On February 12, 2009, Comarco, Inc., a California corporation ("Comarco") and Comarco Wireless Technologies, Inc., a Delaware corporation and wholly-owned subsidiary of Comarco (collectively, "Borrower"), entered into a Loan and Security Agreement (the "Loan Agreement") with Silicon Valley Bank ("SVB"). The credit facility matures, and any outstanding principal balance is payable in full, on February 10, 2010, which is 364 days from the effective date of the Loan Agreement.

Under the Loan Agreement, Borrower may borrow up to (a) the lesser of
(i) $5,000,000 or (ii) 80% of Borrower's eligible accounts receivable minus
(b) the amount of any outstanding principal balance of any advances made by SVB under the line of credit. As of February 12, 2009, Borrower had not borrowed any amounts under the Loan Agreement.

Amounts borrowed will bear interest at a floating per annum rate equal to 1.50% above the Prime Rate or, for any period in which Borrower has failed to maintain certain liquidity thresholds and a period of three months following the cure thereof, 2.50% above the Prime Rate. The "Prime Rate" is the rate announced from time to time by SVB as its "prime rate." In connection with the Loan Agreement, Borrower paid a non-refundable commitment fee of $25,000 and, for any period in which Borrower has failed to maintain certain liquidity thresholds, Borrower would be subject to a collateral monitoring fee of $1,000, payable on the last day of each month.

The Borrowers' obligations under the Loan Agreement are secured by a first priority perfected security interest in Borrower's assets, including intellectual property.

The Loan Agreement contains customary representations and warranties, affirmative and negative covenants, and events of default, which events of default include Borrower's failure to pay any principal, interest or other amounts when due, Borrower's violation of certain covenants or the occurrence of a change in control of Borrower. Upon the occurrence of an event of default, the payment of all obligations under the Loan Agreement may be accelerated and the lending commitments under the Loan Agreement may be terminated.

The foregoing description of the Loan Agreement is not complete and is qualified in its entirety by reference to the Loan Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

(d) Exhibits

Exhibit No.    Description
10.1           Loan and Security Agreement, dated as of February 12, 2009, by and among
               Comarco, Inc., Comarco Wireless Technologies, Inc. and Silicon Valley
               Bank