Document:

EXHIBIT 10.23

EXHIBIT 10.23

FOURTH AMENDMENT TO THE LOAN AND SECURITY
AGREEMENT

          Fourth Amendment
dated as of May 11, 2000 (this “Amendment”) to the Loan and Security
Agreement dated as of December 31, 1997 (as amended and modified, the
“Loan Agreement”), among GENERAL ELECTRIC CAPITAL
CORPORATION, a York corporation (“Lender”) and KNOGO
NORTH AMERICA INC., a Delaware corporation (“Borrower”) and
the other Credit Parties executing this Amendment. 

WITNESSETH:

          WHEREAS,
Borrower has requested that Lender amend the Loan Agreement to provide
additional financial accommodations to Borrower;

          WHEREAS, Lender is willing to so amend the Loan Agreement on the terms and
conditions set forth herein;

          NOW,
THEREFORE, in consideration of the premises, the covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties do hereby agree that all
capitalized terms used herein shall have the meanings ascribed thereto in the
Loan Agreement and do hereby further agree as follows: 

STATEMENT OF TERMS

          1.  Amendment to Loan Agreement. Subject to the satisfaction of conditions
precedent set forth in Section 3 of this Amendment, each Credit Party and Lender
agree to amend the Loan Agreement as follows:

	
	(a)
	Section 1.5 is amended as follows

	 
	       (i)  Section 1.5(a) is amended by inserting the following sentence at the end
thereof: 

	 
	        “Notwithstanding
the foregoing, Borrower shall pay interest to Lender on the aggregate
outstanding Revolving Credit Advances consisting of Special Advances at a
floating rate equal to the Index Rate plus five percent (5.00%) per annum (the
“Special Advance Rate”)."

	 
	       (ii)  Section 1.5(d) is amended in its entirety to provide as follows:

	 
	        “(d)  
Effective upon the occurrence of any Event of Default and for so long as any
Event of Default shall be continuing, upon notice to the Borrower (except that
no notice shall be required upon the occurrence of any Event of Default
specified in Sections 7.1(e), (f) or (g)) the Revolving Credit Rate, the Special
Advance Rate and the Letter of Credit Fee shall automatically be increased by
two percentage points (2%) per annum (such increased rate, the “Default
Rate”), and all outstanding Obligations, including unpaid interest and
Letter of Credit Fees, shall continue to accrue interest from the date of such
Event of Default at the Default Rate applicable to such Obligations.” 

	
	(b)
	Schedule A is amended as follows:

	 
	       (i)   the
following defined terms are inserted in the appropriate alphabetical order:

	 
	          Eligible Unbilled Accounts” shall mean those
Accounts which arise from the sale of goods but which require the installation
of such goods by Borrower or Video, which would otherwise constitute Eligible
Accounts except for the fact that the goods which have been delivered have not
yet been installed.

	 
	          Special Advances” shall mean those Revolving Credit
Advances in excess of the Borrowing Base with the Borrowing Base being
determined as if the Special Advance Amount was $0.

	 
	          "Special Advance Rate" shall have the meaning assigned
to it in Section 1.5(a).

	 
	          Fourth Amendment” shall mean the Fourth
Amendment to Loan and Security Agreement dated May __, 2000 among Lender,
Borrower and the other Credit Parties.

	 
	          Fourth Amendment Effective Date” shall have the
meaning assigned to the term “Effective Date” in Fourth Amendment.

	 
	          (ii)  the following defined term is amended in its
entirety to provide as follows:

	 
	          Special Advance Amount” shall mean (a) for the period
commencing on the Fourth Amendment Effective Date and ending on September 1,
2000, the lesser of (i) $500,000 or (ii) 50% of the value (as determined by
Lender) of Eligible Unbilled Accounts of Borrower and Video and (b) at all other
times, $0.”

	 
	(c)
	The Transaction Summary is amended to reflect the changes made
in this Amendment.

          2.  Representations and Warranties.  To
induce Lender to enter into this Amendment, each Credit Party hereto hereby
warrants, represents and covenants to Lender that: (a) each representation and
warranty of the Credit Parties set forth in the Loan Agreement is hereby
restated and reaffirmed as true and correct on and as of the date hereof after
giving affect to this Amendment as if such representation or warranty were made
on and as of the date hereof (except to the extent that any such representation
or warranty expressly relates to a prior specific date or period in which case
it is true and correct as of such prior date or period), and no Default or Event
of Default has occurred and is continuing as of this date under the Loan
Agreement after giving effect to this Amendment; (b) each Credit Party hereto
has the power and is duly authorized to enter into, deliver and perform this
Amendment, and this Amendment is the legal, valid and binding obligation of such
Credit Party enforceable against it in accordance with its terms; and (c) no
later than thirty (30) days from the date of this Amendment, Borrower shall
deliver to Lender warrants to purchase 100,000 shares of the common stock of
Sentry at a closing price for the common stock on May __, 2000, on terms and
conditions and pursuant to agreements satisfactory to Lender in all respects and
the failure to do so shall constitute an Event of Default under the Loan
Agreement. 

          3.  Conditions Precedent to Effectiveness of this Amendment. The effectiveness of
this Amendment is subject to the fulfillment of the following conditions
precedent:

	 
	(a)
	Lender shall have received in form and substance satisfactory
to it, one or more counterparts of this Amendment duly executed and delivered by
the Credit Parties hereto;

	 
	(b)
	Any and all guarantors of the Obligations shall have consented to the execution,
delivery and performance of this Amendment and all of the transactions
contemplated hereby by signing one or more counterparts of this Amendment in the
appropriate space indicated below and returning same to Lender; and

	 
	(c)
	Borrower shall have paid to Lender all of Lenders legal fees, costs and expenses
incurred in connection with the preparation, negotiation, execution and delivery
of this Amendment.

          4.  Continuing Effect of Loan
Agreement.  Except as expressly amended and modified hereby,
the provisions of the Loan Agreement, and the Liens granted thereunder, are and
shall remain in full force and effect and the waiver set forth herein shall be
limited precisely as drafted and shall not constitute a waiver of any other
provisions of the Loan Agreement. 

          5.  Counterparts.  This
Amendment may be executed in multiple counterparts each of which shall be deemed
to be an original and all of which when taken together shall constitute one and
the same instrument.

          6.  Governing
Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES
THEREOF REGARDING CONFLICTS OF LAWS. 

        IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed
and delivered as of the day and year specified at the beginning hereof. 

	 
	KNOGO NORTH AMERICA INC.,
as Borrower

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      V.P. - CFO

SENTRY TECHNOLOGY CORPORATION,
as Credit Party

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      V.P. - CFO

VIDEO SENTRY CORPORATION,
as Credit Party

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      V.P. - CFO

KNOGO CARIBE, INC.,
as Credit Party

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      Treasurer

GENERAL ELECTRIC CAPITAL CORPORATION,
as Lender

By:         /s/ Philip F. Carfora

Name:    Philip F. Carfora

Title:      Duly Authorized Signatory

CONSENT OF GUARANTORS

          Each of the
undersigned guarantors does hereby consent to the execution, delivery and
performance of the within and foregoing Amendment and confirms the continuing
effect of such guarantor’s guarantee of the Obligations after giving effect
to the foregoing Amendment. 

          IN WITNESS
WHEREOF, each of the undersigned guarantors has executed this Consent to
Guarantors as of the day and year first above set forth. 

	 
	GUARANTORS:

SENTRY TECHNOLOGY CORPORATION

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      V.P. - CFO

VIDEO SENTRY CORPORATIONB

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      V.P. - CFO

KNOGO CARIBE, INC.

By:         /s/ Peter J. Mundy

Name:    Peter J. Mundy

Title:      TreasurerEXHIBIT 10.24

Exhibit 10.24

 FIFTH AMENDMENT AND CONSENT TO THE LOAN AND SECURITY AGREEMENT

          Fifth Amendment
and Consent dated as of August 24, 2000 (this “Amendment”) to the Loan
and Security Agreement dated as of December 31, 1997 (as amended and modified,
the “Loan Agreement”), among GENERAL ELECTRIC CAPITAL
CORPORATION, a New York corporation (“Lender”) and KNOGO
NORTH AMERICA INC., a Delaware corporation (“Borrower”) and
the other Credit Parties executing this Amendment. 

 WITNESSETH:

          WHEREAS,
Sentry has informed Lender that Sentry and Dutch A&A Holdings B.V., a
Netherlands corporation (“Dutch A&A”) have entered into a
Securities Purchase Agreement dated as of August 8, 2000 (the
“Securities Purchase Agreement”) pursuant to which Dutch A&A
will acquire certain shares of common stock of Sentry on the terms and
conditions set forth in the Securities Purchase Agreement. 

          WHEREAS,
in connection with the transactions contemplated by the Securities Purchase
Agreement it is necessary for Sentry to amend its certificate of incorporation; 

          WHEREAS,
in connection with Dutch A&A’s purchase of an equity interest in
Sentry, Dutch A&A and Sentry are entering into a Distribution Agreement
(the “Distribution Agreement”) pursuant to which the products
and services of each party will be made available to the other for distribution
and sale in accordance with the terms therein; 

          WHEREAS,
Sentry has requested that Lender consent to the amendment of the certificate of
incorporation of Sentry, to the execution of the Distribution Agreement by
Sentry, to the issuance and sale of common stock to Dutch A&A in accordance
with the Securities Purchase Agreement and that the transactions contemplated by
the Securities Purchase Agreement shall not constitute a Change of Control and
to amend certain provisions of the Loan Agreement in connection therewith; 

          WHEREAS,
Lender is willing to so consent and to amend the Loan Agreement on the
terms and conditions set forth herein;

          NOW,
THEREFORE, in consideration of the premises, the covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties do hereby agree that all
capitalized terms used herein shall have the meanings ascribed thereto in the
Loan Agreement and do hereby further agree as follows: 

 STATEMENT OF TERMS

          1.    
Amendment to Loan Agreement. Subject to the satisfaction of the conditions
precedent set forth in Section 4 of this Amendment, each Credit Party and Lender
agree to amend the Loan Agreement as follows:

              
(a)      Section 5(d) is amended in its entirety to provide as follows:

	 	        “(d)
enter into any lending, borrowing or other commercial transaction with any of
its employees, directors, Affiliates or any other Credit Party (including
upstreaming and downstreaming of cash and intercompany advances and payments by
a Credit Party on behalf of another Credit Party which are not otherwise
permitted hereunder) other than (i) loans or advances to employees in the
ordinary course of business in an aggregate outstanding amount not exceeding
$50,000; (ii) the loans, advances and investments permitted pursuant to Section
5(b) and (iii) the transactions contemplated by the Distribution
Agreement;" 

              
(b)      Section 5(f) is amended in its entirety to
provide as follows:

	 	        "(f)
amend its charter or by-laws or other organizational documents except as set
forth in the Amended and Restated Certificate;"

              
(c)      Section 5(i) is amended in its entirety to
provide as follows:

	 	        “(i)
sell, transfer, issue, convey, assign or otherwise dispose of any of its assets
or properties, including its Accounts or any shares of its Stock or engage in
any sale-leaseback, synthetic lease or similar transaction (provided, that the
foregoing shall not prohibit the sale of Inventory or obsolete or unnecessary
Equipment in the ordinary course of its business) except for the issuance and
sale of common stock of Sentry in accordance with the terms of the Securities
Purchase Agreement;" 

               
(d)      Schedule A is amended by inserting therein the
following new definitions in the appropriate

               
          
 alphabetical order:

	 	        
"Amended and Restated Certificate" shall mean the Amended and Restated
Certificate of Incorporation substantially in the form annexed to the Fifth
Amendment as Exhibit A.

	 	        
"Distribution Agreement" shall mean the Distribution Agreement dated as of
August 8, 2000 between Sentry and Dutch A&A.

	 	        
"Dutch A&A" shall mean Dutch A&A Holding, B.V., a Netherlands corporation or
such assignee of its rights as provided for in the Securities Purchase
Agreement.

	 	        
"Fifth Amendment" shall mean the Fifth Amendment and Consent to Loan and
Security Agreement dated as of August 24, 2000 among Lender, Borrower and the
other Credit Parties.

	 	        
"Securities Purchase Agreement" dated as of August 8, 2000 between Sentry
and Dutch A&A.

          2.
     Consent. Subject to the satisfaction
of the conditions precedent set forth in Section 4 of this Amendment, Lender
agrees that the transactions contemplated by the Securities Purchase Agreement
shall not constitute an Event of Default under Section 7.1(k) provided that all
of the proceeds from the sale by Sentry of the common stock pursuant to the
Securities Purchase Agreement are remitted to Lender for application to the
Obligations. 

          3.
     Representations and Warranties.
To induce Lender to enter into this Amendment, each Credit Party hereto hereby
warrants, represents and covenants to Lender that: (a) each representation and
warranty of the Credit Parties set forth in the Loan Agreement is hereby
restated and reaffirmed as true and correct on and as of the date hereof after
giving affect to this Amendment as if such representation or warranty were made
on and as of the date hereof (except to the extent that any such representation
or warranty expressly relates to a prior specific date or period in which case
it is true and correct as of such prior date or period), and no Default or Event
of Default has occurred and is continuing as of this date under the Loan
Agreement after giving effect to this Amendment; and (b) each Credit Party
hereto has the power and is duly authorized to enter into, deliver and perform
this Amendment, and this Amendment is the legal, valid and binding obligation of
such Credit Party enforceable against it in accordance with its terms. 

          4.     
Conditions Precedent to Effectiveness of this Amendment. The
effectiveness of this Amendment is subject to the fulfillment of the following
conditions precedent:

	 	 	(a)	
Lender shall have received in form and substance satisfactory to it, one or more
counterparts of this Amendment duly executed and delivered by the Credit Parties
hereto;

	 	 	(b)	
Any and all guarantors of the Obligations shall have consented to the execution,
delivery and performance of this Amendment and all of the transactions
contemplated hereby by signing one or more counterparts of this Amendment in the
appropriate space indicated below and returning same to Lender;

	 	 	(c)	
Borrower shall have paid to Lender all of Lenders legal fees, costs and expenses
incurred in connection with the preparation, negotiation, execution and delivery
of this Amendment;

	 	 	(d)	
Lender shall have received in form and substance satisfactory to Lender an
executed copy of the Securities Purchase Agreement and the Distribution
Agreement together with all exhibits and disclosure schedules thereto;

	 	 	(e)	
Lender shall have received the Amended and Restated Certificate in form and
substance satisfactory to Lender;

	 	 	(f)	
The transactions contemplated by the Securities Purchase Agreement shall have
been approved or any applicable waiting period shall have terminated in
accordance with Hart Scott-Rodino Antitrust Improvements Act of 1976, as
amended; and

	 	 	(g)	
Lender and Dutch A&A shall have entered into an agreement in form and
substance satisfactory to Lender granting Lender the right to market, distribute
and sell Inventory purchased under the Distribution Agreement in connection with
the exercise of Lender’s rights and remedies under the Loan Agreement.

          5.
     Continuing Effect of Loan
Agreement. Except as expressly amended and modified hereby, the
provisions of the Loan Agreement, and the Liens granted thereunder, are and
shall remain in full force and effect and the waiver set forth herein shall be
limited precisely as drafted and shall not constitute a waiver of any other
provisions of the Loan Agreement. 

          6.     
Counterparts. This Amendment may be executed in multiple
counterparts each of which shall be deemed to be an original and all of which
when taken together shall constitute one and the same instrument.

          7.
      Governing Law. THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT
REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

        IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed
and delivered as of the day and year specified at the beginning hereof. 

	  	KNOGO NORTH AMERICA INC.,

as Borrower

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:   V.P. - CFO

 SENTRY TECHNOLOGY CORPORATION,

as Credit Party

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:   V.P. - CFO

VIDEO SENTRY CORPORATION,

as Credit Party

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:   V.P. - CFO

 KNOGO CARIBE, INC.,

as Credit Party

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:    Treasurer

 GENERAL ELECTRIC CAPITAL CORPORATION,

as Lender

By: /s/ Philip F. Carfora

Name:   Philip F. Carfora

Title:   Duly Authorized Signatory

 CONSENT OF GUARANTORS

          Each of the
undersigned guarantors does hereby consent to the execution, delivery and
performance of the within and foregoing Amendment and confirms the continuing
effect of such guarantor’s guarantee of the Obligations after giving effect
to the foregoing Amendment. 

          IN WITNESS
WHEREOF, each of the undersigned guarantors has executed this Consent to
Guarantors as of the day and year first above set forth. 

	  	

GUARANTORS:

SENTRY TECHNOLOGY CORPORATION

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:   VP - CFO

VIDEO SENTRY CORPORATION

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:   VP - CFO

 KNOGO CARIBE, INC.

By: /s/ Peter J. Mundy

Name:   Peter J. Mundy

Title:  Treasurer

 Exhibit A

Amended and Restated Certificate of Incorporation

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