Document:

SHAREHOLDERS AGREEMENT, (ENGLISH VERSION)

  
 EXHIBIT 10rr(b).

  
 TRAQUEUR S.A. 
  
 SHAREHOLDERS AGREEMENT - DECEMBER 15, 2003 
  
 By and between the undersigned: 
  

	 	•	Mr. Stéphane Schmoll, residing 16, rue Descartes, 92190 Meudon, married under the legal system in France comprising property acquired after marriage;

  

	 	•	Mr. Marc Verdet, residing 6, rue de Seine, 75006 Paris, married under the legal system in France comprising property acquired after marriage; 

  
 Parties of the first part, 
  
 and 
  

	 	•	Mr. Jean-Jacques Schmoll, residing 141, rue de Longchamp, 75116 Paris, married under the marriage settlement comprising all present and future property;

  

	 	•	Mrs. Jacqueline Schmoll née Veaux, residing 141, rue de Longchamp, 75116 Paris, married under the marriage settlement comprising all present and future property,
represented by Jean-Jacques Schmoll; 

  

	 	•	Mrs. Evelyne Schmoll née Milesi, residing 16, rue Descartes, 92190 Meudon, married under the legal system in France comprising property acquired after marriage,
represented by Florence Kossoff; 

  
  

	 	•	Mr. Luc Chambon, residing 17, rue de l’Université, 75007 Paris, married under the legal system in France comprising property acquired after marriage;

  
  

	 	•	Mr. Jules Bernard Sussmann, residing 44, route de la Corniche, 74290 Veyrier du Lac, married under the ante-nuptial settlement providing for separate spouses’ estates;

  
  

	 	•	Mr. Jean Bousquet, residing 27, rue Saint-Ferdinand – 75017 PARIS, divorced, represented by Florence Kossoff; 

  

	 	•	Colebrook, a limited company with a capital of £ 1,000, whose registered office is located at 30 Herbert Street, Dublin 2, Republic of Ireland, listed in the Dublin
Trade and Companies Registry under no. 265396, represented by Stéphane Schmoll; 

  

	 	•	StockVal, a holding company with capital of US$ 30,000, whose registered office is located at Schout Bij Nacht Doormanweg 43, Curaçao, Dutch West Indies, listed in the
Curaçao Trade and Companies Registry under no. 47327, represented by             ; 

  

	 	•	Mr. Xavier Gérard, residing 21, boulevard Beauséjour, 75116 Paris, married under the legal system in France comprising interest in property acquired after
marriage; 

  

	 	•	Mr. Eric Gérard, residing 153, rue de l’Université, 75007 Paris, married under the legal system in France comprising interest in property acquired after
marriage, represented by             ; 

  

	 	•	Mr. Laurent Gérard, residing La Loriane, 78490 Gros Rouvre, married under the system comprising interest in property acquired after marriage, represented by
            ; 

  

	 	•	Mr. Laurent Marnier, residing 12, rue Charles Bernard Metzman, 92200 Neuilly-sur-Seine, married under the ante-nuptial settlement providing for separate spouses’
estates, represented by             ; 

  

	 	•	Mr. Jacques Gérard, residing 14, rue des Barres, 75004 Paris, married under the marriage settlement comprising all present and future property, represented by
            ; 

  

	 	•	Mrs. Anne-Marie Gérard née Bouriez, residing 14, rue des Barres, 75004 Paris, married under the marriage settlement comprising all present and future property,
represented by             ; 

  

	 	•	Mrs. Chantal Lahalle née Gérard, residing 15, rue Nicolas Couston, 78590 Noisy-le-Roi, married under the ante-nuptial settlement providing for separate
spouses’ estates, represented by Xavier Gérard; 

  

	 	•	Mr. Edouard Courtial, residing 85, impasse de Ramecourt, 60600 Agnetz, married under married under the system comprising interest in property acquired after marriage,
represented by             ; 

  

	 	•	Miss Christine Gérard, residing 13, boulevard Beaumarchais, 75004 Paris, of French nationality, born February 7, 1954 at Tulles (19000), single, represented by
            ; 

  

	 	•	Mr. Jacques de Panisse Passis, residing 184, avenue Victor Hugo, 75116 Paris, of French nationality, born February 4, 1956 in Paris (75015), married to Madame Sylvie Anne de
Panisse Passis, née Mortemart, under the ante-nuptial settlement providing for separate spouses’ estates, represented by             ; 

  

	 	•	Mr. Yann Houdré, residing 81, avenue de Ternes, 75017 Paris, of French nationality, born June 15, 1963 at Saint-Malo (35), single, represented by Xavier Gérard;

  

	 	•	CP Long Terme, a civil partnership with a capital of EUR 71,085, whose registered office is located at 4/6 Rond-Point des Champs Elysées, 75008 Paris, listed in the
Paris Trade and Companies Registry under no. D 422 383 158, represented by Jean-Jacques Schmoll; 

  

	 	•	Mr. Olivier Chevrillon, residing 15, rue Maître Albert, 75005 Paris, married under the marriage settlement comprising all present and future property, represented by
Jean-Jacques Schmoll; 

  

	 	•	Mercure Epargne Longue, an investment company with variable capital, whose registered office is located at 4/6 Rond-Point des Champs Elysées, 75008 Paris, listed in
the Paris Trade and Companies Registry under no. 438 848 848, represented by Jean-Jacques Schmoll; 

  

	 	•	Valerap Patrimoine, a civil partnership with a capital of SUR 95, listed in the Paris Trade and Companies Registry under no. 418 102 356 and having its registered office at
3, rue du Canivet, 75006 Paris, represented by Jean-Jacques Schmoll; 

  

	 	•	Indivision Tardy-Joubert, represented by Monsieur Philippe Tardy-Joubert, residing 26, avenue d’Eylau, 75016 Paris, married under married under the legal system in
France comprising property acquired after marriage; 

  

	 	•	Mr Roland de Malherbe, residing Le Bungalow des Ourtels, 80660 Pont de l’Arm, married under the ante-nuptial settlement providing for separate spouses’ estates,
represented by             ; 

  

	 	•	Mr Xavier Vergeade, residing 7, square de l’Hippodrome, 92210 Saint-Cloud, married under married under the legal system in France comprising property acquired after
marriage, represented by Stéphane Schmoll; 

  

	 	•	Mr. Fred Ullmo, residing 100, avenue du Président Kennedy, 75116 Paris, divorced, represented by Florence Kossoff; 

  

	 	•	Mrs. Florence Kossoff, residing 10 bis, rue Vieille Forge, 92170 Vanves, single,             ;

  

	 	•	Lixcam Inc., a company whose registered office is c/o Marcuard Cook & Cie, 7, rue des Alpes CP – CH 1211 Geneva, Switzerland, represented by Xavier Gérard;

  

	 	•	Mr. Hervé Ripault, residing 4, boulevard des Sablons, 92200 Neuilly-sur-Seine, married under the married under the ante-nuptial settlement providing for separate
spouses’ estates; 

  

	 	•	Mr. Pierre Dariot, residing 88, avenue du Parc, 91230 Montgeron, married under the legal system in France comprising property acquired after marriage, represented by
            ; 

  

	 	•	Mr. Philippe de Fontenay, residing 17-19, avenue Perronet, 92200 Neuilly-sur-Seine, married under married under the ante-nuptial settlement providing for separate
spouses’ estates, represented by Hervé Ripault; 

  

	 	•	Mr. Arthur de la Grandière, residing 15, rue Raynouard, 75016 Paris, married under the ante-nuptial settlement providing for separate spouses’ estates,
represented by Hervé Ripault; 

  

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

  

	 	•	Mr. Philippe Embiricos, residing Commonwealth House, 1-19, New Oxford Street, London WC1 A1NU, Great Britain, represented by Xavier Gérard; 

 

	 	•	Mr. Gilles Rouchie, residing 145, rue Saint Dominique, 75007 Paris, without an ante-nuptial settlement, married under the legal system in France comprising property acquired
after marriage, represented by Hervé Ripault; 

  

	 	•	Mr. Xavier Lépine, residing 158, rue de Grenelle, 75007 Paris, without an ante-nuptial settlement, married under the legal system in France comprising property
acquired after marriage, represented by Hervé Ripault; 

  

	 	•	Scorpion Nominees (BVI) Ltd, an international business company whose registered office is c/o Oracle Management, 85, Reid Street, PO Box HM 1008, Hamilton, HMDX, Bermuda,
represented by Xavier Gérard; 

  

	 	•	Mr. Neville Cook, residing 8, chemin du Clos, 1291 Commugny, CH 1223, Switzerland, married under married under the ante-nuptial settlement providing for separate
spouses’ estates, represented by Jean-Charles Charpentier; 

  

	 	•	Mr. Hugues Lamotte, residing 16, Victoria Road, London W85RD, Great Britain, without an ante-nuptial settlement, married under the legal system in France comprising property
acquired after marriage, represented by Xavier Gérard; 

  

	 	•	Charles Durand, residing 5, rue de la Pointe Robert, 95110 Sannois, married under the legal system in France comprising property acquired after marriage, represented by Jules
Bernard Sussman; 

  

	 	•	Mr. Charley Hannoun, residing 147, avenue de Malakoff, 75116 Paris, married under the legal system in France comprising property acquired after marriage, represented by
Florence Kossoff; 

  

	 	•	Mr. Dominique Fauve, residing 223, avenue Charles de Gaulle, 92200 Neuilly-sur-Seine, married under the legal system in France comprising property acquired after marriage,
represented by             ; 

  

	 	•	Monsieur Arnold Raicher, residing Dieweg 61 C, 1180 Brussels, Belgium, married under the legal system in France comprising property acquired after marriage, represented by
Stéphane Schmoll; 

  

	 	•	Monsieur Hervé Hirt, residing 58, rue du Val d’Or, 92150 Suresnes, married under the legal system in France comprising property acquired after marriage,
represented by Florence Kossoff; 

  

	 	•	Project Management Services, limited liability company with a capital of EUR 4,573.47, whose registered office is located at 77-79, avenue Raymond Poincaré, 75116
Paris, listed in the Paris Trade and Companies Registry under no. 389 137 845, represented by Florence Kossoff; 

  
 hereinafter, together with the M. Stéphane SCHMOLL and M. Marc VERDET, referred to as the “Group of Founders” or the “Founders”,
who hold all class A shares and act collectively but who shall not incur joint or several liability, 
  
 Parties of the second part, 
  

	 	•	LoJack Corporation, a company incorporated in the State of Massachusetts, registered under no. (FED ID) 04-2664794, represented by
            , 

  
 hereinafter referred to as “LoJack” 
  
 Party of the third part, 
  

	 	•	EADS Telcom, a French société par actions simplifiée (simplified limited company) with capital of € 29.392.309 whose registered office is
located at rue Jean-Pierre Timbaud, 78180 Montigny-le-Bretonneux, listed in the Versailles Trade and Companies Registry under no. 414 848 986, represented by Mr. Remy Blain, 

  
 Hereinafter referred to as “EADS” 
  

Party of the fourth part, 
  

	 	•	Tracker Network UK Limited, Otter House, Cowley Business Park, High Street, Cowley Huxbridge, Middlesex, UB8 2AD, Great Britain, duly represented by Stéphane Schmoll,

  
 Party of the fifth part, 
  
 The signatories of the third, fourth and fifth parts are hereinafter referred to as the
“Group of Industrial Investors” or the “Industrial Investors”, without joint liability between them, 
  

	 	•	Sigefi Ventures Gestion, a société anonyme (limited company) with capital of EUR 240,000, whose registered office is located at 139, rue Vendôme,
69006 Lyons, listed in the Lyons Trade and Companies Registry under the single identification number 420 732 661, acting in the name, on behalf and in its capacity as management company of the venture capital fund FCPR Siparex Ventures 1 and
the innovation investment funds FCPI ING (F) Actions Innovation 1, ING (F) Actions Innovation 2 Uni-Innovation 1 and also acting in the name, on behalf and in its capacity as management agent for the unlisted assets of the innovation
investment fund FCPI Indocam Innovation I, represented by Mr. Michel Faure, duly authorised for this purpose, 

  

	 	•	Siparex Croissance, a société in commandite par actions (stock partnership) with capital of EUR 67,712,325, whose registered office is located at 139 rue
Vendôme, 69006 Lyons, listed in the Lyons Trade and Companies Registry under the single identification number 312 056 641, represented by its manager Sigefi, a société par actions simplifiée (simplified limited
company) with a capital of EUR 1,322,704, whose registered office is located at 139 rue Vendôme, 69006 Lyons, listed in the Lyons Trade and Companies Registry under the single identification number 331 595 587, itself represented by Mr. Michel
Fauré, duly authorised for this purpose, 

  

	 	•	Siparex Développement, a société in commandite par actions (stock partnership) with capital of EUR 32,818,605, whose registered office is located
at 166 rue du Faubourg Saint Honoré, 75008 Paris, and whose sole identification number in the Paris Trade and Companies Registry is 378 213 375, represented by its manager Sigefi, a société par actions simplifiée
(simplified limited company) with a capital of EUR 1,322,704, whose registered office is located at 139 rue Vendôme, 69006 Lyons, listed in the Lyons Trade and Companies Registry under the single identification number 331 595 587, itself
represented by Mr. Michel Fauré, duly authorised for this purpose; 

  
 Parties of the sixth part, 
  

 The Signatories of the sixth part are hereinafter collectively referred to as the “Siparex Group”
without joint or several liability between them, 
  

	 	•	Crédit Lyonnais Private Equity, a société anonyme (limited company) with an Executive Board and a Supervisory Board, having a capital of EUR
8,000,000, whose registered office is located at 43-47, avenue de la Grande Armée, 75116 Paris, listed in the Paris Trade and Companies Registry under no. 428 711 196,acting in its capacity as management company of FCPR Crédit
Lyonnais Capital Développement 1 and of FCPI Crédit Lyonnais Innovation, represented by Mr. Roland Derrien, 

  
 Party of the seventh part, 
  

	 	•	BNP Paribas Développement, a société par actions simplifiée (simplified limited company) with a capital of EUR 68,000,000, whose registered
office is located 20, rue Chauchat, 75009 Paris, listed in the Paris Trade and Companies Registry under no. 348 540 592, represented by Mr. Denis Bougnoux, 

  
 Party of the eighth part, 
  

	 	•	Viveris Management, a société par actions simplifiée (simplified limited company) with capital of EUR 168,700, whose registered office is located
6, allée Turcat Méry, 13008 Marseilles, listed at the Marseilles Trade and Companies Registry under no. 432 544 773, represented by either Elisabeth Bertelli or Marc Villecroze-Abdelouhab, acting in the name, on behalf and in its
capacity as management company of the innovation investment fund Innoveris Compartiment 1 and Innoveris 3, 

  
 Party of the ninth part, 
  

	 	•	INNOVEN PARTENAIRES, a société anonyme (limited company) with an executive board and a supervisory board, with a capital of EUR 300,000 euros, whose
registered office is located at 10 rue de la Paix, 75002 Paris, listed in the Paris Trade and Companies Registry under no. 418 248 019 R.C.S., represented by M. Thomas Balland, duly empowered for the purposes of the present, acting on behalf and in
its capacity as management company of the investment funds Innoven 2000 FCPI N° 4, Innoven 2001 FCPI N° 5, Innoven 2002 FCPI N°6, FCPI Poste Innovation, FCPI Poste Innovation 2 and FCPI Poste Innovation 3, 

  
 Hereinafter referred to as « Innoven » 
  
 Party of the tenth part, 
  

	 	•	A PLUS FINANCE, a société anonyme (limited company) with a capital of EUR 72,000 whose registered office is located at 5, rue de Castiglione, 75001
Paris, listed in the Paris Trade and Companies Registry under no. 420 400 699, represented by M. Niels Court-Payen, acting on behalf and in its capacity as management company of the investment funds A PLUS INNOVATION FCPI and A PLUS INNOVATION 2
FCPI, 

  
 Hereinafter referred to as « A Plus »

  

 Party of the eleventh part, 
  
 The signatories of the sixth to the eleventh parts are hereinafter referred to as the “Group of Financial Investors” or the
“Financial Investors” without joint or several liability between them, 
  
 The signatories of the third to the eleventh parts, which hold all class B, C and D shares, are hereinafter collectively referred to as the “Group of Investors” or the “Investors”, without joint or several
liability between them, 
  
 The signatories of the first to eleventh parts being
hereinafter referred to jointly as the “Signatories”. 
  
 THE
FOLLOWING PARTY ALSO INTERVENES IN THIS AGREEMENT 
  

	 	•	Traqueur, a société anonyme (limited company) with capital of EUR 1,175,130, whose registered office is located at 17, Place de la Résistance,
92130 Issy Les Moulineaux, listed in the Nanterre Trade and Companies Registry under the single identification no. 412 027 492, represented by Marc Verdet, chairman of the Management Board, 

  
 hereinafter referred to as “Traqueur” or the “Company”.

  
 RECITALS: 
  
 The Company is the French Licensee of the American group LoJack, world leader of an
electronic system designed to track stolen vehicles rapidly. LoJack granted this License on 1st September 1997 (a
copy of this License agreement amended by an amendment dated December 15th 2003 (hereinafter referred to as the
“License Agreement”) can be found in Appendix A). 
  

 The Company was incorporated in 1997 and since, has carried out three fund raisings in November 2001, February 2003 and
July 2003. 
  
 In order to allow the Company to continue its development and to
finance different projects under development such as: 
  

	 	•	marketing the markers to be installed in the vehicles to be protected; 

  

	 	•	marketing, in the form of annual subscriptions, a remote police-operated monitoring, location and warning service to recover stolen vehicles; 

  

	 	•	carrying out marketing actions and establishing partnerships designed to facilitate the growth of the Company’s business. 

  
 The supervisory board of the Company has approached the Signatories which were part of the
precedent fund raising and also Innoven and A Plus. 
  
 The Company has issued for
the benefit of some of the Signatories (including Innoven and A Plus): 
  

	 	•	29.520 D preferred Shares of € 15.00 nominal value at a subscription price of € 86.72 per share, for a global amount of € 2,559,974.40, premium comprised, to each
share being attached a share warrant; 

  

	 	•	44.280 convertible bonds, each bond being convertible in D preferred share with a share warrant attached to it, at a subscription price of € 86.72 per convertible bond and for
a global amount of € 3,839,961.60, 

  
 hereafter referred to as
the “Operation”. 
  
 Prior to the completion of the
Operation, on December 15, 2003, the share capital of the Company was divided as follows (the « fully diluted » column being calculated (i) after the exercise of the 2.378 share warrants issued on November 1999 at an
exercise price of € 152 and expiring on November 2004 (ii) after the transfer to the Company for purpose of cancellation of 353 shares warrants issued on October 2001, expiring on October 2006 at an exercise price of € 455 and (iii) after
the waiver to their rights by the beneficiaries of the 780 special stock-options, called “BSPCE”, issued on October 2001, expiring on October 2006 at an exercise price of € 455) : 
  

											
	 Shareholders

	  	Number of
shares

	  	Stake
holding %

	 	 	 Number of
shares
 (« fully
diluted »)

	  	 Stake holding %
 (« fully diluted »)

	 
	 J-Jacques et Stéphane Schmoll
	  	4.365	  	5,57	%	 	5.302	  	6,57	%
	 Autres
	  	25.493	  	32,54	%	 	26.734	  	33,12	%
	 Total Group of Founders
	  	29.858	  	38,11	%	 	32.036	  	39,69	%
	 LoJack Corp..
	  	13.361	  	17,05	%	 	13.361	  	16,55	%
	 EADS
	  	4.230	  	5,40	%	 	4.430	  	5,49	%
	 Tracker Network UK
	  	0	  	0,00	%	 	0	  	0,00	%
	 Total Group of Industrials
	  	17.591	  	22,45	%	 	17.791	  	22,04	%
	 Crédit Lyonnais AM
	  	7.922	  	10,11	%	 	7.922	  	9,81	%
	 BNP Paribas Dév.
	  	1.785	  	2,28	%	 	1.785	  	2,21	%
	 Groupe Siparex
	  	13.936	  	17,79	%	 	13.936	  	17,26	%
	 Innoveris
	  	7.250	  	9,25	%	 	7.250	  	8,98	%
	 Total Group of Investors
	  	30.893	  	39,43	%	 	30.893	  	38,27	%
	 TOTAL
	  	78.342	  	100,00 	%	 	80.720	  	100,00	%

  

 After the completion of the Operation and the entrance to the capital of Innoven and A Plus, the
share capital of the Company is divided as follows (the « fully diluted » column being calculated (i) after the exercise of the 2.378 share warrants issued on November 1999 at an exercise price of € 152 and (ii) after the
exercise of a new portion of 12,000 share warrants/special stock-options/normal stock-options which issuance has been authorized by the December 15th general meeting of the shareholders in favor of managers of the Company or qualified persons cooperating with the Company and (iii) prior to the conversion of the CB. 
  

											
	 Shareholders

	  	Number of
shares

	  	 Stake holding
 %

	 	 	 Number of shares
 (« fully diluted »)

	  	 Stake holding
%
 (« fully
diluted »)

	 
	 Stéphane Schmoll
	  	 	  	 	 	 	 	  	 	 
	 Marc Verdet
	  	0	  	0,00	%	 	0	  	0,00	%
	 Autres
	  	25.493	  	 	 	 	26.734	  	 	 
	 Total Group of Founders
	  	29.858	  	 	 	 	32.036	  	 	 
	 LoJack Corp
	  	 	  	 	 	 	 	  	 	 
	 EADS
	  	4.230	  	 	 	 	4.430	  	 	 
	 Tracker Network UK
	  	0	  	 	 	 	0	  	 	 
	 Total Group of Industrials
	  	17.591	  	 	 	 	17.791	  	 	 
	 Crédit Lyonnais AM
	  	7.922	  	 	 	 	7.922	  	 	 
	 BNP Paribas Dév.
	  	1.785	  	 	 	 	1.785	  	 	 
	 Groupe Siparex
	  	 	  	 	 	 	13.936	  	 	 
	 Innoveris
	  	7.250	  	 	 	 	7.250	  	 	 
	 Innoven
	  	 	  	 	 	 	 	  	 	 
	 A Plus
	  	 	  	 	 	 	 	  	 	 
	 Total Group of Investors
	  	30.893	  	 	 	 	30.893	  	 	 
	 New stock-option plan
	  	 	  	 	 	 	 	  	 	 
	 TOTAL
	  	78.342	  	100,00 	%	 	80.720	  	100,00	%

  
 The Signatories have unanimously
decided to terminate the November 26th 2001 shareholders agreement as amended by the November 27th 2001 amendment and all other agreements existing between them excepted for the memorandum of understanding entered into
between certain holders of class A shares. 
  
 The New Investors has decided to
participate to the Operation after the presentation and on the basis of the Company development project (the “Business Plan”) a copy of which appears in Appendix B attached hereto. The Business has been elaborated by
the Company and shall be executed under their control with a 3 years liquidity objective (by selling of listing of the Company) as from January 1st 2004. 
  
 Mr. Stéphane
SCHMOLL and Mr. Marc VERDET recognized that the investment of the New Investors, their number of shares and voting rights are directly linked to the participation of Mr. Stéphane SCHMOLL and 

  

 
Mr. Marc VERDET in the capital of the Company and in their implication in the management and also the expansion of the Business Plan and the composition of
the share capital and the management bodies of the Company. 
  
 DECISIVE
ELEMENTS OF THE OPERATION: 
  
 The New Investors have agreed to offer their
contribution in consideration of the following decisive elements: 
  
 1. The
stated intention of Mr. Stéphane SCHMOLL and Mr. Marc VERDET to pursue ambitious growth and to make the Company a leading national seller of systems for tracing stolen vehicles. 
  
 2. Mr. Stéphane SCHMOLL and Mr. Marc VERDET’s actual presence in the management team of the Company and their undertaking to
devote their professional activity exclusively to the expansion of the Company and its subsidiaries. 
  
 3. Existence of the License Agreement between LoJack and Traqueur providing for the right to market the Traqueur system for tracing stolen vehicles in France. 
  
 4. Agreement of the Group of Founders to let the Investors contribute actively to the
expansion of the Company and any companies under its control and to grant them a pre-emptive right over new investors to make future financial contributions to the Company or its existing or future subsidiaries. 
  
 NOW THEREFORE IT HAS BEEN AGREED AS FOLLOWS: 
  
 ARTICLE 1 - PURPOSE 
  
 The purpose of the Agreement is to set out: 
  

	 	•	the conditions on which the reciprocal pre-emptive right may be exercised by each Signatory in the event of Assignment of Transferable Securities belonging to other Signatories;

  

	 	•	the terms and conditions governing the right of withdrawal of the Investors, in the case of Assignment of Control or non-compliance by Mr. Stéphane SCHMOLL and Mr. Marc
VERDET of their undertaking to preserve the decisive elements on which the Investors have based their investment. 

  
 ARTICLE 2 – DEFINITIONS 
  
 The capitalized words in the body of the text are defined as follows: 
  

			
	PF	  	Means the 29.520 D preferred shares issues by the December 15th 2003 general shareholders meeting or resulting from the exercised of (i) the conversion of the CB or (ii) the exercised of the
Ratchet Warrants
		
	Shareholder(s)	  	Means one or more shareholders of the Company.
		
	Shares	  	Means the shares issued or to be further issued by the Company with a nominal value of € 15 per share.

  

			
		
	Activity	  	Means the Company’s activity, i.e. expanding sales on the French market of the LoJack system for locating stolen vehicles.
		
	Ratchet Warrants	  	Means the Warrants attached (i) to the PF issued during the Extraordinary General Assembly dated 15 December 2003 and (ii) the CB.
		
	Diluted Capital	  	Means the amount of the Company’s capital after exercise or conversion of all rights and transferable securities entitling their holder, immediately or in the future, to shares in the
Company (except all the warrants, specific stock-options or stock-options), on the understanding that, to determine the amount of the Diluted Capital as long as the CB have not been converted or redeemed, the CB shall be deemed convertible at
a ratio of 1.667 share per CB.
		
	Change in Control	  	 Means:
  
 1) either any Assignment giving rise to direct or indirect holding, immediate or deferred, by a sole Shareholder, by several Shareholders under Common Control or by one or several Third Parties acting along or
together as defined under Article L.233-10 of the French Commercial Code, of more than 50% of the Company’s capital or voting rights;
  
 If majority holding is not immediate, the crossing of this threshold is calculated taking into account the potential dilution which could result from the exercise of all
rights contained in the Assignment Plan and entitling, through conversion, subscription rights, exchange or otherwise to a share in the Company’s capital, or to rights or results. Excluded from this calculation are equity warrants (whether
autonomous or part of compound securities), which allow subscription to Shares held by them, but whose conditions for exercise are not fulfilled at the date of the calculation.
  
 2) or else the crossing by an Investor or the threshold of 33.33% of the Company’s capital and voting rights by an Investor (other than
through conversion of OCABSA bonds (bonds convertible or exchangeable into new shares).

		
	Control (noun)	  	Means the direct or indirect control, in the meaning of articles L 233-3 of the French Commercial Code. Two business entities are considered to be under common control (“Common
Control”) when one of them controls the other, or both are subject to the direct or indirect Control of the same individual or legal entity or of a same group of individuals or legal entities acting together).
		
	Control, to (verb)	  	Means exercising or holding Control.
		
	Property Rights	  	Mean the elements and intellectual property rights held by the Company, inter alia the License for the LoJack system, own patents, manufacturing and industrialization knowledge and
know-how, and software.

  

			
		
	Manager of the Agreement	  	Means the natural or legal person appointed irrevocably by the Signatories as their representative, for themselves and their assigns, and charged, in their common interest, with receiving and
forwarding all transfer orders, giving all instructions to the institution keeping the account and, in general, watching over the correct performance of the Agreement and making all arrangements that are useful or necessary for this
purpose.
		
	Siparex Group	  	Means, collectively, Siparex Associés, Sigefi, Sigefi Ventures Gestion, Siparex Développement, and Siparex Croissance, and any company Controlled by one of these five companies
and any fonds commun de placement (mutual fund) whose assets are managed by one of these five companies or by a company Controlled by one of these five companies.
		
	D Investors	  	PF holders.
		
	Days	  	Means the unit used to calculate times in the meaning of the Agreement, which corresponds to a calendar day. One day in months other than July and August is calculated as one Day. One day in
July and August is calculated as half a Day. All times are based on full days and are calculated from the moment of receipt of notification (based on the postal stamp).
		
	LoJack License	  	Means the License granted September 1, 1997 (amended by amendment no. 1 of November 6, 2001 and by amendment no. 2 of December 15, 2003) by LoJack to the Company and dealing with the system
designed to trace stolen vehicles.
		
	New Investors	  	Means together Innoven and A Plus.

  

			
		
	OCABSA Bonds	  	Means the 44,280 bonds convertible into Priority “D” Shares with attached Ratchet Warrants, the issue of which was decided by the general meeting of December 15,
2003.
		
	Agreement	  	Means this Shareholders agreement.
		
	Interest	  	Means the percentage representing, at the time of the calculation, the number of Shares and OCABSA Bonds (bonds convertible or exchangeable into new shares) held by a Shareholder, compared to
the total number of Shares or OCABSA Bonds issued by the Company, without taking into account Transferable Securities other than the Shares and the OCABSA Bonds, given that each OCABSA Bonds is supposed to enable, further the conversion, the
possession of 1,667 Company shares
		
	 Minimum Qualified
 Interest
	  	 Means the Interest resulting from the addition of the interests of the Parties accepting the Offer to Buy 100% (as set out in Article
5.1.2 below):
  
 (i)     exceeds sixty seven percents (67%) of the Transferable Securities constituting, or of the Transferable Securities (excluding the Ratchet Warrants), and
  
 (ii)    provided that (if the
Offer to Buy 100% is proposed before December 15, 2008) this 67% comprises the Shares held by Innoven, otherwise the Minimum Qualified Interest will be considered null and void,
  
 (iii)  however, the precedent set forth by paragraph (ii) does not apply in case the
Offer to Buy 100% grants to the D Investors an yearly internal rate of return of 50%.
  
 For the purposes of the present definition, in the event that a Shareholder transfers OCABSA Bonds together with its Shares in the course of the Offer to Buy 100%, these OCABSA Bonds will be taken into account for the calculation of the
Minimum Qualified Interest described above and each transferred OCABSA Bond will be presumed to be equal to 1,667 Priority Shares.

		
	 Representative of the
 Group of Founders
	  	Means one of the members of the Group of Founders in charge, in the common interest of the members of this group, of representing it and notably to receive and forward all
notifications.
		
	Signatory / Party	  	Means any of the original signatories of the Agreement and any party who accepts the Agreement.
		
	COMPANY	  	Means Traqueur.
		
	Third Party	  	Means any person or entity not a Signatory of the Agreement

  

			
		
	Assignment	  	Means any transaction, whether or not for a consideration, resulting in transfer of full ownership, the legal ownership or the beneficial ownership of Transferable Securities, including but
not limited to conveyances, exchanges (including in the case of a merger or spin-off), contributions to a company, donations, partitions of communal estates or successions, allocations and auctions.
		
	Transferable Security	  	 Means:
  
 •      any security representing a share in the capital issued or to be issued by the Company
or a voting right in the Company, or entitling its beneficiary, immediately or subsequently, by conversion, exchange, redemption, presentation of a warrant or in any other way, to the allotment of a security representing a share in the capital
issued by the Company or a voting right in the Company,
  
 •      any warrant or right entitling its beneficiary to the subscription or allotment of a Transferable Security as defined herein,
  
 and, more generally, any security referred to in chapter VIII, Title II, Book II of the new
French Commercial Code.

  
 ARTICLE 3 – PRE-EMPTIVE RIGHT
IN THE CASE OF ASSIGNMENT OF TRANSFERABLE SECURITIES 
  
 Each of the
Signatories grants the other Signatories, on the terms of Section 3-2 and subject to the exceptions provided for in Section 3-1, without prejudice to the provisions in Articles 3bis and 4, a pre-emptive
right in the event that he becomes the beneficiary of an offer to buy his Transferable Securities which he would be willing to accept (hereinafter referred to as the “Assignment Plan”). 
  
 The Benefit of the pre-emptive right is subject to the holding by a Signatory (other than an
Investor) willing to raise or benefit of this right of a number of Shares representing 1.5% of the Share capital and the voting rights of the Company. 
  

 3-1 Case in which Assignment of Transferable Securities is free 
  
 The pre-emptive right stipulated in this article shall not apply to any Assignment of
Transferable Securities: 
  

	 	•	between members of the Group of Founders, subject to the provisions in Article 4, on the understanding that any Assignment of Transferable Securities between members
of the Group of Founders shall be subject to a pre-emptive right in favor of Mr. Stéphane SCHMOLL and Jean-Jacques SCHMOLL only with the entitlement to substitution in favor of any shareholder in the Group of Founders, in accordance with the
principles of Article 3.2 below, 

  

	 	•	by a member of the Group of Financial Investors to a SICAV (unit trust)or fonds commun de placement (mutual fund) governed by the Monetary and Financial Code which it directs
or manages or which is managed by the same company, in which case such SICAV or FCP shall automatically be subject to the commitments resulting from the Agreement, 

  

	 	•	by a member of the Group of Financial Investors to a company by which it is Controlled, a company which it Controls or a company under the same Control, 

  

	 	•	by a member of the Group of Financial Investors organized under the form of an investment fund which is Shareholder, to the benefit of its members in case if dissolution;

  

	 	•	by a company or fund of the Siparex Group to another company or fund of the Siparex Group, 

  

	 	•	by a fund managed by Crédit Lyonnais Private Equity for the benefit of companies or other investment funds managed by Crédit Lyonnais Private Equity or by management
companies Controlled by it or by which it is Controlled and, more generally, to companies or investment funds Controlled or managed by a structure of the group to which Crédit Lyonnais Private Equity belongs or by a structure of the group of
shareholders Controlling the latter, 

  

	 	•	by a member of the Group of Industrial Investors to a company by which it is Controlled, a company which it Controls or a company under the same Control, subject to prior permission
from the Supervisory Board, which may not be withheld without valid grounds, 

  

	 	•	between CP Long Terme and (i) a company by which it is Controlled, a company which it Controls or a company under the same Control or (ii) a company which is directly or indirectly
controlled, jointly or independently, by Mr. Cyrille Chevrillon, Ms. Nathalie Bovar and Mr. Nicolas Trabouta, 

  

	 	•	by FCPI Innoveris in favor of a company or other funds managed by Vivéris Management, or a company which controls it or which it controls and, more generally, to companies or
funds controlled or managed by the Caisse d’Epargne group, 

  

	 	•	by LoJack to the benefit of: 

  

	 	(i)	a company by which it is Controlled, a Company which it Controls or a company under the same Control subject to prior permission from the Supervisory Board, which may not be
withheld without valid grounds, 

  
 OR 

 

	 	(ii)	to a Third Party, provided that: 

  

	 	(a)	this Assignment occurs within the context of completing the assignment of all or substantially all of the assets and liabilities of LoJack Corporation including the patents which
are covered by the License Agreement, together with all other intellectual or industrial property which may further be insert in the scope of the License Agreement; 

  

	 	(b)	the Assignment is made to the benefit of a sole assignee; 

  

	 	(c)	this Assignment shall not terminate or amend the terms and conditions of the License Agreement, and 

  

	 	(d)	LoJack notifies to the Chairman of the Management Board, prior to completing the contemplated Assignment, the documents showing that the requirements set out in Sections (ii)
(a) to (ii) (c) above have been satisfied. 

  
 For the
purposes of Section (ii)(a) above, “substantially” shall mean that (i) at least 90% of the balance sheet net value of the assets and liabilities have been assigned within the context of that deal, and that (ii) the
assets and liabilities not assigned are neither critical to the business of LoJack nor in contradiction with the conditions set out in Sections (ii)(a) to (ii)(c). 
  

	 	•	carried out in application of the provisions in Article 6 below. 

  

However, any Assignment Plan referred to in this article shall be reported ex-post on the conditions stipulated in Section 3-2-1 below. 
  

 3-2 Organization of pre-emptive right 
  
 3-2-1 Notification of Assignment Plan 
  
 Any Assignment Plan for Transferable Securities held by a Signatory shall be reported to the other Signatories (or to their representative),
with mention of: 
  

	 	•	the number and nature of the Transferable Securities whose Assignment is planned, 

  

	 	•	the last name, first name and domicile, or the company name and registered office of each beneficiary of the Assignment and, in the case of a legal entity, the company name and the
registered office or the name and address of the legal entities or individuals by whom it is controlled, if any, 

  

	 	•	the price or value determined for the transaction, 

  

	 	•	the terms of payment of the price and all other terms of the transaction, including, in the case of payment in kind, the number, nature and valuation of the assets given in
exchange, 

  

	 	•	the amount in the assignor’s current account on the Company’s books at the notification date. 

  
 This notification shall be accompanied by a duly certified copy of the buyer’s purchase agreement, which shall expressly mention the
offered price and the buyer’s undertaking to comply with the Agreement. 
  
 Any incomplete notification shall be considered void. 
  
 3-2-2 Terms of exercise of pre-emptive right 
  
 If the
Assignment Plan does not fall within the sphere of Section 3-1 above, the undersigned, as stipulated below, shall enjoy a pre-emptive right with the following priority: 
  

	a)	In the case of Assignment by a member of the Group of Founders: 

  

	 	•	with first priority, each member of the Group of Founders other than the Assignor, 

  

	 	•	with secondary priority, each Investor. 

  
 b) In the case of Assignment by a member of the Group of Investors: 
  

	 	•	with first priority, each Investor other than the Assignor, 

  

	 	•	with secondary priority, each Founder. 

  
 Each beneficiary of the pre-emptive right, as defined above, shall have forty-five (45) Days to give notice whether he intends to exercise his pre-emptive right.

  
 If no notice is received during this period, the Assignment may take place on
the announced terms. 
  

 If one or more of the beneficiaries of the pre-emptive right give notice of their intention to use their pre-emptive
right, said right may only be exercised if their aggregate requests cover all Transferable Securities whose Assignment is planned. 
  
 In this case, the Assignment of the Transferable Securities shall take place in favor of the parties exercising their pre-emptive right in the priority stipulated in the
first paragraph above and in the following proportions. 
  
 Pre-emption requests
shall be filled in the following sequence and within the following limits: 
  

	a)	First, requests from beneficiaries of the pre-emptive right with first priority in proportion to their primary rights as existing shareholders. This right shall be exercised in
proportion to the number of Shares held by each party exercising his pre-emptive right with first priority compared with the total number of Shares held by all parties exercising their pre-emptive right with first priority. 

 
 Then, if not all Transferable Securities whose Assignment is planned are
pre-empted by exercise of their primary rights and if the pre-emption request of a party exercising his pre-emptive right with first priority is not entirely satisfied, up to the amount of his request, in proportion to his subsidiary right. This
right shall be exercised in proportion to the number of Shares held by him compared with the total number of Shares held by all parties exercising their pre-emptive right with first priority whose pre-emption request was not entirely satisfied by
exercise of their primary rights, and so on; any remaining share fraction shall be allocated to the party with the highest average. 
  

	b)	Finally, if the Transferable Securities whose Assignment is planned are not all pre-empted by the exercise of the rights stipulated in Section a) above, requests from
beneficiary of the subsidiary pre-emptive right shall be served in proportion to their primary right and subsequently their subsidiary right. 

  
 It is moreover specified that the number of Shares belonging to a party exercising his pre-emptive right shall be determined on the basis of the Shares, regardless of
their class, held by him on the day of the notification, as well as the shares, regardless of their class, created subsequently as part of the Transferable Securities owned by him on this date (excepting the Ratchet Warrants), given that for purpose
of calculation, each OCABSA Bonds will be considered to enable, by conversion, the possession of 1,667 Company Shares. 
  
 Notification of the exercise of this right shall confirm the sale to the parties exercising their pre-emptive right at a price equal to the price proposed by the
interested Third Party or the price based on the terms of the contemplated Assignment. However, in the event that the price proposed by the interested Third Party is not paid in cash and that the beneficiaries of the pre-emptive right do not agree
on the proposed price, the price shall be determined by an expert on the terms set out in Article 10-3 below. The transfer orders and all other necessary documents shall be delivered to the assignees within thirty (30) Days of
notification or within thirty (30) Days of delivery of the expert’s report, as applicable. 
  
 Moreover, those signatories who have exercised their pre-emptive right shall be obliged to acquire the assignor’s current accounts, each in proportion to the number of Transferable Securities acquired by
exercising his pre-emptive right. If the pre-emptive right is limited to a part of the Shares held by the assignor (in the event that the latter assigns only part of its Shares), the signatories who have exercised their pre-emptive right shall only
be obliged to acquire the assignor’s current accounts in proportion to the number of Shares acquired compared with the assignor’s total number of Shares, it being understood that the pre-emptive right may be validly exercised only if the
signatories having 

  

 
exercised their pre-emptive right acquire the totality of the current account to be assigned at the same time as the Shares. 
  
 3-3 Restrictions on pledging of Transferable Securities 
  
 To allow the Signatories to exercise their pre-emptive right in the event that a secured
creditor exercises his pledge, each of the Signatories whose Transferable Securities are pledged, shall first arrange for the creditor: 
  

	 	•	to waive judicial assignment of the pledged Transferable Securities in his favor, 

  

	 	•	and, if he demands an auction of these securities, to include, in the auction specifications, a clause allowing the beneficiaries of the pre-emptive right to substitute themselves
for the winning bidder during a period of fourteen (14) Days from the auction date. 

  
 These restrictions on the rights of a secured creditor shall be mentioned in the Shareholders’ accounts. 
  
 ARTICLE 3A – JOINT AND PROPORTIONAL RIGHT OF ASSIGNMENT 
  
 Without prejudice to the stipulations in Articles 3 and 4 regarding the pre-emptive right and the withdrawal right of the Investors, particularly in the
event of the free assignment provided for in Article 3.1, the Signatories shall not assign all or part of their Transferable Securities to a Third Party purchaser without first offering to D Investors sell to a number of Transferable
Securities held by them, at the same price, calculated on the basis of the following formula: 
  
 N = N’ x A/B 
  

			
	 Where
	  	N = Number of Transferable Securities in the Company that may be sold by each D Investor.
		
	 	  	N’ = Total number of Transferable Securities in the Company that the Signatory(ies) intend to sell.
		
	 	  	A = Total number of Transferable Securities resulting from the Interest of the D Investor having exercised their joint and proportional right to sell.
		
	 	  	B = Total number of Transferable Securities belonging to the assignor Signatory(ies) and to the D Investors having exercising their joint right to sell.

  
 N shall be rounded off to the nearest
whole number. 
  
 Consequently, before selling Transferable Securities, the
Assignor shall inform each D Investor by registered letter with proof of delivery, of the number of Transferable Securities it intends to sell, the price, the sales terms and buyer’s name, in pursuant to Article 3-2-1. 

 
 The D Investor shall have forty-five (45) Days from receipt of the above-mentioned
notification to announce, by recorded letter with advice of delivery to the Assignor, whether or not they intend to sell the Transferable Securities in the same proportion as the Assignor. It shall be incumbent on the Assignor to arrange for its
buyer to purchase in this proportion the Transferable Securities held by the D Investor having exercised their joint and proportional right to sell. 
  

 In the event that the Signatories sell Transferable Securities in violation of the provisions in this article, these
Signatories shall be jointly and severally responsible for acquiring the Transferable Securities the D Investors would have been entitled and wished to assign pursuant the above provisions. 
  
 It is expressly specified that, in the event that the sale of the Transferable Securities
leads or may lead to a Change in Control, the provisions of Article 4 relating to the right of withdrawal in the event of Change in Control shall apply. 
  
 ARTICLE 4 – CHANGE IN CONTROL OF THE COMPANY 
  
 4-1 Right of withdrawal in the event that Control of the Company is assumed by a Third Party or a Shareholder further to Assignment of
Transferable Securities 
  
 Each Signatory undertakes not to Assign
Transferable Securities, whether alone or together with other Signatories, if this would or could Transfer Control of the Company in one or more steps to a Third Party or to a Shareholder (hereinafter referred to as the “Buyer”)
without permitting the other Signatories to withdraw from the Company. 
  
 For the
purpose of determining Assignment of Control of the Company, the following shall be taken into account: 
  
 first, the Transferable Securities held or to be held by the Buyer, any company which it Controls, by which it is Controlled or which is Controlled by the
same company as the Buyer and by any person acting in concert with the Buyer in the meaning of Article L 233-10 of the French Commercial Code, and 
  
 Shares and shares issued, immediately or in the future, by virtue of the Transferable Securities issued. 
  
 4-1-1 Notification of Assignment Plan 
  
 Consequently, any Signatory, acting alone or jointly with other Signatories,
who contemplates the Assignment of Transferable Securities on the above terms shall notify the other Signatories (hereinafter referred to as the “Beneficiaries”) on the terms stipulated in Section 3-2-1. 
  
 This notification shall be accompanied by a duly certified copy of the
interested Third Party’s purchase agreement, which shall expressly mention the offered price as well as the terms and conditions of the offer. 
  

 4-1-2 Exercise of the pre-emptive right or the withdrawal right 
  
 Each Beneficiary shall have forty-five (45) Days to inform the other
Signatories wishing to proceed, alone or jointly, with the other Signatories (hereinafter referred to as the “Assignor”) with an Assignment of Transferable Securities in the Company, of its intention: 
  

	 	•	to exercise its pre-emptive right on the terms of Section 3-2-2 above, 

  

	 	•	or to withdraw from the Company. 

  
 If no notification is received during this period, the Assignment Plan may be carried out on the terms reported to the Beneficiaries. 
  
 In the event that one or more Investors announce their intention to withdraw
from the Company, the Assignor shall acquire or arrange the acquisition of all Transferable Securities and held by the Beneficiaries at a price equal to the price proposed by the interested Third Party (notwithstanding the provisions of
Article 5.2) or a price based on the terms of the contemplated Assignment, excluding any asset/liability guarantee, subject to the terms of Article 11 below. 
  
 The transfer orders and all other necessary documents shall be delivered to the assignees within thirty (30) Days from the
notification. 
  
 In the event that, during the twelve (12)
months preceding the Change in Control, the Assignor have sold Transferable Securities to the interested Third Party (or to any company which it Controls, by which it is Controlled or which is Controlled by the same company as the company
Controlling the interested Third Party) at a higher price than asked for the Assignment resulting in a Change in Control, the sales price of the Transferable Securities belonging to Beneficiaries who have exercised their withdrawal right shall be
equal to the sale price, weighted by the number of Transferable Securities sold, of all Transferable Securities assigned in connection with the Change in Control and those assigned during the previous twelve (12) months by the Assignors, as
explained above. 
  
 Moreover, in the event that, within nine (9)
months after the date of the Assignment resulting in a Change in Control, the Assignor were to assign Transferable Securities to the same interested Third Party (or to any company which it Controls, by which it is Controlled or which is Controlled
by the same company as the company Controlling the interested Third Party) at a higher price than that paid to the Beneficiaries who have exercised their withdrawal right, they shall be entitled to a price complement (provided that there is unequal
division of the sales price as set out in Article 5.2) equal to the weighted sale price of the sales made by the Assignors on the above conditions and the price paid as part of the exercise of their withdrawal right. 
  
 Consequently, the Assignors undertake to supply the Beneficiaries with all
information necessary for the execution of this paragraph. The price complement shall be paid within fifteen (15) Days from completion of the sales creating a right to a price complement. 
  
 4-2 Non-completion of the planned transaction 
  
 If, even though the Beneficiaries have not exercised or have waived exercise of their pre-emptive right or their withdrawal right, the
planned Assignment is not completed within six (6) months from the notification stipulated in Sections 4-1-1 or 4-2-1, the notification procedure shall be repeated on the same terms. 
  

 ARTICLE 5 – OFFER TO PURCHASE THE ENTIRE CAPITAL 
  
 5-1 Sales agreement: 
  
 5.1.1 Authorization to sell 
  

As from the day following the general meeting of the shareholders approving the financial statement for the fiscal year ending December 31st 2005 and as long as Innoven holds Transferable Securities, Innoven will be entitled to grant an exclusive authorization to
sell (hereinafter referred to as the “Authorization”) to an internationally reputed merchant bank in order to find a Third Party acquirer for all the Transferable Securities issued by the Company. 
  
 5.1.2 Drag-along 
  
 (a) Any Signatory informed of an irrevocable offer to purchase the entire
capital and voting rights of the Company or an offer received by the Company or Innoven in the context of the Authorization (hereinafter referred to as the “Offer to Buy 100%”) shall notify the other Signatories under the terms of
section 3-2-1 and attach to this notification a duly certified copy of the offer made by the prospective Buyer. 
  
 Each Signatory shall have fifteen (15) Days to accept this Offer to Buy 100% by notifying all Signatories or at a meeting called at the initiative of the
first party to act, to which all Signatories shall be invited. Each Signatory may appoint a representative for this meeting, which shall be recorded in minutes drafted and signed by the attending Signatories or their representatives. 
  
 (b) If the Offer to Buy 100% is accepted by Signatories who together hold
Transferable Securities representing a Minimum Qualified Interest, this percentage shall imperatively include the Shares held by Innoven, each Signatory shall sell the offeror all its Transferable Securities on the terms proposed in the Offer to Buy
100%, subject to the provisions in Section 5.1.2 and in Article 11 below. 
  
 In the event that the failure to perform this obligation leads to the lapsing of the Offer to Buy 100%, the defaulting Signatories shall be jointly and
severally bound to acquire or cause to be acquired, all the Transferable Securities held by the Signatories having accepted this Offer to Buy 100%, on the basis of the latters’ terms. 
  
 (c) Nevertheless, the event that the Offer to Buy 100% is accepted according
to the above terms and conditions, only those Industrial Investors which did not accept the Offer to Buy 100% shall be entitled to exercise their pre-emptive right, as provided for in Article 3 above, subject to notifying all the
Signatories within 8 days of accepting the Offer to Buy 100%. In the event of the exercising of the pre-emptive right, the Industrial Investors shall be bound to acquire all the Transferable Securities belonging to the Signatories having accepted
the Offer to Buy 100%, on the latters’ terms, subject to the provisions of Section 5-2 which shall apply. Should the Industrial Investors fail to notify their decision to exercise their pre-emptive right within the 8-day period
set out above, they shall be bound to sell all their Transferable Securities according to the terms provided for in the previous paragraph. 
  

 5-2 Unequal division of the sales price: 
  
 5.2.1 For purpose of application of Article 5-2, in the event a Shareholder transfers OCABSA Bonds together with its
Shares in the course of the Offer to Buy 100%, these OCABSA Bonds will be taken into account for the calculation of the sales price described below and each transferred OCABSA Bond will be supposed to be transferred (i) at a price equal to 1,667
times the price applied for a Priority Shares transfer, so long as the conversion rate of the OCABSA Bonds has not been set according to the terms and conditions defined at the general meeting of December 15, 2003, or (ii) as soon as such conversion
rate shall be set, at the price determined by this rate. 
  
 5.2.2 In the
event of a sale of part or all of the Company’s capital including the sale of PF, for whatever reason (the “Sale”), the global price of the Sale to be paid to the selling Shareholders (the “Sales Price”) shall
first involve an equal distribution among all sold Shares up to their par value. 
  
 The balance of the Sales Price after this distribution shall then be allocated as follows: 
  

	 	(i)	first of all, to each sold PF, up to the share premium paid at its subscription, in proportion to the amount of that share premium; 

  

	 	(ii)	second, without prejudice of the price paid by application of section (i) here before, the balance of the Sales Price, will be divided between the holders of Priority Shares
involved in the considered transfer amounting to €150, for each A, B, C, D Shares transferred by each holder of Priority Shared, and in the case where the balance of the Sales Price to be divided by application of the present section, would not
enable the payment of this additional price of €150 per share, this balance of the Sales price, further to the application of (i), will be divided to the benefit of each holder of Priority Share, pro rata of the number of shares transferred by
the latter (whatever A, B, C, D Shares are concerned) in light of the total number of A, B, C, D Shares transferred by the Priority Shares holders involved in the considered transfer; 

  

	 	(iii)	finally, the balance of the Sales Price, if any, shall be equally distributed among all Shares sold. 

  
 5.2.3 (a)Similarly, in the event of a partial or total capital subscription by the Company including contribution of PF, even in the event
of the absorption of the Company in a merger (the “Merger”), the shares issued (the “New Shares”) by the absorbing company in exchange for the Shares held by the selling Shareholders shall first be distributed in
exchange for the par value of the Shares contributed. 
  
 (b) The balance of the
New Shares after this distribution shall then be allocated in compliance with the principles set out in Section 5.2.2 above 
  
 (c) The determination of the price of a New Share and of a PF within the Merger, must, prior to the approval of the merger treaty by the Executive Board, have been
approved by the majority of the Shareholders holding PF. In all cases where, for any reason, this price is subject to disagreement among the Shareholders, the price shall be set by an expert appointed by an ordinance by the President of the
Commercial Court ruling in a summary proceeding for urgent matters, with no possibility of appeal, in compliance with Article 1843-4 of the French Civil Code. 
  

(d) The Shareholders agree, and the Company accepts and agrees, that the merger treaty relating to the Merger may only be approved by the Executive Board and signed by
the Company’s Chairman if it contains all necessary provisions for the implementation and strict application of the provisions of the present Article. All measures must accordingly be taken and approved by vote by the Shareholders to that end.

  

 However, in the event that, resulting from the Merger, the application of principles provided by Section
5.2.2 would become impossible, the Parties commit to implement all the necessary means, to get a result of priority allotment similar in compliance with principles provided by Section 5.2.2 here before. 
  
 ARTICLE 6 – MAINTENANCE OF INVESTORS’ RIGHTS ON SHAREHOLDERS’ EQUITY

  
 6-1 Issues / New distribution of warrants and bonds 
  
 Any allotment of specific stock-options and, more generally, of all warrants (including
equity warrants) or stock options granted to employees or directors of the Company who are not Shareholders, and more generally to third parties, shall be subject to the beneficiary’s adhesion to the Shareholder Agreement. 
  
 The Shareholders’ General Meeting of December 15, 2003 authorized the Executive Board to
issue a maximum amount of 12,000 specific stock-options and/or equity warrants and/or Stock Options in order to set up a new profit-sharing system within the Company to replace the formerly existing systems. Consequently, the Executive Board agrees
to allocate these specific stock-options and/or equity warrants and/or Stock Options only in replacement of the specific stock-options issued [i] and after or at the same time as the finalization of the sale to the Company and the ensuing
cancellation of the [ii] equity warrants issued. 
  

 6-2 Maintaining Investors’ Equity 
  
 At each new issue of Transferable Securities, whether or not a private offering, the Investors shall have the right to maintain their
participation at the same level as before the issue. 
  
 Consequently, the
Chairman of the Company’s Executive Board agrees, in the event of an issue giving access, immediately or on maturity, to a quota of the Company’s capital (excepting stock options or the purchase of Shares and specific stock-options
reserved for the Company’s employees and directors), that each Investor be allowed to maintain the same level of Participation as previously, at the same conditions (notably with respect to the price) as offered to other subscribers.

  
 6-3 Investors’ Priority Rights in the event of a Reserved Primary
Issue 
  
 In addition to the right to maintain their level of Participation,
the Investors shall have a right of priority, over any third party, to subscribe to any capital increase or issue of Transferable Securities other than Shares (excepting stock options and specific stock-options reserved for the Company’s
employees and directors), planned by the Company, this right applying proportionally to the Participation of each Investor within the total Participation of Investors. 
  
 Consequently, whenever this type of capital increase or issue of Transferable Securities is planned with the suppression of preferential
subscription rights, the Chairman of the Executive Board shall inform the Investors of all of its characteristics and of the date set for the Company’s General Meeting to approve the issue (the “Notification of Primary Issue”)
10 Days at least before the convocation to this Meeting. 
  
 Each Investor
disposes of 10 Days, following the Notification of the Primary Issue, to make known its notice, this notice being without prejudice to the Investor’s vote at the General Meeting or to the Investor’s right to exercise all or part of its
Ratchet equity warrants. The Primary Issue shall consequently be reserved for Investors having made the request and at the amount of that request; the balance of this primary issue may be reserved for any Third Party. 
  
 Otherwise, Shareholders having approved, in an extraordinary general meeting, a resolution
which does not respect the priority right of Investors, agree to sell to Investors who so request, within sixty (60) days from the realization of the Primary Issue, the number of Transferable Securities necessary so that, in addition to the
Transferable Securities which they hold at the time of the exercise of the option thus granted, the Participation of each Investor be equal to its Participation before the realization of the issue of such Transferable Securities. 
  
 In any event, no Primary Issue may be reserved for a Third Party without the express prior
commitment to adhere to the Shareholder Agreement as a Founder, excepting express prior consent by the Investors for an adhesion to the Shareholder Agreement on behalf of the Third Party. 
  
 Furthermore, any issue of Securities giving access to the Company’s capital shall be carried out pursuant to the provisions or
Article 7. 
  
 In any event, if the Company issues Transferable
Securities without the prior and express consent of each of the Investors, and if this might, whether immediately or upon maturity: 
  

	 	•	lead to a Change of Control of the Company, 

  

	 	•	lead to a Third Party or a Shareholder taking of Control of the Company as defined in Section 4-1 above, or 

  

	 	•	lead to a dilution of the Investors’ interest in the Company’s capital, on the understanding that any issue of Transferable Securities involving the maintenance of the
preferential subscription right of shareholders is not considered to be a transaction that could give rise to a dilution of the Investors’ interest in the Company’s capital, even if the Investors individually waive the right to exercise
their preferential subscription right. 

  
 The Signatories who gave
their agreement to the operation shall be jointly and severally liable for acquiring the Transferable Securities belonging to the Investors who have not consented to the transaction, under the conditions stipulated in Article 4.

  
 The purchase price of the Transferable Securities belonging to these Investors
shall be equal to the price set by the issue conditions of said Securities. Should the Investors fail to agree on this price, it shall be determined by an expert, who will be appointed and will carry out his duties in accordance with the conditions
defined in Section 10-3 below. 
  
 ARTICLE 7 – SPECIFIC
COMMITMENTS BY STÉPHANE SCHMOLL, MARC VERDET AND THE FOUNDERS 
  
 7–1 Mssrs. Stéphane Schmoll and Marc Verdet undertake to devote all of their professional activity to the development of the Company and its subsidiaries as long as they have an employment contract or an authorization to
represent the Company or its subsidiaries, during the entire term of the Agreement. 
  
 However, with the consent of the Investors possessing more than 95% of the Transferable Securities belonging to the Investors, Mssrs. Stéphane Schmoll and Marc Verdet may each be authorized to exercise other activities, in particular
in the LoJack Group. 
  
 Mssrs. Stéphane Schmoll and Marc Verdet represent
that they do not represent and are not the auditor of a company other than the Company or its subsidiaries. 
  
 7–2 In addition, Mssrs. Stéphane Schmoll and Marc Verdet undertake to refrain from collecting remuneration or indirect benefits from the Company or from its subsidiaries other than the remuneration,
benefits and ancillary amounts allocated to him as employee or company representative. 
  
 Mr. Stéphane Schmoll undertakes to refrain — except with the express prior consent of Investors possessing more than 95% of the Transferable Securities belonging to the Investors — from taking any interest in, in any way
whatsoever, whether directly or indirectly, in particular as employee, director, member of the supervisory board, executive, adviser or other, whether or not for consideration, any company or group exercising an activity that competes with, or is
similar or analogous to that of the Company or one of its subsidiaries. Mssrs. Stéphane Schmoll and Marc Verdet further undertake not to hold a direct interest, or indirect interest within the meaning of Article L 233-4 of the Commercial
Code, in the capital of a company or group exercising such an activity, without prejudice to the right to hold an interest of less than 5% in the capital of a company whose shares are listed on a French or foreign regulated market. 
  
 Mssrs. Stéphane Schmoll and Marc Verdet shall be bound by this commitment for the
entire period during which one and/or both an employee or representative of the Company, and during a period of 

  

 
twelve months from the date of the termination of their employment contract or their authorization to represent the Company. 
  
 7-3 Each member of the Group of Founders represents, as far he/she/it is
concerned: 
  

	 	•	not having registered or acquired copyrights, patents, trademarks and other industrial or intellectual property rights relating directly to the Activity of the Company, or any of
its subsidiaries, 

  

	 	•	not having concluded agreements relating to a copyright, an industrial or intellectual property right, or to knowledge or know-how, whether or not patentable, relating directly or
indirectly to or that could be useful for the Activity of the Company or any of its subsidiaries. 

  
 Each member of the Group of Founders further undertakes: 
  

	 	•	not to file or acquire copyrights, patents, trademarks and other industrial or intellectual property rights relating directly to the Activity of the Company, or any of its
subsidiaries, 

  

	 	•	not to conclude agreements relating to a copyright, an industrial or intellectual property right, or to knowledge or know-how, whether or not patentable, relating directly or
indirectly to or that could be useful for the Activity of the Company or any of its subsidiaries. 

  
 Mssrs. Stéphane Schmoll and Marc Verdet further undertake not to take out, purchase or file in their personal name any patents, trademarks or other industrial or
intellectual property rights, relating directly or indirectly to, or that could be useful for the Business or any of its subsidiaries. These transactions may be carried out in the name of the Company itself. 
  
 Thus, the Company shall make its best endeavors to ensure that each employee, prior to
starting work with or being appointed by the Company, makes a commitment by which he will transfer to the Company all of the Property Rights relating to the work that he carries out within the framework of his job and/or his duties. Any patents
resulting from the Company’s activity shall be filed in the Company’s name. 
  
 7-4 Finally, Mssrs. Stéphane Schmoll and Marc Verdet each undertakes, in the event that they resign from their position with the Company, or in case of dismissal for serious default, within eighteen (18) months from the
signature hereof, to transfer all of the Transferable Securities that they hold or will have subscribed at the Extraordinary General Meeting of December 15, 2003, as follows: 
  

	 	•	for Marc Verdet: 

  
 at a price set by an expert according to the conditions set out in Section 10-3; 
  

	 	•	for Stéphane Schmoll: 

  

 at a price set by an expert according to the conditions set out in Section 10-3, less a percentage to be
determined as follows: 
  

	 	•	in the event the resignation occurs between the first and sixth months inclusive following the execution of the Agreement, the discount will equal 75% of the price set by the
expert; 

  

	 	•	in the event the resignation occurs between the seventh and twelfth months inclusive following the execution of the Agreement, the discount will equal 60% of the price set by the
expert; 

  

	 	•	in the event the resignation occurs between the thirteenth and eighteenth months inclusive following the execution of the Agreement, the discount will equal 45% of the price set by
the expert. 

  
 For the purposes of this paragraph, any cessation of
functions resulting from death, or due to permanent partial disablement of at least 25% (as determined by Social Security legislation) shall not be considered as resignation if definitive. However, in the event of illness or accident giving rise to
any work disablement of less than 25%, the Signatories agree to examine together in good faith, and, if necessary, to amend the above provisions. Similarly, for the purposes of this paragraph, in the event that Mr. Stéphane Schmoll or Mr.
Marc Verdet ceases his functions due to the death or serious illness of his wife or one of his children, it shall not be considered as resignation. 
  
 The Investors shall have six (6) months after the cessation of Mr. Stéphane Schmoll’s or Marc Verdet’s functions to exercise their purchase option by
registered mail with notice of receipt. The Investors shall divide the Transferable Securities to be acquired in proportion to their irrevocable rights and rights to apply for any remainder, as defined in Section 3-2-2 above, unless
there is an agreement to the contrary between them. 
  
 Moreover, any person of
the Investors’ choice may acquire the Transferable Securities belonging to Mr. Stéphane Schmoll or Mr. Marc Verdet in their stead. 
  
 It is expressly stipulated that the Investors’ exercise of the purchase options held by them pursuant to this paragraph shall not be considered to have produced a
Change of Control. 
  
 7-5 In the event of authorization to sell granted to
an internationally reputed merchant bank, the Company’s Executive Board and Stephane Schmoll undertake to cooperate fully, to provide all documents related to the Company and, more generally speaking, to take all necessary steps to duly ensure
the performance of the authorization to sell. 
  
 7-6 The Company owes LoJack
certain amounts due under the License Agreement: pursuant to the provisions of Amendment no. 2 of the License Agreement executed today, the Executive Board agrees to proceed with the settlement of these debts toward LoJack as soon as possible after
December 22, 2003, and in any event before December 31, 2003. 
  
 ARTICLE 8
–CONTROLLED COMPANIES 
  
 8-1 Mssrs. Stéphane Schmoll and Marc
Verdet undertake to obtain from all companies that they control or may come to control, directly or indirectly, together or individually, [an agreement] that they will maintain normal competitive commercial or financial relations with the Company
and its subsidiaries, whether current or future. 
  
 8-2 Furthermore, each
Signatory agrees to notify all other Signatories within 10 days of any Change of Control affecting it. 
  

 ARTICLE 9 – FLOTATION 
  
 9-1 In the event that the Shares are floated on any regulated market belonging to a French or foreign stock market, the Group of
Founders acknowledges that the members of the Group of Investors are entitled to put on the market, on the introduction date and in proportion to their interest, a share of the Transferable Securities offered to the public. 
  
 9-2 Mssrs. Stéphane Schmoll and Marc Verdet undertake to refrain from floating
the shares of a company controlled by the Company or of a company that controls the Company on a French or foreign regulated market; any flotation shall relate to the Transferable Securities, unless the prior, express agreement of each of the
Investors is obtained. 
  
 9-3 The Investors shall consult the Group of
Founders the Investors as regards to the choice of the bank in charge of the listing and the other services suppliers in relation with such listing. 
  
 ARTICLE 10 – FORCED EXECUTION, PROCEDURE AND EXPERTISE 
  
 10-1 Forced execution 
  
 10-1-1 Exercise of the right of pre-emption 
  
 If the right of pre-emption referred to in Article 3, and in Section 4-1-2, is exercised, the sale may be made binding on the
Company by handing over to the latter and to the joint representative referred to in Article 13 below, an original hereof and any documents proving that the Investors have exercised this right in the forms and timeframes stipulated and
that the sale has therefore taken place. 
  
 However, if the
transferors fail to perform, the Signatories shall be entitled to: 
  

	 	•	pay the acquisition price of the Transferable Securities in person to a third party depository — whose identity and address shall be notified to the transferors and to the
joint representative referred to in Article 13 below. The depository shall then be responsible for submitting this sum to the transferors in exchange for the duly signed transaction orders. 

  

	 	•	have a court appoint a representative, whose function will be to officially record the sale and to sign all transaction orders or other legal instruments and documents needed to
make the sale binding on the Company. 

  
 10-1-2
Exercise of the right of withdrawal 
  
 In case of default by
the Assignors following the exercise of the right of withdrawal referred to in Section 4-1-2, the Signatories having exercised this right shall be entitled to: 
  

	 	•	place the duly signed transaction orders in person with a third party depository, whose identity and address shall be notified to the Assignors and to the joint representative
referred to in Article 13 below. The depository shall then submit them to the buyers in exchange for payment of the price. 

  

	 	•	send notice to the Assignors to pay the price to said third party depository within fifteen (15) days. 

  

 Thereafter, each of the Signatories who intends to exercise his right of withdrawal shall have the option
to waive this right and to acquire the Transferable Securities in the quantities, under the conditions and within the timeframe set out below. 
  
 To this end, the defaulting Assignors undertake, jointly and severally, to transfer to each of the Signatories who so requests the number of the
Transferable Securities needed, such that together, they hold (depending on their preference) either 34% or 51% of the capital or voting rights of this Company. 
  
 Said purchase option shall be exercised first of all over the Shares and then, only on an ancillary basis and if necessary,
over the Transferable Securities that carry the right, whether immediate or deferred, to subscribe to or be allotted these Shares. 
  
 If the purchase option follows the exercise of the right of withdrawal stipulated in Section 4-1-2 concerning the Transferable Securities of
the same category as those that have been transferred to a Third Party, the transfer price shall be equal to that proposed by the Third Party or resulting from the Transfer conditions. 
  
 If the purchase option relates to another category of Transferable Securities, and in the absence of an agreement, the price
shall be set by an expert who shall be appointed and shall exercise his functions in accordance with the conditions defined in Section 10-3 below. 
  
 Those Signatories who intend to exercise this right must communicate this intention to the Assignors within thirty (30) days
from the expiration of the period of fourteen (14) days stipulated in the first paragraph above, after notice has been given and gone unheeded. This notification must indicate the distribution, between the Signatories, of the Company’s
Transferable Securities that they will be entitled to acquire. If this breakdown is not indicated or if there is a disagreement between the Signatories, their right in respect of the purchase option shall be exercised in accordance with the
conditions defined in sub-paragraph 5 of Section 3-2-2. 
  
 Thereafter, those Signatories who initially exercised their right of withdrawal may only continue the execution thereof under the ordinary law. 
  
 If the purchase option is exercised, the securities shall be transferred to the Signatories having exercised this purchase option upon notification of the
exercise of said right. The transaction orders and any other necessary documents must be submitted to the transferees within thirty (30) days of this notification or, if an expert’s report is prepared, within thirty (30) days of the submission
of the expert’s report. 
  
 The provisions of Section
11-1-1 above shall apply in the event the Assignors fail to satisfy their obligations. 
  

 10-2 Procedure 
  
 For the implementation of the Agreement: 
  

	 	•	all notification shall be made by registered mail with notice of receipt or by extra judicial process, 

  

	 	•	all notifications shall be deemed to have been made as required, as the case may be, to each of the Investors (or to their representative referred to in Article 12),
or to the representative of the Group of Founders (as indicated in Article 12), 

  

	 	•	and copies of all notifications must be sent to the Agreement’s manager. 

  

10-3 Expert’s report 
  
 Where the Agreement provides for an expert’s report to determine the price of the Transferable Securities to be transferred hereunder, this price shall be set by an
expert appointed in accordance with Article 1843-4 of the French Civil Code. 
  
 Any shareholder who notifies his intention to request an expert’s report must, within fourteen (14) days of this notification, propose an expert to the other party. If, within fourteen (14) days, the proposed expert has not been
approved by the other party, or if more than one party has made such a request, and an agreement is not reached regarding the choice of a single expert, the expert shall be appointed by the court on the application of either party. 
  
 From the date of his appointment, the expert shall have forty-five (45) days — except in
the case of an extension decided jointly between all of the parties concerned — to carry out his duties and to submit his report simultaneously to all of the parties. This report shall not be subject to any particular formalities. However, the
expert shall, prior to submitting his final report, send a draft report to all the parties so that they may make any observations that they consider useful. The expert, without accepting these observations, shall be bound to reply to them. The final
report shall only be drawn up once the expert has replied to all the observations which he has received within 8 Days of the submission of the draft report. 
  
 The expert must indicate the value of the Company and the unit price of the Shares shall be equal to this value, divided by the number of Shares comprising the Diluted
Capital on the transfer date. 
  
 The expert’s decision shall not be appealed
in any way. 
  
 If the expert is prevented from doing his work in any manner, a
new expert shall be appointed in accordance with the conditions set out in the second paragraph of this section. 
  
 The expert’s fees shall be borne equally between the parties in question. 
  
 ARTICLE 11 – CONDITIONS FOR THE TRANSFER OF TRANSFERABLE SECURITIES 
  

For the purposes of this Agreement, transferees shall acquire full title to the Transferable Securities, free of any pledge or other impediment, and with full rights
as of the date that the sale will be deemed to have occurred, on the expiration of any deadline for waiving or exercising a right. 
  

 Except for the provisions of Articles 3, 4 and 5 or a different agreement, the price of the Transferable
Securities shall be paid in cash, in exchange for transaction orders and any other necessary documents. 
  
 The Parties have expressly agreed that the members of the Group of Investors — in the event that the Transferable Securities belonging to them are transferred, whether following the exercise of their right of
withdrawal or otherwise – shall not be required to give or to participate in any guarantee whatsoever, granted by the Assignors. The consequences for the transfer price of the Transferable Securities belonging to the Investors and the other
Signatories not participating in the guarantee granted by the Assignors shall be determined by joint agreement on the Transfer date. 
  
 For information purposes, it is hereby specified that the venture capital mutual funds which are not subject to the simplified procedure are forbidden by regulations from
granting guarantees in respect of liabilities. 
  
 Article 12 –
Representations 
  
 12-1 Representation by members of the Group of
Founders 
  
 To facilitate the Signatories’ mutual relations, the
members of the Group of Founders agree that for all procedures provided for in the Agreement (notification of transactions, exercise of pre-emptive or withdrawal rights, performance of obligations in respect of sale, acceptance and provision of
information, etc.), Mr. Jean-Jacques Schmoll, the principal representative, and Mr. Xavier Gérard the deputy representative, shall validly represent them for the exercise of their rights and obligations with regard to the other Signatories.
In the event the principal representative is unable to carry out his duties, the deputy representative shall become the principal representative and shall notify to all of the Signatories and the manager of the Agreement the identity of the new
deputy representative within 30 days. 
  
 12-2 
 Representation of the Siparex Group 
  
 To facilitate the Signatories’ mutual relations, the members of the Siparex Group agree that for all procedures provided for in the Agreement (notification of
transactions, exercise of pre-emptive or withdrawal rights, performance of obligations in respect of sale, acceptance and provision of information, etc.) that Sigefi Ventures Gestion shall validly represent them for the exercise of their rights and
obligations with regard to the other Signatories. 
  
 ARTICLE 13 – JOINT
REPRESENTATIVE / MANAGER OF THE AGREEMENT 
  
 To guarantee the exercise of
the Signatories’ mutual rights and to ensure full efficacy of the Agreement, each of the members of each group agrees to delegate to the Supervisory Board the appointment, Mr. Didier Chambeau (the “Joint Representative”), 47,
rue de Monceau, 75008 Paris, has been made in charge of the management of the Agreement. 
  
 In his capacity as manager of the Agreement, who has been specially mandated by the Signatories for the entire term set in Article 14 below, the Joint Representative: 
  

	 	•	shall see that the Shareholders’ accounts opened by the Company mention the restrictions encumbering the Signatories’ Transferable Securities pursuant to this Agreement,

  

	 	•	shall be solely empowered to receive transfer orders sent by a Signatory and to forward same for execution to the Company, 

  

	 	•	shall only give the Company instructions to register a transfer order after it has checked the legality of said transfer order in the light of undertakings contained in the
Agreement and after he has checked that the procedures have been followed so that the order may be properly executed. 

  
 This mandate shall relate to the management of all Transferable Securities owned by the Signatories. 
  
 The Joint Representative may terminate his assignment at any time, subject to at least three months’ notice to each of the Signatories.
If a new joint representative has not been appointed at the end of such notice period, the first Signatory to act may submit an application to the presiding judge of the Court with territorial jurisdiction at the registered office address seeking
the appointment of a new joint representative. 
  
 ARTICLE 14 – TERM AND
SCOPE OF THE CLAUSES 
  
 14-1 The Agreement is effective on the date
of the present and it shall apply for a ten (10)-year term. If the Investors still own all of the Transferable Securities at the end of this first period, the Agreement shall automatically and by operation of law be renewed for a further 10-year
period and so on, at the end of each period. 
  
 It shall terminate with regard to
any Signatory who transfers all of his Transferable Securities, but only as from the date on which he has fulfilled all of his obligations and all of his rights have been satisfied. 
  
 The Transfer to a Third Party or to one of the Signatories of all of the Transferable Securities owned by one of the Signatories shall not
cause termination of the Agreement with regard to the other Signatories, without prejudice to each of the Investors’ right to exercise, if applicable, its withdrawal right pursuant to Article 4. 
  
 The takeover of the Company by another company shall not cause the termination of the
Agreement, which shall still be valid between the Signatories for the Transferable Securities issued by the acquiring company. 
  
 However, it shall be terminated by operation of law on the date the Shares are listed on a regulated stock market. 
  
 14-2 None of the clauses of the Agreement has a decisive effect on the whole of the
Agreement such that the nullity of one or more of such clauses shall not result in the nullity of the whole of the agreement. 
  
 14-3 None of the Signatories may transfer the Transferable Securities, even if the Transfer is authorized by the other Signatories, without the transferee, if he
is not already a party to the Agreement, expressly becoming a member of the transferor’s group and without assuming in writing all of the obligations hereunder and complying with its provisions on the same terms as if he had been a Signatory
from the outset. 
  
 14-4 With the exception of the License Agreement, the
memorandum of understanding entered into between certain holders of class A shares, this Agreement replaces and supersedes the shareholders’ 

  

 
agreement of November 26, 2001, as amended by a supplementary clause November 27, 2001 and all other previous undertakings between the shareholders.

  
 ARTICLE 15 – APPLICABLE LAW – JURISDICTION 
  
 This Agreement is subject to French law for its application and performance. 
  
 Any dispute relating to the interpretation or performance of this Agreement shall, failing an
amicable settlement between the Parties, be submitted to the Commercial Court of Paris. 
  

 ARTICLE 16 – ADDRESS FOR SERVICE 
  
 For performance of this Agreement, each of the Signatories shall designate an address for service at his home address or registered office
or, where applicable, at the address of his representative, as provided in Article 12. 
  
 Executed in sixteen (16) original copies, 
  
 In
Paris, December 15, 2003 
  

			
	Mr. Jean-Jacques Schmoll	  	 Mrs. Jacqueline Schmoll
 Represented by Jean-Jacques
Schmoll

		
	Mr. Stéphane Schmoll	  	 Mrs. Evelyne Schmoll
 Represented by Florence Kossoff
Schmoll

		
	Mr. Luc Chambon	  	Mr. Jules Bernard Sussmann
		
	 Mr. Jean Bousquet
 Represented by Florence
Kossoff
	  	 
		
	 Colebrook
 Represented by Stéphane
Schmoll
	  	 Stockval
 Represented by Xavier
Gérard

		
	Mr. Xavier Gérard	  	 Mr. Eric Gérard
 Represented by
                    

		
	 Mr. Louis Gérard
 Represented by
                    
	  	 Mr. Jacques Gérard
 Represented by
                    

  

			
		
	 Mrs. Anne-Marie Gérard
 Represented by
                    
	  	 Mrs. Chantal Lahalle
 Represented by
                    

		
	 Mr. Laurent Marnier
 Represented by
                    
	  	 Mr. Edouard Courtial
 Represented by
                    

		
	 Project Management Services
 Represented by Florence
Kossoff
	  	 CP Long Terme
 Represented by Jean-Jacques
Schmoll

		
	 Indivision Tardy-Joubert
 Represented by Florence
Kossoff
	  	 Mr. Roland de Malherbe
 Represented by
                    

		
	 Mr. Xavier Vergeade
 Represented by Stéphane
Schmoll
	  	 Mr. Fred Ullmo
 Represented by Florence
Kossoff

		
	Mrs. Florence Kossof	  	 Lixcam Inc.
 Represented by Xavier
Gérard

		
	Mr. Hervé Ripault	  	 Mr. Pierre Dariot
 Represented by
                    

		
	 Mr. Philippe de Fontenay
 Represented by Hervé
Ripault
	  	 Mr. Arthur de la Grandière
 Represented by
                    

		
	 Mr. Pierre de Croisset
 Represented by
                    
	  	 Mr. Philippe Embiricos
 Represented by Xavier
Gérard

  

			
		
	 Mr. Gilles Rouchie
 Represented by
                    
	  	 Mr. Xavier Lépine
 Represented by
                    

		
	 Scorpion Nominees Ltd.
 Represented by
                    
	  	 Mr. Neville Cook
 Represented by
                    

		
	 Mr. Hugues Lamotte
 Represented by Xavier
Gérard
	  	 
		
	 Mr. Charles Durand
 Represented by Jules Bernard
Sussmann
	  	 Mr. Charley Hannoun
 Represented by Florence
Kossoff

		
	 Mr. Dominique Fauve
 Represented by
                    
	  	 LoJack Inc.
 Represented by
                    

		
	 EADS Telecom SAS
 Represented by Remy
Blain
	  	 Sigefi Ventures Gestion
 Represented byMichel
Faure

		
	 Siparix Croissance
 Represented byMichel
Faure
	  	 Siparex Développement
 Represented byMichel
Faure

		
	 Crédit Lyonnais Private Equity
 Represented by
                    
	  	 BNP Paribas Développement
 Represented by
                    

		
	 Viveris Management
 Represented by
                    
	  	 Tracker Network UK
 Represented by
                    

  

			
		
	 Innoven Partenaires
 Represented by Thomas
Balland
	  	 A Plus Finance
 Represented by Niels
Court-Payen

		
	Marc VERDET	  	 Arnold Raicher
 Represented by Stéphane
Schmoll

		
	 Mercure Epargne Longue
 Represented by Jean-Jacques
Schmoll
	  	 Valerap Patrimoine
 Represented by Jean-Jacques
Schmoll

		
	 Hervé Hirt
 Represented by Florence
Kossoff
	  	 Olivier Chevrillon
 Represented by Jean-Jacques
Schmoll

		
	 Nathalie Bovard
 Represented by Jean-Jacques
Schmoll
	  	 Christine Gérard
 Represented by Xavier
Gérard

		
	 Jacques de Panisse Passis
 Represented by
                    
	  	 Yann Houdré
 Represented by
                    

		
	 Traqueur SA
 Represented by Marc Verdet
	  	 

  

 APPENDIX A 
  
 Copy of the License Agreement 
 Granted by LoJack September 1, 1997 
  
 Copy of
Amendment no. 1 of November 6, 2001 
  
 Copy of Amendment
no. 2 of December 15, 2003 
  

 APPENDIX B 
  

BUSINESS PLANLOJACK CORPORATION 2003 STOCK INCENTIVE PLAN

  
 EXHIBIT 10ss.

  
 LOJACK CORPORATION 
  
 2003 STOCK INCENTIVE PLAN 
  

	 	1.	PURPOSE 

  
 The purpose of this 2003 Stock Incentive Plan (the “Plan”) is to encourage key employees, directors, and consultants of LoJack Corporation (the “Company”) and its Subsidiaries (as hereinafter
defined) to continue their association with the Company by providing favorable opportunities for them to participate in the ownership of the Company and its Subsidiaries and in its future growth through the granting of awards (“Awards”) of
Common Stock (as hereinafter defined), whether or not subject to restrictions (“Stock Grants”), stock options (“Options”), and other rights to compensation in amounts determined by the value of the Company’s Common Stock
(together with Stock Grants, “Other Rights”). The term “Subsidiary” as used in the Plan means a corporation, company, partnership or other form of business organization of which the Company owns, directly or indirectly through an
unbroken chain of ownership, fifty percent (50%) or more of the total combined voting power of all classes of stock or other form of equity ownership or has a significant financial interest, as determined by the Committee (as hereinafter defined).
The LoJack Corporation Restated and Amended Stock Incentive Plan (the “Prior Plan”), as most recently amended December 23, 2002, is terminated effective upon the date of approval of this Plan by the stockholders of the Company; provided,
however, that the terms of the Prior Plan shall continue in full force and effect with respect to outstanding and unexercised options granted under the Prior Plan and Common Stock issued under the Prior Plan. 
  

	 	2.	ADMINISTRATION OF THE PLAN 

  
 The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the “Board”) or, in the discretion of the
Board, by another committee or subcommittee of the Board appointed by the Board and composed of at least two (2) members of the Board (the “Committee”). In the event that a vacancy on the Committee occurs on account of the resignation of a
member or the removal of a member by vote of the Board, a successor member shall be appointed by vote of the Board. The Board may directly exercise the powers of the Committee, except where prohibited by law. All references in the Plan to the
“Committee” shall be understood to refer to the Committee or the Board, whoever shall administer the Plan. 
  
 For so long as Section 16 of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”), is applicable to the
Company, each member of the Committee shall be a “non-employee director” or the equivalent within the meaning of Rule 16b-3 under the Exchange Act and, for so long as Section 162(m) of the Internal Revenue Code of 1986, as amended from
time to time (the “Code”), is applicable to the Company, an “outside director” within the meaning of Section 162 of the Code and the regulations thereunder. The Committee shall select those persons to receive Awards under the
Plan (“Optionees”) and determine the terms and conditions of all Awards. 
  
 The Committee shall select one of its members as Chairman and shall hold meetings at such times and places as it may determine. A majority of the Committee shall constitute a quorum, and acts of the Committee at which
a quorum is present, or acts reduced to or approved in writing by all the members of the Committee, shall be the valid acts of the Committee. The Committee shall have the authority to adopt, amend, and rescind such rules and regulations as, in its
opinion, may be advisable in the administration of the Plan. All questions of interpretation and application of such rules and regulations of the Plan and of Awards granted hereunder shall be subject to the determination of the Committee, which
shall be final and binding. 
  
 With respect to persons subject to
Section 16 of the Exchange Act (“Insiders”), transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successor under the Exchange Act. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed to be modified so as to be in compliance with such Rule or, if such modification is not possible, it shall be deemed to be null and void, to the extent permitted by law and deemed advisable by the
Committee. 
  
 The Plan shall be administered in such a manner as
to permit those Options granted hereunder and specially designated under Section 5 as incentive stock options as described in Section 422 of the Code (“ISOs”) to qualify as such. 
  

	 	3.	STOCK SUBJECT TO THE PLAN 

  
 The total number of shares of the Company’s authorized Common Stock, $0.01 par value per share (“Common Stock”), that may be subject to
Award under the Plan shall be 1,000,000, from either authorized but unissued shares or treasury shares, plus the number of shares remaining available for issuance under the Prior Plan on the date of its termination. Other Rights that fail to vest,
and shares of Common Stock subject to an Option or similar Other Right that is neither fully exercised prior to its expiration or other termination nor terminated by reason of the exercise of an SAR (as hereinafter defined) related to the Option,
whether issued under the Plan or under the prior Plan, shall again become available for grant under the terms of the Plan. 
  
 The total amount of the Common Stock with respect to which Awards may be granted to any single person under the Plan shall not exceed in any year in the
aggregate 200,000 shares. 
  
 Each reference to a number of shares
of Common Stock in this Section 3 shall be subject to adjustment in accordance with the provisions of Section 11. 
  

	 	4.	ELIGIBILITY 

  
 The persons who shall be eligible for Awards under the Plan shall be key employees, and directors of, and other persons who render services of special importance to the management, operation or development of, the
Company or a Subsidiary, and who have contributed or may be expected to contribute materially to the success of the Company or a Subsidiary. ISOs shall not be granted to any person who is not an employee of the Company or an ISO Subsidiary. The term
“ISO Subsidiary” shall mean those Subsidiaries described in Section 424(e) or Section 424(f) of the Code. 
  

	 	5.	TERMS AND CONDITIONS OF OPTIONS 

  
 Every Option shall be evidenced by a written Stock Option Agreement in such form as the Committee shall approve from time to time, specifying the number
of shares of Common Stock that may be purchased pursuant to the Option, the time or times at which the Option shall become exercisable in whole or in part, whether the Option is intended to be an ISO or a non-qualified stock option
(“NSO”), and such other terms and conditions as the Committee shall approve, and containing or incorporating by reference the following terms and conditions. 
  
 (a) Duration. The duration of each Option shall be as specified by the Committee in its discretion; provided,
however, that no ISO shall expire later than ten (10) years from its date of grant, and no ISO granted to an employee who owns (directly or under the attribution rules of Section 424(d) of the Code) stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any ISO Subsidiary shall expire later than five (5) years from its date of grant. 
  
 (b) Exercise Price. The exercise price of each Option shall be any lawful consideration, as specified by the Committee in its discretion; provided,
however, that the exercise price with respect to an ISO shall be at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of grant of the Option; and provided, further, that the exercise price with respect to an
ISO granted to an employee who at the time of grant owns (directly or under the attribution rules of Section 424(d) of the Code) stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or of any ISO
Subsidiary shall be at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant of the ISO. For purposes of the Plan, except as may be otherwise explicitly provided in the Plan or in any Stock Option
Agreement, Restricted Stock Agreement, SAR Agreement or similar document, the Fair Market Value of a share of Common Stock at any particular date shall be determined according to the following rules: (i) if the Common Stock is not at the time listed
or admitted to trading on a stock exchange or the Nasdaq National Market, Fair Market Value shall be the closing asked price of the Common Stock on the day before the date in question in the over-the-counter market, as such price is reported in a
publication of general circulation selected by the Board and regularly reporting the price of the Common Stock in such market; provided, however, that if the price of the Common Stock is not so reported, Fair Market Value shall be determined in good
faith by the Board, which may take into consideration (1) the price paid for the Common Stock in the most recent trade of a substantial number of shares known to the Board to have occurred at arm’s length between willing and knowledgeable
investors, (2) an appraisal by an independent party or (3) any other method of valuation undertaken in good faith by the Board, or some or all of the above as the Board shall in its discretion elect; or (ii) if the Common Stock is at the time listed
or admitted to trading on any stock exchange or the Nasdaq National Market, then Fair Market Value shall be the closing price on the day before the date in question on the principal exchange on which the Common Stock is then listed or admitted to
trading. If no reported sale of Common Stock takes place on such date on the 

  

 
principal exchange or the Nasdaq National Market, as the case may be, then the reported closing asked price of the Common Stock on such date on the principal
exchange or the Nasdaq National Market, as the case may be, shall be determinative of Fair Market Value. 
  
 (c) Method of Exercise. To the extent that it has become exercisable under the terms of the Stock Option Agreement, an Option may be exercised from
time to time by written notice to the Chief Financial Officer of the Company or his designee stating the number of shares with respect to which the Option is being exercised and accompanied by payment of the exercise price. Such notice shall be
delivered in person or by facsimile transmission to the Chief Financial Officer of the Company or his designee or shall be sent by registered mail, return receipt requested, to the Chief Financial Officer of the Company or his designee, in which
case delivery shall be deemed made on the date such notice is deposited in the mail. 
  
 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, by delivering the Optionee’s duly executed promissory note
and related documents, (iii) with the consent of the Committee, by delivering Shares already owned by the Optionee 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. 
  
 Alternatively, with the consent of the Committee, Options may be exercised by means of a “cashless exercise”
procedure in which a broker: (i) transmits the exercise price to the Company in cash or acceptable cash equivalents either (1) against the Optionee’s notice of exercise and the Company’s confirmation that it will deliver to the broker
stock certificates issued in the name of the broker for at least that number of shares having a Fair Market Value equal to the exercise price or (2) as the proceeds of a margin loan to the Optionee; or (ii) agrees to pay the exercise price to the
Company in cash or acceptable cash equivalents upon the broker’s receipt from the Company of stock certificates issued in the name of the broker for at least that number of shares having a Fair Market Value equal to the exercise price. The
Optionee’s notice of exercise of an Option pursuant to a “cashless exercise” procedure must include the name and address of the broker involved, a clear description of the procedure and such other information or undertaking by the
broker as the Committee shall reasonably require. 
  
 (d) At the
time specified in an Optionee’s notice of exercise, the Company shall, without issue or transfer tax to the Optionee, deliver to him at the main office of the Company, or such other place as shall be mutually acceptable, a certificate for the
shares as to which his Option is exercised. If the Optionee fails to pay for or to accept delivery of all or any part of the number of shares specified in his notice upon tender of delivery thereof, his right to exercise the Option with respect to
those shares shall be terminated, unless the Company otherwise agrees. 
  
 (e) Vesting. An Option may be exercised so long as it is vested and outstanding from time to time, in whole or in part, in the manner and subject to the conditions that the Committee in its discretion may provide in the Stock Option
Agreement. 
  
 (f) Notice of ISO Stock Disposition. The
Optionee shall notify the Company promptly in the event that he sells, transfers, exchanges or otherwise disposes of any shares of Common Stock issued upon exercise of an ISO before the later of (i) the second anniversary of the date of grant of the
ISO and (ii) the first anniversary of the date the shares were issued upon his exercise of the ISO. 
  
 (g) Effect of Cessation of Employment or Service Relationship. Except as otherwise determined by the Committee at the date of grant of an Option,
upon termination of a Optionee’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 Optionee, an Option shall remain exercisable by such Optionee 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 such Optionee was entitled to exercise such Option at the date of such termination. For this purpose, “retirement” shall mean voluntary retirement as defined in a retirement plan or program of the Company or as determined by the
Committee; 
  
 (ii) in the case of termination as
a result of death or disability of the Optionee, an Option shall remain exercisable by such Optionee (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 Optionee 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 Optionee was
entitled to exercise such Option at the date of such termination; 
  
 (iv) in the case of an NSO, an Option shall remain exercisable until the normal expiration date of such Option or Right by an Optionee who is a director, or a consultant or former consultant of the Company whose
service as such 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. 
  
 (h) Transferability of Options. During the life of the Optionee, an Option shall be exercisable only by him, by a
conservator or guardian duly appointed for him by reason of his incapacity or by the person appointed by the Optionee in a durable power of attorney acceptable to the Company’s counsel. Notwithstanding the preceding sentences of this Section
5(i), the Committee may in its discretion permit the Optionee of an NSO to transfer the Option to a member of the Immediate Family (as hereinafter defined) of the Optionee, to a trust solely for the benefit of the Optionee and the Optionee’s
Immediate Family or to a partnership or limited liability company whose only partners or members are the Optionee and members of the Optionee’s Immediate Family. “Immediate Family” shall mean, with respect to any Optionee, the
Optionee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, and shall include adoptive relationships. 
  
 (i) No Rights as Stockholder. An Optionee shall have no rights as a
stockholder with respect to any shares covered by an Option until the date of issuance of a certificate to him for the shares. No adjustment shall be made for dividends or other rights for which the record date is earlier than the date the
certificate is issued, other than as required or permitted pursuant to Section 11. 
  

	 	6.	STOCK APPRECIATION RIGHTS 

  
 Among the “Other Rights” available under the Plan are stock appreciation rights (“SARs”), which may be granted by the Committee in
respect of such number of shares of Common Stock subject to the Plan as it shall determine, in its discretion, and may grant SARs either separately or in connection with Options, as described in the following sentence. An SAR granted in connection
with an Option may be exercised only to the extent of the surrender of the related Option, and to the extent of the exercise of the related Option the SAR shall terminate. Shares of Common Stock covered by an Option that terminates upon the exercise
of a related SAR shall cease to be available under the Plan. The terms and conditions of an SAR related to an Option shall be contained in the Stock Option Agreement, and the terms of an SAR not related to any Option shall be contained in an SAR
Agreement. 
  
 Upon exercise of an SAR, the Optionee shall be
entitled to receive from the Company an amount equal to the excess of the Fair Market Value, on the exercise date, of the number of shares of Common Stock as to which the SAR is exercised over the exercise price for those shares under a related
Option, or if there is no related Option, over the base value stated in the SAR Agreement. The amount payable by the Company upon exercise of an SAR shall be paid in the form of cash or other property (including Common Stock of the Company), as
provided in the Stock Option Agreement or SAR Agreement governing the SAR. 
  
 All grants of SARs to Insiders shall be capable of being settled only for cash and may not be granted in connection with an Option. If an SAR is awarded to a person who is not an Insider at the time of award but
subsequently becomes an Insider, it shall be deemed to be amended to provide that it may be settled only in cash while such person is an Insider. 
  

	 	7.	STOCK GRANTS 

  
 The Committee may grant or award shares of Common Stock, with or without restrictions. In the event restrictions are imposed on a Stock Grant, such
restrictions shall be set forth by the Committee in a Restricted Stock Agreement. 
  

 A holder of a Stock Grant, including a Stock Grant subject to restrictions, shall have all of the rights
of a stockholder of the Company, including the right to vote the shares and the right to receive any cash dividends, unless the Committee shall otherwise determine. Certificates representing Common Stock subject to restrictions shall be imprinted
with a legend to the effect that the shares represented may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with the terms of the Restricted Stock Agreement, and, if the Committee so
determines, the Optionee may be required to deposit the certificates with an escrow agent designated by the Committee, together with a stock power or other instrument of transfer appropriately endorsed in blank. 
  

	 	8.	SPECIAL BONUS GRANTS AND LOANS 

  
 In its discretion, the Committee may grant in connection with any NSO or Stock Grant a special cash bonus in an amount not to exceed the lesser of (a) the
combined federal, state, and local income and employment tax liability incurred by the Optionee as a consequence of his acquisition of stock pursuant to the exercise of the NSO or the grant or vesting of Stock Grant and the related special bonuses,
or (b) thirty percent (30%) of the imputed income realized by the Optionee on account of such exercise or vesting and the related special bonus. The Committee may in its discretion estimate the amount of the tax liability described in clause (a) of
the immediately preceding sentence, using formulae or methods uniformly applied to Optionees in similar circumstances, without regard to the particular circumstances of an individual Optionee. A special bonus shall be payable solely to federal,
state, and local taxing authorities for the benefit of the Optionee at such time or times as withholding payments of income tax may be required. A special bonus may be granted simultaneously with a related NSO Stock Grant or separately with respect
to an outstanding NSO or Stock Grant at an earlier date. In the event that an NSO with respect to which a special bonus has been granted becomes exercisable by the personal representative of the estate of the Optionee, or that a Stock Grant with
respect to which a special bonus has been granted shall vest after the death of an Optionee, the bonus shall be payable to or for the benefit of the estate in the same manner and to the same extent as it would have been payable for the benefit of
the Optionee had he survived to the date of exercise or vesting. 
  
 In the Committee’s discretion, a Stock Option Agreement or Restricted Stock Agreement may provide that to the extent that an Optionee does not receive a special bonus of the maximum amount permissible under this Section 8, the Company
shall lend the Optionee an amount no greater than the excess of such maximum over the special bonus (if any) paid to the Optionee, for such term and at such rate of interest (or no interest) and on such further terms and conditions as the Committee
determines. 
  

	 	9.	OPTIONS AND OTHER RIGHTS VOIDABLE 

  
 If a person to whom a grant has been made fails to execute and deliver to the Committee a Stock Option Agreement, Restricted Stock Agreement, SAR
Agreement or similar document within thirty (30) days after it is submitted to him, the Award granted under the agreement shall be voidable by the Company at its election, without further notice to the Optionee. 
  

	 	10.	REQUIREMENTS OF LAW 

  
 The Company shall not be required to transfer any Common Stock or to sell or issue any shares upon the exercise of any Option or Other Right if the
issuance of the shares will result in a violation by the Optionee or the Company of any provisions of any law, statute or regulation of any governmental authority. Specifically, in connection with the Securities Act, upon the transfer of Common
Stock or the exercise of any Option or Other Right the Company shall not be required to issue shares unless the Board has received evidence satisfactory to it to the effect that the holder of the Option or Other Right will not transfer the shares
except pursuant to a registration statement in effect under the Securities Act or unless an opinion of counsel satisfactory to the Company has been received by the Company to the effect that such registration is not required. Any determination in
this connection by the Board shall be conclusive. The Company shall not be obligated to take any other affirmative action in order to cause the transfer of Common Stock or the exercise of an Option or Other Right to comply with any law or
regulations of any governmental authority, including, without limitation, the Securities Act or applicable state securities laws. 
  

	 	11.	CHANGES IN CAPITAL STRUCTURE 

  
 In the event that the outstanding shares of Common Stock are hereafter changed for a different number or kind of shares or other securities of the
Company, by reason of a reorganization, recapitalization, exchange of shares, stock split, combination of shares or dividend payable in shares or other securities, a corresponding adjustment shall be made by the Committee in the number and kind of
shares or other securities covered by outstanding Options and Other Rights, and for which Options or Other Rights may be granted under the Plan. Any such adjustment in outstanding Options or Other Rights 

  

 
shall be made without change in the total price applicable to the unexercised portion of the Option, but the price per share specified in each Stock Option
Agreement, Restricted Stock Agreement, SAR Agreement or similar agreement shall be correspondingly adjusted; provided, however, that no adjustment shall be made with respect to an ISO that would constitute a modification as defined in Section 424 of
the Code without the consent of the Optionee. Any such adjustment made by the Committee shall be conclusive and binding upon all affected persons, including the Company and all Optionees. 
  
 If while unexercised Options or Other Rights remain outstanding under the Plan the Company merges or consolidates with a
wholly-owned subsidiary for the purpose of reincorporating itself under the laws of another jurisdiction, the Optionees will be entitled to acquire shares of Common Stock of the reincorporated Company upon the same terms and conditions as were in
effect immediately prior to such reincorporation (unless such reincorporation involves a change in the number of shares or the capitalization of the Company, in which case proportional adjustments shall be made as provided above) and the Plan,
unless otherwise rescinded by the Board, will remain the Plan of the reincorporated Company. 
  
 Except as otherwise provided in the preceding paragraph, if while unexercised Options or Other Rights remain outstanding under the Plan the Company merges or consolidates with one or more corporations (whether or not
the Company is the surviving corporation) or is liquidated or sells or otherwise disposes of substantially all of its assets to another entity, or upon a Change of Control (as defined herein), then, except as otherwise specifically provided to the
contrary in an Optionee’s Stock Option Agreement, Restricted Stock Agreement, SAR Agreement or similar agreement, the Committee may in its discretion amend the terms of all outstanding Options and Other Rights so that either: 
  
 (a) After the effective date of such merger, consolidation, sale or Change of
Control, as the case may be, each Optionee shall be entitled upon exercise of an Option or Other Right to receive in lieu of shares of Common Stock the number and class of shares of such stock or other securities to which he would have been entitled
pursuant to the terms of the merger, consolidation, sale or Change of Control if he had been the holder of record of the number of shares of Common Stock as to which the Option or Other Right is being exercised, or shall be entitled to receive from
the successor entity a new stock grant, stock option or stock appreciation right of comparable value; or 
  
 (b) All outstanding Options and Other Rights shall be cancelled as of the effective date of any such merger, consolidation, liquidation, sale or Change of
Control, as the case may be, provided that each Optionee shall have the right to exercise his Option or Other Right according to its terms during the period of twenty (20) days ending on the day preceding the effective date of such merger,
consolidation, liquidation, sale or Change of Control; or 
  
 (c)
All outstanding Options and Other Rights shall be cancelled as of the effective date of any such merger, consolidation, liquidation, sale or Change of Control, as the case may be, in exchange for consideration in cash or in kind, which consideration
in both cases shall be equal in value to the value of those shares of stock or other securities the Optionee would have received had the Option or Other Right been exercised (to the extent then exercisable) and no disposition of the shares acquired
upon such exercise had been made prior to such merger, consolidation, liquidation, sale or Change in Control, less the exercise price therefor. Upon receipt of such consideration by the Optionee, his Option or Other Right shall immediately terminate
and be of no further force and effect. The value of the stock or other securities the Optionee would have received if the Option had been exercised shall be determined in good faith by the Committee, and in the case of shares of the Common Stock of
the Company, in accordance with the provisions of Section 5(b). 
  
 In addition to the foregoing, the Committee may in its discretion amend the terms of an Option or Other Right by cancelling some or all of the restrictions on its exercise to permit its exercise to a greater extent than that permitted under
its existing terms. 
  
 A “Change of Control” of the
Company shall be deemed to have occurred if any person (as such term is used in Section 13(d) and 14(d)(2) of the Exchange Act) other than a trust related to an employee benefit plan maintained by the Company becomes the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of fifty percent (50%) or more of the Company’s outstanding Common Stock, and within the period of twenty-four (24) consecutive months immediately thereafter, individuals other than (a) individuals
who at the beginning of such period constitute the entire Board or (b) individuals whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the directors then still in office who
were directors at the beginning of the period, become a majority of the Board. 
  
 Except as expressly provided to the contrary in this Section 11, the issuance by the Company of shares of stock of any class for cash or property or for services, either upon direct sale or upon the exercise of rights
or warrants, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect the number, class or price of shares of Common Stock then subject to outstanding Options or Other Rights.

  

	 	12.	FORFEITURE FOR DISHONESTY 

  
 Notwithstanding anything to the contrary in the Plan, if the Board determines, after full consideration of the facts presented on behalf of both the
Company and an Optionee, that the Optionee has been engaged in fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his employment or other service relationship with the Company or a Subsidiary, which damaged the
Company or Subsidiary, or has disclosed trade secrets or other proprietary information of the Company or a Subsidiary: 
  
 (a) The Optionee shall forfeit all unexercised Options and Other Rights and all exercised Options and Other Rights under which the Company has not yet
delivered the certificates; and 
  
 (b) The Company shall have the
right to repurchase all or any part of the shares of Common Stock acquired by the Optionee upon the earlier exercise of any Option or Other Rights at a price equal to the amount paid to the Company upon such exercise, increased by an amount equal to
the interest that would have accrued in the period between the date of exercise and the date of such repurchase upon a debt in the amount of the exercise price, at the prime rate(s) announced from time to time during such period in the Federal
Reserve Statistical Release Selected Interest Rates. 
  
 The
decision of the Board as to the cause of an Optionee’s discharge and the damage done to the Company or a Subsidiary shall be final, binding, and conclusive. No decision of the Board, however, shall affect in any manner the finality of the
discharge of an Optionee by the Company or a Subsidiary. 
  

	 	13.	MISCELLANEOUS 

  
 (a) Nonassignability of Other Rights. No Other Rights shall be assignable or transferable by the Optionee except by will or the laws of descent and
distribution. During the life of the Optionee, Other Rights shall be exercisable only by the Optionee. 
  
 (b) No Guarantee of Employment or Continuation of Service Relationship. Neither the Plan nor any Stock Option Agreement, Restricted Stock
Agreement, SAR Agreement or similar agreement shall give an employee or other service provider the right to continue in the employment of or to continue to provide services to the Company or a Subsidiary, or give the Company or a Subsidiary the
right to require continued employment or services. 
  
 (c) Tax
Withholding. To the extent required by law, the Company (or a Subsidiary) shall withhold or cause to be withheld income and other taxes with respect to any income recognized by an Optionee by reason of the exercise or vesting of an Option or
Other Right, or a cash bonus paid in connection with such exercise or vesting, and as a condition to the receipt of any Option or Other Right or related cash bonus the Optionee shall agree that if the amount payable to him by the Company and any
Subsidiary in the ordinary course is insufficient to pay such taxes, then he shall upon the request of the Company pay to the Company an amount sufficient to satisfy its tax withholding obligations. 
  
 Without limiting the foregoing, the Committee may in its discretion permit
any Optionee’s withholding obligation to be paid in whole or in part in the form of shares of Common Stock by withholding from the shares to be issued or by accepting delivery from the Optionee of shares already owned by him; provided, however,
that payment of withholding obligation in the form of shares shall not be made with respect to an amount in excess of the minimum required withholding. The Fair Market Value of the shares for such purposes shall be determined as set forth in Section
5(b). If payment of withholding taxes is made in whole or in part in shares of Common Stock, the Optionee shall deliver to the Company certificates registered in his name representing shares of Common Stock legally and beneficially owned by him,
fully vested and free of all liens, claims, and encumbrances of every kind, duly endorsed or accompanied by stock powers duly endorsed by the record holder of the shares represented by such certificates. If the Optionee is subject to Section 16(a)
of the Exchange Act, his ability to pay his withholding obligation in the form of shares of Common Stock shall be subject to such additional restrictions as may be necessary to avoid any transaction that might give rise to liability under Section
16(b) of the Exchange Act. 
  
 (d) Use of Proceeds. The
proceeds from the sale of Common Stock pursuant to Options or Other Rights shall constitute general funds of the Company. 
  

 (e) Awards to Non-United States Persons. Awards may be made to Optionees who are foreign nationals
or employed outside the United States on such terms and conditions different from those specified in the Plan as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable laws. The Board shall
have the right to amend the Plan, consistent with its authority to amend the Plan as set forth in Section 14, to obtain favorable tax treatment for Optionees, and any such amendments shall be evidenced by an Appendix to the Plan. The Board may
delegate this authority to the Committee. 
  
 (f) Governing
Law. The granting of Awards and the issuance of Common Stock under the Plan shall be subject to all applicable laws and regulations and to such approvals by any governmental agency or national securities exchanges as may be required. To the
extent not preempted by Federal law, the Plan and all agreements hereunder shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, without regard to the principles of conflicts of law. 
  

	 	14.	EFFECTIVE DATE, DURATION, AMENDMENT AND TERMINATION OF PLAN 

  
 The Plan shall be effective as of April 1, 2003 if, and only if, the holders of a majority of the outstanding shares of capital stock present, or
represented, and entitled to vote thereon (voting as a single class) at a duly held meeting of the stockholders of the Company approve the Plan within twelve (12) months after such date. If so approved by the stockholders, the Committee may grant
Options and Other Rights under the Plan from time to time until the close of business on March 31, 2013. The Board may at any time amend the Plan; provided, however, that without approval of the Company’s stockholders there shall be no: (a)
increase in the total number of shares covered by the Plan, except by operation of the provisions of Section 11, or the aggregate number of shares of Common Stock that may be issued to any single person; (b) change in the class of persons eligible
to receive Awards under the Plan; or (c) other change in the Plan that requires stockholder approval under applicable law. No amendment shall adversely affect outstanding Options or Other Rights without the consent of the Optionee. The Plan may be
terminated at any time by action of the Board, but any such termination will not terminate Options and Other Rights then outstanding, without the consent of the Optionee.

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