SETTLEMENT AGREEMENT

“Rutti I” means the action entitled “Mike Rutti et al. vs. LoJack Corporation, Inc.,” No. SA-CV-06-0350 DOC (JCx), commenced on August 5, 2006, by Rutti against LoJack in the U.S. District Court for the Central District of California (the “District Court”).

“Rutti I Appeal” means the appeal noticed by LoJack on August 29, 2012, from the District Court’s order and judgment awarding attorneys’ fees to R-G (Rutti I, Docket Nos. 295, 297, and 298) and pending before the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) entitled “Mike Rutti et al. v. LoJack Corporation,” No. 12-56591.

“Rutti II” means the action entitled “Mike Rutti et al. v. LoJack Corporation, Inc.,” No. BC381043, commenced on November 20, 2007, by Rutti and Anaya against LoJack in the Los Angeles County Superior Court of California (the “Superior Court”).

“Settlement” means the disposition of Rutti II, the attorneys’ fees claim in Rutti I, and all related claims effectuated by this Agreement.

“Class Period” means the period of time from April 5, 2002, to the date of Preliminary Approval of the Settlement.

“Class” means all persons who have worked or who currently work for LoJack in the State of California as an installation technician, senior installation technician, field specialist, senior field specialist, installer, and/or senior installer at any time from April 5, 2002, to the date of Preliminary Approval of the Settlement.

“Class Members” means all members of the Class.

“Current Employee Class Members” means Class Members who are employed by LoJack on the date of Preliminary Approval of the Settlement.

“Former Employee Class Members” means Class Members who are not employed by LoJack on the date of Preliminary Approval of the Settlement.

“Bankrupt Class Members” means those Class Members who filed for bankruptcy during or after their employment at LoJack in a class position.

“Non-Participating Class Member” means a Class Member who submits a valid and timely Election Not to Participate in Settlement.

“Participating Class Member” means a Class Member who does not submit a valid and timely Election Not to Participate in Settlement.

“Settlement Administrator” means the administrator proposed by the Parties and appointed by the Superior Court to administer the Settlement.

“Class Notice” means the Notice of Proposed Class Action Settlement and Final Approval Hearing as evidenced by Exhibit A to this Agreement.

“Class Notice Packet” means the Class Notice, (as applicable) the Claim Form for Settlement Share or the Class Member Settlement Information Sheet, and the form of Election Not to Participate in Settlement.

“Compensable Workweek” means for each Class Member the number of calendar days during the Class Period that the Class Member was employed by LoJack in a class position in California (excluding periods of leaves of absence of longer than 21 calendar days), divided by seven, and rounded to four decimal places.

“Maximum Settlement Amount” means the maximum amount of $8,100,000 that LoJack may be obligated to pay in connection with the Settlement of Rutti II provided by this Agreement.

“Maximum Net Settlement Amount” means the Maximum Settlement Amount, less (i) the Class Representative Payments as approved by the Superior Court; (ii) the Special Anaya Settlement Payment as approved by the Superior Court; (iii) the Class Counsel Fees Payment and the Class Counsel Litigation Expenses Payment as approved by the Superior Court; (iv)  the payment to the California Labor and Workforce Development Agency as approved by the Superior Court; (v) the Settlement Administrator’s reasonable fees and expenses as approved by the Superior Court; and (vi)  any other fees or expenses (other than attorneys’ fees and expenses) incurred in implementing the terms and conditions of this Agreement and securing dismissal of Rutti II as approved by the Superior Court. To the extent the Superior Court awards less than the amounts requested for the Class Representative Payments, the Special Anaya Settlement Payment, the Class Counsel Fees Payment, the Class Counsel Litigation Expenses Payment, or Settlement Administrator’s reasonable fees and expenses, the balance will be retained as part of the Maximum Net Settlement Amount.

“Minimum Net Settlement Amount” means the minimum amount that will be allocated to Settlement Shares.

“Net Settlement Amount” means the amount allocated to Settlement Shares.

“Settlement Share” means the portion of the Net Settlement Amount allocable to each Participating Class Member and/or his bankruptcy trustee as provided by this Agreement.

“Net Settlement Share” means the Settlement Share less the employer’s share of applicable taxes and less any other required tax withholdings or deductions.

“Class Representative Payments” means the special payments made to Rutti, Furtado, and Hamilton in their capacities as Class Representatives to compensate them for initiating Rutti II, performing work in support of Rutti II, and undertaking the risk of liability for attorneys’ fees and expenses in the event they were unsuccessful in the prosecution of Rutti II.

“Special Anaya Settlement Payment” means the special payment made to Anaya to secure his full release of claims.

“Class Counsel” means Matthew Righetti, John Glugoski, and R-G.

“Class Counsel Fees Payment” and “Class Counsel Litigation Expenses Payment” mean the amounts awarded to Class Counsel by the Superior Court to compensate them for, respectively, their fees and expenses in connection with Rutti II, including their pre-filing investigation, their filing of Rutti II and all related litigation activities, this Settlement, and all post-Settlement compliance procedures.

“LoJack’s Counsel” means Jeffrey D. Wohl, Ryan C. Hess, and Michele A. Freedenthal of Paul Hastings LLP and Daniel B. Chammas of Venable LLP.

“Preliminary Approval of the Settlement” means the Superior Court’s preliminary approval of the Settlement without material change.

The last date on which a notice of appeal from the Judgment may be filed, and none is filed.

If a timely appeal from the Judgment is filed, the last of the following dates:

the last date by which a petition for review by the California Supreme Court of the California Court of Appeal’s decision affirming the Judgment may be filed, and none is filed;

the last date by which a petition for a writ of certiorari to the U.S. Supreme Court of a decision by the California Court of Appeal or the California Supreme Court affirming the Judgment may be filed, and none is filed;

if a petition for review by the California Supreme Court, or a petition for a writ of certiorari to the U.S. Supreme Court, seeking review of the Judgment or of the California Court of Appeal’s decision on an appeal from the Judgment is timely filed, the date on which the highest reviewing court renders its decision denying the petition (where the immediately lower court affirmed the Judgment) or affirming the Judgment.

“Final Approval Hearing” means the hearing to be conducted by the Superior Court to determine whether to approve finally and implement the terms of this Agreement.

“Judgment” means the Order of Final Judgment and Dismissal with Prejudice entered by the Superior Court in the form evidenced by Exhibit F to this Agreement.

“Effective Date” means the date by which all of the following have occurred:

LoJack has not voided this Settlement pursuant to section III.H.7.;

this Agreement is approved by the Judgment; and

the Judgment becomes Final.

On August 5, 2006, Rutti commenced Rutti I on behalf of himself and all other individuals allegedly similarly situated to him with respect to the claims he asserted. In Rutti I, Rutti alleged that LoJack failed to pay for all hours worked in violation of the federal Fair Labor Standards Act (“FLSA”) and California law; that LoJack failed to provide meal and rest periods under California law; that LoJack failed to reimburse for business-related expenses; that LoJack failed to pay all wages that allegedly were due upon termination of employment; and that in engaging in these alleged practices, LoJack also violated California Business and Professions Code section 17200. Several of Rutti’s claims in Rutti I claims were dismissed on summary judgment; however, Rutti appealed and summary judgment was reversed on several claims. While the appeal was pending, the District Court dismissed the remaining California Labor Code claims for lack of subject-matter jurisdiction, resulting in the filing of Rutti II discussed below. Rutti I then proceeded only as an FLSA case on behalf of individuals not members of the Class. Eventually the case was settled, other than R-G’s claim for attorneys’ fees and costs, on which the District Court awarded $900,518 and from which award LoJack noticed the Rutti I appeal.

After dismissal of the state-law claims in Rutti I, on November 20, 2007, Rutti and Anaya commenced Rutti II on behalf of themselves and all other individuals allegedly similarly situated to them with respect to the claims they asserted. In Rutti II, Rutti and Anaya alleged that LoJack failed to pay for all hours worked in violation of California law; that LoJack failed to provide meal and rest periods under California law; that LoJack failed to reimburse for business-related expenses in accordance with California Labor Code section 2802; that LoJack failed to timely pay to all wages that allegedly were due upon termination of employment; and that in engaging in these alleged practices, LoJack violated California Business and Professions Code section 17200.

Subsequently, Furtado and Hamilton were joined as plaintiffs in Rutti II.

On December 31, 2007, LoJack answered the complaint in Rutti II. LoJack denied and continues to deny all of Plaintiffs’ material allegations. Specifically, LoJack contends that it paid for all hours worked; that it provided meal and rest periods; that it reimbursed for all business-related expenses in accordance with California Labor Code section 2802; that it did not fail to pay all wages due upon termination of employment; and that it did not engage in practices that violated California Business and Professions Code section 17200.

On September 24, 2009, and July 29, 2011, the Superior Court certified classes in Rutti II with respect to various claims for off-the-clock work, missed rest periods, and failure to reimburse expenses for the period from April 5, 2003, to the present; claims for missed meal periods for the period from April 5, 2003, to around December 2006; and claims for unfair competition for the period from April 5, 2002, to the present, and appointed Rutti, Furtado, and Hamilton as class representatives and R-G, as Class Counsel.

Both before and after class certification, the Parties engaged in extensive discovery in Rutti II, including depositions, interrogatories, and document requests. In addition, LoJack filed an appeal of the class certification order, a motion for decertification of the class, a motion to modify the class definition, and a motion for summary judgment or summary adjudication intended to dismiss all the claims of many Class Members based on their bankruptcies and releases of claims, and to dismiss many claims of the remaining Class Members on a number of legal and factual grounds. Plaintiffs intended to oppose that motion, which was taken off calendar on account of the Settlement and has not been ruled upon. In addition, LoJack planned to bring a motion to decertify the classes certified by the Superior Court. Plaintiffs intended to oppose that motion, as well.

During good-faith negotiations, each side, represented by its respective counsel, recognized the substantial risk of an adverse result in Rutti II, and agreed to settle Rutti II and all other matters covered by this Agreement pursuant to the terms and conditions of this Agreement. This Agreement replaces and supersedes any other agreements, understandings, or representations between the Parties.

This Agreement represents a compromise and settlement of highly disputed claims. Nothing in this Agreement is intended or will be construed as an admission by LoJack that Plaintiffs’ claims in Rutti II or R-G’s claim in Rutti I have merit or that it has any liability to Plaintiffs, the Class, or R-G on those claims, or as an admission by Plaintiffs that LoJack’s defenses in Rutti II have merit.

Maximum Settlement Amount. Subject to the terms and conditions of this Agreement, the Maximum Settlement Amount that LoJack may be obligated to pay in connection with the Settlement of Rutti II is $8,100,000. This amount will cover (a) all Net Settlement Shares paid to eligible Class Members and (as applicable) their bankruptcy trustees; (b) all employer taxes applicable to the Settlement Shares (including FICA payments); (c) the Class Representative Payments and the Special Anaya Settlement Payment; (d) the Class Counsel Fees Payment and the Class Counsel Litigation Expenses Payment; (e) the Settlement Administrator’s fees and expenses; (f) the payment to the California Labor and Workforce Development Agency (the “LWDA”) for its share of the settlement of claims for civil penalties; and (g) any other fees or expenses (other than attorneys’ fees and expenses) incurred in implementing the terms and conditions of this Agreement and securing dismissal of Rutti II as approved by the Superior Court. As provided below, LoJack will pay less than the Maximum Settlement Amount if fewer than all of the Former Employee Class Members or their bankruptcy trustees choose to submit valid Claim Forms, and may be relieved of the obligation to pay any of the Maximum Settlement Amount if more than a certain number of Class Members or their bankruptcy trustees choose to opt out of the Settlement. In such a case, the Settlement will be deemed null and void, the Parties will retain any and all rights and obligations and litigation will resume as if the Settlement had never been entered into. Considered as a whole, the Settlement does not establish a fund from which claims will be paid.

Minimum Net Settlement Amount. Regardless of the number of Class Members or their bankruptcy trustees who choose not to participate in the Settlement (unless LoJack exercises its right to rescission, as provided below), and regardless of the number of Former Employee Class Members or their bankruptcy trustees who do not submit valid Claim Forms, the Parties agree that not less than a Minimum Net Settlement Amount will be allocated to Settlement Shares.

Calculation.

First, the Total Current Employee Class Members Compensable Workweeks will be calculated by adding all Compensable Workweeks for all Current Employee Class Members.

Second, the Total Adjusted Former Employee Class Member Compensable Workweeks will be calculated by adding (i) all Compensable Workweeks for all Former Employee Class Members who did not sign prior releases of claims; and (ii) one-half of all Compensable Workweeks for all Former Employee Class Members who signed prior releases of claims to account for funds received in exchange for the releases of claims. The Former Employee Class Members who signed prior releases of claims are Gregory Acevedo, Jesus Hinojos, Khamphong Noravong, Daniel Arellano, Arturo Perez Juarez, Rudy Ramirez, Julio Calderon, Omar Lopez, John Riedy, Maynard Claycomb, Jorge Loredo, Daniel Rios, Antonio Corrales, Luan Luu, Jose Serna, Albert Cruz, Rodrigo Melchor, Gary Sutton, Nelson Franco, Edwin Moz Martinez, Robert Wagner, Gilbert Gonzalez, Saul Nava, and Michael Welch.

Third, the Total Adjusted Compensable Workweeks will be calculated by adding the Total Current Employee Class Member Compensable Workweeks and the Total Adjusted Former Employee Class Member Compensable Workweeks.

Fourth, the Maximum Net Settlement Amount will be calculated by subtracting from the Maximum Settlement Amount (as approved by the Court) (1) the Class Representative Payments and the Special Anaya Settlement Payment; (2) the Class Counsel Fees Payment and the Class Counsel Litigation Expenses Payment; (3) the Settlement Administrator’s fees and expenses; (4) the payment to the LWDA; and (5) any other fees or expenses (other than attorneys’ fees and expenses) incurred in implementing the terms and conditions of this Agreement and securing dismissal of Rutti II as approved by the Superior Court.

Fifth, the Minimum Net Settlement Amount will be calculated by adding (1) the Maximum Net Settlement Amount multiplied by the fraction produced when the Total Current Employee Class Member Compensable Workweeks are divided by the Total Adjusted Compensable Workweeks and (2) the Maximum Net Settlement Amount multiplied by the fraction produced when the Total Adjusted Former Employee Class Member Comparable Workweeks are divided by the Total Adjusted Compensable Workweeks, and then multiplied by 3/4. In other words, there will be a guaranteed payout of 100% of the Maximum Net Settlement Amount allocable to the claims of Current Employee Class Members and of 75% of the Maximum Net Settlement Amount allocable to the claims of Former Employee Class Members, based on the workweek formula set forth above.

If all Former Employee Class Members or their bankruptcy trustees submit valid Claim Forms, the Net Settlement Amount will be the Maximum Net Settlement Amount.

However, if a Former Employee Class Member or his bankruptcy trustee does not file a valid Claim Form, such Former Employee Class Member or his bankruptcy trustee will not be eligible to receive a Settlement Share, and the Settlement Share that would have been attributed to such Former Employee Class Member or his bankruptcy trustee will be deducted from the Maximum Net Settlement Amount. The amount remaining after those deductions will be the Net Settlement Amount; however, the Maximum Net Settlement Amount will not be reduced below the Minimum Net Settlement Amount.

To the extent that the Net Settlement Amount is less than the Maximum Net Settlement Amount, the difference will be retained by LoJack, and neither any Plaintiff, nor any Class Member, nor Class Counsel, nor any other third party will be eligible to claim all or any part of it.

Settlement Share. Subject to the terms and conditions of this Agreement, the Settlement Administrator will allocate a Settlement Share from the Net Settlement Amount to eligible Participating Class Members or their bankruptcy trustees as follows:

Calculation.

First, the Final Total Adjusted Compensable Workweeks will be calculated by summing: (a) all Compensable Workweeks for Current Employee Class Members who did not opt out of the Settlement and whose bankruptcy trustees did not opt out of the Settlement; (b) all Compensable Workweeks for Former Employee Class Members who did not opt out of the Settlement or whose bankruptcy trustees did not opt out of the Settlement, who did not sign prior releases of claims, and who filed valid Claim Forms or whose bankruptcy trustees filed valid Claim Forms; and (c) half of the Compensable Workweeks for Former Employee Class Members who did not opt out of the Settlement or whose bankruptcy trustee did not opt out of the Settlement, who signed prior releases of claims, and who filed valid Claim Forms or whose bankruptcy trustees filed valid Claim Forms.

Each Current Employee Class Member or his bankruptcy trustee will be allocated a Settlement Share equal to the Net Settlement Amount times the Current Employee Class Member’s Compensable

Where the applicable Former Employee Class Member did not sign a prior release of claims, the Former Employee Class Member or his bankruptcy trustee will be allocated a Settlement Share equal to the Net Settlement Amount times the Former Employee Class Member’s Compensable Workweeks divided by the Final Total Adjusted Compensable Workweeks.

Where the applicable Former Employee Class Member signed a prior release of claims, the Former Employee Class Member or his bankruptcy trustee will be allocated a Settlement Share equal to half of the Net Settlement Amount times the Former Employee Class Member’s Compensable Workweeks divided by the Final Total Adjusted Compensable Workweeks.

The Bankrupt Class Members include: Edick Allahyari, Mynor Andrade, Antonio Ascencio, Daniel C. Binder, Hugo R. Bolanos, Jr., Ascary Carrillo, Gilbert Casas, Rogelio Chavez, Sergio Chavez, Joaquin G. Cocom, Vuong L. Doan, Rodolfo Flores, Jr., Eric T. Floria, Christopher Franco, Nelson Franco, Rigoberto Garcia, Robert W. Gately, III, Joel M. Hernandez, Juan Managa, Saul Nava, Dominique Nguyen, Justin A. Pinho, Adrian Reyes, Gerardo Reyes, Raul G. Sanchez, Marlon A. Sequeira, Luis Torres, Carlos Valiente, and Orlando White. The Parties will update this list prior to filing for preliminary approval of the Settlement.

Where a Net Settlement Share is otherwise payable under the Settlement, the Net Settlement Share attributable to a Bankrupt Class Member who filed for bankruptcy after the end of his employment in a class position will be paid to his bankruptcy trustee, unless the Bankrupt Class Member provides the Settlement Administrator with written confirmation of abandonment by his bankruptcy trustee of the claims asserted on behalf of the Bankrupt Class Member in Rutti II. If the Bankrupt Class Member provides a written confirmation of abandonment of claims to the Settlement Administrator, and if the Net Settlement Share is otherwise payable under the Settlement, the Settlement Administrator will pay the Bankrupt Class Member’s Net Settlement Share to the Bankrupt Class Member.

Where a Net Settlement Share is otherwise payable under the Settlement, the Net Settlement Share attributable to a Bankrupt Class

For the portion of the Bankrupt Class Member’s Net Settlement Share attributable to time worked in a class position before the Bankrupt Class Member filed for bankruptcy, half of such amount will be paid to the Bankrupt Class Member and half to the Bankrupt Class Member’s bankruptcy trustee, unless the Bankrupt Class Member provides the Settlement Administrator with written confirmation of abandonment by the bankruptcy trustee of the claims asserted on behalf of the Bankrupt Class Member in Rutti II. If the Bankrupt Class Member provides a written confirmation of abandonment of the claims asserted on behalf of the Bankrupt Class Member in Rutti II to the Settlement Administrator, and if the Net Settlement Share is otherwise payable under the Settlement, the Settlement Administrator will pay the Bankrupt Class Member’s full Net Settlement Share to the Bankrupt Class Member.

For the portion of the Bankrupt Class Member’s Net Settlement Share attributable to time worked in a class position after the Bankrupt Class Member filed for bankruptcy, 100% of such amount will be paid directly to the Bankrupt Class Member, provided that the amount is otherwise payable under the Settlement.

One-third of each Settlement Share (the “Wage Portion”) is intended to settle each Participating Class Member’s claims for unpaid wages. Accordingly, the Wage Portion will be reduced by applicable employee tax deductions and withholdings and the employer’s share of taxes applicable to the Wage Portion (including FICA payments). The Settlement Administrator will issue a Form W-2 with respect to the Wage Portion less the employer’s share of taxes applicable to it.

One-third of the Settlement Share (the “Non-Wage Reimbursement Portion”) is intended to settle each Participating Class Member’s claims for reimbursement of necessary business related expenses incurred in the course and scope of employment. Accordingly, the Non-Wage Reimbursement Portion will not be reduced by tax deductions and withholdings; instead, the Settlement Administrator will issue a Form 1099 with respect to the Non-Wage Reimbursement Portion.

One-third of the Settlement Share (the “Non-Wage Interest and Penalties Portion”) is intended to settle each Participating Class Member’s claims for interest on unpaid wages and unreimbursed business-related expenses and civil and statutory penalties. Accordingly, the Non-Wage Interest and Penalties Portion will not be reduced by tax deductions and withholdings; and, instead, the Settlement Administrator will issue a Form 1099 with respect to the Non-Wage Interest and Penalties Portion.

Effect of Former Employee Class Members Failing to Submit Claim Forms. Former Employee Class Members or their bankruptcy trustees who fail to timely submit a valid Claim Form will receive no Settlement Share, and the Settlement Share that would have been attributed to such Class Member or his bankruptcy trustee will be deducted from the Maximum Net Settlement Amount, subject to the requirement that in no event will LoJack pay less than the Minimum Net Settlement Amount.

Attorneys’ Fees Award in Rutti I. Within 10 days after this Agreement has been fully executed, LoJack will pay to R-G the attorneys’ fees award issued in Rutti I, Docket Nos. 295, 297, and 298 (the “Rutti I Attorneys’ Fees Award”), plus interest at the legal rate specified by 28 U.S.C. section 1961(a). Interest will not continue to accrue on the Rutti I Attorneys’ Fees Award in R-G’s favor after the payment is made. However, LoJack will retain the Rutti I Appeal pending the Agreement becoming Final. If the Agreement becomes Final, LoJack will withdraw the Rutti I Appeal. If the Agreement does not become Final, LoJack may proceed with the Rutti I Appeal and the Parties will retain all their rights regarding the Rutti I Appeal, any post-appeal proceedings, any reduction in the Rutti I Attorneys’ Fees Award, and any fees awarded for work performed on the Rutti I Appeal.

Payments to Plaintiffs and Class Counsel. Subject to the terms and conditions of this Agreement, the Settlement Administrator will make the following payments out of the Maximum Settlement Amount as follows:

To Plaintiffs: In addition to their Net Settlement Shares, Plaintiffs will apply to the Superior Court for an award of not more than $25,000 each as their Class Representative Payments or, in the case of Anaya, as his Special Anaya Settlement Payment. LoJack will not oppose Class Representative Payments and the Anaya Settlement Payment of $25,000 to each Plaintiff. The Settlement Administrator will pay the Class Representative Payments and Anaya Settlement Payment approved by the Superior Court (but not more than $25,000 each) out of the Maximum Settlement Amount. If the Superior Court approves a Class Representative Payment or Special Anaya Settlement Payment of less than $25,000, the remainder will be retained in the Maximum Net Settlement Amount. Tax deductions and withholdings will not be taken from the Class Representative Payments and Special Anaya Settlement

To Class Counsel: Class Counsel will apply to the Superior Court for an award of not more than $3,240,000 (40% of the Maximum Settlement Amount) as their Class Counsel Fees Payment and an amount not more than $275,000 as their Class Counsel Litigation Expenses Payment, and LoJack will not oppose their request. The Settlement Administrator will pay the amount approved by the Superior Court (but not more than $3,240,000 and $275,000, respectively) out of the Maximum Settlement Amount. If the Superior Court approves a Class Counsel Fees Payment or a Class Counsel Litigation Expenses Payment of less than $3,240,000 or $275,000, respectively, the remainder will be retained in the Maximum Net Settlement Amount. Tax deductions and withholdings will not be taken from the Class Counsel Fees Payment or the Class Counsel Litigation Expenses Payment, and instead a Form 1099 will be issued to Class Counsel.

To LWDA. The Parties will apply to the Superior Court for a payment out of the Maximum Settlement Amount to the LWDA of $30,000 (the “LWDA Payment”) as the LWDA’s share of the settlement of statutory penalties paid under this Agreement pursuant to PAGA. If the Superior Court approves an LWDA Payment of less than $30,000, the remainder will be retained in the Maximum Net Settlement Amount.

To the responsible tax authorities. The Settlement Administrator will pay out of each Settlement Share to the responsible tax authorities (a) the employer’s share of payroll taxes on the Wage Portion of the Settlement Share; and (b) any other required tax withholdings or deductions on the Wage Portion.

To the Settlement Administrator. The Settlement Administrator will pay out of the Maximum Settlement Amount to itself its reasonable fees and expenses as approved by the Superior Court in an amount not to exceed $50,000.

Appointment of Settlement Administrator. The Parties will ask the Superior Court to appoint Gilardi & Co., LLC, a qualified administrator, to serve as the Settlement Administrator, which, as a condition of appointment, will agree to be bound by this Agreement with respect to the performance of its duties and its compensation. The Settlement Administrator’s duties will include preparing, printing, and mailing the Class Notice Packet to the Class Members and the bankruptcy trustees; conducting a National Change of Address search on any Class Notice Packet returned by the U.S. Postal Service as non-deliverable, and re-mailing the Class Notice Packet to the Class Member’s or bankruptcy trustee’s new address; setting up a toll-free telephone number to receive calls from Class Members and bankruptcy trustees; determining the correct number of Compensable Workweeks; receiving completed

The Parties jointly will move the Superior Court for an order giving Preliminary Approval of the Settlement, setting a date for the Final Approval Hearing, and approving the Class Notice, the Claim Form for Settlement Share (as evidenced by Exhibit B-1 for Former Employee Class Members other than Bankrupt Class Members, and Exhibit B-2 for Former Employee Class Members who also are Bankrupt Class Members, to this Agreement), the Class Member Settlement Information Sheet (as evidenced by Exhibit C-1 for Current Employee Class Members who are not Bankrupt Class Members, and Exhibit C-2 for Current Employee Class Members who are Bankrupt Class Members, to this Agreement), and the form of Election Not to Participate in Settlement (as evidenced by Exhibit D to this Agreement) (the “Motion for Preliminary Approval”). Any disagreement among the Parties concerning the Class Notice, the Claim Form for Settlement Share, the Class Member Settlement Information Sheet, the Election Not to Participate in Settlement, or other documents necessary to implement the Settlement will be referred to the Superior Court for resolution.

At the hearing on the Motion for Preliminary Approval, the Parties will jointly appear, support the granting of the motion, and submit an Order Granting Preliminary Approval of Settlement, Approving Class Notice, and Setting Hearing for Final Approval of Settlement in the form evidenced by Exhibit E to this Agreement.

Should the Superior Court decline to preliminarily approve all material aspects of the Settlement, the Settlement will be null and void and the Parties will have no further obligations under it.

Notice to Class Members. After the Superior Court enters its order granting Preliminary Approval of the Settlement, every Class Member and bankruptcy trustee will be provided with the Class Notice Packet (which will include the Class Notice completed to reflect the order granting Preliminary Approval of the Settlement and (as applicable) the Claim Form for Settlement Share or Class Member Settlement Information Sheet completed to show the Class Member’s information) as follows:

Within 20 days after the date on which the Superior Court has granted preliminary approval, LoJack will provide to the Settlement Administrator the names, last known addresses and telephone numbers, Social Security numbers, and the number of Compensable Workweeks of all Class Members (the “Class Members’ Data”). At the same time, LoJack will provide the Class Members’ Data (without Social Security numbers) to Class Counsel. LoJack also will provide the Settlement Administrator and Class Counsel with the names and last known addresses and telephone numbers for the Bankrupt Class Members’ bankruptcy trustees. Class Counsel will also provide such information to the Settlement Administrator if LoJack’s information is inaccurate or incomplete and Class Counsel are able to obtain such information from the Bankrupt Class Members. If any of the Class Members’ Data are unavailable to LoJack, LoJack will so inform Class Counsel and the Parties will make their best efforts to reconstruct or otherwise agree upon the Class Members’ Data prior to when it must be submitted to the Settlement Administrator. If the Parties are unable to agree, the dispute will be resolved pursuant to the dispute-resolution procedure set forth in section III.H.5. This information will otherwise remain confidential and will not be disclosed to anyone, except as required to applicable taxing authorities, in order to carry out the reasonable efforts described in section III.H.2.c., or pursuant to LoJack’s express written authorization or by order of the Superior Court.

Within 20 days after receiving the Class Members’ Data and bankruptcy trustee information, or as soon thereafter as it is able to do so, the Settlement Administrator will mail the Class Notice Packets to all identified Class Members and bankruptcy trustees via first-class regular U.S. Mail using the mailing address information provided by LoJack, unless modified by any updated address information that the Settlement Administrator obtains in the course of administration of the Settlement. The exterior of the Class Notice Packet’s mailing envelope, as part of the return address, will include the following: “RUTTI V. LOJACK CORP. CLASS ACTION SETTLEMENT ADMINISTRATOR,” and directly beneath the address, will include the following: “IMPORTANT LEGAL DOCUMENT REGARDING

If a Class Notice Packet is returned because of an incorrect address, the Settlement Administrator will promptly, and not later than 10 days from receipt of the returned packet, search for a more current address for the Class Member or bankruptcy trustee and re-mail the Class Notice Packet to the Class Member or bankruptcy trustee. The Settlement Administrator will use the Class Members’ Data and otherwise work with LoJack to find that more current address. The Settlement Administrator will be responsible for taking reasonable steps, consistent with its agreed-upon job parameters, court orders and fee, as agreed to with Class Counsel and according to the following deadlines, to trace the mailing address of any Class Member or bankruptcy trustee for whom a Class Notice Packet is returned by the U.S. Postal Service as undeliverable. These reasonable steps shall include, at a minimum, the tracking of all undelivered mail; performing address searches for all mail returned without a forwarding address; and promptly re-mailing to Class Members or bankruptcy trustees for whom new addresses are found. If the Class Notice Packet is re-mailed, the Settlement Administrator will note for its own records and notify Class Counsel and LoJack’s Counsel of the date and address of each such re-mailing as part of a weekly status report provided to the Parties. Class Counsel will be entitled to receive from the Settlement Administrator any updated address information about a Class Member or bankruptcy trustee as the Settlement Administrator obtains such information.

As part of its weekly status report, the Settlement Administrator will inform Class Counsel and LoJack’s Counsel of completed Claim Forms and Elections Not to Participate in Settlement it receives.

Not later than 16 court days prior to the Final Approval Hearing, the Settlement Administrator will serve on the Parties and file with the Court a declaration of due diligence setting forth its compliance with its obligations under this Agreement. Prior to the Final Approval Hearing, the Settlement Administrator will supplement its declaration of due diligence if any material changes occur between the date of the filing of its prior declaration and the hearing on final approval.

Deadline for Submission of Claim Forms for Settlement Shares, Class Member Settlement Information Sheets, And Abandonments of Claims from Bankruptcy Trustees. Claim Forms for Settlement Shares, Class

Otherwise, the Claim Form for Settlement Share, Class Member Settlement Information Sheet, or abandonment of claims from a bankruptcy trustees will not be timely and will have no effect.

Comments on or Objections to Settlement; Elections Not to Participate in Settlement. Class Members and bankruptcy trustees may submit comments on or objections to the Settlement or Elections Not to Participate in Settlement pursuant to the following procedures:

Comments on or Objections to Settlement. The Class Notice will provide that Class Members and bankruptcy trustees who wish to comment on or object to the Settlement must file with the Superior Court and serve on counsel for the Parties not later than 45 days after the Settlement Administrator mails the Class Notice a written comment on or objection to the Settlement and setting forth the grounds for the comment or objection; and must file with the Superior Court and serve on counsel for the Parties not later than 9 court days before the date of the Final Approval Hearing a written comment on or objection to the request for the Class Representative Payments, the Special Anaya Settlement Payment, or the Class Counsel Fees Payment or Class Counsel Litigation Expenses Payment. The statement will also indicate whether the Class Member or bankruptcy trustee intends to appear and comment or object at the Final Approval Hearing; the failure to so indicate will constitute a waiver of the right to appear at the hearing. A Class Member or bankruptcy trustee who does not file and serve a written comment or objection in the manner and by the deadlines specified above will be deemed to have waived any comments or objections and will be foreclosed from making any comments or objections (whether by appeal or otherwise) to the Settlement or other related matters.

Election Not to Participate in Settlement. The Class Notice also will provide that Class Members and bankruptcy trustees who wish to exclude themselves from the Settlement must mail to the Settlement Administrator not later than 45 days after the Settlement Administrator mails the Notice a signed Election Not to Participate in Settlement. If a question is raised about the authenticity of a signed

Report. Not later than 14 days after the deadline for submission of Elections Not to Participate in Settlement, the Settlement Administrator will provide the Parties with a complete and accurate list of all Participating Class Members, Non-Participating Class Members, bankruptcy trustees who submitted timely and valid Elections Not to Participate in Settlement, and bankruptcy trustees who did not submit timely and valid Elections Not to Participate in Settlement.

Resolution of Disputes. If a Class Member or his bankruptcy trustee disputes the number of Compensable Workweeks stated for that Class Member in his or her Class Member Settlement Information Sheet (current employees) or Claim Form for Settlement Share (former employees), the Class Member or bankruptcy trustee must ask the Settlement Administrator to resolve the matter by returning the Information Sheet or Form with a statement of the number of Compensable Workweeks that he or she contends were worked and including with the Information Sheet or Form any documentation the Class Member or bankruptcy trustee has to support his or her contention not later than 45 days after the Settlement Administrator mails the Class Notice. In the event of such a dispute, LoJack will manually review its payroll and personnel records to verify the correct number of Compensable Workweeks. LoJack’s records will have a rebuttable presumption of correctness. After consultation with Class Counsel, the Class Member or bankruptcy trustee, and LoJack, the Settlement Administrator will make a determination of the Class Member’s number of Compensable Workweeks, and that determination will be final, binding on the Parties and the Class Member or bankruptcy trustee, and non-appealable.

No Solicitation of Comment, Objection, or Election Not to Participate. Neither the Parties nor their respective counsel will solicit or otherwise encourage directly or indirectly any Class Member or bankruptcy trustee to

Right of LoJack to Reject Settlement. If five percent or more of Class Members and their bankruptcy trustees, or a number of Class Members and their bankruptcy trustees whose Settlement Shares would be worth five percent or more of the Maximum Net Settlement Amount, timely submit completed Elections Not to Participate in Settlement, LoJack will have the right, but not the obligation, to void the Settlement and the Parties will have no further obligations under the Settlement, including any obligation by LoJack to pay the Maximum Settlement Amount, or any amounts that otherwise would have been owed under this Agreement, except that LoJack will pay the Settlement Administrator’s reasonable fees and expenses incurred as of the date that LoJack exercises its right to void the Settlement. LoJack will notify Class Counsel and the Superior Court whether it is exercising this right to void not later than 14 days after the Settlement Administrator notifies the Parties of the number of valid Elections Not to Participate in Settlement.

Not later than 16 court days before the Final Approval Hearing, the Parties jointly will file with the Superior Court a motion for final approval of the Settlement, the LWDA Payment, and payment of the Settlement Administrator’s reasonable fees and expenses and a memorandum in support of their motion; and Plaintiffs and Class Counsel will serve on LoJack and file with the Superior Court a motion for awards of the Class Representative Payments, the Special Anaya Settlement Payment, the Class Counsel Fees Payment, and the Class Counsel Litigation Expenses Payment pursuant to this Settlement, and memoranda in support of their motions.

Not later than five court days before the Final Approval Hearing, the Parties jointly may file a reply in support of their motion for final approval of the Settlement, the LWDA Payment, and payment of the Settlement Administrator’s reasonable fee and expenses to the extent that any opposition to the motion is filed; and Plaintiffs and Class Counsel may file replies in support of their motions for the Class Representative Payments, the Special Anaya Settlement Payment, the Class Counsel Fees Payment, and the Class Counsel Litigation Expenses Payment.

If the Superior Court does not grant final approval of the Settlement or grants final approval conditioned on any material change to the Settlement, then either Party will have the right to void the Settlement; if that occurs, the Parties will have no further obligations under the

Upon final approval of the Settlement by the Superior Court at or after the Final Approval Hearing, the Parties will present the Judgment in the form evidenced by Exhibit F to this Agreement for the Superior Court’s approval and entry. After entry of the Judgment, the Superior Court will have continuing jurisdiction over Rutti II and the Settlement solely for purposes of (i) enforcing this Agreement, (ii) addressing settlement administration matters, and (iii) addressing such post-Judgment matters as may be appropriate under court rules or applicable law.

Waiver of Right to Appeal. Provided that the Judgment is consistent with the material terms and conditions of this Agreement, Plaintiffs, Participating Class Members who did not timely submit an objection to the Settlement, bankruptcy trustees who did not timely submit an objection to the Settlement, LoJack, and their respective counsel hereby waive any and all rights to appeal from the Judgment, including all rights to any post-judgment proceeding and appellate proceeding, such as a motion to vacate judgment, a motion for new trial, a motion under California Code of Civil Procedure section 473, and any extraordinary writ, and the Judgment therefore will become nonappealable at the time it is entered. The waiver of appeal does not include any waiver of the right to oppose any appeal, appellate proceedings or post-judgment proceedings. This paragraph does not preclude Plaintiffs or Class Counsel from appealing from a refusal by the Superior Court to award the full Class Representative Payments, the Special Anaya Settlement Payment, the Class Counsel Fees Payment, or the Class Counsel Litigation Expenses Payment sought by them. If an appeal is taken from the Judgment, the time for consummation of the Settlement (including making payments under the Settlement) will be suspended until such time as their appeal is finally resolved and the Judgment becomes Final.

Vacating, Reversal, or Material Modification of Judgment on Appeal or Review. If, after a notice of appeal, a petition for review, or a petition for

Two weeks after the Settlement becomes Final, the Settlement Administrator will pay to Class Counsel the Class Counsel Fees Payment and the Class Counsel Litigation Expenses Payment.

Four weeks after the Settlement becomes Final, the Settlement Administrator will pay to eligible Participating Class Members or their bankruptcy trustees, the Net Settlement Shares; to the responsible tax authorities, the employer’s share of payroll taxes on Settlement Shares and any other required tax withholding and deductions; to Plaintiffs, the Class Representative Payments and the Special Anaya Settlement Payment; to the LWDA, the LWDA Payment; and to the Settlement Administrator, its reasonable fees and expenses.

Uncashed Net Settlement Share Checks. A Participating Class Member or his bankruptcy trustee must cash his or her Net Settlement Share check within 150 calendar days after it is mailed to him or her. If a check is returned to the Settlement Administrator, the Settlement Administrator will make all reasonable efforts to re-mail it to the Participating Class Member or his bankruptcy trustee at his or her correct address. If any Participating Class Member’s or bankruptcy trustee’s Net Settlement Share check is not cashed within 90 days after its last mailing to the Participating Class Member or his bankruptcy trustee, the Settlement Administrator will send the Participating Class Member or his bankruptcy trustee a letter informing him or her that unless the check is cashed in the next 60 days, it will expire and become non-negotiable, and offer to replace the check if it was lost or misplaced but not cashed. If the check remains uncashed by the expiration of the 60-day period

Plaintiffs. As of the date of the Judgment, Plaintiffs hereby fully and finally release LoJack, and its parents, predecessors, successors, subsidiaries, affiliates, and trusts, and all of its employees, officers, agents, attorneys, stockholders, fiduciaries, other service providers, and assigns, from any and all claims, known and unknown, including but not limited to claims arising from or related to their employment with LoJack, their compensation while a LoJack employee, and the termination of their employment with LoJack, under federal, state and/or local law, statute, ordinance, regulation, common law, or other source of law (“Plaintiffs’ Released Claims”). Plaintiffs’ Released Claims include, but are not limited to, all claims arising from or related to the matters alleged in Rutti II, including but not limited to allegations that LoJack did not pay for all hours worked, did not provide meal and rest periods, did not reimburse for business-related expenses, did not pay all wages upon termination of employment, and engaged in practices in violation of California Business and Professions Code section 17200 et seq. Plaintiffs’ Released Claims also include all claims for unpaid wages and premiums, including minimum wages, overtime wages, meal and rest-period premiums, and interest; statutory and civil penalties, including, but not limited to, civil penalties under the California Labor Code Private Attorneys General Act, Cal. Lab. Code § 2698 et seq. (“PAGA”), recordkeeping penalties, pay-stub penalties, minimum-wage penalties, missed meal period and rest-period penalties, and waiting-time penalties; and attorneys’ fees and expenses. Plaintiffs’ Released Claims also include all such claims arising under the California Labor Code (including, but not limited to, sections 203, 226.7, 227.3, and 2698 et seq.); the wage orders of the California Industrial Welfare Commission; California Business and Professions Code section 17200 et seq.; the California common law of contract; the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; federal common law; and the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq. Plaintiffs’ Released Claims also include all claims for lost wages and benefits, emotional distress, punitive damages, and attorneys’ fees and expenses arising under federal, state, or local laws against discrimination, harassment, and wrongful termination, such as, by way of example only, (as amended) 42 U.S.C. section 1981, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the California Fair Employment and Housing Act; and the law of contract and tort.

Participating Class Members. As of the date of the Judgment, all Participating Class Members and their bankruptcy trustees, as well as bankruptcy trustees who did not submit timely and valid Elections Not to Participate in Settlement, hereby fully and finally release LoJack, and its parents, predecessors, successors, subsidiaries, affiliates, and trusts, and all of its employees, officers, agents, attorneys, stockholders, fiduciaries, other service providers, and assigns, from any and all claims, known and unknown, arising from or related to the claims and allegations made in Rutti II, whether arising under federal, state and/or local law, statute, ordinance, regulation, common law, or other source of law (“Participating Class Members’ Released Claims”). Participating Class Members’ Released Claims include, but are not limited to, all claims arising from or related to allegations that LoJack did not pay for all hours worked, did not provide meal and rest periods, did not reimburse for business-related expenses, did not pay all wages upon termination of employment, and engaged in practices in violation of California Business and Professions Code section 17200 et seq. Participating Class Members’ Released Claims also include all claims for unpaid wages and premiums, including minimum wages, overtime wages, meal and rest-period premiums, and interest; statutory and civil penalties, including, but not limited to, civil penalties under PAGA, recordkeeping penalties, pay-stub penalties, minimum-wage penalties, missed meal period and rest-period penalties, and waiting-time penalties; and attorneys’ fees and expenses. Participating Class Members’ Released Claims also include all such claims arising under the California Labor Code (including, but not limited to, sections 203, 226.7, 227.3, and 2698 et seq.); the wage orders of the California Industrial Welfare Commission; California Business and Professions Code section 17200 et seq.; the California common law of contract; the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; federal common law; and the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.

Class Counsel. As of the date of the Final Judgment, and except as otherwise provided by this Agreement (including its provision for LoJack’s satisfaction of the District Court’s order and judgment awarding attorneys’ fees to R-G in Rutti I), Class Counsel and any counsel associated with Class Counsel waive any claim to costs and attorneys’ fees and expenses against LoJack arising from or related to Rutti I and Rutti II, including but not limited to claims based on the California Labor Code, the California Code of Civil Procedure, the Fair Labor Standards Act, or any other statute or law (the “Class Counsel Released Claims”).

Waiver of Rights Under California Civil Code Section 1542. Plaintiffs’ Released Claims, the Participating Class Members Released Claims, and the Class Counsel Released Claims include all such respective claims, whether known or unknown by the releasing party. Thus, even if Plaintiffs, a Participating Class Member, a bankruptcy trustee, or Class Counsel discover

No Effect on Other Benefits. The Net Settlement Shares will not result in any additional benefit payments (such as 401(k) or bonus) beyond those provided by this Agreement to Plaintiffs or Participating Class Members or their bankruptcy trustees, and Participating Class Members and their bankruptcy trustees will be deemed to have waived all such claims, whether known or unknown by them, as part of their release of claims under this Agreement.

LoJack denies that it has engaged in any unlawful activity, has failed to comply with the law in any respect, has any liability to anyone under the claims asserted in Rutti II, or that but for the Settlement a class should be certified in Rutti II. This Agreement is entered into solely for the purpose of compromising highly disputed claims. Nothing in this Agreement is intended or will be construed as an admission of liability or wrongdoing by LoJack, or an admission by Plaintiffs that any of their claims was non-meritorious or any defense asserted by LoJack was meritorious. This Settlement and the fact that Plaintiffs and LoJack were willing to settle Rutti II will have no bearing on, and will not be admissible in connection with, any litigation (other than solely in connection with the Settlement).

LoJack has agreed not to contest further the certification of the Class for the sole purpose of effectuating this Settlement. Should the Settlement be voided by LoJack pursuant to this Agreement, or not approved by the Superior Court, or should the Judgment not become Final, the fact that LoJack was willing not to contest further class certification as part of the Settlement will have no bearing on, and will not be admissible in connection with, the issue of whether the

Whether or not the Judgment becomes Final, neither the Settlement, this Agreement, any document, statement, proceeding or conduct related to the Settlement or the Agreement, nor any reports or accounting of those matters, will be (i) construed as, offered or admitted in evidence as, received as, or deemed to be evidence for any purpose adverse to LoJack or any other beneficiary of the releases granted under this Agreement (the “Released Parties”), including, but not limited to, evidence of a presumption, concession, indication or admission by any of the Released Parties of any liability, fault, wrongdoing, omission, concession or damage; or (ii) disclosed, referred to or offered in evidence against any of the Released Parties, in any further proceeding in Rutti II, or any other civil, criminal or administrative action or proceeding except for purposes of effectuating the Settlement pursuant to this Agreement.

This section and all other provisions of this Agreement notwithstanding, any and all provisions of this Agreement may be admitted in evidence and otherwise used in any and all proceedings to enforce any or all terms of this Agreement, or in defense of any claims released or barred by this Agreement.

Integrated Agreement. After this Agreement is signed and delivered by all Parties and their counsel, this Agreement and its exhibits will constitute the entire agreement between the Parties relating to the Settlement, and it will then be deemed that no oral representations, warranties, covenants, or inducements have been made to any Party concerning this Agreement or its exhibits other than the representations, warranties, covenants, and inducements expressly stated in this Agreement and its exhibits.

Attorney Authorization. Class Counsel and LoJack’s Counsel warrant and represent that they are authorized by Plaintiffs and LoJack, respectively, to take all appropriate action required or permitted to be taken by such Parties pursuant to this Agreement to effectuate its terms, and to execute any other documents required to effectuate the terms of this Agreement. The Parties and their counsel will cooperate with each other and use their best efforts to effect the implementation of the Settlement. In the event the Parties are unable to reach agreement on the form or content of any document needed to implement the Agreement, or on any supplemental provisions that may become necessary to effectuate the terms of this Agreement, the Parties will seek the assistance of the Superior Court, and in all cases all such documents,

Modification of Agreement. This Agreement, and any and all parts of it, may be amended, modified, changed, or waived only by an express written instrument signed by all Parties or their successors-in-interest.

Agreement Binding on Successors. This Agreement will be binding upon, and inure to the benefit of, the successors of each of the Parties.

Applicable Law. All terms and conditions of this Agreement and its exhibits will be governed by and interpreted according to the laws of the State of California, without giving effect to any conflict of law principles or choice of law principles.

Cooperation in Drafting. The Parties have cooperated in the drafting and preparation of this Agreement. This Agreement will not be construed against any Party on the basis that the Party was the drafter or participated in the drafting.

Fair Settlement. The Parties and their respective counsel believe and warrant that this Agreement reflects a fair, reasonable, and adequate settlement of Rutti II and have arrived at this Agreement through arms-length negotiations, taking into account all relevant factors, current and potential.

Headings. The descriptive heading of any section or paragraph of this Agreement is inserted for convenience of reference only and does not constitute a part of this Agreement.

Notice. All notices, demands or other communications given under this Agreement will be in writing and deemed to have been duly given as of the third business day after mailing by United States mail, addressed as follows:

Execution in Counterpart. This Agreement may be executed in one or more counterparts. All executed counterparts and each of them will be deemed to be one and the same instrument provided that counsel for the Parties will exchange between themselves original signed counterparts. Facsimile signatures will be accepted if the original signature is provided within seven days. Any executed counterpart will be admissible in evidence to prove the existence and contents of this Agreement.

MIKE RUTTI

GERSON ANAYA

CHRISTIAN FURTADO

JAMES HAMILTON

LOJACK CORPORATION

MATTHEW RIGHETTI

JEFFREY D. WOHL

Under the Settlement, LoJack will pay up to a Maximum Settlement Amount of $8,100,000.

From the Maximum Settlement Amount, and subject to Court approval, the Settlement Administrator will pay Class Representative Payments to plaintiffs Rutti, Furtado, and Hamilton, the Special Anaya Settlement Payment, Class Counsel’s attorneys’ fees and costs, the Settlement Administrator’s fees and expenses, any other fees or expenses (other than attorneys’ fees and expenses) incurred in implementing the Settlement and securing dismissal of the Action, and an amount to the California Labor and Workforce Development Agency (the “LWDA”) for its share of the settlement of claims for civil penalties. The remaining amount will be the “Maximum Net Settlement Amount.” The following sub-paragraphs provide further details regarding various payments from the Maximum Settlement Amount.

Class Representative Payments and Special Anaya Settlement Payment: In addition to their shares as Participating Class Members, Plaintiffs will seek approval from the Court for payment of $25,000 each to Mike Rutti, Christian Furtado, and James Hamilton for their services as Class Representatives in initiating the Action, their work in the prosecution of the Action, and their acceptance of the risk of paying LoJack’s attorneys’ fees and expenses in the event of an unsuccessful outcome of the Action; and a payment of $25,000 to Gerson Anaya to secure a full release of claims from him.

Class Counsel Fees Payment and Litigation Expenses Payment in Rutti Class Action: Class Counsel have represented and continue to represent the Class on a contingency-fee basis. That means that attorneys’ fees are paid only if money is recovered for the class. It is common to award attorneys’ fees as a percentage of the recovery obtained by the efforts of the attorneys for the class. As part of the final approval hearing, Matthew Righetti and John Glugoski of Righetti Glugoski, P.C, will request $3,240,000 (or 40% of the Maximum Settlement Amount) for their attorneys’ fees in connection with their work in the Rutti Class Action and up to $275,000 in reimbursement of their reasonable litigation costs and expenses that were advanced in connection with the Rutti Class Action. LoJack does not oppose these payments. Class Members and their bankruptcy trustees are not personally liable for any fees and costs. These amounts constitute full and complete compensation for all legal fees, costs and expenses of all Class Counsel, including costs and expenses resulting from experts and other vendors retained by Class Counsel in connection with the litigation and all work done through the completion of the litigation, whatever date that may be. Class Members and their bankruptcy trustees will not be required to pay Class Counsel for any other attorneys’ fees, costs or expenses out of their own pockets if the Settlement Agreement and the fee

Costs of Administration: The reasonable costs of administering the Settlement, including the Settlement Administrator’s fees and expenses, will be paid out of the Maximum Settlement Amount.

Payment to LWDA: Subject to Court approval, $30,000 will be paid to the LWDA for its share of the settlement of civil penalties claimed in the Rutti Class Action.

If a Former Employee Class Member or his bankruptcy trustee does not file a valid Claim Form, the Settlement Share that would have been attributed to such Class Member or bankruptcy trustee will be deducted from the Maximum Net Settlement Amount. However, unless LoJack exercises its right to rescission, as provided below, not less than a “Minimum Net Settlement Amount” will be allocated to settlement shares. The Minimum Net Settlement Amount equals 100% of the Maximum Net Settlement Amount allocable to the claims of Current Employee Class Members and 75% of the Maximum Net Settlement Amount allocable to the claims of Former Employee Class Members. The actual amount allocated to Settlement Shares will be the “Net Settlement Amount.”

To the extent that the Net Settlement Amount is less than the Maximum Net Settlement Amount, LoJack will retain the difference and neither any Plaintiff, nor any Class Member, nor Class Counsel, nor any other third party will be eligible to claim all or any part of it.

For Class Members who did not sign a prior release of claims, the portion of the Net Settlement Amount allocated as a Settlement Share to each Class Member and/or bankruptcy trustee who does not opt out of the Settlement and (where required) submits a valid Claim Form will be calculated as follows:

Employee payroll tax withholding and deductions and the employer’s share of payroll taxes will be taken from one-third of each Settlement Share to account for the settlement of wage claims before it is distributed to the Class Member or his bankruptcy trustee. The resulting amount is the “Net Settlement Share.”

The Net Settlement Shares and other amounts will be paid after final Court approval of the Settlement and after all rights to appeal or review are exhausted or any appeal or review has been resolved in favor of the Settlement.

If five percent or more of Class Members and their bankruptcy trustees, or a number of Class Members and bankruptcy trustees whose Settlement Shares would be worth five percent or more of the Maximum Net Settlement Amount, timely submit completed Elections Not to Participate in Settlement, LoJack will have the right, but not the obligation, to rescind the Settlement, and the Settlement and all actions taken in its furtherance will be null and void. LoJack will notify Class Counsel and the Court whether it is exercising this right to rescind not later than 14 days after the Settlement Administrator notifies the parties of the number of valid Elections Not to Participate in Settlement, which the Settlement Administrator will provide within 14 days after the deadline for submission of the Election Not to Participate in Settlement forms.

Class Member Release. As of the date of final approval of the Settlement by the Court, Class Members and their bankruptcy trustees (except for Class Members and bankruptcy trustees who submit valid and timely Election Not to Participate in Settlement forms) fully and finally release LoJack, and its parents, predecessors, successors, subsidiaries, affiliates, and trusts, and all of its employees, officers, agents, attorneys, stockholders, fiduciaries, other service providers, and assigns, from any and all claims, known and unknown, arising from or related to the claims and allegations made in the Rutti Class Action, whether arising under federal, state and/or local law, statute, ordinance, regulation, common law, or other source of law (“Participating Class Members’ Released Claims”). Participating Class Members’ Released Claims include, but are not limited to, all claims arising from or related to allegations that LoJack did not pay for all hours worked, did not provide meal and rest periods, did not reimburse for business-related expenses, did not pay all wages upon termination of employment, and engaged in practices in violation of California Business and Professions Code section 17200 et seq. Participating Class Members’ Released Claims also include all claims for unpaid wages and premiums, including minimum wages, overtime wages, meal and rest-period premiums, and interest; statutory and civil penalties, including, but not limited to, civil penalties under the California Labor Code Private Attorneys General Act, Cal. Lab. Code § 2698 et seq., recordkeeping penalties, pay-stub penalties, minimum-wage penalties, missed meal period and rest-period penalties, and waiting-time penalties; and attorneys’ fees and expenses. Participating Class Members’ Released Claims also include all such claims arising under the California Labor Code (including, but not limited to, sections 203, 226.7, 227.3, and 2698 et seq.); the wage orders of the California Industrial Welfare Commission; California Business and Professions Code section 17200 et seq.; the California common law of contract; the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; federal common law; and the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.

Release Includes Claims You May Not Know About. The Participating Class Members’ Released Claims include all such claims, whether known or unknown. Thus, if you participate in the Settlement, then even if you discover facts in addition to or different from those that you now know or believe to be true with respect to the subject matter of the Participating Class Members’ Released Claims, those claims will remain released and forever barred. Therefore, as Class Members or their bankruptcy trustees, you expressly waive and relinquish the provisions, rights, and benefits of section 1542 of the California Civil Code, which reads:

Plaintiffs’ and Class Counsel’s Support of the Settlement. Plaintiffs as Class Representatives and Class Counsel support the Settlement. Their reasons include the risk of class decertification and a trial on the merits, the risk of loss on the merits, and the inherent delays and uncertainties associated with litigation. Based on their experience litigating similar cases, Class Counsel believe that further proceedings in this case, including a trial and probable appeals, would be very expensive and protracted. No one can confidently predict how the various legal questions at issue, including the amount of damages, would ultimately be resolved. Therefore, upon careful consideration of all of the facts and circumstances of this case, Class Counsel believes that the Settlement is fair, reasonable, and adequate.

Participating in the Settlement. Class Representatives and Class Counsel represent your interests as a Class Member or Class Member’s bankruptcy trustee. Unless you elect not to participate in the Settlement, you will be bound by the terms of the Settlement and any final judgment that may be entered by the Court, and you will be deemed to have released the claims against LoJack and the other released parties described above. As a Class Member or Class Member’s bankruptcy trustee, you will not be responsible for the payment of attorneys’ fees or reimbursement of litigation expenses unless you retain your own counsel, in which event you will be responsible for your own attorneys’ fees and expenses.

Commenting on or Objecting to the Settlement. You may comment on or object to the terms of the Settlement before final approval, either by (1) mailing a written comment or objection to the Court, the Settlement Administrator, and counsel for the parties, or (2) appearing at the final approval hearing. If the Court rejects your comment or objection, however, you will still be bound by the terms of the Settlement, unless you also submit an Election Not to Participate in Settlement form.

To comment or object, you must send a written comment or objection or a written notice of your intent to appear and comment or object at the final approval hearing to the Court and to counsel at the same addresses shown below.

Any written comment or objection and/or notice of your intent to appear at the hearing must state each specific reason in support of your comment or objection and any legal support for each comment or objection. Your written comment or objection and/or notice of your intent to appear at the hearing must also state your full name, address, and the dates of your employment at LoJack (or, if you are a bankruptcy trustee, the full name, address, and the dates of employment of the Class Member for whose estate you are a trustee). To be valid and effective, you must file with the Court and serve on counsel for the parties any written comments or objections and/or notices of intent to appear at the hearing not later than [45 DAYS AFTER NOTICE MAILED], 2013, or, if the comment or objection pertains to the Class Representative Payments, the Special Anaya Settlement Payment, or the Class Counsel Fees Payment or Litigation Expenses Payment, 9 court days before April 30, 2013. A Class Member or Class Member’s bankruptcy trustee who fails to file and serve a written comment

Claiming a Net Settlement Share. The following paragraphs provide details regarding how to claim a Net Settlement Share.

Current Employees and Their Bankruptcy Trustees. If you are a Current Employee Class Member, or the bankruptcy trustee for a Current Employee Class Member, you will be entitled to a Net Settlement Share unless you submit an Election Not to Participate in Settlement form.

Former Employees and Their Bankruptcy Trustees. If you are a Former Employee or Former Employee’s bankruptcy trustee and wish to receive a Net Settlement Share, you must complete the enclosed Claim Form. The Claim Form must be completed, signed by you, and returned to the Settlement Administrator by not later than [45 DAYS AFTER NOTICE MAILED], 2013. You will not receive a Net Settlement Share unless you complete and timely submit the Claim Form, but you will remain bound by the Settlement (unless you submit an Election Not to Participate in Settlement form).

Employees Who Have Declared Bankruptcy After Their Final Employment with LoJack in a Class Position. If you filed for bankruptcy after your final employment with LoJack in a class position, you will be entitled to a Net Settlement Share if and only if you provide the Settlement Administrator with written confirmation of abandonment by your bankruptcy trustee of the claims asserted on your behalf in the Rutti Class Action. Otherwise, you will receive nothing, and your Net Settlement Share will be paid to your bankruptcy trustee.

Employees Who Have Declared Bankruptcy During Their Employment With LoJack in a Class Position. If you filed for bankruptcy during your employment with LoJack in a class position, you will be entitled to a full Net Settlement Share if and only if you provide the Settlement Administrator with written confirmation of abandonment by your bankruptcy trustee of the claims asserted on your behalf in the Rutti Class Action. Otherwise, you will receive only half of the portion of the Net Settlement Share attributable to the time you worked in a class position before you filed for bankruptcy; the other half will be paid to your bankruptcy trustee.

Disputing the Number of Compensable Workweeks. If you dispute the time period during which you were employed in a class position by LoJack between April 5, 2002, and December 3, 2012, listed on your Claim Form (if you are a former employee or bankruptcy trustee for such an individual) or on your Class Member Settlement Information Sheet (if you are a current employee or bankruptcy trustee for such an individual), you must ask the Settlement Administrator to resolve the matter. In order to do so, you must return the Claim Form or Class Member Settlement Information Sheet to the Settlement Administrator by [45 DAYS AFTER NOTICE MAILED], informing the Settlement Administrator of the fact of the dispute and the basis for your contention that a different number of compensable workweeks is correct for you (including any documentary evidence that you have to support your

Excluding Yourself from the Class and the Settlement. If you wish to exclude yourself from the Class and the Settlement, you must complete the enclosed form of Election Not to Participate in Settlement (“Election Not to Participate”). The Election Not to Participate must be completed, signed by you, and mailed to the Settlement Administrator by not later than [45 DAYS AFTER NOTICE MAILED], 2013. If the Settlement is approved by the Court, a Class Member or bankruptcy trustee who fails to mail an Election Not to Participate in the manner and by the deadline specified above will be bound by all terms and conditions of the Settlement and the Judgment, regardless of whether he or she has objected to the Settlement and whether or not he or she has submitted a Claim Form. A Class Member or bankruptcy trustee may only submit a Claim Form OR an Election Not to Participate. If a Class Member or bankruptcy trustee sends both forms, the Election Not to Participate will be deemed invalid.

Any eligible person who files a complete and timely Election Not to Participate will, upon receipt, no longer be a member of the Settlement Class and will not be eligible to receive a Net Settlement Share. Any such person, at his or her own expense, may pursue any claims he or she may have against LoJack, its affiliates, predecessor, or acquired companies. An incomplete Election Not to Participate will be deemed invalid. An Election Not to Participate submitted with a Claim Form will also be deemed invalid.

Consistent with LoJack’s policies, there will be no retaliation or adverse action taken against any Class Member who participates in the Settlement or elects not to participate in the Settlement.

The Settlement Administrator’s Address. The Court has appointed Gilardi & Co., LLC to act as an independent Settlement Administrator. If applicable, send your Claim Form for Settlement Share, your Class Member Settlement Information Sheet, your Election Not to Participate in Settlement, or your written confirmation of abandonment by your bankruptcy trustee of the claims asserted on your behalf in the Rutti Class Action to the Settlement Administrator at the following address:

The taxpayer identification number shown on this form is my correct taxpayer identification number, and

I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and

I am a U.S. person (including a U.S. resident alien). Please Check one: Yes No

The taxpayer identification number shown on this form is my correct taxpayer identification number, and

I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and

I am a U.S. person (including a U.S. resident alien). Please Check one: Yes No