EXHIBIT 10.3 CalAmp Logo Tracy Trent 3575 Liggett Drive San Diego, CA 92106 Re: Dear Tracy: As we have discussed, as a result of your resignation your employment with the Solutions Division of CalAmp Corp. ("CalAmp" or the "Company") ended effective December 13, 2004 (the "Separation Date"). In return for your resignation and other consideration as described herein, we will provide you with the following severance payments and other benefits pursuant to this Separation Agreement (the "Agreement"): * Severance in the aggregate amount of $255,000, payable over a twelve (12) month period in equal bi-weekly payments coinciding with the regular payroll processing schedule of CalAmp's Solutions Division, less regular tax deductions and withholdings. * Twelve (12) months of paid COBRA premiums. * You may keep the Company-issued laptop computer you have been using, provided CalAmp is able to make all necessary security changes. Both you and the Company agree that neither party will make any statements that in a