Document:

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         Exhibit 10.10 Lease Agreement for CNB branch in Portland, Maine
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                                 LEASE AGREEMENT

                          CERTAIN TERMS AND DEFINITIONS

Tenant:                  Camden National Bank

Landlord:                Milk Street Associates, LLC

Lease:                   This Lease Agreement between Tenant and Landlord dated
                         as of July 24, 2001.

Building:                5 Milk Street and its walkways, parking lots, or
                         landscaped areas.

Premises:                East corner entry level, described on Exhibit A hereto.

Term:                    Five (5) years beginning on August 15, 2001 (the
                         "Commencement Date").

Base Rent:               Twenty-Seven Thousand Four Hundred Ninety-Six & 50/100
                         Dollars ($27,496.50) per year, payable in equal monthly
                         installments of Two Thousand Two Hundred Ninety-One &
                         38/100 Dollars ($2,291.38), to be increased annually as
                         provided herein.

Security Deposit:        None Required

Proportionate Share:     9.49%.

Monthly Charges:         The Base Rent payable on the first of each month during
                         the Term.

Rents:                   All payments by Tenant called for in the Lease,
                         including Monthly Charges and Tenant's Proportionate
                         Share of increases in Real Estate Taxes over Base Year
                         Real Estate Taxes.

                RENTS; SECURITY DEPOSIT; SURRENDER ON TERMINATION

1.1  Lease of Premises; Rent. Landlord hereby rents and Tenant hereby leases
     -----------------------
from Landlord the Premises for the Term and on the other terms and conditions
provided in this Lease. Tenant covenants and agrees to pay Monthly Charges to
Landlord in monthly installments, in advance without demand, notice, or setoff
on the first day of each month during the Term.

1.2  Annual Adjustments to Monthly Charges. Beginning on the first anniversary
     -------------------------------------
of the Commencement Date and on each succeeding anniversary thereafter, the
Monthly Charges then in effect shall be increased by the annual percentage
increase of the Boston CPI-W (or its successor index) between the two most
recent months of May preceding each such adjustment.

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1.3  Increases in Real Estate Taxes. Landlord shall pay to the municipality all
     ------------------------------
Real Estate Taxes with respect to the Building and the Premises during the Term.
`Real Estate Taxes' means the total of all taxes, general and special, ordinary
and extraordinary, foreseen or unforeseen, including water and sewer taxes,
assessments for public improvements and public services, that are assessed,
levied or imposed with respect to the Building, including personal property to
the extent that all elevators, air conditioning equipment, or similar building
appurtenances for the use and benefit of the occupants of the building are
classified as real estate for tax purposes. Tenant covenants and agrees to pay
or cause to be paid to Landlord, as additional Rents, Tenant's Proportionate
Share of the increase in Real Estate Taxes over Base Year Real Estate Taxes,
notwithstanding the reason for or the cause, nature or character of such
increases, with payment made by the later of (i) 15 days before such taxes are
due and payable or (ii) within 15 days after Landlord shall have delivered to
Tenant a statement setting forth Tenant's Proportionate Share of the increase in
Real Estate Taxes for any particular tax period or portion thereof. `Base Year
Real Estate Taxes' means $18,251.49 per one-half of a tax year.

1.4  Accounting for Rents Received; Late Payment Charge. All payments received
     --------------------------------------------------
from Tenant shall be applied to the oldest outstanding charges first. Landlord
may charge as a late payment charge three percent (3%) of any payment herein
required to be paid by Tenant which is more than five (5) days late.

1.5  Intentionally Deleted.
     ---------------------

1.6  Surrender on Lease Termination. On expiration of the Term or sooner
     ------------------------------
termination of the Lease, Tenant shall surrender the Premises to Landlord,
broomclean, free of subtenancies, and in good condition and repair, reasonable
wear and tear only excepted.

1.7  Intentionally Deleted.

                         TENANT'S RIGHTS AND OBLIGATIONS

     So long as Tenant pays the Rents reserved by this Lease and performs and
observes all the covenants and provisions hereof, Tenant shall quietly enjoy the
Premises without hindrance by or from Landlord. Tenant understands that Landlord
will be making improvements, alterations and repairs to the Building and
portions thereof from time to time.

2.1  Use. Tenant shall use the Premises only for a branch bank for Camden
     ---
National Bank. Tenant acknowledges its awareness that another tenant in the
Building is a direct competitor of Acadia Trust/Gouws Capital Management
(affiliates of Tenant hereinafter referred to as "Acadia"). Tenant acknowledges
that neither Tenant's exterior signage nor any window signage at the Building
may include reference to Acadia. Tenant may provide marketing materials
related to Acadia to customers of Camden National Bank and its affiliates at the
Premises and may conduct incidental Acadia business with such customers at the
Premises as a convenience to such customers, but Tenant may not hold out the
Premises to the public as an Acadia office.

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2.2  Compliance with laws. Tenant shall comply with any law, ordinance and
     --------------------
regulation, federal, state, county or municipal, now or hereafter in force,
applicable to the Building or Premises relating to use or occupancy thereof.
Tenant shall secure all necessary licenses and permits for the conduct of
Tenant's business at its own expense.

2.3  Payment of personal property taxes. Tenant shall pay all personal property
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taxes, including inventory taxes, levied or assessed relating to the personal
property and trade fixtures on the Premises belonging to Tenant or persons,
firms or corporations other than Landlord.

2.4  No waste. Throughout the Term, Tenant shall keep the Premises, and the
     --------
appliances, improvements and fixtures therein, including but not limited to all
glass, lighting fixtures and lamping, in good order and repair and in clean,
safe, and sanitary conditions, reasonable wear and tear only excepted, subject
to damage by fire, taking and insured casualty. All injury or damage to the
Building or the Premises caused by Tenant or its agents, employees and invitees
shall be repaired or replaced with materials of the same quality.

2.5  No Assignment or Subletting. Tenant shall not sublet, pledge, encumber or
     ---------------------------
assign this Lease without the prior written consent of Landlord on each
occasion, which consent shall not be unreasonably withheld or delayed; any
sublet, pledge, encumbrance or assignment without Landlord's consent shall be
null and void. For a period of thirty days following receipt by Landlord of a
request for the written consent to a subletting or assignment, Landlord shall
have the right, exercisable by sending written notice to Tenant, to sublet or
assign the same area to another at the lesser of the Base Rent stated in this
Lease or the rate proposed in Tenant's sublet; upon Landlord's exercise of such
right, Tenant shall be relieved of further liability arising under the Lease
after the commencement date of the substitute tenant's term. In the event
Landlord waives its right or lets thirty days pass, Tenant may sublet or assign
such space upon the prior written consent of Landlord.

     Landlord's consent shall be deemed reasonably withheld if, without
limitation, (i) the proposed assignment, sublease or other transfer would be for
the conduct of a business which is not in keeping with the quality standards for
tenants of the Building, or (ii) Tenant's proposed assignee, sublessee or other
transferee is not, in Landlord's reasonable judgment, financially creditworthy,
or (iii) Tenant is in default under this Lease, or (iv) Tenant's proposed
assignee, sublessee or other transferee has failed or refused to agree to
perform and observe all the terms, provisions, conditions and covenants of this
Lease, or (v) Tenant's proposed assignee, sublessee or other transferee would
burden the common areas and facilities to a greater extent than does Tenant or
would require more or additional services, or ( vi) use by the proposed
assignee, sublessee or other transferee would require structural changes to the
Building or the Premises, or (vii) Tenant's proposed assignee, sublessee or
other transferee is a governmental agency.

2.6  Restrictions.  Tenant covenants and agrees as follows, not to:
     ------------

     (i)    Injure or deface the Premises or Building.

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         (ii)   Place a load upon any floor of the Premises in excess of 50
pounds live load per square foot or in violation of what is allowed by law.

         (iii)  Move heavy equipment, freight or heavy fixtures in or out of the
Building except at such times and in such manner as Landlord shall designate
after written request from Tenant.

         (iv)   Serve food or drink to the public, permit loud or live music to
be played in or about the Premises, or permit loud noises, offensive odors, or
excessive vibrations that unreasonably interfere with the quiet and peaceful use
and possession of the Building by other tenants, without the written consent of
Landlord, which consent may be withheld for any reason. Tenant shall place and
maintain business machines and mechanical equipment in such settings as will
most effectively reduce noise and vibration.

         (v)    Permit any person or firm not directly affiliated with Tenant to
maintain a business location or a mailing address in, on or about the Premises.

         (vi)   Permit the use of the Premises for any purpose other than set
forth herein or put them to a use that may invalidate or increase the premiums
for any insurance on the Building, its contents or other tenants, or which may
require any alterations to the Building. Without waiving Tenant's obligation
herein, if as the result of Tenant's conduct of its business Landlord or another
tenant of the Building suffers an increase in the cost of such insurance
premiums, Tenant shall immediately pay to the party suffering such increase the
amount of such increase; but in no event shall such payment abrogate or waive
Tenant's obligations under this subsection.

         (vii)  Permit any pets on or about the Premises without the prior
written consent of Landlord, which consent may be withheld for any reason.

         (viii) Receive, handle, use, store, treat, ship or dispose on, at,
under or about the Premises or release therefrom any Hazardous Substance and
shall defend and save Landlord harmless from any and all losses, claims,
liabilities, judgments, damages (including exemplary or punitive), penalties,
expenditures, costs and legal or other expenses which Landlord may suffer or
incur as a direct or indirect result of Tenant's breach of this covenant.
"Hazardous Substance" for purposes of the Lease shall mean any material, the
generation, storage, handling or disposal of which is regulated by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
U.S.C. Section 9601 et seq. or by the Maine Uncontrolled Hazardous Substance
Sites Act, 38 M.R.S.A. Section 1361 et seq., as either may be amended or
extended from time to time.

                        LANDLORD'S RIGHTS AND OBLIGATIONS

3.1      Finishes.  Landlord shall finish the Premises in accordance with the
         --------
provisions set forth under "Tenant Improvements" in Exhibit B attached hereto
and made a part hereof. Tenant acknowledges that Tenant has inspected the
Building and Premises, found them to be in satisfactory condition and repair and
agrees to accept the Premises in "as-is" condition, except for the obligations
which Landlord has agreed to undertake as set forth in Exhibit B. If the
Premises are not substantially complete at the commencement of the Term through
no fault of Tenant, Rents shall be abated until Landlord has substantially
completed its work as set forth in Exhibit B.

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3.2   Services. So long as Tenant is not in default under any of the provisions
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of this Lease, Landlord shall furnish the following services:

MSA   Heat and air conditioning to maintain the Premises at comfortable
temperatures, except as otherwise required by law, executive order, rule or
other regulation, during the regular business hours of the business day.

      Cold water in Premises bathroom for ordinary lavatory and toilet
facilities (hot water to be provided by hot water heater at the Premises wired
to Tenant's CMP meter).

      Cleaning and maintenance services for the exterior area of the Building
and the common areas equal in scope, quality, and frequency to that provided in
office and retail buildings in the City of Portland.

      Snow removal from sidewalks, parking lots, loading areas and access areas
between parking lots and the Premises.

      Maintenance and repair of the roof, exterior walls, land areas, structure,
heating, air conditioning and plumbing systems, primary electrical system
(excluding electrical outlets and other electrical equipment installed by
Tenant) and common areas and common facilities of the Building as necessary to
maintain them in good order and condition; provided, however, that any such
maintenance or repairs made necessary by the fault or neglect of Tenant or the
employees, agents and invitees of Tenant shall be at the expense of Tenant, and
any such maintenance or repairs of any equipment installed by or at the
direction of Tenant or its employees or agents shall be at the expense of
Tenant.

      Landlord shall not be liable to anyone for incidental or consequential
damages for failure or interruption of the services described in the Lease due
to accident, making repairs, alterations or improvements, labor difficulties,
inability to obtain fuel, electricity, service or supplies from sources from
which they are usually obtained for the Building, or any cause beyond the
reasonable control of Landlord. No such failure or interruption shall be
construed as an eviction of Tenant, nor work an abatement of any of the Rents,
nor relieve Tenant from Tenant's obligations under this Lease.

3.3   Rights.  Landlord reserves the right to:
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      (i)   install and maintain a sign or signs on the exterior of the
Building. All Tenant signage will be subject to the reasonable approval of
Landlord; (also see Section 2.1).

      (ii)  name the Building and to change the name or street address of the
Building after reasonable notice to Tenant.

      (iii) restrict and control in a reasonable  manner all sources from which
Tenant may obtain maintenance services for the Premises and any service in or to
the Building and its tenants.

      (iv)  if Tenant has already vacated the Premises, decorate, remodel,
repair, alter or otherwise prepare the Premises for reoccupancy during the last
ninety (90) days of the Term, without affecting Tenant's obligation to pay
Rents.

      (v)   Landlord shall not retain keys to the Premises; Tenant agrees to pay
immediately the cost to repair damage caused by forced entry to the Premises by
Landlord or its agents in the event that Landlord reasonably believes an
emergency condition exists at the Premises and Landlord is unable to gain access
to the Premises through Tenant within

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what Landlord deems a reasonable period at the time of the real or perceived
emergency. Tenant shall not modify any locks to the Premises, other than
rekeying, without the prior consent of Landlord.

      (vi)  enter the Premises at reasonable times (1) to examine, inspect and
maintain the Building, install equipment and make improvements, (2) in so doing,
to temporarily suspend operation of entrances, corridors, elevators and other
facilities, but in such a manner as to cause the least inconvenience
practicable, and (3) to show the Premises to prospective purchasers and
mortgagees, and to show the Premises to prospective tenants during the three
months preceding the expiration of this Lease. Landlord may enter upon the
Premises and exercise any and all of Landlord's rights without being deemed
guilty of an eviction or disturbance of Tenant's use or possession and without
being liable in any manner to Tenant.

      (vii) promulgate from time to time and enforce reasonable rules and
regulations for the use and the occupancy of the Building by the tenants, and
Tenant agrees to comply with such rules and regulations.

                    ALTERATIONS; EQUIPMENT; PERSONAL PROPERTY

4.1   Alterations. Tenant shall not make any alterations or additions, including
      -----------
but not limited to wall coverings, floor coverings and special light
installations, or permit the making of any holes in any part of the Building, or
paint or place any signs, curtains, shades, awnings, aerials or flagpoles or the
like which are visible from outside of the Premises, without on each occasion
obtaining prior written consent of Landlord.

      Tenant shall procure all necessary permits before undertaking any
improvements, do all of such work in a good and workmanlike manner, employing
material of good quality, comply with all governmental requirements, and
promptly pay when due the entire cost of any work performed on its behalf.
Tenant shall not permit any mechanics' or other liens to be placed on the
Premises. Tenant covenants and agrees to indemnify and hold harmless Landlord
for any and all charges, expenses, claims and liens of any nature (including
payment of reasonable attorney's fees to enforce this provision) and any and all
liability arising out of or in connection with any improvements, changes, or
additions made by or on behalf of Tenant, or any lien arising thereby.

      Any alteration, addition or improvement made by Tenant and any fixtures
installed as a part thereof, except movable trade fixtures, shall at Landlord's
option become the property of Landlord upon the expiration or other sooner
termination of this Lease; provided, however, that Landlord shall have the right
to require Tenant to remove such fixtures at Tenant's expense.

      Landlord is aware of Tenant's interest in installing a night deposit box
at the Premises and agrees to work with Tenant to try to find a suitable
installation for such night deposit, consistent with the design, construction,
use, appearance and historic nature of the building.

4.2   Equipment and Movable Trade Fixtures. Tenant may install equipment and
      ------------------------------------
movable trade fixtures necessary to carry on its business on the Premises. All
such equipment and movable trade fixtures shall remain the personal property of
Tenant, and shall be removed by Tenant at any time before the end of the Term,
and Tenant shall promptly repair at its own expense any damage to the Premises
by reason of such removal. Landlord may require reasonable security from

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Tenant before commencement of any such removal. Unless Tenant and Landlord have
otherwise previously agreed, any personal property of Tenant left in the
Premises after the Lease term shall be deemed abandoned, and Landlord may have
such personal property removed and disposed of in Tenant's name and at Tenant's
expense.

                  INSURANCE; INDEMNIFICATION; CASUALTY; DAMAGE

5.1   Insurance. Throughout the Term, Tenant shall maintain for the mutual
      ---------
benefit of Landlord and Tenant comprehensive general liability insurance (with
broadened liability endorsement) with a combined limit of not less than
$1,000,000 and shall keep the contents of the Premises insured against loss or
damage by fire and any of the casualties included in All Risk insurance coverage
in an amount not less than the full insurable value thereof. All insurance
policies shall be placed with recognized insurers qualified to do business in
the State of Maine, shall name Tenant, Landlord and Landlord's managing agent,
if any, as insureds as their respective interests may appear, shall contain such
language as appropriate to avoid the effect of the co-insurance provisions of
such policies, and shall contain an agreement by the insurers that such policies
shall not be cancelled without at least ten (10) days prior written notice to
Landlord. Landlord shall be provided with copies of all policies.

5.2   Release. Landlord and Tenant each hereby release each other from liability
      -------
for damage to property of the other to the extent of insurance required to be
maintained hereunder occurring at the Premises or the Building, or in any manner
growing out of or connected with Tenant's or Landlord's use and occupation of
the Premises and Building, or the condition thereof, whether or not caused by
the negligence or other fault of Landlord or Tenant or of their respective
agents, employees, subtenants, licensees, or assignees.

5.3   Indemnification. Tenant covenants and agrees forever to save and hold
      ---------------
Landlord and its managing agent harmless from and against all claims for damage
to or loss of property, and all claims for injuries to or death of persons, in
or about the Premises caused by the negligence, or willful act or omission of
Tenant, or its agents, employees, invitees or guests, and/or resulting from
Tenant's failure to observe or comply with any of Tenant's obligations
undertaken in this Lease; including without limitation all costs of defending
against such claims and in enforcing this indemnity provision,
including reasonable attorneys' fees for such purposes. The minimum insurance
limits above shall not be deemed to limit or restrict in any way Tenant's
liability ensuing under or out of this Lease.

5.4   Casualty. If the Premises or the Building or any part of either shall be
      --------
damaged by fire or other casualty, rendering either untenantable in whole or in
part, then this Lease shall terminate at the election of Landlord. If Landlord
shall elect not to terminate this Lease then Landlord shall cause the Premises
or the Building to be put in proper condition for use and occupation and during
such period the Rents shall be reduced in proportion to the extent the Premises
are rendered untenantable; provided, however, that Landlord's obligation to put
the Premises or the Building in proper condition for use and occupation shall be
limited to the amount of net proceeds from any insurance policy or policies.

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Notwithstanding the above, if Landlord shall not have returned the Premises to
substantially the same condition as prior to the casualty within 120 days of the
casualty, then Tenant shall have the right to terminate the Lease on 7 days
advance notice to Landlord, unless the Premises shall be returned to
substantially the same condition as prior to the casualty within such 7 day
period.

5.5   Condemnation. If the Premises or the Building or any part of either shall
      ------------
be taken by the exercise of the right of eminent domain then this Lease shall
terminate at the election of Landlord. If Landlord shall elect not to terminate
this Lease and a substantial portion of the Premises is taken, Tenant may elect
to terminate this Lease upon thirty (30) days written notice to Landlord. If
neither party terminates, Landlord shall put the Premises or Building in proper
condition for use and occupation and during such period the Rents shall be
reduced in proportion to the extent the Premises are rendered untenantable;
provided, however that Landlord's obligation to put the Premises or Building in
proper condition for use and occupation shall be limited to the amount of net
proceeds from the receipts of the condemnation.

      Landlord hereby reserves and Tenant hereby assigns to Landlord, all rights
to recovery for damages to the Premises or the Building and the leasehold
interest hereby created, and to compensation accrued or hereafter to accrue by
reason of any taking or condemnation. Nothing contained herein shall be deemed
or construed to prevent Tenant from prosecuting in any condemnation proceedings
a claim for relocation expenses, provided that such action shall not affect the
amount of compensation otherwise recoverable by Landlord from the taking
authority. If Landlord shall not have returned the Premises to substantially the
same condition as prior to the condemnation within 120 days of the effective
date of the condemnation, then Tenant shall have the right to terminate the
Lease on 7 days advance notice to Landlord, unless the Premises shall be
returned to substantially the same condition as prior to the effective date of
the condemnation within such 7 day period.

5.6   Liability For Damage to Personal Property and Person. All personal
      ----------------------------------------------------
property of Tenant, its employees, agents and invitees in the Premises or
Building shall be and remain at their sole risk. Landlord shall not be liable
for any damage to or loss of such personal property arising from any willful or
negligent act or omission of any person, or from any cause other than any damage
or loss resulting directly from the negligence of Landlord. Landlord shall not
be liable for any interruption or loss to Tenant's business, and shall not be
liable for any personal injury to Tenant, its employees, agents, or invitees,
arising from the use, occupancy and condition of the Premises or Building other
than from the willful or negligent act of Landlord. Notwithstanding the
foregoing, Landlord shall not be liable to Tenant for any loss or damage to
personal property, or injury to person, whether or not the result of Landlord's
negligence, to the extent that Tenant is compensated therefor by Tenant's
insurance.

                              DEFAULT AND REMEDIES

6.1   Tenant's Default. It shall be an event of default if:
      ----------------

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     (i)   Tenant shall fail to pay any installment of any Rents within five (5)
calendar days after written demand, provided that no such demand shall be
required if at least two such demands have been given within one calendar year
of the due date of the most recent unpaid installment of Rents,

     (ii)  Tenant shall default in the faithful observance or performance of any
other covenant to be performed or observed by Tenant under this Lease for ten
(10) or more calendar days after Landlord shall give to Tenant notice of such
default and a demand to cure the same,

     (iii) the Premises shall be abandoned or vacated by Tenant, or the estate
hereby created shall be taken by process of law, or

     (iv)  there shall be filed by or against Tenant a petition under any
Chapter or Chapters of the Bankruptcy Code of the United States or any other
insolvency proceeding relating to the debts of Tenant shall be brought by or
against Tenant, or Tenant shall make an assignment for the benefit of creditors,
or shall be insolvent or unable to pay its debts as they mature or a receiver
shall be appointed for Tenant or any substantial part of its property.

6.2  Remedies.  Upon Tenant's default, Landlord may:
     --------

     (1)  terminate the Lease by written notice to Tenant;

     (2)  re-enter and repossess any or all of the Premises;

     (3)  declare the entire balance of the Rents for the remainder of the
Term to be due and payable immediately, and collect such balance in any lawful
manner (accelerated payments hereunder shall constitute payment of Rents in
advance and not a penalty or forfeiture or liquidated damages);

     (4)  relet all or a portion of the Premises for all or a portion of the
Term either in Landlord's own name or as agent for Tenant and collect and
receive the rents therefor;

     (5)  collect Rents directly from any subtenant or assignee; or

     (6)  pursue any combination of such remedies and/or any other right or
remedy available to Landlord on account of such event of default under this
Lease or at law or in equity.

     In the event of reletting, Tenant shall have no right to any surplus which
may be derived by Landlord from any such reletting. Tenant hereby grants
Landlord the right, after Tenant's default, to relet on such terms and
conditions as are acceptable to Landlord in its sole and absolute discretion
(including offering concessions or incentives such as free rent or tenant
fit-up), and Tenant acknowledges that its obligation under the Lease shall not
be diminished by any concessions or incentives in the form of free rent or
otherwise either offered or refused to be offered by Landlord. Anything in this
Lease or applicable law to the contrary notwithstanding, upon Tenant's default
Landlord shall not have any duty or obligation to relet any or all of the
Premises in lieu of other vacant space in Landlord's inventory, or any liability
to Tenant or any other person for any failure to Lease the Premises or to
collect any rent or other sum due from any such reletting. Landlord acknowledges
its obligation to mitigate damages in its reletting activities. In the event
that Rents have not been accelerated pursuant to (3) immediately above, upon
reletting Tenant shall pay to Landlord (i) the installments of Rents accruing
during the remaining Term, had this Lease not been terminated, less any monies
received by Landlord with respect to such remainder from such reletting of any
or all of the Premises, (ii) the cost to Landlord of any such reletting

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(including, without limitation, any attorneys' fees, leasing or brokerage
commissions, repair or improvement expenses and any other expenses in connection
with such reletting), and (iii) any other sums for which the Tenant is liable
under the Lease.

     Nothing herein contained shall limit or prejudice Landlord's right to prove
for and obtain as damages, by reason of such termination, an amount equal to the
maximum allowed by law.

     On the occurrence of an event of default, Tenant shall, immediately on its
receipt of a written demand therefor from Landlord, reimburse Landlord for (a)
all expenses (including, without limitation, any and all repossession costs,
management expenses, operating expenses, legal expenses and attorneys' fees)
incurred by Landlord (i) in curing or seeking to cure any event of default
and/or (ii) in exercising or seeking to exercise any of the Landlord's rights
and remedies under the provisions of this Lease or in law or equity on account
of any event of default, and/or (iii) otherwise arising out of any event of
default, plus (b) interest on all such expenses at New York base rate plus 3%,
all of which expenses and interest shall be additional Rents and shall be
payable by the Tenant immediately on demand therefor by the Landlord.

     Tenant hereby expressly waives, so far as permitted by law, the service of
any notice of intention to re-enter provided for in any statute, and except as
is herein otherwise provided, Tenant, for itself and all persons claiming
through or under Tenant (including any leasehold mortgagee or other creditors),
also waives any and all right of redemption or re-entry or repossession in case
Tenant is dispossessed by a judgment or warrant of any court or judge or in case
of re-entry or repossession by Landlord or in case of any expiration or
termination of this Lease. The terms "enter," "re-enter," "entry," or "re-entry"
as used in this Lease are not restricted to their technical legal meanings.

6.3  Landlord's Right to Cure. If Tenant defaults in making any payment or in
     ------------------------
doing any act required by this Lease, Landlord may, but shall not be required to
make such payment or do such act, and the amount of the expense thereof, with
interest thereon at the annual rate of fifteen percent (15%) from the date paid
by Landlord, shall be payable with the next monthly installment of Rents.
Landlord's payment in such case shall not be deemed to cure the default.

                             MORTGAGE LENDER ISSUES

7.1  Subordination; Attornment. Landlord may at any time assign, encumber,
     -------------------------
pledge or hypothecate this Lease, which shall be subject and subordinate at all
times to the lien of existing mortgages and of mortgages which hereafter may be
made a lien on the Building or the Premises, provided that the holder of such
mortgage enters into an agreement with Tenant by the terms of which such holder
agrees not to disturb Tenant in its possession of the Premises so long as Tenant
continues to perform its obligations hereunder and, in the event of acquisition
of title by said holder through foreclosure proceedings or otherwise, to accept
Tenant as Tenant of the Premises under the terms and conditions of this Lease.
Although no instrument or act on the part of Tenant shall be necessary to
effectuate such subordination, Tenant will, nevertheless, promptly execute and
deliver such further instruments subordinating this Lease and Tenant's interests
herein to the lien of any such mortgages as may be desired by the mortgagee
(consistent with such mortgage holders non-

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<PAGE>

disturbance obligation to Tenant). If required by the mortgagee, Tenant shall
agree not to prepay rent more than ten (10) days in advance, to provide said
mortgagee with notice of and reasonable opportunity to cure any defaults by
Landlord, and not to amend, modify or cancel this Lease without mortgagee's
written consent, and Tenant agrees to recognize such holder or any other person
acquiring title to the Premises as having the rights of Landlord and to attorn
to said holder or other person if requested.

7.2  Estoppel Certificates. Tenant and Landlord agree, at any time and from time
     ---------------------
to time, upon at least five (5) days prior written notice, to execute,
acknowledge and deliver to Landlord or its mortgagee or to Tenant, as the case
may be, a statement in writing (i) certifying that this Lease has been
unmodified since its execution and is in full force and effect (or if there have
been modifications, that this Lease is in full force and effect, as modified,
and stating the modifications), (ii) stating the dates, if any, to which the
Rents hereunder have been paid by Tenant, (iii) stating whether or not, to the
knowledge of Tenant or Landlord, there are then existing any defaults under this
Lease (and, if so, specifying the same), and (iv) stating the address to which
notices to Tenant or Landlord should be sent. Any such statement delivered
pursuant hereto may be relied upon by Tenant, Landlord or any prospective
purchaser or mortgagee of the Building or any part thereof or estate therein.

7.3  Assignment of Rents. With reference to any assignment by Landlord of
     -------------------
Landlord's interest in this Lease, or the Rents payable hereunder, conditional
in nature or otherwise, which assignment is made to the holder of a mortgage of
the Premises, Tenant agrees: (i) that the execution thereof by Landlord, and the
acceptance thereof by such holder, shall never be deemed an assumption by such
holder of any of the obligations of Landlord hereunder, unless such holder
shall, by written notice sent to Tenant, specifically otherwise elect; and (ii)
that, except as aforesaid, such holder shall be treated as having assumed
Landlord's obligations hereunder only upon foreclosure of such holder's mortgage
or the taking of possession of the Premises.

                             LIMITATION ON LIABILITY

8.1  Notwithstanding any other provisions of this Lease, Tenant agrees to look
solely to Landlord's interest in the Building and any applicable insurance
coverage of Landlord for recovery of any judgment from Landlord; it being agreed
that Landlord is not personally liable for, and its other assets are not subject
to, any such judgment. The provision contained in the foregoing sentence shall
not limit any right that Tenant might otherwise have to obtain injunctive relief
against Landlord or its successors, or any other action not involving the
personal liability of Landlord.

                            MISCELLANEOUS PROVISIONS

9.1  Joint Liability. If Tenant is more than one person or party, Tenant's
     ---------------
obligations shall be joint and several. Unless repugnant to the context,
"Landlord" and "Tenant" mean the person or persons, natural or corporate, named
above as Landlord and Tenant respectively, and their respective heirs,
executors, administrators, successors and assigns.

                                       11

<PAGE>

9.2  Non-Liability of Landlord's Agent. Tenant agrees that Landlord's property
     ---------------------------------
manager (currently Fore River Management Company) is serving solely as
Landlord's agent and shall not in any event be liable to Tenant for the
fulfillment or non-fulfillment of any of the terms or conditions of this Lease
or for any actions or proceedings that may be taken by Landlord against Tenant
or by Tenant against Landlord.

9.3  Memorandum of Lease. Landlord and Tenant agree that this Lease shall not be
     -------------------
recordable. If Tenant desires, Landlord and Tenant shall enter into a Memorandum
of Lease in recordable form, setting forth such terms as are necessary under the
laws of Maine providing for the recording of memoranda of leases.

9.4  Holdover. (a) Any holdover by Tenant beyond the end of the Term provided
     --------
for elsewhere in the Lease shall be automatically deemed to be a renewal
election made by Tenant and accepted by Landlord for a renewal term (and not a
tenancy at will) of one month, unless Landlord shall have previously notified
Tenant that the Lease shall terminate at the end of the Term otherwise specified
under the Lease, in which case the Lease shall so terminate. During any renewal
pursuant to this section, Rents shall be increased on the Commencement Date
anniversary by the most recently reported year to year changes in the Boston
CPI-W as provided in the Lease, and other terms and conditions of the Lease
shall apply.

     Upon the commencement of any one month renewal term pursuant to this
subsection, Landlord and Tenant shall be deemed to have agreed to additional
consecutive one month renewal terms until either party shall terminate the Lease
on a minimum of 30 and a maximum of 60 days advance notice given at any time to
the other party, (which termination date need not be at the end of a one month
renewal term).

     (b)   Unauthorized Holdover. In the event that Tenant (or any subtenant or
           ---------------------
other person occupying all or part of the Premises) fails to quit the Premises
immediately upon the effective date of termination of the Lease, Tenant hereby
covenants to save and hold Landlord harmless against all direct or consequential
damages, costs or losses suffered by Landlord arising out of such failure to
quit, including without limitation, all costs associated with Landlord's
regaining of possession of the Premises, all costs, liability or loss of rents
arising out of Landlord's inability or delay in commencing renovations or
delivering the Premises to a new tenant, and Landlord's reasonable attorney's
fees arising out of such failure to quit or in enforcing this indemnity
provision.

9.5  Invalidity. If any provision of this Lease or its application to any person
     ----------
or circumstances shall to any extent be invalid or unenforceable, the remainder
of this Lease or the application of such provision to persons or circumstances
other than those as to which it is invalid or unenforceable, shall not be
affected thereby and each provision of this Lease shall be valid and enforceable
to the fullest extent permitted by law.

9.6  No Waivers. No acceptance by Landlord of a lesser sum than of the Rents
     ----------
then due shall be deemed to be other than on account of the earliest installment
of such Rents due, nor shall any endorsement or statement on any check or any
letters accompanying any check or payment as Rents be deemed an accord and
satisfaction, and Landlord may accept such

                                       12

<PAGE>

check or payment without prejudice to Landlord's right to recover the balance of
such installment or pursue any other remedy provided in this Lease.

        No failure to act by either party shall be deemed to be a waiver by said
party of any of its rights hereunder, and no waiver or consent by either party
shall be deemed a waiver of such provision or of a subsequent breach or consent
to the same or any other provision. Any and all rights and remedies which either
party may have at law or in equity upon any breach shall be distinct, cumulative
and shall not be deemed inconsistent with each other; and no one of them,
whether exercised by a party or not, shall be deemed to be in exclusion of any
other; and any two or more or all of such rights and remedies may be exercised
at the same time.

9.7     Entire Agreement. No oral statement or prior written matter shall have
        ----------------
any force or effect. Tenant agrees that it is not relying on any representations
or agreements other than those contained in this Lease. This Lease shall not be
modified or cancelled except by writing subscribed by all parties. Landlord and
Tenant agree that the provisions of Rider(s) 1 & 2 attached hereto are
incorporated herein and form a part hereof.

9.8     Governing Law; Waiver of Jury Trial. This Lease and the performance
        -----------------------------------
thereof shall be governed, interpreted, construed and regulated by the laws of
the State of Maine. Landlord and Tenant have mutually agreed that they have
waived trial by jury in any proceeding brought by either party against the other
arising out of this Lease.

9.9     Headings.  Headings and sub-headings are for convenience only, and shall
        --------
not be considered a part of this Lease.

9.10    Notices. All notices and other communications authorized or required
        -------
hereunder shall be in writing and shall be given by mailing the same by
overnight mail, by facsimile transmission, by hand delivery, by certified mail
or registered mail, return receipt requested, postage prepaid, or by facsimile
transmission, with a copy by certified or registered mail, return receipt
requested. Any such notice or communication shall be effective, in the case of
overnight mail, one business day after said notice is deposited with the
overnight carrier, in the case of facsimile transmission, upon completion of
transmission, in the case of hand delivery, upon acceptance at the office of
Landlord or Tenant, in the case of mailing, three calendar days after said
notice is deposited in the United States mail as aforesaid. If intended for
Landlord, the same shall be mailed to Landlord at:

                           Milk Street Associates, LLC
                                  5 Milk Street
                                  P.O. Box 7525
                              Portland, Maine 04112
                              Fax # (207) 772-9078

or at such other address as Landlord may hereafter designate by notice to
Tenant. If intended for Tenant, the same shall be mailed to Tenant at:

                                       13

<PAGE>
                              Camden National Bank
                                  2 Elm Street
                                   PO Box 310
                                Camden, ME 04843
                              Attn: Danny Swindler
                              Fax # (207) 236-____

or at such other address or addresses as Tenant may hereafter designate by
notice to Landlord.

     IN WITNESS WHEREOF, the said Landlord has executed this Lease in its name
and sealed with its seal by Fore River Company, its Manager Member hereunto duly
authorized by __________, its __________ the said Tenant has executed this Lease
in its name and sealed with its seal all on the day and year first above
written.

SIGNED, SEALED and DELIVERED
In the Presence of:                      MILK STREET ASSOCIATES, LLC
                                         Fore River Company, its Manager Member

_____________________________________    By:____________________________________

                                         Its:

                                         Camden National Bank

_____________________________________    By:____________________________________

                                         Its:

                                       14

<PAGE>

Rider 1 to the Lease dated July 24, 2001 between Milk Street Associates, LLC, as
Landlord, and Camden National Bank, as Tenant (the "Lease").

Renewal
-------

In consideration of the covenants of the Tenant herein contained, Landlord
hereby grants to Tenant (but not to any assignee or sublessee of Tenant) the
irrevocable right and option to renew and extend the Lease and term for two
renewal terms of 24 months, said renewal terms to commence upon the expiration
of the initial term of the Lease, but said right and option shall be exercisable
only if Tenant is not in default on the Lease at the time of exercise. Tenant
may exercise the right and option to renew only by notice to Landlord in writing
delivered to Landlord at least 90 days before the commencement date of said
renewal terms. The Base Rent reserved for the said renewal terms shall be the
Base Rent in effect for the last month of the original term of the Lease,
adjusted during the renewal terms as provided in the Lease, treating the
commencement date of the renewal period as an anniversary of the Commencement
Date for such purposes. In addition, Tenant shall pay Tenant's Proportionate
Share of increases in Real Estate Taxes over Base Year Real Estate Taxes. Rents
shall be payable in consecutive monthly installments in advance, on the first
day of each and every month of the renewal terms. Said renewal terms shall be
subject to the same terms and conditions as the initial term. Terms not defined
in this rider shall have the meaning set forth in the Lease.

Witness:                                   Milk Street Associates, LLC
                                           Landlord

__________________________________         By __________________________________

                                           Its:

                                           Camden National Bank
                                           Tenant

__________________________________         By __________________________________

                                           Its:

<PAGE>

Rider 2 to the Lease dated July 24, 2001 between Milk Street Associates, LLC, as
Landlord, and Camden National Bank, as Tenant (the "Lease").

Right of First Offer
--------------------

Upon the first availability for lease of the adjacent ground floor premises at
the corner of Milk and Silver Streets during the Term of Tenant's Lease
(including any renewal thereof), Landlord shall notify Tenant (but not any
sublessee or assignee of Tenant) that the space is available, the Base Rent at
which it will be offered for lease, and the term of the lease, including any
options.

Tenant will have a period of two weeks after notice from us to accept or reject
the proposed lease; in the event Tenant accepts, a lease substantially in the
form of the lease originally signed, with the rate and term specified in
Landlord's notice to Tenant must be signed within that two week period. If
Tenant rejects an offer to lease the space or fails to sign a lease within such
period, Tenant will have no further rights of offer with respect to that space,
except as provided below.

If at the time of Tenant's rejection, Tenant notifies Landlord that Tenant would
enter into the offered lease but for the Base Rent proposed by Landlord, and
Tenant specifies a Base Rent at which Tenant would lease the space, Landlord
will be further obligated to re-offer the space to Tenant before offering the
space to another prospective tenant at or below the rate specified by Tenant.
Upon such subsequent offer, Tenant would have an additional week to accept this
subsequent offer and sign a lease or reject it.

Tenant's right of first offer will be subordinate to the right of the existing
tenant to extend the term of its lease. Landlord will have no obligation to make
an offer to Tenant in the event Tenant is in default at the time the offer would
otherwise be required to be made.

Witness:                                   Milk Street Associates, LLC
                                           Landlord

__________________________________         By __________________________________

                                           Its:

                                           Camden National Bank
                                           Tenant

__________________________________         By __________________________________

                                           Its:<PAGE>

                                  Exhibit 10mm.

                       SEVENTH AMENDMENT TO LOAN AGREEMENT

         THIS AMENDMENT TO LOAN AGREEMENT (the "Amendment") is made as of
                                                ---------
February 19, 2002 by and among LOJACK CORPORATION, a Massachusetts corporation
(the "Parent"), and its wholly-owned subsidiaries, LOJACK INTERNATIONAL
      ------
CORPORATION, a Delaware corporation, formerly known as LoJack Midwest
Corporation (and the successor by merger to CarSearch Corporation), which was
formerly a party to the Loan Agreement referred to below), LOJACK OF NEW JERSEY
CORPORATION, a Delaware corporation, RECOVERY SYSTEMS, INC., a Florida
corporation, LOJACK HOLDINGS CORPORATION, a Massachusetts corporation; LOJACK
VENTURE CORPORATION, a Massachusetts corporation; LOJACK OF PENNSYLVANIA, INC.,
a Delaware corporation; LOJACK FSC, LTD., a corporation organized under the laws
of Barbados; LOJACK RECOVERY SYSTEMS BUSINESS TRUST, a Massachusetts business
trust and LOJACK OF ARIZONA, LLC, a Delaware limited liability company
(collectively, the "Original Borrowers"); by execution of the Joinder attached
                    ------------------
hereto, VEHICLE RECOVERY SYSTEMS COMPANY, a corporation organized under the laws
of the Province of Nova Scotia ("Vehicle Recovery Systems Company") (the
                                 --------------------------------
Original Borrowers and Vehicle Recovery Systems Company are referred to as the
"Borrowers"); and FLEET NATIONAL BANK (f/k/a BankBoston, N.A. and successor in
 ---------
interest to The First National Bank of Boston)(the "Lender").
                                                    ------

                                    RECITALS
                                    --------
         A.    The Lender and the Original Borrowers are parties to a Loan
Agreement dated as of December 10, 1993, as amended (as so amended, the "Loan
                                                                         ----
Agreement"). Capitalized terms used herein without definition have the meanings
---------
assigned to them in the Loan Agreement;

         B.    Since the execution of the Loan Agreement, (1) the Parent has

formed a new subsidiary, Vehicle Recovery Systems Company, in August, 2001
without obtaining the prior written consent of the Lender, as required in the
Loan Agreement; (2) the Parent has purchased in December, 2001 a 7.9%
[erroneously 9% in original] equity interest in its French licensee, Traqueur,
S.A., for a total purchase price of no greater than $1,367,000 (the "French
                                                                    -------
Investment") and (3) the Parent has established or will shortly establish a
-----------
secured line of credit to a maximum limit of $2,300,000 with Car Security S.A.
maturing August 31, 2004 as set forth on and substantially according to the
terms of that certain Summary of Proposed Terms dated January 18, 2002 between
the Parent and Car Security S.A. in the form of attached hereto as Exhibit A
                                                                   ---------
(the "Argentine Loan");
      --------------
         C.    The Borrowers have failed to comply with Section 5.5 of the Loan
Agreement for the fiscal quarter ending November 30, 2001 because they have
indicated that their consolidated after-tax profit for such quarter was
$155,000, which is less than the required minimum of $500,000;

         D.    Effective as of December 31, 2001, the Borrowers have failed to
comply with Section 6.6 of the Loan Agreement because they changed their
respective fiscal year-ends to December 31 from February 28.

<PAGE>

         E.    The Original Borrowers wish to (i) amend the Loan Agreement to
add Vehicle Recovery Systems Company as "Borrower" thereunder, (ii) have the
Lender waive any Events of Default caused by the organization of Vehicle
Recovery Systems Company, without obtaining the prior consent of the Lender,
(iii) have the Lender waive any Events of Default caused by the Argentine Loan,
(iv) have the Lender waive any Events of Default existing as of November 30,
2001 because of the Borrowers' failure to comply with their respective
obligations under Section 5.5 of the Loan Agreement as of such date, (v) have
the Lender waive any Events of Default as existing as of December 31, 2001
because of the Borrowers' failure to comply with their respective obligations
under Section 6.6 of the Loan Agreement as of such date, (vi) obtain the consent
of the Lender to the French Investment, and (vii) amend a certain definition of
the Loan Agreement, as hereafter set forth; and

         F.    Subject to certain terms and conditions, the Lender is willing
to agree to the same hereinafter set forth.

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

I.       Amendments to Loan Agreement.
         ----------------------------

         A.    Amendment to Definition of "Borrowers". The definition of
               -------------------------------------
"Borrowers" in Section 1.1 of the Loan Agreement is amended in its entirety to
 ---------
read as follows:

               "Borrowers. LoJack Corporation, LoJack International Corporation,
                ---------
               LoJack of New Jersey Corporation, Recovery Systems, Inc., LoJack
               Holdings Corporation, LoJack Venture Corporation, LoJack of
               Pennsylvania, Inc., LoJack FSC, LTD, LoJack Recovery Systems
               Business Trust, LoJack of Arizona, LLC, and Vehicle Recovery
               Systems Company."

         B.    Amendment to Definition of "Permitted Investment". The definition
               ------------------------------------------------
of "Permitted Investment" in Section 1.1 of the Loan Agreement is amended to
read as follows:

               "Permitted Investment. (a) Any equity investment in an existing
                --------------------
               Subsidiary which is a Borrower made by a Borrower after the date
               of this Agreement, (b) any stock or asset acquisition made by a
               Borrower (directly or indirectly by a Subsidiary formed for such
               purpose), in each case, however, only to the extent consented to
               in advance by the Lender, which consent shall not be unreasonably
               withheld or delayed, and (c) any investment by a Borrower in a
               joint venture, corporation, partnership or other similar
               business, provided that such investment involves the purchase of
               no more than 49% of the equity and/or debt securities issued by
               such entity, on a fully diluted basis; provided all the
               investments made in any fiscal year under (a), (b) and (c) above
               shall not exceed $750,000 in the aggregate."

         C.    Acknowledgement of Fiscal Year End and Quarterly Dates. The
               ------------------------------------------------------
Borrowers and the Lender acknowledge that effective as of December 31, 2001, the
fiscal year-end of each

                                      -2-

<PAGE>

of the Borrowers is December 31 and that the Quarterly Dates under the Loan
Agreement shall be deemed to be March 31, June 30, September 30 and December 31.
For the avoidance of doubt, the Borrowers shall be next required to deliver a
covenant compliance report required under Section 6.1(d) of the Loan Agreement
with respect to the fiscal quarter ending March 31, 2002.

         D.    New Exhibit. Exhibit 2.1 to the Loan Agreement is deleted and
               -----------  -----------
the attached Exhibit 2.1 is substituted therefor.
             -----------

II.      Consent and Waivers.  The Lender hereby consents to the French
         -------------------
Investment and agrees to waive the following:

         A.    The Event of Default which occurred because the Parent
organized Vehicle Recovery Systems Company without first obtaining the prior
written consent of the Lender in accordance with Section 7.7 of the Loan
Agreement;

         B.    The Event of Default arising from the Borrowers' failure to
comply with their obligations under Section 5.5 of the Loan Agreement for the
fiscal quarter ending November 30, 2001 because they have indicated that their
consolidated after-tax profit for such quarter was $155,000, which is less than
the required minimum of $500,000;

         C.    The Event of Default arising from the Borrowers' failure to
comply with their obligations under Section 6.6 of the Loan Agreement as of
December 31, 2001, because they failed to maintain February 28 as their fiscal
year-end;

         D.    The Event of Default arising from the Borrowers' failure to
comply with their obligations under Section 7.7(a)(iii) of the Loan Agreement
because of the Argentine Loan; and

         E.    The foregoing waiver is limited to its express terms and shall
not be deemed to be a waiver of any other Event of Default which may have
existed on or prior to the date hereof or which may hereafter arise. Further,
the granting of this waiver shall not be construed as a continuing waiver or
waiver of any other Event of Default under the Loan Agreement, or any other
documents executed in connection therewith.

III.     Certain Representations.
         -----------------------

         As a material inducement to the Lender to enter into this Amendment,
each of the Borrowers hereby represents and warrants to the Lender (which
representations and warranties shall survive the delivery of this Amendment),
after giving effect to this Amendment, as follows:

         A.    The execution and delivery of this Amendment and performance
by each Borrower of its respective obligations hereunder have been duly
authorized by all requisite corporate action and will not violate any provision
of law, any order, judgment or decree of any court or other agency of
government, the corporate charter and/or by-laws of each Borrower, or any
indenture, agreement or other instrument to which any Borrower is a party, or by
which any Borrower is bound.

                                      -3-

<PAGE>

         B.    After giving effect to this Amendment, the representations and
warranties contained in Section 4 of the Loan Agreement are true and correct in
all material respects on and as of the date of this Amendment as though made at
and as of such date (except to the extent that such representations and
warranties expressly relate to an earlier date or except to the extent
variations therefrom have been (i) permitted under the terms of the Loan
Agreement, or (ii) otherwise approved in writing by the Lender or (iii)
reflected in reports filed by the Borrowers with the Securities and Exchange
Commission and furnished to the Lender pursuant to Section 6.1(g)). No material
adverse change has occurred in the assets, liabilities, financial condition,
business or prospects of any Borrowers from that disclosed in the financial
statements most recently furnished to the Lender. No Event of Default has
occurred and is continuing.

         C.    The Borrowers are not required to obtain any consent, approval
or authorization from, or to file any declaration or statement with, any
governmental instrumentality or other agency or any other person or entity in
connection with this Amendment.

         D.    This Amendment and the Note constitutes the legal, valid and
binding obligation of each Borrower, enforceable against each of them in
accordance with their respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting the rights and remedies of
creditors generally or the application of principles of equity, whether in any
action at law or proceeding in equity, and subject to the availability of the
remedy of specific performance or of any other equitable remedy or relief to
enforce any right thereunder.

IV.      Conditions.
         ----------

         The willingness of the Lender to agree to the foregoing is subject to
the following conditions:

         A.    Each Borrower shall have executed and delivered to the Lender
(or shall have caused to be executed and delivered to the Lender) the following:

               1.   This Amendment, including the Joinder of the Loan Agreement;

               2.   The Note in the form of the new Exhibit 2.1 to the Loan
                                                    -----------
Agreement  (which shall  supersede  and replace the Fifth Amended and Restated
Revolving Credit Note dated May 26, 1999);

               3.   True and complete copies of all required directors' or
other governing bodies' consents and/or resolutions, authorizing the execution
and delivery of this Amendment and such other documents as may be necessary,
certified by a duly authorized officer of the appropriate Borrowers; and

               4.   Such other supporting documents and certificates as the
Lender or its counsel may reasonably request.

                                      -4-

<PAGE>

         B.    The Borrowers shall have paid to the Lender all outstanding legal
fees and disbursements of the Lender's counsel;

         C.    All legal matters relating to this Amendment shall be
satisfactory to the Lender and its counsel.

V.       Effect of Amendment.
         --------------------

         This Amendment constitutes an amendment to and modification of the Loan
Agreement and each of the Loan Documents. Each reference in the Loan Agreement
to the "Loan Agreement", "this Agreement", "hereunder", "hereof" or words of
like import referring to the Loan Agreement shall mean and be a reference to the
Loan Agreement, as amended by this Amendment.

VI.      Miscellaneous.
         --------------

         A.    As provided in the Loan Agreement, the Borrowers jointly and
severally agree to reimburse the Lender upon demand for all reasonable
out-of-pocket costs and expenses of the Lender, including all reasonable fees
and disbursements of counsel to the Lender incurred in connection with the
preparation of this Amendment and any other agreements, instruments and
documents executed pursuant hereto.

         B.    This Amendment shall be governed by and construed in accordance
with the laws of the Commonwealth of Massachusetts.

         C.    This Amendment may be executed by the parties hereto in several
counterparts hereof and by the different parties hereto on separate counterparts
hereof, all of which counterparts shall together constitute one and the same
agreement.

         D.    The obligations of the Borrowers under this Amendment shall be
joint and several in nature.

                     **The Next Page is the Signature Page**

                                      -5-

<PAGE>

       IN WITNESS WHEREOF, the Lender and the Borrowers have caused this
Amendment to be duly executed as a sealed instrument by their duly authorized
representatives, all as of the day and year first above written.

                                       LOJACK CORPORATION

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                       LOJACK INTERNATIONAL CORPORATION

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                       LOJACK OF NEW JERSEY CORPORATION

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                       RECOVERY SYSTEMS, INC.

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                       LOJACK HOLDINGS CORPORATION

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                       LOJACK VENTURE CORPORATION

                                       By:  /s/ Joseph F. Abely
                                          -------------------------------------
                                          Joseph F. Abely, President

                                      -6-

<PAGE>

                                         LOJACK OF PENNSYLVANIA, INC.

                                         By:  /s/ Joseph F. Abely
                                            ------------------------------------
                                            Joseph F. Abely, President

                                         LOJACK FSC, LTD.

                                         By:  /s/ Joseph F. Abely
                                            ------------------------------------
                                            Joseph F. Abely, President

                                         LOJACK OF ARIZONA, LLC

                                         By:  /s/ Joseph F. Abely
                                            ------------------------------------
                                            Joseph F. Abely, President

                                         LOJACK RECOVERY SYSTEMS BUSINESS TRUST

                                         By:  /s/ Joseph F. Abely
                                            ------------------------------------
                                            Joseph F. Abely, President

                                         FLEET NATIONAL BANK

                                         By:  /s/ John F. Lynch
                                            ------------------------------------
                                            John F. Lynch, Senior Vice President

                                      -7-

<PAGE>

                            JOINDER TO LOAN AGREEMENT
                            -------------------------

         The undersigned, by its execution hereof, hereby becomes a party to,
and agrees to be bound by, the Loan Agreement dated as of December 10, 1993, as
amended (as amended, the "Loan Agreement"), among Fleet National Bank. (f/k/a
                          --------------
BankBoston, N.A. and successor in interest to The First National Bank of
Boston), LoJack Corporation, LoJack International Corporation, LoJack of New
Jersey Corporation, Recovery Systems, Inc., LoJack Holdings Corporation, LoJack
Venture Corporation, LoJack of Pennsylvania, Inc., LoJack FSC, Ltd., Lojack
Recovery Systems Business Trust and Lojack of Arizona, LLC, and shall have all
of the rights and obligations of a "Borrower" under the Loan Agreement.
                                    --------

         Executed as a sealed instrument as of February 19, 2002

                                                VEHICLE RECOVERY SYSTEMS COMPANY

                                                By:  /s/ Joseph F. Abely
                                                   -----------------------------
                                                   Joseph F. Abely, President

                                      -8-

<PAGE>

                                    EXHIBIT A
                                    ---------

                           SUMMARY OF PROPOSED TERMS
                                January 18, 2002

  THE TERMS AND CONDITIONS SUMMARIZED IN THIS TERM SHEET ARE PROVIDED BY LOJACK
  CORPORATION ("LoJack") [lender may be a LoJack Affiliate] FOR DISCUSSION
  PURPOSES ONLY AND DO NOT CONSTITUTE AN OFFER, AGREEMENT, OR COMMITMENT ON THE
  PART OF LOJACK TO EXTEND FINANCING OR TO AMEND THE EXISTING FINANCING
  ARRANGEMENT. THE ACTUAL TERMS AND CONDITIONS SUMMARIZED IN THIS TERM SHEET ARE
  SUBJECT TO THE SATISFACTORY COMPLETION OF DUE DILIGENCE, INTERNAL APPROVALS,
  AND SUCH OTHER TERMS AND CONDITIONS AS MAY BE DETERMINED BY LOJACK.

BORROWER:                      Car Security S.A. ("Company")

PURPOSE:                       To establish a secured line of credit, including
                               but not limited to the guarantees, security
                               agreements, pledge and collateral assignments in
                               accordance with the terms and conditions detailed
                               herein.

SECURED LINE OF CREDIT
----------------------

LINE OF CREDIT:                Secured Line of Credit ("Line") to a maximum
                               limit of $2,300,000 inclusive of amounts which
                               may have been advanced pursuant to bridge
                               financing of inventory extended by LoJack to the
                               Company between April 1, 2001 and the Closing of
                               this financing, but exclusive of LoJack's legal,
                               accounting and other out of pocket transaction
                               costs treated as advances hereunder. At the
                               Closing outstanding obligations of the Company to
                               LoJack pursuant to the bridge financing relating
                               to inventory shall be treated as advances
                               hereunder subject to the above limit. Additional
                               purchases from LoJack shall be paid for, upon
                               delivery to the Company, by increases in the
                               amount outstanding hereunder (up to the maximum
                               stated above). No other extensions of credit or
                               payment terms (other than credit insured by Ex-Im
                               Bank) in connection with the purchase of
                               inventory is intended or implied hereunder.

CLOSING:                       The Closing shall occur on __________, subject to
                               completion of definitive documentation and
                               compliance with conditions to the closing
                               contained therein.

MATURITY
DATE:                          August 31, 2004.

                                      -9-

<PAGE>

INTEREST RATE:                 At the rate of .7508 percent per month. Interest
                               will be payable monthly in arrears on the
                               fifteenth day of each month.

COMMITMENT
FEE:                           The Company shall pay to LoJack, at the Closing,
                               a Commitment Fee payable in the form of 220,000
                               shares of Common Stock of the Company. In the
                               event of payment in full of the line of credit
                               not later than August 31, 2003, LoJack will
                               surrender, without further consideration,
                               one-half of the shares of Common Stock.

REPAYMENT
SCHEDULE:                      The Company shall apply all available cash flow
                               beyond the day to day requirements of its
                               business as provided in the approved budget and
                               subject to the provisions of the Trust Agreement
                               first to repayment of the line of credit. In any
                               event, the line of credit shall be fully paid on
                               or before the Maturity Date.

DEFERRED
INTEREST:                      For each month that any amount remains
                               outstanding on the line of credit, deferred
                               interest, payable on default or at maturity,
                               shall accrue at the rate of 1.5% per month on the
                               maximum amount outstanding on the line of credit
                               at any time during the month, provided, however,
                               that if there has been no default hereunder,
                               LoJack will waive all accrued deferred interest
                               upon timely payment in full of the line of
                               credit.

PERSONAL
GUARANTEE AND
COMMON STOCK
PLEDGE:                        The personal guaranty of Carlos Mackinlay of
                               payment of the line of credit in accordance with
                               its terms will be obtained at closing of this
                               transaction, secured by a pledge of all
                               outstanding stock of the Company (other than
                               stock held by LoJack). In the event of default,
                               LoJack immediately shall succeed to voting rights
                               and all other "political" rights to the pledged
                               shares, which rights shall continue until payment
                               in full of the line of credit or a foreclosure
                               sale of the pledged shares.

GENERAL TERMS
-------------

SECURITY:                      A perfected security position subordinate only to
                               the Trust Debt in accounts receivable, inventory,
                               and such other assets as LoJack shall require.
                               Subject to the rights of the holders of the

                                      -10-

<PAGE>
                               Trust Debt, certificates of payment against
                               deposits subject to the Trust Agreements shall be
                               made only in accordance with the approved budget
                               and the provisions of this Line of Credit.
                               Certificates of payment for amounts in excess of
                               $ _____ shall require two signatures, one of whom
                               shall be [LoJack employee or designee]. Such
                               representative shall not unreasonably refuse to
                               sign a request consistent with the approved
                               budget.

                               A pledge of the Company's stock in all
                               Subsidiaries presently existing or hereinafter
                               created.

PREPAYMENTS:                   Subject to the provisions of the Trust Debt, all
                               net proceeds of asset sales, debt and equity
                               issuance, insurance and condemnation proceeds
                               (after applicable taxes and/or approved closing
                               costs), outside the ordinary course of business,
                               shall be first applied to repayment of the line
                               of credit until paid in full.

OTHER DEBT:                    The Company will discharge all existing debt and
                               financing arrangements at or prior to the
                               closing, except trade debt which is current and
                               approximately $1,800,000 of which not more than
                               $1,200,000 (the "Trust Debt") held by various
                               creditors is or may be made subject to and with
                               the benefit of the provisions of the trust
                               agreements with Banco Provincia de Cordoba as
                               Trustee including the agreement of August 3, 2001
                               (the "Trust Agreements"). The amounts due
                               hereunder shall receive the benefit of the Trust
                               Agreements. Instructions or certificates for
                               payments pursuant to the Trust Agreements shall
                               be made consistent with the approved budget.
                               Certificates of payment for amounts in excess of
                               $ _____ shall require two signatures, one of whom
                               shall be [LoJack employee or designee]. Such
                               representative shall not unreasonably refuse to
                               sign a request consistent with the approved
                               budget. All other existing and future debt shall
                               be subordinated in all respects to amounts due
                               and other obligations and rights hereunder. No
                               other debt, except trade debt which is current,
                               may be incurred or maintained without the consent
                               of LoJack.

EXISTING DEFAULTS/
COVENANTS AND
AMENDMENTS:                    At closing, LoJack will agree to waive existing
                               payment defaults as detailed in a schedule
                               presented prior to closing.

NO OTHER
ADVANCES

                                      -11-

<PAGE>

CONTEMPLATED
OR IMPLIED:                    All transactions out of the ordinary course of
                               business of the Company shall require the
                               approval of LoJack. Approval of any such
                               transaction does not imply any obligation on the
                               part of LoJack to increase or otherwise modify
                               this Line of Credit. LoJack may perform or
                               participate directly or indirectly in
                               transactions which the Company is unable to
                               complete for financial or other reasons and shall
                               not be required to compensate the Company in any
                               way with respect to any such transaction.

REPORTING
REQUIREMENTS:                  1.   The Company will adopt those portions of the
                                    accounting recommendations made by Deloitte
                                    and Touche LLP as shall be required by
                                    LoJack. Monthly financial statements of the
                                    Company shall be reviewed by a "Big Five"
                                    firm acceptable to LoJack. LoJack shall have
                                    the right to require that the Company
                                    retain, as its outside auditors, a "Big
                                    Five" firm acceptable to LoJack.

                               2.   The Company has provided to LoJack restated
                                    financials, which it warrants to be correct,
                                    and a three-year budget and cash flow
                                    projection.

                               3.   Within thirty days of the end of each month,
                                    the Company will provide LoJack with monthly
                                    reviewed financial reports (including cash
                                    flow) and operating information; within 45
                                    days of the end of each quarter the Company
                                    will provide LoJack with financial reports
                                    (including cash flow) prepared by the
                                    Company and reviewed by its outside
                                    auditors; within 90 days of the end of each
                                    year the Company will provide LoJack with
                                    financial reports (including cash flow)
                                    prepared by the Company and audited by its
                                    outside auditors. Material deviation from
                                    the approved budget or material failure to
                                    achieve at least the approved projected cash
                                    flow for two consecutive quarters shall be
                                    an event of default. The Company shall give
                                    LoJack immediate notice of any noncompliance
                                    with covenants, and failure to give such
                                    notice shall be a default. The giving of
                                    such notice, however, shall not constitute a
                                    default, and default shall occur as provided
                                    in the definitive documents with respect to
                                    notice, subject to materiality
                                    qualifications and after the expiration of
                                    cure periods.

                               4.   The Company will provide such other
                                    information as LoJack reasonably may request
                                    from time to time. LoJack will maintain the
                                    right to examine (Field

                                      -12-

<PAGE>
                                      Examinations) the Company's/Guarantors'
                                      books and records at its discretion.

OTHER
REQUIREMENTS:                  1.     The Borrower will be responsible for all
                                      of LoJack's costs associated with this
                                      transaction, including but not limited to
                                      LoJack's legal expenses in the U. S. and
                                      Argentina, whether or not the transaction
                                      is consummated. Upon consummation of the
                                      contemplated transactions, such costs
                                      shall be added to the amounts outstanding
                                      hereunder and treated for all purposes as
                                      an advance hereunder. Such costs shall be
                                      additive to, and not a use of, the
                                      $2,300,000 credit limit set forth above.

                               2.     All documentation must be satisfactory to
                                      LoJack's counsel and will contain
                                      additional terms and conditions typical in
                                      such agreements including, but not limited
                                      to, confirmations of indebtedness,
                                      confirmations of security (including
                                      guarantees), Affiliate Subordination
                                      Agreement (if any), a general release of
                                      LoJack, consents of the guarantors,
                                      appropriate opinions of the Company's
                                      counsel and appropriate representations
                                      and warranties.

                               3.     The License Agreement between LoJack and
                                      the Company shall be amended to provide
                                      that a default hereunder shall be a
                                      default under the license Agreement, and
                                      vice versa.

                               4.     As soon as practicable, the Company shall
                                      take such actions as may be necessary
                                      to authorize the transactions contemplated
                                      hereby.

                               5.     The Company has provided to LoJack
                                      information as to senior management, and
                                      confidence in such management is material
                                      to LoJack in entering into this
                                      transaction. Any change in management
                                      control not approved by LoJack shall be a
                                      default.

                               6.     Executives and key employees will enter
                                      into an acceptable proprietary information
                                      and invention agreements, as well as an
                                      acceptable non-compete agreement for a
                                      period of one (1) year after leaving the
                                      Company. All non-compete agreements shall
                                      provide that, for the extent of their
                                      term, executives and key employees will
                                      not own an interest in, be employed by, or

                                      -13-

<PAGE>
                                    associated with, any direct competitor of
                                    the Company or of LoJack.

                               7.   So long as any amount remains due hereunder,
                                    the Corporation shall not without first
                                    obtaining the approval of LoJack:
                                    7.1   issue any debt security;
                                    7.2   take any action that results in any
                                    merger, other corporate reorganization, sale
                                    of control, or any transaction in which all
                                    or substantially all of the assets of the
                                    Corporation are sold;
                                    7.3   redeem or repurchase any of the
                                    Corporation's stock;
                                    7.4   enter into any agreement that would
                                    restrict the Company's ability to perform
                                    its obligations hereunder;
                                    7.5   take any action so as to materially
                                    change the Corporation's current line(s) of
                                    business; or;
                                    7.6   declare or pay a dividend or make any
                                    distribution with respect to Common Stock.

DISPUTES AND
GOVERNING LAW:                 Massachusetts law, other than law applying to
                               conflicts of law, shall apply to this agreement
                               to the maximum extent possible. Any dispute
                               between the parties shall be resolved by
                               arbitration in Boston, Massachusetts under the
                               rules of the American Arbitration Association
                               applicable to commercial disputes.

INTERIM
ADVANCES:                      By signing below the Company accepts the terms
                               hereof and agrees that any amounts advanced prior
                               to full documentation of the transactions
                               described herein will be subject to the terms
                               hereof.

Accepted and Agreed:

Car Security S.A.

By: ______________________________
    Its President, duly authorized

                                      -14-

<PAGE>

                                   EXHIBIT 2.1
                                   -----------

                           SIXTH AMENDED AND RESTATED
                              REVOLVING CREDIT NOTE
                              ---------------------

$7,500,000                                                Boston, Massachusetts
                                                              December 10, 1993
                                                        as Amended and Restated
                                                        as of February 20, 1996
                                                        as Amended and Restated
                                                         as of October 31, 1996
                                                        as Amended and Restated
                                                        as of February 28, 1997
                                                        as Amended and Restated
                                                             as of May 26, 1999
                                                        as Amended and Restated
                                                        as of February 19, 2002

         FOR VALUE RECEIVED, LOJACK CORPORATION, LOJACK INTERNATIONAL
CORPORATION, LOJACK OF NEW JERSEY CORPORATION, RECOVERY SYSTEMS, INC., LOJACK
HOLDINGS CORPORATION, LOJACK VENTURE CORPORATION, LOJACK OF PENNSYLVANIA, INC.,
LOJACK FSC, LTD., LOJACK RECOVERY SYSTEMS BUSINESS TRUST, LOJACK OF ARIZONA,
LLC, and VEHICLE RECOVERY SYSTEMS COMPANY (collectively, the "Borrowers"),
                                                              ---------
hereby jointly and severally promise to pay to FLEET NATIONAL BANK (f/k/a
BankBoston, N.A. and successor in interest to The First National Bank of Boston)
(the "Lender"), or order, at the head office of the Lender at 100 Federal
      ------
Street, Boston, Massachusetts 02110, the principal amount of Seven Million Five
Hundred Thousand ($7,500,000) or such lesser amount as shall equal the aggregate
unpaid principal amount of Revolving Loans (as defined in the Loan Agreement
referred to below) made by the Lender to the Borrowers pursuant to the Loan
Agreement dated as of December 10, 1993 by and between the Borrowers and the
Lender, as amended and as hereafter amended or extended from time to time (as
amended, the "Loan Agreement"), together with interest thereon at the rate or
              --------------
rates provided in the Loan Agreement, payable monthly in arrears, without
set-off, deduction or counterclaim, on the first Business Day of each month, and
at the maturity of this Note, whether by payment or prepayment, acceleration or
otherwise.

         Prior to the Maturity Date (as defined in the Loan Agreement) the
principal amount hereof may be advanced, repaid and readvanced in accordance
with the terms of the Loan Agreement. The principal amount outstanding hereunder
on the Maturity Date shall be payable as provided in the Loan Agreement.

                                      -15-

<PAGE>

         Overdue principal (whether at maturity, by reason of acceleration or
otherwise) and, to the extent permitted by applicable law, overdue interest and
fees or any other amounts payable under the Loan Agreement (including without
limitation overadvances) due to the Borrowers' failure to pay the same in full
shall bear interest from and including the due date thereof until paid, at a
rate per annum equal to 4% above the rate which then applies to this Note, which
interest shall be compounded daily and payable on demand.

         In addition, if a payment of principal or interest hereunder is not
made, due to the Borrowers' failure to pay the same in full on its due date, the
Borrowers will also pay on demand a late payment charge equal to 5% of the
amount of such payment. The foregoing shall in no way affect the Lender's right
to exercise any of its rights or remedies, including those provided in Section
8.2 of the Loan Agreement.

         All payments under this Note shall be made at the head office of the
Lender at 100 Federal Street, Boston, Massachusetts 02110 (or at such other
place as the Lender may designate from time to time in writing) in lawful money
of the United States of America in federal or other immediately available funds.

         This Note is the "Note" referred to in, and is entitled to the benefits
of, the Loan Agreement (including Exhibits thereto) and all other agreements and
instruments evidencing the indebtedness hereunder (the "Loan Documents") which
                                                        --------------
Loan Documents are hereby incorporated herein by reference; but neither this
reference to the Loan Documents nor any provision thereof shall affect or impair
the absolute and unconditional obligation of the Borrowers to pay the principal
of and interest on this Note as herein provided.

         This Note supersedes and replaces the Fifth Amended and Restated
Revolving Credit Note in the principal amount of $7,500,000 issued to the Lender
by the Borrowers on May 26, 1999 under the Loan Agreement.

         In case an Event of Default (as defined in the Loan Agreement) shall
occur, the aggregate unpaid principal of and accrued interest on this Note shall
become or may be declared to be due and payable in the manner and with the
effect provided in the Loan Agreement.

         The Borrowers hereby waive presentment, demand, notice of dishonor,
protest and all other demands and notices in connection with the delivery,
acceptance, performance and enforcement of this Note.

                                      -16-

<PAGE>

         THIS INSTRUMENT SHALL HAVE THE EFFECT OF AN INSTRUMENT EXECUTED UNDER
SEAL AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS (WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS
PROVISIONS CONTAINED THEREIN).

WITNESS AS TO ALL:                          LOJACK CORPORATION

/s/ Keith Farris
____________________________                By:  /s/ Joseph F. Abely
    Keith Farris                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK INTERNATIONAL CORPORATION

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, Vice President

                                            LOJACK OF NEW JERSEY CORPORATION

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            RECOVERY SYSTEMS, INC.

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK HOLDINGS CORPORATION

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                      -17-

<PAGE>

                                            LOJACK VENTURE CORPORATION

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK OF PENNSYLVANIA, INC.

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK FSC, LTD.

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK RECOVERY SYSTEMS BUSINESS
                                              TRUST

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            LOJACK OF ARIZONA, LLC

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                            VEHICLE RECOVERY SYSTEMS COMPANY

                                            By:  /s/ Joseph F. Abely
                                               _________________________________
                                               Joseph F. Abely, President

                                      -18-

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