur. 
 7.2. Remedies Upon Event of Default. Upon the occurrence and continuance of an Event of Default: 
 (a) specified in clauses (g) or (h) of Section 7.1, then, without presentment, notice, demand or action of any kind by the Bank, all of which are hereby waived: (i) the Commitments and
the obligations of the Bank to make or incur any Obligations shall automatically and immediately terminate; and (ii) the entire amount of the Obligations shall be automatically accelerated and immediately due and payable; 

(b) specified in any clause of Section 7.1 other than (g) or (h), the Bank may, without presentment, notice, demand or action
of any kind, all of which are hereby waived: (i) immediately terminate the Bank’s obligation to make or incur any Obligations, and the same shall immediately terminate; and (ii) declare the entire amount of the Obligations immediately
accelerated, due and payable; 
 (c) the Company shall immediately deposit with the Bank an amount equal to the undrawn face
amount of all outstanding letters of credit, if any, issued by the Bank to pay all amounts which may thereafter be drawn under such letters of credit; 
 (d) the Bank may at any time without prior notice or demand set off against any credit balance or other money now or hereafter owed the Company by the Bank all or any part of the Company’s
obligations hereunder. The Company hereby grants to the Bank a security interest in and Lien on any such credit balance or other money; and 
 (e) the Bank shall have all of the rights and remedies provided to the Bank by this Agreement and the other Related Documents, and all rights and remedies provided by law and in equity, by statute or
otherwise, and no remedy herein conferred upon the Bank is intended to be exclusive of any other right and remedy and each right and remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing at law, in equity, by statute or otherwise. In addition to and not in lieu of any other right or remedy the Bank might have, the Bank at any time and from time to time at its election may (but shall not be required to) do or perform or
comply with or cause to be done or performed or complied with anything which the Company may be required to do, perform or comply with and the Company shall reimburse the Bank upon demand for any cost or expense which the Bank may incur in such
respect, together with interest thereon at the rate equal to the rate payable under the Notes following an Event of Default from the date of such demand until paid. No failure or delay on the part of the Bank in exercising any right or remedy
hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any right hereunder preclude any further exercise thereof or the exercise of any other right or remedy. 

SECTION 8 MISCELLANEOUS 
 8.1. Right of Set-off. If an Event of Default shall have occurred and be continuing, the Bank and its Affiliates is hereby authorized at any time and from time to time, to the fullest extent
permitted by applicable law, to set-off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by it to or for the credit or the account of the Company
against any of and all the Obligations of the Company now or hereafter existing under this Agreement and the Related Documents held by it, irrespective of whether or not it shall have made any demand therefor and although such obligations may be
unmatured. The rights of the Bank and its Affiliates under this Section are in addition to other rights and remedies (including other rights of set-off) that it may have. 

  
 18 

 8.2. Expenses; Indemnity. 

(a) The Company shall pay (i) all reasonable out-of-pocket costs and expenses incurred by the Bank and its Affiliates, including
the reasonable fees, charges and disbursements of counsel for the Bank, in connection with the preparation and administration of this Agreement and each Related Document or any amendments, modifications or waivers of the provisions thereof (whether
or not the transactions contemplated thereby shall be consummated), (ii) all reasonable out-of-pocket costs and expenses incurred by the Bank in connection with the issuance, amendment, renewal or extension of any letter of credit or any demand
for payment hereunder or thereunder, and (iii) all reasonable out-of-pocket costs and expenses incurred by the Bank, including the reasonable fees, charges and disbursements of any counsel for the Bank and any consultant or expert witness fees
and expenses, in connection with the enforcement or protection of its rights in connection with this Agreement and the Related Documents, including its rights under this Section, or in connection with the Loans made hereunder, including all such
reasonable out-of-pocket costs and expenses incurred during any workout, restructuring or negotiations in respect of such Loans. 
 (b) The Company shall indemnify the Bank and its Affiliates, directors, officers, employees, agents and advisors and their respective Affiliates (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement and any Related Document or any agreement or instrument contemplated thereby, the performance
by the parties to this Agreement or the Related Documents of their respective obligations hereunder or thereunder or the consummation of the Transactions or any other transactions contemplated thereby, (ii) any Loan or the use of the proceeds
thereof, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Company or any of the Subsidiaries, or any environmental liability related in any way to the Company or any of the
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto,
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. 
 (c) To the extent permitted by
applicable law, the Company shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct and actual damages) arising out of, in
connection with, or as a result of, this Agreement or any Related Document or any agreement, instrument or other document contemplated thereby, the Transactions or any Loan or the use of the proceeds thereof. 

8.3. Assignability; Successors. The provisions of this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of the parties hereto. The Company’s rights and liabilities under this Agreement and the Related Documents are not assignable in whole or in part without the prior written consent of the Bank. The Bank may at any time
without the consent of the Company sell, assign or transfer, in whole or in part, to one or more banks or other entities other than any competitor of the Company (“Participants”) interests in any Note held by the Bank or any other
interest of the Bank in the Obligations. The Company authorizes the Bank to disclose to any Participant or prospective Participant any and all financial information in the Bank’s possession concerning the Company and its Affiliates which has
been delivered to the Bank by or on behalf of the Company. The Company agrees that upon the occurrence of any Event of Default each Participant shall be deemed to have the right of setoff in respect of its participating interest in the Obligations
to the same extent as if the amount of its participating interest were owing directly to it as the Bank under this Agreement. 

8.4. Survival. All agreements, covenants, representations and warranties made herein and in the Related Documents shall survive
the execution and delivery of this Agreement and the Related Documents, the making of the Obligations and the termination of this Agreement. 
 8.5. Governing Law. This Agreement and the Related Documents shall be governed by the internal laws of the State of Wisconsin. The parties hereto acknowledge that this Agreement and the Related
Documents were all negotiated with the assistance of counsel and, accordingly, such laws shall be applied without reference to any rules of construction regarding the draftsman hereof. 

  
 19 

 8.6. Counterparts; Headings. This Agreement may be executed in several counterparts,
each of which shall be deemed an original, but such counterparts shall together constitute but one and the same agreement. The descriptive headings in this Agreement are inserted for convenience of reference only and shall not affect the
construction of this Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or persons may require. 

8.7. Entire Agreement; Amendments. This Agreement, the Exhibits and Schedules attached hereto, and the Related Documents contain
the entire understanding of the parties with respect to the subject matter hereof, and supersede all other understandings, oral or written, with respect to the subject matter hereof. No amendment, modification, alteration, or waiver of the terms of
this Agreement or consent required under the terms of this Agreement shall be effective unless made in a writing, which makes specific reference to this Agreement and which has been signed by the party against which enforcement thereof is sought.
Any such amendment, modification, alteration, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
 8.8. Notices. All communications or notices required or permitted by this Agreement shall be in writing and shall be deemed to have been given or made when delivered in hand, deposited in the mail,
or sent by facsimile. Communications or notices shall be delivered personally or by certified or registered mail, postage prepaid, or by facsimile and addressed as follows, unless and until either of such parties notifies the other in accordance
with this section of a change of address: 
  

							
	If to the Company:	 		  	Badger Meter, Inc.
		 	4545 W. Brown Deer Road
		 	Milwaukee, Wisconsin 53223-2413
		 	Attention: Richard E. Johnson
		 	Facsimile: (262) 371-5956
				
	If to the Bank:	 		 		  	BMO Harris Bank N.A.
		 	770 North Water Street
		 	Milwaukee, Wisconsin 53202
		 	Attention: David C. Doran
		 	Facsimile: (414) 765-7670

 8.9. Severability. Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 8.10. Further
Assurances. The Company agrees to do such further acts and things, and to execute and deliver such additional conveyances, assignments, agreements and instruments, as the Bank may at any time request in connection with the administration or
enforcement of this Agreement or the Related Documents or in order better to assure and confirm unto the Bank its rights, powers and remedies hereunder. 
 8.11. Conflicts and Ambiguities. In the event of any ambiguity or conflict as between the terms of this Agreement, the Related Documents or any other document executed and delivered pursuant to
this Agreement, the terms of this Agreement shall control. 
 8.12. Submission to Jurisdiction. The Bank may enforce any
claim arising out of this Agreement or the Related Documents in any state or federal court having subject matter jurisdiction and located in Milwaukee, Wisconsin. For the purpose of any action or proceeding instituted with respect to any such claim,
the Company hereby irrevocably submits to the jurisdiction of such courts. The Company irrevocably consents to the service of process out of said courts by mailing a copy thereof, by registered mail, postage prepaid, to the Company and agrees that
such service, to the fullest extent permitted by law (a) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding, and (b) shall be taken and held to be valid personal service upon
personal delivery to it. Nothing herein contained shall affect the right of the Bank to serve process in any other manner permitted by law or preclude the Bank from bringing an action or proceeding in respect hereof in any other country, state or
place having jurisdiction over such action. The Company hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in
any court located in Milwaukee, Wisconsin and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. 

  
 20 

 8.13. WAIVER OF JURY TRIAL. EACH PARTY HERETO KNOWINGLY, VOLUNTARILY AND WITHOUT
COERCION, WAIVES ALL RIGHTS TO A TRIAL BY JURY OF ALL DISPUTES ARISING OUT OF OR IN RELATION TO (A) THIS AGREEMENT OR ANY RELATED DOCUMENT TO WHICH IT IS A PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY
IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH, (B) ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR AND ANY RELATED DOCUMENT, OR (C) ANY ACT, CONDUCT OR OMISSION IN CONNECTION WITH THIS AGREEMENT, THE
RELATED DOCUMENTS OR ANY RELATIONSHIP CREATED THEREBY, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 
 8.14. USA Patriot Act; Office of Foreign Assets Control. The Bank hereby notifies the Company and each of its Subsidiaries that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Company and each of its Subsidiaries, which information includes the name and
address of the Company and each of its Subsidiaries and other information that will allow the Bank to identify the Company and each of its Subsidiaries in accordance with the Patriot Act and the Company agrees to provide such information. In
addition, and without limiting the foregoing sentence, the Company shall (a) ensure, and cause each Subsidiary to ensure, that no Person who owns a controlling interest in or otherwise controls the Company or any Subsidiary is or shall be
listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders,
(b) not use or permit the use of the proceeds of the Obligations to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c) comply, and cause each Subsidiary to
comply, with all applicable Bank Secrecy Act laws and regulations, as amended. 
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the day and year first above written. 
  

			
	BADGER METER, INC.
		
	By:	 	 /s/ Richard A. Meeusen

	Name:	 	 Richard A. Meeusen

	Title:	 	 Chairman, President & CEO

		
	By:	 	 /s/ Richard E. Johnson

	Name:	 	 Richard E. Johnson

	Title:	 	 Sr. VP-Finance, CFO & Treasurer

	
	BMO HARRIS BANK N.A.
		
	By:	 	 /s/ David C. Doran

	Name:	 	 David C. Doran

	Title:	 	 Senior Vice President

		
	By:	 	 /s/ Cassie Bisgrove

	Name:	 	 Cassie Bisgrove

	Title:	 	 Assistant Vice President

  
 21 

 EXHIBIT A 
 Form of Revolving Note 
 REVOLVING NOTE 

 

			
	U.S. $120,000,000.00	  	May 23, 2012        

 FOR VALUE RECEIVED, the undersigned, BADGER METER, INC., a Wisconsin corporation (the
“Company”), hereby promises to pay to BMO HARRIS BANK N.A. (the “Bank”) or its assigns, on the Termination Date for Revolving Loans under the Credit Agreement hereinafter defined, at the principal office of the Bank
in Milwaukee, Wisconsin (or such other location as the Bank may designate to the Company), in immediately available funds, the principal sum of One Hundred Twenty Million Dollars ($120,000.000.00) or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by the Bank to the Company pursuant to the Credit Agreement, together with interest on the principal amount of each Revolving Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the
dates, specified in the Credit Agreement. 
 This Note is the Revolving Credit Note referred to in the Credit Agreement dated as
of May 23, 2012, by and between the Company and the Bank (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), and this Note and the holder hereof are entitled to all the benefits and security
provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein, shall have the same meaning as in the Credit
Agreement. This Note shall be governed by and construed in accordance with the internal laws of the State of Wisconsin. 

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to
the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement. 
 The
Company hereby waives demand, presentment, protest or notice of any kind hereunder. 
 Signature Page to Revolving Note

  

			
	BADGER METER, INC.
		
	By	 	 /s/ Richard A. Meeusen

		 	Name: Richard A. Meeusen
		 	Title: Chairman, President & CEO
		
	By	 	 /s/ Richard E. Johnson

		 	Name: Richard E. Johnson
		 	Title: Sr. Vice President, CFO & Treasurer

  
 22 

 EXHIBIT B 
 Form of Foreign Currency Revolving Note 
 FOREIGN CURRENCY REVOLVING NOTE

  

			
	U.S. $5,000,000.00	  	May 23, 2012        

 FOR VALUE RECEIVED, the undersigned, BADGER METER, INC., a Wisconsin corporation (the
“Company”), hereby promises to pay to BMO HARRIS BANK N.A. (the “Bank”) or its assigns, on the Termination Date for Foreign Currency Revolving Loans under the Credit Agreement hereinafter defined, at the principal
office of the Bank in Milwaukee, Wisconsin (or such other location as the Bank may designate to the Company), in immediately available funds, the principal sum of Five Million Dollars ($5,000.000.00) or, if less, the aggregate unpaid principal
amount of all Foreign Currency Revolving Loans made by the Bank to the Company pursuant to the Credit Agreement, together with interest on the principal amount of each Foreign Currency Revolving Loan from time to time outstanding hereunder at the
rates, and payable in the manner and on the dates, specified in the Credit Agreement. 
 This Note is the Foreign Currency
Revolving Credit Note referred to in the Credit Agreement dated as of May 23, 2012, by and between the Company and the Bank (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), and this Note
and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise
defined herein, shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed in accordance with the internal laws of the State of Wisconsin. 

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to
the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement. 
 The
Company hereby waives demand, presentment, protest or notice of any kind hereunder. 
 Signature Page to Foreign Currency
Revolving Note 
  

			
	BADGER METER, INC.
		
	By	 	 /s/ Richard A. Meeusen

		 	Name: Richard A. Meeusen
		 	Title: Chairman, President & CEO
		
	By	 	 /s/ Richard E. Johnson

		 	Name: Richard E. Johnson
		 	Title: Sr. Vice President, CFO & Treasurer

 EXHIBIT C 
 Form of Guaranty 
 GUARANTY 

(Subsidiary) 

THIS GUARANTY (this “Guaranty”), dated as of May 23, 2012, is made by the undersigned guarantor (the
“Guarantor”), in favor of BMO HARRIS BANK N.A. (the “Bank”). 
 R E C I T A L S: 

Reference is hereby made to the Credit Agreement, dated as of May 23, 2012 (as amended, supplemented, or otherwise modified from
time to time, the “Credit Agreement”), by and between Badger Meter, Inc., a Wisconsin corporation (the “Company”), and the Bank. Terms used herein as defined terms and not otherwise defined herein shall have the meanings given
thereto in the Credit Agreement. 
 The Bank has agreed to make Loans to the Company, pursuant to, and upon the terms and
subject to the conditions specified in, the Credit Agreement. The obligations of the Bank to make Loans are conditioned on, among other things, the execution and delivery by the Guarantor of an agreement in the form hereof. 

The Guarantor, by its signature below, represents and warrants that it shall derive benefits from the extensions of credit to the Company
under the Credit Agreement. 

  
 23 

 NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby agrees in favor of the Bank as follows: 
 1. Certain Definitions; Terms. References to this “Guaranty” shall be to this Guaranty as amended, supplemented, or otherwise modified from time to time in accordance with the terms of
this Guaranty. References herein to a “guarantor” shall include the Guarantor hereunder and any other Person that is a guarantor of any or all of the Obligations and references to a “guaranty” shall include this Guaranty and any
other guaranty of any or all of the Obligations by any other Person. 
 2. Guarantee. 

(a) The Guarantor hereby unconditionally, absolutely, and irrevocably guarantees to the Bank, as a primary obligor and not merely as a
surety, the due and punctual payment and performance in full of the Obligations, in each case strictly in accordance with the terms thereof. In furtherance of the foregoing and not in limitation of any other right that the Bank may have at law or in
equity against the Guarantor by virtue hereof, the Guarantor agrees that upon failure of the Company to pay any Obligations when and as the same shall become due, whether at maturity, by acceleration, on one or more dates on which prepayment or
repayment is required, or otherwise, the Guarantor will, without any demand or notice whatsoever, forthwith pay or cause to be paid to the Bank, in cash in immediately available funds, an amount equal to the unpaid amount of such Obligations. The
Guarantor further agrees that the Obligations guaranteed by it hereunder may be increased in amount, extended or renewed, or otherwise amended or modified in any respect, including as to principal, scheduled repayment, prepayment, interest, fees,
indemnification, compensation, and in any other respect whatsoever, in whole or in part, without notice or further assent from it, and that it will remain bound upon this guarantee in respect of such Obligations as so increased, extended, renewed,
amended or modified. Payments by the Guarantor hereunder may be required on any number of occasions. 
 (b) The Guarantor waives
presentment or presentation to, demand for payment from and protest to the Company or any other guarantor, and also waives notice of acceptance of its guarantee, notice of protest for nonpayment, and notice of the existence, creation or incurrence
of new or additional Obligations. The obligations of the Guarantor hereunder shall not be affected by (i) the failure of the Bank to assert any claim or demand or to enforce any right or remedy against the Company or any other guarantor or any
other Person under the provisions of the Credit Agreement or any Related Document or any other agreement or otherwise, (ii) any rescission, waiver, forbearance, compromise, acceleration, amendment or modification of, or any release of any party
from any of the terms or provisions of this Guaranty, the Credit Agreement, any other Related Document, any Obligation or any other guarantee or any security interest in respect of the Obligations (including, without limitation, in respect of the
Company or any other guarantor), (iii) any lack of validity or enforceability of the Credit Agreement or any of the Related Documents, (iv) any change in respect of the Company or any other guarantor, including, without limitation, as a
result of any sale of assets, merger, consolidation, dissolution, liquidation, recapitalization, or other change of legal form or status, whether or not permitted under the Credit Agreement or the Related Documents, (v) the release, exchange,
waiver or foreclosure of any security held by the Bank for any Obligations or the invalidity of the guarantee hereunder or the invalidity or nonperfection of any security interest securing the Obligations or the guarantee hereunder, or any other
defect of any kind pertaining to any Obligations or any guarantee or collateral security in respect thereof, (vi) the failure of the Bank to exercise any right or remedy in respect of any collateral security for any Obligations or against the
Company or any other guarantor, (vii) the release or substitution of the Company or any guarantor or (viii) any other circumstance that might otherwise, but for this specific agreement of the Guarantor to the contrary, result in a
discharge of or the exoneration of the Guarantor hereunder, at law or in equity, it being the intent of the parties hereto that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.

 (c) The Guarantor agrees that this guarantee constitutes a guarantee of performance and of payment when due and not just of
collection, that it is a primary obligation of the Guarantor, and that the Guarantor waives any right to require that any resort be had by the Bank to any security held for this guarantee or for payment of any Obligations, or to any balance of any
deposit, account, or credit on the books of the Bank in favor of the Company or any other guarantor, or to any other Person or property. To the fullest extent permitted by law, the Guarantor hereby expressly waives any and all rights or defenses
arising by reason of (i) any “one action” or “anti-deficiency” law that would otherwise prevent the Bank from bringing any action, including any claim for a deficiency, or exercising any right or remedy (including any

  
 24 

 
right of set-off) against the Guarantor before or after the commencement or completion of any foreclosure action or sale of collateral, whether judicially, by exercise of power of sale or
otherwise, or (ii) any other law that in any other way would otherwise require any election of remedies by the Bank. 
 (d)
No demand hereunder or enforcement hereof against the Guarantor shall require any demand or enforcement against the Company or any other guarantor. 
 (e) The solicitation of, or the delivery by the Guarantor of, any confirmation or reaffirmation of this guarantee under any circumstance shall not give rise to any inference as to the continued
effectiveness of this guarantee in any other circumstance in which the confirmation or reaffirmation hereof has not been solicited or has not been delivered (whether or not solicited), and the obligations of the Guarantor hereunder shall continue in
effect as herein provided notwithstanding any solicitation or delivery of any confirmation or reaffirmation hereof, or failure to solicit or to deliver (whether or not solicited) any such confirmation or reaffirmation, under any circumstances.

 3. No Impairment of Guarantee. 
 (a) The obligations of the Guarantor hereunder shall remain absolute and unconditional and shall not be subject to any reduction, limitation, impairment or termination for any reason, including, without
limitation, any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set off, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or unenforceability of the
Obligations or of this guarantee (or any portion or provision thereof or hereof) or otherwise. Without limiting the generality of the foregoing, the Guarantor specifically agrees that it shall not be discharged or exonerated, nor shall its
obligations hereunder be limited or otherwise affected by the failure of the Bank to exercise any right, remedy, power, or privilege or to assert any claim or demand or to enforce any remedy under the Credit Agreement or any Related Document or
applicable law, including, without limitation, any failure by the Bank to set-off or release in whole or in part any balance of any deposit account or credit on its books in favor of the Company or any other guarantor, or by any waiver, consent,
extension, indulgence, modification, or other action or inaction in respect of any thereof, or by any default, failure or delay, willful or otherwise, in the performance of any Obligations, or by any change in the composition of the Bank, or by any
other act or thing or omission or delay to do any other act or thing, by any Person, that might in any manner or to any extent vary the risk of the Guarantor or that might but for the specific provisions hereof to the contrary otherwise operate as a
discharge or exoneration of the Guarantor, unless and until the Obligations are fully, finally and indefeasibly paid in cash. 

(b) The Guarantor agrees that this is an absolute and unconditional guarantee of payment and performance and no invalidity, illegality,
irregularity, unenforceability, voidability, avoidance, in a bankruptcy of the Company or any other guarantor or otherwise, of any of their contractual obligations or other subordination of all or any part of the Obligations, or of any security
therefor, guarantee thereof, or right of offset with respect thereto, or of this guarantee, or of any part of the Credit Agreement or any of the other Related Documents or any other document or agreement in connection with any thereof, nor any
regulation, order or ruling, or judicial or administrative directive of any kind, nor any election, in any proceeding instituted under the U.S. Bankruptcy Code, or any bankruptcy or insolvency statute of any jurisdiction, domestic or foreign, or the
application of any provision of the U.S. Bankruptcy Code, or any similar provision of the laws of any other jurisdiction, nor any borrowing or grant of a security interest by the Company or any other guarantor, as debtor in possession, under
Section 364 of the U.S. Bankruptcy Code, or similar provision of any other statute whether domestic or foreign, nor the disallowance, under Section 502 of the U.S. Bankruptcy Code, or similar provision of any other statute whether domestic
or foreign, of all or any portion of the Bank’s claims for payment of the Obligations, nor any change in the name, identity or structure of any obligor in respect of any of the Obligations, nor any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor, or any defense which the Company or any other guarantor could assert on the Obligations (including, without limitation, failure of consideration, breach of warranty, fraud,
payment, accord and satisfaction, strict foreclosure, statute of frauds, bankruptcy, statute of limitations, lender liability and usury) shall impair, be a defense to, or otherwise affect, this Guaranty. 

4. Security; Waiver. The Guarantor agrees that the Bank may (i) take and hold security for the payment of this guarantee
and/or the Obligations and exchange, enforce, waive and release or fail to perfect any such 

  
 25 

 
security, (ii) apply such security and direct the order or manner of sale thereof as it in its sole discretion may determine, and (iii) release or substitute any one or more endorsees,
other guarantors or other obligors or any collateral. The Bank may, at its election, foreclose on any security held by it by one or more judicial or non-judicial sales, or exercise any other right or remedy available to it against the Company or the
Guarantor, or any security, without affecting or impairing in any way the liability of the Guarantor hereunder except to the extent that the Obligations have been fully, finally and indefeasibly paid in cash. The Guarantor waives any defense arising
out of any such election even though such election operates to impair, reduce or extinguish any right of reimbursement, contribution or subrogation or other right or remedy of the Guarantor against the Company or any other guarantor, as the case may
be, or any security. 
 5. Continuation and Reinstatement, etc. The Guarantor agrees that the guarantee hereunder shall
continue to be effective or shall be reinstated, as the case may be, if at any time a payment, or any part thereof, in respect of any Obligation is rescinded or must otherwise be restored by the Bank upon the bankruptcy or reorganization of the
Company or any other guarantor, or otherwise. 
 6. Subordination. The payment of any amounts due with respect to any
indebtedness of the Company or any other guarantor now or hereafter owed to the Guarantor (whether voluntary or involuntary, absolute or contingent, liquidated or unliquidated, determined or undetermined and including, without limitation, any such
indebtedness arising by way of subrogation, reimbursement, restitution, indemnification, contribution or otherwise in respect of performance by the Guarantor hereunder) is hereby subordinated to the prior full, final, and indefeasible payment in
cash of all Obligations. If, notwithstanding the foregoing sentence, the Guarantor shall collect, enforce or receive any amounts in respect of such indebtedness, such amounts shall be collected, enforced and received by the Guarantor as trustee for
the Bank and be paid over to the Bank on account of and to be applied against the Obligations, without affecting in any manner the liability of the Guarantor under the other provisions of this Guaranty. 

7. Remedies. The Guarantor agrees that, as between the Guarantor and the Bank, the Obligations of the Company under the Credit
Agreement may be declared to be forthwith due and payable as provided in Section 7 of the Credit Agreement (and shall be deemed to have become automatically due and payable in the circumstances provided in Sections 7.1(g) and (h) of said
Section 7) for purposes of the guarantee hereunder notwithstanding any stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against the Company and that, in the
event of such declaration (or such obligations being deemed to have become automatically due and payable), such Obligations (whether or not due and payable by the Company) shall forthwith become due and payable by the Guarantor for purposes hereof.
The Guarantor agrees to pay all reasonable attorneys’ expenses and all other fees and expenses which may be incurred by the Bank in the enforcement of this Guaranty. 
 8. Continuing Guarantee. The guarantee hereunder is a continuing guarantee, and shall apply to all Obligations whenever arising. 

9. General Limitation on Guarantee. Any term or provision of this Guaranty to the contrary notwithstanding, the maximum aggregate
amount for which the Guarantor shall be liable under Section 2(a) hereof shall not exceed the maximum amount for which the Guarantor can be liable without rendering this Guaranty voidable, void, invalid or unenforceable under Section 548
of the U.S. Bankruptcy Code or any comparable provision of any statute or other applicable law whether domestic or foreign relating to fraudulent conveyance or fraudulent transfer (taking into account the principles of subrogation and contribution).

 10. Other Guarantors. This Guaranty shall remain the unconditional, absolute, and irrevocable obligation of the
Guarantor regardless of whether any other Person (i) becomes obligated as a guarantor in respect of the Obligations (whether or not the Credit Agreement requires that such Person be or become a guarantor) or (ii) fails to become or ceases
to be a party hereto or otherwise fails to become or ceases to be a guarantor of the Obligations (whether or not the Credit Agreement requires that such Person be or become a guarantor). One or more actions or proceedings may be brought against the
Guarantor to enforce this Guaranty regardless of whether any action or proceeding is brought against the Company or any other guarantor at any time. 
 11. Information. The Guarantor assumes all responsibility for being and keeping itself informed of the financial condition, assets and operations of the Company and the other guarantors, and of all
other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that the Guarantor assumes and incurs hereunder, and agrees that Bank does not have nor will have any duty to advise the
Guarantor of information regarding such circumstances or risks. 

  
 26 

 12. Covenants. The Guarantor hereby agrees to comply with each provision of the
Credit Agreement and the other Related Documents applicable to it. The Guarantor will pay dividends or make distributions as permitted in the Credit Agreement to the Company to the extent of funds legally available therefor, in sufficient amounts
and at sufficient times to enable the Company to have sufficient earnings and funds to satisfy its obligations under the Credit Agreement and the Related Documents. 
 13. Representation and Warranties. The Guarantor represents and warrants that all representations and warranties relating to it in the Credit Agreement and in the other Loan Documents are true and
correct. 
 14. Amendment; Waiver. No amendment or waiver of any provision of this Guaranty, nor consent to any departure
by the Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Bank. Any such amendment, waiver or consent shall be effective only in the specific instance and for the purpose for which given. No
notice to or demand on the Guarantor in any case shall entitle the Guarantor to any other or further notice or demand in the same, similar or other circumstances. No waiver by the Bank of any breach or default of or by the Guarantor under this
Guaranty shall be deemed a waiver of any other previous breach or default or any thereafter occurring. 
 15. Survival;
Severability. 
 (a) All covenants, agreements, representations and warranties made by the Guarantor herein and in the
certificates or other instruments prepared or delivered in connection with or pursuant to this Guaranty, the Credit Agreement or any other Related Document (i) shall be considered to have been relied upon by the Bank and shall survive the
making by the Bank of the Loans, regardless of any investigation made by the Bank or on its behalf, and (ii) shall continue in full force and effect as long as any of the Obligations is outstanding and unpaid, whether or not then due and
payable. 
 (b) Any provision of this Guaranty that is illegal, invalid or unenforceable in any jurisdiction whether domestic or
foreign shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without invalidating the remaining provisions hereof or affecting the legality, validity or enforceability of such provisions in
any other jurisdiction. The Guarantor agrees to negotiate in good faith with the Bank to replace any illegal, invalid or unenforceable provision of this Guaranty with a legal, valid and enforceable provision that, to the extent possible, will
preserve the economic bargain of this Guaranty, or to otherwise amend this Guaranty to achieve such result. 
 16. Successors
and Assigns. Whenever in this Guaranty any Person is referred to, such reference shall be deemed to include the successors and permitted assigns of such Person; and all covenants, promises and agreements by or on behalf of the Guarantor that are
contained in this Guaranty shall bind and inure to the benefit of Person to and their respective successors and assigns. The Guarantor may not assign or transfer any of its rights or obligations hereunder (and any such attempted assignment not so
expressly contemplated shall be void). 
 17. GOVERNING LAW. THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF WISCONSIN, WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW. 

18. Headings; Interpretation. The Section headings in this Guaranty are for convenience only and shall not affect the construction
hereof. 
 19. Notices. Notices, consents and other communications provided for herein shall (except as otherwise
expressly permitted herein) be in writing and given as provided in the Credit Agreement, except that the address of the Guarantor for purposes hereof is set forth next to its signature below. 

20. Counterparts. This Guaranty may be executed in separate counterparts and by different parties hereto on different counterparts
(a telecopy or other electronic transmission of any executed counterpart having the same effect as manual delivery thereof), each of which shall constitute an original, whether signed by one or more parties, but all of which, when taken together,
shall constitute but one agreement. 
 21. Right of Setoff. The Guarantor hereby agrees that if an Event of Default shall
have occurred and be continuing, the Bank is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held 

  
 27 

 
and other obligations at any time owing by the Bank to or for the credit or the account of the Guarantor against any of and all the obligations of the Guarantor now or hereafter existing under
this Guaranty, irrespective of whether or not the Bank shall have made any demand under this Guaranty and although such obligations may be unmatured. The rights of the Bank under this Section are in addition to other rights and remedies (including
other rights of setoff) that the Bank. 
 22. Jurisdiction. The Bank may enforce any claim arising out of this Guaranty
in any state or federal court having subject matter jurisdiction and located in Milwaukee, Wisconsin. For the purpose of any action or proceeding instituted with respect to any such claim, the Guarantor hereby irrevocably submits to the jurisdiction
of such courts. The Guarantor irrevocably consents to the service of process out of said courts by mailing a copy thereof, by registered mail, postage prepaid, to the Guarantor and agrees that such service, to the fullest extent permitted by law
(a) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding, and (b) shall be taken and held to be valid personal service upon personal delivery to it. Nothing herein contained shall
affect the right of the Bank to serve process in any other manner permitted by law or preclude the Bank from bringing an action or proceeding in respect hereof in any other country, state or place having jurisdiction over such action. The Guarantor
hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any court located in Milwaukee, Wisconsin and any claim
that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum. 
 23. WAIVER OF
JURY TRIAL. THE GUARANTOR AND, BY ACCEPTANCE HEREOF, THE BANK HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). THE GUARANTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THE CREDIT AGREEMENT AND MAKE LOANS THEREUNDER BY, AMONG OTHER THINGS, THE WAIVERS
AND CERTIFICATIONS IN THIS SECTION. 
 IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and
delivered as of the day and year first above written. 
  

									
	Address of Guarantor for notice:	 		 	 GUARANTOR:

			
	[ address ]	 		 	[                    ]
					
	Attn:	 	  
	 		 		 	
	Tel:	 	  
	 		 	By:	 	 /s/ Richard A. Meeusen

	Fax:	 	  
	 		 	Name:	 	Richard A. Meeusen
		 		 		 	Title:	 	Chairman, President & CEO

  
 28 

 EXHIBIT D 
 Form of Compliance Certificate 
 COMPLIANCE CERTIFICATE 

Date:                     ,
20     
 This certificate (“Certificate”) is given by
                    , a Financial Officer of Badger Meter, Inc. (the “Company”), pursuant to Section 5.1(c) of that certain
Credit Agreement dated as of May     , 2012, by and between the Company and BMO Harris Bank N.A. (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized
terms used herein without definition shall have the meanings assigned thereto in the Credit Agreement. 
 The undersigned
Financial Officer hereby certifies to the Bank as follows: 
 (a) the financial statements delivered together with this
Certificate pursuant to Section 5.1(a) and/or 5.1(b) of the Credit Agreement fairly present in all material respects the results of operations and financial condition of the Company and its Subsidiaries as of the dates and for the accounting
period covered by such financial statements; 
 (b) I have reviewed the terms of the Credit Agreement and have conducted, or
caused to be conducted under my supervision, a review in reasonable detail of the activities and conditions of the Company and its Subsidiaries during the period covered by such financial statements; 

(c) I have no knowledge of the existence of any Default or an Event of Default, except as specified in Schedule 1 hereto (which, if
applicable, includes a description of the nature and period of existence of such Default or an Event of Default and what actions the Company is undertaking and proposes to take with respect thereto); 

(d) the Company is in compliance with the financial covenants contained in Section 6.7 of the Credit Agreement, as demonstrated by
the calculation of such financial covenant attached hereto, except as otherwise expressly indicated herein; and 
 (e) the
Consolidated Senior Funded Indebtedness to Consolidated EBITDA Ratio for the period covered by this certificate, as demonstrated by the calculations attached hereto, is              to 1.0.
As a result of the foregoing, tier level              of the pricing table, duplicated below, is the applicable tier level for purposes of determining the Applicable Margin. 

 

					
	 Tier
	  	 Consolidated Senior Funded

Indebtedness to Consolidated
 EBITDA Ratio
	  	 Applicable Margin for Revolving

Loans, and Foreign Currency
 Revolving Loans

	I	  	< 1.0 to 1.0	  	1.125%
	II	  	3 1.0 to 1 but < 2.0 to 1.0	  	1.350%
	III	  	3 2.0 to 1.0	  	1.500%

 IN WITNESS WHEREOF, the undersigned Financial Officer has executed and delivered this certificate this
     day of             , 20    . 
  

			
	BADGER METER, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 29 

 CONSOLIDATED FUNDED INDEBTEDNESS TO 

CONSOLIDATED EBITDA RATIO 
 (Section 6.7) 
  

					
	 Consolidated Funded Indebtedness to Consolidated EBITDA Ratio for the applicable period being measured pursuant to the terms of
the Credit Agreement (the “Measurement Period”) is defined as follows:
	  			
		
	 Consolidated Funded Indebtedness:
	  	$	            	  
		
	 Consolidated EBITDA:
	  	$	            	  
		
	 Defined as Consolidated Net Income, plus to the extent deducted in determining Consolidated Net Income, (i) current and deferred income
taxes, plus (ii) Consolidated Interest Expense, plus depreciation, plus (iii) amortization, all as calculated in accordance with GAAP for the Company and its Subsidiaries on a consolidated basis
	  			
		
	 Minimum Consolidated Funded Indebtedness to Consolidated EBITDA for the Measurement Period
	  	 	         to 1.0	  
		
	 Consolidated Funded Indebtedness to Consolidated EBITDA for the Measurement Period
	  	 	         to 1.0	  
		
	 In Compliance
	  	 	Yes/No	  

 CONSOLIDATED SENIOR FUNDED INDEBTEDNESS 

TO CONSOLIDATED EBITDA RATIO 
 (Applicable Margin) 
  

					
	 Consolidated Senior Funded Indebtedness to Consolidated EBITDA Ratio for the applicable period being measured pursuant to the
terms of the Credit Agreement (the “Measurement Period”) is defined as follows:
	  			
		
	 Consolidated Senior Funded Indebtedness:
	  	$	            	  
		
	 Consolidated EBITDA:
	  	$	            	  
		
	 Defined as Consolidated Net Income, plus to the extent deducted in determining Consolidated Net Income, (i) current and deferred income
taxes, plus (ii) Consolidated Interest Expense, plus depreciation, plus (iii) amortization, all as calculated in accordance with GAAP for the Company and its Subsidiaries on a consolidated basis
	  			
		
	 Consolidated Senior Funded Indebtedness to Consolidated EBITDA for the Measurement Period
	  	 	         to 1.0	  
		
	 Applicable Margin:
	  	 	Tier             	  

  
 30 

 Schedule 1 to 
 Compliance Certificate 
 Existing Defaults or Events of Default 

[To be completed by the Company, if applicable] 
 SCHEDULE 3.10 
 Subsidiaries 

Badger Meter de las Americas, SA de CV 
 Badger
Meter Canada, Inc. 
 Badger Meter Czech Republic SRO 
 (a subsidiary of Badger Meter International, Inc.) 
 Badger Meter Europe, GmbH 

Badger Meter International, Inc. 

(an international holding company of Badger Meter, Inc.) 
 Badger Meter de Mexico, SA de CV 
 Badger Meter Slovakia SRO 

(a subsidiary of Badger Meter Europe, GmbH) 
 Premier Control Technologies, Ltd. 
 (a subsidiary of Racine Federated, Inc.)

 Racine Federated, Inc. 
 Remag AG

 (a subsidiary of Badger Meter International, Inc.) 
 SCHEDULE 6.1 
 Liens 

[to be completed by the Company] 

None 

  
 31 

 SCHEDULE 6.2 
 Indebtedness 
 [to be completed by the Company] 

JPMorgan Chase Bank, N.A., letter of credit USD $1,192,392 
 JPMorgan Chase Bank, N.A., line of credit EUR 4,000,000.00 
 Commerz Bank, line of credit EUR
500,000.00 
 UniCredit Bank, line of credit EUR 1,700,000.00 

  
 32LOAN AGREEMENT

 Exhibit 10.1 
 LOAN AGREEMENT 
 PROVIDING FOR A SENIOR SECURED 

SIX MONTH TERM LOAN OF 
 US$2,000,000 
 AMONG 

COMARCO, INC. 
 as Borrower 
 AND 

COMARCO WIRELESS TECHNOLOGIES, INC. 
 as Guarantor 
 AND 

BROADWOOD PARTNERS, L.P. 
 as Lender 
 Dated as of July 27, 2012 

 SENIOR SECURED SIX MONTH TERM LOAN AGREEMENT 

THIS SENIOR SECURED SIX MONTH TERM LOAN AGREEMENT (as amended from time to time, this “Agreement”), dated as of
July 27, 2012 (“Effective Date”), is entered into by and among (i) BROADWOOD PARTNERS, L.P, a limited partnership organized and existing under the laws of the State of Delaware, as lender (the “Lender”);
(ii) COMARCO, INC., a corporation incorporated under the laws of the State of California, as borrower (the “Borrower”); and (iii) COMARCO WIRELESS TECHNOLOGIES, INC., a corporation incorporated under the laws of the State
of Delaware, as guarantor (the “Guarantor” and, together with the Lender and the Borrower, the “Parties” and each a “Party”). 
 W I T N E S S E T H: 
 WHEREAS, the Lender has agreed to provide to the
Borrower a senior secured term loan in the amount of Two Million United States Dollars (US$2,000,000) (or, as the context may require, the principal amount thereof from time to time outstanding, the “Loan”) on the terms and subject
to the conditions set forth herein. 
 WHEREAS, the Parties have agreed that the Loan shall be evidenced by a Note (as defined
herein) to be executed by the Borrower in favor of the Lender and guaranteed by the Guarantor; and 
 WHEREAS, the Guarantor has
agreed to guaranty the obligations of the Borrower with respect to the transactions contemplated by this Agreement. 
 NOW,
THEREFORE, in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as set
forth below: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01 General Definitions. Wherever used
in this Agreement, or the Exhibits or Schedules attached hereto, unless the context otherwise requires, the following terms have the following meanings: 
 “Accredited Investor” has the meaning ascribed to it in the Securities Act of 1933, Rule 501, as amended. 
 “Additional Amounts” has the meaning given to it in Section 2.09(b). 
 “Ancillary Documents” means any documents, in addition to the Transaction Documents, that may be executed as security for the Loan and the Borrower’s obligations in connection
therewith.  

 “Applicable Law” means any law of any Governmental Authority, including,
without limitation, all national, federal, state and local banking or securities laws, to which the Person in question is subject or by which it or any of its material property is bound. 

“Applicable Rate” means five percent (5%) per annum. 

“Business” means (i) with respect to Borrower, the business of Designing, Developing, and Manufacturing of Consumer
electronic products; and (ii) with respect to the Guarantor, the the business of Designing, Developing, and Manufacturing of Consumer electronic products. 
 “Business Day” means a day on which banks are open for business in the City of New York, United States of America. 

“Change of Control” means the occurrence, while any amount is outstanding under the Agreement and Note, of any of the
following events: (i) except for the Lender, any Person or “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange, except that a Person will be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or
indirectly, of more than twenty percent (20%) of the voting power of all classes of shareholders of the Borrower; or (ii) individuals who on the Effective Date constituted the board of directors of the Borrower (together with any new
directors whose election to such board of directors of the Borrower, or whose nomination for election by the shareholders of the Borrower, was approved by a vote of two thirds of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the board of directors of the Borrower then in office except changes in the board of directors
resulting from annual uncontested elections. 
 “Closing” means the day on which the Loan is funded and the
Loan funds are deposited pursuant to Section 2.03. 
 “Debt” means with respect to any Person, as of the
relevant date for calculation, without duplication, (i) any obligation of such Person for borrowed money, including by way of overdraft privileges; (ii) any obligation of such Person evidenced by bonds, debentures, notes or other similar
instruments; (iii) any obligation of such Person to pay the deferred purchase price of goods, property or services (other than trade payables incurred in the ordinary course of business and payable in accordance with customary business
practices or which are being contested in good faith by appropriate proceedings and for which adequate reserves have been set aside on the books of such Person in accordance with U.S. GAAP); (iv) any obligation of such Person under conditional
sales or other title retention agreements; (v) the net aggregate rentals under any lease by such Person as lessee that under U.S. GAAP, as in effect on the date hereof, would be capitalized on the books of the lessee; (vi) any obligation
of such Person to purchase securities or other property which arises out of or in connection with the sale of the same or substantially similar securities or property; (vii) any obligations of such Person under reimbursement or similar
agreements with respect to the issuance of letters of credit, banker’s acceptances or other similar financial accommodations, except letters of credit issued in the ordinary course of 

  
 2 

 
business, including in connection with the purchase of supplies or products; (viii) any obligations of such Person to pay rent or other amounts under leases entered into in connection with
sale and leaseback transactions involving assets of such Person being sold in connection therewith; (ix) any Debt of others secured by a Lien on any asset of such Person; (x) the net liabilities or obligations of such Person under any
interest rate or currency swap or other financial hedging contract; (xi) any Debt of others guaranteed, directly or indirectly, by such Person; and (xii) any other amounts raised under any other transaction having the financial effect of a
borrowing and classified as such under U.S. GAAP. 
 “Default” means any event which, with the giving of
notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default. 

“Default Rate” means ten percent (10.0%) per annum. 

“Dollars” and the “$” sign mean the lawful currency of the United States of America. 

“Event of Default” has the meaning given to it in Section 6.01. 

“Funding” has the meaning given to it in Section 2.03. 

“Government Authority” means any government, governmental department, ministry, cabinet, commission, board, bureau,
agency, tribunal, regulatory authority, instrumentality, judicial, legislative, fiscal, or administrative body or entity, domestic or foreign, federal, state or local having jurisdiction over the matter or matters and Person or Persons in question.

 “Guaranty” means that certain guaranty, in the form attached hereto as Exhibit B, dated as of the
date hereof, given by the Guarantor in favor of the Lender, pursuant to which the Guarantor guaranteed all of the Borrower’s obligations under the Transaction Documents. 
 “Indemnified Person” has the meaning given to it in Section 7.14. 
 “Indemnity” has the meaning given to it in Section 7.14. 

“Lien” means any lien, pledge, preferential arrangement, mortgage, security interest, deed of trust, charge, assignment,
hypothecation, title retention, privilege or other encumbrance on or with respect to property or interest in property having the practical effect of constituting a security interest with respect to the payment of any obligation with, or from the
proceeds of, any asset or revenue of any kind. 
 “Loss” has the meaning given to it in Section 7.14.

 “Material Adverse Effect” means a material adverse effect on the business, operations, prospects, condition
(financial or otherwise) or property of the Security Parties (considered as a whole) due to (a) the invalidity or unenforceability of any provision of any Transaction Document, (b) the inability of any party to any Transaction Document to
timely perform its obligations thereunder, or (c) adversely affect the rights and remedies of the Lender under any of the Transaction Documents. 

  
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 “Maturity Date” means that date which is six (6) months following of
the Effective Date, unless such date is not a Business Day, in which case the Maturity Date shall be the Business Day immediately following such date. 
 “Note” has the meaning given to it in Section 2.07. 

“Permitted Liens” means (i) Liens in favor of the Lender, (ii) liens disclosed and acceptable to the Lender
per Section 4.01(c)(ii), (iii) statutory Liens created by operation of applicable law, (iv) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance,
social security and other like laws and in connection with leases or trade contracts, (v) Liens arising in the ordinary course of business and securing obligations that are not overdue or are being contested in good faith by appropriate
proceedings, and (vi) Liens for Taxes and government charges or levies not yet due and payable or that are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on
the books of the applicable Party in accordance with U.S. GAAP. 
 “Person” means and includes any natural
person, individual, partnership, joint venture, corporation, trust, limited liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity.

 “Pledge Agreement” means that certain pledge agreement, in the form attached hereto as Exhibit C,
dated as of the date hereof, by and between the Borrower and the Lender, pursuant to which Borrower pledged to the Lender all of Borrower’s right, title and interest in and to, and provided a first priority lien and security interest on,
3,065,000 issued and outstanding shares of capital stock of the Guarantor, which are equal to one hundred percent (100%) of the total issued and outstanding shares of capital stock of the Guarantor, as security for all of the Borrower’s
obligations under the Transaction Documents; 
 “Security Agreements” means: (i) that certain security
agreement, in the form attached hereto as Exhibit D-1, dated the date hereof, by and between the Borrower and the Lender, pursuant to which the Borrower granted a first priority security interest in and to all of the Collateral (as defined
therein); and (ii) that certain security agreement, in the form attached hereto as Exhibit D-2, dated the date hereof, by and between the Guarantor and the Lender, pursuant to which the Guarantor granted a first priority security
interest in and to all of the Collateral (as defined therein). 
 “Security Parties” means the Borrower and the
Guarantor. 
 “Stock Purchase Agreement” means that certain stock purchase agreement in the form attached
hereto as Exhibit A, dated as of the date hereof, by and between the Borrower and the Lender, pursuant to which the Lender has agreed to purchase, at a minimum, a certain number of shares of the Borrower’s common stock in an amount up to
Three Million United States Dollars (US$3,000,000), subject to the terms and conditions therein contained. 

  
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 “Taxes” means all deductions or withholdings for any and all present and
future taxes, levies, imposts, stamp or other duties, fees, assessments, deductions, withholdings, all other governmental charges, and all liabilities with respect thereto. 
 “Transaction Documents” means this Agreement, the Note, the Pledge Agreement, the Guaranty, the Warrant Agreement, the Security Agreements, and the Stock Purchase Agreement. 

“United States” means the United States of America. 

“U.S. GAAP” means generally accepted accounting principles in the United States of America in effect from time to time,
and applied on a consistent basis. 
 “Warrant Agreement” means that certain common stock purchase warrant
agreement, in the form attached hereto as Exhibit E, dated the date hereof, made by Borrower in favor of Lender, pursuant to which the Borrower granted the Lender the right to purchase a certain number of shares of the Borrower’s common
stock at a certain price, subject to the terms and conditions therein contained. 
 Section 1.02 Interpretation. In
this Agreement, unless the context otherwise requires, all words and personal pronouns relating thereto shall be read and construed as the number and gender of the party or parties requires and the verb shall be read and construed as agreeing with
the required word and pronoun; the division of this Agreement into Articles and Sections and the use of headings and captions is for convenience of reference only and shall not modify or affect the interpretation or construction of this Agreement or
any of its provisions; the words “herein,” “hereof,” “hereunder,” “hereinafter” and “hereto” and words of similar import refer to this Agreement as a whole and not to any particular Article or
Section hereof; the words “include,” “including,” and derivations thereof shall be deemed to have the phrase “without limitation” attached thereto unless otherwise expressly stated; references to a specified Article,
Exhibit, Section or Schedule shall be construed as a reference to that specified Article, Exhibit, Section or Schedule of this Agreement; and any reference to this Agreement or any of the Transaction Documents means such agreement or document as the
same shall be amended, supplemented or modified and from time to time in effect. 
 Section 1.03 Business Day
Adjustment. Where the day on or by which a payment is due to be made is not a Business Day, said payment shall be made on or by the following Business Day. 
 ARTICLE II 
 AGREEMENT FOR THE LOAN 

Section 2.01 Use of Proceeds. The Borrower may use up to $400,000 of the proceeds of the Loan for capital expenditures and
shall use the remainder of the proceeds of the Loan for general working capital. Subject to the satisfaction of the conditions contained herein, the proceeds of the Loan shall be remitted as directed by Borrower. 

Section 2.02 Amount of the Loan. Subject to the terms and conditions of this Agreement, the Lender agrees to lend to the
Borrower and the Borrower agrees to borrow from the Lender, the Loan in the principal amount of Two Million United States Dollars (US$2,000,000). 

  
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 Section 2.03 Funding. Subject to the terms and conditions hereof and upon
satisfaction of each of the conditions precedent herein contained, the Lender shall deposit the full amount of the Loan in immediately available funds into an account designated by the Borrower (the “Funding”). 

Section 2.04 Principal. The Borrower shall repay the principal of the Loan in full on the Maturity Date. Amounts borrowed and
repaid or prepaid may not be re-borrowed. No penalties or premiums shall be payable by Borrower in respect of or by reason of any prepayments of amounts borrowed hereunder. 

Section 2.05 Interest. Interest shall accrue at the Applicable Rate on all amounts outstanding pursuant to this Agreement and
shall be payable on the Maturity Date. All interest shall accrue and be calculated on the actual number of days elapsed and on the basis of a 360 day year. 
 Section 2.06 Interest on Late Payments. Without limiting the remedies available to the Lender under this Agreement, the other Transaction Documents or otherwise, to the maximum extent
permitted by applicable law, if the Borrower fails to make payment of principal or interest when due or if one or more other Events of Default specified in Section 6.01 occurs and is continuing, the Borrower shall pay interest on the Loan and
accrued but unpaid interest at the lesser of (i) Applicable Rate plus the Default Rate or (ii) the highest non-usurious rate available pursuant to applicable law, for so long as such amounts remain outstanding or for so long as the
other Events of Default are continuing. 
 Section 2.07 Note. The Borrower’s obligation to repay the Loan shall
be evidenced by a promissory note of the Borrower (consented and agreed to by the Guarantor), in the form attached hereto as Exhibit F, (the “Note”), payable to the order of the Lender. 

Section 2.08 Payments. Payments of principal, interest, fees, costs, expenses or any other payment due to the Lender under
any provision of any of the Transaction Documents or Ancillary Documents shall be made in Dollars in immediately available funds, without deduction, set off or counterclaim, prior to 11:00 a.m. New York City time on such date that any such payment
is due, at such bank or banks, and in such place or places, as the Lender shall from time to time designate in writing. The Borrower shall pay all and any costs (administrative or otherwise) imposed by banks, clearing houses, or any other financial
institution, in connection with making any payments under any of the Transaction Documents, except for any costs imposed by the Lender’s banking institutions. 
 Section 2.09 Taxes, Duties and Fees. 
 (a) The Borrower shall pay or
cause to be paid all present and future Taxes imposed, duties, fees and other charges of whatsoever nature, if any, now or at any time hereafter levied or imposed by any Government Authority, by any department, agency, political subdivision or
taxing or other authority thereof or therein, by any organization of which the applicable Government Authority is a member, or by any jurisdiction through which the 

  
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Borrower makes payments hereunder, on or in connection with the payment of any and all amounts due under this Agreement, and all payments of principal, interest, and other amounts due under this
Agreement shall be made without deduction for or on account of any such Taxes, duties, fees and other charges, which may be deducted or withheld from payments made by the Borrower only if such deduction or withholding is required by applicable law.

 (b) In the event the Borrower is required to withhold any such amount or are prevented by operation of law or otherwise from
paying or causing to be paid such Taxes, duties, fees or other charges as aforesaid, the principal, interest or other amounts due under this Agreement (as applicable) shall be increased to such amount as shall be necessary to yield and remit to the
Lender the full amount it would have received (taking into account any such Taxes, duties, fees or other charges payable on amounts payable by the Borrower under this section) had such payment been made without deduction of such Taxes, duties, fees
or other charges (all and any of such additional amounts, herein referred to as the “Additional Amounts”). 

(c) If Section 2.09(b) above applies and the Lender so requires, the Borrower shall deliver to the Lender official tax receipts
evidencing payment (or certified copies of them) of such Additional Amounts within thirty (30) days of the date of payment. 
 (d) In the event that the Lender receives a refund from the relevant Government Authority to which the Borrower has paid withholding Taxes pursuant to this Section 2.09, the Lender shall pay such
refund to the Borrower. 
 Section 2.10 Costs, Expenses and Losses. If, as a result of any failure by the Borrower
to pay any sums due under this Agreement on the due date therefor, the Lender shall incur out of pocket costs, expenses and/or losses, by reason of the liquidation or redeployment of deposits from third parties or in connection with obtaining funds,
the Borrower shall pay to the Lender upon request by the Lender, the amount which the Lender shall notify to the Borrower as being the aggregate of such out of pocket costs, expenses and losses. The Borrower shall pay such costs, expenses and/or
losses within thirty (30) days after receipt by them of a certificate from the Lender setting forth in reasonable detail such costs, expenses and/or losses. For the purposes of the preceding sentence, “costs, expenses and/or losses”
shall include, without limitation, any interest paid or payable to carry any unpaid amount and any loss, premium, penalty or expense which may be incurred in obtaining, liquidating or employing deposits of or borrowings from third parties.

 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 Section 3.01 Representations and
Warranties of the Security Parties. The Security Parties represent and warrant as of the date hereof and as of the date of Funding, as follows: 
 (a) Borrower is a corporation duly incorporated and validly existing under the laws of the State of California; and the Guarantor is a corporation duly incorporated and validly existing under the laws of
the State of Delaware. 

  
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 (b) Each Security Party has the requisite corporate power and authority to enter into each
of the Transaction Documents and Ancillary Documents to which it is, or will be, a party, to make the borrowings and to consummate the other transactions contemplated hereby, to execute and deliver the Note, and to incur the obligations provided for
herein and therein, all of which have been duly authorized by all proper and necessary corporate action of the Security Parties; and no consent or approval of shareholders of the Security Parties (other than those consents and approvals contemplated
herein) is required as a condition to the validity or performance of the Transaction Documents or the Ancillary Documents. 

(c) The Security Parties have all material permits, authorizations, consents, approvals, and licenses of any Government Authority or
other Persons required in the conduct of the Business as currently conducted and as proposed to be conducted. 
 (d) All
authorizations, consents, approvals, registrations, exemptions and licenses with or from Government Authorities which are necessary for the validity hereof, the borrowing hereunder, the execution and delivery of the Transaction Documents and
Ancillary Documents to which it is a party and the performance thereby of its obligations hereunder and thereunder, have been effected or obtained and are in full force and effect. 

(e) This Agreement and each of the other Transaction Documents and the Ancillary Documents to which either of the Security Parties is a
party have been duly authorized by all necessary corporate action of such Security Party, and have been executed and delivered by the such Security Parties, are in full force and effect and constitute the valid and legally binding obligation of such
Security Party, enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity. 

(f) No Default or Event of Default has occurred under any of the Transaction Documents. 

(g) Neither the entering into any Transaction Document nor the compliance with any of its respective terms conflicts with, violates or
results in a breach of any of the terms, conditions or provisions of, or constitutes a default or event of default (however described) or requires any consent under, any indenture, mortgage, agreement or other instrument or arrangement to which
either of the Security Parties is a party or by which it is bound, or violates any judgment, decree, resolution, award or order or any statute, rule or regulation applicable to the Security Parties. 

(h) Except as previously disclosed in the Borrower’s public filings with the U.S. Securities and Exchange Commission or as disclosed
to the Lender, the Security Parties are not engaged in nor the subject of any material litigation, arbitration, administrative regulatory compliance proceedings, nor investigations, nor are there any litigation, arbitration, administrative
regulatory compliance proceedings or investigations pending or, to the knowledge of the Security Parties, threatened before any court or arbitrator or before or by any Government Authority against the Security Parties, nor are the Security Parties
aware of any facts likely to give rise to any such proceedings. For purposes of this Agreement, the Security Parties shall be deemed to have knowledge or to be aware of facts or circumstances if such facts or circumstances are known by any of the
executive officers or directors of the Company. 

  
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 (i) The Security Parties (i) are capable of paying their debts as they fall due and are
able and have not admitted an inability to pay debts as they fall due (except as previously disclosed in the Borrower’s public filings with the U.S. Securities and Exchange Commission), (ii) are not bankrupt and (iii) have not taken
action, and no such action has been taken by a third party, for the winding up, dissolution, or liquidation or similar executory or judicial proceeding or for the appointment of a liquidator, custodian, receiver, trustee, administrator or other
similar officer for the Security Parties or any or all of their property, assets or revenues. 
 (j) Upon its issuance, the Note
shall be a legal, valid and binding instrument of the Security Parties that are party thereto, enforceable against the Security Parties in accordance with its terms and applicable law and shall enable the holder thereof to enforce such Note at any
time in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity. 

(k) The obligation of the Security Parties to make any payment under this Agreement (together with all interest accrued thereon and other
charges in connection therewith) is absolute and unconditional, and there exists no right of setoff or recoupment, counterclaim, cross-claim or defense of any nature whatsoever to any payments. 

(l) As of the date hereof, Borrower owns 3,065,000 issued and outstanding shares of capital stock of the Guarantor, which are equal to
one hundred percent (100%) of the total issued and outstanding shares of capital stock of the Guarantor. 
 (m) The
Security Parties own or possess adequate rights or licenses to use all trademarks, service marks, and all applications and registrations therefor, trade names, patents, patent rights, copyrights, original works of authorship, inventions, licenses,
approvals, governmental authorizations, trade secrets and other intellectual property rights (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted. Except as disclosed in the
Borrower’s public filings with the U.S. Securities and Exchange Commission or in writing to Lender, none of the Security Parties’ Intellectual Property Rights have expired or terminated, or are expected to expire or terminate, prior to the
Maturity Date. The Security Parties do not have any knowledge of any material infringement by the Security Parties of Intellectual Property Rights of others. There is no material claim, action or proceeding pending, or to the knowledge of the
Security Parties, being threatened, against the Security Parties regarding its Intellectual Property Rights. The Security Parties are unaware of any material facts or circumstances which are likely to give rise to any of the foregoing infringements
or claims, actions or proceedings. The Security Parties have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their material Intellectual Property Rights. 

  
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 Section 3.02 Representations and Warranties of the Lender. The Lender represents
and warrants as of the date hereof and as of the date of Funding, as follows: 
 (a) The Lender has all requisite power and
authority to execute and deliver this Agreement and the other Transaction Documents and to consummate the transactions contemplated hereby and thereby. 
 (b) All action on the part of the Lender necessary for the authorization of this Agreement, the performance of all obligations of the Lender hereunder and under the other Transaction Documents has been
taken. This Agreement and each Transaction Document is a valid and binding obligation of the Lender enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws
of general application affecting enforcement of creditors’ rights, and (b) general principles of equity that restrict the availability of equitable remedies. 
 (c) The Lender represents that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of consummating the transactions contemplated by
this Agreement and the Transaction Documents, including making the Loan to Borrower. The Lender represents that in making the Loan, it is acquiring its Note for its own account in the ordinary course of its business. The Lender represents that it is
acquiring its Note for investment only, and not with a view toward or for sale in connection with any distribution thereof or with any present intention of subdividing, participating, distributing, or selling the Note in whole or in part or any
interest therein. The Lender hereby acknowledges that the Note has not been registered or qualified under the Securities Act of 1933, as amended, nor under any state or any other applicable securities law, by reason of a specific exemption from the
registration or qualification provisions of those laws. The Lender hereby acknowledges and agrees that the Note may not be resold unless such resale is registered under the Securities Act of 1933, as amended, and registered or qualified under
applicable state securities laws or an exemption from such registration and qualification is available and the conditions of any such exemption are complied with and that Borrower is not obligated to so register or qualify the Note for resale
thereunder. The Lender further represents and warrants that it is an Accredited Investor. 
 (d) The Lender represents that it
owns approximately twenty one percent (21%) of the issued and outstanding common stock of the Borrower. 

Section 3.03 Borrower Acknowledgment. The Security Parties acknowledge that they have made the representations and warranties
referred to in Section 3.01 with the intention of persuading the Lender to enter into this Agreement and the other Transaction Documents and that the Lender has entered into this Agreement and each other Transaction Document on the basis of,
and in full reliance on, each of such representations. The Security Parties represent and warrant to the Lender that none of their respective representations and warranties omits any matter the omission of which makes any of such representations and
warranties materially misleading. 
 Section 3.04 No-Estoppel Provision. The rights and remedies of the Lender in
relation to any misrepresentations or breach of warranty on the part of the Security Parties shall not be prejudiced by any investigation by or on behalf of the Lender into the affairs of the Security Parties, by the execution or the performance of
this Agreement or by any other act or thing which may be done by or on behalf of the Lender in connection with this Agreement and which might, apart from this Section 3.04, prejudice such rights or remedies. 

  
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 ARTICLE IV 
 CONDITIONS PRECEDENT 
 Section 4.01 Conditions Precedent to Funding
of the Loan. The obligation of the Lender to fund the Loan shall be subject to the fulfillment, in a manner satisfactory to the Lender in its sole discretion, prior to or concurrently with the making of such Funding of the following conditions:

 (a) Corporate Authority. 
 (i) The Lender shall have received copies, certified as true and complete by an officer of each of the Security Parties, of (1) the resolutions of each Security Party’s board of directors and,
(2) the resolutions of the Guarantor’s shareholder, evidencing approval of the Transaction Documents to which each is a party and authorizing an appropriate officer or officers or attorney-in-fact or attorneys-in-fact to execute the same
on its behalf. 
 (ii) The Lender shall have received copies, certified as true and complete by an officer of each Security
Party, of its respective (1) certificate or articles of incorporation and (2) by-laws or similar constituent documents thereof. 
 (iii) The Lender shall have received a certificate of the jurisdiction of incorporation of each Security Party as to the good standing thereof. 

(iv) The Lender shall have received a stock certificate representing all the pledged capital stock of the Guarantor legally and
beneficially owned by the Borrower. 
 (v) The Lender shall have received a certificate of an authorized officer of each of the
Security Parties certifying that (1) no Default or Event of Default shall have occurred and be continuing; and (2) the representations and warranties of the Security Parties contained in this Agreement are true and correct as of the date
of such certificate (or, if any such representation is made as of a specific date, at and as of such date). 
 (vi) The
Lender shall have received a certificate of an authorized officer of each of the Security Parties certifying that under Applicable Law existing on the date hereof, such Security Parties shall not be compelled by law to withhold or deduct any Taxes
from any amounts to become payable to the Lenders. 
 (vii) The Lender shall have received copies, certified as true and
complete by an officer of each of the Security Parties, of all documents evidencing any other necessary action, approvals or consents with respect to the Transaction Documents to which each is a party and the transactions contemplated hereby and
thereby. 

  
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 (b) Transaction Documents. 

(i) The Borrowers shall have duly executed and delivered this Agreement to the Lender, and the Guarantor shall have duly executed and
delivered the Consent and Agreement attached hereto to the Lender. 
 (ii) The Borrower shall have duly executed and delivered
the Note to the Lender, and the Guarantor shall have duly executed and delivered the Consent and Agreement attached thereto to the Lender. 
 (iii) The Borrower, shall have duly executed and delivered the Pledge Agreement to the Lender and shall have (1) delivered to the Lender a certificate representing all the pledged capital stock of
the Guarantor, together with executed and undated stock powers, (2) otherwise complied with all of the requirements set forth in the Pledge Agreement which are required to have been complied with on or before the date of Closing, and
(3) duly authorized, executed and delivered any other related documentation necessary or advisable to perfect the Lien on the Pledged Collateral (as defined in the Pledge Agreement) referred to therein in the jurisdiction of incorporation of
the Guarantor, including, but not limited to, such Uniform Commercial Code Financing Statements (Forms UCC-1) as the Lender shall require. 
 (iv) the Guarantor shall have executed and delivered the Guaranty to the Lender. 

(v) the Security Parties shall each have executed and delivered their respective Security Agreement to the Lender and shall have duly
authorized, executed and delivered any other related documentation necessary or advisable to perfect the Lien on the Collateral (as defined in the respective Security Agreements) referred to therein in the jurisdiction of incorporation of the
respective Security Parties, including, but not limited to, such Uniform Commercial Code Financing Statements (Forms UCC-1) and any and all documents necessary to complete any filings with the United States Patent and Trademark Office, as the Lender
shall require. 
 (vi) the Borrower shall have executed and delivered the Warrant to the Lender. 

(vii) the Borrower shall have executed and delivered the Backstop Agreement to the Lender. 

(viii) each of Transaction Documents shall be in form and content satisfactory to the Lender and shall have been duly executed and
delivered by the parties thereto and shall be in full force and effect and the Security Parties and the other parties thereto shall be in compliance with all the terms and conditions thereunder. 

(c) Other Documents/Matters 
 (i) The Lender shall have received such financial and other information concerning the Security Parties as it may request, including, without limitation, audited consolidated financial statements of the
Borrower for the prior two (2) fiscal years. 

  
 12 

 (ii) The Lender shall have received a list (and if requested, copies of document evidencing
the same) of the current outstanding liabilities, Liens and Debts of each of the Security Parties, including, but not limited to, an accounting of all material terms, conditions and restrictions thereof. 

(iii) The Lender shall have received a list (and if requested, copies of document evidencing the same) of any material litigation,
arbitration, administrative regulatory compliance proceedings, or investigations pending or, to the knowledge of the Security Parties, threatened before any court or arbitrator or before or by any Government Authority against the Security Parties.

 (iv) The Lender shall have received a legal opinion addressed to the Lender from Stradling Yocca Carlson & Rauth,
counsel to the Security Parties, on matters of the laws of the United States, the State of California and the State of Delaware, in such form as the Lender may agree. 
 (v) The Lender shall have received evidence, satisfactory to the Lender in its sole discretion, that any and all employment agreements, independent contractor agreements, or other agreements pertaining to
the employment or retention of employees or staff of the Borrower, have been amended to permit a change of control and/or changes in the ownership percentage of the Lender. 
 Section 4.02 Saving Rights. No course of dealing or waiver by the Lender in connection with any condition of Funding under this Agreement shall impair any right, power or remedy of the Lender
with respect to any other condition of Funding, or be construed to be a waiver thereof. 
 ARTICLE V 

COVENANTS 

Section 5.01 Affirmative Covenants. Unless the Lender shall otherwise agree, the Security Parties shall: 

(a) (i) maintain its corporate existence and qualify and remain qualified to conduct business as currently conducted; (ii) maintain
all approvals necessary for the Loan and all Transaction Documents; and (iii) operate its business as presently conducted with due diligence, efficiency and in conformity with sound business practices; 

(b) (i) keep its properties and business insured with financially sound and reputable insurers against loss or damage in such manner and
to the same extent as shall be no less than that generally accepted as customary in regard to property and business of like character; (ii) punctually pay any premium, commission and any other amount necessary for effectuating and maintaining
in force each insurance policy required pursuant hereto and (iii) upon the request of the Lender cause the Lender to be a named insured (without recourse for premiums) and a loss payee of the Borrower’s insurances; 

(c) comply in all material respects with all applicable laws, rules, regulations and orders of any Government Authority; 

  
 13 

 (d) take all necessary action to permit the Lender’s representatives to (i) visit
(with prior notice to the Security Parties) the premises of the Security Parties, its facilities, plants and equipment during working hours and on working days, (ii) meet with the Security Parties’ directors, officers, and agents, and
(iii) have reasonable access to the Security Party’s books and the Security Party’s auditors during working hours and on working days (provided that Lender shall not communicate with Security Parties’ auditors without notice and
opportunity for Security Parties to participate in such communication), provided that, so long as no Event of Default has occurred and is continuing, the Lender gives the Security Parties notice two (2) Business Days in advance of such
visit; 
 (e) have or promptly install and maintain records, books, management information systems and financial control
procedures which together are adequate to: (i) support the accounting practices and tax elections of the Security Parties; (ii) record and monitor the use of the Loan proceeds in accordance with Section 2.01; and
(iii) accurately, adequately and fairly reflect the consolidated financial condition of the Security Parties and the consolidated results of its operations in conformity with U.S. GAAP; 

(f) supply the Lender with (i) annual audited consolidated financial statements of the Borrower as soon as they are available and,
in any event, within one hundred twenty (120) days after the end of Borrower’s financial year; and (ii) quarterly internally prepared unaudited consolidated financial statements of the Borrower as soon as they are available; each of
which shall include, if applicable, management’s discussion and analysis of the results of the accounting period in respect of such report containing, where available, year to year and quarter to quarter comparisons; 

(g) pay and discharge all Taxes, assessments and governmental charges upon it, its income and its properties prior to the date on which
penalties are attached thereto, unless and only to the extent that (i) such Taxes, assessments and governmental charges shall be contested in good faith and by appropriate proceedings by the Security Parties, (ii) reserves which are
adequate under U.S. GAAP are maintained by the Guarantor with respect thereto, and (iii) any failure to pay and discharge such Taxes, assessments and governmental charges would not have and could not reasonably be expected to have a Material
Adverse Effect; 
 (h) promptly inform the Lender, in writing, of any proposed material change in the nature or scope of the
Business or operations of the Security Parties, or any event or condition which has or could reasonably be expected to have a Material Adverse Effect; 
 (i) comply with the requirements of all applicable laws, rules, regulations, and orders of any Government Authority, a breach of which is reasonably expected to result in a Material Adverse Effect;

 (j) obtain, make and keep in full force and effect all licenses, contracts, consents, approvals and authorizations from and
registrations with Government Authorities that may be required to conduct its business, the failure to do so would be reasonably expected to have a Material Adverse Effect, to maintain compliance with all applicable laws and regulations, and remit
monies payable pursuant to this Agreement; 

  
 14 

 (k) promptly notify the Lender of the occurrence of (i) any Default or Event of
Default; (ii) any event, development or circumstance whereby the Borrower’s consolidated financial statements fail to fairly present, in any material respect, the consolidated financial condition and operating results of Borrower in
accordance with U.S. GAAP (or, in the case of Borrower’s quarterly financial statements, in accordance with accounting principles and rules of the U.S. Securities and Exchange Commission applicable to interim financial information) as of the
date of such financial statements; (iii) any material litigation or proceedings that are instituted or, to the knowledge of any of the Security Parties, threatened against any of the Security Parties or any of their respective assets;
(iv) each and every event which, at the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default under any of the
Transaction Documents; and (v) any other development in the business or affairs of the Security Parties if the effect thereof is reasonably expected to have a Material Adverse Effect; 

(l) if the Borrower shall, at any time until there is no longer any outstanding payment obligation owed under this Agreement or the Note,
offer to sell Equity Securities to any person other than the Lender, then, subject to the exceptions set forth below in this paragraph 5.01(l), the Borrower shall ensure that the Lender will be permitted to participate (the “Participation
Right”) on a pro rata basis in any such offering. For the purposes hereof, the Lender shall be able to include all shares of common stock of Borrower which are owned by Lender and warrants (assuming the exercise therof) owned by Lender in
any pro rata calculation with respect to this paragraph as of the closing date of any such offering. Borrower shall provide Lender with a written notice of any pending offering by Borrower of any Equity Securities, which notice (an Offering
Notice”) shall set forth the price or price range and other material terms of such offering. Lender shall have a period of ten (10) days, following its receipt of such Offering Notice, to provide to Borrower a written notice (a
“Participation Notice”) that the Lender will be purchasing its pro rata share of the Equity Securities being offered by the Company. If Lender fails to deliver a Participation Notice to Borrower within that 10-day period, such failure
shall constitute an irrevocable election by Lender not to exercise its Participation Right with respect to such offering. The term “Equity Securities” shall mean (i) any shares of any class of capital stock of the Borrower, and
(ii) any debt or other security that is convertible into or exercisable or exchangeable for, with or without consideration, any shares of any class of capital stock of the Borrower. Notwithstanding the foregoing, the Participation Right shall
not apply to any offering for the sole purpose of issuing Equity Securities: (i) to directors, officers, employees, consultants, advisors or other service providers to the Borrower or any subsidiary thereof, (ii) pursuant to the conversion
or exercise of convertible or exercisable securities outstanding on the date hereof or the exercise at any time of any Equity Securities that have been or in the future may be, granted or issued to directors, officers, employees, consultants,
advisors or other service providers, (iii) in connection with a bona fide acquisition of or by the Borrower, whether by merger, consolidation, sale of assets, sale or exchange of stock or otherwise, (iv) in connection with any stock split,
stock dividend, recapitalization, reclassification or similar event, (v) to banks, financial institutions, leasing companies, or other credit providers solely for the purposes of obtaining credit or lease financing or debt securities or
securitizations, (vi) to strategic or commercial partners or persons or entities with which the Borrower has business relationships, and (vii) as contemplated by the Stock Purchase Agreement. 

  
 15 

 (m) comply with the other Transaction Documents, in addition to this Agreement and use its
best efforts to cause every other party to the Transaction Documents (other than the Lender) to comply therewith; and 
 (n)
inform the Lender, promptly after they are made, of any judicial or non-judicial written claims against any of the Security Parties of more than Fifty Thousand Dollars ($50,000) or the equivalent thereof in any other currency for each claim.

 Section 5.02 Negative Covenants. Unless the Lender shall otherwise agree, the Security Parties shall not:

 (a) enter into any transaction except on an arm’s length basis or otherwise agreed in writing by the Lender; 

(b) undertake or permit, without the agreement of the Lender, any (i) merger, consolidation or transfer of shares in the Security
Parties resulting in the creation of a wholly-owned subsidiary, or vice versa, (ii) any conversion of any of the Security Parties into another corporate form, or (iii) any sale, transfer, lease or exchange or other action with respect to
the disposal of, or disposition of rights to, any assets or business lines of the Security Parties in a single transaction or series of transactions outside of the Borrower’s ordinary course of business, unless such sale, lease, exchange, or
disposition or disposals of assets (x) is on an arm’s length, market terms basis to an unrelated third party, (y) does not involve an asset or business line that is or could be reasonably expected to be material to any Security
Parties’ financial performance, and (z) wherein the net proceeds of such transaction are applied in full to pay/repay the principal, interest, fees, expenses or any other amounts outstanding under this Agreement or the Note; 

(c) liquidate or dissolve or enter into any consolidation, merger, spin-off, consolidation or reorganization, or acquire the assets or
stock of any other business or company or enter into any partnership, joint venture, syndicate, pool, profit-sharing or royalty agreement or other similar combination, or engage in any transaction with an affiliate, whereby its income or profits
are, or are reasonably expected to be shared with any other Person; 
 (d) (i) change its name as it appears in official filings
in the state of its incorporation or organization, (ii) change its chief executive office, principal place of business, or mailing address, (iii) change the type of entity that it is, (iv) change its organization identification
number, if any, issued by its state of incorporation or other organization, or (v) change its state of incorporation or organization, in each case, unless the Lender shall have received at least thirty (30) days prior written notice of
such change and the Lender shall have consent in writing to such change; 
 (e) make any material change to the scope or nature
of its respective business activities as carried on at the date hereof or undertake any operations not permitted by the Transaction Documents; 
 (f) use the proceeds of the Loan for any purpose other than those set forth in Section 2.01; 

  
 16 

 (g) establish a subsidiary or acquire any equity interests in any other entity or enter into
any agreement to acquire any stock obligations or securities of or any other interest in or make any capital contribution to any other Person without the prior written consent of the Lender; 

(h) (i) enter into any agreement or arrangement to guarantee or, in any way or under any condition, to become obligated for all or any
part of any financial or other obligation of another Person; (ii) create, incur or suffer any Lien upon any of its assets, now owned or hereafter acquired, except Permitted Liens; or (iii) assign, sell, transfer or otherwise dispose of, or
terminate, waive or amend any of the Transaction Documents to which it is a party, or the rights and obligations thereunder or hereunder, except as permitted by Section 7.06; 

(i) make or permit to exist, loans or advances to, or deposits (except commercial bank and money market deposits in the ordinary course
of business) with, other Persons or investments in any Person or enterprise, except for deposits which are referenced in the definition of Permitted Liens above; 
 (j) except as expressly provided herein, make any prepayment or repurchase any Debt (other than the Loan), or make any repayment of such Debt pursuant to any provision of any agreement or note unless the
Borrower first prepay the Loan or such prepayment, repurchase or repayment is approved by the Lender; 
 (k) (i) violate any
laws, ordinances, government rules or regulations to which it is subject or (ii) fail to obtain or maintain any patents, trademarks, service marks, trade names, copyrights, design patents, licenses, permits, franchises or other governmental
authorizations necessary to ownership of its property or the conduct of its respective business, in either case where such failure would have or could reasonably be expected to have a Material Adverse Effect; 

(l) permit any modification to the accounting practices followed by the Security Parties, other than as contemplated herein, except in
accordance with applicable generally accepted accounting principles; 
 (m) grant any Liens (other than Permitted Liens);

 (n) incur any Debt other than in the ordinary course of business, except wherein the net proceeds of such transaction
are applied in full to pay/repay the principal, interest, fees, expenses or any other amounts outstanding under this Agreement or the Note; 
 (o) directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any shares of common stock of the Borrower or securities convertible into or
exchangeable for common stock of the Borrower, warrants or any rights to purchase or acquire common stock of the Borrower, except wherein the net proceeds of such transaction are applied in full to pay/repay the principal, interest, fees,
expenses or any other amounts outstanding under this Agreement or the Note, and except for offers, sales or issuances of any such shares or convertible or exchangeable securities: (i) to directors, officers, employees, consultants, advisors or
other service providers to the Borrower or any subsidiary thereof, (ii) pursuant to the conversion or exercise of convertible or exercisable securities outstanding on the date hereof or the exercise at any time of any Equity Securities that
have been or in the future may be, granted or issued to directors, officers, employees, consultants, advisors or other service providers, and (iii) as contemplated by the Stock Purchase Agreement. 

  
 17 

 (p) conduct any business other than the Business; 

(q) permit any Change of Control; 
 (r) directly or indirectly: (i) purchase or redeem any shares of its capital stock; (ii) declare or pay any dividends or distributions, whether in cash or otherwise, or set aside any funds for
any such purpose; or (iii) increase the annual salary paid to any officers or director of the Security Parties as of the Effective Date, unless any such increase is part of a written employment contract with any such officer or director entered
into prior to the Effective Date, a copy of which has been delivered to the Lender; and 
 (s) cease conducting business with
Lenovo Information Products Co., Ltd. and/or Lenovo Group Limited (together, “Lenovo”); (ii) receive more than twenty percent (20%) of the total amount due from Lenovo later than one-hundred twenty (120) days from the
date when due to the Borrower; (iii) receive booked revenues equal to less than One Million United States Dollars (US$1,000,000) from Lenovo during the period from the Effective Date to that date which is three (3) months following the
Effective Date; or (iv) receive booked revenues equal to less than One Million United States Dollars (US$1,000,000) from Lenovo during the period from that date which is three (3) months following the Effective Date to the Maturity Date.

 Section 5.03 Reimbursement of Taxes. The Borrower shall pay all Taxes (including, without limitation, stamp
taxes), duties, fees or other charges payable on or in connection with the execution, issue, delivery, registration, notarization or enforcement of this Agreement, and the other Transaction Documents and shall, upon notice from the Lender, reimburse
the Lender for any such Taxes, duties, fees or other charges paid by the Lender thereon; provided, however, that in no event shall Borrower be obligated to pay or reimburse Lender for: 

(a) Taxes based on or measured by the overall pre-tax or net income of the Lender for Taxes in the nature of franchise taxes or taxes for
the privilege of doing business imposed by any jurisdiction or any political subdivision or taxing authority therein unless such Taxes are imposed as a result of the activities of the Security Parties within the relevant taxing jurisdiction; or

 (b) Taxes imposed by any jurisdiction or any political subdivision or taxing authority therein on the Lender that would not
have been imposed but for the Lender being organized in or conducting business in or maintaining a place of business in the relevant taxing jurisdiction, or engaging in activities or transactions in the relevant taxing jurisdiction that are
unrelated to the transactions contemplated by this Loan Agreement, but only to the extent such Taxes are not imposed as a result of the activities of the Security Parties within the relevant taxing jurisdiction or the legal status of the Security
Parties under the laws of the taxing jurisdiction. 

  
 18 

 ARTICLE VI 
 EVENTS OF DEFAULT 
 Section 6.01 General Acceleration Provision
upon Events of Default. If one or more of the events specified in this Section 6.01 (each an “Event of Default”) shall have happened and be continuing beyond the applicable cure period, the Lender, by notice to the
Borrower, may declare the principal of, all accrued interest and fees on, and all interest and fees yet to be accrued from the date of the Event of Default until the Maturity Date, the Loan or any part of any of them (together with any other amounts
accrued or payable under this Agreement) to be, and the same shall thereupon become, immediately due and payable (anything in this Agreement to the contrary notwithstanding), without any further notice and without any presentment, demand or protest
of any kind, all of which are hereby expressly waived by the Borrower, and take any further action available at law or in equity, including, without limitation, the sale of the Loan and all other rights acquired in connection with the Loan:

 (a) The Lender shall have failed to receive payment when due of principal or interest due under the Note within five
(5) days of the date due or shall have failed to receive any fees or any other amounts due under the Loan, the Note or any other Transaction Document within five (5) days of the date due. 

(b) The Security Parties shall have defaulted or failed to comply with the due observance or performance of any term, covenant or
agreement contained in this Agreement or in any Transaction Document, or any other document or agreement between the Lender and any Security Party entered into pursuant to this Agreement or any of the other Transaction Documents, and such default or
failure to comply shall continue uncured for ten (10) days after the delivery of written notice of such default or failure from the Lender. 
 (c) Any representation or warranty of the Security Parties made in this Agreement or any other Transaction Document shall be found to have been incorrect, false or misleading in any material respect as of
the date it was made or as of date of Closing, as if made again on such date, and shall continue to be incorrect, false or misleading. 
 (d) Any Government Authority shall have condemned, nationalized, seized, confiscated or otherwise expropriated all or any substantial part of the property or other assets or share capital of any Security
Party, or shall have assumed custody or control of such-property or other assets or of the business or operations or share capital, or shall have taken any action for the dissolution, winding up or liquidation of any Security Party or any action
that would prevent any Security Party from meeting its obligations to the Lender under the Transaction Documents. 
 (e) (i) Any
Security Party shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts as they come due or shall make a general assignment for the benefit of creditors; (ii) any Security Party shall
declare a moratorium on the payment of its debts; (iii) the commencement by any Security Party of proceedings to be adjudicated bankrupt or insolvent, or the consent by it to the commencement of bankruptcy or insolvency proceedings against it,
or the filing by it of a petition or answer or consent seeking reorganization, intervention or other similar relief under any applicable law, or 

  
 19 

 
the consent by it to the filing of any such petition or to the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) or of any
substantial part of its property; (iv) the commencement against any Security Party or any substantial part of their real property or any other assets of a proceeding in any court of competent jurisdiction under any bankruptcy or other
applicable law (as now or hereafter in effect) seeking their liquidation, winding up, dissolution, reorganization, arrangement, adjustment, or the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar
official), and any such proceeding shall continue undismissed, or any order, judgment or decree approving or ordering any of the foregoing shall continue unstayed or otherwise in effect, for a period of thirty (30) days; or (v) any other
event shall have occurred which under any applicable law would have an effect analogous to any of those events listed above in this subsection. 
 (f) Any Security Party shall have failed to make any payment when due (whether at stated maturity, by acceleration or otherwise) or otherwise to perform its obligations under any Debt (other than the
Loan) or under any agreement pursuant to which there is outstanding any Debt of any Security Party and such failure shall have continued for more than the applicable grace period (if any), and such Debt shall be in an aggregate amount of at least
Fifty Thousand Dollars ($50,000) or its equivalent. 
 (g) One or more judgments against any Security Party or attachments
against its respective property, which in the aggregate exceed Fifty Thousand Dollars ($50,000) or its equivalent in local operating currency, or which could reasonably expected to interfere materially and adversely with the conduct of the business
of any Security Party remain(s) unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of thirty (30) days from the date of entry of such judgment or attachment. 

(h) This Agreement or any other Transaction Document (or any component thereof relating to payment obligations, enforcement rights or
other material rights or other material obligations) is or shall have become invalid, illegal or unenforceable under applicable law, and continues to be invalid, illegal or unenforceable for a period of thirty (30) days. 

(i) Any license, permit or approval held by any Security Party shall have been suspended, canceled or revoked, except to the extent such
suspension, cancellation or revocation does not have and is not reasonably expected to have a Material Adverse Effect. 
 (j)
Any authorization necessary for the execution, delivery or performance by the Security Parties of any payment or other material obligations under this Agreement or any other Transaction Document or for the validity or enforceability of any of the
Security Parties’ obligations under this Agreement or under any other Transaction Document is not effectuated or given or is withdrawn or ceases to remain in full force or effect. 

(k) The validity of this Agreement or any other Transaction Document shall be contested by any legislative, executive or judicial body of
any jurisdiction, or any treaty, law, regulation, decree, or ordinance of any jurisdiction shall render any provision of this Agreement or any other Transaction Document invalid or unenforceable (including, but not limited to, any nationalization,
expropriation or moratorium on debt payment) or shall prevent or materially delay the performance or observance by any Security Party of its obligations hereunder or thereunder (as applicable). 

  
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 Section 6.02 Recovery of Amounts Due. If any amount payable hereunder is not
paid as and when due, the Security Parties hereby authorize the Lender to proceed, to the fullest extent permitted by applicable law, without prior notice, by right of set-off, banker’s lien or counterclaim, against any moneys, assets of the
Security Parties, or any collateral granted by the Security Parties under any Transaction Document, to the full extent of all amounts payable to the Lender. 
 ARTICLE VII 
 MISCELLANEOUS 

Section 7.01 Notices. Any notice, request or other communication to be given or made under this Agreement to the Parties
shall be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, courier (confirmed by facsimile), or facsimile (with a hard copy delivered within two
(2) Business Days) to the Party to which it is required or permitted to be given or made at such Party’s address specified below or at such other address as such Party shall have designated by notice to the Party given or making such
notice, request or other communication, it being understood that if any notice, request or other communication is given or delivered by one party to another hereunder in accordance with this Section 8.6, the failure to deliver a copy thereof to
any other person to whom copies are to be sent shall not affect the validity of any such notice, request or other communication or constitute a breach of this Agreement. 

 

			
	 For the Security Parties:
	  	
	
	 Comarco, Inc.

	 25541 Commercentre Drive
 Lake Forest, CA 92630

	 Facsimile: (949) 599-1430

	 Attention: Tom Lanni, President and CEO

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

	
	 Stradling Yocca Carlson & Rauth

	 660 Newport Center Drive, Suite 1600

Newport Beach, CA 92651

	 Facsimile: (949) 823-5150

	 Attention: Ben A. Frydman

	
	 For the Lender:

	
	 Broadwood Partners, L.P.

	 c/o Broadwood Capital, Inc.

	 724 Fifth Avenue, 9th Floor

	 New York, NY 10019

	 Facsimile: (212) 508-5756

	 Attention: Neal C. Bradsher

  
 21 

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

	
	 Lucosky Brookman LLP

	 33 Wood Avenue South, 6th Floor

	 Iselin, NJ 08830

	 Facsimile: (732) 395-4401

	 Attention: Joseph M. Lucosky, Esq. / Seth A. Brookman, Esq.

 Section 7.02 Conflict; Arms-Length Transaction. The Parties expressly acknowledge that, as of
the date hereof, (i) the Lender owns approximately twenty-one percent (21%) of the issued and outstanding common stock of the Borrower and the Borrower owns one hundred percent (100%) of the issued and outstanding common stock of the
Guarantor; (ii) pursuant to the corporate organizational documents of the Borrower, no shareholder vote is required in order to duly enter into this Agreement or consummate the transactions contemplated by this Agreement or the Transaction
Documents; (iii) the Lender has not directed, controlled or otherwise instructed the Borrower to enter into this Agreement or consummate the transactions contemplated by this Agreement or the Transaction Documents; (iv) Richard T. LeBuhn,
Senior Vice President of the Lender (“LeBuhn”), is currently a member of the board of directors of the Borrower; (v) LeBuhn has not participated in any discussions, negotiations or communications on behalf of the Borrower;
(vi) LeBuhn has abstained from any vote of the board of directors of the Borrower concerning this Agreement or the consummation of the transactions contemplated by this Agreement or the Transaction Documents; and (vii) LeBuhn’s
interests may be adverse to the interests of the Borrower and LeBuhn has participated in discussions, negotiations and communications on behalf of the Lender and such discussions, negotiations and communications have been conducted with the express
purpose of benefiting the Lender at the potential cost to the Borrower. The Parties hereby expressly waive any and all conflicts of interest which may be present given the aforementioned acknowledged facts and circumstances. Each Party hereby agrees
that this Agreement and the transactions contemplated by this Agreement and the Transaction Documents have been undertaken on an arms-length basis. 
 Section 7.03 English Language. Unless the Parties otherwise agree, all documents to be furnished or communications to be given or made under this Agreement shall be in English. Should this
Agreement be translated into any language other than English, the English language version of this Agreement shall prevail. 

Section 7.04 Reimbursement of Legal and Other Expenses; Enforcement. If any amount owing to the Lender under this Agreement
or any other Transaction Document shall be collected through enforcement of this Agreement, any refinancing or restructuring of the Loan in the nature of a work-out, settlement, negotiation, or any process of law, or shall be placed in the hands of
third Persons for collection, the Borrower shall pay (in addition to all monies then due in respect of the Loan or otherwise payable under this Agreement or any other Transaction Document) attorneys’ and other fees and expenses incurred in
respect of such collection. 
 Section 7.05 Applicable Law and Consent to Jurisdiction. 

(a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, United States of America,
without giving effect to the conflicts of laws principles thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York. 

  
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 (b) This Agreement and the other Transaction Documents to which the Security Parties are a
party, and any rights of the Lender arising out of or relating to this Agreement or any other Transaction Documents to which the Security Parties is a party, may, at the option of the Lender, be enforced by the Lender in the courts of the United
States of America located in the Southern District of the State of New York or in any other courts having jurisdiction. For the benefit of the Lender, the Security Parties hereby irrevocably agree that any legal action, suit or proceeding arising
out of or relating to this Agreement or any other Transaction Document may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York. By the execution and delivery of this Agreement,
the Security Parties hereby irrevocably consent and submit to the jurisdiction of any such court in any such action, suit or proceeding. Final judgment against any Security Party in any such action, suit or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment. Nothing contained herein or in any other Transaction Document shall affect the right of the Lender to commence legal proceedings or otherwise sue the Security Parties in any court having
jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and other legal papers upon the Security Parties in any manner authorized by the laws of any such jurisdiction. 

(c) The Security Parties irrevocably waive, to the fullest extent permitted by applicable law, any objection which it may now or
hereafter have to the laying of venue of any action, suit or proceeding arising out of or relating to this Agreement or any other Transaction Document, brought in the courts of the State of New York or in the United States District Court for the
Southern District of New York, and any claim that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Further, the Security Parties irrevocably waive, to the fullest extent permitted by applicable
law, any right it may now or hereafter have to the removal to a United States Federal Court of any action brought hereunder in a state court of the State of New York. 
 (d) EACH SECURITY PARTY HEREBY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT TO
WHICH IT IS A PARTY OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
 (e) To the extent that the Security Parties may,
in any suit, action or proceeding brought in a court arising out of or in connection with this Agreement or any other Transaction Document to which it is a party, be entitled to the benefit of any provision of law requiring the Lender in such suit,
action or proceeding to post security for the costs of the Security Parties or to post a bond or to take similar action, the Security Parties hereby irrevocably waive such benefit, in each case to the fullest extent now or hereafter permitted.

 (f) To the extent that any Security Party may be entitled in any jurisdiction to claim for itself or its assets immunity in
respect of its obligations under this Agreement or any other Transaction Document from any suit, execution, attachment (whether in aid of execution, 

  
 23 

 
before judgment or otherwise) or other legal process or to the extent that in any jurisdiction there may be attributed to itself or its assets such immunity (whether or not claimed), or to the
extent it might have the right to have a jury trial, each Security Party hereby irrevocably waives and agrees not to, as applicable, claim or exercise, such immunity and right to jury trial to the fullest extent permitted by the laws of such
jurisdiction. 
 Section 7.06 Successor and Assigns; Lender Representation. The Transaction Documents shall bind and
inure to the respective successors and assigns of the Parties, except that the Security Parties may not assign, grant, pledge, sell or otherwise transfer all or any part of its rights or obligations under the Transaction Documents without the prior
written consent of the Lender. 
 Section 7.07 Entire Agreement. This Agreement and the other Transaction Documents
contain the entire understanding of the Parties with respect to the matters covered hereby and supersede any and all other prior or contemporaneous written and oral communications, negotiations, commitments and writings with respect thereto. The
provisions of this Agreement may be waived, modified, supplemented or amended only by an instrument in writing signed by the authorized officer of each Party; provided that any provision hereof that is solely for the Lender’s benefit may
be waived by written instrument signed by an authorized officer of the Lender. 
 Section 7.08 Amendments. Any
provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Parties. 
 Section 7.09 Severability. In case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any law, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 7.10 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same agreement. 
 Section 7.11 Survival. 

(a) This Agreement and all covenants, agreements, representations and warranties made hereunder, in the other Transaction Documents, and
in any document, certificate or statement delivered pursuant hereto or in connection herewith shall be considered to have been relied upon by the other Parties and shall survive the execution and delivery of this Agreement and the making of the Loan
hereunder regardless of any investigation made by any such other Party or on its behalf, and shall continue in force until all amounts payable by Security Parties under the Transaction Documents shall have been fully paid in accordance with the
provisions hereof and thereof, and the Lender shall not be deemed to have waived, by reason of making the Loan, or any investigation on its part or on its behalf of the Security Parties, any Default that may arise by reason of such representation or
warranty proving to have been false or 

  
 24 

 
misleading, notwithstanding that the Lender may have had notice or knowledge of any such Default or may have had notice or knowledge that such representation or warranty was false or misleading
at the time the Funding was made hereunder. 
 (b) The obligations of the Borrower under Section 2.09 and
Section 2.10, and this ARTICLE VII hereof shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loan, or the termination of this Agreement or any provision
hereof. 
 Section 7.12 Exchange Rate. If at any time it is necessary to convert any amounts expressed in Dollars
into local operating currency, or vice-versa, pursuant to this Agreement, the exchange rate to be used shall be the exchange rate quoted by The Wall Street Journal one (1) Business Day prior to the date conversion is required. 

Section 7.13 Waiver. Neither the failure of, nor any delay on the part of, any Party in exercising any right, power or
privilege hereunder, or under any agreement, contract, indenture, document or instrument mentioned herein, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder, or under any
agreement, contract, indenture, document or instrument mentioned herein, preclude other or further exercise thereof or the exercise of any other right, power or privilege; nor shall any waiver of any right, power, privilege or default hereunder, or
under any agreement, contract, indenture, document or instrument mentioned herein, constitute a waiver of any other right, power, privilege or default or constitute a waiver of any default of the same or of any other term or provision. No course of
dealing and no delay in exercising, or omission to exercise, any right, power or remedy accruing to the Lender upon any default under this Agreement, or any other agreement shall impair any such right, power or remedy or be construed to be a waiver
thereof or an acquiescence therein; nor shall the action of the Lender in respect of any such default, or any acquiescence by it therein, affect or impair any right, power or remedy of the Lender in respect of any other default. All rights and
remedies herein provided are cumulative and not exclusive of any rights or remedies otherwise provided by law. 

Section 7.14 Indemnity. 
 (a) The Security Parties shall, at all times, indemnify and hold harmless (the “Indemnity”) the Lender and each of the Lender’s directors, officers, employees, agents, counsel and
advisors (each, an “Indemnified Person”) in connection with any losses, claims (including the cost of defending against such claims), damages, liabilities, penalties, or other expenses (other than Taxes, the indemnification for
which is provided elsewhere in this Agreement) arising out of or due to this Agreement, the other Transaction Documents, the extension of credit hereunder or the Loan, the use or intended use of the Loan or any investment or proposed investment of
the proceeds of the Loan by Secured Parties, which an Indemnified Person may incur or to which an Indemnified Person may become subject (each, a “Loss”). The Indemnity shall not apply to the extent that a court or arbitral tribunal with
jurisdiction over the subject matter of the Loss, and over the Lender and such other Indemnified Person had an adequate opportunity to defend its interests, determines that such Loss resulted from the gross negligence or willful misconduct of the
Indemnified Person, which determination results in a final, non-appealable judgment or decision of a court or tribunal of competent jurisdiction. The Indemnity 

  
 25 

 
is independent of and in addition to any other agreement of any party hereunder or under any Transaction Document to pay any amount to the Lender and any exclusion of any obligation to pay any
amount under this paragraph shall not affect the requirement to pay such amount under any other section hereof or under any of the other Transaction Documents or any other agreement entered into pursuant thereto. 

(b) Each Security Party agrees not to assert on any theory of liability any claim against any Indemnified Person for special, indirect,
consequential or punitive damages arising out of or otherwise relating to the Transaction Documents or to any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Loan. 

(c) Without prejudice to the survival of any other agreement of any of the Parties hereunder, the agreements and the obligations of the
Parties contained in this Section 7.14 shall survive the termination of each other provision hereof and the payment of all amounts payable to the Lender hereunder. 
 Section 7.15 Fees and Expenses. The Lender shall have received, on or before the Effective Date, all fees and reimbursement for all expenses required to be paid by the Borrower, including, but
not limited to, all fees and expenses of Lender’s legal counsel. 
 Section 7.16 No Usury. This Agreement, the
Note and all other Transaction Documents are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration or otherwise, shall the amount paid or agreed to be paid to the Lender for the Loan exceed the
maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law,
then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the Lender shall ever receive interest, or anything which might be deemed interest under applicable law, which would
exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the principal amount owing on account of the Loan and not to the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal of the Loan, such excess shall be refunded to the Borrower. All sums paid or agreed to be paid to the Lender for the Loan shall, to the extent permitted by applicable law, be deemed to be amortized, prorated, allocated and
spread throughout the full term of such Debt until payment in full so that the actual rate of interest on account of such Debt is uniform throughout the term thereof. The terms and provisions of this paragraph shall control and supersede every other
provision of this Agreement and the Notes. 
 Section 7.17 Further Assurances. From time to time, the Security
Parties shall perform any and all acts and execute and deliver to the Lender such additional documents as may be necessary or as requested by the Lender to carry out the purposes of this Agreement or any other Transaction Documents or to preserve
and protect the Lender’s rights as contemplated herein or therein. 
 Section 7.18 Judgment Currency. The
obligations of the Security Parties under this Agreement to the Lender to make payment in Dollars shall not be discharged or satisfied by any currency or recovery pursuant to any judgment expressed in or converted into any other currency

  
 26 

 
or in another place except to the extent that on the Business Day following receipt of any sum adjudged to be so due in the judgment currency, the Lender may in accordance with normal banking
procedures purchase Dollars in the amount due to the Lender with the judgment currency and transfer Dollars to New York, New York with the amount of the judgment currency so adjudged to be due; and each Security Party hereby, as a separate
obligation and notwithstanding any such judgment, agrees, to the fullest extent that it may effectively do so to indemnify the Lender against, and to pay the Lender on demand, in Dollars, the amount (if any) by which the sum originally due to the
Lender in Dollars hereunder exceeds the amount of the Dollars so purchased and transferred. If the amount of Dollars so purchased exceeds the sum originally due to the Lender, the Lender shall remit such excess to the Borrower. 

[ signature pages follow ] 

  
 27 

 IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have
caused this Agreement to be signed in their respective names as of the date first above written. 
  

			
	COMARCO, INC.
		
	By:	 	 /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	President & CEO

  

			
	BROADWOOD PARTNERS, L.P.
		
	By:	 	 /s/ Neal C. Bradsher

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

 [ signature page 1 to Loan Agreement ] 

 CONSENT AND AGREEMENT 
 The undersigned, referred to in the foregoing Loan Agreement as a guarantor, hereby consents and agrees to said Loan Agreement and to the payment of the amounts contemplated therein, to the documents
contemplated thereby and to the provisions contained therein relating to conditions to be fulfilled and obligations to be performed by it pursuant to or in connection with said Loan Agreement to the same extent as if the undersigned were a party to
said Loan Agreement. 
  

			
	COMARCO WIRELESS TECHNOLOGIES, INC.
		
	By:	 	 /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	President & CEO

 [ signature page 2 to Loan Agreement ] 

 EXHIBIT B 
 GUARANTEE 
 ISSUED BY 

COMARCO WIRELESS TECHNOLOGIES, INC. 
 as Grantor 
 IN FAVOR OF 

BROADWOOD PARTNERS, L.P. 
 as Grantee 
 July 27, 2012 

 GUARANTY 
 THIS GUARANTY (this “Guaranty”), dated as of July 27, 2012, is made by COMARCO WIRELESS TECHNOLOGIES, INC., a corporation incorporated under the laws of the State of Delaware (the
“Guarantor”), in favor of BROADWOOD PARTNERS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (the “Lender”). 

W I T N E S S E T H: 
 WHEREAS, pursuant to that certain Senior Secured Six Month Term Loan Agreement, dated July 27, 2012 (the “Loan Agreement”), made by and among (i) the Lender, as lender,
(ii) Comarco, Inc., a corporation incorporated under the laws of the State of California, as borrower (the “Borrower”), as borrower, and (iii) the Guarantor, as guarantor, the Lender has agreed to provide to the Borrower a
senior secured term loan in the principal amount of Two Million United States Dollars (US$2,000,000) (the “Loan”); and 
 WHEREAS, it is a condition precedent to the Lender making the Loan available to the Borrower under the Loan Agreement that the Guarantor enter into this Guaranty and otherwise agree to be bound by the
terms of this Guaranty. 
 NOW, THEREFORE, in consideration of the premises set forth above, the covenants and agreements
hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as set forth below: 
 SECTION 1. Defined Terms. Except as otherwise defined herein, terms defined in the Loan Agreement shall have the same meaning when used herein. 

SECTION 2. Guaranty. 
 2.1 Guaranty of Payment and Performance. The Guarantor, as primary obligor and not merely as surety, hereby irrevocably, unconditionally and absolutely guarantees for the benefit of the Lender, on
first demand (a) the full and prompt payment, when due, whether by acceleration or otherwise, of all amounts owing by the Borrower to the Lender under the Transaction Documents, together with any costs and expenses (including, without
limitation, reasonable attorneys’ fees) incurred in connection therewith by the Lender and the performance by the Borrower of its obligations and, in case of extension of time of payment or renewal in whole or in part of the said obligations of
the Borrower, the prompt payment when due of all said amounts according to such extension or extensions or renewal or renewals, whether by acceleration or otherwise and (b) the punctual and full performance and compliance by the Borrower of
each and every duty, covenant, agreement and obligation thereof under the Transaction Documents (all obligations referred to in clauses (a) and (b) above are herein referred to as the “Obligations”). 

2.2 Nature of Guaranty. This Guaranty is a guaranty of payment, performance and compliance and not of collection and the Guarantor
expressly agrees that it shall not be necessary or required that the Lender exercise any right, assert any claim or demand or enforce 

 
any remedy whatsoever against the Borrower or any other Person before or as a condition to the obligations of the Guarantor hereunder. This Guaranty is a primary obligation of the Guarantor and
shall be an absolute, unconditional, present, and continuing obligation and shall not be subject to any counterclaim, setoff, deduction, diminution, abatement, recoupment, suspension, deferment, reduction, or defense based on any claim the Guarantor
or any other Person may have against the Borrower, the Lender or any other Person. This Guaranty shall only be discharged by the complete and indefeasible satisfaction of all of the Obligations and shall not be released, discharged or affected by
any circumstance whatsoever, including without limitation: 
 (a) the unenforceability, invalidity, irregularity or lack of
genuineness of any of the Transaction Documents or any of the obligations under the Transaction Documents; 
 (b) any amendment,
modification, termination, or removal of, or addition or supplement to, the Transaction Documents, or any change in time, manner, or place of payment or performance of any Obligation; 

(c) any assignment, mortgage, release, exchange, addition, or transfer of any Pledged Interest; 

(d) any failure, refusal, omission or delay on the part of the Borrower, the Lender or any other Person to conform or comply with any
term of the Transaction Documents or any other agreement; 
 (e) any waiver, consent, extension, indulgence, surrender,
settlement, subordination, release, compromise, or other agreement, or the exercise or non-exercise of any right or remedy thereunder, with or without consideration; 
 (f) the occurrence and/or continuance of any bankruptcy, insolvency, reorganization, liquidation, arrangement, adjustment of debt, relief of debtors, dissolution, or similar proceeding with respect to the
Borrower, the Lender, or any other Person, including without limitation any modification of the Borrower’s obligations under any Transaction Document in connection with any such proceeding; 

(g) any defect in the title, condition, compliance with specifications, design, operation, or fitness for use of, or any damage to or
loss of, or governmental prohibition or restriction, condemnation, requisition, or seizure of, any collateral, including, but not limited to, the Pledged Interests, for any reason; 

(h) any merger, consolidation, restructuring, termination of existence, sale of assets, or change in the ownership of any membership
interests, shares of capital stock or other equity interest of the Borrower or the Guarantor; 
 (i) any present or future law,
regulation, or order in any jurisdiction (whether of right or in fact) or any agency thereof affecting any term of any Obligation or any rights of the Lender with respect thereto, including, without limitation, any law, regulation or order
purporting to vary the terms of payment or to restrict the right or power of the Borrower or of the Guarantor or either of them to make payment of any of their respective Obligations to the Lender; or 

 (j) any other circumstances whatsoever which might otherwise constitute a defense available
to, or a discharge of, either the Borrower or the Guarantor. 
 SECTION 3. Representations and Warranties. The
Guarantor hereby represents and warrants to the Lender (which representations and warranties shall survive the execution and delivery of this Guaranty), that the representations set forth in ARTICLE III of the Loan Agreement (updated mutatis
mutandis) insofar as they relate to it (and, to the knowledge of the Guarantor, insofar as they relate to other parties) are true and correct and hereby incorporate, repeat and represent, on its own behalf, without limitation, such
representations as though they were set forth herein at length. 
 SECTION 4. Covenants. 

4.1 Affirmative Covenants. The Guarantor hereby covenants and undertakes for the benefit of the Lender, that from the date hereof
and so long as any Obligation remains unsatisfied, it shall: 
 (a) duly perform and observe the terms of this Guaranty;

 (b) immediately upon obtaining knowledge thereof, inform the Lender of the occurrence of (i) any Event of Default or of
any event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default, (ii) any litigation or governmental proceeding pending or threatened against it which could reasonably be expected to have a material
adverse effect on its or the Borrower’s respective businesses, assets, operations, property or financial condition and (iii) any event or condition which is reasonably likely to have a material adverse effect on its ability to perform its
obligations under this Guaranty; 
 (c) obtain every consent and do all other acts and things which may from time to time be
necessary or advisable for the continued due performance of all its obligations under this Guaranty; and 
 (d) perform each and
every covenant and undertaking in the Loan Agreement applicable to it or procure the performance thereof as though such covenants and undertakings were set forth at length herein. 

4.2 Negative Covenants. The Guarantor hereby covenants and undertakes with the Lender that, from the date hereof and so long as
any principal, interest or other monies are owing by the Borrower under or in connection with any Transaction Document, it shall not, without the prior written consent of the Lender other than as expressly permitted by the terms of the Transaction
Documents: 
 (a) consolidate with, or merge into, any corporation, or merge any corporation into it; or 

(b) sell, or otherwise dispose of, or grant any security interest in, lien on or encumbrance over any of its assets except in the
ordinary course of business. 

 SECTION 5. Payments. 

5.1 Payment. (a) All payments by the Guarantor under this Guaranty shall be made in the same manner as the Borrower is
required to make payments under the Loan Agreement as specifically set forth therein. 
 (a) On any amount or amounts for which
the Guarantor is liable hereunder, interest shall be due at the Default Rate and/or the Maturity Default Rate specified in ARTICLE II in the Loan Agreement from the due date thereof under the Loan Agreement until the date of payment of such amount
by the Guarantor or the Borrower. 
 5.2 Currency of Account. (a) If for the purpose of obtaining or enforcing a
judgment in any court in any country, it becomes necessary to convert into any other currency (the “Judgment Currency”) an amount due in Dollars under this Guaranty then the conversion shall be made, in the discretion of the Lender,
at the rate of exchange prevailing either on the date of default or on the day before the day on which the judgment is given or the order for enforcement is made, as the case may be (the “Conversion Date”) provided that the Lender
shall not be entitled to recover under this clause any amount in the Judgment Currency which exceeds at the Conversion Date the amount in Dollars due under this Guaranty. 
 (a) If there is a change in the rate of exchange prevailing between the Conversion Date and the date of actual payment of the amount due, the Guarantor shall pay such additional amounts (if any, but in
any event not a lesser amount) as may be necessary to ensure that the amount paid in the Judgment Currency when converted at the rate of exchange prevailing on the date of payment will produce the amount then due under this Guaranty in Dollars; any
excess over the amount due received or collected by the Lender shall be remitted to the Guarantor. 
 (b) Any amount due from
the Guarantor under this Section 5.2 shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Guaranty or any of the other Transaction Documents; provided,
however, that nothing herein shall be construed so as to permit the Lender to recover amounts from the Guarantor previously paid by any other party other than as provided herein. 

(c) The term “rate of exchange” in this Section 5.2 means the rate at which the Lender in accordance with its normal
practices is able on the relevant date to purchase Dollars with the Judgment Currency and includes any costs of exchange (including any premium) payable in connection with such purchase. 

5.3 Taxes; Withholdings. Should the Guarantor be compelled by law, regulation, decree, order or stipulation to make any deduction
or withholding on account of any present or future taxes (including, without limitation, property, sales, use, consumption, franchise, capital, occupational, license, value added, excise, stamp, levies and imposts taxes and customs and other
duties), assessments, fees (including, without limitation, documentation, license, filing and registration fees) and charges, of any kind or nature whatsoever, together with any penalties, fines, additions to tax or interest thereon, however
imposed, withheld, levied, or assessed by any country or governmental subdivision thereof or therein, any international authority or any other taxing authority (“Taxes”) from any payment due under this Guaranty for

 
the account of the Lender, the amount due from the Guarantor in respect of such payment shall be increased by such additional amounts necessary to ensure that, after the making of such deduction
or withholding with respect to Taxes, the Lender receives a net amount equal to the amount which it would have received had no such deduction or withholding with respect to Taxes been made and the Guarantor shall indemnify the Lender against any
losses or costs incurred by it by reason of any failure of the Guarantor to make any such deduction or withholding or by reason of any such additional payment not being made to the Lender on the due date for such payment. The Guarantor shall deliver
to the Lender evidence satisfactory to the Lender including all relevant tax receipts that such Tax has been duly remitted to the appropriate authority. Notwithstanding the preceding sentence, the Guarantor shall not be required to pay additional
amounts or otherwise indemnify the Lender for or on account of: 
 (a) Taxes based on or measured by the overall net income of
the Lender for Taxes in the nature of franchise taxes or taxes for the privilege of doing business imposed by any jurisdiction or any political subdivision or taxing authority therein unless such Taxes are imposed as a result of the activities of
the Borrower or the Guarantor within the relevant taxing jurisdiction; or 
 (b) Taxes imposed by any jurisdiction or any
political subdivision or taxing authority therein on the Lender that would not have been imposed but for the Lender being organized in or conducting business in or maintaining a place of business in the relevant taxing jurisdiction, or engaging in
activities or transactions in the relevant taxing jurisdiction that are unrelated to the transactions contemplated by the Loan Agreement, but only to the extent such Taxes are not imposed as a result of the activities of the Borrower or the
Guarantor within the relevant taxing jurisdiction or the legal status of the Borrower or the Guarantor under the laws of the taxing jurisdiction. 
 SECTION 6. Preservation of Rights. 
 6.1 The Guarantor hereby
consents: (a) that from time to time, without notice to or further consent of the Guarantor, the time for the performance and/or observance by the Borrower or of the Guarantor of any of the agreements, covenants or conditions in the Transaction
Documents, or any of them, on the part of the Borrower or the Guarantor, or any of them, to be performed and/or observed may be waived or the time of performance thereof extended by the Lender and payment of any amounts owing or payable under any
such document may be extended or any such document may be renewed in whole or in part or modified in any respect or any collateral or arrangement provided for by any such document as security for any obligation contemplated by any such document may
be exchanged, surrendered, released or otherwise dealt with as the Lender may determine; (b) that the time for the making of any payment of any obligation hereby guaranteed may be accelerated in accordance with any agreement between the Lender
and the Borrower or the Guarantor, and that any of the acts mentioned in any of said documents may be done; and (c) that any other guarantor of any of the obligations hereby guaranteed and/or any document or security therefor may be released in
whole or in part without affecting the obligations of the Guarantor hereunder. 

 6.2 The Guarantor hereby waives, to the extent permitted by applicable law: 

(a) any notice required by law or otherwise to preserve any rights hereunder or under any other Transaction Document against the
Guarantor or against the Borrower, including without limitation: (i) acceptance, presentment, demand, protest, or proof of nonperformance of any Obligation, (ii) notice of the sale of any collateral, including, but not limited to, the
Pledged Collateral or the transfer by the Borrower of any interest in any collateral, including, but not limited to, the Pledged Collateral or any Transaction Document, (iii) notice of the acceptance of this Guaranty and of any change in the
Borrower’s respective financial condition, (iv) notices of the creation, renewal, extension, or accrual of any Obligation or any of the matters referred to herein, or any notice of or proof of reliance by the Lender upon this Guaranty or
acceptance of this Guaranty (the Obligations, and any of them, shall conclusively be deemed to have been created, contracted, incurred or renewed, extended, amended or waived in reliance upon this Guaranty and all dealings between the Borrower or
the Guarantor and the Lender shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty), and (v) but excluding notices which may be required by statute, rule of law or otherwise, now or hereafter in effect,
to preserve intact any rights of the Lender against the Guarantor; 
 (b) the prior exercise of any remedy contained in any
Transaction Document or otherwise available to the Lender; 
 (c) any requirement of diligence on the part of any Person
including without limitation diligence in making any claim or commencing suit hereon or on any other Transaction Document, and any requirement to mitigate damages or exhaust remedies under any Transaction Document; 

(d) the right to interpose all substantive and procedural defense of the law of guaranty, indemnification, suretyship, or other
applicable law except the defense of prior payment or prior performance by the Borrower or the Guarantor of the Obligations; 

(e) all rights and remedies accorded by applicable laws to guarantors or sureties, including any extension of time conferred by any law
now or hereafter in effect; 
 (f) any right or claim of right to cause a marshaling of the Borrower’s respective assets or
to cause the Lender to proceed against the Borrower or any collateral held by any Lender at any time or in any particular order; 
 (g) rights to the enforcement, assertion, or exercise by the Lender of any right, power, privilege, or remedy conferred herein or any other Transaction Document or otherwise; 

(h) notices of the sale, transfer or other disposition of any right, title to, or interest in any Transaction Document; and 

(i) any other right whatsoever which might otherwise constitute a discharge, release, or defense of the Guarantor hereunder or of the
Borrower or the Guarantor under any Transaction Document or which might otherwise limit recourse against the Borrower or the Guarantor. 
 No
failure to exercise and no delay in exercising, on the part of the Lender, any right, power, or privilege, shall operate as a waiver thereof, nor shall any single or partial exercise of any right,

 
power, or privilege, preclude any other or further exercise thereof, or the exercise of any other power or right. The obligations of the Guarantor hereunder shall not be affected by receipt by
the Lender of any proceeds of any security at any time held by the Lender. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law. 

6.3 The Guarantor agrees that so long as the Borrower has any actual or contingent liability under the Transaction Documents any rights
which the Guarantor may at any time have by reason of the performance by the Guarantor of its obligations hereunder (a) to be indemnified by the Borrower and/or (b) to claim any contribution from any other guarantor of the Borrower’s
obligations under the Transaction Documents and/or (c) to take the benefit (in whole or in part) of any security taken pursuant to this Guaranty or any other Transaction Document by all or any of the persons to whom the benefit of the
Guarantors’ obligations are given, shall be exercised by the Guarantor in such manner and upon such terms as the Lender may require and further agrees to hold any monies at any time received by it as a result of the exercise of any such rights
or otherwise for and on behalf of and to the order of the Lender, for application in or towards payment of any amounts at any time owed by the Borrower under the Transaction Documents. 

6.4 The Guarantor agrees that its liabilities hereunder shall be unconditional irrespective of any other circumstance which might
otherwise constitute a discharge at law or in equity of a guarantor or surety. The Guarantor guarantees that all payments made by the Borrower, the Guarantor, or any of them, to the Lender on any Obligation will, when made, be final and agrees that,
if any such payment is recovered from, or repaid by, the Lender in whole or in part in any bankruptcy, insolvency or similar proceeding instituted by or against the Borrower, or the Guarantor, or any of them, this Guaranty shall continue to be fully
applicable to such obligation to the same extent as though the payment so recovered or repaid had never been originally made on such obligation. 
 6.5 The Lender may enforce the obligations of the Guarantor hereunder without in any way first pursuing or exhausting any other rights or remedies which the Lender may have against the Borrower, or
against any other Person or against any security the Lender may hold. 
 6.6 The Guarantor hereby irrevocably waives all rights
of subrogation (whether contractual, under Section 509 of Title 11 of the United States Code entitled “Bankruptcy” as now or hereafter in effect, or any successor thereto (herein called the “Bankruptcy Code”),
under common law, or otherwise) to the claims of the Lender against the Borrower and all contractual, statutory or common law rights of contribution, reimbursement, indemnification and similar rights and “claims” (as such term is defined
in the Bankruptcy Code) against the Borrower which arise in connection with, or as a result of, this Guaranty, until such time as the obligations of the Borrower under or in connection with the Transaction Documents have been indefeasibly paid in
full. 
 6.7 The Guarantor shall not assign, transfer, hypothecate or dispose of any claim that it has or may have against the
Borrower while any indebtedness of the Borrower to the Lender remains unpaid, without the written consent of the Lender. 

 6.8 Notice of acceptance by the Lender of this Guaranty and of the incurring of any or all
of the obligations hereby guaranteed is hereby waived by the Guarantor, and this Guaranty and all of the terms and provisions hereof shall immediately be binding upon the Guarantor from the date of execution hereof. 

SECTION 7. Fraudulent Conveyances; Fraudulent Transfers. (a) The Guarantor, and by its acceptance of this Guaranty,
the Lender, hereby confirms that it is the intention of all such Persons that this Guaranty and the Obligations of the Guarantor hereunder do not constitute a fraudulent transfer or conveyance for purposes of any Proceeding, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of the Guarantor hereunder. To effectuate the foregoing intention, the Lender and the
Guarantor hereby irrevocably agree that the Obligations of the Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the Obligations of the Guarantor under this Guaranty not constituting a fraudulent
transfer or conveyance. 
 (a) The Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall
be required to be made to the Lender under this Guaranty or any other guaranty, the Guarantor shall contribute, to the maximum extent permitted by law, such amounts to each other guarantor so as to maximize the aggregate amount paid to the Lender
under or in respect of the Transaction Documents. 
 SECTION 8. Miscellaneous. 

8.1 Further Assurances. The Guarantor agrees that if this Guaranty shall, in the reasonable opinion of the Lender, at any time be
deemed by the Lender, for any reason, insufficient in whole or in part to carry out the true intent and spirit hereof, it shall execute or cause to be executed such other documents or deliver or cause to be delivered such further assurances as in
the opinion of the Lender may be required in order to more effectively accomplish the purposes of this Guaranty including, without limitation, an alternative guaranty or such other alternative agreement as the Lender shall require. 

8.2 Remedies Cumulative and Not Exclusive; No Waiver. Each and every right, power and remedy herein given to the Lender shall be
cumulative and shall be in addition to every other right, power and remedy of the Lender now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy, whether herein given or otherwise existing, may be
exercised from time to time, in whole or in part, and as often and in such order as may be deemed expedient by the Lender, and the exercise or the beginning of the exercise of any right, power or remedy shall not be construed to be a waiver of the
right to exercise at the same time or thereafter any other right, power or remedy. No failure, delay or omission by the Lender in the exercise of any right or power or in the pursuance of any remedy accruing upon any breach or default by the
Guarantor shall impair any such right, power or remedy or be construed to be a waiver of any such right, power or remedy or to be an acquiescence therein; nor shall the acceptance by the Lender of any security or of any payment of or on account of
any of the amounts due from the Guarantor to the Lender and maturing after any breach or default or of any payment on account of any past breach or default be construed to be a waiver of any right with respect to any future breach or default or of
any past breach or default not completely cured thereby. 

 8.3 Successors and Assigns. This Guaranty and all obligations of the Guarantor
hereunder shall be binding upon the successors and assigns of the Guarantor and shall, together with the rights and remedies of the Lender hereunder, inure to the benefit of the Lender, its respective successors and assigns. 

8.4 Waiver; Amendment. None of the terms and conditions of this Guaranty may be changed, waived, modified or varied in any manner
whatsoever unless in writing duly signed by the Guarantor and the Lender. 
 8.5 Invalidity. If any provision of this
Guaranty shall at any time, for any reason, be declared invalid, void or otherwise inoperative by a court of competent jurisdiction, such declaration or decision shall not affect the validity of any other provision or provisions of this Guaranty, or
the validity of this Guaranty as a whole and, to the fullest extent permitted by law, the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Lender in order to carry
out the intentions of the parties hereto as nearly as may be possible. The invalidity and unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 8.6 Notices. Any notice, request or other communication to be given or made under this Guaranty to the Parties shall
be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, international courier (confirmed by facsimile), or facsimile (with a hard copy delivered within two
(2) Business Days) to the Party to which it is required or permitted to be given or made at such Party’s address specified below or at such other address as such Party shall have designated by notice to the Party given or making such
notice, request or other communication, it being understood that the failure to deliver a copy of any notice, request or other communication to a Party to whom copies are to be sent shall not affect the validity of any such notice, request or other
communication or constitute a breach of this Guaranty. 
  

			
	 For the Guarantor:
	  	
	
	 Comarco Wireless Technologies, Inc.

	 25541 Commercentre Drive

	 Lake Forest, CA 92630

	 Facsimile: (949) 599-1430 Attention: Tom Lanni, President and CEO

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

	
	 Stradling Yocca Carlson & Roth

	 660 Newport Center Drive, Suite 1600

	 Newport Beach, CA 92651

	 Facsimile: (949) 823-5150

	 Attention: Ben A. Frydman

			
	 For the Lender:
	  	
	
	 Broadwood Partners, L.P.

	 c/o Broadwood Capital, Inc.

	 724 Fifth Avenue, 9th Floor

	 New York, NY 10019

	 Facsimile: (212) 508-5756

	 Attention: Neal C. Bradsher

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

	
	 Lucosky Brookman LLP

	 33 Wood Avenue South, 6th Floor

	 Iselin, NJ 08830

	 Facsimile: (732) 395-4401

	 Attention: Joseph M. Lucosky, Esq. / Seth A. Brookman, Esq.

 8.7 Electronic Delivery. Delivery of an executed copy of this Guaranty by facsimile or electronic
transmission shall be deemed as effective as delivery of an originally executed copy. In the event that the Guarantor delivers an executed copy of this Guaranty by facsimile or electronic transmission, the Guarantor shall also deliver an originally
executed copy as soon as practicable, but the failure of the Guarantor to deliver an originally executed copy of this Guaranty shall not affect the validity or effectiveness of this Guaranty. 

8.8 References. References herein to Sections, Exhibits and Schedules are to be construed as references to sections of, exhibits
to, and schedules to, this Guaranty, unless the context otherwise requires. 
 8.9 Headings. In this Guaranty, Section
headings are inserted for convenience of reference only and shall not be taken into account in the interpretation of this Guaranty. 
 8.10 Termination. If the Borrower shall pay and discharge all of its obligations under or in connection with the other Transaction Documents or is released therefrom in accordance with the terms
thereof, all of the right, title and interest herein assigned all revert to the Guarantor and this Guaranty shall terminate. 

SECTION 9. Applicable Law, Jurisdiction and Waivers. 

9.1 Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York. 
 9.2 Submission to Jurisdiction. The Guarantor hereby irrevocably submits to the jurisdiction of the courts of the State of New York and of the United States District Court for

 
the Southern District of New York in any action or proceeding brought against it by the Lender under this Guaranty or under any document delivered hereunder and hereby irrevocably agrees that
valid service of summons or other legal process on it may be effected by serving a copy of the summons and other legal process in any such action or proceeding on the Guarantor by mailing or delivering the same by hand to the Guarantor at the
address indicated for notices in this Guaranty. The service, as herein provided, of such summons or other legal process in any such action or proceeding shall be deemed personal service and accepted by the Guarantor as such, and shall be legal and
binding upon the Guarantor for all the purposes of any such action or proceeding. Final judgment (a certified or exemplified copy of which shall be conclusive evidence of the fact and of the amount of any indebtedness of the Guarantor to the Lender)
against the Guarantor in any such legal action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment. The Guarantor shall advise the Lender promptly of any change of address for the purpose of service
of process. Notwithstanding anything herein to the contrary, the Lender may bring any legal action or proceeding in any other appropriate jurisdiction. 
 9.3 WAIVER OF IMMUNITY. TO THE EXTENT THAT THE GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM SUIT, JURISDICTION OF ANY COURT OR ANY LEGAL PROCESS (WHETHER THROUGH ATTACHMENT PRIOR TO
JUDGMENT, ATTACHMENT IN AID OF EXECUTION, EXECUTION OF A JUDGMENT, OR FROM ANY OTHER LEGAL PROCESS OR REMEDY) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
GUARANTY. 
 9.4 WAIVER OF JURY TRIAL. EACH OF THE GUARANTOR AND THE LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY WAIVES
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO OR ANY BENEFICIARY HEREOF ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS GUARANTY. 

[ signature page follows ] 

 IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed and delivered on
the day and year first above written. 
  

			
	COMARCO WIRELESS TECHNOLOGIES, INC.
	
	 By: /s/ Thomas W. Lanni
 Name: Thomas W. Lanni

	Title:	 	President & CEO

  

			
	ACCEPTED AND AGREED:
	
	BROADWOOD PARTNERS, L.P.
		
	By:	 	 /s/ Neal C. Bradsher

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

 EXHIBIT C 
 PLEDGE AGREEMENT 
 BETWEEN 

COMARCO, INC. 
 as Pledgor 
 AND 

BROADWOOD PARTNERS, L.P. 
 as Pledgee 
 July 27, 2012 

 PLEDGE AGREEMENT 

THIS PLEDGE AGREEMENT (this “Pledge Agreement”), dated as of July 27, 2012, is made by and between COMARCO, INC., a
corporation incorporated under the laws of the State of California (the “Pledgor”), as pledgor, and BROADWOOD PARTNERS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (the
“Pledgee”), as pledgee. 
 W I T N E S S E T H: 

WHEREAS, pursuant to that certain Senior Secured Six Month Term Loan Agreement, dated July 27, 2012 (the “Loan
Agreement”), made by and among (i) the Pledgee, as lender; (ii) the Pledgor, as borrower; and (iii) Comarco Wireless Technologies, Inc., a corporation incorporated under the laws of the State of Delaware, as guarantor (the
“Guarantor”), the Pledgee has agreed to provide to the Pledgor a term loan in the principal amount of Two Million United States Dollars (US$2,000,000) (the “Loan”); 

WHEREAS, as of the date hereof, the Pledgor is the registered and beneficial owner of 3,065,000 issued and outstanding shares of capital
stock (the “Pledged Shares”) of the Guarantor (in such capacity, the “Pledged Company”), and the Pledged Shares are represented by a share certificate bearing numbers 1,2,8,10,12 & 16 (the
“Certificates”); 
 WHEREAS, it is a condition precedent to the Pledgee making the Loan available to the
Pledgor under the Loan Agreement that the Pledgor execute and deliver to the Pledgee, as security for the obligations of the Pledgor to the Pledgee, a pledge of all of the Pledgor’s right, title and interest in and to the Pledged Shares; and

 NOW, THEREFORE, in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Pledgor and the Pledgee agree as set forth below: 
 SECTION 1. Defined Terms. Except as otherwise defined herein, terms defined in the Loan Agreement shall have the same meaning when used herein. 

SECTION 2. Grant of Security. As security for (a) the full and prompt payment, when due, whether by acceleration or
otherwise, of all amounts owing by the Pledgor to the Pledgee under the Transaction Documents and (b) the punctual and full performance and compliance by the Pledgor of each and every duty, covenant, agreement and obligation thereof under the
Transaction Documents (all obligations referred to in clauses (a) and (b) above are herein referred to as the “Obligations”), the Pledgor hereby pledges, assigns, transfers and delivers to the Pledgee the Pledged Shares and
hereby grants to the Pledgee a first priority lien on and a first priority security interest in the following (collectively, the “Pledged Collateral”): 
 (i) the Pledged Shares and all capital, revenue, profit, income, gain or other property or proceeds, return on contribution or otherwise with respect to the Pledged Shares; 

  
 2 

 (ii) all securities, moneys or property representing dividends or interest on any of the
Pledged Shares, or representing a distribution in respect of the Pledged Shares, or resulting from a split-up, revision, reclassification or other like change of the Pledged Shares or otherwise received in exchange therefor, and any subscription
warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Shares (exclusive of any equity holder loan); 
 (iii) all right, title and interest of Pledgor in, to and under any policy of insurance payable by reason of loss or damage to the Pledged Shares and any other Pledged Collateral; 

(iv) all other payments due or to become due to the Pledgor in respect of the Pledged Shares whether under any organizational document or
otherwise, whether as contractual obligations, damages or otherwise; 
 (v) all “accounts”, “general
intangibles”, “instruments” and “investment property” (in each case as defined in the Uniform Commercial Code of the State of New York (the “UCC”)) constituting or relating to the foregoing; 

(vi) all Proceeds of any of the foregoing property of Pledgor (including, without limitation, any proceeds of insurance thereon, all
“accounts”, “general intangibles”, “instruments” and “investment property”, in each case as defined in the UCC, constituting or relating to the foregoing); and 

(vii) all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments
representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all
thereof. 
 SECTION 3. Pledge Documents. Concurrently with the execution of this Pledge Agreement and upon the
circumstances described in Section 6 hereof, the Pledgor shall execute and deliver to the Pledgee an irrevocable proxy in favor of the Pledgee in respect of the Pledged Shares of the Pledged Company in the form set out in Exhibit A
hereto (the “Irrevocable Proxy”) and shall deliver to the Pledgee the Certificate together with a signed, undated instrument of transfer in the form set out in Exhibit B hereto (an “Instrument of Transfer”)
pertaining thereto duly executed in blank. 
 SECTION 4. Representations and Warranties. The Pledgor represents
and warrants that: 
 (a) it is the legal and beneficial owner of, and has good and marketable title to, the Pledged Collateral,
subject to no pledge, lien, mortgage, hypothecation, security interest, charge, option or other encumbrance whatsoever, except the lien and security interest created and contemplated by this Pledge Agreement; 

(b) it has full power, authority and legal right to execute, deliver and perform its obligations under this Pledge Agreement and to
create the lien and security interest contemplated by this Pledge Agreement; 

  
 3 

 (c) the Pledged Shares of the Pledged Company (i) have been duly and validly created
pursuant to the relevant organizational documents of the Pledged Company, (ii) constitute one hundred percent (100%) of the total issued and outstanding capital stock of the Pledged Company and (iii) are evidenced by the Certificate;

 (d) the Pledged Shares are “securities” governed by Article 8 of the UCC; 

(e) as of the date hereof, no Person has entered into any options, warrants or other agreements to acquire additional capital stock in
the Pledged Company and there are no voting trusts or other member agreements or arrangements relating to any Pledged Collateral; 
 (f) this Pledge Agreement constitutes a valid obligation of the Pledgor, legally binding upon it and enforceable in accordance with its terms; 

(g) the pledge, hypothecation, assignment of the Pledged Collateral and the delivery of the Pledged Shares (together with the Instrument
of Transfers) pursuant to and/or described in this Pledge Agreement create a valid and perfected first priority security interest in the Pledged Collateral; 
 (h) no consent of any other party (including equity interest holders of the Pledgor) is required in connection with the execution, delivery, performance, validity, enforceability or enforcement of this
Pledge Agreement, and no consent, license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with the execution, delivery, performance, validity, enforceability
or enforcement of this Pledge Agreement; 
 (i) the execution, delivery and performance of this Pledge Agreement will not
violate or contravene any provision of any existing law or regulation or decree of any court, governmental authority, bureau or agency having jurisdiction in the premises or of the organizational documents of the Pledgor or of any mortgage,
indenture, security agreement, contract, undertaking or other agreement to which the Pledgor is a party or which purports to be binding upon it or any of its properties or assets and will not result in the creation or imposition of any lien, charge
or encumbrance on, or security interest in, any of its properties or assets pursuant to the provisions of any such mortgage, indenture, security agreement, contract, undertaking or other agreement; 

(j) its chief executive office is located at 25541 Commercentre Drive, Lake Forest, CA 92630; and 

(k) the representations and warranties set forth in the Loan Agreement insofar as they relate to the Pledgor are true and complete and
the Pledgor shall comply with each of the covenants set forth in the Loan Agreement which are applicable thereto. 

  
 4 

 SECTION 5. Covenants. The Pledgor hereby covenants that during the continuance
of this Pledge Agreement: 
 (a) it shall warrant and defend the right and title of the Pledgee conferred by this Pledge
Agreement in and to the Pledged Collateral at the cost of the Pledgor against the claims and demands of all persons whomsoever; 

(b) it shall not sell, assign, transfer, charge, pledge or encumber in any manner any part of the Pledged Collateral or suffer to exist
any encumbrance on the Pledged Collateral; 
 (c) it shall not amend or modify any organizational document of the Pledged
Company; 
 (d) it shall not vote the Pledged Shares of the Pledged Company in favor of the consolidation, merger, dissolution,
liquidation or any other corporate reorganization of the Pledged Company; 
 (e) it shall not take from the Pledged Company any
undertaking or security in respect of its liability hereunder or in respect of any other liability of the Pledged Company to the Pledgor and the Pledgor shall not prove nor have the right of proof, in competition with the Pledgee, for any monies
whatsoever owing from the Pledged Company to the Pledgor, in any insolvency or liquidation, or analogous proceedings under any applicable law, of the Pledgor; 
 (f) there shall not be issued any additional shares of capital stock in the Pledged Company nor any options, warrants or other agreements to do so issued or entered into; 

(g) it shall not release, transfer or otherwise dispose of any shares of capital stock held by the Pledged Company as treasury stock or
otherwise; 
 (h) it shall furnish to Pledgee from time to time statements and schedules further identifying and describing the
Pledged Collateral as Pledgee reasonably requests, all in reasonable detail; 
 (i) it shall give at least ninety
(90) days’ prior written notice to Pledgee of any (i) change of the location of Pledgor’s chief executive office from that specified in Section 4(j) hereof, (ii) change of Pledgor’s name, identity or structure or
(iii) reorganization or reincorporation of Pledgor under the laws of another jurisdiction; and 
 (j) it shall indemnify
the Pledgee from, and hold it harmless against, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of
the Pledged Collateral or in connection with the transaction contemplated by this Pledge Agreement. 
 SECTION 6.
Delivery of Additional Collateral. If the Pledgor shall become entitled to receive or shall receive any equity interests, option or rights, whether as an addition to, in substitution of, or in exchange for any of the Pledged Shares, the
Pledgor agrees to accept the same as the agent of the Pledgee and to hold the same in trust for the benefit of the Pledgee and to deliver the same forthwith to the Pledgee in the exact form received, with the endorsement of the Pledgor when
necessary and/or appropriate undated Instruments of Transfer duly executed in blank, and Irrevocable Proxies for any shares of capital stock so received, in substantially the forms attached hereto to be held by the Pledgee, subject to the terms
hereof, as additional collateral security for the Obligations. 

  
 5 

 SECTION 7. General Authority. The Pledgor hereby consents that, without the
necessity of any reservation of rights against the Pledgor, and without notice to or further assent by the Pledgor, any demand for payment of any of the Obligations made by the Pledgee may be rescinded by the Pledgee and any of the Obligations
continued, and the Obligations, or the liability of the Pledgor and/or the Pledged Company upon or for any part thereof, or any other collateral security (including, without limitation, any collateral security held pursuant to any of the other
Transaction Documents) or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, modified, accelerated, compromised, waived, surrendered, or released by the Pledgee, and the Transaction Documents,
any guarantees and any other collateral security documents executed and delivered by the Pledgor and/or the Pledged Company or any other obligors in respect of the Obligations may be amended, modified, supplemented or terminated, in whole or in
part, as the Pledgee may deem advisable, from time to time, and any other collateral security at any time held by the Pledgee for the payment of the Obligations (including, without limitation, any collateral security held pursuant to any other
collateral security document executed and delivered pursuant to the Transaction Documents) may be sold, exchanged, waived, surrendered or released, all without notice to or further assent by the Pledgor or the Pledged Company, which shall remain
bound hereunder, notwithstanding any such renewal, extension, modification, acceleration, compromise, amendment, supplement, termination, sale, exchange, waiver, surrender or release. The Pledgor waives any and all notices of the creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of reliance by the Pledgee upon this Pledge Agreement, and the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance
upon this Pledge Agreement, and all dealings between the Pledged Company and the Pledgee shall likewise be conclusively presumed to have been had or consummated in reliance upon this Pledge Agreement. The Pledgor waives diligence, presentment,
protest, demand for payment and notice of default or non-payment to or upon the Pledgor or the Pledged Company with respect to the Obligations. 
 SECTION 8. Voting Rights. The Pledgee shall, as the Pledgee and as the holder of the Irrevocable Proxies, receive notice and have the right (but not the obligation) to vote the Pledged
Shares at its own discretion at, any annual or special meeting, as the case may be, of the shareholders of the Pledged Company, provided, however, that the Pledgee shall not be entitled to receive notice, or to exercise such right to
vote until the occurrence of an Event of Default or any of the security created by or pursuant to this Pledge Agreement shall be deemed imperiled or jeopardized in a manner by the Pledgee in its sole discretion. 

SECTION 9. UCC Filings. The Pledgor does hereby authorize the Pledgee to do all things the Pledgee may deem to be necessary
or advisable in order to perfect or maintain the security interest granted by this Pledge Agreement including, but not limited to, filing any and all Uniform Commercial Code financing statements or renewals thereof. 

  
 6 

 SECTION 10. Remedies. At any time after the occurrence of an Event of Default
or in the event any of the security created by or pursuant to this Pledge Agreement shall be imperiled or jeopardized in a manner deemed material by the Pledgee in its sole discretion, the Pledgee shall be entitled, without further notice to the
Pledgor: 
 (a) subject to the limitations of Sections 9-610 and 9-615 of the UCC (to the extent applicable), to sell, assign,
transfer and deliver at any time the whole, or from time to time any part, of the Pledged Collateral or any rights or interests therein, at public or private sale or in any other manner, at such price or prices and on such terms as the Pledgee may
deem appropriate, and either for cash, on credit, for other property or for future delivery, at the option of the Pledgee, upon not less than 10 days’ written notice (which 10 day notice is hereby acknowledged by the Pledgor to be reasonable)
addressed to the Pledgor at its last address provided to the Pledgee pursuant to this Pledge Agreement, but without demand, advertisement or other notice of any kind (all of which are hereby expressly waived by the Pledgor). If any of the Pledged
Collateral or any rights or interests thereon are to be disposed of at a public sale, the Pledgee may, without notice or publication, adjourn any such sale or cause the same to be adjourned from time to time by announcement at the time and place
fixed for sale, and such sale may, without further notice, occur at the time and place identified in such announcement. If any of the Pledged Collateral or any rights or interests therein shall be disposed of at a private sale, the Pledgee shall be
relieved from all liability or claim for inadequacy of price. At any such public sale the Pledgee may purchase the whole or any part of the Pledged Collateral or any rights or interests therein so sold. Each purchaser, including the Pledgee should
it acquire the Pledged Collateral, at any public or private sale, shall hold the property sold free from any claim or right of redemption, stay, appraisal or reclamation on the part of the Pledgor which are hereby expressly waived and released to
the extent permitted by applicable law. If any of the Pledged Collateral or any rights or interests therein shall be sold on credit or for future delivery, the Pledged Collateral or rights or interests so sold may be retained by the Pledgee until
the selling price thereof shall be paid by the purchaser, but the Pledgee shall not incur any liability in case of failure of the purchaser to take up and pay for the Pledged Collateral or rights or interests therein so sold. In case of any such
failure, the Pledged Collateral or rights or interests therein may again be sold on not less than 10 days’ written notice as aforesaid; and 
 (b) to exercise all voting and other equity interest rights at any meeting of any Pledged Company and exercise any and all rights of conversion, exchange, subscription or any other rights, privileges or
options pertaining to the Pledged Shares of the Pledged Company as if it was the absolute owner thereof, including, without limitation, the right to exchange at its discretion, such Pledged Shares upon the merger, consolidation, reorganization,
recapitalization or other readjustment of the Pledged Company or, upon the exercise by the Pledged Company or the Pledgee of any right, privilege or option pertaining to such Pledged Share, and in connection therewith, to deposit and deliver such
Pledged Shares with any committee, depository, transfer agent, registrar or other designated agency upon such terms and conditions as it may determine, all without liability except to account for property actually received by it. 

SECTION 11. No Duty on Pledgee. The Pledgee shall have no duty to exercise any of the aforesaid rights, privileges or
options and shall not be responsible for any failure to do so or delay in so doing. 

  
 7 

 SECTION 12. Application of Proceeds. All moneys collected or received by the
Pledgee pursuant to this Pledge Agreement shall be applied as provided in the Loan Agreement. 
 SECTION 13.
Miscellaneous. 
 13.1 Further Assurances. The Pledgor agrees that if this Pledge Agreement shall, in the
reasonable opinion of the Pledgee, at any time be deemed by the Pledgee, for any reason, insufficient in whole or in part to carry out the true intent and spirit hereof, it shall execute or cause to be executed such other documents or deliver or
cause to be delivered such further assurances as in the opinion of the Pledgee may be required in order to more effectively accomplish the purposes of this Pledge Agreement including, without limitation, an alternative pledge or such other
alternative security as the Pledgee shall require. 
 13.2 Remedies Cumulative and Not Exclusive; No Waiver. Each and
every right, power and remedy herein given to the Pledgee shall be cumulative and shall be in addition to every other right, power and remedy of the Pledgee now or hereafter existing at law, in equity or by statute, and each and every right, power
and remedy, whether herein given or otherwise existing, may be exercised from time to time, in whole or in part, and as often and in such order as may be deemed expedient by the Pledgee, and the exercise or the beginning of the exercise of any
right, power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy. No failure, delay or omission by the Pledgee in the exercise of any right or power or in the
pursuance of any remedy accruing upon any breach or default by the Pledgor or any Security Party shall impair any such right, power or remedy or be construed to be a waiver of any such right, power or remedy or to be an acquiescence therein; nor
shall the acceptance by the Pledgee of any security or of any payment of or on account of any of the amounts due from the Pledgor or any Security Party to the Pledgee and maturing after any breach or default or of any payment on account of any past
breach or default be construed to be a waiver of any right with respect to any future breach or default or of any past breach or default not completely cured thereby. In addition to the rights and remedies granted to it in this Pledge Agreement and
in any other instrument or agreement securing, evidencing or relating to any of the Obligations, the Pledgee shall have rights and remedies of a secured party under the UCC. 
 13.3 Successors and Assigns. This Pledge Agreement and all obligations of the Pledgor hereunder shall be binding upon the successors and assigns of the Pledgor and shall, together with the rights
and remedies of the Pledgee hereunder, inure to the benefit of the Pledgee, its respective successors and assigns. 
 13.4
Waiver; Amendment. None of the terms and conditions of this Pledge Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by the Pledgor and the Pledgee. 

13.5 Invalidity. If any provision of this Pledge Agreement shall at any time, for any reason, be declared invalid, void or
otherwise inoperative by a court of competent jurisdiction, such declaration or decision shall not affect the validity of any other provision or provisions of this Pledge Agreement, or the validity of this Pledge Agreement as a whole and, to

  
 8 

 
the fullest extent permitted by law, the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Pledgee in order to
carry out the intentions of the parties hereto as nearly as may be possible. The invalidity and unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 13.6 Notices. Any notice, request or other communication to be given or made under this Pledge Agreement to the
Pledgor or the Pledgee shall be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, international courier (confirmed by facsimile), or facsimile (with a hard
copy delivered within two (2) Business Days) to the Pledgor or the Pledgee to which it is required or permitted to be given or made at such party’s address specified below or at such other address as such party shall have designated by
notice to the party given or making such notice, request or other communication, it being understood that the failure to deliver a copy of any notice, request or other communication to a party to whom copies are to be sent shall not affect the
validity of any such notice, request or other communication or constitute a breach of this Pledge Agreement. 
  

			
	 If to the Pledgor:
	  	
	
	 Comarco, Inc.

	 25541 Commercentre Drive

	 Lake Forest, CA 92630

	 Facsimile: (949) 599-1430

	 Attention: Tom Lanni President and CEO

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

	
	 Stradling Yocca Carlson and Rauth

	 660 Newport Center Drive, Suite 1600

	 Newport Beach, CA 92651

	 Facsimile: (949) 823-5150

	 Attention: Ben A. Frydman

  

			
	 If to the Pledgee:
	  	
	
	 Broadwood Partners, L.P.

	 c/o Broadwood Capital, Inc.

	 724 Fifth Avenue, 9th Floor

	 New York, NY 10019

	 Facsimile: (212) 508-5756
 Attention: Neal C. Bradsher

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

	
	 Lucosky Brookman LLP

	 33 Wood Avenue South, 6th Floor

	 Iselin, NJ 08830

	 Facsimile: (732) 395-4401

	 Attention: Joseph M. Lucosky, Esq. / Seth A. Brookman, Esq.

  
 9 

 13.7 Counterparts; Electronic Delivery. This Pledge Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute one and the same instrument. Delivery of an executed counterpart of this Pledge Agreement by facsimile or electronic transmission
shall be deemed as effective as delivery of an originally executed counterpart. In the event that the Pledgor delivers an executed counterpart of this Pledge Agreement by facsimile or electronic transmission, the Pledgor shall also deliver an
originally executed counterpart as soon as practicable, but the failure of the Pledgor to deliver an originally executed counterpart of this Pledge Agreement shall not affect the validity or effectiveness of this Pledge Agreement. 

13.8 References. References herein to Sections, Exhibits and Schedules are to be construed as references to sections of, exhibits
to, and schedules to, this Pledge Agreement, unless the context otherwise requires. 
 13.9 Headings. In this Pledge
Agreement, Section headings are inserted for convenience of reference only and shall not be taken into account in the interpretation of this Pledge Agreement. 
 13.10 Termination. When all of the Obligations shall have been fully satisfied, the Pledgee agrees that it shall forthwith release the Pledgor from its Obligations hereunder and the Pledgee, at the
request and expense of the Pledgor, shall promptly execute and deliver to the Pledgor a proper instrument or instruments acknowledging the satisfaction and termination of this Pledge Agreement, and the Irrevocable Proxies shall terminate forthwith
and be delivered to the Pledgor forthwith together with the other items furnished to the Pledgee pursuant to this Pledge Agreement. 
 SECTION 14. Applicable Law, Jurisdiction and Waivers. 
 14.1
Governing Law. This Pledge Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws thereof other than Sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York. 
 14.2 Submission to Jurisdiction. The Pledgor hereby irrevocably submits to
the jurisdiction of the courts of the State of New York and of the United States District Court for the Southern District of New York in any action or proceeding brought against it by Pledgee under this Pledge Agreement or under any document
delivered hereunder and hereby irrevocably agrees that valid service of summons or other legal process on it may be effected by serving a copy of the summons and other legal process in any such action or proceeding on the Pledgor by mailing or
delivering the same by hand to the Pledgor at the address indicated for notices in this Pledge Agreement. The service, as herein provided, of such summons or other legal process in any such action or proceeding shall be deemed personal service and
accepted by the Pledgor as such, and shall be legal and binding upon the Pledgor for all the purposes of any such action or 

  
 10 

 
proceeding. Final judgment (a certified or exemplified copy of which shall be conclusive evidence of the fact and of the amount of any indebtedness of the Pledgor to the Pledgee) against the
Pledgor in any such legal action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment. The Pledgor shall advise the Pledgee promptly of any change of address for the purpose of service of process.
Notwithstanding anything herein to the contrary, the Pledgee may bring any legal action or proceeding in any other appropriate jurisdiction. 
 14.3 WAIVER OF IMMUNITY. TO THE EXTENT THAT THE PLEDGOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM SUIT, JURISDICTION OF ANY COURT OR ANY LEGAL PROCESS (WHETHER THROUGH ATTACHMENT PRIOR TO
JUDGMENT, ATTACHMENT IN AID OF EXECUTION, EXECUTION OF A JUDGMENT, OR FROM ANY OTHER LEGAL PROCESS OR REMEDY) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE PLEDGOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS PLEDGE
AGREEMENT. 
 14.4 WAIVER OF JURY TRIAL. EACH OF THE PLEDGOR AND THE PLEDGEE HEREBY WAIVES TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO OR ANY BENEFICIARY HEREOF ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS PLEDGE AGREEMENT. 
 [-signature page follows-] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed
the day and year first above written. 
  

			
	COMARCO, INC.
		
	 By:
	 	 /s/ Thomas W. Lanni

	 Name:
	 	 Thomas W. Lanni

	 Title:
	 	 President & CEO

  

			
	BROADWOOD PARTNERS, L.P.
		
	By:	 	 /s/ Neal C. Bradsher

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

 [ signature page to Pledge Agreement ] 

 IRREVOCABLE PROXY 

The undersigned, the registered and beneficial owner of the below described capital stock of Comarco Wireless Technologies, Inc., a
corporation incorporated under the laws of the State of Delaware (the “Guarantor”), hereby makes, constitutes and appoints, Broadwood Partners, L.P., a limited partnership organized and existing under the laws of the State of
Delaware (the “Pledgee”), with full power to appoint a nominee or nominees to act hereunder from time to time, the true and lawful attorney and proxy of the undersigned to vote one hundred percent (100%) of the capital stock of
Guarantor, at all annual and special meetings of members of the Guarantor or take any action by written consent with the same force and effect as the undersigned might or could do, hereby ratifying and confirming all that the said attorney or its
nominee or nominees shall do or cause to be done by virtue hereof. 
 The said capital stock has been pledged (the
“Pledge”) to the Pledgee pursuant and subject to a Pledge Agreement, dated as of July 27, 2012, by and between the undersigned and the Pledgee. 
 This power and proxy is coupled with an interest and is irrevocable and shall remain irrevocable so long as the Pledge is outstanding and is in full force and effect. 

IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed on July 27, 2012. 

 

			
	COMARCO, INC.
		
	By:	 	 /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	Presiden & Chief Executive Officer

 EXHIBIT B 
 INSTRUMENT OF TRANSFER 
  

					
	FOR VALUE RECEIVED:	  	Comarco Inc.	  	
			
		  	 PLEASE INSERT SOCIAL SECURITY OR

OTHER

IDENTIFYING NUMBER OR ASSIGNEE
	  	
	hereby sells, assigns and transfers unto	  	 	  	                           
              

  

											
	 
	  	                           
                                         
                                         
                                         
                                         
                                         
                    
		
	 
	  	                           
                                         
                                         
                                         
                                         
                                         
                    
				
		  		  	3,065,000 shares Of	  	 Comarco Wireless
 Technologies, Inc.

			
		  	                           
                                         
                                         
                                         
 	  	standing in my (our) name(s)
			
		  	 on the books of said corporation represented by Certificate(s) No.(s). R5
	  	#1,#2,#8,#10,#12 & #16
			
		  	herewith, and do hereby irrevocably constitute and appoint	  	  

			
		  	                           
                                         
                                         
                                         
 	  	attorney to transfer the

 said stock on the books of said corporation with full power of substitution in the premises, This Instrument is given for collateral purposes only pursuant to that certain Pledge Agreement between the
undersigned and Broadwood Partners, L.P. dated July 27, 2012. 
 Dated  July 27, 2012 

 

							
		 		 		 	  

		 		 		 	
	In presence of	 		 		 	 /s/ Thomas W. Lanni

		 		 		 	 Name: Thomas W. Lanni

	                             
                                         
                                         
           	 		 		 	Title: President and CEO

 Exhibit D-1 
 SECURITY AGREEMENT 
 BETWEEN 

COMARCO, INC. 
 as Grantor 
 AND 

BROADWOOD PARTNERS, L.P. 
 as Grantee 
 Dated as of July 27, 2012 

 SECURITY AGREEMENT 

THIS SECURITY AGREEMENT (this “Security Agreement”) is made as of this 27th day of July, 2012, by and between COMARCO,
INC., a corporation incorporated under the laws of the State of California (the “Grantor”), and BROADWOOD PARTNERS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (the
“Grantee”). 
 W I T N E S S E T H: 

WHEREAS, pursuant to a senior secured six month term loan agreement, dated July 27, 2012, by and among Grantor, as borrower, Comarco
Wireless Technologies, Inc., a corporation incorporated under the laws of the State of Delaware, as guarantor (the “Guarantor”), and the Grantee, as lender (the “Loan Agreement”), the Grantee has agreed to provide
to the Grantor a senior secured loan in the principal amount of up to Two Million United States Dollars (US$2,000,000) (the “Loan”) and the Grantor has agreed to repay the Loan pursuant to the terms and conditions therein contained,
which Loan is evidenced by that certain promissory note dated of even date herewith made by Grantor in favor of Grantee (the “Note”); 
 WHEREAS, it is a condition precedent to the Grantee providing the Loan to the Grantor that the Grantor shall execute and deliver to the Grantee, among other things, this Security Agreement as security for
the obligations of the Grantor under the Loan Agreement in order to create in favor of the Grantee a valid and perfected first priority security interest, as that term is defined in the Uniform Commercial Code of New York (the
“UCC”), in the Collateral (as such term is hereinafter defined), as security for the payment and performance of all the obligations of the Grantor under and in connection with the Loan Agreement now or hereafter existing whether for
principal, interest, fees, expenses or otherwise and all obligations of the Grantor now or hereafter existing under this Security Agreement (all such obligations of the Grantor are hereinafter collectively referred to as the “Secured
Obligations”). 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Grantor agrees with the Grantee as follows: 
 1. Defined
Terms. Unless otherwise defined herein, terms defined in the Loan Agreement shall have the same meanings when used herein. 

2. Grant of Security; Release of Security. The Grantor, as security for the Secured Obligations, hereby assigns, pledges,
transfers and sets over unto the Grantee and its successors and assigns, and hereby grants to the Grantee a continuing first priority security interest in, all of the Grantor’s right, title and interest in and to all of the Grantor’s now
existing or hereafter acquired tangible and intangible properties, including, without limitation, a first lien on all present and future assets of Grantor and its subsidiaries (each of the now existing or hereafter acquired assets are described on
Exhibit A hereto) (collectively hereinafter referred to as the “Collateral”). 

  
 2 

 3. Security for Secured Obligations. This Security Agreement secures the payment and
performance of all of the Secured Obligations. 
 4. Representations and Warranties. The Grantor represents and warrants
that: 
 (a) it is the sole legal and beneficial owner of the Collateral, free and clear of any pledge, lien, mortgage,
hypothecation, security interest, charge, option or other encumbrance whatsoever, except Permitted Liens. No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any recording
office other than financing statements or other instruments similar in effect with respect to Permitted Liens; 
 (b) (i) its
true exact legal name is that set forth on the signature page hereof, (ii) it is a corporation incorporated under the laws of California, and (iii) its sole place of business and the office where it keeps its records is located at 25541
Commercentre Drive, Lake Forest, CA 92630; 
 (c) it has full power, authority and legal right to execute, deliver and perform
its obligations under this Security Agreement and to create the security interest for which this Security Agreement provides; 

(d) this Security Agreement constitutes a valid obligation of the Grantor, legally binding upon it and enforceable in accordance with
its terms; 
 (e) upon the filing of a UCC-1 financing statement in the appropriate filing offices in the State of California,
the Grantee will have a valid perfected security interest having first priority (except with respect to Permitted Liens) in the Collateral and the proceeds thereof with respect to the Collateral that may be perfected by filing a financing statement;

 (f) no consent of any other party (including members of the Grantor) is required in connection with the execution, delivery,
performance, validity, enforceability or enforcement of this Security Agreement, and no consent, license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with
the execution, delivery, performance, validity, enforceability or enforcement of this Security Agreement, provided that the Grantor makes no representation or warranty with respect to any consent that may be required under any contract to which the
Grantor is a party in order to assign any of its rights in that contract; 
 (g) the execution, delivery and performance of
this Security Agreement will not violate or contravene any provision of any existing law or regulation or decree of any court, governmental authority, bureau or agency having jurisdiction in the premises or of the limited liability company agreement
or other charter documents of the Grantor or of any mortgage, indenture, security agreement, contract, undertaking or other agreement to which the Grantor is a party or which purports to be binding upon it or any of its properties or assets provided
that the Grantor makes no representation or warranty with respect to any consent that may be required under any contract to which the Grantor is a party in order to grant a security interest in that contract and will not result in the creation or
imposition of any lien, charge or encumbrance on, or security interest in, any of its properties or assets pursuant to the provisions of any such mortgage, indenture, security agreement, contract, undertaking or other agreement except as
contemplated herein; and 

  
 3 

 (h) the representations and warranties set forth in Article III of the Loan Agreement
insofar as they relate to the Grantor are true and complete and the Grantor will comply with each of the covenants set forth in the Loan Agreement which are applicable to the Grantor. 

5. Covenants. The Grantor hereby covenants that during the continuance of this security: 

(a) it shall warrant and defend the security interest of the Grantee conferred by this Security Agreement in and to the Collateral at
the cost of the Grantor against the claims and demands of all persons whomsoever except for Permitted Liens; 
 (b) except as
herein permitted or as permitted by the Loan Agreement, without the prior written consent of the Grantee, it shall not sell, assign, transfer, charge, pledge or encumber in any manner any part of the Collateral or suffer to exist any encumbrance on
the Collateral; 
 (c) that from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver all
further instruments and documents, and take all further action, that may be necessary or advisable, or that the Grantee may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to
enable the Grantee to exercise and enforce its rights and remedies hereunder with respect to the Collateral. Without limiting the generality of the foregoing, the Grantor shall execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary or advisable, or as the Grantee may reasonably request, whether in a jurisdiction where the UCC has been adopted or any other jurisdiction, in order to perfect and
preserve the security interests granted or purported to be granted hereby; 
 (d) it hereby authorizes the Grantee to file one
or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of the Grantor where permitted by law; 

(e) it will furnish to the Grantee from time to time as the Grantee may reasonably request statements and schedules further identifying
and describing the Collateral and such other reports in connection therewith, all in reasonable detail; 
 (f) upon reasonable
written notice and without materially interfering with the ordinary course or conduct of the Grantor’s business, the Grantee shall have full and free access during normal business hours to all the books, correspondence and records of the
Grantor, and the Grantee or its representatives may examine the same, take extracts therefrom and make photocopies thereof, and the Grantor agrees to render to the Grantee, at the Grantor’s cost and expense, such clerical and other assistance
as may be reasonably requested with regard thereto. The Grantee and its representatives shall at all times, upon two (2) Business Days’ advance written notice, without materially interfering with the ordinary course or conduct of the
Grantor’s business (including worldwide shipment), also have the right to enter into and upon any premises where any of the Collateral is located for the purpose of inspecting the same, observing its use or otherwise protecting its interests
therein; 

  
 4 

 (g) it will comply with all requirements of law applicable to the Collateral or any part
thereof other than those requirements with which the failure to comply would not have a material adverse effect on the existence, condition or value of the Collateral or the security interests granted hereunder; provided, however, that
the Grantor may contest any requirement of law in any reasonable manner which shall not, in the reasonable opinion of the Grantee, materially adversely affect the Grantee’s rights or the priority of its security interest in the Collateral;

 (h) without thirty (30) days’ prior written notice to the Grantee, the Grantor shall not (i) change its chief
executive office or principal place of business, (ii) remove the Collateral from any of the counties in which such Collateral is presently located except in the ordinary course or conduct of the Grantor’s business or in connection with a
transfer of any item of Collateral to another party to the extent expressly permitted by the Loan Agreement. The Grantor shall furnish to the Grantee from time to time, as the Grantee may reasonably request, reports identifying the locations where
the Collateral is located; 
 (i) it shall not change its company name, legal existence or legal form, nor carry on business
under any name other than its current name, unless (i) it has given to the Grantee not less than thirty (30) days’ prior written notice of its intention to do so, specifying such new name, legal entity or legal form, and providing
such other information in connection therewith as the Grantee may reasonably request, and (ii) with respect to such new name, legal entity or legal form, it shall have taken all action, requested by the Grantee in its reasonable discretion, to
maintain the security interest of the Grantee in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect; 
 (j) it shall pay promptly, or cause to be paid promptly, when due all property and other material taxes, assessments and governmental charges or levies imposed upon, and all lawful claims (including
claims for labor, materials and supplies) against, the Collateral, except to the extent that its liability therefor is being contested in good faith and adequate reserves have been maintained therefor; 

(k) it will maintain all Collateral that is tangible property necessary in the Grantor’s business in good operating condition,
ordinary wear and tear and immaterial impairments of value and damage by the elements excepted, and will provide maintenance, service and repairs necessary for such purpose; 
 (l) it shall maintain, or cause to be maintained, insurance in the type and in the amount as is standard in the industry of the Grantor. All policies of insurance shall have endorsed a loss payable clause
reasonably acceptable to the Grantee and/or such other endorsements as the Grantee may from time to time reasonably request, and the Grantor will promptly provide the Grantee with copies of the policies or certificates of such insurance. The Grantor
shall promptly notify the Grantee of the occurrence of any loss or damage to the Collateral. All proceeds of insurance on the Collateral shall be applied (after payment of any amounts payable to the Grantee pursuant to this Security Agreement) in
whole or in part by the Grantee in accordance with the Loan Agreement; and 

  
 5 

 (m) it shall, promptly upon request, provide to the Grantee all information and evidence it
may reasonably request concerning the Collateral to enable the Grantee to enforce the provisions of this Security Agreement. 

6. Grantee Appointed Attorney-in-Fact. The Grantor hereby irrevocably appoints the Grantee as the Grantor’s attorney-in-fact,
with full authority in the name, place and stead of the Grantor, from time to time in the Grantee’s discretion upon the occurrence and during the continuance of an Event of Default to take any action and to execute any document which the
Grantee may deem necessary or advisable to accomplish the purposes of this Security Agreement 
 7. Grantee May Perform.
If the Grantor fails to perform any agreement contained herein, the Grantee may itself perform, or cause to be performed, such agreement, and the expenses of the Grantee incurred in connection therewith shall be payable by the Grantor. 

8. The Grantee’s Duties. The powers conferred on the Grantee hereunder are solely to protect its interest in the Collateral
and shall not impose any duty upon the Grantee to exercise any such powers. Except for the safe custody of any of the Collateral which, from time to time, may come into its possession and the accounting for moneys actually received by it hereunder,
the Grantee shall have no duty as to the Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to the Collateral. 

9. Remedies. The security interest created by this Security Agreement shall be enforceable if an Event of Default in accordance
with Article VI of the Loan Agreement shall have occurred and be continuing and the Grantee shall have, among other things, the following rights: 
 (a) subject to the limitations of Section 9-610 and 9-615 of the UCC Code (if applicable), to sell, assign, transfer and deliver at any time the whole, or from time to time any part, of the
Collateral or any rights or interests therein, at public or private sale or in any other manner, at such price or prices and on such terms as the Grantee may deem appropriate, and either for cash, on credit, for other property or for future
delivery, at the option of the Grantee, upon not less than 10 days’ written notice (which 10 day notice is hereby acknowledged by the Grantor to be reasonable) addressed to the Grantor at its last address on file with the Grantee, but without
demand, advertisement or other notice of any kind (all of which are hereby expressly waived by the Grantor). If any of the Collateral or any rights or interests therein are to be disposed of at a public sale, the Grantee may, without notice or
publication, adjourn any such sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, occur at the time and place identified in such announcement. If
any of the Collateral or any rights or interests therein shall be disposed of at a private sale, the Grantee shall be relieved from all liability or claim for inadequacy of price. At any such public sale the Grantee may purchase the whole or any
part of the Collateral or any rights or interests therein so sold. Each purchaser, including the Grantee should it acquire the Collateral, at any public or private sale shall hold the property sold free from any claim or right

  
 6 

 
of redemption, stay, appraisal or reclamation on the part of the Grantor which are hereby expressly waived and released to the extent permitted by applicable law. If any of the Collateral or any
rights or interests therein shall be sold on credit or for future delivery, the Collateral or rights or interests so sold may be retained by the Grantee until the selling price thereof shall be paid by the purchaser, but the Grantee shall not incur
any liability in case of failure of the purchaser to take up and pay for the Collateral or rights or interests therein so sold. In case of any such failure, such Collateral or rights or interests therein may again be sold or not less than 10
days’ written notice as aforesaid; 
 (b) in addition to the rights and remedies granted to it in this Security Agreement
and in any other instrument or agreement securing, evidencing or relating to any of the Secured Obligations, the Grantee shall have rights and remedies of a secured party under the UCC; and 

(c) all cash proceeds received by the Grantee in respect of any sale of, or other realization upon, all or any part of the Collateral
shall be applied (after payment of any amounts payable to the Grantee pursuant to this Security Agreement) in whole or in part by the Grantee in accordance with the Loan Agreement. 

10. Non-Interference with Remedies; Specific Performance. The Grantor agrees that following the occurrence and during the
continuance of an Event of Default it will not at any time pledge, claim or take the benefit of any appraisal, valuation, stay, extension, moratorium or redemption law now or hereafter in force in order to prevent or delay the enforcement of this
Security Agreement, or the absolute sale of the whole or any part of the Collateral or the possession thereof by any purchaser at any sale hereunder, and the Grantor waives the benefit of all such laws to the extent it lawfully may do so. The
Grantor agrees it will not interfere with any right, power or remedy of the Grantee provided for in this Security Agreement now or hereafter existing at law or in equity or by statute or otherwise, or with the exercise or beginning of the exercise
by the Grantee of any one or more of such rights, powers or remedies. 
 11. Waiver of Defenses. The Grantor agrees that
a breach of any of the agreements or covenants contained in this Security Agreement will cause irreparable injury to the Grantee, that the Grantee has no adequate remedy at law in respect of such breach and, as a consequence, agrees that each and
every agreement and covenant contained in this Security Agreement shall be specifically enforceable against the Grantor, and the Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such
agreements or covenants except for a defense that the Secured Obligations are not then due and payable in accordance with the agreements and instruments governing and evidencing such Secured Obligations. 

12. Indemnity, Expenses and Interest. (a) The Grantor shall on demand of the Grantee pay to the Grantee (on a full indemnity
basis) all costs, charges, losses, liabilities and expenses expended, paid or incurred by the Grantee (whether before or after this Security Agreement becomes enforceable), including any professional fees including attorneys’ fees, in
connection with any breach of the covenants or undertakings of the Grantor herein or the exercise of any rights exercisable under it or the recovery of any of the Secured Obligations by 

  
 7 

 
the Grantee, including, without limitation, any remuneration and other sums at any time payable to the Grantee and all costs, charges, losses, liabilities and expenses connected with the
protection, realization, enforcement or release of any provision of this Security Agreement, except to the extent the same results from the Grantee's gross negligence or willful misconduct. 

(b) The Grantor shall after demand by the Grantee pay to the Grantee interest at a rate per annum equal to the Default Rate (as such term
is defined in the Loan Agreement) on all of the costs, charges, losses, liabilities and expenses for which the Grantor is required to indemnify the Grantee pursuant to Section 12(a) hereof. So long as no Event of Default has occurred and is
continuing, such interest shall accrue and be payable from the date on which the Grantor receives notice from the Grantee; otherwise, such interest shall accrue and be payable from the date such cost, charge, loss, liability or expense was incurred
by the Grantee. 
 13. Security Interest Absolute. All rights of the Grantee and the security interest granted hereunder,
and all Secured Obligations, shall be absolute and unconditional, irrespective of: 
 (a) any lack of validity or
enforceability of the Transaction Documents or any other agreement or instrument relating thereto; 
 (b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the obligations of the Grantor or any other person under or in connection with the Loan Agreement or any other amendment or waiver of or any consent to any departure from
the Transaction Documents or the terms of any thereto; or 
 (c) any other circumstances which might otherwise constitute a
defense available to, or a discharge of, the Grantor in respect of the Secured Obligations or this Security Agreement other than payment and satisfaction in full of the Secured Obligations. 

14. Continuing Security Interest. This Security Agreement shall create a continuing first priority security interest in the
Collateral and shall (i) remain in full force and effect until payment in full of the Secured Obligations, (ii) be binding upon the Grantor, its successors and permitted assigns, and (iii) inure to the benefit of the Grantee and its
respective successors, transferees and assigns. Upon the payment in full of the Secured Obligations, the security interest granted hereby shall immediately terminate and all rights in and to the Collateral shall revert to the Grantor. Immediately
upon any such termination, the Grantee will, at the Grantor’s expense, execute and deliver to the Grantor a UCC-3 Termination Statement describing all collateral together with such documents as the Grantor shall reasonably request to evidence
such termination. 
 15. No Waiver; Remedies Cumulative and Exclusive. The Grantee shall not by any act, delay, omission
or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by the Grantee, and then only to the extent therein set forth. A waiver by the Grantee of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Grantee would otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on the part of the Grantee, any right, power
or privilege hereunder shall operate as a waiver thereof; 

  
 8 

 
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law. 
 16. Changes in Writing; Successors and Assigns. None of the terms or provisions of this Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly
executed by the Grantee. This Security Agreement and all obligations of the Grantor hereunder shall be binding upon the successors and permitted assigns of the Grantor and shall, together with the rights and remedies of the Grantee hereunder, inure
to the benefit of the Grantee, its respective successors and assigns; provided, however, that the Grantor may not assign or transfer its rights or obligations hereunder without the prior written consent of the Grantee. 

17. Agents. The Grantee may employ agents and attorneys-in-fact in connection herewith and Grantee shall be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it. Nothing herein contained shall release any such agent from any liability arising from such agent’s negligence or misconduct. 

18. Notices. Notices and other communications hereunder shall be in writing and shall be sent by facsimile or by certified mail if
domestic or by prepaid overnight courier as follows: 
 For the Grantor: 

Comarco, Inc. 

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

Attention: Tom Lanni, President and CEO 
 with a copy (which shall not constitute notice) to: 
 Stradling Yocca Carlson &
Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, CA 92651 
 Facsimile: (949) 823-5150 

Attention: Ben A. Frydman 
 For the Grantee: 
 Broadwood Partners, L.P. 

c/o Broadwood Capital, Inc. 
 724 Fifth Avenue, 9th Floor 
 New York, NY 10019 

Facsimile: (212) 508-5756 
 Attention: Neal C. Bradsher 

  
 9 

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

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

Facsimile: (732) 395-4401 
 Attention: Seth A. Brookman, Esq. 
 Every notice or demand shall, except so far as
otherwise expressly provided by this Security Agreement, be deemed to have been received (provided that it is received prior to 2:00 p.m. New York time), (i) if given by facsimile, on the date of dispatch thereof (provided that if the date of
dispatch is not a Business Day in the locality of the party to whom such notice or communication is sent it shall be deemed to have been received on the next following Business Day in such locality), and (ii) if given by mail, prepaid overnight
courier or any other means, when received at the address specified in this Section or when delivery at such address is refused. 

19. Governing Law. This Security Agreement shall be governed by and construed in accordance with the laws of the State of New York
without regard to the principles of conflicts of law thereof. 
 20. Submission to Jurisdiction. The Grantor hereby
irrevocably submits to the jurisdiction of the courts of the State of New York and of the United States District Court for the Southern District of New York in any action or proceeding brought against it by the Grantee under this Security Agreement
or under any document delivered hereunder and hereby irrevocably agrees that valid service of summons or other legal process on it may be effected by serving a copy of the summons and other legal process in any such action or proceeding on the
Grantor by mailing or delivering the same by hand to the Grantor at the address indicated for notices herein. The service, as herein provided, of such summons or other legal process in any such action or proceeding shall be deemed personal service
and accepted by the Grantor as such, and shall be legal and binding upon the Grantor for all the purposes of any such action or proceeding. Final judgment (a certified or exemplified copy of which shall be conclusive evidence of the fact and of the
amount of any indebtedness of the Grantor to the Grantee) against the Grantor in any such legal action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment. The Grantor will advise the Grantee promptly
of any change of address for the purpose of service of process. Notwithstanding anything herein to the contrary, the Grantee may bring any legal action or proceeding in any other appropriate jurisdiction. 

21. WAIVER OF JURY TRIAL. THE GRANTOR, AND BY ITS ACCEPTANCE HEREOF, THE GRANTEE, HEREBY WAIVES TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST ANY OTHER PARTY HERETO ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS SECURITY AGREEMENT. 

  
 10 

 22. Severability. If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Grantee in order to carry out the intentions
of the parties hereto as nearly as may be possible; and (ii) the invalidity and unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 23. Counterparts. This Security Agreement may be signed in any number of counterparts, each of which shall be an
original with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 24. Headings. In
this Security Agreement, Section headings are inserted for convenience of reference only and shall be ignored in the interpretation of this Security Agreement. 
 [-signature page follows-] 

  
 11 

 IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have
caused this Security Agreement to be signed in their respective names as of the date first above written. 
  

			
	COMARCO, INC.
		
	By:	 	         /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	
	
	BROADWOOD PARTNERS, L.P.
		
	By:	 	         /s/ Neal C. Bradsher

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

  
 12 

 EXHIBIT A 

COLLATERAL 
 (a) all accounts (as defined in the UCC) including accounts receivable in respect of portfolio investments acquired with proceeds of the Loan and payment intangibles, including, without limitation, all
contract rights, and all other forms of monetary obligations owing to the Grantor, and all credit insurance, guaranties, or security therefor, whether or not they have been earned by performance; 

(b) all chattel paper (as defined in the UCC), including, without limitation, electronic chattel paper and tangible chattel paper
evidencing both a monetary obligation and a security interest in or lease of goods, together with any guarantees, letters of credit, and other security therefore; 
 (c) all commercial tort claims (as defined in the UCC); 
 (d) all deposit accounts
(as defined in the UCC) and all of the cash and cash equivalents, deposited therein from time to time, and all securities, rights, interests, shares of stock, instruments, interests, or other property contained, deposited, held or otherwise added to
any deposit account from time to time; 
 (e) all documents (as defined in the UCC), including, without limitation, any paper
that is treated in the regular course of business as adequate evidence that the person in possession of the paper is entitled to receive, hold, and dispose of the goods the paper covers, including warehouse receipts, bills of lading, certificates of
title, and applications for certificates of title; 
 (f) all equipment (as defined in the UCC), machinery and all fixtures
(including, without limitation, the items purchased with the proceeds of the Loan), and all accessions, additions, attachments, improvements, substitutions and replacements thereto and thereof and warranties (express and implied) received from the
sellers and manufacturers of the foregoing property, and all related claims, credits, setoffs, and other rights of recovery; 

(g) all general intangibles (as defined in the UCC) of any kind, including, without limitation, all money, contract rights, corporate or
other business records, all intellectual property rights, inventions, designs, formulas, patents, patent applications, service marks, trademarks, trade names, trade secrets, engineering drawings, goodwill, rights to prepaid expenses, registrations,
franchises, copyrights, licenses, customer lists, computer programs and other software (as defined in the UCC), source code, tax refund claims, royalty, licensing and product rights, all claims under guarantees, security interests or other security
held by or granted to Grantor, all indemnification rights, and rights to retrieval from third parties of electronically processed and recorded data pertaining to any Collateral, things in action, items, checks, drafts, and all orders in transit to
or from Grantor, credits or deposits of Grantor (whether general or special) that are held by the Grantee; 
 (h) all goods (as
defined in the UCC); 

 (i) all inventory (as defined in the UCC), whether in the possession of the Grantor or of a
bailee or other person for sale, storage, transit, processing, use or otherwise and whether consisting of whole goods, spare parts, components, supplies, materials, or consigned, returned or repossessed goods, which are held for sale or lease, which
are to be furnished (or have been furnished) under any contract of service or which are raw materials, work in process or materials used or consumed in Grantor’s business, and all warranties and related claims, credits, setoffs, and other
rights of recovery with respect to any of the foregoing; 
 (j) all instruments (as defined in the UCC) including, without
limitation, every promissory note, negotiable instrument, certificated security, or other writing that evidences a right to payment of money, that is not a lease or security agreement, and that is transferred in the ordinary course or conduct of
business (including worldwide shipment) by delivery with any necessary assignment or endorsement; 
 (k) all investment property
(as defined in the UCC) pledged to or delivered to Grantee’s control from time to time, and any and all other property in which the Grantor at any time has rights and in which at any time a security interest has been transferred to the Grantee
(and regardless of whether any such property constitutes a certificated or uncertificated security or is held directly or through one or more financial intermediaries through book entries); 

(l) all letter of credit rights (as defined in the UCC); 
 (m) all supporting obligations (as defined in the UCC); 
 (n) all books, files,
records (as defined in the UCC) relating to the Collateral; 
 (o) each policy and contract of insurance owned or maintained by
the Grantor, and all the benefits thereof including, without limitation, all claims of whatsoever nature, as well as return premiums, and in and to all moneys and claims for moneys in connection therewith; 

(p) all certificates and instruments evidencing any securities or other Collateral subject to this Security Agreement from time to time
and all interest, dividends, distributions, cash, investment property, securities, shares of stock, and other amounts and property from time to time received, receivable, paid or payable or otherwise distributed from time to time in respect of, in
exchange or substitution for, or as an addition to any of the foregoing Collateral; 
 (q) all other tangible or intangible
personal property of every kind and nature; and 
 (r) all accessions and additions to the foregoing, substitutions therefor,
and replacements, products and proceeds (as defined in the UCC) of any of the property of the Grantor described in clauses (a) through (q) above (including any proceeds of insurance thereon). 

(s) All patents of the Debtor, including, but not limited to, the patents filed with the united States Patent & Trademark
Officer and identified by the following patent numbers and descriptions: 
  

					
	1.	  	5,479,331	  	Small Form Factor Power Supply

  
 2 

					
			
	2.	  	 5,636,110
	  	 Small Form Factor Power Supply

			
	3.	  	 5,838,554
	  	 Small Form Factor Power Supply

			
	4.	  	 6,850,423
	  	 Noise Cancellation Circuit

			
	5.	  	 6,939,150
	  	 Foldable Electrical Plug Connector

			
	6.	  	 6,922,150
	  	 Programmable Power Supply

			
	7.	  	 6,836,101
	  	 Tip Having Active Circuitry

			
	8.	  	 6,831,848
	  	 Programmable Power Supply to Simultaneously Power a Plurality of Electronic Devices

			
	9.	  	 6,809,943
	  	 Programmable Power Supply

			
	10.	  	 6,707,284
	  	 Programmable Power Supply

			
	11.	  	 6,693,413
	  	 Programmable Power Supply

			
	12.	  	 6,266,261
	  	 DC Power Adapter System

			
	13.	  	 6,172,884
	  	 Small Form Factor Power Supply for Powering Electronic Devices

			
	14.	  	 6,091,611
	  	 Connectors Adapted for Controlling Small Form Factor Power Supply

			
	15.	  	 5,949,213
	  	 Method and System for Charging Rechargeable Batteries

			
	16.	  	 7,035,126
	  	 Programmable Power Supply Capable of Receiving AC and DC Inputs

			
	17.	  	 7,056,149
	  	 Key Coded Power Adapter Connectors

			
	18.	  	 7,072,200
	  	 Cradle for Receiving an Adapter

			
	19.	  	 7,142,423
	  	 Power Adpater With Fan Assembly

			
	20.	  	 7,145,312
	  	 Battery Coupled to Adapter and Tip

			
	21.	  	 7,145,787
	  	 Programmable Power Supply

			
	22.	  	 7,148,659
	  	 Programmable AC/DC Power Supply

			
	23.	  	 7,193,398
	  	 Tip Having Active Circuitry

			
	24.	  	 7,193,873
	  	 Cradle for Receiving an Adapter

  
 3 

					
			
	25.	  	 7,254,048
	  	 Power Supply Capable of AC and DC Input Utilizing Winding of Transformer as Boost Inductor

			
	26.	  	 7,265,973
	  	 Power Adapter With Fan Assembly

			
	27.	  	 7,266,003
	  	 Programmable Power Supply

			
	28.	  	 7,279,868
	  	 Power Factor Correction Circuits

			
	29.	  	 7,355, 851
	  	 Power Adapter With Fan Assembly and Control Circuit

			
	30.	  	 7,365,524
	  	 Tip Having Active Circuitry

			
	31.	  	 7,420,823
	  	 Power Factor Correction Control Circuit

			
	32.	  	 7,450,390
	  	 Programmable Power Supply

			
	33.	  	 7,450,403
	  	 Switchable Power Supply Utilizing Switch-Selectable Resistors to Determine Output Voltage

			
	34.	  	 7,453,171
	  	 DC Power Source Determination Circuitry for Use With an AC Adapter

			
	35.	  	 7,460,381
	  	 Programmable Power Supply

			
	36.	  	 7,489,116
	  	 Power Factor Correction Control Circuit

			
	37.	  	 7,495,941
	  	 Power Supply Equipment With Matching Indicators on Converter and Connector Adapters

			
	38.	  	 7,545,656
	  	 Common Mode Noise Reduction Circuit Utilizing Dual Primary Windings

			
	39.	  	 7,613,021
	  	 Small Form Factor Power Supply

			
	40.	  	 7,649,279`
	  	 Power Supply for Simultaneously Providing Operating Voltages to a Plurality of Devices

			
	41.	  	 7,727,005
	  	 Key Coded Power Adapter Connectors

			
	42.	  	 7,863,770
	  	 Power Supply for Simultaneously Providing Operating Voltages to a Plurality of Devices

			
	43.	  	 7,868,486
	  	 Power Supply Having Source Determination Circuitry Utilized to Disable Battery Charging Circuitry in Powered
Device

			
	44.	  	 7,999,412
	  	 Detachable Tip for Communicating with Adapter and Electronic Device

			
	45.	  	 8,213,204
	  	 Modular Power Adapter

  
 4 

 Exhibit D-2 
 SECURITY AGREEMENT 
 BETWEEN 

COMARCO WIRELESS TECHNOLOGIES, INC. 
 as Grantor 
 AND 

BROADWOOD PARTNERS, L.P. 
 as Grantee 
 Dated as of July 27, 2012 

 SECURITY AGREEMENT 

THIS SECURITY AGREEMENT (this “Security Agreement”) is made as of this 27th day of July, 2012, by and between COMARCO WIRELESS TECHNOLOGIES,
INC., a corporation incorporated under the laws of the State of Delaware (the “Grantor”), and BROADWOOD PARTNERS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (the
“Grantee”). 
 W I T N E S S E T H: 

WHEREAS, pursuant to a senior secured six month term loan agreement, dated July 27, 2012, by and among Comarco, Inc., a corporation
incorporated under the laws of the State of California and the parent corporation of the Grantor, as borrower (the “Borrower”), the Grantor, as guarantor, and the Grantee, as lender (the “Loan Agreement”), the
Grantee has agreed to provide to the Borrower a senior secured loan in the principal amount of up to Two Million United States Dollars (US$2,000,000) (the “Loan”) and the Borrower has agreed to repay the Loan pursuant to the terms
and conditions therein contained, which Loan is evidenced by that certain promissory note dated of even date herewith made by Borrower in favor of Grantee (the “Note”); 

WHEREAS, it is a condition precedent to the Grantee providing the Loan to the Borrower that the Grantor shall execute and deliver to the
Grantee, among other things, this Security Agreement as security for the obligations of the Borrower under the Loan Agreement in order to create in favor of the Grantee a valid and perfected first priority security interest, as that term is defined
in the Uniform Commercial Code of New York (the “UCC”), in the Collateral (as such term is hereinafter defined), as security for the payment and performance of all the obligations of the Borrower under and in connection with the
Loan Agreement now or hereafter existing whether for principal, interest, fees, expenses or otherwise and all obligations of the Grantor now or hereafter existing under this Security Agreement (all such obligations of the Grantor are hereinafter
collectively referred to as the “Secured Obligations”). 
 NOW, THEREFORE, in consideration of the premises and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Grantor agrees with the Grantee as follows: 
 1. Defined Terms. Unless otherwise defined herein, terms defined in the Loan Agreement shall have the same meanings when used herein. 

2. Grant of Security; Release of Security. The Grantor, as security for the Secured Obligations, hereby assigns, pledges,
transfers and sets over unto the Grantee and its successors and assigns, and hereby grants to the Grantee a continuing first priority security interest in, all of the Grantor’s right, title and interest in and to all of the Grantor’s now
existing or hereafter acquired tangible and intangible properties, including, without limitation, a first lien on all present and future assets of Grantor and its subsidiaries (each of the now existing or hereafter acquired assets are described on
Exhibit A hereto) (collectively hereinafter referred to as the “Collateral”). 

  
 2 

 3. Security for Secured Obligations. This Security Agreement secures the payment and
performance of all of the Secured Obligations. 
 4. Representations and Warranties. The Grantor represents and warrants
that: 
 (a) it is the sole legal and beneficial owner of the Collateral, free and clear of any pledge, lien, mortgage,
hypothecation, security interest, charge, option or other encumbrance whatsoever, except Permitted Liens. No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any recording
office other than financing statements or other instruments similar in effect with respect to Permitted Liens; 
 (b) (i) its
true exact legal name is that set forth on the signature page hereof, (ii) it is a corporation incorporated under the laws of Delaware, and (iii) its sole place of business and the office where it keeps its records is located at 25541
Commercentre Drive, Lake Forest, CA 92630; 
 (c) it has full power, authority and legal right to execute, deliver and perform
its obligations under this Security Agreement and to create the security interest for which this Security Agreement provides; 

(d) this Security Agreement constitutes a valid obligation of the Grantor, legally binding upon it and enforceable in accordance with
its terms; 
 (e) upon the filing of a UCC-1 financing statement in the appropriate filing offices in the State of Delaware,
the Grantee will have a valid perfected security interest having first priority (except with respect to Permitted Liens) in the Collateral and the proceeds thereof with respect to the Collateral that may be perfected by filing a financing statement;

 (f) no consent of any other party (including members of the Grantor) is required in connection with the execution, delivery,
performance, validity, enforceability or enforcement of this Security Agreement, and no consent, license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with
the execution, delivery, performance, validity, enforceability or enforcement of this Security Agreement, provided that the Grantor makes no representation or warranty with respect to any consent that may be required under any contract to which the
Grantor is a party in order to assign any of its rights in that contract; 
 (g) the execution, delivery and performance of
this Security Agreement will not violate or contravene any provision of any existing law or regulation or decree of any court, governmental authority, bureau or agency having jurisdiction in the premises or of the limited liability company agreement
or other charter documents of the Grantor or of any mortgage, indenture, security agreement, contract, undertaking or other agreement to which the Grantor is a party or which purports to be binding upon it or any of its properties or assets provided
that the Grantor makes no representation or warranty with respect to any consent 

  
 3 

 
that may be required under any contract to which the Grantor is a party in order to grant a security interest in that contract and will not result in the creation or imposition of any lien,
charge or encumbrance on, or security interest in, any of its properties or assets pursuant to the provisions of any such mortgage, indenture, security agreement, contract, undertaking or other agreement except as contemplated herein; and

 (h) the representations and warranties set forth in Article III of the Loan Agreement insofar as they relate to the Grantor
are true and complete and the Grantor will comply with each of the covenants set forth in the Loan Agreement which are applicable to the Grantor. 
 5. Covenants. The Grantor hereby covenants that during the continuance of this security: 
 (a) it shall warrant and defend the security interest of the Grantee conferred by this Security Agreement in and to the Collateral at the cost of the Grantor against the claims and demands of all persons
whomsoever except for Permitted Liens; 
 (b) except as herein permitted or as permitted by the Loan Agreement, without the
prior written consent of the Grantee, it shall not sell, assign, transfer, charge, pledge or encumber in any manner any part of the Collateral or suffer to exist any encumbrance on the Collateral; 

(c) that from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or advisable, or that the Grantee may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Grantee to
exercise and enforce its rights and remedies hereunder with respect to the Collateral. Without limiting the generality of the foregoing, the Grantor shall execute and file such financing or continuation statements, or amendments thereto, and such
other instruments or notices, as may be necessary or advisable, or as the Grantee may reasonably request, whether in a jurisdiction where the UCC has been adopted or any other jurisdiction, in order to perfect and preserve the security interests
granted or purported to be granted hereby; 
 (d) it hereby authorizes the Grantee to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of the Grantor where permitted by law; 
 (e) it will furnish to the Grantee from time to time as the Grantee may reasonably request statements and schedules further identifying and describing the Collateral and such other reports in connection
therewith, all in reasonable detail; 
 (f) upon reasonable written notice and without materially interfering with the ordinary
course or conduct of the Grantor’s business, the Grantee shall have full and free access during normal business hours to all the books, correspondence and records of the Grantor, and the Grantee or its representatives may examine the same, take
extracts therefrom and make photocopies thereof, and the Grantor agrees to render to the Grantee, at the Grantor’s cost and expense, such clerical and other assistance as may be reasonably requested with regard

  
 4 

 
thereto. The Grantee and its representatives shall at all times, upon two (2) Business Days’ advance written notice, without materially interfering with the ordinary course or conduct
of the Grantor’s business (including worldwide shipment), also have the right to enter into and upon any premises where any of the Collateral is located for the purpose of inspecting the same, observing its use or otherwise protecting its
interests therein; 
 (g) it will comply with all requirements of law applicable to the Collateral or any part thereof other
than those requirements with which the failure to comply would not have a material adverse effect on the existence, condition or value of the Collateral or the security interests granted hereunder; provided, however, that the Grantor
may contest any requirement of law in any reasonable manner which shall not, in the reasonable opinion of the Grantee, materially adversely affect the Grantee’s rights or the priority of its security interest in the Collateral; 

(h) without thirty (30) days’ prior written notice to the Grantee, the Grantor shall not (i) change its chief executive
office or principal place of business, (ii) remove the Collateral from any of the counties in which such Collateral is presently located except in the ordinary course or conduct of the Grantor’s business or in connection with a transfer of
any item of Collateral to another party to the extent expressly permitted by the Loan Agreement. The Grantor shall furnish to the Grantee from time to time, as the Grantee may reasonably request, reports identifying the locations where the
Collateral is located; 
 (i) it shall not change its company name, legal existence or legal form, nor carry on business under
any name other than its current name, unless (i) it has given to the Grantee not less than thirty (30) days’ prior written notice of its intention to do so, specifying such new name, legal entity or legal form, and providing such
other information in connection therewith as the Grantee may reasonably request, and (ii) with respect to such new name, legal entity or legal form, it shall have taken all action, requested by the Grantee in its reasonable discretion, to
maintain the security interest of the Grantee in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect; 
 (j) it shall pay promptly, or cause to be paid promptly, when due all property and other material taxes, assessments and governmental charges or levies imposed upon, and all lawful claims (including
claims for labor, materials and supplies) against, the Collateral, except to the extent that its liability therefor is being contested in good faith and adequate reserves have been maintained therefor; 

(k) it will maintain all Collateral that is tangible property necessary in the Grantor’s business in good operating condition,
ordinary wear and tear and immaterial impairments of value and damage by the elements excepted, and will provide maintenance, service and repairs necessary for such purpose; 
 (l) it shall maintain, or cause to be maintained, insurance in the type and in the amount as is standard in the industry of the Grantor. All policies of insurance shall have endorsed a loss payable clause
reasonably acceptable to the Grantee and/or such other endorsements as the Grantee may from time to time reasonably request, and the Grantor will promptly provide the Grantee with copies of the policies or certificates of such insurance. The

  
 5 

 
Grantor shall promptly notify the Grantee of the occurrence of any loss or damage to the Collateral. All proceeds of insurance on the Collateral shall be applied (after payment of any amounts
payable to the Grantee pursuant to this Security Agreement) in whole or in part by the Grantee in accordance with the Loan Agreement; and 
 (m) it shall, promptly upon request, provide to the Grantee all information and evidence it may reasonably request concerning the Collateral to enable the Grantee to enforce the provisions of this
Security Agreement. 
 6. Grantee Appointed Attorney-in-Fact. The Grantor hereby irrevocably appoints the Grantee as the
Grantor’s attorney-in-fact, with full authority in the name, place and stead of the Grantor, from time to time in the Grantee’s discretion upon the occurrence and during the continuance of an Event of Default to take any action and to
execute any document which the Grantee may deem necessary or advisable to accomplish the purposes of this Security Agreement 

7. Grantee May Perform. If the Grantor fails to perform any agreement contained herein, the Grantee may itself perform, or cause
to be performed, such agreement, and the expenses of the Grantee incurred in connection therewith shall be payable by the Grantor. 
 8. The Grantee’s Duties. The powers conferred on the Grantee hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon the Grantee to exercise any such
powers. Except for the safe custody of any of the Collateral which, from time to time, may come into its possession and the accounting for moneys actually received by it hereunder, the Grantee shall have no duty as to the Collateral or as to the
taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to the Collateral. 
 9.
Remedies. The security interest created by this Security Agreement shall be enforceable if an Event of Default in accordance with Article VI of the Loan Agreement shall have occurred and be continuing and the Grantee shall have, among other
things, the following rights: 
 (a) subject to the limitations of Section 9-610 and 9-615 of the UCC Code (if
applicable), to sell, assign, transfer and deliver at any time the whole, or from time to time any part, of the Collateral or any rights or interests therein, at public or private sale or in any other manner, at such price or prices and on such
terms as the Grantee may deem appropriate, and either for cash, on credit, for other property or for future delivery, at the option of the Grantee, upon not less than 10 days’ written notice (which 10 day notice is hereby acknowledged by the
Grantor to be reasonable) addressed to the Grantor at its last address on file with the Grantee, but without demand, advertisement or other notice of any kind (all of which are hereby expressly waived by the Grantor). If any of the Collateral or any
rights or interests therein are to be disposed of at a public sale, the Grantee may, without notice or publication, adjourn any such sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and
such sale may, without further notice, occur at the time and place identified in such announcement. If any of the Collateral or any rights or interests therein shall be disposed of at a private sale, the Grantee shall be relieved from all liability
or claim for inadequacy of price. At any such public sale the Grantee may purchase the whole or any part of the Collateral or any 

  
 6 

 
rights or interests therein so sold. Each purchaser, including the Grantee should it acquire the Collateral, at any public or private sale shall hold the property sold free from any claim or
right of redemption, stay, appraisal or reclamation on the part of the Grantor which are hereby expressly waived and released to the extent permitted by applicable law. If any of the Collateral or any rights or interests therein shall be sold on
credit or for future delivery, the Collateral or rights or interests so sold may be retained by the Grantee until the selling price thereof shall be paid by the purchaser, but the Grantee shall not incur any liability in case of failure of the
purchaser to take up and pay for the Collateral or rights or interests therein so sold. In case of any such failure, such Collateral or rights or interests therein may again be sold or not less than 10 days’ written notice as aforesaid;

 (b) in addition to the rights and remedies granted to it in this Security Agreement and in any other instrument or agreement
securing, evidencing or relating to any of the Secured Obligations, the Grantee shall have rights and remedies of a secured party under the UCC; and 
 (c) all cash proceeds received by the Grantee in respect of any sale of, or other realization upon, all or any part of the Collateral shall be applied (after payment of any amounts payable to the Grantee
pursuant to this Security Agreement) in whole or in part by the Grantee in accordance with the Loan Agreement. 
 10.
Non-Interference with Remedies; Specific Performance. The Grantor agrees that following the occurrence and during the continuance of an Event of Default it will not at any time pledge, claim or take the benefit of any appraisal, valuation,
stay, extension, moratorium or redemption law now or hereafter in force in order to prevent or delay the enforcement of this Security Agreement, or the absolute sale of the whole or any part of the Collateral or the possession thereof by any
purchaser at any sale hereunder, and the Grantor waives the benefit of all such laws to the extent it lawfully may do so. The Grantor agrees it will not interfere with any right, power or remedy of the Grantee provided for in this Security Agreement
now or hereafter existing at law or in equity or by statute or otherwise, or with the exercise or beginning of the exercise by the Grantee of any one or more of such rights, powers or remedies. 

11. Waiver of Defenses. The Grantor agrees that a breach of any of the agreements or covenants contained in this Security
Agreement will cause irreparable injury to the Grantee, that the Grantee has no adequate remedy at law in respect of such breach and, as a consequence, agrees that each and every agreement and covenant contained in this Security Agreement shall be
specifically enforceable against the Grantor, and the Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such agreements or covenants except for a defense that the Secured Obligations are not
then due and payable in accordance with the agreements and instruments governing and evidencing such Secured Obligations. 
 12.
Indemnity, Expenses and Interest. (a) The Grantor shall on demand of the Grantee pay to the Grantee (on a full indemnity basis) all costs, charges, losses, liabilities and expenses expended, paid or incurred by the Grantee (whether
before or after this Security Agreement becomes enforceable), including any professional fees including attorneys’ fees, in 

  
 7 

 
connection with any breach of the covenants or undertakings of the Grantor herein or the exercise of any rights exercisable under it or the recovery of any of the Secured Obligations by the
Grantee, including, without limitation, any remuneration and other sums at any time payable to the Grantee and all costs, charges, losses, liabilities and expenses connected with the protection, realization, enforcement or release of any provision
of this Security Agreement, except to the extent the same results from the Grantee's gross negligence or willful misconduct. 

(b) The Grantor shall after demand by the Grantee pay to the Grantee interest at a rate per annum equal to the Default Rate (as such term
is defined in the Loan Agreement) on all of the costs, charges, losses, liabilities and expenses for which the Grantor is required to indemnify the Grantee pursuant to Section 12(a) hereof. So long as no Event of Default has occurred and is
continuing, such interest shall accrue and be payable from the date on which the Grantor receives notice from the Grantee; otherwise, such interest shall accrue and be payable from the date such cost, charge, loss, liability or expense was incurred
by the Grantee. 
 13. Security Interest Absolute. All rights of the Grantee and the security interest granted hereunder,
and all Secured Obligations, shall be absolute and unconditional, irrespective of: 
 (a) any lack of validity or
enforceability of the Transaction Documents or any other agreement or instrument relating thereto; 
 (b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the obligations of the Grantor or any other person under or in connection with the Loan Agreement or any other amendment or waiver of or any consent to any departure from
the Transaction Documents or the terms of any thereto; or 
 (c) any other circumstances which might otherwise constitute a
defense available to, or a discharge of, the Grantor in respect of the Secured Obligations or this Security Agreement other than payment and satisfaction in full of the Secured Obligations. 

14. Continuing Security Interest. This Security Agreement shall create a continuing first priority security interest in the
Collateral and shall (i) remain in full force and effect until payment in full of the Secured Obligations, (ii) be binding upon the Grantor, its successors and permitted assigns, and (iii) inure to the benefit of the Grantee and its
respective successors, transferees and assigns. Upon the payment in full of the Secured Obligations, the security interest granted hereby shall immediately terminate and all rights in and to the Collateral shall revert to the Grantor. Immediately
upon any such termination, the Grantee will, at the Grantor’s expense, execute and deliver to the Grantor a UCC-3 Termination Statement describing all collateral together with such documents as the Grantor shall reasonably request to evidence
such termination. 
 15. No Waiver; Remedies Cumulative and Exclusive. The Grantee shall not by any act, delay, omission
or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by the Grantee, and then only to the extent therein set forth. A waiver by the Grantee of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Grantee would 

  
 8 

 
otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on the part of the Grantee, any right, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies hereunder provided are
cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law. 
 16.
Changes in Writing; Successors and Assigns. None of the terms or provisions of this Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by the Grantee. This Security Agreement and
all obligations of the Grantor hereunder shall be binding upon the successors and permitted assigns of the Grantor and shall, together with the rights and remedies of the Grantee hereunder, inure to the benefit of the Grantee, its respective
successors and assigns; provided, however, that the Grantor may not assign or transfer its rights or obligations hereunder without the prior written consent of the Grantee. 

17. Agents. The Grantee may employ agents and attorneys-in-fact in connection herewith and Grantee shall be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it. Nothing herein contained shall release any such agent from any liability arising from such agent’s negligence or misconduct. 

18. Notices. Notices and other communications hereunder shall be in writing and shall be sent by facsimile or by certified mail if
domestic or by prepaid overnight courier as follows: 
 For the Grantor: 

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

Facsimile: (949) 599-1430 
 Attention: Tom Lanni, President and CEO 
 with a copy (which shall not constitute
notice) to: 
 Stradling Yocca Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, CA 92651 

Facsimile: (949) 823-5150 
 Attention: Ben Frydman 
 For the Grantee: 

Broadwood Partners, L.P. 
 c/o Broadwood Capital, Inc. 
 724 Fifth Avenue, 9th Floor 

  
 9 

 New York, NY 10019 
 Facsimile: (212) 508-5756 
 Attention: Neal C. Bradsher 

with a copy (which shall not constitute notice) to: 
 Lucosky Brookman LLP 
 33 Wood Avenue South, 6th Floor 

Iselin, NJ 08830 

Facsimile: (732) 395-4401 
 Attention: Seth A. Brookman, Esq. 
 Every notice or demand shall, except so far as
otherwise expressly provided by this Security Agreement, be deemed to have been received (provided that it is received prior to 2:00 p.m. New York time), (i) if given by facsimile, on the date of dispatch thereof (provided that if the date of
dispatch is not a Business Day in the locality of the party to whom such notice or communication is sent it shall be deemed to have been received on the next following Business Day in such locality), and (ii) if given by mail, prepaid overnight
courier or any other means, when received at the address specified in this Section or when delivery at such address is refused. 

19. Governing Law. This Security Agreement shall be governed by and construed in accordance with the laws of the State of New York
without regard to the principles of conflicts of law thereof. 
 20. Submission to Jurisdiction. The Grantor hereby
irrevocably submits to the jurisdiction of the courts of the State of New York and of the United States District Court for the Southern District of New York in any action or proceeding brought against it by the Grantee under this Security Agreement
or under any document delivered hereunder and hereby irrevocably agrees that valid service of summons or other legal process on it may be effected by serving a copy of the summons and other legal process in any such action or proceeding on the
Grantor by mailing or delivering the same by hand to the Grantor at the address indicated for notices herein. The service, as herein provided, of such summons or other legal process in any such action or proceeding shall be deemed personal service
and accepted by the Grantor as such, and shall be legal and binding upon the Grantor for all the purposes of any such action or proceeding. Final judgment (a certified or exemplified copy of which shall be conclusive evidence of the fact and of the
amount of any indebtedness of the Grantor to the Grantee) against the Grantor in any such legal action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment. The Grantor will advise the Grantee promptly
of any change of address for the purpose of service of process. Notwithstanding anything herein to the contrary, the Grantee may bring any legal action or proceeding in any other appropriate jurisdiction. 

21. WAIVER OF JURY TRIAL. THE GRANTOR, AND BY ITS ACCEPTANCE HEREOF, THE GRANTEE, HEREBY WAIVES TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST ANY OTHER PARTY HERETO ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS SECURITY AGREEMENT. 

  
 10 

 22. Severability. If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Grantee in order to carry out the intentions
of the parties hereto as nearly as may be possible; and (ii) the invalidity and unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 23. Counterparts. This Security Agreement may be signed in any number of counterparts, each of which shall be an
original with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 24. Headings. In
this Security Agreement, Section headings are inserted for convenience of reference only and shall be ignored in the interpretation of this Security Agreement. 
 [-signature page follows-] 

  
 11 

 IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have
caused this Security Agreement to be signed in their respective names as of the date first above written. 
  

			
	COMARCO WIRELESS TECHNOLOGIES, INC.
		
	By:	 	 /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	President and CEO
	
	BROADWOOD PARTNERS, L.P.
		
	By:	 	 /s/ Neal C. Bradsher

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

  
 12 

 EXHIBIT A 

COLLATERAL 
 (a) all accounts (as defined in the UCC) including accounts receivable in respect of portfolio investments acquired with proceeds of the Loan and payment intangibles, including, without limitation, all
contract rights, and all other forms of monetary obligations owing to the Grantor, and all credit insurance, guaranties, or security therefor, whether or not they have been earned by performance; 

(b) all chattel paper (as defined in the UCC), including, without limitation, electronic chattel paper and tangible chattel paper
evidencing both a monetary obligation and a security interest in or lease of goods, together with any guarantees, letters of credit, and other security therefore; 
 (c) all commercial tort claims (as defined in the UCC); 
 (d) all deposit accounts
(as defined in the UCC) and all of the cash and cash equivalents, deposited therein from time to time, and all securities, rights, interests, shares of stock, instruments, interests, or other property contained, deposited, held or otherwise added to
any deposit account from time to time; 
 (e) all documents (as defined in the UCC), including, without limitation, any paper
that is treated in the regular course of business as adequate evidence that the person in possession of the paper is entitled to receive, hold, and dispose of the goods the paper covers, including warehouse receipts, bills of lading, certificates of
title, and applications for certificates of title; 
 (f) all equipment (as defined in the UCC), machinery and all fixtures
(including, without limitation, the items purchased with the proceeds of the Loan), and all accessions, additions, attachments, improvements, substitutions and replacements thereto and thereof and warranties (express and implied) received from the
sellers and manufacturers of the foregoing property, and all related claims, credits, setoffs, and other rights of recovery; 

(g) all general intangibles (as defined in the UCC) of any kind, including, without limitation, all money, contract rights, corporate or
other business records, all intellectual property rights, inventions, designs, formulas, patents, patent applications, service marks, trademarks, trade names, trade secrets, engineering drawings, goodwill, rights to prepaid expenses, registrations,
franchises, copyrights, licenses, customer lists, computer programs and other software (as defined in the UCC), source code, tax refund claims, royalty, licensing and product rights, all claims under guarantees, security interests or other security
held by or granted to Grantor, all indemnification rights, and rights to retrieval from third parties of electronically processed and recorded data pertaining to any Collateral, things in action, items, checks, drafts, and all orders in transit to
or from Grantor, credits or deposits of Grantor (whether general or special) that are held by the Grantee; 
 (h) all goods (as
defined in the UCC); 

 (i) all inventory (as defined in the UCC), whether in the possession of the Grantor or of a
bailee or other person for sale, storage, transit, processing, use or otherwise and whether consisting of whole goods, spare parts, components, supplies, materials, or consigned, returned or repossessed goods, which are held for sale or lease, which
are to be furnished (or have been furnished) under any contract of service or which are raw materials, work in process or materials used or consumed in Grantor’s business, and all warranties and related claims, credits, setoffs, and other
rights of recovery with respect to any of the foregoing; 
 (j) all instruments (as defined in the UCC) including, without
limitation, every promissory note, negotiable instrument, certificated security, or other writing that evidences a right to payment of money, that is not a lease or security agreement, and that is transferred in the ordinary course or conduct of
business (including worldwide shipment) by delivery with any necessary assignment or endorsement; 
 (k) all investment property
(as defined in the UCC) pledged to or delivered to Grantee’s control from time to time, and any and all other property in which the Grantor at any time has rights and in which at any time a security interest has been transferred to the Grantee
(and regardless of whether any such property constitutes a certificated or uncertificated security or is held directly or through one or more financial intermediaries through book entries); 

(l) all letter of credit rights (as defined in the UCC); 
 (m) all supporting obligations (as defined in the UCC); 
 (n) all books, files,
records (as defined in the UCC) relating to the Collateral; 
 (o) each policy and contract of insurance owned or maintained by
the Grantor, and all the benefits thereof including, without limitation, all claims of whatsoever nature, as well as return premiums, and in and to all moneys and claims for moneys in connection therewith; 

(p) all certificates and instruments evidencing any securities or other Collateral subject to this Security Agreement from time to time
and all interest, dividends, distributions, cash, investment property, securities, shares of stock, and other amounts and property from time to time received, receivable, paid or payable or otherwise distributed from time to time in respect of, in
exchange or substitution for, or as an addition to any of the foregoing Collateral; 
 (q) all other tangible or intangible
personal property of every kind and nature; and 
 (r) all accessions and additions to the foregoing, substitutions therefor,
and replacements, products and proceeds (as defined in the UCC) of any of the property of the Grantor described in clauses (a) through (q) above (including any proceeds of insurance thereon). 

  
 2 

 Exhibit F 
 PROMISSORY NOTE 
 ISSUED BY 

COMARCO, INC. 
 as Borrower 
 in favor of 

BROADWOOD PARTNERS, L.P. 
 as Lender 
 July 27, 2012 

 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SUCH ACT AND SUCH LAWS. 
 PROMISSORY NOTE 

 

			
	July 27, 2012	 	US$2,000,000

 FOR VALUE RECEIVED, COMARCO, INC., a corporation incorporated under the laws of the State of California
(the “Borrower”), does hereby promise to pay to the order of BROADWOOD PARTNERS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (the “Lender”), the principal sum of Two
Million United States Dollars (US$2,000,000) (the “Loan”). The Borrower shall repay the indebtedness represented by this Note as provided in ARTICLE II of that certain Senior Secured Six Month Term Loan Agreement, dated
July 27, 2012 (the “Loan Agreement”), made by and among (i) the Lender, as lender, (ii) the Borrower, as borrower, and (iii) COMARCO WIRELESS TECHNOLOGIES, INC., a corporation incorporated under the laws of the
State of Delaware, as guarantor (the “Guarantor”), pursuant to which the Lender has agreed to provide to the Borrower a senior secured term loan in the amount of the Loan. 

Words and expressions used herein (including those in the foregoing paragraph) and defined in the Loan Agreement shall have the same
meaning herein as therein defined. This promissory note is the “Note” referred to in the Loan Agreement. 
 The
Guarantor, by its execution of the Consent and Agreement attached hereto, hereby further guarantees the payment of the Loan to the Lender, consents and agrees to the Note and to the provisions contained herein relating to conditions to be fulfilled
and obligations to be performed. 
 This Note may be prepaid on such terms as provided in the Loan Agreement. Interest shall be
paid on the indebtedness represented by this Note at the rate determined from time to time in accordance with ARTICLE II of the Loan Agreement and at the times provided in ARTICLE II of the Loan Agreement, which provisions are incorporated herein
with full force and effect as if they were more fully set forth herein at length. Any payment not paid when due, whether on the maturity date thereof or by acceleration, shall bear interest thereafter at a rate per annum equal to the Default Rate.
All interest shall accrue and be calculated on the actual number of days elapsed and on the basis of a 360 day year. 
 Both
principal and interest are payable in Dollars to the Lender, in immediately available same day funds. If this Note or any payment required to be made hereunder becomes due and payable on a day which is not a Business Day, the due date thereof shall
be the immediately succeeding Business Day. 

 This Note is entitled to the security and benefits provided in the Loan Agreement and the
other Transaction Documents, including, but not limited to, such security as provided therein. Upon the occurrence of any Event of Default under ARTICLE VI of the Loan Agreement, the principal hereof and accrued interest hereon may be declared to be
(or, with respect to certain Events of Default, automatically shall become) immediately due and payable. 
 In the event that
the Lender shall institute any action for the enforcement or the collection of this Note, there shall be immediately due and payable, in addition to the unpaid balance hereof, all late charges and all costs and expenses of such action, including
attorneys’ fees. 
 The Borrower, for itself and its respective successors and assigns and any endorsers of the Note from
time to time, hereby waives presentment, protest, demand for payment, diligence, notice of dishonor and of nonpayment, and any and all other notices or demands in connection with the delivery, acceptance, performance, default or enforcement of this
Note, hereby waives and renounces all rights to the benefits of any statute of limitations and any moratorium, appraisement, exemption and homestead now provided or which may hereafter be provided by any federal or state statute, including, without
limitation, exemptions provided by any federal or state statute, including, without limitation, exemptions provided by or allowed under any federal or state bankruptcy or insolvency laws, both as to themselves and as to all of their respective
property, whether real or personal, against the enforcement and collection of the obligations evidenced by this Note and any and all extensions, renewals and modifications hereof and hereby consent to any extensions of time, renewals, releases of
any party to this Note, waiver or modification that may be granted or consented to by the Lender. 
 The Borrower agrees that
its obligations hereunder are absolute and unconditional without regard to the liability of any other party and that no delay on the part of the holder hereof in exercising any power or right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any power or right hereunder preclude other or further exercise thereof or the exercise of any other power or right. 
 If at any time this transaction would be usurious under applicable law, then regardless of any provision contained in the Loan Agreement or this Note or any other agreement made in connection with this
transaction, it is agreed that (a) the total of all consideration which constitutes interest under applicable law that is contracted for, charged or received upon the Loan Agreement, this Note or any other agreement shall under no circumstances
exceed the maximum rate of interest authorized by applicable law, if any, and any excess shall be credited to the Borrower and (b) if the Lender elects to accelerate the maturity of, or if the Borrower prepays the indebtedness described in this
Note, any amounts which because of such action would constitute interest may never include more than the maximum rate of interest authorized by applicable law and any excess interest, if any, provided for in the Loan Agreement, in this Note or
otherwise, shall be credited to the Borrower automatically as of the date of acceleration or prepayment. 
 THE UNDERSIGNED
HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO OR ANY BENEFICIARY HEREOF ARISING IN RESPECT OF ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS NOTE. 

 This Note shall be governed by and construed in accordance with the laws of the State of New
York. 
 [ signature page follows ] 

 IN WITNESS WHEREOF, the Borrower has executed and delivered this Note on the date and year
first above written. 
  

			
	COMARCO, INC.
		
	By:	 	      

	Name:	 	
	Title:	 	

 [ signature page 1 to Promissory Note ]

 CONSENT AND AGREEMENT 
 The undersigned, referred to in the foregoing Note as a guarantor, hereby consents and agrees to said Note and to the payment of the amounts contemplated therein, documents contemplated thereby and to the
provisions contained therein relating to conditions to be fulfilled and obligations to be performed by it pursuant to or in connection with said Note to the same extent as if the undersigned were a party to said Note. 

 

			
	COMARCO WIRELESS TECHNOLOGIES, INC.
		
	By:	 	 /s/ Thomas W. Lanni

	Name:	 	Thomas W. Lanni
	Title:	 	Presiden and CEO

 [ signature page 2 to Promissory Note ]

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