Document:

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                                                                    Exhibit 10.4

         PLEDGE AND SECURITY AGREEMENT (the "Agreement"), dated as of September
5, 2002, made by Roberto Bonanni Rey, domiciled at ____________, Buenos Aires,
Argentina (hereinafter referred to as the "Pledgor"), in favor of LoJack
Recovery Systems Business Trust, a Massachusetts business trust, U.S.A.
("LoJack" or the "Pledgee", and together with the Pledgor, the "Parties").

                              W I T N E S S E T H:

         WHEREAS, the execution of this Agreement is a condition precedent for
LoJack to enter into a loan agreement (the "Loan Agreement") with Car Security
S.A. (the "Borrower" or the "Company", indistinctly), pursuant to which LoJack
has established a secured line of credit to a maximum limit of US$1,750,000 in
favor of the Company;;

         WHEREAS, in guarantee of the obligations of the Company under the Note
dated October 4, 2001, which reflects interim loans made by LoJack to the
Company, the Pledgor and LoJack entered into a pledge agreement on October 4,
2001 (the "Prior Pledge Agreement"), which shall be replaced and superceded by
this Agreement;

         WHEREAS, the Pledgor, as an officer and shareholder of the Borrower,
will benefit from the Advances made by the Lender to the Company under the Loan
Agreement;

         WHEREAS, the Pledgor has compromised to guarantee each and all of its
obligations under the Loan Agreement by means of a pledge on the Pledged Stock
(as hereinafter defined) and by means of a Guarantee Agreement (as hereinafter
defined);

         WHEREAS, the Pledgor is the legal and beneficial owner of the shares of
Pledged Stock (as hereinafter defined) issued by the Borrower; and

         WHEREAS, it is a condition precedent to such extensions of credit by
LoJack that the Pledgor shall have undertaken the obligations contemplated by
this Agreement;

         NOW, THEREFORE, in consideration of the premises and to induce LoJack
to make such advances to the Borrower, the Pledgor hereby agrees with the Lender
as follows:

         1. Defined Terms. The following terms shall have the following
meanings:

         "Agreement" means this Pledge and Security Agreement, as amended,
supplemented or otherwise modified from time to time;

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         "Actionable Event" shall mean any default in any of the obligations of,
and/or breach of the representations and warranties made by the Pledgor under
the Loan Agreement and/or the Guarantee Agreement dated as of September 5, 2002,
entered into by and between the Pledgor and LoJack or an affiliate of LoJack
(the "Guarantee Agreement"), including any event that causes the acceleration of
the amounts due under the Loan Agreement;

         "Pledged Stock" means the shares of capital stock of the Borrower
identified in Exhibit I hereto, together with the stock certificates (the
"Certificates") representing such shares, or stock dividends, options, warrants
or rights of any nature whatsoever, including amounts received due to capital
reductions, that may be received or receivable by or otherwise distributed to
the Pledgor in respect of or in exchange for any or all of such shares while
this Agreement is in effect. The term "Pledged Stock" shall also include any
shares as may be issued to the Pledgor by the Company on account of capital
increases, whether resulting from distributions paid in the form of shares,
capitalization of the capital adjustments account, reserves or accruals, or book
appraisal revaluation, as well as from the capitalization of irrevocable
contributions made on account of future capital subscriptions or contributions
of any other nature whatsoever, which interests are to be held by Pledgor.
Pledgor shall do and perform all acts and take all action necessary for the
Company to acknowledge the pledge on new shares referred to above, and do all
such further acts as may prove necessary to perfect the pledge in such
newly-issued shares.

         2. Pledge and Security Interest. (a) As collateral for the full and
timely compliance of any and all of Pledgor's obligations under the Loan
Agreement and the Guarantee Agreement, including, without limitation, payment
and/or reimbursement of principal, payment of interest due, default interest,
disbursements, consultants' and attorneys' fees due and payable and all other
additional charges and amounts owed by the Company to the Pledgee (the "Secured
Obligations"), the Pledgor hereby grants to LoJack a pledge of, first lien on
and security interest in, the Pledged Stock (the "Pledge").

(b) Pursuant to Section 3217 of the Argentine Civil Code, the Secured
Obligations amount to an estimated US$ 1,750,000 (U.S. dollars One Million Seven
Hundred Fifty Thousand) on account of principal, plus any compensatory and late
interest and any other additional charges and/or any other amount of money
payable by the Pledgor and/or the Company to the Pledgee under the Loan
Agreement and the Guarantee Agreement as well as all other obligations of
undetermined and/or contingent value accrued thereunder.

(c) The Pledge shall be perfected on the date of this Agreement, by:

          (i) providing notice thereof to the President of the Board of the
     Company on the terms contemplated in Exhibit II hereto;

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         (ii)  the annotation in the Stock Registry Book of the Company of the
         Pledge on the Pledged Stock; and

         (iii) delivery of the Certificates by the Pledgor to LoJack, with a
         legend, on the reverse of each Certificate, stating that the Pledged
         Stock is pledged and encumbered pursuant to the terms of this
         Agreement.

         3. Representations and Warranties. The Pledgor represents and warrants
to LoJack that:

(a)      The Pledged Stock of the Company listed on Exhibit I hereto, together
with any additional shares of stock delivered by the Pledgor to LoJack in
accordance with this Agreement, constitute 18% of the total issued and
outstanding shares of the Company, and the Pledged Stock is owned solely by the
Pledgor;

(b)      All the Pledged Stock has been duly authorized and validly issued and
is fully paid and nonassessable;

(c)      The Pledgor is the record and beneficial owner of, and has good title
to, the Pledged Stock listed on Exhibit I hereto, free of any and all liens or
options in favor of, or claims of, any other person, except the lien and
security interests created by this Agreement and by the Prior Pledge Agreement;

(d)      This Agreement is the legal and binding agreement of the Pledgor,
enforceable against the Pledgor in accordance with its terms; and

(e)      The execution, delivery and performance of this Agreement have been
duly and validly authorized by all necessary action on the part of the Pledgor.
No authorizations, approvals or consents of, and no filings or registrations
with, any governmental authority are necessary for the execution, delivery or
performance by the Pledgor of this Agreement, or for the validity or
enforceability of this Agreement.

(f)      There is (i) no provision of any law, statute, regulation, rule, order,
injunction, decree, writ or judgment binding upon Pledgor or its properties,
(ii) no provision of the by-laws, contrato social or other governing and
constitutive documents of the Company, as applicable or (iii) no provision of
any mortgage, indenture, contract or other agreement binding on the Pledgor
and/or the Company or affecting their properties, that would prohibit, conflict
with or in any way prevent its execution, delivery or performance of its
obligations under this Agreement.

         4. Voting Rights. (a) Except in the cases described in Section 4.(d)
below, the Pledgor shall be permitted to exercise all voting and corporate
rights with respect to the Pledged Stock; provided, however, that no vote shall
be cast or corporate right exercised or other action taken which may result in
any violation of any provision of this Agreement or the Guarantee Agreement.

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         (b) In order to enable the Pledgor to exercise its rights arising out
of, or resulting from, the ownership of the Pledged Stock as contemplated in
paragraph 4(a), upon request of the Pledgor, LoJack shall take such action as
may be reasonable to such effect; provided, however, that LoJack shall not be
required to take any action that would affect or have a reasonable likelihood of
affecting the Pledge.

         (c) The Pledgor acknowledges and accepts that any dividends and/or
return of capital paid on the Pledged Stock shall be subject to the pledge
granted hereunder, and will be used to prepay any and all amounts due under the
Loan Agreement, and therefore hereby irrevocably instructs the Company to pay
directly to LoJack or its successor or assignee, any such dividends and/or
returns until the amounts due under the Loan Agreement (including principal,
interest and any amounts due thereunder and/or under the Guarantee Agreement)
have been paid in full.

         (d) Upon the occurrence of an Actionable Event, the Pledgee shall be
entitled, at its sole election, to exercise all voting rights corresponding to
the Pledged Stock. For such purpose, Pledgor shall (i) provide the Pledgee with
all documents necessary to exercise the abovementioned rights, and (ii) hereby
grants an irrevocable power of attorney to the Pledgee as provided for in
Section 8 hereof.

         5.  Pledgor's Covenants. At its own expense and until the Secured
Obligations are fully discharged, Pledgor hereby undertakes as follows:

(a)      To give the Pledgor 10 (ten) day prior notice of any call for a Company
shareholders' and/or board of directors' meeting and subscribe, fully pay in and
give the Pledgor, within three (3) days of issuance, all certificates evidencing
new shares issued by the Company which are subject to the Pledge granted hereby.
Should the Pledgor fail to perform a share subscription obligation, Pledgor
shall notify the Pledgee of such circumstance by means of the abovementioned
notice, in order to enable the Pledgee, to exercise such rights in the name and
on behalf of the Pledgor.;

(b)      Not to convey, assign, transfer or otherwise dispose by any cause or
title of the Pledged Stock;

(c)      Not to grant further property rights in, pledges, liens and/or encumber
the Pledged Stock or otherwise affect them to restrictions or charge them in any
manner without the prior written consent of the Pledgee;

(d)      To furnish to the Pledgee all documents requested by it or by such
other person as the Pledgee may appoint for perfection of the Pledge granted
hereby, and do and perform such other acts as may prove necessary to maintain
the perfected security interest;

(e)      Not to take or fail to take any action if such action might negatively
affect any of the rights granted to the Pledgee hereunder, including, without
limitation, any action

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or omission that may result in the Pledgor's interest participation decreasing
to less than 80% (eighty per cent) of the capital of and voting rights in the
Company;

(f)      Should Pledgor vote for or take any other action to obtain an increase
in the capital of the Company, Pledgor shall subscribe and pay in such number of
shares as may be appropriate in proportion to its respective interest
participation in the Company's capital.

(g)      Not to call any meeting or vote on shareholders' meeting decisions
aimed at effecting a merger, spin-off, dissolution or liquidation of the Company
or an increase of its capital, issuance of new shares or exchange of existing
ones, without the prior written consent of the Pledgee.

(h)      Not to approve, propose or vote the declaration and/or payment of
distributions or dividends of the Company without the prior written consent of
the Pledgee.

(i)      To ensure that the Company shall comply with all statutes, executive
orders, ordinances and regulations applicable to it and to obtain and maintain
in full force and effect all permits, licenses, certificates, and authorizations
necessary for any activities and or transactions to be carried out by it.

(j)      Not to amend the Company's by-laws or other governing and constitutive
documents without the prior written consent of the Pledgee.

(k)      Not to execute shareholders' agreements or voting trusts agreements or
otherwise restrict the voting rights of the Pledged Stock, without the prior
written consent of the Pledgee.

         6.    Remedies. (a) In the event that an Actionable Event occurs,
LoJack at its sole option shall be entitled to sell any or all of the Pledged
Stock either:

         (i)   through a public sale;

         (ii)  through one or more private sales to one or more third parties;
              or

         (iii) by means of an auction pursuant to Section 585 of the Argentine
              Commercial Code.

(b)      The Pledgor hereby releases LoJack from any claims, causes of action
and demands at any time arising out of or with respect to this Agreement, the
Pledged Stock and and/or any actions taken or omitted to be taken by LoJack with
respect thereto and the Pledgor hereby agrees to hold LoJack harmless from and
with respect to any and all such claims, causes of action and demands, except in
the case any gross negligence or willful misconduct on the part of LoJack. If
any notice of a proposed sale or other disposition of the Pledged Stock shall be
required by law, such notice shall be deemed reasonable and proper if given at
least 10 days before such sale or other disposition.

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(c)      The Pledgor recognizes that LoJack may be unable to effect a public
sale of any or all the Pledged Stock, by reason of certain prohibitions
contained in any applicable securities laws and regulations, and may be
compelled to resort to one or more private sales thereof to a restricted group
of purchasers which will be obliged to agree, among other things, to acquire
such securities for their own account for investment and not with a view to the
distribution or resale thereof. The Pledgor acknowledges and agrees that any
such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner. LoJack shall be under no obligation to delay a sale of any of
the Pledged Stock for the period of time necessary to permit the Company to
register such securities for public sale under any securities laws and
regulations, even if the Company would agree to do so.

(d)      The Pledgor further agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to expedite such sale or sales of
all or any portion of the Pledged Stock, and to make such sale or sales,
pursuant to this Section 6 valid and binding and in compliance with any and all
other applicable requirements of law.

(e)      The proceeds of the sale of the Pledged Stock shall be applied to pay
(i) all the expenses, costs, fees and/or taxes payable related to the sale of
the Pledged Stock, and (ii) directly to the Pledgee all Secured Obligations due
to Pledgee pursuant to the Loan Agreement and the Guarantee Agreement;

(f)      In the event that the amounts received by the Pledgee as a result of
the sale of the Pledged Stock are paid in Argentine currency, and as a result of
statutory or force majeure restrictions, these may not be converted into U.S.
dollars and/or transferred to the place of payment set forth in Loan Agreement,
the Pledgee shall either invest all amounts so received in deposits in U.S.
dollars with a world-class entity of its choice operating in the city of Buenos
Aires, or invest such amounts in government securities denominated in foreign
currency, unless the Pledgee decides to carry out other financial transactions.
All such transactions as well as all gains or losses resulting therefrom shall
be recorded and credited to or debited from a special account to be opened by
the Pledgee for such purposes. Once restrictions on the transfer of currency
abroad are eliminated, or if the abovementioned securities may be converted into
or sold for U.S. dollars, whether in Argentina or on any foreign market, the
Pledgee shall make the appropriate transactions to transfer the proceeds thereof
to the place of payment set forth in the Loan Agreement. The Pledgor shall be
solely liable for any loss, expense or any other charge resulting from the
transactions detailed above. Furthermore, the Pledgor undertakes to hold the
Pledgee harmless from any damage, loss, expense or liability it may incur as a
result of or in connection with the abovementioned financial transactions. Any
and all amounts received by the Pledgee in Argentine currency shall not
discharge any obligation until converted into U.S. dollars and effectively
received by the Pledgee at the place of payment set forth in the Loan Agreement.

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(g)      Should the Pledgee acquire the Pledged Stock at the auction provided
for in this Section, and once deduction of all appropriate expenses and taxes
has been effected, the net price obtained shall be offset up to an amount equal
to the total amount (including interest, expenses, commissions and all other
additional charges payable) due under the Loan Agreement and the Guarantee
Agreement. Should the auction price be payable in Argentine currency and the
respective Secured Obligation be payable in U.S. Dollars, for offset purposes it
shall be considered the effective exchange rate at which the Pledgee may obtain
currency on the exchange market for transfer to the place of payment set forth
in the Loan Agreement. Otherwise, should this be illegal or not possible, an
exchange rate equal to the implied rate resulting from the acquisition of Global
Bonds of the Argentine Republic of any series selected by the Pledgee for a
price in Argentine currency and their subsequent sale for U.S. dollars, whether
in Argentina or abroad shall be applied. To such end, the Pledgee may use, for
reference purposes, the rates published by financial newspapers or the exchange
rate quoted by any world-class commercial bank.

(h)      Upon offset or payment as provided for in this Section 6, should any
Secured Obligations remain unpaid under the Loan Agreement or the Guarantee
Agreement, such allocation of funds shall not amount to or be deemed to
constitute a novation, amendment, replacement, modification and/or discharge of
any of such Secured Obligations and, accordingly, the Pledgor and the Company
shall remain liable to the Pledgee for full and timely performance and payment
of such Secured Obligations, with all their assets;

(i)      In the event that, after foreclosure on the Pledge and discharge of the
Secured Obligations, there is a remaining balance, such balance shall be
returned to the Pledgor by depositing the appropriate amount at such account as
Pledgor shall indicate in writing to the Pledgee;

(j)      In the event of judicial sale of the Pledged Stock, Pledgor hereby
waives his right to raise any defenses (including the right to disqualify the
acting court without cause), except for the defense of full or partial payment
duly evidenced by a document executed or issued by the Pledgee, as well as their
right to object to the Pledgee's standing to demand foreclosure on this pledge,
notwithstanding the assertion of rights in subsequent court proceedings.
Furthermore, the Pledgor expressly, irrevocably and to the fullest extent
permitted by law, waives his right to demand that an amount be deposited due to
lack of debtors' property in Argentina, as provided for in Section 348 of the
Argentine Code of Civil and Commercial Procedure, as well as any similar
defense;

(k)      In addition, the Pledgee may, at its sole option and pursuant to the
terms of Section 3223 of the Civil Code, become the owner of the Pledged Stock
for the total amount due under the Secured Obligations. In this case, the
Pledged Stock will be appraised on the date the outstanding Secured Obligations
become due and payable, at the value reasonably determined by the expert
appointed for that purpose by the Pledgee from any of the following firms:
Earnst & Young, PriceWaterhouseCoopers, MBA

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Banco de Inversiones or Goldman Sachs Argentina LLC, or their successors
entities, being all costs and expenses incurred in the appraisal at the
Pledgor's entire cost and expense.

(l)      Pledgor hereby represents and warrants as follows:

(i)      it is fully aware of the fact that, as of the date hereof, the value of
         the Preferred Stock might exceed the total liability existing as a
         result of the Secured Obligations;

(ii)     it is fully aware of the fact that, in the event of court or private
         foreclosure on this pledge, the value of the Pledged Stock might exceed
         the bidding base at the auction to be performed and the proceeds
         thereof;

(iii)    the Pledge on the Pledged Stock is constituted to induce LoJack to
         enter into the Loan Agreement with the Company; and

(iv)     in view of the foregoing and in the event of court or private
         foreclosure on the Pledge, the Pledgor hereby expressly waives its
         right to file any claims or complaints against the Pledgee or third
         parties, whether directly or indirectly based on the fact that the
         auction resulted in the sale of the Pledged Stock below their real
         value or such price as the Pledgor or any third party may deem to be
         the market value thereof.

(m)      Notwithstanding any contrary provision herein, the Pledgee shall be
expressly empowered to request court foreclosure on the pledge and to determine
whether court or private foreclosure shall be carried out, either in Argentina
or abroad.

         7. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         8. Attorney-in-Fact. Irrevocable Power of Attorney. Pledgor hereby
grants an irrevocable special power of attorney to LoJack or such other person
as the latter may appoint, to do the following acts in the name and on behalf of
Pledgor:

(a)      Should it deem it convenient in order to protect its claim, subscribe
and pay in the appropriate number of shares for the capital contributions
referred to in the definition of the term "Pledged Stock" and such number of
shares as may be necessary to maintain the same percentage of capital and voting
rights as pledged collateral. Shares so acquired shall become Pledged Stock
under the Pledge granted hereby; Pledgor shall, in all cases and at the sole
requirement of LoJack, effect a prompt reimbursement of the principal paid out
by Pledgee on such account plus any interest accruing from the date of payment
by Pledgee until the date of effective reimbursement

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by Pledgor. To such end, all amounts disbursed by Pledgee shall be translated
into U.S. dollars and become a part of the principal secured by the Pledge;
accordingly, for the purposes of this Agreement, they shall constitute Secured
Obligations;

(b)      Receive from the Company any distributions or dividends paid in the
form of shares to be made subject to the Pledge, as well as all other shares
that may be issued on any other account or for any other reason and which are to
be covered by this Pledge pursuant to the terms hereof;

(c)      In the event contemplated in Section 4(d) hereof, exercise all voting
rights carried by the Pledged Stock;

(d)      Transfer Pledged Stock to any person acquiring such interests by means
of an auction conducted as provided for herein;

(e)      Receive by way of subrogation, in the event of redemption of shares,
consolidation, spin-off, merger, capital reduction or winding up,
reorganization, transformation and liquidation of the Company, the shares to
which the Pledgor may be entitled in exchange for the Pledged Stock (which shall
become Pledged Stock hereunder) or, if applicable, the proceeds from the
redemption, reduction or winding up as well as any monies or property to be
received in the future as a result of the winding up and/or transfer of all or
part of the Pledged Stock and/or for any other reason or on any other account
having a similar effect.

(f)      Do and perform all such acts and execute all such public and private
documents as may be necessary or convenient for the better fulfillment of this
power of attorney.

In order to formalize this irrevocable power of attorney, Pledgor hereby agrees
to have such document notarized. For the purpose of complying with the
provisions of Section 1977 of the Argentine Civil Code, it is hereby expressly
agreed that the irrevocable power of attorney shall remain in full force and
effect until full termination of the Pledge on Pledged Stock granted hereby.
This power of attorney may be fully or partially substituted by the Pledgee.

         9.  Paragraph Headings. The paragraph headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

         10. No Waiver; Cumulative Remedies. No failure to exercise, nor any
delay in exercising, on the part of LoJack, any right, power or privilege
hereunder shall operate as a waiver thereof. No single or partial exercise of
any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A
waiver by LoJack, which shall only be valid if given in writing, of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which LoJack would otherwise have on any future occasion. The
rights and remedies herein provided are cumulative, may be exercised

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singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

         11. Waivers and Amendments; Successors and Assigns. None of the terms
of this Agreement may be amended, supplemented or otherwise modified except by a
written instrument executed by the Pledgor and LoJack. This Agreement shall be
binding upon the successors and assigns of the Pledgor and shall inure to the
benefit of LoJack and its respective successors and assigns. The Parties
acknowledge and accept that the Pledgee shall be entitled to assign this
Agreement to affiliate thereof or any third party, without the need of any
consent from the Pledgor, and therefore any such assignment shall in on way
affect the validity or enforceability of this Agreement.

         12. Governing Law. Jurisdiction. This Agreement shall be governed by,
and construed and interpreted in accordance with, the laws of the Republic of
Argentina. The Parties hereby submit themselves to the jurisdiction of the
Commercial Courts of the City of Buenos Aires (Tribunales Ordinarios en lo
Comercial de la Ciudad de Buenos Aires) for the purposes hereof, provided,
however, that none of the provisions of this Section 12 shall prevent Pledgee's
full exercise of the rights granted to it under Section 6 hereof in relation to
the private foreclosure of the pledge.

         13. Notices. Notices by LoJack to the Pledgor and the Company shall be
given in accordance with applicable law and, if by mail or by facsimile
transmission to the Pledgor, addressed or transmitted to the address or
transmission number set forth under its signature below, and if to the Company,
addressed or transmitted to the address or transmission number set forth under
its signature on the Acknowledgment and Consent below, and shall in both cases
be effective (a) in the case of mail or hand delivery, upon receipt, and (b) in
the case of facsimile notices, when sent.

         14. Irrevocable Authorization and Instruction to Company. The Pledgor
hereby authorizes and instructs the Company to comply with any instruction
received by it from LoJack in writing that (a) states that a notice of an
Actionable Event has been given and is outstanding and (b) is otherwise in
accordance with the terms of this Agreement, without any other or further
instructions from the Pledgor, and the Pledgor agrees that the Company shall be
fully protected in so complying.

         15. No Partial Release. Unseverability of Pledge. Pursuant to Section
3235 of the Argentine Civil Code, under no circumstances may the Pledgor
request, perform or attempt to request or perform a partial release of the
Pledged Stock.

         16. Termination. This Agreement shall terminate on the date on which
the amounts due under the Loan Agreement have been paid in full and all the
Secured Obligations are discharged at the Pledgee's entire satisfaction.

         17. Spouses Consent. The spouse of the Pledgor executes this Agreement
expressly granting her consent, as required by Section 1277 of the Argentine
Civil

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Code, to the pledge of the Pledged Stock, to all other share transfers that may
occur as a result of the foreclosure of the Pledge.

     18. Prior Pledge Agreement. This Agreement replaces and supercedes the
Prior Pledge Agreement.

     IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly
executed and delivered as of the date first above written.

-----------------
LoJack Recovery Systems Business Trust
Address for Notices: Westwood Executive Center,
                     200 Lowder Brook Road
                     Suite 1000
                     Westwood, MA 02090
                     United States of America.
Facsimile for Notices:      781 326-7255

_________________                                   _______________________
Roberto Bonanni Rey                                 Spouse
By:
Title:
Address for Notices:
Facsimile for Notices:

                           ACKNOWLEDGMENT AND CONSENT

     The undersigned, being the Company referred to in the foregoing Agreement,
hereby acknowledges receipt of a copy thereof and agrees to be bound thereby and
to comply with the terms thereof insofar as such terms are applicable to it. The
undersigned agrees that the terms of paragraph 14 of the Agreement shall apply
to it, with respect to all actions that may be required of it under or pursuant
to or arising out of the Agreement.

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-----------------
Car Security S.A.
By:
Title:
Address for Notices:  Av. Del Libertador 4598 1(0)
Facsimile for Notices:

                                       12

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                                    Exhibit I

                          Description of Pledged Stock

All shares of Car Security S.A. held by Pledgor, more particularly described as
follows:

             Stock Certificate Number                 Number of Shares
             ------------------------                 ----------------

<PAGE>

                                   Exhibit II

                            Form of Notice of Pledge

<PAGE>

Messrs.
Car Security S.A.
Avenida del Libertador 4600
(1426) Buenos Aires
Argentina

Dear Sirs,

     You are hereby instructed to duly register and take notice of the creation
of a first priority pledge in __________ ordinary registered certificated
outstanding shares of Car Security S.A. (the "Company"), representing __% of the
outstanding voting issued share capital of the Company that are owned by (the
"Shares") the undersigned, in favor of LoJack Corporation ("LoJack") under the
Pledge and Security Agreement dated as of ___________ between LoJack and
Pledgor. You are hereby further instructed not to register any sale, transfer or
disposition of, nor lien on, the Shares, unless so instructed by, or consented
by, LoJack. This notice and instructions are delivered to the Company as
provided in, and in accordance with, Section 215 of Argentine Law No. 19,550, as
amended.

________________
Roberto Bonanni Rey
By:
Title:<PAGE>

                                                                    Exhibit 10.5

                                    GUARANTEE

       GUARANTEE dated as of September 5, 2002 made by Carlos Mackinlay, an
individual residing at Avenida Figueroa Alcorta 3478, ____, Argentina (the
"Guarantor") in favor of LoJack Recovery Systems Business Trust, a Massachusetts
business trust (the "Lender").

                              W I T N E S S E T H :

       WHEREAS, Car Security S.A. (the "Borrower") and the Lender have entered
into a Loan Agreement dated as of the date hereof, superceding a Bridge Loan
Agreement of October 4, 2001 (as the same may be amended, modified,
supplemented, extended or restated from time to time, the "Loan Agreement"),
providing, subject to the terms and conditions thereof, for a loan (the "Loan")
to be made by the Lender to the Borrower;

       WHEREAS, the Guarantor, as an officer and shareholder of the Borrower,
will benefit from the Loan by the Lender pursuant to the Loan Agreement; and

       WHEREAS, it is a condition precedent to the extensions of credit by the
Lender under the Loan Agreement that the Guarantor shall have undertaken the
obligations contemplated by this Guarantee;

       NOW, THEREFORE, in consideration of the premises and to induce the Lender
to make advances to the Borrower thereunder, the Guarantor hereby agrees with
the Lender as follows:

       1. Defined Terms. Unless otherwise defined herein, terms which are
defined in the Loan Agreement and used herein are so used as so defined.

       2. Guarantee. The Guarantor hereby unconditionally and irrevocably
guarantees to the Lender the prompt and complete payment and performance when
due (whether at stated maturity, by acceleration or otherwise) of all present
and future obligations, indebtedness and liabilities, and all renewals and
extensions of all or any part thereof, as principal payor and not merely as
surety, of the Borrower to the Lender arising from, by virtue of, or pursuant to
the Loan Agreement, the Note or any other Loan Document, including any
extensions, modifications, substitutions, amendments and renewals thereof,
whether for principal, interest, fees, premium, expenses, indemnification or
otherwise, and including, without limitation, all such amounts that would be
owed by the Borrower to the Lender under any Loan Document but for the fact that
they are not allowable due to the existence of a bankruptcy insolvency,
reorganization, arrangement, readjustment, composition, liquidation or similar
proceeding with respect to the Borrower (collectively, the "Obligations"). The
Guarantor further agrees to pay any and all expenses (including, without
limitation, all fees and disbursements of counsel to the Lender) which may be
paid or incurred by the Lender in enforcing, or obtaining advice of counsel in
respect of, any of its rights under this Guarantee. This Guarantee shall remain
in full force and effect until the Obligations are paid in full.

       3. Right of Set-off. Regardless of the adequacy of any collateral or
other means of obtaining repayment of the Obligations, any deposits (general or
special, time or demand, provisional or final) and any other indebtedness at any
time held or owing by the Lender to the Guarantor may, at any time and from time
to time after the occurrence of an Event of Default,

<PAGE>

without notice to the Guarantor or compliance with any other conditions
precedent now or hereafter imposed by statute, rule of law, or otherwise (all of
which are hereby expressly waived to the extent permitted by law) be set off,
appropriated, and applied by the Lender against any and all obligations of the
Guarantor to the Lender (irrespective of whether such obligations may be
contingent or unmatured at such time) in such manner as the Lender in its sole
discretion may determine, and the Guarantor hereby grants the Lender a
continuing security interest in such deposits and indebtedness for the payment
and performance of such obligations.

       4. Subrogation and Contribution. The Guarantor irrevocably and
unconditionally waives any and all rights to which the Guarantor may be
entitled, by operation of law or otherwise, to be subrogated, with respect to
any payment made by the Guarantor hereunder, to the rights of the Lender against
the Borrower, or otherwise to be reimbursed, indemnified or exonerated by the
Borrower in respect thereof or to receive any payment, in the nature of
contribution or for any other reason, from any other guarantor of the
Obligations with respect to any payment made by the Guarantor hereunder.

       5. Effect of Bankruptcy Stay. If acceleration of the time for payment or
performance of any of the Obligations is stayed upon the insolvency, bankruptcy
or reorganization of the Borrower or any other Person or otherwise, all such
amounts otherwise subject to acceleration shall nonetheless be payable by the
Guarantor under this Guarantee forthwith upon demand.

       6. Guarantor Representations and Warranties. The Guarantor confirms,
represents and warrants to the Lender that (A) the Guarantor has received true
and complete copies of the Loan Agreement and the other Loan Documents from the
Borrower, has read the contents thereof and reviewed the same with legal counsel
of his choice; (B) no representations or agreements of any kind have been made
to the Guarantor which would limit or qualify in any way the terms of this
Guarantee; (C) this Guarantee is executed at the Borrower's request and not at
the request of the Lender; (D) the Lender has made no representation to the
Guarantor as to the creditworthiness of the Borrower; and (E) the Guarantor has
established adequate means of obtaining from the Borrower on a continuing basis
information regarding the Borrower's financial condition. The Guarantor agrees
to keep adequately informed from such means of any facts, events, or
circumstances which might in any way affect the Guarantor's risks under this
Guarantee, and the Guarantor further agrees that the Lender shall have no
obligation to disclose to the Guarantor any information or documents acquired by
the Lender in the course of its relationship with the Borrower.

       7. Amendments, etc. with respect to the Obligations. The obligations of
the Guarantor under this Guarantee shall remain in full force and effect without
regard to, and shall not be released, altered, exhausted, discharged or in any
way affected by any circumstance or condition (whether or not the Borrower shall
have any knowledge or notice thereof), including without limitation (A) any
amendment or modification of or supplement to the Loan Agreement or any other
Loan Document, or any obligation, duty or agreement of the Borrower or any other
Person thereunder or in respect thereof, (B) any assignment or transfer in whole
or in part of any of the Obligations, (C) any furnishing or acceptance of any
direct or indirect security or guaranty, or any release of or non-perfection or
invalidity of any direct or indirect security or guaranty, for any of the
Obligations, (D) any waiver, consent, extension, renewal, indulgence,
settlement, compromise or other action or inaction under or in respect of the
Loan Agreement or any other

                                      -2-

<PAGE>

Loan Document, or any exercise or nonexercise of any right, remedy, power or
privilege under or in respect of any such instrument (whether by operation of
law or otherwise), (E) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or similar proceeding with respect to the
Borrower or any other Person or any of their respective properties or creditors
or any resulting release or discharge of any Obligations, (F) the voluntary or
involuntary sale or other disposition of all or substantially all the assets of
the Borrower or any other Person, (G) the voluntary or involuntary liquidation,
dissolution or termination of the Borrower or any other Person, (H) any
invalidity or unenforceability, in whole or in part, of any term hereof or of
the Loan Agreement or any other Loan Document, or any obligation, duty or
agreement of the Borrower or any other Person thereunder or in respect thereof,
or any provision of any applicable law or regulation purporting to prohibit the
payment or performance by the Borrower or any other Person of any Obligations,
(I) any failure on the part of the Borrower or any other Person for any reason
to perform or comply with any term of the Loan Agreement or any other Loan
Document or any other agreement, or (J) any other act, omission or occurrence
whatsoever, whether similar or dissimilar to the foregoing. The Guarantor
authorizes the Borrower, each other guarantor in respect of Obligations and the
Lender at any time in its discretion, as the case may be, to alter any of the
terms of Obligations.

       8. Guarantor as Principal. If for any reason the Borrower or any other
Person is under no legal obligation to discharge any Obligations, or if any
other moneys included in Obligations have become unrecoverable from the Borrower
or any other Person by operation of law or for any other reason, including,
without limitation, the invalidity or irregularity in whole or in part of any
Obligation or of the Loan Agreement or any other Loan Document, the legal
disability of the Borrower or any other obligor in respect of Obligations, any
discharge of or limitation on the liability of the Borrower or any other person
or any limitation on the method or terms of payment under any Obligation, or of
the Loan Agreement or any other Loan Document, which may now or hereafter be
caused or imposed in any manner whatsoever (whether consensual or arising by
operation of law or otherwise), this Guarantee shall nevertheless remain in full
force and effect and shall be binding upon the Guarantor to the same extent as
if the Guarantor at all times had been the principal obligor on all Obligations.

       9. Waiver of Demand, Notice, Etc. The Guarantor hereby waives, to the
extent not prohibited by applicable law, (A) all presentments, demands for
performance, notice of nonperformance, protests, notices of protests and notices
of dishonor in connection with the Obligations or the Loan Agreement or any
other Loan Document, including but not limited to notice of additional
indebtedness constituting Obligations or the existence, creation or incurring of
any new or additional indebtedness or obligation or of any action or non-action
on the part of the Borrower, the Lender, any endorser or creditor of the
Borrower or any other Person; (B) any notice of any indulgence, extensions or
renewals granted to any obligor with respect to Obligations; (C) any requirement
of diligence or promptness in the enforcement of rights under the Loan Agreement
or any other Loan Document, or any other agreement or instrument directly or
indirectly relating thereto or to the Obligations; (D) any enforcement of any
present or future agreement or instrument relating directly or indirectly
thereto or to the Obligations; (E) notice of any of the matters referred to in
Paragraph 8 above, (F) any defense of any kind which the Guarantor may now have
with respect to his liability under this Guarantee; (G) any right to require the
Lender, as a condition of enforcement of this Guarantee, to proceed against the
Borrower or any other Person or to proceed against or exhaust any security held
by the Lender at

                                      -3-

<PAGE>

any time or to pursue any other right or remedy in the Lender's power before
proceeding against the Guarantor; (H) any defense that may arise by reason of
the incapacity, lack of authority, death or disability of any other Person or
Persons or the failure of the Lender to file or enforce a claim against the
estate (in administration, bankruptcy, or any other proceeding) of any other
Person or Persons; (I) any defense based upon an election of remedies by the
Lender; (J) any defense arising by reason of any "one action" or
"anti-deficiency" law or any other law which may prevent the Lender from
bringing any action, including a claim for deficiency, against the Guarantor,
before or after the Lender's commencement of completion of any foreclosure
action, either judicially or by exercise of a power of sale; (K) any defense
based upon any lack of diligence by the Lender in the collection of any
Obligation; (L) any duty on the part of the Lender to disclose to the Guarantor
any facts the Lender may now or hereafter know about the Borrower or any other
obligor in respect of Obligations; (M) any defense arising because of an
election made by the Lender under Section 1111(b)(2) of the Federal Bankruptcy
Code; (N) any defense based on any borrowing or grant of a security interest
under Section 364 of the Federal Bankruptcy Code; (O) any defense based upon or
arising out of any defense which the Borrower or any other Person may have to
the payment or performance of Obligations (including but not limited to failure
of consideration, breach of warranty, fraud, payment, accord and satisfaction,
strict foreclosure, statute of frauds, bankruptcy, infancy, statute of
limitations, lender liability and usury) and (P) any right contemplated by
Articles 480 (second paragraph), 481 and 482 of the Argentine Commercial Code as
well as any rights and powers contemplated by Articles 1990, 1994, 2012, 2015,
2017, 2018, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2028, 2029, 2043, 2044,
2045, 2046, 2047, 2049 and 2050 of the Argentine Civil Code. Guarantor
acknowledges and agrees that each of the waivers set forth herein on the part of
the Guarantor is made with Guarantor's full knowledge of the significance and
consequences thereof and that under the circumstances the waivers are
reasonable. If any such waiver is determined to be contrary to any applicable
law or public policy, such waiver shall be effective only to the extent
permitted by such law or public policy.

       10. Reinstatement. This Guarantee shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations is rescinded or must otherwise be restored or returned by
the Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any substantial part of its property, or otherwise, all as though
such payments had not been made.

       11. Payments. The Guarantor hereby agrees that the Obligations will be
paid to the Lender without set-off or counterclaim in U.S. Dollars at the office
of the Lender located at Westwood Executive Center, 200 Lowder Brook Road, Suite
1000, Westwood, MA 02090, United States of America, or to such other location as
the Lender shall notify the Guarantor.

       12. Representations and Warranties. The Guarantor represents and warrants
that:

             (A) Enforceability. This Guarantee constitutes a valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and except as

                                      -4-

<PAGE>

enforceability may be subject to general principles of equity, whether such
principles are applied in a court of equity or at law.

              (B) No Violation. The execution, delivery and performance of this
Guarantee will not contravene any provision of law, statute, rule or regulation
to which the Guarantor is subject or any judgment, decree, franchise, order or
permit applicable to the Guarantor, or will conflict or will be inconsistent
with or will result in any breach of, any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien upon any of the
property or assets of the Guarantor pursuant to the terms of any contractual
obligation affecting the Guarantor.

              (C) Litigation. There are no actions, suits or proceedings pending
or threatened against or affecting the Guarantor before any governmental
authority, which in any one case or in the aggregate, if determined adversely to
the interests of the Guarantor, would have a material adverse effect on the
assets or properties of the Guarantor.

       13. Subordination of Claims against Borrower. Without limiting the
provisions of Paragraph 4 hereof, the Guarantor hereby irrevocably agrees that
any and all claims which the Guarantor may now or hereafter have against the
Borrower or any other guarantor of the Obligations, including, without
limitation, the benefit of any setoff or counterclaim or proof against dividend,
composition or payment by the Borrower or such other guarantor, shall be subject
and subordinate to the prior payment in full of all of the Obligations to the
Lender. After the occurrence of a Default, the Guarantor shall not claim from
the Borrower or such other guarantor, or with respect to any of their respective
properties, any sums which may be owing to the Guarantor, or have the benefit of
any setoff or counterclaim or proof against dividend, composition or payment by
the Borrower or such other guarantor, until the Obligations shall have been paid
in full. Should any payment or distribution or security or the benefit of
proceeds thereof be received by the Guarantor upon or with respect to amounts
due to him from the Borrower or any other guarantor of the Obligations after a
Default has occurred and prior to the payment in full of all Obligations, the
Guarantor will forthwith deliver the same to the Lender in precisely the form
received (except for endorsement or assignment where necessary), for application
in or towards repayment of the Obligations and, until so delivered, the same
shall be held in trust as property of the Lender. In the event of the failure of
the Guarantor to make any such endorsement or assignment, the Lender is hereby
irrevocably authorized to make the same on behalf of the Guarantor.

       14. Severability. Any provision of this Guarantee which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

       15. Paragraph Headings. The paragraph headings used in this Guarantee are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

                                      -5-

<PAGE>

       16. No Waiver, Cumulative Remedies. The Lender shall not by any act
(except by a written instrument pursuant to Paragraph 17 hereof), delay,
indulgence, omission or otherwise, be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any
breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the Lender, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
A waiver by the Lender of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Lender would
otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of
any rights or remedies provided by law.

       17. Waivers and Amendments; Successors and Assigns. None of the terms or
provisions of this Guarantee may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the Guarantor and the
Lender, provided that any provision of this Guarantee may be waived by the
Lender in a letter or agreement executed by the Lender or by telecopy from the
Lender. This Guarantee shall be binding upon the successors and permitted
assigns of the Guarantor and shall inure to the benefit of the Lender and its
successors and assigns. The Guarantor shall not assign its rights or obligations
under this Guarantee without the prior written consent of the Lender or its
successors and assigns.

       18. WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION; GOVERNING LAW. THE
GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT THE GUARANTOR MAY NOW OR HEREAFTER
HAVE TO A JURY TRIAL IN ANY SUIT, ACTION OR PROCEEDING WHICH ARISES OUT OF OR BY
REASON OF THIS GUARANTEE, ANY LOAN DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

       BY THE GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTEE, THE
GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH THE GUARANTOR'S PROPERTIES,
GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN
ANY ACTION, SUIT OR PROCEEDING OF ANY KIND AGAINST THE GUARANTOR WHICH ARISES
OUT OF OR BY REASON OF THIS GUARANTEE, ANY LOAN DOCUMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY, IN ADDITION TO ANY OTHER COURT IN WHICH SUCH ACTION, SUIT
OR PROCEEDING MAY BE BROUGHT, IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED BY ANY SUCH COURT IN ANY SUCH ACTION, SUIT OR PROCEEDING IN WHICH THE
GUARANTOR SHALL HAVE BEEN SERVED WITH PROCESS IN THE MANNER HEREINAFTER
PROVIDED, AND TO THE EXTENT THAT THE GUARANTOR MAY LAWFULLY DO SO, WAIVES AND
AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, IN SUCH
ACTION, SUIT OR PROCEEDING ANY CLAIMS THAT THE GUARANTOR IS NOT PERSONALLY
SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT THE GUARANTOR'S PROPERTY IS

                                      -6-

<PAGE>

EXEMPT OR IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE ACTION, SUIT OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE THEREOF IS
IMPROPER, AND AGREES THAT PROCESS MAY BE SERVED UPON THE GUARANTOR IN ANY SUCH
ACTION, SUIT OR PROCEEDING IN THE MANNER PROVIDED BY CHAPTER 223A OF THE GENERAL
LAWS OF MASSACHUSETTS, RULE 4 OF THE MASSACHUSETTS RULES OF CIVIL PROCEDURE OR
RULE 4 OF THE FEDERAL RULES OF CIVIL PROCEDURE.

       TO THE EXTENT THAT THE GUARANTOR MAY BE ENTITLED TO THE BENEFIT OF ANY
PROVISION OF LAW REQUIRING ANY LENDER PARTY IN ANY SUIT, ACTION OR PROCEEDING
BROUGHT IN A COURT OF ARGENTINA OR OTHER JURISDICTION ARISING OUT OF OR IN
CONNECTION WITH THIS GUARANTY OR THE TRANSACTION DOCUMENTS AND THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY, TO POST SECURITY FOR LITIGATION COSTS OR
OTHERWISE POST A PERFORMANCE BOND OR GUARANTY ("CAUTIO JUDICATUM SOLVI" OR
"EXCEPCION DE ARRAIGO"), OR TO TAKE ANY SIMILAR ACTION, THE GUARANTOR HEREBY
IRREVOCABLY WAIVES SUCH BENEFIT, IN EACH CASE TO THE FULLEST EXTENT NOW OR
HEREAFTER PERMITTED UNDER THE LAWS OF ARGENTINA OR, AS THE CASE MAY BE, SUCH
OTHER JURISDICTION

       THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

       19. Notices. All notices under this Guarantee shall be in writing, and
shall be delivered by hand, by a nationally recognized commercial overnight
delivery service, by first class mail or by telecopy, delivered, addressed or
transmitted, if to the Lender, at its address or telecopy number set forth in
the Loan Agreement, and if to the Guarantor, at the Guarantor's address or
telecopy number set out below the Guarantor's signature in this Guarantee. Such
notices shall be effective (A) in the case of hand deliveries, when received,
(B) in the case of an overnight delivery service, on the next Business Day after
being placed in the possession of such delivery service, with delivery charges
prepaid, (C) in the case of mail, three days after deposit in the postal system,
first class postage prepaid and (D) in the case of telecopy notices, when
electronic indication of receipt is received. Either party may change its
address and telecopy number by written notice to the other.

       20. Currency. All payments by the Guarantor hereunder shall be made in
United States Dollars ("Dollars") and payment in such currency shall be of the
essence of this Guaranty. If due to exchange controls in Argentina or
restrictions in the transfer of foreign currency outside of Argentina, the
Guarantor shall be prevented from making any payment due hereunder in Dollars,
it may (i) deliver to the Lender Global External Bonds of the Republic of
Argentina of any issue chosen by the Lender or any other public bond issued by
the Federal Government of Argentina denominated in Dollars and freely exportable
in a quantity sufficient to acquire in New York the amount of Dollars owed
hereunder, exclusive of any taxes, commissions, fees or other costs, or (ii) pay
all amounts due hereunder in Dollars through any other legal mechanism for the

                                      -7-

<PAGE>

acquisition of Dollars in any exchange market. Any such payment will only be
considered to be effected upon the receipt by the Lender Parties of the Dollars
due hereunder.

       21. Supercedes Prior Agreement. This Agreement supercedes the provisions
of that certain Interim Guarantee dated October 4, 2001 between the parties
hereto, which prior agreement shall be of no further force or effect. The
undersigned hereby acknowledges that all amounts guaranteed under such Interim
Guarantee shall remain guaranteed pursuant hereto.

       IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Guarantee as of the date first above written.

                                     __________________________________
                                     Carlos Mackinlay

                                     Address:

                                     Av. Figueroa Alcota 3478,
                                     (1425) Buenos Aires
                                     Argentina

                                     Telecopy No.: ____________________

                                      -8-

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