Document:

<PAGE>

                                  EXHIBIT 10hh.

                           AMENDMENT TO LOAN AGREEMENT

        This AGREEMENT (the "Amendment"), effective November 30, 2002, amends a
certain Loan Agreement (the "Loan Agreement") executed September 5, 2002 (and
stated to take effect as of October 4, 2001) entered into by and among Car
Security S.A., an Argentina corporation (the "Borrower"), LoJack Recovery
Systems Business Trust ("Lender"), a Massachusetts business trust and a
subsidiary of LoJack Corporation, LoJack Corporation, a Massachusetts
corporation, Mr. Carlos Mackinlay and Mr. Roberto Bonanni Rey (together, the
"Parties"). Defined terms used herein and not specifically defined shall have
the meaning set forth in the Loan Agreement.

WHEREAS, the Parties have agreed to change certain provisions of the Loan
Agreement and related agreements;

NOW, THEREFORE, in consideration of the undertakings herein, the Parties hereby
agree as follows:

1.      Balance Due.

        (a)     On the date of this Amendment, the Amount Due from Borrower to
                Lender is US$ l,749,248.

2.      Division of the Amount Due.

        (a)     The Amount Due hereunder shall be divided into two parts, with
                differing payment terms. Each such obligation shall be
                represented by a new demand promissory note, designated as the
                Dollar Note and the Peso Calculated Note and in the forms
                annexed hereto as Exhibit A and Exhibit B, respectively. The
                original Note shall be cancelled and delivered to the Borrower
                upon the execution and delivery of this Amendment, the Dollar
                Note and the Peso Calculated Note.

        (b)     The Dollar Note shall be in the amount of US$ 716,512 and shall
                be due December 31, 2009. This amount reflects a deferral of a
                portion of the purchase price of 13,147 LoJack Units (the
                "Subject SVRUs") purchased by Borrower from Lender.

        (c)     The remaining amount of US$ 1,032,736 shall be represented by a
                note (the "Peso Calculated Note") due December 31, 2009. The
                Peso Calculated Note shall be paid and adjusted as provided
                herein.

3.      Interest.

        (a)     Interest shall accrue on the outstanding and unpaid principal
                amount of each of the Dollar Note and the Peso Calculated Note
                (collectively, the "Notes") at the rate of one percent (1%)
                above the Prime Rate (as published, from time to time, by
                Citizens Bank), compounded monthly, as provided in the Notes,
                with interest on Default (as herein defined) accruing at the
                rate set forth in the Notes. All payments, including payments in
                accordance with Section 4, shall be applied first to accrued
                interest and then to principal.

        (b)     The provisions of this Section 3 supersede the provisions of
                Section 3 of the Loan Agreement

4.      Payments, and Mandatory Pre-payment.

        (a)     Borrower shall repay to Lender the principal amount of the
                Dollar Note and shall pay all interest accrued thereon and all
                other amounts payable to Lender pursuant to the terms of the
                Loan Agreement, as amended, or the Dollar Note on or before
                December 31, 2009 (the "Dollar Repayment Date"), subject to
                acceleration as provided in Section 4(f).

<PAGE>

        (b)     Borrower shall pay to Lender in US$ in Westwood Massachusetts,
                USA, monthly, for application against the Dollar Note, within
                twenty-five (25) days of the end of each month, an amount
                determined as follows: a sum equal to the lesser of (i) five
                percent (5%) of Borrower's total monthly gross revenue for such
                month (less only VAT), or (ii) seventeen and one-half percent
                (17.5%) of its average per unit recurring or recovery fees for
                such month, multiplied by 13,147 (representing the number of
                Subject SVRUs). Such amount shall be paid in US$, converted at
                the market rate as determined by Citizens Bank on the date of
                payment, subject to the provisions of Section 7. The actual US$
                payments, when received by Lender, shall be credited against the
                amount due on the Dollar Note. In order to share business risks
                and benefits, Borrower shall continue to make such payments
                through December 31, 2009 even if prior payments have resulted
                in the Dollar Note having been paid in full, and, provided that
                the Borrower makes all such payments through December 31, 2009,
                Lender then shall cancel the Dollar Note, even if it has not by
                then been paid in full. The parties recognize that the effect of
                the exchange rate limitations of Section 7 may be that Borrowers
                actual cost in P$ may exceed the five percent (5%) and seventeen
                and one-half percent (17.5%) limitations set forth above.

        (c)     Borrower shall repay to Lender the principal amount of the Peso
                Calculated Note and shall pay all interest accrued thereon and
                all other amounts payable to Lender pursuant to the terms of the
                Loan Agreement, as amended, or the Peso Calculated Note on or
                before December 31, 2009 (the "Peso Repayment Date"), subject to
                acceleration as provided in Section 4(g).

        (d)     Borrower shall pay to Lender in US$ in Westwood Massachusetts,
                USA, monthly, for application against the Peso Calculated Note,
                within twenty-five (25) days of the end of each month, an amount
                determined as follows: a sum equal to five percent (5%) of its
                total monthly gross revenue for such month (less only VAT)
                reduced, but not below zero, by the P$ amount which was the
                starting point for the calculation of any payment made pursuant
                to Section 4(b) for such month. The amount so determined, in P$,
                shall be applied against the Peso Calculated Note when payment
                in US$ is received by the Lender, until the balance remaining
                due on the Peso Calculated Note is reduced to zero as explained
                below, at which time Lender shall cancel the Peso Calculated
                Note. The starting point for calculation of the remaining
                balance of the Peso Calculated Note shall be the nominal sum of
                P$ 3,717,850, determined by applying an agreed rate of P$ 3.60
                per US$ to the balance described in Section 2 (c). Payment shall
                be made to Lender in the United States in US$, converted at the
                market rate, as determined by Citizens Bank on the date of
                payment, subject to the provisions of Section 7. Lender shall
                cancel the Peso Calculated Note once the amounts applied have
                reduced to zero the balance of principal and interest due from
                the starting point sum of P$ 3,717,850, provided, however, that
                any P$ needed by the Borrower to purchase US$ at a rate higher
                than the corresponding rate indicated in Exhibit C hereof shall
                not be credited against the remaining balance of principal and
                interest on the original sum of P$ 3,717,850. By way of example,
                if the determined amount of P$ pursuant to this Section 4(d) in
                January of 2003 is P$50,000, and the market rate is 5, the
                Borrower shall require P$51,759.83 to meet its payment
                obligation under the Peso Calculated Note for such month, but
                only P$50,000 shall be credited against the remaining balance of
                principal and interest on the original starting point of
                P$3,717,850. The parties recognize that the effect of the
                exchange rate limitations of Section 7 may be that Borrower's
                actual cost in P$ may exceed the five percent (5%) limitation
                set forth above and that the final amount of P$ needed to cancel
                the Peso Calculated Note may exceed P$3,717,850.

        (e)     Nothing contained in Section 4(d) shall be construed as
                relieving Borrower's obligations as set forth in Section 4(c).

        (f)     Upon the occurrence of a Default (as defined in Section 5), the
                Notes shall become due and payable immediately without
                presentment, demand, protest or notice, all of which are hereby
                waived by Borrower, (1) automatically in the case of Section
                5(f) or 5(g); and (2) at the election of Lender by notice to
                Borrower in the case of Sections 5(a) through 5(e).

<PAGE>

        (g)     The Peso Calculated Note may be prepaid at any time, without
                premium or penalty, upon three (3) business days notice, which
                notice of prepayment shall be irrevocable.

        (h)     The provisions of this Section 4 supersede the provisions of
                Section 5 of the Loan Agreement.

5.      Default; Consequences of Default.

        Each of the following events shall constitute an immediate default (a
        "Default") under the Loan Agreement, as amended, and the Notes, unless
        waived by Lender:

        (a)     Borrower shall fail to pay any amount as and when the same shall
                become due pursuant to the terms of the Notes and the Loan
                Agreement, as amended, and such amount shall remain unpaid for a
                period of five (5) days;

        (b)     any representation or warranty of Borrower contained in the Loan
                Agreement shall have been incorrect in any material respect as
                of the date made;

        (c)     Borrower shall fail to provide Lender with immediate notice of
                its failure or inability to comply with any provision of Section
                7 of the Loan Agreement;

        (d)     Borrower shall materially default in the observance or
                performance of any other material agreement or covenant
                contained in the Loan Agreement, as amended, the Notes, the
                License Agreement or any other agreement with Lender or an
                affiliate of Lender, and such default shall not have been cured
                or waived within thirty (30) days of the occurrence of such
                default;

        (e)     Borrower shall materially deviate from the approved budget, or
                shall materially fail to achieve the approved projected cash
                flow for two consecutive quarters (in each case, as defined in
                the Loan Agreement);

        (f)     the entry of any decree or order by a court having jurisdiction
                adjudging Borrower a debtor or insolvent, or approving as
                properly filed a petition seeking reorganization, arrangement,
                adjustment or composition of or in respect of Borrower under
                Argentina Bankruptcy law Nbr. 24,522, as amended (the
                "Bankruptcy Law") or any other applicable federal or state law,
                the appointment of a receiver, liquidator, assignee, trustee,
                sequestrator or other similar official of Borrower, or of any
                substantial part of the property of Borrower, and the
                continuance of any such decree or order unstayed, undischarged,
                or undismissed and in effect for more than sixty (60)
                consecutive days; or

        (g)     institution by Borrower of proceedings, under the Bankruptcy Law
                or any other applicable federal or state law, seeking an order
                for relief, or the consent of Borrower to the institution of
                bankruptcy or insolvency proceedings against Borrower, or the
                consent by Borrower to the filing of any such petition or to the
                appointment of a receiver, liquidator, assignee, trustee,
                sequestrator or other similar official of or for Borrower or any
                substantial part of the property of Borrower, or the making by
                Borrower of any assignment for the benefit of creditors, or the
                admission by Borrower of Borrower's inability to pay its debts
                generally as they become due, or the taking of any action by
                Borrower in furtherance of any such action.

        (h)     Lender shall not make demand for payment of the Dollar Note or
                of the Peso Calculated Note except in the event of Default
                hereunder. In no event shall Lender make demand for more than
                the amount due pursuant to the provisions of this Agreement.

        (i)     The provisions of this Section 5 supersede the provisions of
                Section 6 of the Loan Agreement.

<PAGE>

6.      Renewal of the License Agreement.

        Upon expiration of the term of the License Agreement and provided that
        Borrower is not in default under the Loan Agreement, as amended, or
        under the License Agreement, Lender agrees to consent to renewal for a
        period ending on the earlier of December 31, 2009 or the date of any
        default under the Loan Agreement, as amended. Except for such agreement,
        all provisions and conditions of the License Agreement shall remain in
        effect including, but not limited to, conditions relating to the
        Borrowers financial and technical ability, as licensee, to perform its
        obligations thereunder and rights of termination as set forth in the
        License Agreement. The terms of and such renewal agreement offered to
        Borrower by Lender may differ from the terms of the License Agreement,
        provided, however, that such terms shall not be materially less
        favorable to Borrower than the terms of agreements offered to other
        licensees or prospective licensees similarly situated at the time.

7.      Exchange Rate Protection.

        The provisions of Sections 4 (b) and 4 (d), above, for the conversion of
        Argentine Pesos to United States Dollars shall be subject to the
        limitation that the conversion rate used shall not be higher that the
        rate set forth on Exhibit C for such month, nor lower than three (3) P$
        per US$.

8.      Amendment to Stock Purchase Agreement.

        The parties agree that the date set forth in Section 11.1 (a) of that
        certain Stock Purchase Agreement of September 5, 2002, by and among
        LoJack Corporation, Mr. Carlos Mackinlay and Mr. Roberto Bonanni Rey is
        changed from August 31, 2003 to December 31, 2009.

9.      Continued effect of Guaranty and Pledges.

        The parties agree that the obligations set forth in a Guaranty of
        September 5, 2002 by Mr. Carlos Mackinlay and the obligations set forth
        in two Pledge and Security Agreements of September 5, 2002 each in favor
        of Lender and executed by Mr. Carlos Mackinlay and Mr. Roberto Bonanni
        Rey, respectively, remain in full force and effect with respect to the
        obligations set forth in the Loan Agreement as amended by this
        Amendment.

10.     Further Assurances.

        The Parties shall each execute and deliver such additional documents,
        and take such additional actions, as may be necessary from time to time
        to implement the provisions of this Agreement, provided that this
        Section 10 shall not alter the obligations and rights of the Parties
        hereunder.

11.     Continued Effectiveness.

        Except as specially amended herein, the License Agreement, the Loan
        Agreement, the Guaranty, the Pledge and Security Agreements, the Stock
        Purchase Agreement and all other agreements among the parties shall
        remain in full force and effect.

12.     Counterparts.

        This Amendment may be executed by one or more of the Parties on any
        number of separate counterparts and all of said counterparts taken
        together shall be deemed to constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this
Agreement as of the date first above written.

                                          BORROWER:

                                          Car Security S.A.

                                          By:  /s/ Carlos Mackinlay
                                               --------------------
                                          Name: Carlos Mackinlay

                                          Title: President

                                          LENDER:

                                          LoJack Recovery Systems Business Trust

                                          By:  /s/ Joseph F. Abely
                                               -------------------
                                          Name:  Joseph F. Abely

                                          Title:   President

                                          OTHER PARTIES:

                                          The following are parties to the
                                          Amendment only to the extent and for
                                          the purposes set forth in Sections 8,
                                          9, 10 and 11 hereof:

                                          Carlos R. Mackinlay

                                          /s/ Carlos R. Mackinlay
                                          -----------------------
                                          Roberto Bonanni Rey

                                          /s/ Roberto Bonanni Rey
                                          -----------------------
                                          LoJack Corporation

                                          /s/ Joseph F. Abely
                                          -------------------
                                          Name:  Joseph F. Abely
                                          Title:   President

<PAGE>

                                    Exhibit A

                                 PROMISSORY NOTE

US$ 716,512

                                       Buenos Aires, Argentina November 30, 2002

CAR SECURITY S.A. ("Car Security"), domiciled at Avenida del Libertador 4600,
1426 Buenos Aires, Argentina, hereby promises to unconditionally pay, on demand
and WITHOUT PROTEST, to LoJack Recovery Systems Business Trust, a Massachusetts
business trust ("LoJack"), "NO A LA ORDEN", the amount of US$ Seven Hundred
Sixteen Thousand Five Hundred Twelve ($716,512 U.S. dollars), plus reasonable
legal, accounting and all other reasonable transaction costs directly incurred
in connection with this Note and the transactions contemplated hereby, or so
much thereof as may from time to time be advanced and remain unpaid hereunder.
Said payment shall only be made in U.S. dollars (effective payment in foreign
currency clause, section 44, third paragraph, Decree 5965/63) to the order of
LoJack at its offices located at Westwood Executive Center, 200 Lowder Brook
Road, Suite 1000, Westwood, MA 02090.

Car Security shall also pay LoJack financing interest at an interest rate fixed
at one percent the prime rate published from time to time by Citizens Bank,
Boston, Massachusetts, compounded monthly.

In the event that, as a consequence of foreign exchange controls, restrictions
on the transfer of foreign currency from or to the Republic of Argentina or by
reason of any other action taken by a competent governmental body, we were
prevented from making the relevant payment in the currency agreed, we shall
deliver to the legitimated holder hereof, at the latter's option: a) External
Bonds of the Republic of Argentina or any other U.S. dollar-denominated
securities issued by the National Government of any series chosen by the
legitimated holder hereof, at its sole discretion, in such number and with such
nominal value as shall suffice so that upon the sale thereof in a foreign
market, at the option of the legitimated holder hereof, the proceeds in U.S.
dollars, net of all expenses, fees and/or taxes that may be payable by reason of
its transfer or sale, shall be equal to the amount in U.S. dollars payable; or
b) the amount in legal tender then in force in the Republic of Argentina as may
be required to acquire External Bonds of the Republic of Argentina or any other
U.S. dollar-denominated securities issued by the National Government of any
series chosen by the legitimated holder hereof, at its sole discretion, in such
number and with such nominal value as shall suffice so that upon the sale
thereof in a foreign market, at the option of the legitimated holder hereof, the
proceeds in U.S. dollars, net of all expenses, fees and/or taxes that may be
payable by reason of its transfer or sale, shall be equal to the amount in U.S.
dollars payable. In either case, any of the above procedures shall only be
regarded as a discharge of obligations once the legitimated holder hereof shall
have received the entire amount of U.S. dollars due hereunder.

Car Security expressly waives its right to invoke its inability to fulfill any
payment obligation based on acts of God or force majeure events (section 514 of
the Civil Code). Car Security further represents that, upon executing this
acknowledgement of obligations, it is fully familiar with the current economic
and financial conditions (including the exchange rate ratio among the Argentine
currency, the Euro and

<PAGE>

the U.S. dollar set forth in law 23.928 as amended by law 25.445), having
considered all possible consequences arising from those acts and having acted
with the independent advice it has deemed convenient, for which reason it
expressly waives the right to invoke hardship ("teoria de la imprevision") as
contemplated in section 1198 of the Argentine Civil Code, the unconscionability
theory and/or any other doctrine, concept or theory already established or which
may be established in the future either by law, case law or doctrine, which may
in any way release Car Security from the full, total and timely performance of
its obligations as acknowledged hereunder.

In case of lack of payment upon presentation of this promissory note, penalty
interest shall accrue hereon at a rate equal to 1.5 times the interest rate
charged by the Banco de la Nacion Argentina (Lending Rate) for discount
transactions of 30-day negotiable instruments.

For all legal purposes arising from this Promissory Note, Car Security
establishes special domicile at Avenida del Libertador 4600, 1426 Buenos Aires,
Argentina, where all notices served shall be deemed validly given. We expressly
accept that such domicile shall be regarded as our domicile ad litem for all
judicial purposes in the terms of section 40 and related sections of the
Argentine Code of Civil and Commercial Procedure. We submit to the jurisdiction
of the Ordinary First Instance Courts hearing Commercial Matters of the City of
Buenos Aires, expressly waiving any other venue or jurisdiction.

Pursuant to the provisions of section 36 of Executive Order 5965/63, the term
for presentation of this promissory note is extended to 9 years counted as from
the issuance date hereof.

This Promissory Note is issued under the terms of Decree 5965/63 of the Republic
of Argentina.

CAR SECURITY S.A.

_________________________________

By: _____________________________

Title: __________________________

<PAGE>

                                    Exhibit B

                                 PROMISSORY NOTE

United States Dollars $1,032,736

                                       Buenos Aires, Argentina November 30, 2002

CAR SECURITY S.A. ("Car Security"), domiciled at Avenida del Libertador 4600,
1426 Buenos Aires, Argentina, hereby promises to unconditionally pay, on demand
and WITHOUT PROTEST, to LoJack Recovery Systems Business Trust, a Massachusetts
business trust ("LoJack"), "NO A LA ORDEN", the amount of One Million Thirty-Two
Thousand Seven Hundred Thirty-Six (1,032,736) United States Dollars, plus
reasonable legal, accounting and all other reasonable transaction costs directly
incurred in connection with this Note and the transactions contemplated hereby,
or so much thereof as may from time to time be advanced and remain unpaid
hereunder. Said payment shall only be made in U.S. dollars converted at the rate
in effect on the date of payment at Citizens Bank, Boston, Massachusetts, USA
(effective payment in foreign currency clause, section 44, third paragraph,
Decree 5965/63) to the order of LoJack at its offices located at Westwood
Executive Center, 200 Lowder Brook Road, Suite 1000, Westwood, MA 02090.

Car Security shall also pay LoJack financing interest at an interest rate fixed
at one percent the prime rate published from time to time by Citizens Bank,
Boston, Massachusetts, compounded monthly.

In the event that, as a consequence of foreign exchange controls, restrictions
on the transfer of foreign currency from or to the Republic of Argentina or by
reason of any other action taken by a competent governmental body, we were
prevented from making the relevant payment in the currency agreed, we shall
deliver to the legitimated holder hereof, at the latter's option: a) External
Bonds of the Republic of Argentina or any other U.S. dollar-denominated
securities issued by the National Government of any series chosen by the
legitimated holder hereof, at its sole discretion, in such number and with such
nominal value as shall suffice so that upon the sale thereof in a foreign
market, at the option of the legitimated holder hereof, the proceeds in U.S.
dollars, net of all expenses, fees and/or taxes that may be payable by reason of
its transfer or sale, shall be equal to the amount in U.S. dollars payable; or
b) the amount in legal tender then in force in the Republic of Argentina as may
be required to acquire External Bonds of the Republic of Argentina or any other
U.S. dollar-denominated securities issued by the National Government of any
series chosen by the legitimated holder hereof, at its sole discretion, in such
number and with such nominal value as shall suffice so that upon the sale
thereof in a foreign market, at the option of the legitimated holder hereof, the
proceeds in U.S. dollars, net of all expenses, fees and/or taxes that may be
payable by reason of its transfer or sale, shall be equal to the amount in U.S.
dollars payable. In either case, any of the above procedures shall only be
regarded as a discharge of obligations once the legitimated holder hereof shall
have received the entire amount of U.S. dollars due hereunder.

<PAGE>

Car Security expressly waives its right to invoke its inability to fulfill any
payment obligation based on acts of God or force majeure events (section 514 of
the Civil Code). Car Security further represents that, upon executing this
acknowledgement of obligations, it is fully familiar with the current economic
and financial conditions (including the exchange rate ratio among the Argentine
currency, the Euro and the U.S. dollar set forth in law 23.928 as amended by law
25.445), having considered all possible consequences arising from those acts and
having acted with the independent advice it has deemed convenient, for which
reason it expressly waives the right to invoke hardship ("teoria de la
imprevision") as contemplated in section 1198 of the Argentine Civil Code, the
unconscionability theory and/or any other doctrine, concept or theory already
established or which may be established in the future either by law, case law or
doctrine, which may in any way release Car Security from the full, total and
timely performance of its obligations as acknowledged hereunder.

In case of lack of payment upon presentation of this promissory note, penalty
interest shall accrue hereon at a rate equal to 1.5 times the interest rate
charged by the Banco de la Nacion Argentina (Lending Rate) for discount
transactions of 30-day negotiable instruments.

For all legal purposes arising from this Promissory Note, Car Security
establishes special domicile at Avenida del Libertador 4600, 1426 Buenos Aires,
Argentina, where all notices served shall be deemed validly given. We expressly
accept that such domicile shall be regarded as our domicile ad litem for all
judicial purposes in the terms of section 40 and related sections of the
Argentine Code of Civil and Commercial Procedure. We submit to the jurisdiction
of the Ordinary First Instance Courts hearing Commercial Matters of the City of
Buenos Aires, expressly waiving any other venue or jurisdiction.

Pursuant to the provisions of section 36 of Executive Order 5965/63, the term
for presentation of this promissory note is extended to 9 years counted as from
the issuance date hereof.

This Promissory Note is issued under the terms of Decree 5965/63 of the Republic
of Argentina.

CAR SECURITY S.A.

_________________________________

By: _____________________________

Title: __________________________

<PAGE>

                                    EXHIBIT C

                             MAXIMUM EXCHANGE RATES
<TABLE>
<CAPTION>
         Jan      Feb      March    April   May      June     July     August   Sept    Oct      Nov      Dec
<S>      <C>      <C>      <C>      <C>     <C>      <C>      <C>      <C>      <C>     <C>      <C>      <C>
2003     4.83     4.92     5.00     5.08    5.17     5.25     5.33     5.42     5.50    5.58     5.67     5.75

2004     5.79     5.83     5.88     5.92    5.96     6.00     6.04     6.08     6.13    6.17     6.21     6.25

2005     6.27     6.29     6.31     6.33    6.35     6.38     6.40     6.42     6.44    6.46     6.48     6.50

2006     6.52     6.54     6.56     6.58    6.60     6.63     6.65     6.67     6.69    6.71     6.73     6.75

2007     6.77     6.79     6.81     6.83    6.85     6.88     6.90     6.92     6.94    6.96     6.98     7.00
</TABLE><PAGE>

                                  EXHIBIT 10ii.

          LOJACK CORPORATION RESTATED AND AMENDED STOCK INCENTIVE PLAN

1.      Purposes of Plan

        The Restated and Amended Stock Incentive Plan (the "Plan") is intended
to promote the long-term interests of the Company and its shareholders by
providing non-employee directors, consultants, officers and other employees of
the Company with an additional incentive arising from capital stock ownership to
promote the financial success of the Company. Those provisions of the Plan which
make reference to Section 422 of the Code (as defined below) shall apply only to
ISOs (as defined below).

2.      Definitions

        Unless otherwise required by the context, the following terms when used
in the Plan shall have the meaning set forth in this Section 2:
        (a)     "Affiliate": Any "parent corporation" or "subsidiary
        corporation" of the Company, as such terms are defined in Sections
        424(e) and (f), respectively, of the Code.

        (b)     "Agreement": An option agreement evidencing an Award (other than
        the grant of a Non-Employee Director Option) in such form as adopted by
        the Committee pursuant to the Plan.

        (c)     "Award": The grant of an Option under the Plan.

        (d)     "Board of Directors" or "Board": The Board of Directors of the
        Company.

        (e)     "Change in Control": A "Change in Control" occurs if the Company
        (i) ceases operations; (ii) merges or consolidates with another entity
        and is not the surviving entity; (iii) sells or otherwise transfers
        substantially all of its operating assets; or (iv) if more than fifty
        percent (50%) of the capital stock of the Company is transferred in a
        single transaction or in a series of related transactions other than a
        public offering of stock of the Company.

        (f)     "Code": The Internal Revenue Code of 1986, as amended from time
        to time.

        (g)     "Committee": The Compensation Committee of the Board of
        Directors or such other committee appointed by the Board of Directors
        which meets the requirements set forth in Section 11(a) hereof.

        (h)     "Company": LoJack Corporation, a Massachusetts corporation.

        (i)     "Effective Date": The date on which the Plan shall become
        effective as set forth in Section 12 hereof.

        (j)     "Exchange Act": The Securities Exchange Act of 1934, together
        with all regulations and rules issued thereunder.

        (k)     "Exercise Price": In the case of an Option, the price per Share
        at which the Shares subject to such Option may be purchased upon
        exercise of such Option.

        (l)     "Fair Market Value": As applied to a specific date, the closing
        price, if any, of the Company's Common Stock on such date as reported by
        the NASDAQ or such other exchange on which the Company's Common Stock
        may then be traded, or, if none, the fair market value shall be the
        closing price of the Company's Common Stock on the nearest date before
        the grant. The Fair Market Value determined by the Committee or the
        Board (in the case of a Non-Employee Director Option) in good faith in
        such manner shall be final binding and conclusive on all parties.

        (m)     "ISO": An Option is intended to qualify as an "incentive stock
        option", as defined in Section 422 of the Code or any statutory
        provision that may replace such Section.

        (n)     "Non-Employee Director Option": An NQSO granted to a
        non-employee director as set forth in Section 8 hereof.

<PAGE>

        (o)     "NQSO": An Option not intended to be an ISO and designated a
        Nonqualified Stock Option by the Committee and any Senior Management
        Option or Non-Employee Director Option.

        (p)     "Option": Any ISO or NQSO granted under the Plan.

        (q)     "Original Plan": The LoJack Corporation Stock Incentive Plan
        adopted by the Board of Directors on May 10, 1989 and approved by the
        Company's shareholders on July 19, 1989, as amended by Amendment No. 1
        adopted by the Board of Directors on January 24, 1992 and approved by
        the Company's shareholders on July 15, 1992.

        (r)     "Participant": A non-employee director, consultant, officer or
        other key employee of the Company who has been granted an Award under
        the Plan.

        (s)     "Plan": This LoJack Corporation Restated and Amended Stock
        Incentive Plan, as the same may be amended from time to time.

        (t)     "Reporting Person": Such persons as are required to file reports
        under Section 16(a) of the Exchange Act.

        (u)     "Senior Management Option": An NQSO granted to a person
        determined by the Committee to be a member of senior management and
        designated a Senior Management Option by the Committee.

        (v)     "SEC": The Securities and Exchange Commission.

        (w)     "Shares": Shares of the Company's authorized but unissued or
        reacquired $.01 par value Common Stock, or such other class or kind of
        shares or other securities as may be applicable pursuant to the
        provisions of Section 4(b) hereof.

3.      Participation

        The class of persons eligible to receive Awards under the Plan shall be
those officers, consultants and other employees of the Company as designated by
the Committee from time to time and those non-employee directors eligible to
receive Non-Employee Director Options under Section 8 hereof.

4.      Shares Subject to Plan

        (a)     Maximum Shares. Subject to adjustment by the operation of
        Section 4(b) hereof, the maximum number of Shares with respect to which
        Options may be granted under the Plan is 5,374,135 shares comprised of
        310,000 shares available for Non-Employee Director Options and 5,064,135
        shares available for the Award of other Options including Senior
        Management Options. The Shares with respect to which Options may be
        granted under the Plan may be either authorized and unissued shares or
        issued shares heretofore or hereafter reacquired and held as treasury
        shares. An Award shall not be considered to have made under the Plan
        with respect to any Option to he extent that it terminates without being
        exercised, and new Awards may be granted under the Plan with respect to
        the number of Shares as to which such termination has occurred.

        (b)     Adjustment of Shares and Price. In the event that the Shares are
        changed into or exchanged for a different kind or number of Shares of
        stock or securities of the Company as the result of any stock dividend,
        stock split, combination of shares, exchange of shares, merger,
        consolidation, reorganization, recapitalization or other change in
        capital structure, then the number of Shares subject to this Plan and to
        Awards granted hereunder and the purchase or Exercise Price for such
        Shares shall be equitably adjusted by the Committee to prevent the
        dilution or enlargement of Awards, and any new stock or securities into
        which the Shares are changed or for which they are exchanged shall be
        substituted for the Shares subject to this Plan and to Awards granted
        hereunder; provided, however that fractional Shares may be deleted from
        any such adjustment or substitution.

5.      General Terms and Conditions of Options

        (a)     General Term. The Committee shall have full and complete
        authority and discretion except as set forth in Section 8 and as
        otherwise expressly limited by the Plan, to grant Options and to provide
        the terms and conditions (which need not be identical) among
        Participants thereof. In particular, the Committee shall prescribe the
        following terms and conditions with respect to any Options (other than
        Non-Employee Director Options):

<PAGE>

                (i)     the Exercise Price of any Option determined in
                accordance with Section 5(b) hereof.

                (ii)    the number of Shares subject to and the expiration date
                of any Option, provided, however that no Option shall have a
                term in excess of ten years from the date of grant of the
                Option.

                (iii)   the manner, time and rate (cumulative or otherwise) of
                exercise of such Option; provided that no Option shall be
                exercisable earlier than one year from the date of grant.

                (iv)    the restrictions, if any to be placed upon such Option
                or upon Shares which may be issued upon exercise of such Option.
                The Committee may as a condition of granting any Option require
                that a Participant agree not to exercise thereafter one or more
                Options previously granted to such Participant.

                (v)     provisions, if any, for automatic vesting of any Option
                upon a "Change in Control" of the Company.

        (b)     Exercise Price. The Exercise Price of an ISO shall not be less
        than 100% (or with respect to any Participant owning more than 10% of
        the combined voting power of all classes of the Company's or an
        Affiliate's Stock, 110 %) of the Fair Market Value per Share on the date
        of the grant.

        Notwithstanding the foregoing, in no event shall the Exercise Price of
        an Option be less than the par value per Share.

6.      Exercise of Options and Rights

        (a)     General Exercise Rights. Except as provided in Section 6(c) or
        Section 9 hereof, an Option granted under the Plan shall be exercisable
        during the lifetime of the Participant to whom such Option was granted
        only by such Participant and no such Option may be exercised unless at
        the time such Participant exercises such Option, such Participant is,
        and continuously since the grant of the Option has been, an employee of
        the Company. A leave of absence by an employee at the request or with
        the approval of the Company shall not be deemed an interruption or
        termination of employment, so long as the period of such leave does not
        exceed 180 days, or, if longer, so long as the Participant's right to
        re-employment with the Company is guaranteed by contract, applicable
        law, a vote of the Board of Directors or the Company's corporate policy
        in effect on the date such leave commences. An Option also shall contain
        such conditions upon exercise (including, without limitation, conditions
        limiting the time of exercise to specified periods) as may be required
        to satisfy applicable regulatory requirements, including, without
        limitation, Rule 16b-3 (or any successor rule) promulgated by the SEC.

        (b)     Notice of Exercise. An Option may not be exercised with respect
        to less than 25 Shares, unless the exercise relates to all Shares
        covered by the Option at the date of exercise. An Option shall be
        exercised by delivery of a written notice to the Company. Such notice
        shall state the election to exercise the Option and the number of whole
        Shares in respect of which it is being exercised, and shall be signed by
        the person or persons so exercising the Option. In the case of an
        exercise of an Option such notice shall either: (a) be accompanied by
        payment of the full Exercise Price and all applicable withholding taxes,
        in which event the Company shall deliver any certificate(s) representing
        Shares which the Participant is entitled to receive as a result of the
        exercise as soon as practicable after the notice has been received; or
        (b) fix a date (not less than 5 nor more than 15 business days from the
        date such notice has been received by the Company) for the payment of
        the full Exercise Price and all applicable withholding taxes, against
        delivery by the Company of any certificate(s) representing Shares which
        the Participant is entitled to receive as a result of the exercise.
        Payment of such Exercise Price and withholding taxes shall be made as
        provided in Sections 6(d) and 10 hereof, respectively. In the event the
        Option shall be exercised by any person or persons other than the
        Participant, such notice shall be accompanied by appropriate proof of
        the right of such person or persons to exercise the Option.

        (c)     Special Situations. Except as provided below and in Sections 8
        and 9 hereof or as otherwise determined by the Committee at the date of
        grant of an Option, upon termination of a Participant's employment with
        the Company (including but not limited to a termination for cause) the
        Option shall immediately terminate and shall no longer be exercisable.

                (i)     in the case of termination as a result of retirement of
                the Participant, an Option shall remain exercisable by such
                Participant for three (3) years (three (3) months in the case of
                an ISO) after the date of termination (but in no event after the
                normal expiration date of such Option or Right) to the extent
                that

<PAGE>

                such Participant was entitled to exercise such Option at the
                date of such termination. For this purpose, "retirement" shall
                mean voluntary retirement under a retirement plan or program of
                the Company;

                (ii)    in the case of termination as a result of death or
                disability of the Participant, an Option shall remain
                exercisable by such Participant (or in the case of death, by the
                persons to whom an Option is transferred by will or the laws of
                descent and distribution) for three (3) years (one (1) year in
                the case of an ISO) after the date of termination (but in no
                event after the normal expiration date of such Option or Right)
                to the extent that such Participant was entitled to exercise
                such Option at the date of such termination. For this purpose,
                "disability" shall have the meaning set forth in Section 22 (e)
                (3) of the Code;

                (iii)   in the case of termination by the Company other than for
                cause, an Option shall remain exercisable for three months after
                the date of termination (but in no event after the normal
                expiration date of such Option or Right) to the extent that such
                Participant was entitled to exercise such Option at the date of
                such termination;

                (iv)    in the case of an NQSO or a Senior Management Option, an
                Option shall remain exercisable until the normal expiration date
                of such Option or Right by a Participant who is a consultant or
                former consultant of the Company; and.

                (v)     in the case of a Non-Employee Director Option, an Option
                shall remain exercisable until the normal expiration date of
                such Option or Right by a Participant who is a director or a
                former director of the Company whose service as a director was
                not terminated for cause.

                To the extent the Option is not exercised within the foregoing
                periods of time, the Option shall automatically terminate at the
                end of the applicable period of time. Notwithstanding the
                foregoing provisions, failure to exercise an ISO within the
                periods of time prescribed under Section 421 and 422 of the Code
                shall cause an ISO to cease to be treated as an "incentive stock
                option" for purposes of Section 421 of the Code.

        (d)     Payment of Option Exercise Price. Upon the exercise of an
        Option, payment of the Exercise Price shall be made either (i) in cash
        (by a certified check, bank draft or money order), (ii) with the consent
        of the Committee (or the Board in the case of a Non-Employee Director
        Option) and subject to Section 6(e) hereof by delivering the
        Participant's duly executed promissory note and related documents, (iii)
        with the consent of the Committee (or the Board in the case of a
        Non-Employee Director Option) by delivering Shares already owned by the
        Participant which have been held for more than six months valued at Fair
        Market Value; provided that no Shares received upon exercise of that
        Option thereafter may be exchanged to pay the Option price for
        additional Shares within the following six months, or (iv) by a
        combination of the foregoing forms of payment.

        (e)     Payment with Loan. The Committee (or the Board in the case of a
        Non-Employee Director Option) may in its sole discretion assist any
        Participant in the exercise of one or more Options granted to such
        Participant under the Plan by authorizing the extension of a loan to
        such Participant from the Company. Except as otherwise provided in this
        Section 6(e), the terms of any loan (including the interest rate and
        terms of repayment) shall be established by the Committee (or the Board
        in the case of a Non-Employee Director Option) in its sole discretion.
        The maximum amount of any loan shall not exceed 80% of the Exercise
        Price payable from the Shares being purchased. Any such loan by the
        Company shall be with full recourse against the Participant to whom the
        loan is granted, shall be secured in whole or in part by the Shares so
        purchased, and shall bear interest at a rate not less than the minimum
        interest rate required at the time of purchase of the Shares in order to
        avoid having imputed interest or original issue discount under Sections
        483 or 1202 of the Code. In addition, any such loan by the Company shall
        become immediately due and payable in full, at the option of the
        Company, upon termination of the Participant's employment with or
        service to the Company for any reason or upon a sale of any Shares
        acquired with such loan to the extent of the cash and fair market value
        of any property received by the Participant in such sale. The Committee
        may make arrangements for the application of payroll deduction from
        compensation payable to the Participant to amounts owing to the Company
        under any such loan. Until any loan by the Company under this Section
        6(e) is fully paid in cash, the Shares shall be pledged to the Company
        as security for such loan and the Company shall retain physical
        possession of the stock certificates evidencing the Shares so purchased
        together with a duly executed stock power for such Shares. No loan shall
        be made hereunder unless counsel for the Company shall be satisfied that
        the loan and the issuance of Shares funded thereby will be in compliance
        with all applicable federal, state and local laws.

<PAGE>

        (f)     Rights as a Shareholder. A Participant shall have no rights as a
        shareholder with the respect to any Shares issuable or exercise of any
        Option until the date of the issuance of a stock certificate to the
        Participant for such Shares. No adjustment shall be made for dividends
        (ordinary or extraordinary, whether in cash, securities or other
        property) or distributions or other rights for which the record date is
        prior to the date such stock certificate is issued, except as provided
        in Section 4(b) hereof.

        (g)     Effect of Merger, Etc. In the event of a consolidation or merger
        or sale of all or substantially all of the assets of the Company in
        which outstanding shares of Common Stock are exchanged for securities,
        cash or other property of any other corporation or business entity or in
        the event of a liquidation of the Company, the Board of Directors of the
        Company, or the board of directors of any corporation assuming the
        obligations of the Company may in its discretion take any one or more of
        the following actions, as to outstanding options: (i) provide that such
        options shall be assumed, or equivalent options shall be substituted, by
        the acquiring or succeeding corporation (or an affiliate thereof),
        provided that any such options substituted for ISO's shall meet the
        requirements of Section 424 of the Code; (ii) upon written notice to the
        optionees, provide that all unexercised options will terminate
        immediately prior to the consummation of such transaction unless
        exercised by the optionee within a specified period following the date
        of such notice; (iii) in the event of a merger under the terms of which
        holders of the Common Stock of the Company will receive upon
        consummation thereof a cash payment for each share surrendered in the
        merger (the "Merger Price"), make or provide for a cash payment to the
        optionees equal to the difference between (A) the Merger Price times the
        number of shares of Common Stock subject to such outstanding options (to
        the extent then exercisable at prices not in excess of the Merger Price)
        and (B) the aggregate exercise price of all such outstanding options in
        exchange for the termination of such options; and (iv) provide that all
        or any outstanding options shall become exercisable in full immediately
        prior to such event; provided that notwithstanding anything to the
        contrary in this Section 6(g), any action taken by the Board of
        Directors hereunder shall be in compliance with Rule 16b-3 and the
        conditions thereof necessary to maintain qualification of the Plan under
        Rule 16b-3. In the case of any Option which by the terms of the grant
        thereof (or the agreement or instrument governing such grant) or
        pursuant to a decision by the Board of Directors under this Section 6(g)
        provides for such Option becoming fully exercisable upon a Change in
        Control or otherwise under this Section 6, such Option shall be deemed
        vested on the day immediately prior to the day on which such Change in
        Control occurs and Participants holding such Options shall be given
        prior written notice of such Change in Control sufficient to pen-nit
        them to exercise such Options.

7.      Special Provisions for ISOs

        Any provision of the Plan to the contrary notwithstanding, the following
special provisions shall apply to all ISOs granted under the Plan:

                (i)     the Option must be expressly designated as an ISO by the
                Committee and in the Agreement;

                (ii)    no ISO shall be granted more than ten years from the
                effective date of the Original Plan and no ISO shall be
                exercisable more than ten years from the date such ISO is
                granted;

                (iii)   the Exercise Price of any ISO shall not be less than the
                Fair Market Value per Share on the date such ISO is granted;
                provided, however, that with respect to an ISO granted to any
                individual who, at the time such ISO is granted, owns stock
                possessing more than 10% of the total combined voting power of
                all classes of stock of the Company or any Affiliate the
                Exercise Price of such ISO shall be at least 110 % of the Fair
                Market Value per Share at the date of grant;

                (iv)    the aggregate Fair Market Value (determined as of the
                time any ISO is granted) of any Company stock with respect to
                which any ISOs granted to a Participant are exercisable for the
                first time by such Participant during any calendar year (under
                this Plan and all other. stock option plans of the Company and
                any predecessor) shall not exceed $100,000 as required under
                Section 422 of the Code. (To the extent the $100,000 limit is
                exceeded, the $100,000 in Options, measured as described above,
                granted earlier in time will be treated as ISO's); and

                (v)     any other terms and conditions as may be required in
                order that the ISO qualifies as an "incentive stock option"
                under Section 422 of the Code or successor provision.

8.      Non-Employee Director Options

<PAGE>

        Non-employee directors may be granted Options under the Plan only
pursuant to this Section 8. The grant of Non-Employee Director Option shall
require no action by the Committee or the Board and shall occur as follows:

                (i)     Each non-employee director elected or re-elected at the
                annual meeting of the Company's stockholders on July 20, 1994
                (or at adjournment thereof) shall be granted, on the third
                business day after the date of such meeting, a Non-Employee
                Director Option to purchase 10,000 Shares (subject to Section
                4(b)) to vest (if the director continues to serve as such) in
                two equal annual installments commencing on the date of the 1995
                annual meeting of the Company's stockholders.

                (ii)    Each non-employee director elected or re-elected at an
                annual stockholders meeting or a special meeting in lieu of an
                annual meeting, or who continues to serve after such meeting,
                shall be granted, on the third business day following the date
                of such meeting (an "Automatic Grant Date"), a Non-Employee
                Director Option to purchase 5,000 Shares (subject to Section
                4(b)) to vest (if the director continues to serve as such) in
                two equal annual installments commencing on the date of the next
                annual meeting after the date of grant.

                (iii)   Each non-employee director elected other than at an
                annual stockholders meeting shall be granted, on the third
                business day following the date of such election, a Non-Employee
                Director Option to purchase 1,250 Shares (subject to Section
                4(b)) for each partial or complete fiscal quarter remaining in
                the period from one annual meeting to the next to vest (if the
                director continues to serve as such) in two equal annual
                installments commencing on the date of the next annual meeting
                after the date of grant.

                (iv)    Non-Employee Director Options shall have an exercise
                price equal to the Fair Market Value of the Common Stock on the
                date of grant and a term of ten (10) years. Non-Employee
                Director Options which have not been exercised within such ten
                (10) year term shall expire at the end of such term.

                (v)     Non-Employee Director Options shall become fully
                exercisable upon a "Change in Control."

                (vi)    Except as provided in Section 9, Non-Employee Director
                Options shall be exercisable only by the Participant during his
                lifetime and shall be non-transferable by the Participant.

                (vii)   All Non-employee Director Options granted pursuant to
                the Plan are subject to the restriction that one year must
                elapse from the date of grant of the option to the date of
                exercise.

        Non-Employee Director Options shall be generally administered by the
Board of Directors. The manner of exercise and other terms governing
Non-Employee Director Options shall be determined by the Board of Directors at
the time of the grant thereof on such terms as shall not be inconsistent with
this Section 8.

9.      Restrictions on Transfers; Government Regulations
        (a)     Awards Generally Not Transferable. No Option nor any right or
        interest of a Participant under the Plan in any instrument evidencing
        any Option under the Plan may be assigned, encumbered, or transferred,
        except, (i) in the event of the death of a Participant, by will or the
        laws of descent and distribution, (ii) in the case of options other than
        ISO's, pursuant to a qualified domestic relations order as defined by
        the Code or Title I of the Employee Retirement Income Security Act or
        the rules thereunder, or (iii) in the case of Senior Management Options
        and Non-Employee Director Options, to the spouse or child of the
        Participant, or to a trust, family partnership or other like arrangement
        substantially all of the beneficial interest in which is held by the
        Participant, his spouse and his descendants.

        (b)     Government Regulations. This Plan, the granting of Awards under
        this Plan and the issuance or transfer of Shares (and/or the payment of
        money) pursuant thereto are subject to all applicable Federal and state
        laws, rules and regulations and to such approvals by any regulatory or
        governmental agency (including without limitation "no action" positions
        or the Securities and Exchange Commission) which may, in the opinion of
        counsel to the Company, be necessary or advisable in connection
        therewith.

        Without limiting the generality of the foregoing, no Awards may be
        granted under this Plan, and no Shares shall be issued by the Company,
        nor cash payments made by the Company, pursuant to or in connection with
        any such Award, unless and until, in each such case, all legal
        requirements applicable to the issuance or payment have, in the opinion
        of counsel to the company, been complied with. In connection with any
        stock issuance or transfer, the person acquiring the shares shall, if
        requested by the Company, give assurances satisfactory to counsel to the

<PAGE>

        Company in respect of such matters as the Company may deem desirable to
        assure compliance with all applicable legal requirements. The Company
        shall not be required to deliver any Shares under the Plan prior to (i)
        the admission of such Shares to listing or for quotation on any stock
        exchange or automated quotation system on which Shares may then be
        listed or quoted, and (ii) the completion and effectiveness of such
        registration or other qualification of such Shares under any state or
        federal law, rule or regulation, as the Committee shall determine to be
        necessary or advisable.

10.     Tax Withholding

        The Company shall have the right to withhold from amounts due
Participants, or to collect from Participants directly, the amount which the
Company deems necessary to satisfy any taxes required by law to be withheld at
any time by reason of participation in the Plan, and the obligations of the
Company under the Plan shall be conditional on payment of such taxes. The
Participant may, prior to the due date of any taxes, pay such amounts to the
Company in cash, or with the consent of the Committee, in Shares (which shall be
valued at their Fair Market Value on the date of payment); provided, however,
that notwithstanding the foregoing, in the case of a Reporting Person, no
election to use Shares for the payment of withholding taxes shall be effective
unless made in compliance with any applicable requirements of Rule 16b-3 under
the Exchange Act. There is no obligation under this Plan that any Participant be
advised of the existence of the tax or the amount required to be withheld.
Without limiting the generality of the foregoing, in any case where it
determines that a tax is or will be required to be withheld in connection with
the issuance or transfer or vesting of Shares under this Plan, the Company may,
pursuant to such rules as a Committee may establish, reduce the number of such
Shares so issued or transferred by Shares as the Company may deem appropriate in
its sole discretion to accomplish such withholding or make such other
arrangements as it deems satisfactory. Notwithstanding any other provision of
this Plan, the Committee may impose such conditions on the payment of any
Withholding obligation as may be required to satisfy applicable regulatory
requirements including, without limitation, Rule 16b-3 (or successor provision)
promulgated by the Securities and Exchange Commission.

11.     Administration of Plan

        (a)     The Committee. Except as otherwise provided in Section 8 hereof,
        the Plan shall be administered by the Committee, which shall be
        comprised of three or more members of the Board of Directors, each of
        whom shall be a "disinterested person" as defined in Rule 16b-3 (or
        successor provision) promulgated by the Securities and Exchange
        Commission. In the absence of specific designation by the Board of
        Directors, the Committee shall consist of those members of the Board of
        Directors who, from time to time, shall be "disinterested persons, " as
        so defined.

        (b)     Committee Action A majority of the members of the Committee at
        the time in office shall constitute a quorum for the transaction of
        business and any determination or action may be taken at the meeting of
        a majority vote or may be taken without a meeting by a written
        resolution signed by all members of the Committee. All decisions and
        determinations of the Committee (or the Board, in case of Non-Employee
        Direction Options) shall be final, conclusive and binding upon all
        Participants and upon all other persons claiming any rights under the
        Plan with respect to any Options. Members of the Board of Directors and
        members of the Committee acting under the Plan shall be fully protected
        in relying in good faith upon the advice of counsel and shall incur no
        liability except for willful misconduct in the performance of their
        duties.

        (c)     Authority. In amplification of the Committee's power and duties,
        but not by way of limitation, the Committee shall have full authority
        and power, subject to Section 8 hereof to:

                (i)     construe and interpret the provisions of the Plan and
                make rules and regulations for the administration of the Plan
                not inconsistent with the Plan;

                (ii)    decide all questions of eligibility for Plan
                participation and for the grant of Awards;

                (iii)   adopt forms of Agreements and other documents consistent
                with the Plan;

                (iv)    engage agents to perform legal, accounting and other
                such professional services as it may deem proper for
                administering the Plan; and

<PAGE>

                (v)     take such other actions as may be reasonably required or
                appropriate to administer the Plan or to carry out the Committee
                activities contemplated by other sections of this Plan.

        (d)     Indemnification. In addition to such other rights of
        indemnification as they may have as directors or as members Of the
        Committee, the Board of Directors and the members Of the Committee shall
        be indemnified by the Company against the reasonable expenses, including
        court costs and reasonable attorneys' fees, actually incurred in
        connection with the defense of any action, suit or proceeding, or in
        connection with any appeal therein, to which they or any of them may be
        a party by reason of any action taken or failure to act under or in
        connection with the Plan or any Award granted hereunder, and against all
        amounts paid by them in settlement thereof or paid by them in
        satisfaction of a judgment in any such action, suit or proceeding,
        except where such indemnification is expressly prohibited by applicable
        law.

12.     Effective Date

        The effective date of the Original Plan shall be May 10, 1989 (the date
it was approved by the Board of Directors). The Effective Date of this LoJack
Corporation Amended and Restated Plan shall be March 18, 1994 and with respect
to certain clarifying amendments, June 3, 1994, subject to shareholder approval
of the Plan within one year of that date. If the proposals to ratify the
amendment and restatement of the Company's Plan are not approved by the
shareholders within year of the Effective Date, the Original Plan, as previously
adopted by the Board of Directors and ratified by the shareholders, will remain
in full force and effect. No Awards to consultants or of Non-Employee Director
Options under Section 8 hereof will be made prior to the receipt of shareholder
approval of the Plan. Nothing contained in this Plan shall be deemed to limit or
adversely amend or modify the terms of, or rights of Participants under, Options
granted prior to the Effective Date in a manner which derogates from or
otherwise diminishes the terms of, or rights under, such Options.

13.     Amendment and Termination

        (a)     The Plan

                (i)     The Board of Directors may amend the Plan from time to
                time in its sole discretion; provided, however, that no such
                amendment shall, without the approval of the shareholders of the
                Company in accordance with the laws of the Commonwealth of
                Massachusetts and Section 422 of the Code and Rule 16b-3 under
                the Exchange Act: (A) change the class of persons eligible to
                receive Awards or otherwise materially modify the requirements
                as to eligibility for participation in the Plan; (B) increase
                the aggregate number of Shares with respect to which Awards may
                be made under the Plan; (C) materially increase the benefits
                accruing the Participants under the Plan; or (D) remove the
                administration of the Plan from the Committee or render any
                member of the Committee eligible to receive an Award (other than
                a Non-Employee Director Option) under the Plan while serving
                thereon. Any purported amendment in violation of these
                restrictions shall be void and of no effect. Furthermore, no
                amendment shall impair the rights of any Participant under any
                Award theretofore made under the Plan, without the Participant's
                consent.

                (ii)    Termination. The Board of Directors may suspend or
                terminate the Plan at any time. Upon termination of the Plan, no
                additional Awards shall be granted under the Plan; provided,
                however, that the terms of the Plan shall continue in full force
                and effect with respect to outstanding and unexercised Options
                granted under the Plan and Shares issued under the Plan.

        (b)     Awards. Subject to the terms and conditions and the limitations
        of the Plan, the Committee may in the exercise of its sole discretion
        modify, extend or renew the terms of outstanding Awards granted under
        the Plan, or accept the surrender of outstanding Awards (to the extent
        not theretofore exercised). Without limiting the generality of the
        foregoing, the Committee may in its discretion at any time accelerate
        the time in which any Option is exercisable, subject to compliance with
        the requirements of Rule 16b-3 (or successor provision) promulgated by
        the Securities and Exchange Commission. Notwithstanding the foregoing,
        however, no modification of an Award shall, without the consent of the
        Participant, impair any rights or obligations under any Awards
        theretofore granted under the Plan.

14.     Miscellaneous

        (a)     Employment. Neither the establishment of the Plan nor any
        amendments thereto, nor the granting of any Award under the Plan, shall
        be construed as in any way modifying or affecting, or evidencing any
        intention or understanding with respect to, the terms of the employment
        of or service of any Participant with, or the nomination

<PAGE>

        of any Participant to stand for election as a director by, the Company.
        No person shall have a right to be granted Awards or having been
        selected as a Participant for one Award, to be so selected again.

        (b)     Multiple Awards. Subject to the terms and restrictions set forth
        in the Plan, a Participant may hold more than one Award.

        (c)     Written Notice. As used herein, any notices required hereunder
        shall be in writing and shall be given on the forms, if any, provided or
        specified by the Committee. Written notice shall be effective upon
        actual receipt by the person to whom such notice is to be given;
        provided, however, that in the case of notices to Participants and their
        heirs, legatees and legal representatives, notice shall be effective
        upon delivery if delivered personally or three business days after
        mailing, registered first class postage prepaid to the last known
        address of the person to whom notice is given. Written notice shall be
        given to the Committee and the Company at the following address of the
        person to whom notice is given. Written notice shall be given to the
        Committee and the Company at the following address or such other address
        as may be specified from time to time.
                                LoJack Corporation
                                333 Elm Street
                                Dedham, Massachusetts  02026
                                Attention:  Compensation Committee

        (d)     Applicable Law; Severability. The Plan shall be governed by and
        construed in all respect in accordance with the laws of the Commonwealth
        of Massachusetts. If any provisions of the Plan shall be held by a court
        of competent jurisdiction to be invalid or unenforceable, the remaining
        provisions hereof shall continue to be fully effective.

        (e)     Compliance with SEC Regulations. It is the Company's intent that
        the Plan comply in all respects with Rule 16b-3 under the Exchange Act,
        and any successor rule pursuant thereto. If any provision of this Plan
        is later found not to be in compliance with Rule 16b-3, the provision
        shall be deemed void. All Option grants to, and all exercises of Options
        by, Reporting Persons under this Plan shall be executed in accordance
        with the requirements of Section 16 of the Exchange Act.

[As restated February 28, 2001, incorporating changes adopted that date and
changes made to section 4(a) by prior Amendments One, Two and Three.]

<PAGE>

                                 PLAN AMENDMENT
                               LOJACK CORPORATION
                               AMENDMENT NO. 1 TO
                              RESTATED AND AMENDED
                              STOCK INCENTIVE PLAN

        On December 10, 2001, the Board of Directors of LoJack Corporation
adopted Amendment No. 1 to the Restated and Amended Stock Incentive Plan as
amended and restated February 28, 2001.

        As a result, Section 6(d) of the Plan hereby is deleted and the
following language should be inserted:

                (d) Payment of Option Exercise Price. Upon the exercise of an
        Option, payment of the Exercise Price shall be made either (i) in cash
        (by a certified check, bank draft or money order), (ii) with the consent
        of the Committee (or the Board in the case of a Non-Employee Director
        Option) and subject to Section 6(e) hereof by delivering the
        Participant's duly executed promissory note and related documents, (iii)
        with the consent of the Committee (or the Board in the case of a
        Non-Employee Director Option) by delivering Shares already owned by the
        Participant which have been held for more than six months valued at Fair
        Market Value; provided that no Shares received upon exercise of that
        Option thereafter may be exchanged to pay the Option price for
        additional Shares within the following six months, or (iv) by a
        combination of the foregoing forms of payment.

        Except as set forth above, all of the terms and provisions of the Plan
shall and do remain in full force and effect, all without change.

        Certified this 11th day of December, 2001.

                                                  /s/ Thomas A. Wooters
                                                  ----------------------
                                                  Thomas A. Wooters
                                                  Clerk

<PAGE>

                                 PLAN AMENDMENT
                               LOJACK CORPORATION
                               AMENDMENT NO. 2 TO
                              RESTATED AND AMENDED
                              STOCK INCENTIVE PLAN

        On December 23, 2002, the Board of Directors of LoJack Corporation
adopted Amendment No. 2 to the Restated and Amended Stock Incentive Plan as
amended and restated February 28, 2001.

        As a result, Section 2(r) of the Plan ( the definition of "Participant")
hereby is deleted and the following new Section 2(r) hereby is inserted:

                (r) "Participant": A non-employee director, consultant, officer
        or other key employee of the Company, or of an Affiliate of the Company
        which has adopted the Plan, who has been granted an Award under the
        Plan.

        Except as set forth above, all of the terms and provisions of the Plan
shall and do remain in full force and effect, all without change.

        Certified this 23rd day of December, 2002.

                                                  /s/ Thomas A. Wooters
                                                  ----------------------
                                                  Thomas A. Wooters
                                                  Clerk

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