1. Confidential and Proprietary Cartel Marketing February, 2015

2. Why LoJack About LoJack Auto Theft How LoJack Works Why Pre-Install LoJack Selling LoJack and Handling Objections How to Qualify your Dealer Current Promo and Profit Model Question and Answer AGENDA Confidential and Proprietary2

3. Why Sell LoJack Confidential and Proprietary3

4. LoJack by the numbers (NASDAQ: LOJN) Confidential and Proprietary4 ~$4 Billion In Assets Recovered Worldwide 9+ Million LoJack Units Installed globally 90% Recovery Rate on Cars, Trucks and SUVs 300,000+ Vehicles Recovered Worldwide 26 Years in Business (LoJack created the Stolen Vehicle Recovery market in 1986) It All Adds Up to a Brand Promise of Safety, Security, and Protection

5. Lender Advances for LoJack Chase Auto Finance - $995* Wells Fargo - $850 Honda Financial Services - $750 Ford Motor Credit Company - $800 and $1,300 Toyota Financial Services - $695 Lexus Financial Services - $695 Jaguar Financial Group - $995* Land Rover Financial Group - $995* Mazda Capital Services - $995* Subaru Motors Finance - $995* Alphera Financial - $695 * Sold With ancillary Paper Products

6. National Summary 2006 – 2012 7 year total Over 1 Billion $1,000,660,385.00** 2006 – 2012 LoJack National Recovery Data* *Source: NADA and LoJack **Value of recovery reflects LoJack equipped vehicles only. Value of vehicles recovered as a result of chop shops, theft rings, etc. not included Note: BMW: BMW and MINI Chrysler: Chrysler, Dodge, Jeep, Plymouth Ford: Aston Martin, Ford, Jag, Land Rover, Lincoln, Mazda, Mercury, Volvo GM: Buick, Cadillac, Chevy, GMC, Hummer, Olds, Pontiac, SAAB, Saturn,,Geo Toyota: Toyota and Scion Make Recovery Value Acura Total $ 33,491,450.00 Audi Total $ 12,314,950.00 BMW/MINI Total $ 45,703,034.00 Chrysler Total $ 72,773,539.00 Ford Total $ 137,083,182.00 GM Total $ 220,737,604.00 Honda Total $ 121,531,955.00 Hyundai Total $ 5,454,425.00 Infiniti Total $ 16,161,200.00 Kia Total $ 2,405,200.00 Lexus Total $ 39,473,570.00 Mercedes Total $ 54,281,441.00 Mitsubishi Total $ 7,724,484.00 Nissan Total $ 68,767,995.00 Porsche Total $ 7,586,150.00 Subaru Total $ 4,214,984.00 Suzuki Total $ 593,050.00 Toyota Total $ 142,163,829.00 VW Total $ 8,198,343.00 7 year total $ 1,000,660,385.00

7. Confidential and Proprietary7 The LoJack System is deployed in over 1,800 police departments across 28 states and the District of Columbia LoJack Police Tracking Computers are installed in almost 14,000 police cars, helicopters, and fixed-wing aircraft LoJack has international operations in over 30 countries and territories LoJack’s unique Law Enforcement Integration

8. Approximately 715,000 cars were stolen in 2011 Estimated value of those cars: $4.3 Billion The National Vehicle Recovery Rate is at 52%, a 25-year low The average dollar loss per vehicle is $6,089 About Auto Theft – Key Stats 8 And this is just in the United States. Globally, 7.1 million vehicles were stolen in 2011, representing a loss worth more than $43 Billion. A motor vehicle is stolen every 44 seconds Confidential and Proprietary

9. The hidden costs of auto theft Confidential and Proprietary9 Example of potential expenses associated with a stolen car Out of Pocket Expenses Down Payment………..………….......$2,500 Deductible….………………….….…….…...$500 Tax, License, & Fees....….………….$3,500 Replacement Vehicle Down Payment………..……………….$2,500 Tax, License, & Fees……….……….$3,000 TOTAL COST OF THEFT…….$12,000 + Emotional Stress

10. The hidden costs of auto theft Confidential and Proprietary10 When a thief steals your car, they take more than just your car: What’s In Your Car? -Insurance card -Vehicle registration with home address -Keys to home, second car, storage/office/file cabinets -Briefcase or computer -Purse or wallet -Checkbook -ATM receipts -Check card receipts -Bills to be mailed -Garage door opener to potentially access your home

11. 11 How the LoJack System Works Confidential and Proprietary

12. * Assuming vehicle is located within coverage area 12 Theft is Reported… 1. Police enter VIN into NCIC computer. The computer sends a signal via police radio towers to the hidden LoJack unit in the stolen car.* 2. The signal is picked up by law enforcement vehicles equipped with LoJack Police Tracking Computers (PTCs). 3. When within range of the stolen car, the PTC beeps and displays the location of the car along with a 5- digit code. Entering the code into the computer provides the officer with a description of the car. How the LoJack System Works

13. Confidential and Proprietary13 LoJack’s 2012 Auto Theft Recovery Stats

14. 14 * As per the terms of the Limited Warranty LoJack Stolen Vehicle Recovery System Standard RecoveryBenefits LoJack ® Stolen Vehicle Recovery System : The base unit for LoJack Stolen Vehicle Recovery System. Available for all new, used or certified pre-owned cars. Includes a two-year Limited Warranty. The only stolen vehicle recovery system used by federal, state and local law enforcement agencies. 24-hour theft recovery or your money back* No monthly fees and free installation 90% recovery rate on cars and trucks May offer discount off comprehensive portion of auto insurance Proven Technology can work where GPS can’t Covert installation Confidential and Proprietary $695 MSRP

15. Confidential and Proprietary15 Products and Ancillaries LoJack SVRU UpgradeKey Selling Points Early Warning Upgrade: The Early warning upgrade is an added layer of protection and works with our LoJack Stolen Vehicle Recovery Unit to detect whether your vehicle has been moved without your permission. Added layer of security Contacts users by phone, email or text if their vehicle is moved without the presence of the Early Warning Key Pass Reduces time between theft discovery and vehicle recovery, ultimately minimizing vehicle damage and repair costs. $300 Upgrade to Base LoJack $995 Total MSRP

16. 16 * As per the terms of the PP5000 Products and Ancillaries XRW UpgradeBenefits LoJack XRW: Offers five additional years of limited warranty protection that refunds the cost of the LoJack up to the MSRP if your stolen vehicle is not recovered within 24 hours. Coverage begins at the expiration of the two year limited manufacturer's warranty. LoJack® Extended Limited Warranty extends our 2-year limited warranty by an additional 5-years for a total of 7- years of coverage. Warranty refunds the purchase price of your LoJack system up to MSRP if your stolen vehicle is not recovered within 24 hours. Confidential and Proprietary Additional $100 Upgrade - can be added to Base LoJack or LoJack Early Warning

17. 17 * As per the terms of the PP5000 Products and Ancillaries PP5000 UpgradeBenefits Protection Plus 5000: Within five years, if your customer’s vehicle is stolen and not recovered within thirty days, or if it is recovered but declared a total loss as a result of the theft, PP5000 will pay your customer a Total Loss Benefit of $5,000* (not to exceed cash value of vehicle). LoJack® Protection Plus 5000 helps your customers get into a new vehicle in the event that theirs is stolen and not recovered within 30 days by providing a cash benefit directly to your customer when they need it most. Confidential and Proprietary Additional $200 Upgrade - can be added to Base LoJack or LoJack Early Warning

18. 18 Dealer Wealth Building ES-5000 UpgradeBenefits ES-5000 (Reinsured): Within five years, if your customer’s vehicle is stolen and not recovered within thirty days, ES-5000 will pay your customer a Total Loss Benefit of $5,000 (not to exceed cash value of vehicle). Like the PP5000 but it is reinsured. Dealer Client: ES-5000 helps your customers get into a new vehicle in the event that theirs is stolen and not recovered within 30 days by providing a cash benefit directly to your customer when they need it most. Dealer: Contribution up to $76 in reserve to existing ARC. Additional profit opportunity in the Finance Department Confidential and Proprietary Additional $200 Upgrade - can be added to Base LoJack or LoJack Early Warning

19. Confidential and Proprietary19 Proven LoJack Model LoJack Pay planKey Benefits Selling the LoJack Total Recovery System benefits you and your dealership in many ways including a solid brand recognition, higher revenue per vehicle and increased product penetration. Customer Satisfaction – Provides a quick proven brand to recover their stolen vehicle. No Cannibalizing – Create an income stream for a dealer that doesn’t take away from existing product penetration. Increase Dealer PVR – Most major lenders will advance the full purchase price. Dealer Wealth Building – Add to existing Allied Risk Companies with additional paper products. Keep More Income – No chargebacks to the dealers or the agents.

20. Confidential and Proprietary20 Standard InstallCertified Dealer InstallPre-Install Install Type One-by-one, by LoJack technician One-by-one dealer-based installs Pre-installed on inventory by LoJack technicians For Dealers Who: 1.Prefer that LoJack tech performs install at dealer or offsite at customer’s home or business 2.Have developing F&I skill sets 1.Want more control of CSI 2.Have capacity in Service and control of mark up 3.Have developing F&I skill sets 1.Have strong top-down management 2.Have above average Process skill sets 3.Inventory Protection 4.Targeting High front end grosses Pricing $345$265$99/$159 LoJack’s various installation models help grow dealer PVR by considering their needs and attributes to tailor a program specifically for them. LOJACK BUSINESS MODELS (TODAY)

21. Why Pre-Install LoJack Confidential and Proprietary21

22. LoJack is a Hard Add! Charge-back Once installed, it is matched to the vehicles VIN number and cannot be removed!

23. Confidential and Proprietary23 Why Pre-Install LoJack Front End Gross As dealers struggle to make front end gross against heavy competition in the marketplace. A successful LoJack Pre- Install program can increase PVR between $75 and $150. Then we add an upsell opportunity to F&I that includes Dealer Profit, ARC Contribution, Finance Spiff an Agent Commission.

24. Confidential and Proprietary24 Why Pre-Install LoJack Front End Gross As dealers struggle to make front end gross against heavy competition in the marketplace. A successful LoJack Pre- Install program can increase PVR between $75 and $150. Then we add an upsell opportunity to F&I that includes Dealer Profit, ARC Contribution, Finance Spiff an Agent Commission. Without Cannibalizing your Product Offering

25. Confidential and Proprietary25 Why Pre-Install LoJack Lease Business New car sales are up and so is the lease business. What products do you have that can make the F&I department money and still make the agent commission?

26. Confidential and Proprietary26 Why Pre-Install LoJack Lease Business New car sales are up and so is the lease business. What products do you have that can make the F&I department money and still make the agent commission? Customers understand that lease payments are cheap and manufacturers programs are stronger than ever before. Protect your lease payment with LoJack!! How are you going to replace your lease payment? Have you ever seen rates this low? Sell what is important to the customer

27. Confidential and Proprietary27 Why Pre-Install LoJack Dealerships all over the country are always looking for more profit and each agent wants to increase product penetration. Every agent loves a pre-load up until it goes away. LoJack created a Pre-Install Program (PIP) that has the team to make it a LONG-TERM business solution built right into the sales process. Why does it Work? LoJack PIP Team: Provides Analysis for your Dealership clients.. In Store Support and Train the Sales Floor, Sales Desk and F&I department.. As every dealership is different, so is every sales process. We understand that one process does not fit every store. So we have created proven programs that sell on the front, the back or both…

28. Confidential and Proprietary28 Negative Media Attention 20/20 Dateline Local News Channels Wall Street Journal Why Pre-Install LoJack

29. Confidential and Proprietary29 Big Names Why Pre-Install LoJack

30. Confidential and Proprietary30 GMAC Settlement Paradigm Shift #1 40% 30% 20% Why Pre-Install LoJack

31. Confidential and Proprietary31 GMAC Settlement Paradigm Shift #1 Example: PVR $1000 Reserve/Products split 50/50 Reserve= $500.00 (approx 4% line 5) Products=$500.00 Negative media attention Mandatory rate mark up disclosure Banks moving to flats (1% of line 5) Why Pre-Install LoJack

32. Confidential and Proprietary32 GMAC Settlement Paradigm Shift #1 Do nothing different PVR Drops to $750 Reserve/Products split 33/67 Reserve= $250.00 Products=$500.00 Install and/or fine tune your process Practice full disclosure now Offset potential drop in reserve by increasing finance penetrations Sell more products Why Pre-Install LoJack

33. Confidential and Proprietary33 Why Pre-Install LoJack

34. Confidential and Proprietary34 Why Pre-Install LoJack

35. Confidential and Proprietary35 Why Pre-Install LoJack PROFITS IN THE MIRROR MAY BE LESS THAN THEY APPEAR

36. Selling LoJack Confidential and Proprietary36

37. Confidential and Proprietary37 Discover the customer’s needs Remember, your dealerships that sell the LoJack product present it because it offers real value for their customers. Lets discover why customers need LoJack. Discover why the customer needs a LoJack Stolen Vehicle Recovery System by asking open-ended questions… Where do they live? Where do they park your car? Are they aware of the extremely high auto theft rate in this area? Do they travel often?

38. Confidential and Proprietary38 Additional Open ended questions “How often will your vehicle be parked outside? Any open, unsecured parking lot is the perfect place to steal a car. Car thieves sit and watch to see if that person is likely to be inside for at least 30 minutes, which is more than enough time to steal their car. “Are you familiar with the auto theft problem we have in this area?” This question allows you to educate the customer about the need to protect their vehicle, and make the risk of theft real by using your city or state theft statistics. “In the event your vehicle was stolen do you know what it would take to get a new one?” This question sets up the itemization of the cost of auto theft. It also helps establish the need for the 24-hour theft recovery feature of the LoJack system. “What type of alarm system does your current vehicle have?” While many vehicles today do come from the manufacturer with a theft deterrent system, it doesn’t stop the professional thief. Despite sophisticated anti-theft technology, a vehicle is still stolen somewhere in the U.S. every 44 seconds.

39. Confidential and Proprietary39 Additional Open ended questions “How often will your vehicle be parked outside? Any open, unsecured parking lot is the perfect place to steal a car. Car thieves sit and watch to see if that person is likely to be inside for at least 30 minutes, which is more than enough time to steal their car. “Are you familiar with the auto theft problem we have in this area?” This question allows you to educate the customer about the need to protect their vehicle, and make the risk of theft real by using your city or state theft statistics. “In the event your vehicle was stolen do you know what it would take to get a new one?” This question sets up the itemization of the cost of auto theft. It also helps establish the need for the 24-hour theft recovery feature of the LoJack system. “What type of alarm system does your current vehicle have?” While many vehicles today do come from the manufacturer with a theft deterrent system, it doesn’t stop the professional thief. Despite sophisticated anti-theft technology, a vehicle is still stolen somewhere in the U.S. every 44 seconds.

40. Confidential and Proprietary40 Most objections are not “No’s,” but simply an indication that the customer does not yet perceive their need for the product or they do not feel the value exceeds the cost. Below is a recommended process to help customers overcome their objection Objection Handling: Acknowledge, Confirm, Ask “I understand” or “good point” or “You’re right”. Acknowledge the objection You can repeat it verbatim, or paraphrase. Confirm/clarify what the customer told you “May I ask you a question?” or “May I explain?” or “May I share a thought with you?”. Wait for their response before you continue. Ask permission to continue

41. Confidential and Proprietary41 “I understand. It’s hard to justify the cost if you don’t see the value. Do you mind if I ask you a few questions?” “I understand how you feel. Many customers have also felt that is was expensive but they found it to be more affordable than they originally thought. May I explain? “You’re right!” You live in a nice area. However, based on the information you shared with me earlier, you travel in your car considerably. May I show you what I mean?” “That’s a good point. It’s great to have the flexibility of parking your car in secured parking. May I share some information with you?” “I agree. I’m on a tight budget myself. May I ask you a question?” “That’s great! Obviously you appreciate the value of protecting your belongings and privacy. May I show you something?” Objection handling: alt transition statements

42. Confidential and Proprietary42 Objection Handling: I’m just leasing “I don’t need a LoJack system. I am leasing this vehicle.” Potential “Feel Felt Found” Response: “I understand how you feel, many of my lease customers felt the same way until they found out that they are actually financially responsible for their leased vehicle. Walk through the “Let’s Do the Math” Worksheet to illustrate the potential expenses they could incur if their leased vehicle is stolen and not recovered, including: - loss of down payment - loss of registration fees - Taxes they’ve already paid - loss of personal items in the car - Monthly lease and insurance payments until their case is resolved

43. Confidential and Proprietary43 Objection Handling: I’m just leasing “I don’t need a LoJack system. I am leasing this vehicle.” Potential Response: “I understand; you’re only going to drive it for a couple years. But thieves don’t care if a vehicle is leased, financed or owned. When a leased vehicle is stolen and not recovered, you can lose your up-front costs; acquisition fee, down payment, in addition to your insurance deductible. Plus replacing it can be much more difficult, because lease terms, residuals, and money factors change every month. So replacing this vehicle with the same terms and monthly payment would be almost impossible.”

44. Confidential and Proprietary44 Objection Handling: I have insurance “I don’t need a LoJack system. That’s what I have insurance for.” Potential response: “I understand. You pay a lot of money every year for insurance. So when you need it, you might as well use it, right? Unfortunately, even with insurance, having your vehicle stolen is expensive and a major hassle. And because your vehicle is a popular model, it’s much more likely to be targeted by professionals, since they can easily resell the parts. Then your insurance company has to basically rebuild your car by replacing all those stolen parts. Vehicles equipped with the LoJack system are typically recovered in just a few hours, with little or no damage. In fact, they even offer 24-hour theft recovery or your money back.”

45. Confidential and Proprietary45 Objection Handling: I don’t want it back “If my vehicle is stolen, I don’t want it back.” For this objection, you’ll need two blank pieces of paper to use as your visual aid. Potential Response: “That’s a good point. Who wants their car back after it’s been torn apart, stripped of valuable parts, and then dumped somewhere. Unfortunately, you don’t have a choice. Unless your vehicle is a total loss, you’re going to have to take it back.” Crumple up one of the sheets of paper, then try and smooth it out. “The average recovery time is three weeks, with over $6,000 of damage. Which is why a lot of insurance companies offer discounts for the LoJack system. Because vehicles equipped with a LoJack system are typically recovered in just a few hours, with little or no damage. In fact, they even offer 24 hour theft recovery that refunds what you paid for LoJack system, up to MSRP, if your car is stolen and not recovered within 24 hours.”

46. Confidential and Proprietary46 Additional Objections “I don’t need a LoJack system. I’ve never had a car stolen.” Potential Response: “I’m glad to hear that, especially since auto theft is such a huge problem in YOUR STATE. Your new car is a very popular model which makes it much more likely to be targeted by professionals, since they can easily resell the parts. The LoJack system helps police quickly recover your vehicle, often with little or no damage. In fact, they even have a 24 hour theft recovery feature or your money back. And since you do keep your vehicles a while, you’d much rather get it back without any damage, right?”

47. Confidential and Proprietary47 “I don’t need a LoJack system. I live in a good neighborhood.” Potential Response: “That’s true, most vehicles are stolen somewhere else, like the mall or a parking garage. They are all perfect places to steal a car. Now you’re looking at a $500 deductible, driving a rental car for 30 days, plus all the hassle of police reports, insurance adjusters, paperwork, inconvenience, and even time off work. It’d be a lot easier if the police just got your car back in a few hours, right?” “That’s what the LoJack system does… 90% of the time. In fact, they even offer 24- hour theft recovery or your money back. Because keeping your car, your family, and your valuables safe is just as important when they’re away from home as it is when they’re at home.” Additional Objections

48. 48 How to Qualify your Dealer

49. Confidential and Proprietary49 Every Dealership is not right for a Pre-Install as much as we would like to believe. Most dealerships fall into the formula for success, so what makes it a right fit? Is the Dealer and/or GM effective to get buy in? Strong Mgmt Team Ability to consistently deliver the same sales pitch Process Driven Reward front/back end producers Pay Plan Consistent reinforcement of process Training How to Qualify – Identify the Opportunity

50. Confidential and Proprietary50 Every Dealership is not right for a Pre-Install as much as we would like to believe. Most dealerships fall into the formula for success, so what makes it a right fit? What make do they sell? Vehicle Type Does the captive lender advance? Captive Advance How many cars do they sell per month? Total Sales Volume Do you have any wealth building products? Dealer ReInsurance How to Qualify – Identify the Opportunity

51. Confidential and Proprietary51 Once you have found the right opportunity dig in a little deeper. Lets look at different aspects of the dealership and find out what makes them run. How many New/Used cars do you sell per month? Unit Breakdown What is your Front/Back End Gross? Sales Process What percentage of your Inventory will be Dealer Trades? Dealer Trade What is the lease penetration? Purchase Type How to Qualify – Questions

52. Confidential and Proprietary52 Once we have the best opportunities, we can get the appointment. giving money away to build market share with a program called Revenue Builder. giving units away to build market share with a Revenue Builder Program. now adding to a lot of dealers existing reinsurance programs. investing their product in dealerships to build more market share LoJack is…. To call it a pre-load would not do it justice. They call it a Revenue Builder Program based on production and penetration. Let me bring two top LoJack guys by to explain the wealth builder program. Is 30 minutes of your time worth more an opportunity to make more money? Pre-Load ? All I know is the program is called Revenue Builder and it increases gross. Statements How to Qualify – Get the Appointment

53. Confidential and Proprietary53 Once we have the best opportunities, we can get the appointment. giving units away to build market share with a program called Revenue Builder. Adding profitability to the dealership that legitimizes some F&I transactions. Minimizing exposure, with no chargebacks. now adding to a lot of dealers existing reinsurance programs. investing their product in dealerships to build more market share LoJack is…. To call it a pre-load would not do it justice. They call it a Revenue Builder Program based on production and penetration. Let me bring two top LoJack guys by to explain the wealth builder program. Is 30 minutes of your time worth more an opportunity to make more money? Pre-Load ? All I know is the program is called Revenue Builder and it increases gross. Statements How to Qualify – Get the Appointment

54. Current Promo and Pricing Model Confidential and Proprietary54

55. Confidential and Proprietary55 Performance Dividend pays back the Dealer Invoice for the initial Lot Load if the dealer reaches 50% sell through of LoJacks in Months 2 & 3 combined. Sell Through is calculated as: Number of LoJacks sold/Number of cars sold with LoJack Systems loaded on them; DMS report required for verification. See Price Change Notice for full terms. 55 | Confidential & Proprietary Month 1 $99/Unit Month 2 Month 3 $159/Unit Ongoing Step 1: Load On-Site LoJack Training Monthly check-ins, reporting to pinpoint opportunities to grow performance 50% pen in months 2 and 3 and LoJack pays back your initial load Training, support, coaching as needed Step 2: Learn Step 3: Sell Step 4: Grow Step 5: Payback Month 4 Month 5 Producer Kick-Start Incentive Program Producer Kick-Start Incentive Program Revenue Driver Promotion Revenue Driver Promotion Current Promo – Revenue Builder 2

56. Confidential and Proprietary56 Pricing Model – LoJack Alone The 5 X 5 Pre-Install Program can enhance dealership profitability with a trusted brand, a consumer accepted product THE POTENTIAL LoJack System cost at “Going” rate of $159. All Pricing are estimates. Results may vary.

57. Confidential and Proprietary57 Pricing Model – LoJack with LoJack Ancillary The 5 X 5 Pre-Install Program can enhance dealership profitability with a trusted brand, a consumer accepted product, and a LoJack Protection Plus 5000 upgrade THE POTENTIAL WITH UPGRADES LoJack System cost at “Going” rate of $159. All Pricing are estimates. Results may vary.

58. 58 Preinstalled: Your Agent Commissions with a Reinsured program is a $40,000 ++ a year proposition* * This is in a dealer selling 150 Vehicles a month Program Overview: LoJack pre-installs LoJack® Stolen Vehicle Recovery Units at preferred pricing on dealer inventory LoJack helps drive sell-through by providing program training, data-driven performance reporting and ongoing support To minimize dealer risk, attainable sell-through targets provide the opportunity for a no-cost initial load

59. 59 Agent Commissions

60. Questions Confidential and Proprietary60