Document:

Exhibit 10.1

EXHIBIT 10.1

JOINDER AND FIRST LOAN MODIFICATION AGREEMENT

This Joinder and First Loan Modification Agreement (this “Loan Modification Agreement”) is
entered into as of December 31, 2010, by and between (i) SILICON VALLEY BANK, a California
corporation with a loan production office located at 100 Matsonford Road, Building 5, Suite 555,
Radnor, Pennsylvania 19087 (“Bank”), (ii) SAFEGUARD SCIENTIFICS, INC., a Pennsylvania corporation
(“SFE”), with offices located at 435 Devon Park Drive, Building 800, Wayne, Pennsylvania 19087,
SAFEGUARD DELAWARE, INC., a Delaware corporation (“SDI”) and SAFEGUARD SCIENTIFICS (DELAWARE),
INC., a Delaware corporation, each with offices located at 1105 N. Market St., Suite 1300,
Wilmington, DE 19801 (individually and collectively, the “Borrower”); and (iii) SAFEGUARD DELAWARE
II, INC., a Delaware corporation (“New Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan
arrangement dated as of May 27, 2009, evidenced by, among other documents, a certain Amended and
Restated Loan and Security Agreement dated as of May 27, 2009, between Borrower and Bank (as
amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have
the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement (together with any other collateral security granted to Bank, the
“Security Documents”). Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

3. JOINDER AND ASSUMPTION. New Borrower has been formed by SDI and is a wholly owned
Subsidiary of SDI. New Borrower hereby joins the Loan and Security Agreement and each of the other
appropriate Loan Documents, and agrees to comply with and be bound by all of the terms, conditions
and covenants of the Loan and Security Agreement and each of the other appropriate Loan Documents,
as if New Borrower were originally named a “Borrower” and/or a “Debtor” therein. Without limiting
the generality of the preceding sentence, New Borrower hereby assumes and agrees to pay and perform
when due all present and future indebtedness, liabilities and obligations of SDI under the Loan
Agreement, including, without limitation, the Obligations. From and after the date hereof, all
references in the Loan Documents to “Borrower” and/or “Debtor” shall be deemed to refer to and
include New Borrower. Further, all present and future Obligations of SDI shall be deemed to refer
to all present and future Obligations of New Borrower. New Borrower acknowledges that the
Obligations are due and owing to Bank from Borrower including, without limitation, New Borrower,
without any defense, offset or counterclaim of any kind or nature whatsoever as of the date hereof.

4. GRANT OF SECURITY INTEREST. To secure the payment and performance of all of the
Obligations, New Borrower hereby grants to Bank a continuing lien upon and security interest in all
of New Borrower’s now existing or hereafter arising rights and interest in the Collateral, whether
now owned or existing or hereafter created, acquired, or arising, and wherever located, including,
without limitation, all of New Borrower’s assets listed on Exhibit A attached hereto and
all of New Borrower’s books relating to the foregoing and any and all claims, rights and interests
in any of the above and all substitutions for, additions, attachments, accessories, accessions and
improvements to and replacements, products, proceeds and insurance proceeds of any or all of the
foregoing. New Borrower represents, warrants, and covenants that the security interest granted
herein is and shall at all times continue to be a first priority perfected security interest in the
Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under
the Loan Agreement). If New Borrower shall acquire a commercial tort claim, such New Borrower
shall promptly notify Bank in a writing signed by such New Borrower of the general details thereof
and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory
to Bank. New Borrower further covenants and agrees that by its execution hereof it shall provide
all such information, complete all such forms, and take all such actions, and enter into all such
agreements, in form and substance reasonably satisfactory to Bank that are reasonably deemed
necessary by Bank in order to grant and continue a valid, first perfected security interest to Bank
in the Collateral. New Borrower hereby authorizes Bank to file financing statements, without
notice to any Borrower, with all appropriate jurisdictions in order to perfect or protect Bank’s
interest or rights hereunder, including a notice that any disposition of the Collateral, by either
any Borrower or any other Person, may be deemed to violate the rights of Bank under the Code. Such
financing statements may indicate
the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or
lesser scope, or with greater detail, all in Bank’s discretion.

 

 

 

5. SUBROGATION AND SIMILAR RIGHTS. Borrower (in each case including, without limitation,
New Borrower) waives any suretyship defenses available to it under the Code or any other applicable
law. Borrower waives any right to require Bank to: (i) proceed against any other Borrower or any
other Person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank
may exercise or not exercise any right or remedy it has against any Borrower or any security it
holds (including the right to foreclose by judicial or non-judicial sale) without affecting any
Borrower’s liability. Notwithstanding any other provision of this Loan Modification Agreement, the
Loan Agreement, or other Loan Documents, Borrower irrevocably waives all rights that it may have at
law or in equity (including, without limitation, any law subrogating such Borrower to the rights of
Bank under the Loan Agreement) to seek contribution, indemnification or any other form of
reimbursement from any other Borrower or any other Person now or hereafter primarily or secondarily
liable for any of the Obligations, for any payment made by a Borrower with respect to the
Obligations in connection with the Loan Agreement or otherwise and all rights that it might have to
benefit from, or to participate in, any security for the Obligations as a result of any payment
made by any Borrower with respect to the Obligations in connection with the Loan Agreement or
otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement
prohibited under this section shall be null and void. If any payment is made to any Borrower in
contravention of this section, such Borrower shall hold such payment in trust for Bank and such
payment shall be promptly delivered to Bank for application to the Obligations, whether matured or
unmatured.

6. REPRESENTATIONS AND WARRANTIES. Except as described in the revised Perfection
Certificate delivered in connection herewith, each Borrower hereby represents and warrants to Bank
that all representations and warranties in the Loan Documents made on the part of any Borrower are
true and correct on the date hereof with respect to New Borrower, with the same force and effect as
if New Borrower were originally named as “Borrower” in the Loan Documents. In addition, each
Borrower represents and warrants to Bank that this Loan Modification Agreement has been duly
executed and delivered by each such Borrower, and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

7. DESCRIPTION OF CHANGE IN TERMS.

	 	A.	 	Modifications to Loan Agreement.

	 	1	 	The Loan Agreement shall be amended by inserting the following
new clause (vi) immediately following Section 6.2(a)(v) thereof:

“(vi) when any Advances are outstanding, promptly when requested by Bank,
and in any event within one (1) Business Day after Bank’s request, copies of
any Letters of Intent related to the Private Security Portfolio that
Borrower has received and that has been utilized as the basis for any
increase in the Net Asset Value Report as it applies to any Private
Securities.”

	 	2	 	The Loan Agreement shall be amended by deleting the following
text appearing as Section 6.4 thereof:

“6.4 Operating Accounts.

(a) Other than (i) its payroll account, (ii) a collateral account with
Comerica Bank sufficient to secure the Clarient Guaranty and (iii) escrow
accounts established from time to time in the ordinary course of business in
connection with Permitted Investment transactions, maintain with Bank and/or
Bank’s Affiliates (x) all depository and operating accounts and (y) not less
than seventy-five percent (75%) (by value) of Borrower’s investment and
securities accounts.

 

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(b) Other than described in clause (a)(i), (a)(ii) and (a) (iii) above,
provide Bank five (5) days prior-written notice before establishing any
Collateral Account at or with any bank or financial institution other than
Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any
time maintains, Borrower shall cause the
applicable bank or financial institution (other than Bank) at or with which
any Collateral Account is maintained to execute and deliver a Control
Agreement or other appropriate instrument with respect to such Collateral
Account to perfect Bank’s Lien in such Collateral Account in accordance with
the terms hereunder, which Control Agreement may not be terminated without
the prior written consent of the Bank. The provisions of the previous
sentence shall not apply to deposit accounts exclusively used for payroll,
payroll taxes and other employee wage and benefit payments to or for the
benefit of Borrower’s employees and identified to Bank by Borrower as such.”

and inserting in lieu thereof the following:

“6.4 Operating Accounts.

(a) Other than (i) escrow accounts established from time to time in the
ordinary course of business in connection with Permitted Investment
transactions and (ii) depository, operating and/or securities accounts of
Subsidiaries of the Borrower which are not parties to the Loan Documents
that are maintained at financial institutions other than Bank and/or Bank’s
Affiliates in connection with Permitted Investment transactions, Borrower
shall maintain with Bank and/or Bank’s Affiliates (x) all depository and
operating accounts and (y) not less than the lesser of (i) seventy-five
percent (75%) (by value) of Borrower’s investment and securities accounts or
(ii) Eighty Million Dollars ($80,000,000).

(b) Other than as described in clause (a)(i) and (a)(ii) above, provide Bank
five (5) days prior-written notice before establishing any Collateral
Account at or with any bank or financial institution other than Bank or
Bank’s Affiliates. Other than as described in clause (a)(i) and (a)(ii)
above, for each Collateral Account that Borrower at any time maintains,
Borrower shall cause the applicable bank or financial institution (other
than Bank) at or with which any Collateral Account is maintained to execute
and deliver a Control Agreement or other appropriate instrument with respect
to such Collateral Account to perfect Bank’s Lien in such Collateral Account
in accordance with the terms hereunder, which Control Agreement may not be
terminated without the prior written consent of the Bank. The provisions of
the previous sentence shall not apply to deposit accounts exclusively used
for payroll, payroll taxes and other employee wage and benefit payments to
or for the benefit of Borrower’s employees and identified to Bank by
Borrower as such.”

	 	3	 	The Loan Agreement shall be amended by deleting the following
clause (d) from the definition of “Permitted Investments” contained in Section
13.1 thereof:

“(d) Investments of other Subsidiaries in or to other Subsidiaries or
Borrower and Investments by Borrower in other Subsidiaries that are not
parties to the Loan Documents in an amount not to exceed One Million Dollars
($1,000,000.00) in the aggregate in any fiscal year;”

and inserting in lieu thereof the following:

“(d) (i) Investments of other Subsidiaries in or to other Subsidiaries or
Borrower that are not parties to the Loan Documents in an amount not to
exceed One Million Dollars ($1,000,000.00) in the aggregate in any fiscal
year and (ii) Investments of Borrower in Subsidiaries that are not parties
to the Loan Documents, in an aggregate amount not to exceed Fifty Million
Dollars ($50,000,000.00) at any time;”

 

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	 	4	 	The Loan Agreement shall be amended by deleting the following
definition of “Revolving Line Maturity Date” from Section 13.1 thereof:

““Revolving Line Maturity Date” is December 31, 2010.”

and inserting in lieu thereof the following:

““Revolving Line Maturity Date” is December 31, 2012.”

	 	5	 	The Borrowing Base Certificate attached as Exhibit C to
the Loan Agreement is hereby deleted and replaced by Exhibit B attached
hereto.

	 
	 	6	 	The Compliance Certificate attached as Exhibit D to the
Loan Agreement is hereby deleted and replaced by Exhibit C attached
hereto.

8. CONDITIONS PRECEDENT. As a condition precedent to the effectiveness of this Loan
Modification Agreement and the Bank’s obligation to make further Advances under the Revolving Line,
the Bank shall have received the following documents prior to or concurrently with this Agreement,
each in form and substance satisfactory to the Bank:

	 	A.	 	Bank shall have received copies, certified by a duly authorized officer of each
Borrower (including, without limitation, New Borrower), to be true and complete as of
the date hereof, of each of (i) the governing documents of each Borrower (including,
without limitation, New Borrower) as in effect on the date hereof, (ii) the resolutions
of each Borrower (including, without limitation, New Borrower) authorizing the
execution and delivery of this Loan Modification Agreement, the other documents
executed in connection herewith and each Borrower’s performance of all of the
transactions contemplated hereby, and (iii) an incumbency certificate giving the name
and bearing a specimen signature of each individual who shall be so authorized on
behalf of each Borrower (including, without limitation, New Borrower);

	 
	 	B.	 	a good standing certificate of each Borrower (including, without limitation,
New Borrower), certified by the Secretary of State of the state of incorporation of
each respective Borrower (including, without limitation, New Borrower), together with a
certificate of foreign qualification from the Secretary of State (or comparable
governmental entity) of each state in which each Borrower (including, without
limitation, New Borrower) is qualified to transact business as a foreign entity, if
any, in each case dated as of a date no earlier than thirty (30) days prior to the date
hereof;

	 
	 	C.	 	certified copies, dated as of a recent date, of financing statement and other
lien searches of New each Borrower (including, without limitation, New Borrower), as
Bank may request and which shall be obtained by Bank, accompanied by written evidence
(including any UCC termination statements) that the Liens revealed in any such searched
either (i) will be terminated prior to or in connection with the Loan Modification
Effective Date, or (ii) in the sole discretion of Bank, will constitute Permitted
Liens;

	 
	 	D.	 	a filed copy, which shall be filed by Bank, acknowledged by the appropriate
filing office in the State of Delaware, of a UCC Financing Statement, naming New
Borrower as “Debtor” and Bank as “Secured Party”.

	 
	 	E.	 	a completed Perfection Certificate executed by Borrower, together with the duly
executed original signatures thereto;

	 
	 	F.	 	evidence satisfactory to Bank that the insurance policies required for New
Borrower by the Loan Agreement are in full force and effect, together with appropriate
evidence showing lender loss payable and/or additional insured clauses or endorsements
in favor of Bank; and

	 
	 	G.	 	such other documents as Bank may reasonably request.

9. FEES. Borrower shall reimburse Bank for all legal fees and expenses incurred in
connection with this amendment to the Existing Loan Documents.

10. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing
statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems
appropriate, in order to further perfect or
protect Bank’s interest in the Collateral, including a notice that any disposition of the
Collateral, by either the Borrower or any other Person, shall be deemed to violate the rights of
the Bank under the Code.

 

4

 

11. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

12. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

13. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no
offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby
expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

14. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force
and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan
Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the
Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will
be released by virtue of this Loan Modification Agreement.

15. RIGHT OF SET-OFF. In consideration of Bank’s agreement to enter into this Loan
Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security
interest and right of set off as security for all Obligations to Bank, whether now existing or
hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter
in the possession, custody, safekeeping or control of Bank or any entity under the control of
Silicon Valley Bank (including a Bank subsidiary) or in transit to any of them. At any time after
the occurrence and during the continuance of an Event of Default, without demand or notice, Bank
may set off the same or any part thereof and apply the same to any liability or obligation of
Borrower even though unmatured and regardless of the adequacy of any other collateral securing the
loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY
OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY
AND IRREVOCABLY WAIVED.

16. JURISDICTION/VENUE. Section 11 of the Loan Agreement is hereby incorporated by
reference in its entirety.

17. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it
shall have been executed by Borrower and Bank.

[The remainder of this page is intentionally left blank]

 

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This Loan Modification Agreement is executed as of the date first written above.

	 	 	 	 	 	 	 
	BORROWER:
	 
	 	 	 	 	 	 
	SAFEGUARD SCIENTIFICS, INC.
	 
	 	 	 	 	 	 
	By:	 	/s/ Stephen T. Zarrilli	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephen T. Zarrilli	 	 
	 

	 	Title:
	 	Senior Vice President and Chief Financial Officer
	 	 
	 
	 	 	 	 	 	 
	SAFEGUARD DELAWARE, INC.
	 
	 	 	 	 	 	 
	By:	 	/s/ Stephen T. Zarrilli	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephen T. Zarrilli	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	SAFEGUARD SCIENTIFICS (DELAWARE), INC.
	 
	 	 	 	 	 	 
	By:	 	/s/ Stephen T. Zarrilli	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephen T. Zarrilli	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	SAFEGUARD DELAWARE II, INC.
	 
	 	 	 	 	 	 
	By:	 	/s/ Stephen T. Zarrilli	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephen T. Zarrilli	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	BANK:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SILICON VALLEY BANK
	 
	 	 	 	 	 	 
	By:	 	/s/ Thomas F. Gordon	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Thomas F. Gordon	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

 

6Exhibit 10.1

Exhibit 10.1

Execution Copy

SECOND AMENDMENT TO CREDIT AGREEMENT

This SECOND AMENDMENT TO MULTICURRENCY REVOLVING CREDIT AND TERM LOAN AGREEMENT (this
“Second Amendment”) is made and entered into as of the 29th day of December,
2010, by and among LOJACK CORPORATION (“LoJack”), the Subsidiaries listed on Schedule 1 to
the Credit Agreement referred to below (collectively with LoJack, and together with the other
Persons that from time to time become Borrowers pursuant to the provisions of the Credit Agreement,
the “Borrowers”), the Guarantors listed on Schedule 1 to the Credit Agreement (collectively
with the other Persons that from time to time become Guarantors pursuant to the provisions of the
Credit Agreement, the “Guarantors”), the Lenders listed on Schedule 2 to the Credit
Agreement (collectively, the “Lenders”), RBS CITIZENS, N.A., as Administrative Agent for
itself and each of the other Lenders from time to time party to the Credit Agreement (the
“Agent”) and Lead Arranger, and TD BANK, N.A., as Issuing Bank. Capitalized terms used
herein without definition shall have the respective meaning assigned to such terms in the Credit
Agreement.

WHEREAS, the Borrowers, the Guarantors, the Lenders and the Agent are party to that certain
Multicurrency Revolving Credit Agreement, dated as of December 29, 2009 (as the same may be amended
and in effect from time to time, the “Credit Agreement”), pursuant to which the Lenders
have extended credit to the Borrowers on the terms set forth therein;

WHEREAS, the Borrowers and the Guarantors have requested certain amendments to the Credit
Agreement including, but not limited to, the extension of the Maturity Date until January 10, 2014;
and

WHEREAS, the Agent and the Required Lenders are willing to make such amendments to the Credit
Agreement on the terms set forth herein.

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

I. DEFINITIONS.

Capitalized terms used herein without definition shall have the meanings assigned to such
terms in the Credit Agreement. This Second Amendment shall constitute a Loan Document for all
purposes of the Credit Agreement and the other Loan Documents.

 

 

 

II. AMENDMENTS TO CREDIT AGREEMENT.

Effective as of the Second Amendment Date (as defined below), the Credit Agreement is hereby
amended as follows:

(1) Amendments to Section 1.1 (Definitions) of the Credit Agreement. Section 1.1 of
the Credit Agreement is hereby amended as follows:

(a) The table set forth in the definition of “Applicable Margin” is hereby deleted, and
the following is inserted in lieu thereof:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable Margin	 	 	 	 	 	 	 
	 	 	Consolidated Funded	 	 	For Eurodollar Rate	 	 	Applicable Margin	 	 	 	 
	 	 	Debt to Consolidated	 	 	Loans and Standby	 	 	For Base Rate	 	 	 	 
	Level	 	EBITDA Ratio	 	 	Letters of Credit	 	 	Loans	 	 	Commitment Fee	 
	I
	 	> 1.75:1	 	 	 	3.250	%	 	 	1.000	%	 	 	0.500	%
	II
	 	≥ 1.25:1 and ≤ 1.75:1	 	 	 	3.000	%	 	 	0.500	%	 	 	0.375	%
	III
	 	< 1.25:1	 	 	 	2.750	%	 	 	0.000	%	 	 	0.250	%

(b) The definition of “Consolidated EBITDA” is hereby amended by inserting the
following paragraph at the end thereof:

“For the purposes of calculating the financial covenants set forth in Article
10 hereof or otherwise, Consolidated EBITDA may be further adjusted from time to
time with the consent of the Required Lenders.”

(c) The definition of “Interest Payment Date” is hereby amended by inserting the
following clause (c) at the end thereof:

“and (c) as to any Eurodollar Rate Loan having an Interest Period of greater
than three months, the date that is three months following the beginning of such
Interest Period and the last Business Day of the applicable Interest Period.”

(d) The definition of “Maturity Date” is hereby amended by deleting the reference
therein to “the second (2nd) anniversary of the Closing Date” and inserting the
following in place thereof: “January 10, 2014.”

(e) The following definition of “Second Amendment Date” is hereby inserted in the
correct alphabetical position:

“Second Amendment Date. Means December 29, 2010.”

(2) Amendment to Section 2.2.1(b)(iii) of the Credit Agreement. Section 2.2.1(b)(iii)
of the Credit Agreement is hereby deleted, and the following is inserted in lieu thereof:

“(iii) the expiry date of such Letter of Credit would occur after the Letter of Credit
Expiration Date, unless the Issuing Bank has agreed to such expiry date and the Borrowers
have posted cash collateral covering 105% of the face amount of such Letter of Credit in a
manner acceptable to the Agent and the Issuing Bank;”

(3) Amendment to Section 7.2 (Subsidiaries) of the Credit Agreement. The first
parenthetical in Section 7.2 of the Credit Agreement is hereby deleted, and the following is
inserted in lieu thereof:

“(as the same may be deemed amended from time to time pursuant to § 8.9 hereof or as
otherwise agreed to by the Required Lenders, the “Disclosure Letter”)”

 

 

 

(4) Amendment to Section 9.10 (No Stock Repurchase) of the Credit Agreement. The
proviso set forth in Section 9.10 of the Credit Agreement is hereby deleted, and the following is
inserted in lieu thereof:

“provided, that, so long as no Default or Event of Default exists or would otherwise be
created by the consummation of such a repurchase transaction, LoJack may repurchase Capital
Stock not exceeding $10,000,000 in the aggregate for the period commencing on the Second
Amendment Date and ending on the Maturity Date.”

(5) Amendment to Schedule 2.1 (Authorized Representatives) to the Credit Agreement.
Schedule 2.1 to the Credit Agreement is hereby deleted and replaced with the restated Schedule 2.1
attached as Annex A hereto.

III. CONDITIONS TO EFFECTIVENESS:

This Second Amendment shall become effective when each of the following conditions is met
thereto (the “Second Amendment Date”):

(1) receipt by the Agent of this Second Amendment, duly and properly authorized, executed and
delivered by each of the respective parties;

(2) receipt by the Agent of certified copies of any amendments to the charter, articles of
incorporation and bylaws (or comparable organizational documents for the applicable jurisdiction)
of the Loan Parties executed since the Closing Date, certified in each instance by its Secretary,
Assistant Secretary or other duly authorized officer of such Loan Party;

(3) receipt by the Agent of copies of resolutions of the Board of Directors of the Loan
Parties (or similar governing body) authorizing the execution, delivery and performance of this
Second Amendment and the consummation of the transactions contemplated hereby, together with
specimen signatures of the persons authorized to execute this Second Amendment on its behalf, all
certified in each instance by its Secretary, Assistant Secretary or other duly authorized officer
of such Loan Party;

(4) receipt by the Agent of the certificates of good standing for each of the Loan Parties (or
the substantive equivalent certificates for Loan Parties outside of the United States) from the
office of the secretary of the state of its incorporation or organization and of each state or
jurisdiction in which it is qualified to do business as a foreign corporation or organization;

(5) receipt by the Agent of copies of UCC and other appropriate search reports (including
Intellectual Property) covering, in the case of each search, the period from the date of the most
recent search of that type delivered to the Agent through a recent date; and

(6) receipt by the Agent of an upfront commitment fee equal to $75,000 for the account of the
Lenders, which fee shall be nonrefundable for any reason whatsoever and shall be in addition to any
other fees, costs and expenses payable pursuant to the Credit Agreement and in connection with this
Second Amendment.

 

 

 

IV. REPRESENTATIONS AND WARRANTIES:

Each of the Borrowers and the Guarantors represent and warrant to the Agent and the Lenders as
follows:

(1) The execution, delivery and performance of this Second Amendment and the transactions
contemplated hereby (i) are within the corporate authority of each Borrower and Guarantor, (ii)
have been duly authorized by all necessary corporate proceedings of each Borrower and Guarantor,
(iii) do not conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which any Borrower or Guarantor is subject or any judgment, order,
writ, injunction, license or permit applicable to any Borrower or Guarantor, and (iv) do not
conflict with any provision of the governing documents of any Borrower or Guarantor.

(2) The execution, delivery and performance of this Second Amendment, and the Credit Agreement
as amended hereby, will result in valid and legally binding obligations of each Borrower and
Guarantor enforceable against each of them in accordance with the respective terms and provisions
hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights
and except to the extent that availability of the remedy of specific performance or injunctive
relief or other equitable remedy is subject to the discretion of the court before which any
proceeding therefor may be brought.

(3) The execution, delivery and performance by the Borrowers and the Guarantors of this Second
Amendment does not require any approval or consent of, or filing with, any governmental agency or
authority other than those already obtained, if any.

(4) The representations and warranties contained in Section 7 of the Credit Agreement
are true and correct in all material respects (if not qualified as to materiality or Material
Adverse Effect) or in any respect (if so qualified) as of the Second Amendment Date as though made
on and as of the Second Amendment Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct as
of such earlier date.

(5) After giving effect to this Second Amendment, no Default or Event of Default under the
Credit Agreement has occurred and is continuing.

 

 

 

V. MISCELLANEOUS:

(1) Ratification, Etc. Except as expressly amended hereby, the Credit Agreement, the
other Loan Documents and all documents, instruments and agreements related thereto are hereby
ratified and confirmed in all respects and shall continue in full force and effect. This Second
Amendment and the Credit Agreement shall hereafter be read and construed together as a single
document, and all references in the Credit Agreement, any other Loan Document or any agreement or
instrument related to the Credit Agreement shall hereafter refer to the Credit Agreement as amended
by this Second Amendment.

(2) Guarantor Consent. Each of the undersigned Guarantors has guaranteed all of the
Obligations under (and as defined in) the Credit Agreement. By executing this Second
Amendment, each Guarantor hereby absolutely and unconditionally reaffirms to the Lenders that
such Guarantor’s Guaranty remains in full force and effect and covers all Obligations under the
Credit Agreement. In addition, each Guarantor hereby acknowledges and agrees to the terms and
conditions of this Second Amendment (including, without limitation, the making of the
representations and warranties and the performance of the covenants applicable herein).

(3) Governing Law. THIS SECOND AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

(4) Counterparts. This Second Amendment may be executed in any number of counterparts
and by different parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which counterparts taken together shall be deemed to
constitute one and the same instrument. This Second Amendment, to the extent signed and delivered
by means of a facsimile machine or other electronic transmission in which the actual signature is
evident, shall be treated in all manner and respects as an original agreement or instrument and
shall be considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person. At the request of any party hereto, each other party hereto or
thereto shall re-execute original forms hereof and deliver them to all other parties. No party
hereto shall raise the use of a facsimile machine or other electronic transmission in which the
actual signature is evident to deliver a signature or the fact that any signature or agreement or
instrument was transmitted or communicated through the use of a facsimile machine or other
electronic transmission in which the actual signature is evident as a defense to the formation of a
contract and each party forever waives such defense.

 

 

 

IN WITNESS WHEREOF, each of the undersigned has duly executed this Second Amendment to Credit
Agreement as of the date first set forth above.

	 	 	 	 	 
	 	BORROWERS:

LOJACK CORPORATION

 	 
	 	By:  	/s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Executive Vice President and 
Chief Financial Officer 	 
	 
	 	LOJACK GLOBAL LLC

 	 
	 	By:  	/s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Executive Vice President and 
Chief Financial Officer 	 
	 
	 	LOJACK OPERATING COMPANY, L.P.

 	 
	 	By:  	LoJack Corporation, its General Partner
 	 
	 	 	 
	 	By:  	                                              /s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Executive Vice President and 
Chief Financial Officer 	 
	 
	 	LOJACK SAFETYNET, INC.

 	 
	 	By:  	/s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Treasurer 	 
	 
	 	BOOMERANG TRACKING, INC.

 	 
	 	By:  	/s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Vice President and Treasurer 	 

Signature Page to Citizens/LoJack Second Amendment

 

 

 

	 	 	 	 	 
	 	GUARANTOR:

LSC LOCATOR SYSTEMS INTERNATIONAL CORP.

 	 
	 	By:  	/s/ Timothy P. O’Connor
 	 
	 	 	Name:  	Timothy P. O’Connor 	 
	 	 	Title:  	Treasurer 	 

Signature Page to Citizens/LoJack Second Amendment

 

 

 

	 	 	 	 	 
	 	LENDERS:

RBS CITIZENS, N.A.

as Lender and Agent

 	 
	 	By:  	/s/ David J. Bugbee
 	 
	 	 	Name:  	David J. Bugbee 	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to Citizens/LoJack Second Amendment

 

 

 

	 	 	 	 	 
	 	TD BANK, N.A.,

as Lender and Issuing Bank

 	 
	 	By:  	/s/ Meg D. McIsaac
 	 
	 	 	Name:  	Meg D. McIsaac 	 

Signature Page to Citizens/LoJack Second Amendment

 

 

 

ANNEX A

Schedule 2.1 to the Credit Agreement

Richard T. Riley

Timothy P. O’Connor

John Barrett

Betsy Marble

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