Exhibit 10.2

 

FIRST AMENDMENT TO MULTICURRENCY CREDIT AGREEMENT

 

This First Amendment to Credit Agreement (herein, the “Amendment”) is entered
into as of                     , 2005, between LoJack Corporation, a
Massachusetts corporation (the “Parent”) and LoJack Exchangeco Canada Inc., a
Canadian corporation (the “Borrowing Subsidiary” and, together with the Parent,
the “Borrowers” and individually a “Borrower”), the Guarantors party hereto, the
Lenders party hereto and Harris Trust and Savings Bank, as Administrative Agent
for the Lenders.

 

PRELIMINARY STATEMENTS

 

A. The Borrowers, the Guarantors, the Lenders and the Administrative Agent
entered into a certain Multicurrency Credit Agreement, dated as of October 29,
2004 (the “Credit Agreement”). All capitalized terms used herein without
definition shall have the same meanings herein as such terms have in the Credit
Agreement.

 

B. The Borrowers have requested that the Lenders amend Section 8.11 of the
Credit Agreement to allow the Parent to repurchase shares of its capital stock
under certain circumstances, and the Lenders are willing to do so under the
terms and conditions set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. AMENDMENT.

 

Subject to the satisfaction of the conditions precedent set forth in Section 2
below, Section 8.11 of the Credit Agreement (Dividends and Certain Other
Restricted Payments) shall be and hereby is amended and restated in its entirety
to read as follows:

 

Section 8.11. Dividends and Certain Other Restricted Payments. The Parent shall
not, nor shall it permit any Subsidiary to, (a) declare or pay any dividends on
or make any other distributions in respect of any class or series of its capital
stock or other equity interests (other than dividends payable in the Parent’s
capital stock) or (b) directly or indirectly purchase, redeem, or otherwise
acquire or retire any of its capital stock or other equity interests or any
warrants, options, or similar instruments to acquire the same; provided,
however, that the foregoing shall not operate to prevent (i) the making of
dividends or distributions by any Subsidiary to the Parent or (ii) the Parent’s
repurchase of its capital stock so long as (A) the aggregate amount thereof does
not exceed 10% of the Parent’s shareholder’s equity measured as of its most
recently completed fiscal quarter, (B) the aggregate amount of such repurchases
in any fiscal year of the Parent shall not exceed

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$10,000,000, (C) after giving effect to any such repurchases, the Parent shall
have no less than $2,000,000 in liquidity (either in cash or availability under
the Revolving Credit), and (D) at the time of making any such repurchase, and
after giving effect thereto, there shall not exist any Default or Event of
Default.

 

SECTION 2. CONDITIONS PRECEDENT.

 

The effectiveness of this Amendment is subject to the satisfaction of all of the
following conditions precedent:

 

2.1. The Borrowers, the Administrative Agent and the Lenders shall have executed
and delivered this Amendment.

 

2.2. Legal matters incident to the execution and delivery of this Amendment
shall be satisfactory to the Administrative Agent and its counsel.

 

2.3. The Guarantors shall have executed their reaffirmation, acknowledgment, and
consent in the space provided for that purpose below.

 

SECTION 3. REPRESENTATIONS.

 

In order to induce the Lenders to execute and deliver this Amendment, the
Borrowers hereby represent to the Lenders that as of the date hereof the
representations and warranties set forth in Section 6 of the Credit Agreement
are and shall be and remain true and correct (except that the representations
contained in Section 6.5 shall be deemed to refer to the most recent financial
statements of the Borrowers delivered to the Lenders) and the Borrowers are in
compliance with the terms and conditions of the Credit Agreement and no Default
or Event of Default has occurred and is continuing under the Credit Agreement or
shall result after giving effect to this Amendment.

 

SECTION 4. MISCELLANEOUS.

 

4.1. Except as specifically amended herein, the Credit Agreement shall continue
in full force and effect in accordance with its original terms. Reference to
this specific Amendment need not be made in the Credit Agreement, the Notes, or
any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect
to the Credit Agreement, any reference in any of such items to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.

 

4.2. The Borrowers agree to pay on demand all costs and expenses of or incurred
by the Administrative Agent in connection with the negotiation, preparation,
execution and delivery of this Amendment, including the fees and expenses of
counsel for the Administrative Agent.

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4.3. This Amendment may be executed in any number of counterparts, and by the
different parties on different counterpart signature pages, all of which taken
together shall constitute one and the same agreement. Any of the parties hereto
may execute this Amendment by signing any such counterpart and each of such
counterparts shall for all purposes be deemed to be an original. This Amendment
shall be governed by the internal laws of the State of Illinois.

 

[SIGNATURE PAGE TO FOLLOW]

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This First Amendment to Multicurrency Credit Agreement is entered into as of the
date and year first above written.

 

LOJACK CORPORATION, as Parent and

      Guarantor

By  

 

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Name   Joseph F. Abely Title   President

LOJACK EXCHANGECO CANADA INC., as a
Canadian Borrower and Guarantor

By  

 

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Name   Ronald J. Rossi Title   President

BOOMERANG TRACKING INC.

By  

 

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Name   Ronald J. Rossi Title   President

 

Accepted and agreed to.

 

“LENDERS”

 

HARRIS TRUST AND SAVINGS BANK, in its individual
capacity as a Lender and as Administrative Agent

By  

 

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Name  

 

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Title  

 

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BANK OF MONTREAL, in its individual capacity as a
Lender and as Canadian Co-Agent

By  

 

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Name  

 

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Title  

 

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Reaffirmation, Acknowledgement, and Consent of Guarantors

 

The undersigned Guarantors heretofore executed and delivered to the
Administrative Agent and the Lenders the Credit Agreement (wherein the
Guarantors guaranteed the Obligations, Hedging Liability, and Funds Transfer and
Deposit Account Liability). The undersigned hereby consents to the First
Amendment to the Credit Agreement as set forth above and confirms that all
obligations of the undersigned under the Credit Agreement remain in full force
and effect. The undersigned further agree that the consent of the undersigned to
any further amendments to the Credit Agreement shall not be required as a result
of this consent having been obtained. The undersigned acknowledge that the
Lenders and the Administrative Agent are relying on the assurances provided
herein in entering into the Amendment set forth above.

 

LOJACK INTERNATIONAL CORPORATION By  

 

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Name   William R. Duvall Title   President LOJACK GLOBAL LLC By  

 

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Name   Joseph F. Abely Title   President LOJACK OPERATING COMPANY, L.P. By  

 

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Name   Joseph F. Abely Title   President 6292887 CANADA INC. By  

 

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Name   Ronald J. Rossi Title   President BOOMERANG TRACKING INC. By  

 

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Name   Ronald J. Rossi Title   President