Exhibit 10.1

 

 

SIXTH AMENDMENT TO LOAN AGREEMENT

 

This Sixth Amendment to Loan Agreement (this “Amendment”) is entered into as of
April 27, 2005 by and among:

 

CITIZENS BANK OF MASSACHUSETTS (the “Lender”) a Massachusetts bank with offices
at 28 State Street, Boston, Massachusetts 02109,

 

and

 

LOJACK CORPORATION (in such capacity, the “Lead Borrower”), a Massachusetts
corporation with its principal executive offices at 200 Lowder Brook Drive,
Suite 1000, Westwood, Massachusetts 02090, as agent for the following
(individually, a “Borrower” and collectively, the “Borrowers”):

 

LOJACK CORPORATION, a Massachusetts corporation with its principal executive
offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090,

 

LOJACK INTERNATIONAL CORPORATION, a Delaware corporation with its principal
executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts
02090,

 

LOJACK GLOBAL LLC, a Delaware limited liability company with its principal
executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts
02090,

 

LOJACK OPERATING COMPANY, L.P., a Delaware limited partnership with its
principal executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood,
Massachusetts 02090,

 

VEHICLE RECOVERY SYSTEMS COMPANY, a corporation organized under the laws of the
province of Nova Scotia, Canada with its principal executive offices at 200
Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090.

 

in consideration of the mutual covenants contained herein and the benefits to be
derived herefrom. Unless otherwise specified herein, all capitalized terms shall
have the same meaning as set forth in the Loan Agreement (as hereinafter
defined).

 

WITNESSETH

 

WHEREAS, the Borrowers executed and delivered to the Lender a certain Loan
Agreement dated June 21, 2002, as amended by a certain First Amendment to Loan
Agreement dated July 30, 2002, as further amended by a certain Second Amendment
to Loan Agreement dated November 1, 2002, as further amended by a certain
Amendment No. 1 to Loan Agreement and Consent dated January 8, 2003, as further
amended by a certain Third Amendment to Loan Agreement dated January 21, 2003,
as further amended by a certain Fourth Amendment to Loan Agreement dated June 8,
2004, and as further amended by a certain Fifth Amendment to Loan Agreement
dated October 21, 2004 (as amended, the “Loan Agreement”); and

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WHEREAS, the Borrowers and the Lender have agreed to further amend the Loan
Agreement in order to, among other things, (i) reduce the amount of the facility
from $5,000,000 to $4,000,000, (ii) acknowledge that the loan facility is a
demand facility and, accordingly, any outstanding loans or advances thereunder
shall be repaid upon the Lender’s demand, and (iii) acknowledge that any further
loans and advances made under the facility shall be at the sole discretion of
the Lender in each instance; and

 

WHEREAS, the Borrowers have determined that this Amendment is in the Borrowers’
best interests.

 

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

 

1. The Borrowers hereby certify to the Lender that, to the best of each
Borrower’s knowledge and belief after due inquiry, the representations and
warranties contained in the Loan Agreement are true as of the date hereof.

 

2. The Loan Agreement is hereby amended by deleting the definition of “Revolving
Credit Ceiling” appearing in Article 1 thereof in its entirety and inserting in
lieu thereof the following:

 

“            “Revolving Credit Ceiling”:        $4,000,000.00.”

 

3. The Loan Agreement is hereby amended by deleting Exhibit 2:2-7 thereto in its
entirety and inserting in lieu thereof Exhibit 2:2-7 hereto.

 

4. The Loan Agreement is hereby amended wherever necessary to reflect the
changes described above.

 

5. The Borrowers acknowledge and agree that the Borrowers have no offsets,
defenses, claims or counterclaims against the Lender with respect to the Loan
Agreement, this Amendment or any other document, instrument or agreement
executed and delivered by the Borrowers to the Lender in connection therewith
and, to the extent that the Borrowers have any such offsets, defenses, claims or
counterclaims, each Borrower hereby affirmatively WAIVES any such offsets,
defenses, claims or counterclaims and specifically RELEASES the Lender from any
such liability on account thereof.

 

6. This Amendment and all other documents, instruments or agreements executed in
connection herewith incorporate all discussions and negotiations between the
Borrowers and the Lender, either expressed or implied, concerning the matters
included herein, any statute, custom, or usage to the contrary notwithstanding.
No such discussions or negotiations shall limit, modify or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of
this Amendment or the Loan Agreement or any provision under any other agreement,
document or instrument between the Borrowers and the Lender shall be effective
unless executed in writing by the party to be charged with such modification,
amendment or waiver, and if such party be the Lender, then by a duly authorized
officer thereof.

 

7. Except as specifically modified herein, the Loan Agreement shall remain in
full force and effect as originally written and the Borrowers hereby ratify and
confirm all terms and conditions contained therein.

 

8. This Amendment shall be construed in accordance with and governed by the laws
of the Commonwealth of Massachusetts and shall take effect as a sealed
instrument.

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IN WITNESS WHEREOF, the parties have hereunto set their hands and seals as of
the date first written above.

 

Lead Borrower: LOJACK CORPORATION By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer Borrowers: LOJACK CORPORATION By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer LOJACK INTERNATIONAL CORPORATION By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer LOJACK GLOBAL LLC By:   LOJACK CORPORATION, its sole Member     By  

/s/    Keith Farris

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    Duly Authorized     Print Name: Keith Farris     Title:               Chief
Financial Officer

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LOJACK OPERATING COMPANY, L.P. By:   LOJACK CORPORATION, its General Partner    
By  

/s/    Keith Farris

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        Duly Authorized     Print Name: Keith Farris     Title:            Chief
Financial Officer

VEHICLE RECOVERY SYSTEMS

COMPANY

By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer Lender: CITIZENS BANK OF MASSACHUSETTS By  

/s/    Lori B. Leeth

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    Duly Authorized Print Name: Lori B. Leeth Title:            Senior Vice
President

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EXHIBIT 2:2-7

 

REVOLVING CREDIT NOTE   CITIZENS BANK OF MASSACHUSETTS Boston, Massachusetts  
April 27, 2005

 

FOR VALUE RECEIVED, the undersigned, LOJACK CORPORATION, a Massachusetts
corporation with its principal executive offices at 200 Lowder Brook Drive,
Suite 1000, Westwood, Massachusetts 02090, (in such capacity, the “Lead
Borrower”), as agent for the following (collectively, the “Borrowers”): LOJACK
CORPORATION, a Massachusetts corporation, LOJACK INTERNATIONAL CORPORATION, a
Delaware corporation, LOJACK GLOBAL LLC, a Delaware limited liability company,
LOJACK OPERATING COMPANY, L.P., a Delaware limited partnership, and VEHICLE
RECOVERY SYSTEMS COMPANY, a corporation organized under the laws of the province
of Nova Scotia, Canada, jointly and severally unconditionally promise to pay to
the order of CITIZENS BANK OF MASSACHUSETTS, a Massachusetts bank with its
offices at 28 State Street, Boston, Massachusetts 02109 (with any subsequent
holder, the “Lender”) ON DEMAND Four Million Dollars ($4,000,000.00) or the
aggregate unpaid principal balance of loans and advances made to or for the
account of the Borrowers pursuant to the Revolving Credit established pursuant
to the Loan Agreement dated June 21, 2002, as amended from time to time (as such
may be further amended, the “Loan Agreement”) between the Lender, on the one
hand, and the Lead Borrower and the Borrowers on the other, with interest at the
rate and payable in the manner stated therein.

 

This is the “Revolving Credit Note” to which reference is made in the Loan
Agreement and is subject to all terms and provisions thereof.

 

The Lender’s books and records concerning loans and advances pursuant to the
Revolving Credit, the accrual of interest thereon, and the repayment of such
loans and advances, shall be prima facie evidence of the indebtedness hereunder.

 

No delay or omission by the Lender in exercising or enforcing any of the
Lender’s powers, rights, privileges, remedies, or discretions hereunder shall
operate as a waiver thereof on that occasion nor on any other occasion. No
waiver of any default hereunder shall operate as a waiver of any other default
hereunder, nor as a continuing waiver.

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Each of the Borrowers, and each endorser and guarantor of this Revolving Credit
Note, respectively waives presentment, demand, notice, and protest, and also
waives any delay on the part of the holder hereof. Each assents to any extension
or other indulgence permitted by the Lender with respect to this Revolving
Credit Note or any extension or other indulgence with respect to any other
liability or any collateral given to secure any other liability of any Borrower
or any other person obligated on account of this Revolving Credit Note.

 

This Revolving Credit Note shall be binding upon each Borrower, and each
endorser and guarantor hereof, and upon their respective heirs, successors,
assigns, and representatives, and shall inure to the benefit of the Lender and
its successors, endorsees, and assigns.

 

The liabilities of each Borrower, and of any endorser or guarantor of this
Revolving Credit Note, are joint and several, provided, however, the release by
the Lender of any one or more such person, endorser or guarantor shall not
release any other person obligated on account of this Revolving Credit Note.
Each reference in this Revolving Credit Note to each Borrower, any endorser, and
any guarantor, is to such person individually and also to all such persons
jointly. No person obligated on account of this Revolving Credit Note may seek
contribution from any other person also obligated unless and until all
liabilities, obligations and indebtedness to the Lender of the person from whom
contribution is sought have been satisfied in full.

 

This Revolving Credit Note is delivered at the offices of the Lender in Boston,
shall be governed by the laws of The Commonwealth of Massachusetts, and shall
take effect as a sealed instrument.

 

Each Borrower makes the following waiver knowingly, voluntarily, and
intentionally, and understands that the Lender in the establishment and
maintenance of the Lender’s relationship with the Borrowers contemplated by this
Revolving Credit Note, is relying thereon. EACH BORROWER, TO THE EXTENT ENTITLED
THERETO, WAIVES ANY PRESENT OR FUTURE RIGHT OF THAT BORROWER, OR OF ANY
GUARANTOR OR ENDORSER OF THAT BORROWER OR OF ANY OTHER PERSON LIABLE TO THE
LENDER ON ACCOUNT OF OR IN RESPECT TO THE LIABILITIES TO A TRIAL BY JURY IN ANY
CASE OR CONTROVERSY IN WHICH THE LENDER IS OR BECOMES A PARTY (WHETHER SUCH CASE
OR CONTROVERSY IS INITIATED BY OR AGAINST THE LENDER OR IN WHICH THE LENDER IS
JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT OF, OR IS IN
RESPECT TO, ANY RELATIONSHIP AMONGST OR BETWEEN ANY BORROWER, ANY SUCH PERSON,
AND THE LENDER.

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EXECUTED under seal as of the date first written above.

 

Lead Borrower: LOJACK CORPORATION By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer Borrowers: LOJACK CORPORATION By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer LOJACK INTERNATIONAL CORPORATION By  

/s/    Keith Farris

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

    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer LOJACK GLOBAL LLC By:   LOJACK CORPORATION, its sole Member     By  

/s/    Keith Farris

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        Duly Authorized     Print Name: Keith Farris     Title:            Chief
Financial Officer

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LOJACK OPERATING COMPANY, L.P. By:   LOJACK CORPORATION, its General Partner    
By  

/s/    Keith Farris

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        Duly Authorized     Print Name: Keith Farris     Title:            Chief
Financial Officer VEHICLE RECOVERY SYSTEMS COMPANY By  

/s/    Keith Farris

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    Duly Authorized Print Name: Keith Farris Title:            Chief Financial
Officer