Document:

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                                                                   Exhibit 10.37

                           TRADEMARK LICENSE AGREEMENT

                                     between

                                 AUTOIMMUNE INC.

                                       and

                                  COLLORAL LLC

                           dated as of August 19, 2002

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                           TRADEMARK LICENSE AGREEMENT

     THIS AGREEMENT is made and entered into this 19/th/ day of August, 2002, by
and between AutoImmune Inc., a Delaware corporation ("AutoImmune") and COLLORAL
LLC, a Delaware limited liability company ("Company").

                                    RECITALS:

     A. AutoImmune is the owner of the trademark, COLLORAL(R), for use in
connection with pharmaceutical and neutraceutical preparations for use in the
treatment of autoimmune diseases and food supplements;

     B. Pursuant to the terms of a certain License Agreement of even date
herewith between AutoImmune and Company, AutoImmune is licensing certain
technology to Company in order to enable Company to manufacture, market and sell
a non-prescription product for the treatment of arthritic conditions;

     C. Company desires to use the trademark, COLLORAL, as the name of the
product being manufactured, marketed and sold under the Technology License; and

     D. AutoImmune has agreed to license the trademark to Company on the terms
and conditions set forth in this Agreement;

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and in consideration of the promises made herein,
Company and AutoImmune hereby agree as follows:

1.   DEFINITIONS

     (a) "License" means the rights granted to Company in the first sentence of
Section 2.

     (b) "Patent Rights" has the meaning set forth for such term in the
Technology License.

     (c) "Product" means a non-prescription product for the treatment of
arthritic conditions that but for the license rights granted to Company in the
Technology License would be within a Valid Claim of a pending patent application
or issued patent included in the Patent Rights.

     (d) "Technology License" means the License Agreement of even date herewith
between AutoImmune and the Company.

     (e) "Trademark" means the word mark, COLLORAL.

     (f) "Valid Claim" has the meaning set forth for such term in the Technology
License.

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2.   LICENSE GRANT

     (a) Grant. Subject to the terms and conditions of this Agreement,
AutoImmune hereby grants to Company, and Company hereby accepts, an exclusive,
worldwide, royalty-free right and license to use the Trademark under the common
law and under the auspices and privileges provided by the registration(s)
covering the same in connection with the manufacture, marketing and sale of the
Product.

     (b) Sublicenses. Company shall have the right to sublicense the License
with the prior written consent of AutoImmune. A copy of each sublicense granted
by Company under this Agreement shall be furnished to AutoImmune promptly after
execution thereof. Any such sublicense shall conform to the terms hereof, and
Company shall be responsible for the performance by its sublicensees of all
obligations imposed under the terms of this Agreement.

3.   TITLE

     (a) Title in AutoImmune. Company acknowledges AutoImmune's ownership of the
Trademark and that all use of the Trademark by Company and its sublicensees
shall inure to the benefit of AutoImmune. Company shall not do anything that is
inconsistent with such ownership and shall neither acquire nor claim any title
to the Trademark by virtue of the License or Company's use of the Trademark.

     (b) Confusingly Similar Marks. Company shall not adopt or use any word,
name, mark or other designation which is likely to cause confusion with the
Trademark and shall not make any unlicensed use or file any application for
registration of the Trademark or any marks confusingly similar thereto in any
jurisdiction.

     (c) Third Party Infringement.

         (i)   If Company knows or reasonably believes that any third party is
     infringing the Trademark or using or promoting any mark or design similar
     to the Trademark in connection with a product or products similar to the
     Product, Company shall notify AutoImmune immediately, and the parties shall
     consult with one another concerning the action to be taken.

         (ii)  AutoImmune shall have the right, but not the obligation, to
     prosecute at its own expense any such infringement. After repayment to
     AutoImmune of all of its costs and expenses, any recovery or damages
     derived from such action shall be shared equally by AutoImmune and Company.

         (iii) If, within sixty (60) days after AutoImmune first becomes aware
     of any infringement of the Trademark, AutoImmune declines to prosecute such
     infringement or fails to cause such infringement to terminate or to bring
     or diligently prosecute a suit or action to compel termination, Company
     shall have the right, but not the obligation to bring such suit or action
     to compel termination at the sole expense of Company. In such event,
     Company shall have the right, if AutoImmune is a legally indispensable
     party, to bring such suit or action in the name of AutoImmune. AutoImmune
     shall have the right to join any such suit or action brought by Company at
     AutoImmune's expense. Any

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     recovery or damages derived from such action shall first be used to
     reimburse the parties for all legal expenses relating to the suit and
     thereafter shall belong entirely to the Company if the infringement
     involves a nutraceutical product, otherwise entirely to AutoImmune. No
     settlement, consent, judgment or other voluntary final disposition of the
     suit may be entered into without the consent of AutoImmune, which consent
     shall not unreasonably be withheld.

4.   QUALITY CONTROL

     (a) Specifications. Company acknowledges that AutoImmune has the right to
establish specifications and enforce quality control standards for the use of
the Trademark. From time to time, AutoImmune may notify Company of the
specifications and quality control standards that will apply to use of the
Trademark. Company will use the Trademark only in compliance with the then most
recent version of such specifications and standards.

     (b) Quality Control. The quality of the Product marketed or sold under the
Trademark shall be satisfactory to AutoImmune, which satisfaction shall be in
AutoImmune's sole discretion. Company will cooperate with AutoImmune in
facilitating AutoImmune's control over the quality of such Product and, upon
request, will supply AutoImmune with specimens of the Product. Upon seven days
prior notice, AutoImmune and/or its authorized representatives shall have the
right to inspect, during regular business hours, any facility used to
manufacture the Product and any marketing collateral or advertisements used to
promote the Product to determine satisfaction with the quality of the Product
and compliance with the then current version of the specifications and standards
for use of the Trademark.

5.   TERM AND TERMINATION

     (a) Term. Unless earlier terminated in the manner set forth in this Section
5, this Agreement shall be in effect from the date hereof until the Technology
License terminates.

     (b) Early Termination. AutoImmune may terminate this Agreement by providing
notice to Company in the event that (i) Company commits a material breach of any
of the provisions of this Agreement or fails to comply with any material
condition hereof, (ii) AutoImmune gives notice to Company specifying the nature
of the breach alleged to have occurred and (iii) Company fails to remedy such
breach within 30 days of notice thereof; provided, however, that AutoImmune may
not terminate this Agreement if the Company's breach hereof or the failure to
remedy such breach is caused by AutoImmune by reason of its being a member, and
having the right as such to appoint a manager, of the Company.

     (c) Effect of Termination. Upon termination of this Agreement, Company will
cease and desist from any use of the Trademark and the provisions of Sections 3,
6, 7 and 8 will survive termination of this Agreement.

6.   INDEMNITY

     Company shall indemnify and defend AutoImmune, its affiliates and their
respective directors, officers, employees and agents against all liability,
damages, losses, costs and expenses (including without limitation, reasonable
attorneys' fees) arising out of any claims, suits, actions

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or proceedings brought by third parties against AutoImmune based upon the
quality or nature of Company's goods and services sold under the Trademark or
upon Company's use of the Trademark outside of the scope of the License and this
Agreement. Section 6.3 of the Technology License sets forth the procedures
applicable to claims for indemnification under this Section.

7.   NOTICE

     Any notice required or permitted to be given or made under this Agreement
by one of the parties hereto to the other shall be in writing and shall be
delivered personally, by facsimile (and promptly confirmed by telephone,
personal delivery or courier) or by overnight courier, addressed to such other
party at its address indicated below, or to such other address as the addressee
shall have last furnished in writing to the addressor and shall be effective
upon receipt by the addressee.

     If to AutoImmune:

             AutoImmune Inc.
             1199 Madia Street
             Pasadena, CA 91103-1961
             Attn: Robert C. Bishop, Ph.D.
             Chairman of the Board, President
             and Chief Executive Officer
             Telephone: 626 792-1235
             Telecopy:  626 792-1236

     with a copy to:

             Nutter, McClennen & Fish, LLP
             One International Place
             Boston, MA 02110-2699
             Attention: Constantine Alexander, Esq.
             Telephone: 617 439-2595
             Telecopy:  617 310-9597

     If to Company:

             Scott A. Gubler or Mark H. Gubler
             Deseret Laboratories, Inc.
             1414 East 3850, South
             St. George, Utah 84790
             Telephone: 435-628-8786
             Telecopy:  435-673-1202

8.   MISCELLANEOUS

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     (a) Amendment. This Agreement may be amended, or any term hereof, modified,
only by a written instrument duly executed by both parties hereto.

     (b) Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to the
choice of laws provisions thereof.

     (c) Assignment. This Agreement may not be assigned or otherwise transferred
by Company without the prior written consent of AutoImmune. Any purported
assignment in violation of the preceding sentence shall be void.

     (d) Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns.

     (e) Counterparts. This Agreement may be executed in two or more
counterparts each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     (f) Entire Agreement. This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof. All express or implied
agreements and understandings, either oral or written, heretofore made are
expressly merged in and made a part of this Agreement.

     (g) Headings. All section headings contained in this Agreement are for
convenience of reference only, do not form a part hereof and do not in any way
affect the meaning or interpretation of this Agreement.

     (h) Severability. Each party hereby agrees that it does not intend to
violate any public policy, statutory or common laws, rules, regulations, treaty
or decision of any government agency or executive body thereof of any country or
community or association of countries. Should one or more provisions of this
Agreement be or become invalid, the parties hereto shall substitute, by mutual
consent, valid provisions for such invalid provisions which valid provisions in
their economic effect are sufficiently similar to the invalid provisions that it
can be reasonably assumed that the parties would have entered into this
Agreement with such valid provisions. In case such valid provisions cannot be
agreed upon, the invalidity of one or several provisions of this Agreement shall
not affect the validity of this Agreement as a whole, unless the invalid
provisions are of such essential importance to this Agreement that it is to be
reasonably assumed that the parties would not have entered into this Agreement
without the invalid provisions.

     (i) Limitation. Nothing in this Agreement shall be construed as a warranty
or representation as to the validity or scope of the Trademark or that use of
the Trademark will not infringe the rights of a third party.

     (j) Waiver. The waiver by either party hereto of (i) any right hereunder,
(ii) the failure to perform an obligation or (iii) a breach by the other party
shall not be deemed a waiver of any other right hereunder or of any other
failure or breach by said other party, whether of a similar nature or otherwise.

                                      -5-

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     (k) Interpretation. The parties acknowledge and agree that (i) each party
and its counsel reviewed and negotiated the terms and provisions of this
Agreement and contributed to its revision; (ii) the rule of construction to the
effect that any ambiguities are resolved against the drafting party shall not be
employed in the interpretation of this Agreement; and (iii) the terms and
provisions of this agreement shall be construed fairly as to all parties hereto
and not in favor of or against any party, regardless of which party was
generally responsible for the preparation of this Agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their
respective duly authorized officers.

                                   AUTOIMMUNE INC.

                                   By: /s/ Robert C. Bishop
                                       -----------------------------------------
                                       Its: Robert C. Bishop, Ph.D.
                                            Chairman of the Board, President and
                                            Chief Executive Officer

                                   COLLORAL LLC

                                   By: /s/ Scott A. Gubler
                                       -----------------------------------------
                                       Its: Manager August 06, 2002

                                      -6-<PAGE>

                                                                    Exhibit 10.1

                                 LOAN AGREEMENT

         This LOAN AGREEMENT (as amended from time to time, this "Agreement"),
replaces and supercedes an interim demand loan of October 4, 2001 (the "Bridge
Loan"), and is intended to take effect as of October 4, 2001 and is entered into
by and among Car Security S.A., an Argentina corporation (the "Borrower"), and
LoJack Recovery Systems Business Trust, a Massachusetts business trust and a
subsidiary of LoJack Corporation ("Lender").

         WHEREAS, Borrower and Lender have agreed that Lender or its parent will
advance an aggregate of up to $1,750,000 to Borrower under certain conditions.

         NOW, THEREFORE, in consideration of the undertakings herein, Borrower
and Lender (together, the "Parties") hereby agree as follows:

1.       The Loan.

         Subject to and on the terms and conditions of this Agreement:

         (a)      Lender agrees to lend to Borrower, and Borrower agrees to
                  borrow from Lender, an aggregate cash principal amount of up
                  to $l,750,000 (the "Loan"), which amount shall be advanced in
                  installments as set forth in Section 4 of this Agreement.
                  Advances pursuant to the Interim Loan shall be treated as
                  advances hereunder for all purposes.

         (b)      The Loan shall be made by Lender to Borrower in one or more
                  closings. The first closing shall be held at the offices of
                  Sullivan & Worcester LLP, One Post Office Square, Boston, MA
                  02109, on the date hereof or on such other date as the parties
                  shall mutually agree ("First Closing"). All closings
                  subsequent to the First Closing ("Subsequent Closings") shall
                  take place on the date on which an Advance (as defined in
                  Section 4 hereof) is to be made as provided in Section 4. The
                  First Closing and all Subsequent Closings shall be referred to
                  herein as the "Closings."

         (c)      At the First Closing, all outstanding obligations of the
                  Borrower to the Lender relating to inventory, as set forth in
                  Schedule 1 hereof, shall be treated as an Advance hereunder.

         (d)      Lender shall, without limitation, have the power, in its sole
                  discretion, to amend, modify or waive (or give consents or
                  approvals under) the terms hereof, and to enforce or defer
                  enforcement, in whole or in part, of, Lender's rights
                  hereunder.

2.       The Note.

         The Loan shall be evidenced by an interest-bearing promissory note,
         payable to the order of Lender in the form of Exhibit A attached
         hereto, which shall be duly completed and dated as of the date on which
         Lender becomes a party hereto and executed and delivered by Borrower at
         the First Closing. The promissory note issued under this Agreement
         shall be referred to as the "Note."

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3.       Interest.

         Interest shall accrue and be payable by Borrower to Lender on the
         outstanding and unpaid principal amount of the Loan at the rate of
         0.7508 percent per month, compounded monthly, as provided in the Note,
         with interest on Default (as herein defined) accruing at the rate set
         forth in the Note.

4.       Advances.

         (a)      Provided that no Default (as defined in Section 6) has
                  occurred or is continuing, Lender agrees to advance to
                  Borrower, solely in the form of inventory, the amount of the
                  Loan in installments, as requested by Borrower in accordance
                  with this Section 4 (each, an "Advance").

         (b)      Receipt by Borrower of inventory from Lender from time to time
                  shall be treated as an Advance hereunder. Such Advances may be
                  made upon such terms and conditions as prescribed by the
                  ordinary course of dealings between the Borrower and Lender.
                  Notwithstanding anything herein contained, Lender shall have
                  no obligation to provide additional inventory to Borrower upon
                  the occurrence or during the continuance of an Event of
                  Default.

         (c)      Borrower may make a request to purchase inventory to be
                  purchased by an Advance at any time, but not more frequently
                  than once per forty-five (45) days, commencing forty-five (45)
                  days from the date hereof, by delivering to Lender written
                  irrevocable notice requesting an Advance and stating the
                  requested amount of the Advance, which notice must be received
                  by Lender at least ten (10) business days prior to the
                  requested date of the Advance, and must be accompanied by a
                  certificate of the Secretary of Borrower certifying that
                  attached thereto is a true and complete copy of the
                  resolutions of the Board of Directors of Borrower authorizing
                  the request for an Advance. Lender may waive the restrictions
                  under this Section 4(b) in any instance in its sole
                  discretion.

5.       Repayment of Loan.

         (a)      Borrower shall repay to Lender the principal amount of the
                  Loan and shall pay all interest accrued thereon and all other
                  amounts payable to Lender pursuant to the terms of this
                  Agreement or the Note (such principal, interest and other
                  amounts, collectively, the "Debt") on or before August 31,
                  2004 (the "Repayment Date"), subject to acceleration as
                  provided in Section 5(d).

         (b)      Borrower shall direct all available cash flow to the repayment
                  of the Debt; provided, however, that Borrower need not apply
                  cash flow to such repayments to the extent that such cash flow
                  has been otherwise allocated pursuant to (i) the Budget, or
                  (ii) the terms and conditions of the trust agreements between
                  Borrower and Banco de la Provincia de Cordoba, as Trustee,
                  including that certain Trust Agreement dated August 3, 2001
                  (collectively, the "Trust Agreements"). Nothing contained in
                  this Section 5(b) shall be construed as relieving Borrower's
                  obligation as set forth in Section 5(a).

                                      -2-

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         (c)      Subject to the provisions of the Trust Agreements, the net
                  proceeds of: (i) any sale of Borrower assets outside the
                  course of ordinary business, (ii) any offering of equity
                  interests in the Borrower, (iii) any offering of debt
                  instruments of the Borrower, and (iv) any insurance or
                  condemnation awards, shall be applied to the repayment of the
                  Debt hereunder.

         (d)      Upon the occurrence of a Default (as defined in Section 6),
                  the Debt shall become due and payable immediately without
                  presentment, demand, protest or notice, all of which are
                  hereby waived by Borrower, (1) automatically in the case of
                  Section 6(f) or 6(g); and (2) at the election of Lender by
                  notice to Borrower in the case of Sections 6(a) through 6(e).

         (e)      Loans may be prepaid at any time, without premium or penalty,
                  upon three (3) business days notice, which notice of
                  prepayment shall be irrevocable.

6.       Default; Consequences of Default.

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

         (a)      Borrower shall fail to pay any part of the Debt as and when
                  the same shall become due and such amount shall remain unpaid
                  for a period of five (5) days;

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

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

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

         (e)      Borrower shall materially deviate from such approved budget,
                  or shall materially fail to achieve the approved projected
                  cash flow for two consecutive quarters;

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

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

7.       Borrower Covenants.

So long as any amount of the Debt under any Note is outstanding:

         (a)      Borrower shall not, without the written permission of Lender,
                  create, incur, assume or suffer to exist any Indebtedness
                  other than (i) except trade debt which is current of not more
                  than $1,800,000 of which not more than $1,200,000 (the "Trust
                  Debt") held by various creditors is or may be made subject to
                  and with the benefit of the provisions of the trust agreements
                  with Banco Provincia de Cordoba as Trustee including the
                  agreement of August 3, 2001 (the "Trust Agreements") and (ii)
                  Indebtedness to Lender under this Agreement. For the purposes
                  of this Agreement, "Indebtedness" means (a) all indebtedness
                  of Borrower for borrowed money including trade liabilities
                  incurred in the ordinary course of business and payable in
                  accordance with customary practices, or (b) any other
                  indebtedness of Borrower which is evidenced by a note, bond,
                  debenture or similar instrument;

         (b)      Borrower shall submit its annual operating and capital plans
                  and budget to Lender;

         (c)      Borrower has as provided to Lender restated financials, which
                  it warrants to be correct, and a three-year budget (the
                  "Budget") and cash flow projection.

         (d)      Borrower shall make no payment under the Trust Agreements
                  which has not been previously provided for in the Budget. The
                  amounts due hereunder shall receive the benefit of the Trust
                  Agreements. Instructions or certificates for payments pursuant
                  to the Trust Agreements shall be made consistent with the
                  approved budget. All other existing and future debt shall be
                  subordinated in all respects to amounts due and other
                  obligations and rights hereunder;

         (e)      Borrower shall not engage in any transaction outside the
                  ordinary course of business without the prior written approval
                  of Lender. Lender's approval of any such transaction shall not
                  be construed to imply any obligation on Lender's part to
                  modify any provision of this Agreement. For purposes of this
                  section, a transaction outside the ordinary course of business
                  includes, without limitation, transactions wherein any party
                  therein is located outside the geographic boundaries of the
                  country of Argentina. Lender may, at its own discretion,
                  perform or participate directly or indirectly in any
                  transaction

                                      -4-

<PAGE>

                  which Borrower is unable to complete for any reason
                  whatsoever, without compensation to Borrower therefor;

         (f)      Borrower shall not issue any debt security;

         (g)      Borrower shall not take any action that results in any merger,
                  other corporate reorganization, sale of control, or any
                  transaction in which all or substantially all of Borrower's
                  assets are sold;

         (h)      Borrower shall not redeem or repurchase any of its outstanding
                  stock;

         (i)      Borrower shall not enter into any agreement that would
                  restrict its ability to perform its obligations hereunder or
                  under any other Loan Document;

         (j)      Borrower shall not take any action which results in a material
                  change of its current line(s) of business;

         (k)      Borrower shall not declare or pay a dividend or make any
                  distribution with respect to Common Stock, whether in cash or
                  in kind;

         (l)      Borrower shall provide Lender and the reviewing accounting
                  firm with monthly financial statements, including a balance
                  sheet, income statement, and statement of cash flows, within
                  30 days after the end of each month, and shall provide such
                  other information regarding Borrower's condition and affairs,
                  as Lender may reasonably request, within two (2) days of such
                  request;

         (m)      Borrower shall provide Lender, within 45 days of the end of
                  each quarter, with quarterly financial statements, including a
                  balance sheet, income statement, and statement of cash flows,
                  which statements have been reviewed by a "Big Five" accounting
                  firm reasonably acceptable to Lender;

         (n)      Borrower shall provide Lender, within 90 days of the end of
                  each fiscal year, with audited financial statements, including
                  a balance sheet, income statement, and statement of cash
                  flows, which statements have been reviewed by Borrower's
                  outside auditors;

         (o)      Borrower shall adopt and implement those portions of the
                  accounting recommendations made by Deloitte and Touche LLP
                  that are specified by Lender;

         (p)      Borrower shall employ a "Big Five" accounting firm reasonably
                  acceptable to the Lender to serve as its outside auditor if,
                  and only if, Lender so requires pursuant to written notice
                  provided to Borrower;

         (q)      Borrower shall enter into and maintain in effect proprietary
                  information and invention agreements satisfactory to Lender
                  with executives and key employees including a non-compete
                  agreement for a period of one (1) year after leaving the
                  Borrower. All non-compete agreements shall provide that, for
                  the extent of their term, executives and key employees will
                  not own an interest in, be employed by, or be associated with,
                  any direct competitor of Borrower or of Lender.

                                      -5-

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         (r)      Borrower shall give Lender immediate notice of any
                  noncompliance with covenants, and failure to give such notice
                  shall be a default. The giving of such notice, however, shall
                  not constitute a default, and default shall occur as provided
                  herein with respect to notice and subject to materiality
                  qualifications and after the expiration of cure periods.

         (s)      Borrower has provided to Lender information as to senior
                  management, and confidence in such management is material to
                  Lender in entering into this transaction. Any change in
                  management control not approved by Lender shall be a default;

         (t)      Borrower shall send all notices of meetings of its Board of
                  Directors, and copies of all materials sent to its Board of
                  Directors to two individuals which Lender shall designate from
                  time to time in writing. Such notices and materials shall be
                  sent to such individuals at the same time and in the same
                  manner as provided to the members of the Borrower's Board of
                  Directors. Borrower shall also permit such individuals to
                  attend all meetings of the Board of Directors. The two
                  individuals initially appointed by the Lender are William
                  Duvall and Terri Shipp, each of which with an address of:
                  LoJack Recovery Systems Business Trust, Westwood Executive
                  Center, 200 Lowder Brook Road, Suite 1000, Westwood, MA 02090,
                  United States of America. Telephone: 01 781 326-4700; Fax: 781
                  326-7255; and

         (u)      Borrower will provide such other information as Lender may
                  reasonably request from time to time. In addition, Lender may
                  examine the Borrower's books and records from time to time;

         provided, however, that any of the aforementioned covenants of Borrower
         may be waived pursuant to a written waiver signed by Lender.

8.       Representations and Warranties.

         As a material inducement to Lender to make the Loan, Borrower
         represents and warrants to Lender, as of the date hereof, as follows:

         (a)      Borrower is duly organized and in good standing under the laws
                  of Argentina, with all power and authority to lawfully execute
                  and deliver this Agreement and the Note and to perform its
                  obligations hereunder and thereunder.

         (b)      This Agreement and the Note, and the execution and delivery of
                  the same by the undersigned officer of Borrower, have been
                  duly authorized by all necessary corporate action of Borrower,
                  are binding and enforceable on Borrower in accordance with
                  their terms, subject, as to enforcement of remedies, to
                  applicable bankruptcy, reorganization, insolvency and similar
                  laws affecting creditors' rights and general principles of
                  equity, and do not conflict with any other obligation or
                  commitment of Borrower to any third party.

         (c)      Since November 1, 2001, there has been no material adverse
                  change in the financial condition, business, operations or
                  prospects of Borrower other than

                                      -6-

<PAGE>

                  those reflected in the financial statements of Borrower
                  provided to Lender at the Closing.

9.       Closing Conditions.

         The obligation of Lender to make Advances under the Loan at the
         Closings is subject to the satisfaction or written waiver by Lender of
         the following conditions:

         (a)      Prior to, or on the date of the First Closing:

                  (i)   Lender shall have received from the Borrower: (A) two
                  copies of this Loan Agreement, duly executed by the Borrower,
                  (B) a Promissory Note in the amount of $1,750,000, duly
                  executed by the Borrower, (C) a Guarantee of the obligations
                  hereunder, duly executed by Mr. Carlos Mackinlay and (D) a
                  Pledge Agreement pledging all of the shares of stock of the
                  Borrower, duly executed by Mr. Carlos Mackinlay, Mr. Roberto
                  Bonanni Rey, and Borrower. The documents referred to in
                  clauses (A)-to (D) above, as they may be amended from time to
                  time, are collectively referred to as the "Loan Documents".

                  (ii)  Borrower shall have delivered to Lender a duly executed
                  amendment to that certain License Agreement, dated October 16,
                  1998, between Borrower and Lender (the "License Agreement")
                  stating that a default under this Agreement, or any other
                  agreement between Borrower and Lender, shall be an event of
                  default under the License Agreement.

                  (iii) Lender shall have received from Borrower's counsel an
                  opinion in form satisfactory to Lender.

                  (iv)  Such other certificates and documents as Lender may
                  reasonably request.

         (b)      Lender shall have reasonably determined that there has not
                  been any material adverse change in or affecting Borrower's
                  business, financial condition or its prospects since the date
                  of the Bridge Loan.

         (c)      Prior to any Closing under this Agreement, Borrower shall have
                  delivered to Lender a certificate, signed by the President of
                  Borrower certifying that the representations and warranties
                  contained in Section 8 are true, complete and correct on and
                  as of such Closing with the same effect as though such
                  representations and warranties had been made on and as of such
                  date and that Borrower has complied with each of the covenants
                  contained in Section 7.

10.      Further Assurances.

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

11.      Successors and Assigns.

                                      -7-

<PAGE>

         This Agreement and the Note shall be binding upon and inure to the
         benefit of the successors, heirs, executors and administrators and the
         permitted assigns and transferees (pursuant to Section 13 hereof) of
         the Parties.

12.      Amendment; Waivers.

         No term or provision of this Agreement may be amended, modified or
         waived without the prior written consent of Borrower and Lender. No
         amendment, modification or waiver shall be deemed to have been made or
         given by reason of any oral agreement or representation, course of
         conduct, usage of trade, delay, forbearance or acquiescence of a Party,
         whether on one or more occasions.

13.      Assignment.

         Neither this Agreement nor any of the rights, interests or obligations
         hereunder may be assigned, by operation of law or otherwise, in whole
         or in part, by Borrower.

14.      Addresses for Notices, etc.

         Any notices and other communications required or permitted under this
         Agreement shall be effective only if in writing and delivered
         personally or sent by telecopier, commercial overnight delivery service
         or registered or certified mail, postage prepaid, addressed as follows:

         (a)      If to Lender, to:

                           LoJack Recovery Systems Business Trust
                           Westwood Executive Center
                           200 Lowder Brook Road
                           Suite 1000
                           Westwood, MA 02090
                           United States of America
                           Attention: Joseph F. Abely, President
                           Tel: 01 781 326-4700
                           Fax: 01 781-326-7255

         with copies (in the same manner) to:

                           Sullivan & Worcester LLP
                           One Post Office Square
                           Boston, Massachusetts 02109
                           Attention: Thomas A. Wooters, Esq.
                           Telephone: 01 617 338-2800
                           Telecopier: 01 617 338-2880

         (b)      If to Borrower to:

                           Car Security S.A.
                           Libertador 4600
                           Buenos Aires, Argentina
                           Fax: 54-11-4778-6910

                                      -8-

<PAGE>

                           with a copy (in the same manner) to:

                           Carlos Mackinlay
                           Av. F. Alcorta 3478
                           Buenos Aires, Agentina
                           Fax: 54-11-4804-4595

         Unless otherwise specified herein, such notices or other communications
         shall be deemed effective (i) on the date delivered, if delivered
         personally, (ii) one business day after being sent, if sent by
         telecopier with confirmation of good transmission and receipt, (iii)
         two business days after being sent, if sent by commercial overnight
         delivery service, and (iv) three business days after being sent, if
         sent by registered or certified mail. Each of the Parties shall be
         entitled to specify another address by giving notice as aforesaid to
         each of the other Party hereto.

15.      Severability.

         The holding of any provision of this Agreement to be invalid or
         unenforceable in any respect by a court of competent jurisdiction shall
         not affect any other provisions and the other provisions of this
         Agreement shall remain in full force and effect. In the event of any
         such holding, it is the intent of the parties hereto that the
         applicable provision be reformed by the court to the minimum extent
         necessary (through adjustment of scope, duration, procedure or
         otherwise) to render such provision valid and enforceable while as
         closely as possible implementing the parties' intent as expressed in
         this Agreement.

16.      Expenses.

         (a)      Borrower agrees to pay (i) the legal fees of Sullivan &
                  Worcester LLP, and Marval, O'Farrell and Mairal, counsel to
                  Lender, (ii) the fees charged by Deloitte and Touche LLP,
                  accountants to the Lender, and (iii) all other reasonable
                  transaction costs directly incurred in connection with this
                  Agreement and the transactions contemplated hereby, whether or
                  not the transaction closes, provided, that Borrower will not
                  be obligated to pay such fees if Lender withdraws without
                  cause. The total amount of such fees shall be added to the
                  Debt outstanding hereunder and shall be treated in all
                  respects as an Advance.

         (b)      Borrower shall pay the reasonable costs and expenses
                  associated with the review of its quarterly financial
                  statements by a "Big Five" accounting firm, as provided in
                  Section 7(e) hereof.

         (c)      Borrower shall pay to Lender the reasonable cost and expenses
                  (including reasonable attorneys fees and disbursements)
                  incurred by Lender in connection with (i) the collection of
                  the Debt, (ii) preserving or exercising any of Lender's rights
                  and remedies relating to, enforcing or realizing upon any
                  endorsement, collateral or other security now or hereafter
                  securing the payment of, or otherwise now or hereafter
                  applicable to, the Debt, (iii) preserving or exercising any of
                  Lender's rights and remedies pursuant to any of the Loan
                  Documents, or (iv) defending against any claim, regardless of
                  the basis or outcome thereof, asserted against Lender as a
                  direct or indirect result

                                      -9-

<PAGE>

                  of the execution and delivery of the Loan Documents and the
                  making of the Loan.

17.      Payment.

         All payments with respect to the Debt shall be paid in lawful tender of
         the United States, in immediately available funds, to Lender at its
         then effective address for notices under Section 14.

18.      Remedies.

         All of Lender's rights and remedies pursuant to the Loan Documents
         shall be cumulative, and no such right or remedy shall be exclusive of
         any other such right or remedy. No single or partial exercise of any
         such right or remedy shall preclude any other or further exercise
         thereof, or any exercise of any other such right or remedy.

19.      Termination.

         This Agreement shall terminate upon the final and indefeasible payment
         in full of the Note. Within five (5) business days of termination, (a)
         Lender shall cancel the Note and return the original Note indicated as
         "Paid in Full" to Borrower.

20.      Inconsistent Provisions.

         The terms of the Loan Documents shall be cumulative except to the
         extent they are specifically inconsistent with each other, in which
         case the terms of this Agreement shall prevail.

21.      Miscellaneous.

         (a)      This Agreement, the Note and the Shareholders' Agreement
                  contain the entire agreement between Borrower and Lender with
                  respect to the Loan, and supersede each course of dealing or
                  other conduct heretofore pursued, accepted or acquiesced in,
                  and each oral or written agreement and representation
                  heretofore made, by Lender with respect to the Loan, whether
                  or not relied or acted upon, including the Term Sheet.

         (b)      The words "including" and "include" when used in this
                  Agreement, the Proxy or the Note shall be deemed to be without
                  limitation.

22.      Governing Law.

         This Agreement shall be governed by and construed and enforced in
         accordance with the laws of The Commonwealth of Massachusetts, without
         regard to principles of conflicts of laws.

23.      Arbitration.

         (a)      All disputes arising under this Agreement shall be settled by
                  arbitration in Boston, Massachusetts, before a single
                  arbitrator pursuant to the commercial arbitration rules of the
                  American Arbitration Association provided, however, that
                  notwithstanding such rules, the parties to such arbitration
                  may conduct

                                      -10-

<PAGE>

              discovery as to relevant books, records and other documents in
              connection therewith. Arbitration may be commenced at any time by
              any party hereto giving written notice to each other party to a
              dispute that such dispute has been referred to arbitration under
              this Section 23.

        (b)   Within 10 business days after receipt of such notice, the Lender
              and the Borrower shall designate in writing one arbitrator to
              resolve the dispute; provided, that if the parties cannot agree
              on an arbitrator within such 10-day period, the arbitrator shall
              be selected by the American Arbitration Association. The
              arbitrator so designated shall not be an employee, consultant,
              officer, director, stockholder or an affiliate of any party
              hereto.

              (i)   Within 15 business days after the designation of the
              arbitrator, the arbitrator, the Lender and the Borrower shall
              meet, at which time the Lender and the Borrower shall submit in
              writing all disputed issues and a proposed ruling on each such
              issue.

              (ii)  The arbitrator shall set a date for a hearing, which shall
              be no later than 20 business days after the submission of written
              proposals pursuant to clause (ii), to discuss each of the issues
              identified by the Lender and the Borrower. Each such party shall
              have the right to be represented by counsel. The arbitration shall
              be governed by the rules of the American Arbitration Association;
              provided, that the arbitrator shall have sole discretion with
              regard to the admissibility of evidence.

              (iii) The arbitrator shall use his best efforts to rule on each
              disputed issue within 20 business days after the completion of the
              hearings described in clause (iii). The arbitrator shall rule in
              favor of the position of one party or the other in the matter, and
              shall not "split" or compromise the position of the parties. The
              determination of the arbitrator to the resolution of any dispute
              shall be binding and conclusive upon all parties hereto. All
              rulings of the arbitrator shall be in writing and shall be
              delivered to the parties hereto.

              (iv)  The prevailing party in any arbitration shall be entitled to
              an award of reasonable attorneys' fees incurred in connection with
              the arbitration. The non-prevailing party shall pay such fees,
              together with the fees of the arbitrator and the costs and
              expenses of the arbitration.

              (v)   Any arbitration award may be entered in and enforced by any
              court having jurisdiction thereover and shall be final and binding
              upon the parties.

        (c)   To the extent that arbitration is not legally permitted, any
              party may commence a civil action in a court of appropriate
              jurisdiction to solve disputes hereunder. Nothing contained in
              this Section 24 shall prevent the parties from settling any
              dispute by mutual agreement at any time.

24.     Counterparts.

                                      -11-

<PAGE>

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

                            [Signature page follows]

                                      -12-

<PAGE>

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

                                    BORROWER:

                                    Car Security S.A.

                                    By: ________________________________________
                                        Name: Carlos Mackinlay
                                        Title:

                                    LENDER:

                                    LoJack Recovery Systems Business Trust

                                    By: ______________________________________
                                        Name:  Joseph F. Abely
                                        Title: President

                                    STOCKHOLDERS:

                                                        Carlos R. Mackinlay

                                                        ________________________

                                                        Roberto Bonanni Rey

                                                        ________________________

<PAGE>

                                                                       Exhibit A

                                 PROMISSORY NOTE

US$ 1,750,000

                                                  Westwood, MA September 5, 2002

CAR SECURITY S.A. ("Car Security"), domiciled at Avenida del Libertador 4600,
1426 Buenos Aires, Argentina, hereby promises to unconditionally pay, on or
before August 31, 2004 (or sooner, in the event of acceleration for default
hereunder or under the Loan Agreement of even date) and WITHOUT PROTEST, to
LoJack Recovery Systems Business Trust, a Massachusetts business trust
("LoJack"), "NO A LA ORDEN", the amount of US$ One Million Seven Hundred Fifty
Thousand ($1,750,000 U.S. dollars), plus reasonable legal, accounting and all
other reasonable transaction costs directly incurred in connection with this
Note and the transactions contemplated hereby, or so much thereof as may from
time to time be advanced and remain unpaid hereunder. Said payment shall only be
made in U.S. dollars (effective payment in foreign currency clause, section 44,
third paragraph, Decree 5965/63) to the order of LoJack at its offices located
at Westwood Executive Center, 200 Lowder Brook Road, Suite 1000, Westwood, MA
02090.

Car Security shall also pay LoJack financing interest at an interest rate fixed
at 0.7508 percent per month, compounded monthly.

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

<PAGE>

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

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

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

Pursuant to the provisions of section 36 of Executive Order 5965/63, the term
for presentation of this promissory note is extended to 5 years counted as from
the issuance date hereof.

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

CAR SECURITY S.A.

__________________________
By: ______________________
Title: ___________________

                                      -2-

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