This LOAN AGREEMENT (as amended from time to time, this "Agreement"), replaces and supercedes an
interim demand loan of October 4, 2001 (the "Bridge Loan"), and is intended to take effect as of October 4,
2001 and is entered into by and among Car Security S.A., an Argentina corporation (the "Borrower"), and
LoJack Recovery Systems Business Trust, a Massachusetts business trust and a subsidiary of LoJack
WHEREAS, Borrower and Lender have agreed that Lender or its parent will advance an aggregate of up to
$1,750,000 to Borrower under certain conditions.
NOW, THEREFORE, in consideration of the undertakings herein, Borrower and Lender (together, the "Parties")
hereby agree as follows:
1. The Loan.
Subject to and on the terms and conditions of this Agreement:
(a) Lender agrees to lend to Borrower, and Borrower agrees to borrow from Lender, an aggregate cash
principal amount of up to $l,750,000 (the "Loan"), which amount shall be advanced in installments as set forth in
Section 4 of this Agreement. Advances pursuant to the Interim Loan shall be treated as advances hereunder for
(b) The Loan shall be made by Lender to Borrower in one or more closings. The first closing shall be held at the
offices of Sullivan & Worcester LLP, One Post Office Square, Boston, MA 02109, on the date hereof or on
such other date as the parties shall mutually agree ("First Closing"). All closings subsequent to the First Closing
("Subsequent Closings") shall take place on the date on which an Advance (as defined in
Section 4 hereof) is to be made as provided in Section 4. The First Closing and all Subsequent Closings shall be
referred to herein as the "Closings."
(c) At the First Closing, all outstanding obligations of the Borrower to the Lender relating to inventory, as set
forth in Schedule 1 hereof, shall be treated as an Advance hereunder.
(d) Lender shall, without limitation, have the power, in its sole discretion, to amend, modify or wai