Document:

EXHIBIT 10.19

 Exhibit 10.19

 FIRST AMENDMENT TO LEASE AGREEMENT

        THIS FIRST
AMENDMENT TO LEASE AGREEMENT (this “Amendment”), dated as
of September 18, 2000, to the Lease Agreement, dated as of December 24, 1996
(the “Lease”) by and between NOG (NY) QRS 12-23, INC. (the
“Landlord”) and SENTRY TECHNOLOGY CORPORATION, (as successor to
Knogo North America Inc.) (the “Company” or
“Tenant”). 

        WHEREAS,
the Company has entered into a Security Purchase Agreement (the
“Purchase Agreement”) dated as of August 8, 2000 by and between
the Company and Dutch A&A Holding, B.V. (“Dutch A&A”)
pursuant to which Dutch A&A intends to purchase shares of Tenant’s
common stock and have rights to purchase additional shares of Tenant’s
common stock in the future (the “Transaction”); 

        WHEREAS,the
Company is in violation of certain financial covenants contained in the
Lease;

        WHEREAS,
the Company has requested that the Landlord consent to the Transaction and waive
its rights under the Lease with respect to such financial covenant violations
under certain circumstances; 

        WHEREAS,
the Landlord is willing to consent to the Transaction effective as of the date
the Transaction closes and to waive its rights under the Lease with respect to
such financial covenant violations under certain circumstances so long as the
Transaction closes no later than February 4, 2001 in exchange for the Company
entering into the Warrant Agreement given by the Company to Landlord dated as of
September 18, 2000 and this Amendment. 

        WHEREAS,
in furtherance of the foregoing, the Company and the Landlord wish to amend
certain provisions of the Lease, as set forth below. Capitalized terms used
herein without definition shall have the meaning ascribed thereto in the Lease. 

        
NOW THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the Company and the Landlord agree as follows:

        1.     
Section 1 (a) of Exhibit E of the Lease is hereby amended to add the following
sentence at the end thereof:

	 	
“Notwithstanding
the foregoing, Tenant may at any time take such steps as may be necessary or
appropriate to dissolve Knogo Caribe, Inc., a Subsidiary of Tenant, without
prior notice to or consent of Landlord.”

        2.     
Section 3 of Exhibit E is hereby amended by adding the following sentence at the
end thereof:

	 	
“The
preceding Coverage Ratio requirement shall only apply upon the earlier of (i)
September 18, 2005 or (ii) the effective date of any Change in Ownership
Control. Notwithstanding anything to the contrary herein, in the event that on
or after September 18, 2005 (a) Tenant is or becomes bound by a senior credit
agreement (the “Sr. Credit Agreement”), (b) there has been no Change
in Ownership Control, and (c) such Sr. Credit Agreement contains a coverage
ratio covenant that is less restrictive than the Coverage Ratio requirement
above, then the Coverage Ratio required herein shall be replaced by the coverage
ratio required under the Sr. Credit Agreement for the remainder of the Term
without regard to whether the coverage ratio requirement in the Sr. Credit
Agreement is terminated, modified, amended, supplemented or waived or if the Sr.
Credit Agreement is terminated.”

        
3.      Section 4 of Exhibit E is hereby amended by
adding the following sentence at the end thereof:

	 	
“The preceding Required Net Worth requirement shall only apply upon the
earlier of (i) September 18, 2005 or (ii) the effective date of any Change in
Ownership Control. Notwithstanding anything to the contrary herein, in the event
that on or after September 18, 2005 (a) Tenant is or becomes bound by a Sr.
Credit Agreement, (b) there has been no Change in Ownership Control, and (c)
such Sr. Credit Agreement contains a net worth requirement covenant that is less
restrictive than the Required Net Worth requirement above, then the Required Net
Worth requirement herein shall be replaced by the net worth required under the
Sr. Credit Agreement for the remainder of the Term without regard to whether the
net worth requirement in the Sr. Credit Agreement is terminated, modified,
amended, supplemented or waived or if the Sr. Credit Agreement is terminated."

        
4.     Section 5 of Exhibit E is hereby amended by adding
the following sentence at the end thereof:

	 	
“The
preceding Debt to Equity Ratio requirement shall only apply upon the earlier of
(i) September 18, 2005 or (ii) the effective date of any Change in Ownership
Control. Notwithstanding anything to the contrary herein, in the event that on
or after September 18, 2005 (a) Tenant is or becomes bound by a Sr. Credit
Agreement, (b) there has been no Change in Ownership Control, and (c) such Sr.
Credit Agreement contains a debt to equity ratio requirement covenant that is
less restrictive than the Debt to Equity Ratio requirement above, then the Debt
to Equity Ratio required herein shall be replaced by the required debt to equity
ratio required under the Sr. Credit Agreement for the remainder of the Term
without regard to whether the required debt to equity ratio requirement in the
Sr. Credit Agreement is terminated, modified, amended, supplemented or waived or
if the Sr. Credit Agreement is terminated.”

        
5.      Section 7 of Exhibit E is hereby amended to add
the following definition between the definitions of "Capital Expenditures" and
"Closing Date":

	 	
“Change
in Ownership Control” shall mean a single transaction or series of related
transactions that causes any Person to increase their ownership of the
outstanding common stock of Tenant to more than 50% of the outstanding common
stock of Tenant. Notwithstanding the foregoing, the following shall not be
deemed to be a Change in Ownership Control: (x) Dutch A&A Holding, B.V or
any wholly owned subsidiary of Dutch A&A Holding, B.V. (collectively,
“Dutch A&A”) exercising its rights under the Security
Purchase Agreement by and between Tenant and Dutch A&A dated as of August 8,
2000 (the “Acquisition Agreement”) to obtain in any single transaction
or series of related transactions more than 50% of the outstanding common stock
of Tenant, (y) the sale, transfer, conveyance or other disposition by Dutch
A&A of the common stock of Tenant through a single transaction or a series
of related transactions to any Person that succeeds to a majority of the
identification, access control and anti-theft electronic article surveillance
systems business and assets of Dutch A&A worldwide (any such entity, a
“Surveillance Business Successor”), or (z) any Surveillance
Business Successor exercising its rights as an assignee of Dutch A&A under
the Acquisition Agreement to purchase through any single transaction or series
of related transactions more than 50% of the outstanding common stock of Tenant.

        6.
     Except as amended pursuant to paragraphs 1, 2 , 3,
4, and 5 above, the Lease shall continue in full force and effect in accordance
with the provisions thereof on the date hereof, and this Amendment shall not by
implication or otherwise limit, impair, constitute a waiver of, or otherwise
affect the rights and remedies of the parties under the Lease. 

        7.
     This Amendment shall be effective only in the
specific instances and for the purpose for which it is given and shall be
limited precisely as written and shall not constitute a waiver of any other
provision of the Lease or for any other purpose or for any other period.

        8.
     Anything in this Amendment to the contrary
notwithstanding, this Amendment shall be null, void and of no further force or
effect if the Company shall fail to obtain shareholder approval for the
Transaction and consummate the same on or before February 4, 2001, or such later
date as to which Landlord shall give its written consent in its sole discretion.

        9.
     This Amendment shall be governed by and construed
in accordance with the internal laws of the State of New York, without regard to
conflict of law principles. 

         10.
     This Amendment shall become effective only upon
receipt by the Company and the Landlord of counterparts of this Amendment which,
when taken together, bear the signatures of the Company and the Landlord.

        11.
     This Amendment may be executed in any number of
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one agreement. 

        IN WITNESS
WHEREOF, the Company and the Landlord have executed this Amendment as of the day
and year first above written.

	 	LANDLORD:

NOG (NY) QRS 12-23, INC.,

a New York corporation

By:/s/ Gordon J. Whiting

Name: Gordon J. Whiting

Title: Executive Director

TENANT:

	Attest:

By: /s/ Peter J. Mundy

Name:  Peter J. Mundy

Title: Secretary	
 SENTRY TECHNOLOGY

CORPORATION, a DE corporation

 By:/s/ Anthony H. N. Schnelling 

 Name:  Anthony H. N. Schnelling

 Title:    Interim Chief Executive OfficerEXHIBIT 10.20

 Exhibit 10.20

AGREEMENT, DATED JULY 21, 2000

 Agreement between Sentry Technology Corporation,

a Delaware Corp., ("Company"),

Thomas Nicolette ("Nicolette"),

a New York Resident,

and Nicolette Consulting Group, LTD

a Delaware Corp., ("NCG")

            IT IS
HEREBY AGREED AS FOLLOWS:

          1.     
Nicolette resigns as Senior Executor Officer and employee of the Company
effective June 12, 2000 (the "Separation Date").

          2.     
The Company hereby engages NCG as a consultant, and NCG agrees to provide such
consulting services to the Company, as are reasonably and expressly requested
upon reasonable advance notice by the Company’s President and CEO, but no
more than 10 hours per month. The term of NCG’s engagement shall commence
as of June 13, 2000, and shall continue until February 12, 2002. 

           3.     
The Company will pay NCG for its consulting services a fee of $350,000, to be
paid in twenty (20) monthly payments, in advance, of $17,500 commencing as of
June 13, 2000. The Company will issue NCG an IRS Form 1099 with respect to such
fee.

          4.     
NCG will also be entitled to reimbursement for all reasonable expenses
necessarily incurred by NCG in the performance of its consulting services, upon
representation of an appropriate voucher. 

          5.     
Other than as expressly provided herein, all of Nicolette’s compensation
and benefits will cease as of June 12, 2000. Nicolette and/or his dependents may
continue Nicolette’s group medical benefits at Nicolette’s and/or
their expense as provided by COBRA and Nicolette may convert Nicolette’s
group life insurance to an individual policy in accordance with its terms.
Nicolette will receive benefit continuation information under separate cover.

          6.     
Nicolette will receive his vested account balance as of the Separation Date
under the Company’s 401(k) plan in accordance with applicable law and the
terms of such plan. Nicolette hereby acknowledges that Nicolette is not owed any
accrued and/or unused vacation, whether before or after the Separation Date.

          7.     
The Company assigns to Nicolette all right, title and interest in and to the car
owned by the Company and utilized by Nicolette, at an agreed value of $5000,
together with any insurance policy owned by the Company relating to such car,
without payment to the Company by Nicolette, provided, however, that as of June
12, 2000, Nicolette shall be responsible for all costs associated with the car,
excluding insurance through January 1, 2001. 

           8.     
The Company releases Nicolette from all obligations and/or restrictions under
Nicolette's Employment Agreement (the "Employment Agreement") with the Company
dated February 12, 1997, except for paragraph 11(B), paragraph 12, 13, and 14
thereof.

          9.     
All Stock options issued to Nicolette prior to the date of this Agreement are
deemed fully vested and will be exercisable in accordance with their terms;
provided, however, that no such Stock option will be exercisable later than
February 12, 2002 (the “Option Cutoff Date”). Notwithstanding the
foregoing, the Option Cutoff Date will be extended through January 7, 2003
in the event the Company enters into an agreement on or before February 12,
2002, providing for the acquisition in one or more transactions by a third party
of a majority of the voting securities of the Company. 

          10.     
In consideration for the Company’s release and the other payments and
benefits under this Agreement, Nicolette, for himself and his heirs and assigns,
hereby voluntarily and knowingly releases and forever discharges the Company,
its predecessors, successors and assigns and their respective present and former
officers, directors, agents and/or employees, in both their individual and
representative capacities, (collectively, the “Released Parties”),
from all actions, claims, demands, causes of action, obligations, damages,
liabilities, expenses and controversies of any nature and description
whatsoever, whether or not now known, suspected or claimed, which Nicolette had,
have, or may have, against the Released Parties including, without limitation,
all actions, claims, demands, causes of action, obligations, damages
liabilities, expenses and controversies of any kind which anise out of, relate
to or are based on (1) Nicolette’s employment with the Company or the
separation therefrom, (ii) statements, acts or omissions by the Company,
Released Parties or their respective representatives, (iii) express or implied
agreements between Nicolette, on the one hand, and the Company and/or Released
Parties, on the other hand, (iv) any federal, state or local fair employment
practices or civil rights law including, but not limited to, Title VII of the
Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act,
the Family and Medical Leave Act, the Americans with Disabilities Act and the
Employee Retirement Income Security Act of 1974, which prohibit discrimination
on such basis as race, color, religion, creed, national origin, ancestry, family
and/or medical leave, citizenship status, sex, sexual orientation or preference,
marital status, age or disability, (v) tort, common law, public policy or breach
of contract claims, including, without limitation, claims for emotional
distress, libel, slander, defamation, wrongful discharge, or any other claim
concerning the Company’s night to terminate Nicolette’s employment,
and (vi) any claim for wages, commission, bonuses, accrued vacation pay,
employee benefits, stock, stock options, expenses, allowances and any other
payment or compensation of any kind whatsoever. This release shall not include
any claim or cause of action for contribution and/or indemnification arising out
of a third-party litigation and any claim arising under this Agreement.

          11.     
Unless Nicolette revokes this Agreement under paragraph 16 hereof, the Company
voluntarily and knowingly releases and forever discharges Nicolette from all
actions, claims, demands, causes of action, obligations, damages, liabilities,
expenses and controversies of any nature and description whatsoever, whether or
not now known, suspected or claimed, which the Company had, has, or may have,
against him. This release shall not include any claim or cause of action for
contribution and/or indemnification arising out of a third-party litigation and
any claim arising under this Agreement. 

          12.     
Nicolette will pay, be responsible for, hold harmless and indemnify the Company
from all taxes owing on any payments and/or transfers by the Company to him
under this Agreement, including the Company’s transfer to Nicolette of the
title to the company car utilized by Nicolette. 

           13.      
The Company acknowledges that Nicolette has returned to it all Company property
in his possession.

          14.     
This Agreement is not an admission of any liability or wrongdoing by Nicole
Company or the Released Parties.

          15.     
Neither Nicolette nor the Company or Released Parties shall disparage each
other. Nicolette will not disclose publicly the terms of this Agreement, except
(i) to comply or to obtain enforcement of this Agreement, (ii) to his respective
legal, financial or tax advisors (all of whom must first agree to be bound by
this paragraph) and to the Internal Revenue Service or any state or local tax
authority, and (iii) to any entity, if required by legal process, upon not less
than 48 hours prior written notice to the Company. Nicolette agrees to cooperate
with the Company and its attorneys if the Company elects to contest such legal
process. 

           16.     
Nicolette acknowledges that:

	 	-	he has read this Agreement in its entirety and
understand all of its terms, including that it constitutes a general release of
all claims against the Company and Released Parties;

	 	-	lie has been advised, in writing, to review this
Agreement with an attorney before signing it;

	 	-	he has had a sufficient period of time of not less than
21 days within which to review this Agreement, including, without limitation,
with his attorney, and that he has, in fact, done so with the firm of Warner
& Scheuerman;

	 	-	he knowingly and voluntarily agrees to all the terms
and conditions contained in this Agreement; and

	 	-	he has a seven-day period to revoke this Agreement
after signing it and that such revocation must be in writing, hand delivered,
and actually received by the Company within such period.

	 	-	he acknowledges that this Agreement is supported by
sufficient consideration to support the general release in paragraph 10.

          17.     
The Company agrees to pay Nicolette's attorneys' fees in the sum of $750
connection with this Agreement.

          18.     
By entering into this Agreement, Nicolette acknowledges that: (a) he waives any
claim to reinstatement and/or future employment with the Company; and (b) he is
not and shall not be entitled to any payments, benefits or other obligations
from the Company and/or Released Parties, other than as set forth herein.

          19.     
This Agreement will be governed and construed in accordance with the laws of the
State of New York and all disputes arising out of or relating to this Agreement
or its breach will be resolved in the courts located within the State of New
York, New York County, and Nicolette, NCG, and the Company hereby submit
exclusively to the Jurisdiction and venue of those New York courts. 

          20.     
Any notices provided to any party hereunder should be sent by overnight mail
o delivery addressed as follows:

	 	a.)	to the Company: 

Anthony H.N. Schnelling

Interim Chief Executive Officer

Sentry Technology Corporation

350 Wireless Boulevard

Hauppauge, New York 11788

	 	b.)	to Nicolette and/or NCG: 

	 	i)	7 Springhollow Road

Centerport, New York 11721 and

	 	ii)	Jonathan D. Warner, Esq., Warner & Scheuerman, 350 Fifth Avenue,

Suite, 1229, New York, New York 10118.

Any notice of change of address shall only be effective when received.

          21.     
This Agreement sets forth the entire agreement between the Company and Nicolette
and/or NCG concerning its subject matter and supersedes any prior agreement or
understanding including the Employment Agreement (except as contemplated by
paragraph 8 hereof). This Agreement may only be modified by a writing signed by
both parties. The provisions of this Agreement are severable and if any part is
found to be unenforceable, the other parts shall remain valid and enforceable.
Except as otherwise provided herein, no waiver by any party hereto of a breach
by any other party of any condition or provision of the Agreement to be
performed by any other party shall be deemed a waiver of a similar or dissimilar
condition or provision at the same time or at any prior or subsequent time.

          22.     
This Agreement shall inure to the benefit of and be binding upon a) the Company,
its successors and assigns, including, without limitation, any corporation which
may acquire all, or substantially all, of the Company’s assets and business
or into which the Company may be consolidated or merged; b) Nicolette, his
heirs, executors, administrators and legal representatives; and c) NCG, its
successors and/or assigns; provided that neither Nicolette nor NCG shall assign
its obligations hereunder. 

          23.     
An executed lax copy of this Agreement will be deemed an original for all
purposes.

ACCEPTED AND AGREED:

	SENTRY TECHNOLOGY CORPORATION

                         

                         

                         By:   /s/ William Perlmuth   
                
              
        

         William Perlmuth, Chairman of the Board
                         	NICOLETTE CONSULTING GROUP, LTD.

                         By:   /s/ Thomas A. Nicolette
                
              
        

         Thomas A. Nicolette, President

           
        
/s/Thomas A. Nicolette
                
        

Thomas A. Nicolette

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