Exhibit 10.2(b)

 

INVESTMENT AGREEMENT

 

BETWEEN THE UNDERSIGNED :

 

- Mr Jean-Jacques SCHMOLL, residing 141, rue de Longchamp – 75116 PARIS, married
under the matrimonial regime of community of property1;

 

- Mr Stéphane SCHMOLL, residing 16, rue Descartes – 92190 MEUDON, married under
the matrimonial regime of community of acquired property2;

 

hereafter referred to together as the “Directors”

acting jointly,

 

- Mr Luc CHAMBON, residing 107, rue de l’Université – 75007 Paris, married under
the matrimonial regime of community of acquired property, represented by Mr
Stéphane Schmoll;

 

Mr. Stéphane Schmoll and Mr. Luc Chambon hereafter jointly referred to as
«Directoire / Management Board»

 

IN THE FIRST PART,

 

AND

 

- COLEBROOK a company with £1,000 capital, where the head-office is at 30
Herbert Street, DUBLIN 2, EIRE, registered in Dublin under the number 265396,
represented by Jean-Jacques Schmoll ;

 

- Mrs Florence Kossoff, residing10 bis, rue Vieille Forge, 92170 Vanves, single,
represented by Stéphane Schmoll ;

 

- StockVal, a holding company with US$30.000 capital, where the head-office is
at Curaçao, Antilles Néerlandaises, Schout Bij Nacht Doormanweg 43, registered
in Curaçao under the number 47327, represented by Xavier Gérard ;

 

- Mr Xavier Gérard, residing 21 boulevard Beauséjour, 75116 Paris, married under
the matrimonial regime of community of acquired property ;

 

- Mr Eric Gérard, residing 153 rue de l’Université, 75007 Paris, married under
the matrimonial regime of community of acquired property, represented by Xavier
Gérard ;

 

- Mr Laurent Gérard, residing 5, rue de Sax, 75116 Paris, married under the
matrimonial regime of community of acquired property, represented by Xavier
Gérard;

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1   régime de communauté universelle::legal marriage contract, as defined by the
Code Civil, which stipulates that the property of both spouses, as acquired
before and after the marriage, belongs to both.

2   régime de communauté de biens réduite aux acquêts: legal marriage contract
under which each spouse’s individual property prior to the marriage remains his
or her own, whereas property acquired, either jointly or individually, during
the marriage (with the exception of certain personal items such as clothing or
tools of a trade which are defined by article 1404 of the Code Civil) becomes
community property.

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- Mr Laurent Marnier, residing 11 bis avenue Emile Deschanel, 75007 Paris,
married under the matrimonial regime of community of acquired property,
represented by Xavier Gérard;

 

- Mr Jacques Gérard, residing 14 rue des Barres, 75004 Paris, married under the
matrimonial regime of community of acquired property, represented by Xavier
Gérard;

 

- Mrs Anne-Marie Bouriez married Gérard, residing 14 rue des Barres, 75004
Paris, married under the matrimonial regime of community of property,
represented by Xavier Gérard ;

 

- Mrs Chantal Gérard married Lahalle, residing 15, rue Nicolas Coustou – Domaine
du Parc, 78590 Noisy le Roi, married under the matrimonial regime of separate
property3, represented by Xavier Gérard ;

 

- Mr Edouard Courtial, residing 85, impasse de Ramecourt – 60600 Agnetz, married
under the matrimonial regime of community of acquired property, represented by
Xavier Gérard ;

 

- Mrs Anne Schmitt married Bateson, residing 90 rue de Grenelle, 75007 Paris,
married under the matrimonial regime of separate property, represented by
Jean-Jacques Schmoll ;

 

- Lixcam Inc., a company with head-office at c/o Anglo Irish Bank (Suisse) SA, 7
rue des Alpes, CP 1380 CH1211 Geneva, Switzerland, represented by Jean-Charles
Charpentier;

 

- Mr Hervé Ripault, residing 4, boulevard des Sablons, 92200 Neuilly-sur-Seine,
married under the matrimonial regime of separate property ;

 

- Mr Philippe de Fontenay, residing 17-19, avenue Perronet, 92200
Neuilly-sur-Seine, married under the matrimonial regime of separate property,
represented by Hervé Ripault ;

 

- Mr Arthur de la Grandière, residing 15, rue Raynouard, 75016 Paris, married
under the matrimonial regime of separate property, represented by Hervé Ripault
;

 

- Mr Pierre de Croisset, residing 15, rue Weber, 75116 Paris, single,
represented by Hervé Ripault ;

 

- Mr Philippe Embiricos, residing Commonwealth House, 1-19 New Oxford Street,
London WC1 A1NU, Great Britain, married under the matrimonial regime of separate
property, represented by Jean-Charles Charpentier ;

 

- Scorpion Nominees Ltd, a company with head-office at c/o Oracle Management, 85
Reid Street, PO Box HM 1008 Hamilton HMDX, Bermuda, represented by Jean-Charles
Charpentier ;

 

- Mr Hugues Lamotte, residing 16 Victoria Road, London W85RD, Great Britain,
married under the matrimonial regime of community of acquired property,
represented by Jean-Charles Charpentier ;

 

- Mercure Epargne Longue SA, a “SICAV” (variable capital investment company),
having its registered office at 4-6 Rond Point des Champs-Elysées, 75008 Paris,
registered at the Commercial Register of Paris under the number 438 848 848,
represented by Nicolas Trebouta;

 

here-after referred to, together with the Directors, as the «Founders Group» or
the «Founders » and collecting all the shareholders of the category A holders of
ORA or OC.

 

acting together but not jointly,

 

IN SECOND PART,

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3   séparation de biens: legal marriage contract which recognizes only two
estates in the marriage, that of the husband and that of the wife, ie there is
no community property.

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and

 

- LOJACK Corporation a company under the laws of the State of Massachusetts,
registered with the FED ID 04-2664794, represented by Mr Paul Barrett,

 

here-after referred to as « LOJACK »

 

IN THIRD PART,

 

and

 

- EADS TELECOM, a company with simplified shareholding, with head-office at rue
Jean-Pierre Timbaud 78180 Montigny-le-Bretonneux, registered at the commercial
register of Versailles under the reference 414 848 986, represented by Monsieur
Jean-François Boulin,

 

here-after referred to as « EDSN »

 

IN FOURTH PART,

 

and

 

- Tracker Network UK Ltd, Otter House, Cowley Business Park, High Street,
Cowley, Uxbridge, Middlesex, UB8 2AD Great Britain, represented by Mr. Stephane
Schmoll.

 

in fifth part

 

The signatories of the third, fourth and fifth parts here-after referred to as «
Groupe Investisseurs Industriels /Group of Industrial Investors» or the «
Investisseurs Industriels / Industrial Investors», acting without joint and
several liability,

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and

 

- SIGEFI VENTURES GESTION, a French public share corporation with a capital of
€422,670, having its registered office in Lyon (69006), 139 rue Vendôme,
registered under the number is 420 732 661 RCS Lyon, acting as a management
company in the name and on behalf of SIPAREX VENTURES 1, ING (F) ACTIONS
INNOVATION 1, ING (F) ACTIONS INNOVATION 2, UNI-INNOVATION 1, and acting
furthermore as delegated manager of unlisted assets of the “FCPI” (venture
capital fund specialized in innovative companies) CA-AM INNOVATION , represented
by Mr. Michel FAURE, is duly empowered for the purposes of the present,

 

- La société SIPAREX CROISSANCE, a French limited partnership with share
capital, with a capital of €66,462,675, having its registered office at 139 rue
Vendôme, 96006, registered under the number 312 056 641 at the Commercial
Register of Lyon, represented by its management company SIGEL, a French
simplified joint-share company with a capital of €1,891,336, having its
registered office at 139 rue Vendôme, 69006 Lyon, registered under the number
331 595 587 at the Commercial Register of Lyon, itself represented by Mr. Michel
FAURE, duly empowered for the purposes of the present,

 

- La société SIPAREX DEVELOPPEMENT, a French limited partnership with share
capital, with a capital of €35,081,220, having its registered office at 166 rue
du Faubourg Saint-Honoré, 75008 Paris, represented by its management company
SIGEFI, a French simplified joint-share company with a capital of €1,891,336,
having its registered office at 139 rue Vendôme, 69006 Lyon, registered under
the number 331 595 587 at the Commercial Register of Lyon, itself represented by
Mr. Michel FAURE, duly empowered for the purposes of the present,

IN SIXTH PART,

 

The Signatories of the sixth part will be referred to here-after as the «Group
Siparex » acting without joint and several liability,

 

AND

 

- CREDIT LYONNAIS PRIVATE EQUITY, a French public share corporation with a
Management Board and a Supervisory Board, with a capital of €8,000,000, having
its registered office in Paris (75116), 43/47 avenue de la Grande Armée,
registered at the Commercial Register of Paris under the number B 428 711 196,
represented by Mr. Roland DERRIEN, acting as a management company in the name
and on behalf of the “FCPR” (authorized venture capital fund) CL Développement 1
and of the “FCPI” (see above) Crédit Lyonnais Innovation 1,

 

IN SEVENTH PART,

 

and

 

- BNP PARIBAS DEVELOPPEMENT, a French simplified joint-share company with a
capital of €68,000,000, having its registered office in Paris (75009), rue
Chauchat, registered at the Commercial Register of Paris under the number B 348
540 592, represented by Mr.Denis BOUGNOUX, duly empowered for the purposes of
the present,

 

IN EIGHTH PART,

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AND

 

- VIVERIS MANAGEMENT, a French simplified joint-share company with a capital of
€168,700, having its registered office in Marseille, registered at the
Commercial Register of Marseille under the number 432 544 773, represented by
Mr. Philippe Reynaud, duly empowered for the purposes of the present, acting as
a management company in the name and on behalf of the “FCPI” INNOVERIS
Compartment 1 and INNOVERIS III, Common Investment Funds for Innovation,

 

IN NINETH PART,

 

The Signatories of the sixth to nineth part here-after referred to as « Group
Investisseurs Financiers / Financial Investors Group » or the « Financial
Investors » acting without joint and several liability,

 

The Signatories of the third to nineth part here-after globally referred to as «
Groupe Investisseurs / Investor Group » of the « Investisseurs / Investors » and
gathering together all the shareholding of Groups B and C, acting without joint
and several liability,

 

The Signatories of the first to nineth part, hereafter referred to as «
Signatories ».

 

ALSO INTERVENEING PRESENTLY

 

- TRAQUEUR, a French public share corporation (société anonyme) with a capital
of €423,120, having its registered office in Issy-les-Moulineaux (92130), 17
Place de la Résistance, registered under the number 412 027 492 at the
Commercial Register of Nanterre, duly represented by Mr. Stéphane Schmoll in his
capacity as Chairman of the Management Board,

 

here-after « TRAQUEUR » or the « Company ».

 

PRELUDE

 

A. In October 2001, Traqueur decided to raise funds from the Investor Group.

 

Through the Extraordinary General Assembly of 15th October 2001, it was decided
to raise €4,571,385 from the Investor Group based on a company value
pre-investment of €9,899,890 and after conversion of the loans of April 2001 as
illustrated here below.

 

This increase in funds of €4,571,385 was realized in the following way;

 

-   Issuance of 6,698 shares at a nominal value of €15 each, matched by an
issuance premium of €440 per share;

 

-   Issuance of convertible bonds (called <<ORA>>) allocated by 3,552 ORA of
categories 01 and 02 for a total amount of €1,616,160.

 

It was also decided within the framework of this extraordinary general meeting
of 15 October 2001 to authorize the Directoire to issue BSPCE and BSA (Share
Warrants).

 

To date, the allocation of the share capital and voting rights of the company is
as follows:

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Shareholder

--------------------------------------------------------------------------------

     Shares

--------------------------------------------------------------------------------

     Category

--------------------------------------------------------------------------------

     Convertible
Bonds (ORA 1)

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     Convertible
Bonds (ORA 2)

--------------------------------------------------------------------------------

     Share Warrants
(BSA/BSPCE)

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Directors

     7.612      A      0      0      1.602

Others

     9.759      A      0      108      1.685

Total Founders

     17.371      —        0      108      3.287

FCPI CLI

     1.137      C      0      57      0

BNP P-D

     848      C      0      38      0

Tracker

     0      B      0      0      44

LoJack

     2.232      B      1.116      0      0

EADS

     2.823      B      335      0      200

FCPR CL CD1

     670      C      335      0      0

FCPR Siparex V1

     1.139      C      570      0      0

Siparex Croissance

     44      C      22      0      0

Siparex Dév.

     22      C      11      0      0

FCPI ING (F) AI 1

     156      C      78      0      0

FCPI ING (F) AI 2

     312      C      156      0      0

FCPI I I 1

     446      C      223      0      0

FCPI U I 1

     112      C      56      0      0

Innoveris

     894      C      447      0      0

Sigefi Ventures Ges

     1      C      0      0      0

CL Private Equity

     1      C      0      0      0

Total Subscribers

     10.837             3.349      95              

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TOTAL

     28.208      —        3.349      203      3.531

 

B.   Beginning 2003, the Company was faced with a cash problem due to a delay in
commercial operations compared with the Business Plan of October 2001.

 

The Extraordinary General Assembly of 21 February 2003 authorized the Directoire
to issue a bond for a nominal amount of € 2 million divided into 133,333 bonds
with a nominal value of €15 each (hereafter called the <<OC>>), convertible at
the holders’ wish.

 

This authorization was used by the Directoire on 27th February 2003.

 

The subscription of the OC was realized as follows ;

--------------------------------------------------------------------------------

Subscribers

--------------------------------------------------------------------------------

   Bonds

--------------------------------------------------------------------------------

LoJack

   22.928

Funds managed by Sigefi & SVG

   22.928

FCPI CLI

   0

CLCD 1

   18 236

BNP Développement

   4 919

Innoveris

   9 189

Sub-total Subscribers

   78 200

M. Xavier Gérard

   13.400

M. Hervé Ripault

   1.334

Mercure Epargne Longue SA

   11.657

Mme Anne Bateson

   1.465

Others

   27.277

Sub-Total Subscribers Group A

   55.133     

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Total

   133.333

 

C.   However, since the cash requirements of the Company were in excess of the
bond amounts, it was foreseen for the Company to raise further funds in July
2003.

 

Today the Company is searching for an external investor, and as the near term
cash requirements are threatening its survival, the Investors as well as the
Signatories are notified that for the benefit of the Company a new fund raising
(hereafter called << Investissement>>) is arranged to ensure the survival of the
Company.

 

In order to restructure the Balance Sheet of the Company with a view to simplify
and make it more healthy, the Signatories have agreed that prior to the
realization of the Investissement, the terms and conditions of the ORA and OC
have to be modified in order to convert the OC’s early, and regarding the ORAs,
reimburse them with shares early to simplify the distribution of capital
ownership and enable the needed new investment in the fall 2003 by an external
entity.

 

D. After the redemption in shares of the ORA and the OC, the breakdown of the
Company shares representing the share capital shall be the following:

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SHAREHOLDERS

--------------------------------------------------------------------------------

     SHARES

--------------------------------------------------------------------------------

     CATÉGORY

--------------------------------------------------------------------------------

     WARRANTS

--------------------------------------------------------------------------------

Directors

     4.560      A      1.602

Others

     25.298      A      1.685

Total Founders

     29.858      —         

BNP P-D

     1.785      C       

Tracker

     0      B      44

LoJack

     12.961      B       

EADS

     4.230      B      200

Groupe CL

     8.002      C       

Groupe Siparex

     7.914      C       

FCPI ING (F) AI 1

     1.000      C       

FCPI ING (F) AI 2

     1.531      C       

FCPI I I 1

     2.927      C       

FCPI U I 1

     734      C       

Innoveris I et Innoveris III

     7.400      C       

Total Investors

     48.484                     

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TOTAL

     78.342      —        3.531

 

The investment shall be completed with an increase of the share capital
amounting to €1,500,000, issuance premium included, through the issuance of
15,000 new shares for €100 each, the preferential right of subscription of all
shareholders for such issuance being waived.

 

The signatories have then agreed to set forth their agreement regarding the
Investment with the entering into of this agreement hereof (being referred to as
the «Agreement »).

 

Consequently it has been agreed as follows:

 

ARTICLE 1 - PURPOSE

 

The purpose of the present agreement (hereafter, the “Agreement”) is to define
the terms and conditions for the Investment decided by the Signatories as well
as the terms and conditions for the redemption of the Redeemable Bonds in shares
and the conversion of the Convertible Bonds into shares.

 

The Capital Increase and the terms and conditions for the redemption of the
Redeemable Bonds in shares and the conversion of the Convertible Bonds into
shares will be decided respectively by (i) the Extraordinary General Meeting of
the Company’s shareholders convened for July 28, 2003, the resolutions of the
agenda of which are the attached as Appendix A hereto, and (ii) the special
meetings of the holders of Redeemable Bonds and Convertible Bonds, convened for
July 28, 2003, the resolutions of the agenda of which are attached as Appendix B
and C hereto.

 

ARTICLE 2 - REPRESENTATIONS AND WARRANTIES

 

Each legal entity signatory of the Agreement hereby represents and warrants to
the other Signatories as follows:

 

  -   that it is a company or a legal entity validly incorporated under the
applicable law and acting in compliance with such applicable law,

 

  -   that it, or its permanent representative, has the capacity and power of
attorney to execute and enforce the Agreement,

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  -   that the execution and the enforcement of the obligations under the
Agreement have been duly authorized by its competent bodies and shall not evoke
violation, termination or modification of any provision of any contracts or
agreements to which it is a party and that the Agreement does not contradict any
of these contracts or agreements.

 

ARTICLE 3 - REPRESENTATION RELATING TO THE COMPANY’S ACCOUNTS

 

3.1 The Company’s Officers hereby declare that the Company’s intermediary
accounts as at September 31, 2003 (i) have been established in compliance with
generally-accepted accounting principles in France, (ii) have been approved
without reserve by the Management Board , and (iii) have been subjected to a
limited review by the Company Auditor.

 

3.2 In addition, the Company declares and guarantees;

 

- that all capital items and claims set out on the balance sheet indeed existed
as at 31 March 2003;

 

- that the Company indeed owns, without restrictions or reserves, all tangible
and intangible assets set out on the balance sheet or inventories, that these
assets are free of any mortgage, collateral, pledge or any other real rights4,
and that it is not encumbered by any impediment, servitude or restriction which
could limit its ownership or beneficiary ownership rights, except with respect
to the capital items set out in the LoJack license; has 17 short term SICAV
Etoile for an amount of €132,541 as a guarantee for the office lease situated at
17 place de la Resistance in Issy-les-Moulineaux; has 25 base stations with
series number 001 to 0025 (€95,854.62) and 140 TRU Tracker repeaters with unit
series from 00D408C with 165 VLU test units with numbers from 0342000 to 03420A5
(US$ 49,190) cautioned to CREDIT COOPERATIVE as collateral for a loan of
€762,245.00 dated 07/29/03.

 

- that, particularly, the trademarks, patents, industrial designs and utility
models mentioned on its balance sheet or inventory were duly filed, registered
and published at the Institut National de la Propriété Industrielle (national
institute of industrial property), and that the corresponding taxes and fees are
duly acquitted to date;

 

- that the presentation and evaluation of the assets and liabilities on the
balance sheet of 31 March 2003 comply with applicable legal, accounting and
fiscal regulations and that the capital items susceptible to depreciation due to
events occurring of ongoing at 31 March 2003, were duly subject, at that date’s
cut-off control, to adequate provisions to record such depreciation, if any;

 

- that the Company, in order in insure its property and operations against the
risks to which they may be exposed, and to insure against material and personal
damage by a third party, has taken out an insurance policy such as would any
prudent merchant or industrialist and that it is up-to-date with the payment of
its insurance premiums;

 

- that the Company is bound by no commitment of backing, aval or guarantee for
the execution of contracts by a third party (or by its shareholders), its
directors or employees;

 

- that there is no litigation, legal action, or judicial or administrative
proceeding concerning the Company, its operations, securities, employees or
property, for which the amounts claimed exceed €15,000 and in any event, these
were covered by adequate provisions in the balance sheet of 31 March 2003;

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4 droit réel : in civil law, a right that is attached to a thing rather than a
person <the right of ownership...may be burdened with a real right in favor of
another person as allowed by law Louisiana Civil Code>

A real right is not restricted to real property since it can also be attached to
movable property. Real rights include ownership, use, pledge, usufruct,
mortgage, and predial servitude.

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- that the Company is neither a partner to an undisclosed partnership or a
general partnership, nor the sole shareholder of an incorporated sole
proprietorship, nor a member of a “grouping of mutual economic interest”5, and
has no holding of more than 10% of the share capital or voting rights in another
company, with the exception of 51% of the share capital and voting rights in
LoJack International Benelux Sprl;

 

- that the Company was, at 31 March 2003, up to date with its fiscal and social
declarations and had paid or adequately provided for all faxes, fees and
contributions required by the applicable regulations, and that it had not, at
this date, received notification of any adjustment or inspection by tax or
social security (URSSAF) authorities, due to inadequate provisions on its 31
March 2003 balance sheet;

 

- that it has strictly complied with economic and competition regulations, as
well as with the legal or regulatory provisions applying to hygiene, safety and
environmental protection, and that no certificate of offence relating thereto
has been drawn up against it;

 

- that it is not in infringement of customs or exchange regulations with regard
to any commercial or financial transactions it has entered into to this day, and
that no certificate of offence relating thereto has been drawn up against it;

 

- that the fixtures and installations in the buildings used for its operations
are in conformity with the regulations applying to its business activity;

 

- that all employment contracts comply with the provisions of applicable laws
and collective agreements;

 

- that, generally speaking, with the exception of the LoJack license agreement
and the agreements executed with law enforcement officials, the Company has not
entered into any agreements with its suppliers, clients or other third parties
subjecting it to the overriding regime of ordinary law (French administrative
law), notably with respect to the exclusive nature of these agreements;

 

- that the Company has received no notice of offense, even contested, which
could result in an order forbidding it partially or totally to carry out
operations, or restricting operations, or devaluating its assets;

 

- that it has carried out, since this date, no transaction outside of the normal
everyday management of its operations, and has taken no decision which could
bring about a negative change in its financial or commercial situation;

 

- that it has proceeded with no allocation of assets, of any kind whatsoever, to
shareholders or directors, since this date.

 

3.3 None of the above representations omits to disclose any important fact, the
disclosure of which would be material to the Subscribers’ awareness of the
Company’s assets and undertakings and of its financial result.

 

ARTICLE 4 – DESCRIPTION OF FINANCING

 

4.1 Modifications of the terms and conditions for the redemption of the
Redeemable Bonds 1 and of the Redeemable Bonds 2.

 

The Signatories agree to modify the terms and conditions of the Redeemable Bonds
in order to allow the holders of Redeemable Bonds to obtain early redemption of
their bonds in Company shares, according to the following terms and conditions:

 

  -   the Redeemable Bonds will be subject to early redemption on July 28, 2003;

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5 Groupement d'Intérêt Economique (GIE): legal entity created under French Law
in 1967 in order to facilitate the constitution of collaborative ventures
between companies.

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  -   the par value of the Redeemable Bonds 1 at redemption will be 4.2 Company
shares for 1 produced Redeemable Bond 1, i.e., a total of 6,094 category B new
shares and 7,971 category C new shares;

 

  -   the redemption par value of the Redeemable Bonds 2 will be 5.25 Company
shares for 1 produced Redeemable Bond 2, i.e., a total of 567 category A new
shares and 498 category B new shares;

 

hereafter, the “Redemption of the Redeemable Bonds”

 

4.2    Modification of the Terms and Conditions of Conversion of the March 2003
Convertible Bonds

 

The Signatories agree to modify the terms and conditions of the Convertible
Bonds in order to allow the holders of Convertible Bonds to convert them
according to the following terms and conditions:

 

  -   the holders of Convertible Bonds will ask for the early conversion of
their Convertible Bonds into new shares of the Company on August 1,2003, and

 

  -   the conversion par value of the Convertible Bonds will be 1 new share for
6.66 produced Convertible Bonds, i.e., a total of 20,000 new actions allocated
in 8,270 category A new shares, 3,440 category B new shares and 8,290 category C
new shares,

 

hereafter, the “Conversion of the Convertible Bonds”.

 

4.3    Capital Increase – Procedure

 

The Signatories agree to carry out an increase in capital (hereafter, the
“Increase in Capital”) of a nominal amount of €225,000 and of a total amount,
premium included, of one million five hundred thousand euros (€1,500,000)
through the issue of fifteen thousand (15.000) new shares at a price of one
hundred euros (€100) per share.

 

The Capital Increase will be decided at the extraordinary general meeting .

 

The 15,000 new shares will be allocated as follows:

 

  -   3,650 category A shares;

 

  -   2,600 category B shares;

 

  -   8,750 category C shares.

 

The Capital Increase will include the elimination of the shareholders’
subscription preferential rights for the benefit of the second part Signatories
of the hereby Agreement and the members of the Investors Group, according to the
allocation set out in Article 5.3 below.

 

4.4    Structure of the Supervisory Board

 

The Signatories agree to modify the structure of the Supervisory Board of the
Company, by reducing the number of its members from eight (8) to six (6) and by
modifying Article 22 of the Company’s bylaws accordingly.

 

Following the Extraordinary General Meeting, the Supervisory Board will be
composed of six members, two of which will be appointed from among the
candidates proposed by the Founders. The remaining provisions regarding the
Supervisory Board’s composition and organization remain unmodified.

 

4.5 Treatment of the breaking of the ORA and OC

 

Considering (i) that as the OC convert and the reimbursements in shares of the
ORA1 and ORA2 foreseen herein shall be considered a breakage, (ii) that the
method of treating these breakages is with the lowest common denominator with
payment by the Company to the holders of the amount, and that (iii) the amount
of capital held by

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the company is negative, the parties recognize that applying article 174-5 of
the decree of 23 March 1967, following article 225-163 of the Code of Commerce,
the amount owed by the company to the holders of the bonds as per the principles
illustrated here above, will be equal to zero (0).

 

ARTICLE 5 – SIGNATORIES’ UNDERTAKINGS

 

5.1    Convening of the General Meetings

 

The Chairman of the Management Board commits himself to convene the
Extraordinary General Meeting and the General Meetings of the holders of
Convertible Bonds (March 2003) and of Redeemable Bonds 1 and Redeemable Bonds 2.

 

5.2    Signatories’ Undertaking to Vote

 

The Chairman of the Supervisory Board, the members of the Supervisory Board and
the members of the Management Board undertake, each regarding his own concern,
to produce, recommend, vote and put to vote by the Company’s social bodies, any
resolution enabling the Redemption of the Redeemable Bonds, (ii) the Conversion
of the Convertible Bonds, (iii) the implementation of the Capital Increase and
the modifications of the composition of the Supervisory Board, this undertaking
constituting an irrevocable voting agreement for the entire duration of the
Agreement.

 

Each Signatory also undertakes, each regarding his own concern, to vote for any
resolution enabling (i) the Redemption of the Redeemable Bonds, (ii) the
Conversion of the Convertible Bonds, (iii) the implementation of the Capital
Increase and (iv) the modification of the composition of the Supervisory Board,
at the Extraordinary General Meeting, this commitment constitutes an irrevocable
voting agreement for the entire duration of the Agreement.

 

5.3 Signatories’ Undertaking to Subscribe

 

Once the conditions precedents set out in Article 6 below are fulfilled, the
second part Signatories and the members of the Investors Group commit themselves
to subscribe to the Capital increase on July 28, 2003 according to the following
allocation:

 

  •   3,650 category A shares reserved for the following shareholders:

 

- Xavier GERARD

   2,150 shares

- Eric GERARD

   150 shares

- Laurent GERARD

   150 shares

- Jacques GERARD

   150 shares

- Anne-Marie GERARD

   150 shares

- Chantal LAHALLE

   150 shares

- Laurent MARNIER

   100 shares

- La société STOCKVAL

   150 shares

- La société COLEBROOK

   500 shares

 

  •   2,600 category B shares reserved to LoJack

 

  •   8,750 C category shares reserved to the following shareholders:

 

  -   3,750 shares for the Siparex group

 

  -   3,250 shares for the Viveris group

 

  -   1,750 shares for the Crédit Lyonnais group

 

who will have the exclusive right to subscribe to these 15,000 shares.

--------------------------------------------------------------------------------

This subscription undertaking involves the number of shares appearing in front
of each of the names in the above list, without joint liability between the
Signatories.

 

The second part Signatories and the members of the Investors Group undertake to
pay up this subscription on July 31, 2003 at the latest, by payment of the
amount appearing in the above table to the bank account of the Company opened
for that purpose.

 

5.4 Renunciation of Provisions of Articles 4 and 6 of the Shareholders Agreement

 

For the exclusive needs of the transaction which is the purpose of the present
Agreement, the Parties will irrevocably and firmly renounce the enforcement of
the provisions of Articles 4 and 6 (regarding the full-ratchet and the control
change) Shareholders Agreement of the November 26, 2001 due to the
implementation of the Investment, the Redemption of the Redeemable Bonds and the
Conversion of the Convertible Bonds.

 

ARTICLE 6 – CONDITIONS PRECEDENT

 

The enforcement of all rights and obligations contained in the present Agreement
is subject to the prior fulfillment of the following conditions precedent, which
must have been fulfilled on July 31, 2003 at the latest.

 

  a)   holding of the Extraordinary General Meeting on July 28, 2003 at the
latest, and approval of the Redemption of the Redeemable Bonds, of the
Conversion of the Convertible Bonds, of the Capital Increase, of the
modification of the composition of the Supervisory Board;

 

  b)   approval by the General Meeting of the holders of Redeemable Bonds of the
Redemption of the Redeemable Bonds on July 28, 2003 and effective redemption of
all Redeemable Bonds in shares;

 

  c)   approval by the General Meeting of the holders of Convertible Bonds of
the Conversion of the Convertible Bonds on July 28, 2003 and effective
conversion of all Convertible Bonds into shares;

 

  d)   absence of any facts or accrual of new facts which could have an serious
unfavorable effect on the Company’s business activities, economic and financial
situation, assets or forecast between the date of execution of the Agreement and
the holding of the Extraordinary General Meeting;

 

  e)   agreement on the terms of the Agreement by the financial committee of
each Investor through production of a certificate on the date of the
Extraordinary General Meeting at the latest;

 

  f)   cancellation of all potential fund-raising contracts (en cours de levée
de fonds) that the Company may have signed with no expenses at its charge and
without resale rights (droit de suite).

 

ARTICLE 7 - DURATION

 

The present Agreement becomes effective on this day, notwithstanding the fact
that certain of Signatories who are members of the Founders’ Group will initial
it and sign at a later date, at the guarantee of Mr. Hervé Ripault. The
Agreement will remain in force until July 31, 2003: it will automatically become
null and void in the event any of its conditions remain unsatisfied at that
date.

 

ARTICLE 8- NOTIFICATION

 

Any notification, petition, summons, authorization or other communication
concerning the Agreement will only be valid if it is made in writing and sent
extra-judicially by registered letter, facsimile, or electronic message (receipt
of faxes and electronic messages must be confirmed the same day by registered
letter with proof of receipt) to the following addresses:

--------------------------------------------------------------------------------

For the Company:

 

To its registered office, as set out on the first page of this Agreement, to the
attention of one of the Company’s Officers.

 

For the Investors:

 

To the registered office of the respective companies, to the attention of their
representative, as set out on the first page of this Agreement.

 

The date of notification is the date of reception by the recipient of the
registered letter.

 

ARTICLE 9 - EXPENSES

 

The Company undertakes to meet all expenses incurred by it in the preparation
and the drafting of the agreement as well as the costs associated with the
implementation of the investment, including all the costs, fees and
disbursements associated with legal, accounting, and other counsel.

 

ARTICLE 10- APPLICABLE LAW - ELECTION OF DOMICILE - JURISDICTION

 

The application and enforcement of the present Agreement are subject to French
law.

 

For the enforcement of the present Agreement, the Parties elect their respective
registered offices as set out on the first page of this Agreement.

 

Any dispute concerning the interpretation or the enforcement of the present
Agreement will be, in the absence of an amicable agreement between the Parties,
submitted to the Tribunal de Commerce in Paris.

--------------------------------------------------------------------------------

Done in Issy les Moulineaux

In fourteen (14) originals

 

The 28th July 2003

 

Monsieur Jean-Jacques SCHMOLL   Monsieur Stéphane SCHMOLL Monsieur Luc CHAMBON  

COLEBROOK

Represented by Louis Guerrier

Monsieur Xavier GERARD  

Monsieur Eric GERARD

Represented by Xavier Gérard

Monsieur Laurent GERARD

Represented by Xavier Gérard

 

Monsieur Jacques GERARD

Represented by Xavier Gérard

Madame Anne-Marie GERARD

Represented by Xavier Gérard

 

Madame Chantal LAHALLE

Represented by Xavier Gérard

Monsieur Laurent MARNIER

Represented by Xavier Gérard

 

Monsieur Edouard COURTIAL

Represented by Xavier Gérard

--------------------------------------------------------------------------------

Madame Anne BATESON

Represented by Jean Jacques Schmoll

 

LIXCAM INC

Represented by Jean-Charles Charpentier

Madame Florence KOSSOF  

Monsieur Arthur de la GRANDIERE

Represented by Hervé Ripault

Monsieur Hervé RIPAULT  

Monsieur Philippe EMBIRICOS

Represented by Jean-Charles Charpentier

Monsieur Philippe de FONTENAY

Represented by Hervé Ripault

 

SCORPION NOMINEES LTD

Represented by Jean-Charles Charpentier

Monsieur Pierre de CROISSET

Represented by Hervé Ripault

 

LOJACK

Represented by Paul Barrett

Mercure Epargne Longue

Represented by Nicolas Trebouta

 

Monsieur Hugues LAMOTTE

Represented by Jean-Charles Charpentier

--------------------------------------------------------------------------------

STOCKVAL

Represented by Xavier Gérard

 

SIGEFI VENTURES GESTION

Represented by Michel Faure

EADS TELECOM SAS

Represented by Jean-François Boulin

 

SIPAREX DEVELOPPEMENT

Represented by Michel Faure

SIPAREX CROISSANCE

Represented by Michel Faure

 

BNP PARIBAS DEVELOPPEMENT

Represented by Denis Bougnoux

CREDIT LYONNAIS PRIVATE EQUITY

Represented by Roland Derrien

 

VIVERIS MANAGEMENT

Represented by Philippe Raynaud

TRAQUEUR

Represented by Stéphane Schmoll

 

TRACKER NETWORK UK

Represented by Stéphane Schmoll