Document:

EXHIBIT 10.21

 Exhibit 10.21

	 	THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT
BE TRANSFERRED, SOLD OR OFFERED FOR SALE EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.	 

	 	
VOID AFTER 5:00 P.M., NEW YORK TIME, ON THE EXPIRATION DATE, OR IF
NOT A BUSINESS DAY, AS DEFINED HEREIN, AT 5:00 P.M., NEW YORK TIME, ON
THE NEXT FOLLOWING BUSINESS DAY.
	 

Warrant to Purchase

100,000 Shares of Common Stock

WARRANT TO PURCHASE COMMON STOCK

OF

SENTRY TECHNOLOGY CORP.

           This certifies
that, for value received, General Electric Capital Corporation, a New York
corporation, or registered assigns ("Warrantholder"), is entitled to purchase
from Sentry Technology Corp., a Delaware corporation (the "Company"), subject to
the provisions of this Warrant, at any time before 5:00 p.m., New York time, on
the Expiration Date (as defined in Section 1.1) (or, if such day is not a
Business Day, at or before 5:00 p.m., New York time, on the next following
Business Day), after which time this Warrant shall become void, 100,000 Warrant
Shares at the Warrant Price. The Warrant Price and the number of Warrant Shares
purchasable hereunder are subject to adjustment from time to time as provided
herein.

 ARTICLE I

DEFINED TERMS

           Section 1.1.
Definition of Terms. As used in this Warrant, the following capitalized terms
shall have the following respective meanings:

               (a)     
"Business Day" shall mean a day other than a Saturday, Sunday or other day on
which banks in the State of New York are authorized by law to remain closed.

               (b)     
"Common Stock" shall mean the Common Stock, $.001 par value per share, of the
Company.

                (c)     
"Current Market Price" shall mean, with respect to any day, the last reported
sales price of the Common Stock, regular way, or in case no sale takes place on
such day, the average of the reported closing bid and asked prices of the Common
Stock, regular way, in either case as reported on the principal national
securities exchange on which the Common Stock is listed or admitted to trading
or, if the Common Stock is not listed or admitted to trading on any national
securities exchange, but is traded in the over-the-counter market, the closing
sale price of the Common Stock or in case no sale is publicly reported, the
average of the closing bid and closing asked prices, if available, of the Common
Stock as quoted on the OTC Bulletin Board, or in either case as published or
quoted on the security industry "pink sheets" if the Common Stock is not quoted
on the OTC Bulletin Board on the relevant day.

                (d)     
"Expiration Date" shall mean the later of December 31, 2001 or the scheduled
expiration of the Loan and Security Agreement, between Knogo North America, Inc.
(the "Borrower") and General Electric Capital Corporation ("GECC") dated
December 31, 1997, as amended, as the same may be extended from time to time. If
such day is not a Business Day, the next succeeding Business Day will be deemed
the Expiration Date.

               
(e)      "Fair Market Value" shall mean the fair market
value per share of Common Stock as shall be determined by the Company's Board of
Directors in good faith; provided, however, that where there
exists a public market for the Common Stock at the time of such exercise, the
fair market value per share of Common Stock shall be the average of the Current
Market Prices of the Common Stock for each of the ten (10) consecutive trading
days preceding the date of any exercise by the Warrantholder of all or a portion
of this Warrant.

                (f)     
"Securities Act" shall mean the Securities Act of 1933, as amended.

                (g)     
"Warrant Price" shall mean $0.18 per Warrant Share, as such price may be
adjusted from time to time pursuant to Article III hereof.

          
(h)      "Warrant Shares" shall mean the shares of
Common Stock purchasable upon exercise of the Warrants.

 ARTICLE II

 DURATION AND EXERCISE OF WARRANT

           Section 2.1.  
Exercise of Warrant.

               (a)  
The Warrantholder may exercise this Warrant, in whole or in part, by
presentation and surrender of this Warrant at the address of the Company set
forth in Section 5.6 hereof or at such other address as the Company may
designate by notice in writing to the Warrantholder with the Subscription Form
annexed hereto duly executed, accompanied by payment of the Warrant Price for
each Warrant Share purchased as provided in Section 2.1 (b). Upon receipt
thereof, the Company shall cause to be issued certificates for the Warrant
Shares so purchased in such denominations as are requested for delivery to the
Warrantholder. Such certificates shall be delivered as promptly as practicable
to the Warrantholder. Upon any partial exercise of this Warrant, the Company
shall execute and deliver a new Warrant of like tenor and date for the balance
of the Warrant Shares purchasable hereunder. The Warrantholder shall be deemed
to be the holder of record of shares of Common Stock issuable upon such
exercise, notwithstanding that the stock transfer books of the Company shall
then be closed or that certificates representing such shares of Common Stock
shall not then be actually delivered to the Warrantholder. If at the time this
Warrant is exercised, a registration statement is not in effect to register
under the Securities Act the Warrant Shares issuable upon exercise of this
Warrant, the Company may require the Warrantholder to make such representations,
and may place such legends on certificates representing the Warrant Shares, as
may be reasonably required to permit the Warrant Shares to be issued without
such registration. The Company shall pay any and all stock transfer and similar
taxes which may be payable in respect of the issue of the Warrant or in respect
of the issue of any of the Warrant Shares.

                (b)  
The Warrant Price may be paid: (i) in cash, by certified or bank cashier's check
or by wire transfer to an account in the United States designated by the
Company, (ii) by surrender to the Company of shares of its Common Stock with a
fair value, on the date of exercise that is equal to the aggregate Warrant
Price, in respect of the number of Warrants exercised, (iii) by surrender to the
Company of Warrants (as provided below) or (iv) by a combination of (i), (ii) or
(iii) hereof. The Warrantholder shall have the right to convert Warrants or any
portion thereof (the "Conversion Right") into Warrant Shares as provided in this
paragraph, but only if, at the time of such conversion, the Warrants shall
otherwise be exercisable under the provisions of this Warrant. Upon exercise of
the Conversion Right with respect to a particular number of Warrants (the
"Converted Warrants"), the Company shall deliver to the Warrantholder (without
payment by the Warrantholder of any cash or other consideration) that number of
Warrant Shares equal to the quotient obtained by dividing (a) the difference
between (i) the product of the Fair Market Value per share of Common Stock as of
the date the Conversion Rights is exercised (the "Conversion Date") and the
number of Warrant Shares into which the Converted Warrants could have been
exercised hereunder and (ii) the aggregate Warrant Price that would have been
payable upon such exercise of the Converted Warrants as of the Conversation
Date, by (b) the Fair Market Value per share of Common Stock as of the
Conversion Date.

           Section 2.2.  
Reservation of Shares. The Company hereby agrees that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of shares of Common Stock or other shares of capital stock of the Company
as may be from time to time issuable upon exercise of this Warrant. All such
shares shall be duly authorized, and when issued upon such exercise, shall be
validly issued, fully paid and nonassessable, free and clear of all liens,
security interests, charges and other encumbrances or restrictions on sale and
free and clear of all preemptive and similar rights.

           Section 2.3.
Fractional Shares. The Company shall not be required to issue any
fraction of a share of its capital stock in connection with the exercise of this
Warrant, and in any case where the Warrantholder would, except for the
provisions of this Section 2.3, be entitled under the terms of this Warrant to
receive a fraction of a share upon the exercise of this Warrant, the Company
shall, upon the exercise of this Warrant and receipt of the Warrant Price (as
adjusted to cover the balance of the share), issue the larger number of whole
shares purchasable upon exercise of this Warrant. The Company shall not be
required to make any cash or other adjustment in respect of such fraction of a
share to which the Warrantholder would otherwise be entitled.

            Section 2.4.  
Payment for Warrant Shares. Payment of the aggregate Warrant Price for
Warrant Shares to be purchased upon exercise of all or a portion of this Warrant
shall be made in full by delivery to the Company, at its address set forth in
Section 5.6 hereof or at such other address as the Company may designate by
notice in writing to the Warrantholder, of a certified or bank cashier's check
or by wire transfer to an account in the United States designated by the
Company.

           Section 2.5.  
 Continuing Rights. A holder of shares of Common Stock issued upon the
exercise of this Warrant, in whole or in part (other than a holder who acquires
such shares after the same have been publicly sold pursuant to a Registration
Statement under the Securities Act or sold pursuant to Rule 144 thereunder),
shall continue to be entitled with respect to such shares to all rights to which
it would have been entitled as a Holder under Section 5.7 and Article IV of this
Warrant.

 ARTICLE III

 ADJUSTMENT OF WARRANT PRICE OR WARRANT SHARES

           Section 3.1.   
Adjustment of Warrant Price.

                (a)      
Except as hereinafter provided, in case the Company shall at any time after the
date hereof issue or sell any shares of Common Stock, for a consideration per
share less than the Warrant Price in effect immediately prior to the issuance or
sale of such shares, or without consideration, then, and thereafter successively
upon each issuance or sale, the Warrant Price in effect immediately prior to
each such issuance or sale shall forthwith be reduced to a price determined by
dividing (i) an amount equal to (X) the total number of shares of Common Stock
outstanding immediately prior to such issuance or sale multiplied by the Warrant
Price in effect immediately prior to such issuance or sale, plus (Y) the
consideration, if any, received by the Company upon such issuance or sale, by
(ii) the total number of shares of Common Stock outstanding immediately after
such issuance or sale.

                       
  For the purposes of any computation to be made in accordance with the provisions
of this paragraph (a), the following shall be applicable:

	 	          
     (i)     
In case of the issuance or sale of shares of Common Stock for a consideration
part or all of which shall be cash, the amount of the cash consideration
therefor shall be deemed to be the amount of cash received by the Company for
such shares (or, if such shares of Common Stock are offered by the Company for
subscription, the subscription price, or, if shares of Common Stock shall be
sold to underwriters or dealers for public offering without a subscription
offering, the initial public offering price) before deducting therefrom any
commissions or other expenses paid or incurred by the Company for any
underwriting of, or otherwise in connection with the issuance of such shares;

	 	          
     (ii)     
In case of the issuance or sale of shares of Common Stock for a consideration
part or all of which shall be other than cash (otherwise than as a dividend or
other distribution on any shares of Common Stock of the Company or on
conversion, exercise or exchange of other securities of the Company or upon
acquisition of the assets or securities of another company or upon merger or
consolidation with another entity), the amount of consideration therefor other
than cash shall be the value of such consideration as of the date of the
issuance or sale of the shares of Common Stock, irrespective of accounting
treatment, but as determined by the Board of Directors of the Company in good
faith. The reclassification of securities other than Common Stock into Common
Stock shall be deemed to involve the issuance for a consideration other than
cash of such Common Stock immediately prior to the close of business on the date
fixed for the determination of security holders entitled to receive such Common
Stock;

	 	          
     (iii)     
In case of the issuance of shares of Common Stock upon conversion or exchange of
any obligations or of any securities of the Company into or for shares of Common
Stock, or upon the exercise of rights or options to subscribe for or to purchase
shares of Common Stock (other than upon exercise of this Warrant), the amount of
consideration received by the Company for such shares of Common Stock shall be
deemed to be the sum of (A) the amount of the consideration received by the
Company upon the original issuance of such obligations, shares, rights or
options, as the case may be, plus (B) the consideration, if any, other than such
obligations, shares, rights or options, received by the Company upon such
conversion, exchange, or exercise except in adjustment of interest and
dividends. The amount of the consideration received by the Company upon the
original issuance of the obligations, shares, rights or options so converted,
exchanged or exercised and the amount of the consideration, if any, other than
such obligations, shares, rights or options, received by the Company upon such
conversion, exchange or exercise shall be determined in the same manner provided
in subparagraphs (i) and (ii) above with respect to the consideration received
by the Company in case of the issuance of shares of Common Stock; if such
obligations, shares, rights or options shall have been issued as a dividend upon
any securities of the Company, the amount of the consideration received by the
Company upon the original issuance thereof shall be deemed to be zero. In case
of the issuance of Warrant Shares upon exercise of this Warrant, the Company
shall be deemed to have received the Warrant Price then in effect as the
consideration for each share of Common Stock so issued;

	 	          
     (iv)     
Shares of Common Stock issuable by way of dividend or other distribution on any
securities of the Company shall be deemed to have been issued and to be
outstanding at the close of business on the record date fixed for the
determination of security holders entitled to receive such dividend or other
distribution and shall be deemed to have been issued without consideration.
Shares of Common Stock issued otherwise than as a dividend, shall be deemed to
have been issued and to be outstanding at the close of business on the date of
issue;

	 	          
     (v)      The number of
shares of Common Stock at any time outstanding shall not include any shares then
owned or held by or for the account of the Company;

	 	          
     (vi)      No adjustment
shall be made to the Warrant Price in effect in the case of (A) the
reclassification of the Company's Class A Preferred Stock into shares of Common
Stock or (B) the sale of Common Stock in one or more related transactions to a
prospective investor, the identity of which has been disclosed to you; and

	 	          
     (vii)      No adjustment
shall be made to the Warrant Price in effect upon conversion or exchange of any
obligations or of any securities of the Company that shall be convertible into
or exercisable or exchangeable for shares of Common Stock or upon the exercise
of rights or options to subscribe for or to purchase shares of Common Stock for
which an adjustment in the Warrant Price has previously been made in accordance
with paragraph (b) of this Section 3.1.

               
(b)      In case the Company shall at any time after
the date hereof issue options or rights to subscribe for shares of Common Stock,
or issue any securities convertible into or exchangeable for shares of Common
Stock, otherwise than as contemplated by Section 3.1(a)(vi) or pursuant to
Section 3.3 hereof, for a consideration per share of underlying Common Stock
less than the Warrant Price in effect immediately prior to the issuance of such
options or rights or convertible or exchangeable securities, or without
consideration, the Warrant Price in effect immediately prior to the issuance of
such options or rights or securities shall be reduced to a price determined by
making a computation in accordance with the provisions of paragraph (a) of this
Section 3.1, provided that:

	 	          
     (i)      the aggregate
maximum number of shares of Common Stock deliverable under such options or
rights shall be considered to have been delivered at the time such options or
rights were issued, and for a consideration equal to the minimum purchase price
per share of Common Stock provided for in such options or rights, plus the
consideration (determined in the same manner as consideration received on the
issue or sale of Common Stock), if any, received by the Company for such options
or rights;

	 	          
     (ii)      the aggregate
maximum number of shares of Common Stock deliverable upon conversion of or
exchange for any such securities shall be considered to have been delivered at
the time of issuance of such securities, and for a consideration equal to the
consideration (determined in the same manner as consideration received on the
issue or sale of Common Stock) received by the Company for such securities, plus
the consideration, if any, to be received by the Company upon the exchange or
conversion thereof; and

	 	          
     (iii)      on the
expiration of such options or rights, or an increase in the minimum exercise
price thereof, or a decrease in the maximum number of shares of Common Stock
deliverable upon exercise or conversion of such options, rights or convertible
or exchangeable securities pursuant to the terms thereof (and not as a result of
exercise or conversion), or the termination of such right to convert or
exchange, the Warrant Price in effect shall forthwith be readjusted to such
Warrant Price as would have obtained had the adjustments made upon the issuance
of such options, rights or convertible or exchangeable securities been made upon
the basis of the delivery of only the number of shares of Common Stock (A)
actually deliverable upon the exercise of such options or rights or upon
conversion or exchange of such securities, or (B) deliverable by reason of such
increase in price or decrease in number of shares.

                (c)     
In case the Company shall at any time after the date hereof subdivide or combine
the outstanding shares of Common Stock, the Warrant Price in effect shall
forthwith be proportionately decreased in the case of the subdivision or
proportionately increased in the case of combination to the nearest one cent.
Any such adjustment shall become effective at the close of business on the date
that such subdivision or combination shall become effective.

           Section 3.2.   
 Adjustment of Warrant Shares. In the event of an adjustment of the
Warrant Price, the number of shares of Common Stock (or reclassified or
recapitalized stock) issuable upon exercise of this Warrant after such
adjustment shall be equal to the number determined by multiplying the number of
shares of Common Stock issuable upon exercise of this Warrant immediately prior
to such adjustment by a fraction, of which the numerator is the Warrant Price in
effect immediately prior to such adjustments, and the denominator is the Warrant
Price in effect immediately after such adjustment.

           Section 3.3.    
Dividends and Distributions. In the event that the Company shall at any
time after the date hereof pay any dividend (other than in shares of Common
Stock) on, or make any distribution of its assets upon or with respect to, the
Common Stock, or in the event that the Company shall offer options or rights to
subscribe for shares of Common Stock, or issue any securities convertible into
or exchangeable for shares of Common Stock, to all of its holders of Common
Stock, then on the record date for such payment, distribution or offer or, in
the absence of a record date, on the date of such payment, distribution or
offer, the Warrantholder shall receive what the Warrantholder would have
received had it exercised this Warrant in full immediately prior to the record
date of such payment, distribution or offer or, in the absence of a record date,
immediately prior to the date of such payment, distribution or offer.

          Section 3.4.   
Mergers, Consolidations, Reclassifications.

               (a)     
In the case of any reorganization or reclassification of the outstanding shares
of Common Stock (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or
combination) or in the case of any consolidation of the Company into, or merger
of the Company with another corporation in which it is not the surviving entity
(or it is the surviving entity, but its shares of Common Stock become shares of
another corporation), or in the case of any sale, lease or conveyance of all, or
substantially all, of the property, assets, business and goodwill of the Company
as an entirety, the Warrantholder shall thereafter have the right upon exercise
of this Warrant to receive the kind and amount of shares of stock and other
securities, cash and property receivable upon such reorganization,
reclassification, consolidation, merger or disposition by a holder of the number
of shares of Common Stock which the Warrantholder would have received had it
exercised this Warrant immediately prior to such reorganization,
reclassification, consolidation, merger or disposition, at a price equal to the
aggregate Warrant Price then in effect for exercising this Warrant in full (the
kind, amount and price of such stock and other securities to be subject to
adjustment as herein provided). The foregoing provisions of this Section 3.4
shall similarly apply to successive reorganizations, reclassifications,
consolidations, mergers and dispositions.

                (b)     
The Company shall not effect any such reorganization, consolidation, merger or
sale, unless prior to or simultaneously with the consummation thereof, the
successor corporation resulting from such reorganization, consolidation or
merger or the corporation purchasing such assets or the appropriate corporation
or entity shall assume, by written instrument, the obligation to deliver to each
Warrantholder the shares of stock, cash, other securities or assets to which, in
accordance with the foregoing provisions, each Warrantholder may be entitled to
and all other obligations of the Company under this Warrant.

           Section 3.5.   
 Notice of Adjustment. Whenever the Warrant Price or the number of
Warrant Shares shall be adjusted pursuant to the provisions hereof, the Company
shall prepare and deliver forthwith to the Warrantholder a certificate signed by
the President of the Company and by its Chief Financial Officer, setting forth
the adjusted number of Warrant Shares purchasable upon the exercise of this
Warrant and the Warrant Price calculated to the nearest cent and setting forth
in reasonable detail the method of calculation and the facts requiring such
adjustment and upon which such calculation is based.

           Section 3.6.    
Notice of Certain Corporate Action. In case at any time:

	 	(A)	the Company shall make any distributions to the holders
of Common Stock; or

	 	(B)	
the Company shall authorize the granting to all holders of its Common Stock of
rights to subscribe for or purchase any shares of stock of any class or of any
other rights; or

	 	(C)	there shall be any reclassification of the capital
stock of the Company; or

	 	(D)	there shall be any capital reorganization by the
Company; or

	 	(E)	
there shall be any (i) consolidation or merger involving the Company or (ii)
sale, transfer or other disposition of all or substantially all of the
Company’s property, assets or business (except a merger or other
reorganization in which the Company shall be the surviving corporation and its
shares of capital stock shall continue to be outstanding and unchanged and
except a consolidation, merger, sale, transfer or other disposition involving a
wholly-owned subsidiary); or

	 	(F)	
there shall be a voluntary or involuntary dissolution, liquidation or winding-up
of the Company or any partial liquidation of the Company or distribution to
holders of Common Stock;

               
then, in each of such cases, the Company shall give written notice to the
Warrantholder of the date on which (i) the books of the Company shall close or a
record shall be taken for such dividend, distribution or subscription rights or
(ii) such reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than twenty (20) days
prior to the record date or the date on which the Company’s transfer books
are closed in respect thereto. 

           Section 3.7.     
Form of Warrant after Adjustments. The form of this Warrant need not be
changed because of any adjustments in the Warrant Price or the number or kind of
the Warrant Shares.

           Section 3.8.    
No Adjustment in Certain Circumstances. The Warrant Price shall not be
adjusted upward except in the event of a combination of the outstanding shares
of Common Stock into a smaller number of shares of Common Stock or in the event
of a readjustment of the Warrant Price pursuant to Section 3.1(b)(iii). No
adjustment of the Warrant Price pursuant to Section 3.1(b)(iii) shall have the
effect of increasing the Warrant Price to an amount that exceeds the Warrant
Price on the original adjustment date.

           Section 3.9.    
No Impairment. If any event occurs as to which the provisions of this
Warrant are strictly applicable and the application thereof would not fairly
protect the rights of the Warrantholders in accordance with the essential intent
and principles of such provisions, then the Company shall make such adjustments
in the application of such provisions, in accordance with such essential intent
and principles, as the Board of Directors, in good faith, determines to be
reasonably necessary to protect such rights as aforesaid. In case at any time or
from time to time the Company shall take any action in respect of its Common
Stock, other than any action described in Article III, then, unless such action
will not have a materially adverse effect upon the rights of the Warrantholders,
the number of shares of Common Stock or other stock for which this Warrant is
exercisable and/or the purchase price thereof shall be adjusted in such manner
as the Board of Directors, in good faith, determines to be equitable in the
circumstances.

 ARTICLE IV

 PIGGYBACK REGISTRATION RIGHTS

           Section 4.1.    
Notices. The Company covenants and agrees with the Warrantholder that if,
at any time within the period ending on the second anniversary of the Expiration
Date, the Company proposes to file a Registration Statement with respect to any
class of security (other than in connection with an offering to the Company's
employees) under the Securities Act in a primary registration on behalf of the
Company and/or in a secondary registration on behalf of other holders of the
Company securities and the registration form to be used may be used for
registration of the Warrant Shares, the Company will give prompt written notice
to the Warrantholder at the addresses appearing on the records of the Company of
its intention to file a Registration Statement and will offer to include in such
registration statement to the maximum extent possible, subject to sub-paragraphs
(i) and (ii) of this Section 4.1, such number of Warrant Shares with respect to
which the Company has received a written request for inclusion therein within
ten (10) days after the giving of notice by the Company. All registrations
requested pursuant to this Article IV are referred to herein as "Piggyback
Registrations." This Section is not applicable to a Registration Statement filed
by the Company with the Commission on Forms S-4 or S-8 or any successor forms.

           Section 4.2.    
Priority on Primary Registrations. If a Piggyback Registration includes
an underwritten primary registration on behalf of the Company and the
underwriter(s) for the offering being registered by the Company shall determine
in good faith that in its/their opinion the number of Warrant Shares requested
to be included in such registration exceeds the number that can be sold in such
offering without materially adversely affecting the distribution of such
securities by the Company, the Company will include in such registration (A)
first, the securities that the Company proposes to sell and (B) second, the
Warrant Shares requested to be included in such registration, apportioned pro
rata among the Warrantholders and (C) third, securities of any other Company
securityholders requesting registration.

           Section 4.3.    
Priority on Secondary Registrations. If a Piggyback Registration consists
only of an underwritten secondary registration on behalf of holders of
securities of the Company, and the underwriter(s) for the offering being
registered by the Company advise the Company in writing that in its/their
opinion the number of Warrant Shares requested to be included in such
registration exceeds the number which can be sold in such offering without
materially adversely affecting the distribution of such securities by the
Company, the Company will include in such registration (A) first, the Warrant
Shares requested to be included therein by the Warrantholders requesting such
registration apportioned pro rata, among the Warrantholders and (B) second,
securities of any other Company securityholders requesting registration.

           Section 4.4.   
Delay. Notwithstanding the foregoing, if any such underwriter(s) shall
determine in good faith that the distribution of the Warrant Shares requested to
be included in the registration concurrently with the securities being
registered by the Company would materially adversely affect the distribution of
such securities by the Company, then the Warrantholders shall delay their
offering and sale for such period ending on the earliest of (1) 90 days
following the effective date of the Company's registration statement, (2) the
day upon which the underwriting syndicate, if any, for such offering shall have
been disbanded or, (3) such date as the Company, managing underwriter and
Warrantholder shall otherwise agree. In the event of such delay, the Company
shall file such supplements and post-effective amendments, and take any such
other steps as may be necessary to permit the Warrantholder to make its proposed
offering and sale for a period of 120 days immediately following the end of such
period of delay.

           Section 4.5.    
Withdrawal. If any party disapproves of the terms of any such
underwriting, it may elect to withdraw therefrom by written notice to the
Company.

           Section 4.6.    
Availability of Rule 144. Notwithstanding the foregoing, the Company
shall not be required to file a Registration Statement to include Shares
pursuant to this Article IV if an opinion of counsel, reasonably satisfactory to
the Company and the Warrantholder, that the Warrant Shares proposed to be
disposed of may be transferred pursuant to the provisions of Rule 144 under the
Act, shall have been delivered to the Company.

           Section 4.7.    
Action to be Taken by the Company. In connection with the registration of
Warrant Shares in accordance with this Article IV, the Company agrees to:

                (a)      
Bear the expenses of any registration or qualification under Section 4.1,
including, but not limited to, legal, accounting and printing fees; provided,
however, that in no event shall the Company be obligated to pay (A) any fees and
disbursements of special counsel for the Warrantholder, or (B) any underwriters'
discount or commission in respect of Warrant Shares; and

                (b)      
Use its best efforts to register or qualify the Warrant Shares for offer or sale
under state securities or Blue Sky laws of such jurisdictions as the
Warrantholder shall reasonably request and to do any and all other acts and
things which may be necessary or advisable to enable the Warrantholder to
consummate the proposed sale, transfer or other disposition of such securities
in any jurisdiction.

           Section 4.8    
Indemnification and Contribution.

                (a)      
In the event of any registration of any of the Warrant Shares under the
Securities Act pursuant to this Section 4, the Company shall indemnify and hold
harmless the holder of such Warrant Shares, such holder's directors and
officers, and each other person (including each underwriter) who participated in
the offering of such Warrant Shares and each other person, if any, who controls
such holder or such participating person within the meaning of the Securities
Act, against any losses, claims, damages or liabilities, joint or several, to
which such holder or any such director or officer or participating person or
controlling person may become subject under the Securities Act or any other
statute or at common law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon (i) any alleged
untrue statement of any material fact contained, on the effective date thereof,
in any Registration Statement under which such securities were registered under
the Securities Act, any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereto, or (ii) any alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and shall reimburse such holder or such
director, officer or participating person or controlling person for any legal or
any other expenses reasonably incurred by such holder or such director, officer
or participating person or controlling person in connection with investigating
or defending any such loss, claim, damage, liability or action; provided,
however, that Company shall not be liable in any such case to the extent that
any such loss, claim, damage or liability arises out of or is based upon any
alleged untrue statement or alleged omission made in such Registration
Statement, preliminary prospectus, prospectus or amendment or supplement in
reliance upon and in conformity with written information furnished to Company by
such holder specifically for use therein. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such
holder or such director, officer or participating person or controlling person,
and shall survive the transfer of such securities by such holder.

                (b)      
Each holder of any Warrant Shares, by acceptance thereof, agrees to indemnify
and hold harmless Company, its directors and officers and each other person, if
any, who controls Company within the meaning of the Securities Act against any
losses, claims, damages or liabilities, joint or several, to which Company or
any such director or officer or any such person may become subject under the
Securities Act or any other statute or at common law, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon information in writing provided to Company by such holder of such
Warrant Shares specifically for use in the following documents and contained, on
the effective date thereof, in any Registration Statement under which securities
were registered under the Securities Act at the request of such holder, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereto.

                (c)      
If the indemnification provided for in this Section 4.8 from the indemnifying
party is unavailable to an indemnified party hereunder in respect of any losses,
claims, damages, liabilities or expenses referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified parties in connection with the actions which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified parties shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied by, such indemnifying party or
indemnified parties, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid
or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include any legal or other
fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 4.8 (c) were determined
by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraph. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

 ARTICLE V

 MISCELLANEOUS

           Section 5.1.    
Successors and Assigns. The terms of this Warrant shall be binding upon,
inure to the benefit of and be enforceable by and against any successors or
assigns of the Company and of the Warrantholder; provided,
however, that the Company may not assign its rights or obligations
hereunder.

           Section 5.2.    
Rights as Stockholder. Except as provided herein, the Warrantholder, as
such, shall not be entitled to vote or be deemed to be a stockholder of the
Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the Warrantholder, as such, any rights of a stockholder
of the Company or any right to vote, give or withhold consent to any corporate
action or receive notice of meetings.

           Section 5.3.    
Acceptance by Warrantholder. Receipt of this Warrant by the Warrantholder
shall constitute acceptance of an agreement to the foregoing terms and
conditions.

           Section 5.4.    
Governing Law. This Warrant and the rights of the parties hereunder shall
be governed in all respects by the laws of the State of New York, without giving
effect to the provisions thereof relating to conflicts of law.

           Section 5.5.    
Severability. In case any provision of this Warrant shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

           Section 5.6.   
Notices. Any notices or certificates by the Company to the Warrantholder and by
the Warrantholder to the Company shall be deemed delivered if in writing and
delivered in person or by registered mail (return receipt requested) to the
Warrantholder, at its address in the registry of Warrantholders maintained by
the Company, and if to the Company, at 350 Wireless Boulevard, Hauppauge, New
York 11778, Attention: Peter J. Mundy. The Company may change its address by
written notice to the Warrantholder.

           Section 5.7.    
Information. (a) The Company will file with the Commission such
information as the Commission may require under Section13 or 15(d) of the
Exchange Act, as applicable, and shall use its best efforts to take all action
as may be required as a condition to the availability of Rule 144 or Rule 144A
under the Act (or any successor or similar exemptive rules hereafter in effect)
and (b) the Company shall (1) furnish to any holder of Warrant Shares upon
request a written statement executed by the Company as to the steps it has taken
to comply with the current public information requirement of Rule 144 or Rule
144A or such successor rules and (2) make available to holders of Warrant Shares
such reports, documents and information as such holders reasonably request to
enable such holders to make sales of Warrant Shares pursuant to such rules. If
the Company ceases to be subject to Section 13 or 15(d) of the Exchange Act, the
Company shall make available to the holder of Warrant Shares in connection with
any sale thereof, the information required by Rule 144(a)(d)(4) under the Act in
order to permit resales of Warrant Shares pursuant to Rule 144A.

           IN WITNESS
WHEREOF, this Warrant has been duly executed by the Company under its corporate
seal as of the 11th day of May, 2000.

	 	SENTRY TECHNOLOGY

CORPORATION

By:             
              
            

     Name:

      Title:

ATTEST:

           
           

Secretary

 SUBSCRIPTION FORM

(To be Executed by the Registered Holder

upon Exercise of the Warrant)

TO: SENTRY TECHNOLOGY CORPORATION

           The undersigned
hereby elects to exercise the right to purchase _________ shares of Common Stock
represented by the attached Warrant, as provided therein, and (a) tenders
herewith payment of the purchase price in full in the amount of $___________
and/or (b) surrenders shares of Common Stock having a Current Market Price of $
______________ and/or (c) surrenders _______ Converted Warrants.

           Please issue a
certificate or certificates for such Common Stock in the name of:

	 	 Name:            
              
               
               

           (Please print name and address)

Signature:            
              
                     

And if said number of shares shall not be all the shares purchasable under
the attached Warrant, a new Warrant is to be issued in the name of said
undersigned for the balance remaining of the shares purchasable thereunder.EXHIBIT 10.22

 EXHIBIT 10.22

THIS WARRANT AND ANY SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND NEITHER THIS WARRANT NOR ANY SUCH SHARES MAY BE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT.

WARRANT

To Purchase Common Stock of

SENTRY TECHNOLOGY CORPORATION

THIS IS TO CERTIFY that NOG (NY) QRS 12-23, Inc
(“QRS”) or registered assigns, is entitled upon the due exercise
hereof at any time during the Exercise Period (as hereinafter defined) to
purchase 150,000 shares of Common Stock (subject to adjustment as provided
herein) of Sentry Technology Corporation, a Delaware corporation, at the Exercise
Price (as hereinafter defined) (such Exercise Price and the number of shares of
Common Stock purchasable hereunder being subject to adjustment as provided
herein), and to exercise the other rights, powers and privileges hereinafter
provided, all on the terms and subject to the conditions hereinafter set forth.

ARTICLE I

DEFINITIONS

The terms defined in this ARTICLE I, whenever used in this Warrant, shall
have the respective meanings hereinafter specified.

          "Affiliate" of any Person means a Person which
directly or indirectly through one or more intermediaries controls, or is
controlled by, or is under common control with, the Company. The term
“control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise. 

          "Assignment" means the form of Assignment appearing at
the end of this Warrant. 

          "Cashless Exercise Ratio" means a fraction, the
numerator of which is the difference between the Current Market Price per share
of Common Stock on the date of the exercise of this Warrant and the Exercise
Price and the denominator of which is the Current Market Price per share of
Common Stock on the date of the exercise of this Warrant. 

          "Closing Date" means September 13, 2000.

          "Commission" means the Securities and Exchange Commission
or any other Federal agency from time to time administering the Securities Act.

          "Common Stock" means any class of capital stock of the
Company now or hereafter authorized having the right to share in distributions
either of earnings or assets of the Company without limit as to amount or
percentage.

          "Company" means Sentry Technology Corporation, a Delaware corporation,
and any successor corporation.

          "Convertible Securities" means evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for, with or without payment of additional consideration,
additional shares of Common Stock, either immediately or upon the arrival of a
specified date or the happening of a specified event. 

          "Current Market Price" shall mean, with respect
to any day, the last reported sales price of the Common Stock, regular way, or
in case no sale takes place on such day, the average of the reported closing bid
and asked prices of the Common Stock, regular way, in either case as reported on
the principal national securities exchange on which the Common Stock is listed
or admitted to trading or, if the Common Stock is not listed or admitted to
trading on any national securities exchange, but is traded in the
over-the-counter market, the closing sale price of the Common Stock or in case
no sale is publicly reported, the average of the closing bid and closing asked
prices, if available, of the Common Stock as quoted on the OTC Bulletin Board,
or in either case as published or quoted on the security industry “pink
sheets” if the Common Stock is not quoted on the OTC Bulletin Board on the
relevant day. 

          "Default Rate" shall have the meaning set forth in the Lease.

          "Dutch A&A Transaction" means the agreement between Dutch
A&A Holding, B.V. and the Company as set forth in the Securities Purchase
Agreement dated August 8, 2000 between the Company and Dutch A&A Holding, B.V,
as amended, a copy of which has been furnished to the Initial Holder.

          "Event of Default" means (a) the breach of any warranty,
or the inaccuracy of any representation, made by the Company herein, (b) the
failure by the Company to comply with any covenant contained herein or (c)
an Event of Default (as such term is defined in the Lease).

          "Exercise Period" means the period commencing on the Initial
Closing Date and terminating upon the earlier of (i) six months following the
seventh anniversary of the Initial Closing Date; and (ii) the termination of the
Lease.

          "Exercise Price" means the Current Market Price per share
of Common Stock on the Closing Date which was $.125. 

          “Initial Closing Date” means the Initial
Closing Date as defined in the Securities Purchase Agreement dated August 8,
2000 between the Company and Dutch A&A Holding, B.V. 

          "Initial Holder" means NOG (NY) QRS 12-23, Inc.

"Issuable Warrant Shares" means the number of shares of
Common Stock issuable from time to time upon exercise of this Warrant.

          "Issued Warrant Shares" means any shares of Common Stock
issued pursuant to this Warrant. 

          “Lease” means the Agreement of Lease dated as
of December 24, 1998, between the Initial Holder and the Company as the same may
be amended from time to time. 

          "Notice of Exercise" means the form of Notice of Exercise
appearing at the end of this Warrant. 

          "Opinion of Counsel" means the opinion of counsel
experienced in Securities Act or bank regulatory matters, as the case may be,
chosen by the holder of this Warrant or the holder of Issued Warrant Shares,
which counsel may be counsel to such holder.

          “Other Securities” means any stock and other
securities of the Company (other than Common Stock, Convertible Securities or
Stock Purchase Rights) or any other Person which shall become subject to issue
or sale upon the conversion or exchange of any stock or other securities of the
Company. 

          "Person" means any unincorporated organization,
association, corporation, individual, sole proprietorship, partnership, joint
venture, trust institution, entity, party or government (including any
instrumentality, division, agency, body or department thereof).

          "Piggy-Back Shares" has the meaning set forth in Section
5.2. 

          "Securities Act" means the Securities Act of 1933, as
amended, or any successor Federal statute and the rules and regulations of the
Commission promulgated thereunder, all as the same shall be in effect from
time to time.

          “Stock Purchase Rights” means any warrants,
options or other rights to subscribe for, purchase or otherwise acquire any
shares of Common Stock or any Convertible Securities. 

          “Subsidiary” means any corporation or
association (a) more than 50% (by number of votes) of the Voting Stock of which
is at the time owned by the Company or by one or more Subsidiaries or by the
Company and one or more Subsidiaries, or any other business entity in which the
Company or one or more Subsidiaries or the Company and one or more Subsidiaries
owns more than a 50% interest either in the profits or capital of such business
entity or (b) whose net earnings, or portions thereof, are consolidated with the
net earnings of the Company and are recorded on the books of the Company for
financial reporting purposes in accordance with generally accepted accounting
principles. 

          “Voting Stock” means securities of any class or
series of a corporation or association the holders of which are ordinarily, in
the absence of contingencies, entitled to participate in the election of a
majority of the directors or persons performing similar functions of such
corporation or association. 

          “Warrant” means this warrant dated as of the
Closing Date issued to the Initial Holder and all warrants issued upon the
partial exercise, transfer or division of or in substitution for any Warrant. 

          "Warrant Shares" means the Issuable Warrant Shares plus
the Issued Warrant Shares, but only during such time as certificates
representing such shares of this Warrant are required to bear the legend
contained in section 5.7 hereof.

Whenever used in this Warrant, any noun or pronoun shall be deemed to include
both the singular and plural and to cover all genders, and the words "herein",
"hereof", and "hereunder" and words of similar import shall refer to this
instrument as a whole, including any amendments hereto.

ARTICLE II

EXERCISE OF WARRANT

          2.1  
Right to Exercise; Notice.     On
the terms and subject to the conditions of this ARTICLE II, the holder hereof
shall have the right, at its option, to exercise this Warrant in whole or in
part at any time during the Exercise Period, by delivery to the Company of a
Notice of Exercise duly executed by such holder specifying the number of shares
of Common Stock to be purchased. 

          2.2
     Manner of Exercise; Issuance of Common Stock. To exercise this Warrant,
the holder hereof shall deliver to the Company (a) a Notice of Exercise duly
executed by the holder hereof specifying the number of shares of Common Stock to
be purchased, (b) an amount equal to the aggregate Exercise Price for all shares
of Common Stock as to which this Warrant is then being exercised and (c) this
Warrant or (ii) in connection with the exercise of this Warrant without the
payment of the Exercise Price, deliver to the Company (a) a Notice of
Exercise duly executed by the holder hereof specifying the number of shares of
Common Stock for which this Warrant is being exercised and the number of shares
of Common Stock deliverable by the Company upon such exercise, which shall equal
the product of (x) the number of shares of Common Stock for which this
Warrant is being exercised and (y) the Cashless Exercise Ratio and (b) this
Warrant. At the option of the holder hereof, payment of the Exercise Price shall
be made by (a) wire transfer of funds to an account in a bank located in the
United States designated by the Company for such purpose, (b) certified or
official bank check payable to the order of the Company and drawn on a member of
the New York Clearing House, or (c) by any combination of such methods.

           Upon receipt of
the required deliveries, the Company shall, as promptly as practicable, and in
any event within five days thereafter, cause to be issued and delivered to the
holder hereof (or its nominee) a certificate or certificates representing shares
of Common Stock equal in the aggregate to the number of shares of Common Stock
specified in the Notice of Exercise (but not exceeding the maximum number of
shares issuable upon exercise of this Warrant). Such certificates shall be
registered in the name of the holder hereof (or its nominee).

           If this Warrant
is exercised in part, the Company shall, at the time of delivery of such
certificate or certificates, unless the Exercise Period has expired, issue and
deliver to the holder hereof a new warrant evidencing the right of the holder
hereof to purchase the aggregate number of shares of Common Stock for which this
Warrant shall not have been exercised, and this Warrant shall be canceled.

          2.3
     Effectiveness of Exercise. Unless otherwise requested by the holder
hereof, this Warrant shall be deemed to have been exercised and such certificate
or certificates shall be deemed to have been issued, and the holder so
designated in the Notice of Exercise shall be deemed to have become a holder of
record of such shares for all purposes, as of the close of business on the date
the Notice of Exercise, together with payment of the Exercise Price and this
Warrant, is received by the Company. 

          2.4
Fractional Shares.      The Company shall not issue fractional shares of
Common Stock or scrip representing fractional shares of Common Stock upon any
exercise of this Warrant. As to any fractional share of Common Stock which the
holder hereof would otherwise be entitled to purchase from the Company upon such
exercise, the Company shall, upon the exercise of this Warrant, issue the larger
number of whole shares purchasable upon exercise of the Warrant. 

          2.5 Continued
Validity.      A holder of shares of Common Stock issued upon the exercise of
this Warrant, in whole or in part, shall continue to be entitled to all rights
to which a holder of this Warrant is entitled pursuant to the provisions of this
Warrant, except such rights as their terms apply solely to the holder of a
Warrant. The Company will, at the time of any exercise of this Warrant, upon the
request of the holder of the shares of Common Stock issued upon the exercise
hereof, acknowledge in writing, in a form reasonably satisfactory to such
holder, its continuing obligation to afford to such holder all rights to which
such holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant; provided, however, that if such
holder shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such holder all such rights. 

 ARTICLE III

REGISTRATION, TRANSFER AND EXCHANGE

          3.1
Maintenance of Registration Books.      The Company shall keep at its
principal office which is currently at 350 Wireless Blvd., Hauppauge, New York,
a register in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for or the registration, transfer and exchange of this
Warrant. The Company shall not at any time except upon the dissolution,
liquidation or winding up of the Company, close such register so as to result in
preventing or delaying the exercise or transfer of this Warrant. 

          3.2 Transfer
and Exchange.      Upon surrender for registration or transfer of this Warrant at
such office, the Company shall execute and deliver, subject to ARTICLE V, in the
name of the designated transferee or transferees, one or more new Warrants
representing the right to purchase a like aggregate number of shares of Common
Stock. At the option of the holder hereof, this Warrant may be exchanged for
other Warrants representing the right to purchase a like aggregate number of
shares of Common Stock upon surrender of this Warrant at such office. Whenever
this Warrant is so surrendered for exchange, the Company shall execute and
deliver the Warrants which the holder making the exchange is entitled to
receive. 

           Every Warrant
presented or surrendered for registration of transfer or exchange shall be
accompanied by an Assignment duly executed by the holder thereof or its attorney
duly authorized in writing.

           All Warrants
issued upon any registration of transfer or exchange of Warrants shall be the
valid obligations of the Company, evidencing the same rights, and entitled to
the same benefits, as the Warrants surrendered upon such registration of
transfer or exchange.

          3.3
Replacement.      Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (a) in
the case of any such loss, theft or destruction upon delivery of indemnity
reasonably satisfactory to the Company in form and amount or (b) in the case of
any such mutilation, upon surrender of such Warrant for cancellation at the
principal office of the Company, the Company, at its expense, will execute and
deliver, in lieu thereof, a new Warrant. 

          3.4
Ownership.      The Company and any agent of the Company may treat the Person
in whose name this Warrant is registered on the register kept at the principal
office of the Company as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary, except that, if and when this
Warrant is properly assigned in blank, the Company may (but shall not be
obligated to) treat the bearer thereof as the owner of this Warrant for all
purposes, notwithstanding any notice to the contrary. This Warrant, if properly
assigned, may be exercised by a new holder without first having a new Warrant
issued. 

 ARTICLE IV

ANTIDILUTION PROVISIONS

          4.1 Adjustment
of Number of Shares Purchasable.      Upon any adjustment of the Exercise Price
as provided in Section 4.2, the holder hereof shall thereafter be entitled to
purchase, at the Exercise Price resulting from such adjustment, the number of
shares of Common Stock (calculated to the nearest 1/l00th of a share) obtained
by multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of shares of Common Stock purchasable hereunder immediately prior
to such adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment.

           4.2
Adjustment of Exercise Price.      In addition to any adjustment required under
the provisions of Section 7.7 below, the Exercise Price shall be subject to
adjustment from time to time as hereinafter set forth.

          (a)      Stock
Dividends, Subdivisions and Combinations. In the event that the Company
subsequent to the Closing Date shall:

               
(i)      declare a dividend upon, or make any distribution in respect of, any of its
stock, payable in Common Stock, Convertible Securities or Stock Purchase Rights,
or

               
(ii)      subdivide its outstanding shares of Common Stock into a larger number of
shares of Common Stock, or

               
(iii)      combine its outstanding shares of Common Stock into a smaller number of
shares of Common Stock,

then the Exercise Price shall be adjusted to that price
determined by multiplying the Exercise Price per share of Common Stock
immediately prior to such event by a fraction (A) the numerator of which shall
be the total number of outstanding shares of Common Stock of the Company
immediately prior to such event, and (B) the denominator of which shall be the
total number of outstanding shares of Common Stock of the Company immediately
after such event, in each case treating as outstanding all shares of Common
Stock issuable upon conversions or exchanges of Convertible Securities and
exercises of Stock Purchase Rights. 

           (b)      Issuance of
Additional Shares of Common Stock. In case the Company shall issue or sell any
shares of Common Stock after the Closing Date (except as a result of the Dutch
A&A Transaction) for a consideration less than the Exercise Price per share then
in effect (other than as permitted under Section 4.2(m) below), the Exercise
Price upon each such issuance or sale shall be adjusted by dividing (A)
an amount equal to the sum of (1) the number of shares of Common Stock
outstanding immediately prior to such issue or sale multiplied by the then
existing Exercise Price plus (2) the aggregate consideration, if any,
received by the Company upon such issue or sale, by (B) the total number of
shares of Common Stock outstanding immediately after such issue or sale;

           The provisions
of this Subsection (b) shall not apply to any additional shares of Common Stock
which are distributed to holders of Common Stock pursuant to a stock dividend or
subdivision for which an adjustment is provided for under Subsection (a) of this
Section 4.2. No adjustment of the Exercise Price shall be made under this
Subsection upon the issuance of any additional shares of Common Stock which are
issued pursuant to the exercise of any Stock Purchase Rights or pursuant to the
conversion or exchange of any Convertible Securities to the extent that such
adjustment shall previously have been made upon the issuance of such Stock
Purchase Rights or Convertible Securities pursuant to Subsection (a), (c) or (d)
of this Section 4.2.

           (c)      Issuance of
Stock Purchase Rights. In case the Company shall issue or sell any Stock
Purchase Rights and the consideration per share or which additional shares of
Common Stock may at any time thereafter be issuable upon exercise thereof (or,
in the case of Stock Purchase Rights exercisable for the purchase of Convertible
Securities, upon the subsequent conversion or exchange of such Convertible
Securities) shall be less than the Exercise Price per share then in effect, the
Exercise Price shall be adjusted as provided in subsection (b) of this Section
4.2 on the basis that (1) the maximum number of additional shares of Common
Stock issuable upon exercise of such Stock Purchase Rights (or upon conversion
or exchange of such Convertible Securities following such exercise) shall be
deemed to have been issued as of the date of the determination of the Exercise
Price as hereinafter provided, and (ii) the aggregate consideration received for
such additional shares of Common Stock shall be deemed to be the minimum
consideration received and receivable by the Company in connection with the
issuance and exercise of such Stock Purchase Rights (or upon conversion or
exchange of such Convertible Securities). For the purposes of this Subsection,
the date as of which the Exercise Price shall be computed shall be the earlier
of (A) the date on which the Company shall enter into a firm contract for the
issuance of such Stock Purchase Rights, or (B) the date of actual issuance of
such Stock Purchase Rights.

           (d)      Issuance of
Convertible Securities. In case the Company shall issue or sell any
Convertible Securities and the consideration per share for which additional
shares of Common Stock may at any time thereafter be issuable pursuant to the
terms of such Convertible Securities shall be less than the Exercise Price per
share then in effect, the Exercise Price shall be adjusted as provided in
Subsection (b) of this Section 4.2 on the basis that (i) the maximum number of
additional shares of Common Stock necessary to effect the conversion or exchange
of all such Convertible Securities shall be deemed to have been issued as of the
date for the determination of the Exercise Price as hereinafter provided, and
(ii) the aggregate consideration received for such additional shares of Common
Stock shall be deemed to be equal to the minimum consideration received and
receivable by the Company in connection with the issuance and exercise of such
Convertible Securities. For the purposes of this Subsection, the date as of
which the Exercise Price per share shall be computed shall be the earlier of (A)
the date on which the Company shall enter into a firm contract for the issuance
of such Convertible Securities, or (B) the date of actual issuance of such
Convertible Securities. No adjustment of the Exercise Price shall be made under
this Subsection upon the issuance of any Convertible Securities which are issued
pursuant to the exercise of any Stock Purchase Rights, if an adjustment shall
previously have been made upon the issuance of such Stock Purchase Rights
pursuant to Subsection (c) of this Section 4.2.

           (e)      Minimum
Adjustment. In the event any adjustment of the Exercise Price pursuant to this
Section 4.2 shall result in an adjustment of less than $.01 per share of Common
Stock, no such adjustment shall be made, but any such lesser adjustment shall be
carried forward and shall be made at the time and together with the next
subsequent adjustment which together with any adjustments so carried forward,
shall amount to $.01 or more per share of Common Stock; provided,
however, that upon any adjustment of the Exercise Price resulting from
(i) the declaration of a dividend upon, or the making of any distribution in
respect of, any stock of the Company payable in Common Stock or Convertible
Securities or (ii) the reclassification by subdivision, combination or
otherwise, of the Common Stock into a greater or smaller number of shares, the
foregoing figure of $.01 per share (or such figure last adjusted) shall be
proportionately adjusted and provided, further upon the exercise
of this Warrant, the Company shall make all necessary adjustments (to the
nearest .001 of a cent) not theretofore made to the Exercise Price up to and
including the date upon which this Warrant is exercised.

           (f)      Readjustment
of Exercise Price. In the event (i) the purchase price payable for any Stock
Purchase Rights or Convertible Securities referred to in Subsection (c) or (d)
above, (ii) the additional consideration, if any, payable upon exercise of such
Stock Purchase Rights or upon the conversion or exchange of such Convertible
Securities or (iii) the rate at which any Convertible Securities above are
convertible into or exchangeable for additional shares of Common Stock shall
change, the Exercise Price in effect at the time of such event shall forthwith
be readjusted to the Exercise Price which would have been in effect at such time
had such Stock Purchase Rights or Convertible Securities provided for such
changed purchase price, additional consideration or conversion rate, as the case
may be, at the time initially granted, issued or sold. On the expiration of any
such Stock Purchase Rights not exercised or of any such right to convert or
exchange under such Convertible Securities not exercised, the Exercise Price
then in effect hereunder shall forthwith be increased to the Exercise Price
which would have been in effect at the time of such expiration or termination
had such Stock Purchase Rights or Convertible Securities never been issued. No
readjustment of the Exercise Price pursuant to this Subsection (f) shall have
the effect of increasing the Exercise Price by an amount in excess of the
adjustment originally made to the Exercise Price in respect of the issue, sale
or grant of the applicable Stock Purchase Rights or Convertible Securities.

           (g)     
Reorganization, Reclassification or Recapitalization of Company. In case of any
capital reorganization or reclassification or recapitalization of the capital
stock of the Company (other than in the Dutch A&A Transaction or cases referred
to in Subsection (a) of this Section 4.2), or in case of the consolidation or
merger of the Company with or into another corporation, or in case of the sale
or transfer of the property of the Company as an entirety or substantially as an
entirety, there shall thereafter be deliverable upon the exercise of this
Warrant or any portion thereof (in lieu of or in addition to the number of
shares of Common Stock theretofore deliverable, as appropriate) the number of
shares of stock or other securities or property to which the holder of the
number of shares of Common Stock which would otherwise have been deliverable
upon the exercise of this Warrant or any portion thereof at the time would have
been entitled upon such capital reorganization or reclassification of capital
stock, consolidation, merger or sale, and at the same aggregate Exercise Price.

                The Company
shall not effect any reorganization, consolidation, merger or sale of the
Company, unless prior to or simultaneously with the consummation thereof, the
successor corporation resulting from such reorganization, consolidation or
merger or the corporation purchasing such assets or the appropriate corporation
or entity shall assume, by written instrument, the obligation to deliver to the
holder hereof the shares of stock, cash, other securities or assets to which, in
accordance with the foregoing provisions, each holder hereof may be entitled to
and all other obligations of the Company under this Warrant.

           (h)      Dilution in
Case of Other Securities. In case any Other Securities shall be issued or sold
or shall become subject to issuance or sale upon the conversion or exchange of
any stock (or other securities) of the Company (or any issuer of Other
Securities or any other Person referred to in Subsection (g)) or becomes subject
to subscription, purchase or other acquisition pursuant to any options or rights
issued or granted by the Company (or by any such other issuer or Person) for a
consideration such as to dilute, within the standards established in the other
provisions of this ARTICLE IV, the purchase rights granted by this Warrant,
then, and in each such case, the computations, adjustments and readjustments
provided for in this ARTICLE IV with respect to the Exercise Price shall be made
as nearly as possible in the manner so provided and applied to determine the
amount of Other Securities from time to time receivable upon the exercise of
this Warrant, so as to protect the holders of the Warrant against the effect of
such dilution.

           (i)      Other
Dilutive Events. In case any event shall occur as to which the other provisions
of this ARTICLE IV are not strictly applicable but the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principles hereof, then, in
each such case, the Company shall make such adjustments as the Board of
Directors of the Company, in good faith, determines on a basis consistent with
the essential intent and principles established in this Article IV, necessary to
preserve, without dilution, the purchase rights represented by this Warrant.

           (j)     
Determination of Consideration. For purposes of this ARTICLE IV, the
consideration received or receivable by the Company for the issuance, sale,
grant or assumption of additional shares of Common Stock, Stock Purchase Rights
or Convertible Securities, irrespective of the accounting treatment of such
consideration, shall be valued as follows:

           (1)      Cash
Payment. In the case of cash, the net amount received by the Company after
deduction of any accrued interest, dividends or any expenses paid or incurred or
any underwriting commissions or concessions paid or allowed by the Company.

           (2)      Securities
or Other Property. In the case of securities or other property, at the Current
Market Price of the security for which such consideration was received as of the
date immediately preceding the issuance, sale or grant in question.

           (3)      Allocation
Related to Common Stock. In the event additional shares of Common Stock are
issued or sold together with other securities or other assets of the Company for
a consideration which covers both, the consideration received (computed as
provided in (1) and (2) above) shall be allocable to such additional shares of
Common Stock as determined in good faith by the Board of Directors of the
Company.

           (4)      Allocation
Related to Stock Purchase Rights and Convertible Securities. In case any Stock
Purchase Rights or Convertible Securities shall be issued or sold together with
other securities or other assets of the Company, together comprising one
integral transaction in which no specific consideration is allocated to the
Stock Purchase Rights or Convertible Securities, such Stock Purchase Rights or
Convertible Securities shall be deemed to have been issued without
consideration.

           (5)      Dividends in
Securities. In case the Company shall declare a dividend or make any other
distribution upon any stock of the Company (other than Common Stock) payable in
either case in Common Stock, Convertible Securities or Stock Purchase Rights,
such Common Stock, Convertible Securities or Stock Purchase Rights, as the case
may be, issuable in payment of such dividend or distribution shall be deemed to
have been issued or sold without consideration.

           (6)      Stock
Purchase Rights and Convertible Securities. The consideration for which shares
of Common Stock shall be deemed to be issued upon the issuance of any Stock
Purchase Rights or Convertible Securities shall be determined by dividing (i)
the total consideration, if any, received or receivable by the Company as
consideration for the granting of such Stock Purchase Rights or the issuance of
such Convertible Securities, plus the minimum aggregate amount of additional
consideration payable to the Company upon the exercise of such Stock Purchase
Rights, or, in the case of such Convertible Securities, the minimum aggregate
amount of additional consideration, if any, payable upon the conversion or
exchange thereof, in each case after deducting any accrued interest, dividends,
or any expenses paid or incurred or any underwriting commissions or concessions
paid or allowed by the Company; by (ii) the maximum number of shares of Common
Stock issuable upon the exercise of such Stock Purchase Rights or upon the
conversion or exchange of all such Convertible Securities.

           (7)      Merger,
Consolidation or Sale of Assets. In case any shares of Common Stock or
Convertible Securities or any Stock Purchase Rights shall be issued in
connection with any merger or consolidation in which the Company is the
surviving corporation, the amount of consideration therefor shall be the value
of such consideration as of the date of the issuance or sale of such Common
Stock, Convertible Securities or Stock Purchase Rights, as the case may be, as
determined by the Board of Directors of the Company in good faith. In the event
of any merger or consolidation of the Company in which the Company is not the
surviving corporation or in the event of any sale of all or substantially all of
the assets of the Company for stock or other securities of any corporation, the
Company shall be deemed to have issued a number of shares of its Common Stock
for stock or securities of the other corporation computed on the basis of the
actual exchange ratio on which the transaction was predicated and for a
consideration equal to the value on the date of such transaction of such stock
or securities of the other corporation as determined by the Board of Directors
of the Company, in good faith, and if any such calculation results in adjustment
of the Exercise Price, the determination of this number of shares of Common
Stock issuable upon exercise of this Warrant immediately prior to such merger,
consolidation or sale, for the purposes of Subsection (g) above, shall be made
after giving effect to such adjustment of the Exercise Price.

           (k)      Record Date.
In case the Company shall take a record of the holders of the Common Stock for
the purpose of entitling them (i) to receive dividends or other distributions
payable in Common Stock or in Convertible Securities or (ii) to subscribe for or
purchase Common Stock or Convertible Securities, then all references in this
ARTICLE IV to the date of the issue or sale of the shares of Common Stock deemed
to have been issued or sold upon the declaration of such dividend or the making
of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be, shall be deemed to be references
to such record date.

           (l)      Application.
Except as otherwise provided herein, all Subsections of this Section 4.2 are
intended to operate independently of one another. If an event occurs that
requires the application of more than one Subsection, all applicable Subsections
shall be given independent effect.

           (m)      No
Adjustments under Certain Circumstances. Anything herein to the contrary
notwithstanding, the Company shall not be required to make any adjustment of the
Exercise Price in the case of:

                    (i)
the issuance of shares of Common Stock upon the exercise in whole or part of
this Warrant; or

                    
(ii) the reclassification of the Company's Class A Preferred Stock into shares
of Common Stock and the sale of Common Stock pursuant to the Dutch A&A
Transaction.

           4.3 Certificates
and Notices.

           (a)      Adjustments
to Exercise Price. Upon any adjustment under this ARTICLE IV of the number of
shares of Common Stock purchasable upon exercise of this Warrant or of the
Exercise Price, a certificate, signed (i) by the President or a Vice President
and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant
Secretary of the Company, or (ii) by any independent firm of certified public
accountants of recognized national standing selected by, and at the expense of,
the Company, setting forth in reasonable detail the events requiring the
adjustment and the method by which such adjustment was calculated, shall be
mailed to the holder of this Warrant specifying the adjusted Exercise Price and
the number of shares of Common Stock purchasable upon exercise of such holder's
Warrant after giving effect to such adjustment.

                The certificate
of any independent firm of certified public accountants of recognized national
standing selected by the Board of Directors of the Company shall be conclusive
evidence of the correctness of any computation made under ARTICLE IV, absent
manifest error.

           (b)     
Extraordinary Corporate Events. In case the Company after the date hereof shall
propose to (i) pay any dividend payable in stock to the holders of shares of
Common Stock or to make any other Distribution to the holders of shares of
Common Stock, (ii) offer to the holders of shares of Common Stock rights to
subscribe for or purchase any additional shares of any class of stock or any
other rights or options or (iii) effect any reclassification of the Common Stock
(other than a reclassification involving merely the subdivision or combination
of outstanding shares of Common Stock), or any capital reorganization or any
consolidation or merger (other than a merger in which no distribution of
securities or other property is to be made to holders of shares of Common
Stock), or any sale, transfer or other disposition of its property, assets and
business as an entirety or substantially as an entirety, or the liquidation,
dissolution or winding up of the Company, then, in each such case, the Company
shall mail to the holder of this Warrant notice of such proposed action, which
shall specify the date on which the stock transfer books of the Company shall
close, or a record shall be taken, for determining the holders of Common Stock
entitled to receive such stock dividends or other Distribution or such rights or
options, or the date on which such reclassification, reorganization,
consolidation, merger, sale, transfer, other disposition, liquidation,
dissolution or winding up shall take place or commence, as the case may be, and
the date as of which it is expected that holders of Common Stock of record shall
be entitled to receive securities or other property deliverable upon such
action, if any such date is to be fixed. Such notice shall be mailed in the case
of any action covered by clause (i) or (ii) above at least 10 days prior to the
record date for determining holders of Common Stock for purposes of receiving
such payment or offer, or in the case of any action covered by clause (iii)
above at least 30 days prior to the date upon which such action takes place and
20 days prior to any record date to determine holders of Common Stock entitled
to receive such securities or other property.

           (c)      Effect of
Failure. Failure to file any certificate or notice or to mail any notice, or any
defect in any certificate or notice pursuant to this Section 4.3 shall not
affect the legality or validity of the adjustment of the Exercise Price or the
number of shares purchasable upon exercise of this Warrant, or any transaction
giving rise thereto.

 ARTICLE V

RESTRICTIONS ON TRANSFER

           Neither this
Warrant nor any Issued Warrant Shares shall be transferable except (a) to an
Affiliate of the holder hereof, (b) to a successor corporation to the holder
hereof as a result of a merger or consolidation with, or sale of all or
substantially all of the assets of, the holder hereof, (c) as is or may be
required by the holder hereof to comply with any Federal or state law or any
rule or regulation of any governmental or public body or authority, (d) on 30
days prior written notice to the Company for a period of 90 days immediately
following the date of such notice, to any other Person if following such
transfer the amount of Voting Stock of the Company (including any Voting Stock
issuable pursuant to any warrants, options, convertible securities or other
rights) held by such Person and its Affiliates does not exceed 5% of the
Company's then outstanding Voting Stock.

           Any notice given
by the holder hereof or of any Issued Warrant Shares pursuant to Subsection (d)
of the first paragraph of this ARTICLE V shall contain (i) the name and address
of the proposed bona fide purchaser, (ii) the proposed purchase price for this
Warrant or portion hereof or Issued Warrant Shares proposed to be sold
("Proposed Purchase Price"), (iii) the portion of this Warrant or the number of
Issued Warrant Shares proposed to be sold and (iv) a brief description of such
proposed transfer.

           The conditions
contained in the following sections of this ARTICLE V are intended to ensure
compliance with the Securities Act in respect of the transfer of this Warrant or
Issued Warrant Shares. Reference in this ARTICLE V to Issued Warrant Shares
includes Issued Warrant Shares theretofore issued upon the exercise of this
Warrant or otherwise which are then evidenced by certificates required to bear
the legend set forth in Section 5.7.

           5.1      Notice of
Proposed Transfer; Registration Not Required. The holder hereof or the holder of
any Issued Warrant Shares bearing the legend set forth in Section 5.7, by
acceptance hereof or thereof, agrees to give written notice to the Company,
prior to any transfer of this Warrant, such Issued Warrant Shares or any portion
hereof or thereof, of its intention to make such transfer as required by the
preamble of this ARTICLE V.

           Such holder
shall request an Opinion of Counsel (which shall be rendered by counsel
reasonably acceptable to the Company) that the proposed transfer may be effected
without registration or qualification under any Federal or state securities or
blue sky law. Counsel shall, as promptly as practicable, notify the Company and
the holder of such opinion and of the terms and conditions, if any, to be
observed in such transfer, whereupon the holder shall be entitled to transfer
this Warrant or such Issued Warrant Shares (or portion thereof) in accordance
with the terms of the notice delivered to the Company. In the event this Warrant
shall be exercised as an incident to such transfer, such exercise shall relate
back and for all purposes of this Warrant be deemed to have occurred as of the
date of such notice regardless of delays incurred by reason of the provisions of
this ARTICLE V which may result in the actual exercise on any later date.

          5.2     
Incidental Registration and Qualification. If the Company proposes to
register any of its securities under the Securities Act on its behalf or on
behalf of any of its security holders on any registration form (otherwise than
for the registration of securities to be offered and sold pursuant to (a) an
employee benefit plan, (b) a dividend or interest reinvestment plan, (c) other
similar plans or (d) reclassifications of securities, mergers, consolidations
and acquisitions of assets) permitting a secondary offering or distribution of
Issued Warrant Shares, not less than 90 days prior to each such registration the
Company shall give to the holder hereof and the holders of Issued Warrant Shares
bearing the legend required by Section 5.7 hereof written notice of such
proposal which shall describe in detail the proposed registration and
distribution (including those jurisdictions where registration or qualification
under the securities or blue sky laws is intended) and, upon the written request
of the holder hereof or a holder of such Issued Warrant Shares furnished within
30 days after the date of any such notice, proceed to include in such
registration such Warrant Shares (“Piggy-Back Shares”) as have been
requested by any such holder to be included in such registration. The holder
hereof or any holder of such Issued Warrant Shares shall in its request describe
briefly the proposed disposition of such shares of Common Stock. The Company
will in each instance use its best efforts to cause all such Piggy-Back Shares
to be registered under the Securities Act and qualified under the securities or
blue sky laws of any jurisdiction requested by a prospective seller, all to the
extent necessary to permit the sale or other disposition thereof in the manner
stated in such request by a prospective seller of the securities so registered. 

               
If the managing underwriter, who shall be selected by the Company, if such
distribution is a primary offering, or the security holders, if such security
holders are exercising demand registration rights, to manage the distribution of
the shares of Common Stock being registered, advises the Company in writing
that, in its opinion, the inclusion of the Piggy-Back Shares with the securities
being registered by the Company and/or other prospective sellers would
materially adversely affect the distribution of all such securities, then (a) if
such distribution is a primary offering on behalf of the Company, the Company
shall first be entitled to have all of the shares proposed to be sold by it
included in such distribution before any shares (including Piggy-Back Shares)
proposed to be sold by any other prospective sellers are included in such
distribution and any shares in excess of such numbers of shares proposed to be
sold by the Company which are permitted by such managing underwriter to be
included in such distribution shall be allocated among such other prospective
sellers in such proportion as the number of shares proposed to be sold by each
such prospective seller bears to the aggregate number of shares of Common Stock
proposed to be sold by all such other prospective sellers; and (b) if such
distribution is initiated pursuant to the exercise of demand registration rights
granted by the Company to any of its security holders, the Company and each
prospective seller may sell that proportion of the shares of Common Stock to be
sold in the proposed distribution which the number of shares of Common Stock
proposed to be sold by such prospective seller bears to the aggregate number of
shares of Common Stock proposed to be sold by all prospective sellers (including
the Company). In the event that some or all of the Piggy-Back Shares proposed to
be sold by prospective sellers are not included in such distribution, the
Company shall use its best efforts to effect and maintain any such registration
or qualification under the Securities Act and the securities or blue sky laws of
any jurisdiction as may be necessary to permit such prospective seller to make
its proposed offering and sale following the end of a period not to exceed 90
days after the effective date of such registration and shall pay all expenses
related thereto in accordance with Section 5.5.

               
The holder hereof and any holder of Issued Warrant Shares who has requested
shares of Common Stock to be included in a registration pursuant to this Section
5.2, by acceptance hereof or thereof, agrees to (a) the selection by the Company
or such other security holders of an underwriter to manage such registration and
(b) execute an underwriting agreement with such underwriter that is (i)
reasonably satisfactory to such holder and (ii) in customary form.

               
Nothing in this Section 5.2 shall be deemed to require the Company to proceed
with any primary registration of its securities after giving the notice as
provided herein, provided however, that the Company shall pay all expenses
incurred pursuant to such notice (in accordance with Section 5.5.)

           5.3      Registration
and Qualification Procedures. Whenever the Company is required by the provisions
of Section 5.2 to use its best efforts to effect the registration of any of its
securities under the Securities Act, the Company will, as expeditiously as is
possible:

               
(a)      prepare and file with the Commission a registration statement with respect
to such securities in connection with which the Company will give the sellers,
their underwriters, if any, their respective counsel and accountants the
opportunity to participate in the preparation of such registration statement,
each prospectus included therein or filed with the Commission, and each
amendment thereof or supplement thereto, and will give each of them access to
its books and records and such opportunities to discuss the business of the
Company with its officers and the independent public accountants who have
certified its financial statements as shall be necessary, in the opinion of such
sellers' and such underwriters' respective counsel, to conduct a reasonable
investigation within the meaning of the Securities Act;

               
(b)      prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective and the prospectus
current and to comply with the provisions of the Securities Act with respect to
the sale of all securities covered by such registration statement whenever the
seller of such securities shall desire to sell the same; provided,
however, the Company shall have no obligation to file an amendment or
supplement at its own expense more than 9 months after the effective date of
such registration statement;

               
(c)      furnish to each seller such numbers of copies of preliminary prospectuses
and prospectuses and each supplement or amendment thereto and any other
documents as each seller may reasonably request in order to facilitate the sale
or other disposition of the securities owned by such seller in conformity with
(i) the requirements of the Securities Act and (ii) the seller's proposed method
of distribution;

               
(d)      register or qualify the securities covered by such registration statement
under the securities or blue sky laws of such jurisdictions within the United
States as each seller shall request, and do such other reasonable acts and
things as may be required of it to enable each seller to consummate the sale or
other disposition in such jurisdictions of the securities owned by such seller;
provided, however, that the Company shall not be required to (i)
qualify as a foreign corporation or consent to a general and unlimited service
of process in any such jurisdiction, or (ii) qualify as a dealer in
securities;

               
(e)      furnish, at the request of any seller on the date such securities are
delivered to the underwriters for sale pursuant to such registration or, if such
securities are not being sold through underwriters, on the date the registration
statement with respect to such securities becomes effective, (i) an opinion,
dated such date, of counsel representing the Company for the purposes of such
registration, addressed to the underwriters, if any, and to the seller making
such request, covering such legal matters with respect to the registration in
respect of which such opinion is being given as the seller of such securities
may reasonably request and are customarily included in such opinions and (ii)
letters, dated, respectively, (1) the effective date of the registration
statement and (2) the date such securities are delivered to the underwriters, if
any, for sale pursuant to such registration, from a firm of independent
certified public accountants of recognized national standing selected by the
Company, addressed to the underwriters, if any, and to the seller making such
request, covering such financial, statistical and accounting matters with
respect to the registration in respect of which such letters are being given as
the seller of such securities may reasonably request and are customarily
included in such letters;

               
(f)      otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders as
soon as reasonably practicable, but not later than 16 months after the effective
date of the registration statement, an earnings statement covering a period of
at least 12 months beginning after the effective date of the registration
statement, which earnings statement shall satisfy the provisions of Section
11(a) of the Securities Act;

               
(g)      enter into and perform an underwriting agreement with the managing
underwriter, if any, selected as provided in Section 5.2, containing customary
(i) terms of offer and sale of the securities, payment provisions, underwriting
discounts and commissions, and (ii) representations, warranties, covenants,
indemnities, terms and conditions; the sellers may, at their option, require
that any or all of the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such
underwriters shall also be made to and for the benefit of such sellers and that
any or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement be conditions precedent to the obligations of
such sellers; such sellers shall not be required to make any representations or
warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements regarding such seller and such
seller's intended method of distribution and any other representation required
by law;

               
(h)      notify each seller at any time when a prospectus relating to the
registration is required to be delivered under the Securities Act, upon
discovery that, or upon the happening of any event as a result of which, the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances under which they were made, at the
request of any such seller promptly prepare and furnish to such seller a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made; and

               
(i)      keep each seller advised in writing as to the initiation and progress of any
registration under Section 5.2.

          5.4      Holdback
Agreement. The Company agrees not to effect any public sale or distribution
of its equity securities or securities convertible into or exchangeable or
exercisable for any of such securities during the seven days prior to or 90 days
after any underwritten registration pursuant to Section 5.2 has become
effective, except as part of such underwritten registration and except pursuant
to registrations on Form S-8 or S-4 or any successor or similar forms thereto,
and to cause each Person who purchases its equity securities or any securities
convertible into or exchangeable or exercisable for any of such securities at
any time after the date of this Warrant (other than in a public offering) to
agree not to effect any such public sale or distribution of such securities,
during such period. 

          5.5     
Allocation of Expenses. If the Company is required by the provisions of
Section 5.2 to use its best efforts to effect the registration or qualification
under the Securities Act or any state securities or blue sky laws of any of the
Warrant Shares, the Company shall pay all expenses (i) in connection therewith,
other than the fees and expenses referred to in clauses (1), (2) and (3) of the
proviso set forth below, if such registration is a primary registration on
behalf of the Company and Piggy-Back Shares are included therein; and (ii)
including the expenses referred to in such proviso, which expenses shall
include, without limitation, (a) all expenses incident to filing with the
National Association of Securities Dealers, Inc., (b) registration fees, (c)
printing expenses, (d) accounting and legal fees and expenses, (e) expenses of
any special audits incident to or required by any such registration or
qualification, (f) premiums for insurance in such amount, if any, deemed
appropriate by the managing underwriter and (g) expenses of complying with the
securities or blue sky laws of any jurisdictions in connection with registration
or qualification; provided, however, that the following fees and
expenses shall be treated as set forth in clauses (i) and (ii) above and (x)
below: (1) any discounts or commissions to any underwriter attributable to
securities being sold by or on behalf of Persons other than the Company; (2) any
stock transfer taxes incurred in respect of the Warrant Shares sold by the
sellers; (3) the legal fees of any holder of this Warrant or shares issued or
issuable hereunder; provided further, that (x) in any required
registration pursuant to Section 5.2 hereof (other than as referred to in clause
(i) above), the incremental expenses of the nature set forth in clauses (ii)(a)
through (g) above (including those set forth in clauses (1), (2) and (3) above)
attributable to the inclusion of Piggy-Back Shares shall be borne pro rata by
the holders of Warrant Shares whose Warrant Shares are included therein in
proportion to their respective numbers of Warrant Shares included therein. 

          5.6     
Indemnification. In connection with any registration or qualification of
securities under Section 5.2, the Company agrees to indemnify the holder hereof
and the holders of any Issued Warrant Shares and each underwriter thereof,
including each person, if any, who controls the holder or such stockholder or
underwriter within the meaning of Section 15 of the Securities Act, against all
losses, claims, damages, liabilities and expenses (including reasonable costs of
investigation) caused by any untrue, or alleged untrue, statement of a material
fact contained in any registration statement, preliminary prospectus, prospectus
or notification or offering circular (as amended or supplemented if the Company
shall have furnished any amendments or supplements thereto) or caused by any
omission, or alleged omission, to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages, liabilities or expenses are
caused by any untrue statement or alleged untrue statement or omission or
alleged omission based upon information furnished in writing to the Company by
the holder or any such stockholder or underwriter expressly for use therein. The
Company and each officer, director and controlling person of the Company shall
be indemnified by the holder of this Warrant and by the holders of any Issued
Warrant Shares for all such losses, claims, damages, liabilities and expenses
(including the costs of reasonable investigation) caused by any such untrue, or
alleged untrue, statement or any such omission or alleged omission, based upon
information furnished in writing to the Company by the holder hereof or any such
stockholder expressly for use therein. 

               
Promptly upon receipt by a party indemnified under this Section 5.6 of notice of
the commencement of any action against such indemnified party in respect of
which indemnity or reimbursement may be sought against any indemnifying party
under this Section 5.6, such indemnified party shall notify the indemnifying
party in writing of the commencement of such action, but the failure so to
notify the indemnifying party shall not relieve it of any liability which it may
have to any indemnified party otherwise than under this Section 5.6 unless such
failure shall materially adversely affect the defense of such action. In case
notice of commencement of any such action shall be given to the indemnifying
party as above provided, the indemnifying party shall be entitled to participate
in and, to the extent it may wish, jointly with any other indemnifying party
similarly notified, to assume the defense of such action at its own expense,
with counsel chosen by it and satisfactory to such indemnified party. The
indemnified party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such
counsel (other than reasonable costs of investigation) shall be paid by the
indemnified party unless (a) the indemnifying party agrees to pay the same, (b)
the indemnifying party fails to assume the defense of such action with counsel
reasonably satisfactory to the indemnified party or (c) the named parties to any
such action (including any impleaded parties) have been advised by such counsel
that representation of such indemnified party and the indemnifying party by the
same counsel would be inappropriate under applicable standards of professional
conduct (in which case the indemnifying party shall not have the right to assume
the defense of such action on behalf of such indemnified party). No indemnifying
party shall be liable for any settlement entered into without its consent.

               
If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party in respect of any losses,
claims, damages, liabilities, expenses or actions in respect thereof referred to
herein, then each indemnifying party shall in lieu of indemnifying such
indemnified party as a result of such losses, claims, damages, liabilities,
expenses or actions contribute in such proportion as is appropriate to reflect
the relative fault of the Company, on the one hand, and the sellers of such
Common Stock, on the other, in connection with the statements or omissions which
resulted in such losses, claims, damages, liabilities, expenses or actions as
well as any other relevant equitable considerations, including the failure to
give the notice required hereunder. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact relates to information supplied by the Company, on the one
hand, or the sellers of such Common Stock, on the other hand, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the holder hereof agree that
it would not be just and equitable if contribution pursuant to this Section were
determined by pro rata allocation (even if all of the sellers of such Common
Stock were treated as one entity for such purpose) or by any other method of
allocation which did not take account of the equitable considerations referred
to above. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages, liabilities or actions in respect thereof referred to
above shall be deemed to include any legal or other expenses reasonable incurred
by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the contribution provisions of this Section
5.6, in no event shall the amount contributed by any seller of Common Stock
exceed the aggregate gross offering proceeds received by such seller from the
sale of Common Stock to which such contribution claim relates. No person guilty
of fraudulent misrepresentations (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who is not
guilty of such fraudulent misrepresentation.

               
Each holder of this Warrant and each holder of Issued Warrant Shares bearing the
legend required by Section 5.7, by acceptance hereof or thereof, as the case may
be, agrees to the indemnification and contribution provisions of this Section
5.6.

           5.7      Legend on
Warrants and Certificates. Each Warrant shall bear a legend in substantially the
following form:

	 	
“This
Warrant and any shares of Common Stock issuable upon the exercise of this
Warrant have not been registered under the Securities Act of 1933, as amended,
and neither this Warrant nor any such shares may be transferred in the absence
of such registration or any exemption therefrom under such Act.”

              
Warrant Shares which are issued upon the exercise in whole or in part of this
Warrant or otherwise, or are thereafter transferred, in either case under such
circumstances that no registration under the Securities Act is required, shall
bear on the face thereof the following legend:

	 	
“The
shares represented by this certificate have not been registered under the
Securities Act of 1933, as amended, and any transfer thereof is subject to the
conditions specified in the Warrant dated as of September 13, 2000
originally issued by Sentry Technology Corporation (the “Company”)
to NOG (NY) QRS 12-23, Inc. to purchase shares of Common Stock, $.001 par value,
of the Company. A copy of the form of such Warrant is on file with the Secretary
of the Company at 350 Wireless Blvd., Hauppauge, New York and will be furnished
without charge by the Company to the holder of this certificate upon written
request to the Secretary of the Company at such address.”

           5.8      Termination
of Restrictions. The restrictions imposed under this ARTICLE V upon the
transferability of this Warrant, or of Issuable Warrant Shares or Issued Warrant
Shares, shall cease when (a) a registration statement covering such Issuable
Warrant Shares or Issued Warrant Shares becomes effective under the Securities
Act or (b) the Company receives an Opinion of Counsel that such restrictions are
no longer required in order to ensure compliance with the Securities Act. When
such restrictions terminate, the Company shall, or shall instruct its transfer
agent and registrar to, issue new certificates in the name of the holder not
bearing the legends required under Section 5.7.

          5.9       Supplying
Information. The Company, the holder hereof and each holder of Issued Warrant
Shares shall cooperate with each other in supplying such information as may be
necessary for any of such parties to complete and file any information reporting
forms presently or hereafter required by the Commission or any commissioner or
other authority administering the blue sky or securities laws of any
jurisdiction where shares of Common Stock are proposed to be sold pursuant to
Section 5.2.

 ARTICLE VI

           The Company
hereby represents and warrants to the Initial Holder and each subsequent holder
of this Warrant that as of the Closing Date:

           6.1      Organization
and Capitalization of the Company. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State
Delaware. 

          (a)     
The authorized capital stock of the Company presently consists of 40,000,000
shares of Common Stock and 10,000,000 shares of preferred stock, par value $.001
per share. As of the date of this Agreement, (i) 9,750,760 shares of Common
Stock are issued and outstanding, (ii) 1,857,056 shares of Common Stock are
reserved for issuance pursuant to outstanding stock options, 362,177 shares of
Common Stock are reserved for issuance in respect of future grants of stock
options, and 100,000 shares of Common Stock are reserved for issuance pursuant
to outstanding warrants, (iii) 5,333,334 shares of Class A Preferred Stock are
issued and outstanding, (iv) 380,056 shares of Class A Preferred Stock are
reserved for issuance pursuant to outstanding stock options and (v) an
indeterminate number of shares of Series B Junior Participating Preferred Stock
are reserved for issuance in connection with the Company's Shareholder Rights
Plan. All outstanding shares of Common Stock and Class A Preferred Stock are
validly issued, fully paid and nonassessable. No shares of Series B Junior
Participating Preferred Stock are outstanding. The Common Stock is not subject
to preemptive rights. Except as disclosed in Schedule 6.1, there are no
outstanding subscriptions, options, warrants, calls, rights, commitments or any
other agreements to which the Company is a party or by which the Company is
bound which obligate the Company to (i) issue, deliver or sell or cause to be
issued, delivered or sold any additional shares of Common Stock, Class A
Preferred Stock or any other capital stock of the Company or any other
securities convertible into, or exercisable or exchangeable for, or evidencing
the right to subscribe for, any such shares or (ii) purchase, redeem or
otherwise acquire any shares of Common Stock, Class A Preferred Stock and any
other capital stock of the Company.

           (b)      
Following the Initial Closing Date, the authorized capital stock of the Company
will consist of 140,000,000 shares of Common Stock and 10,000,000 shares of
preferred stock, par value $.001 per share. At that time (assuming no stock
options outstanding on the date hereof will have been exercised), (i) 38,417,420
shares of Common Stock will be issued and outstanding, (ii) 3,957,336 shares of
Common Stock will be reserved for issuance pursuant to outstanding stock
options, (iii) 362,177 shares of Common Stock will be reserved for issuance in
respect of future grants of stock options, (iv) 250,000 shares of Common Stock
will be reserved for issuance pursuant to outstanding warrants and (iii) an
indeterminate number of shares of Series B Junior Participating Preferred Stock
will be reserved for issuance in connection with the Company's Shareholders
Rights Plan. No shares of Series B Junior Participating Preferred Stock will be
outstanding. No unissued shares of Common Stock are reserved for any purpose
other than for issuance upon the exercise of this Warrant.

                    
The Company has not issued or agreed to issue any Stock Purchase Rights, other
than pursuant to this Warrant, or Convertible Securities, and there are no
preemptive rights in effect with respect to the issuance of any shares of Common
Stock, except as listed in Schedule 6.1. All the outstanding shares of the
Company's capital stock have been validly issued without violation of any
preemptive or similar rights and are fully paid and nonassessable.

           6.2      Authority.
The Company has full corporate power and authority to execute and deliver this
Warrant and to perform all of its obligations hereunder, and the execution,
delivery and performance hereof have been duly authorized by all necessary
corporate action on its part. This Warrant has been duly executed on behalf of
the Company and constitutes the legal, valid and binding obligation of the
Company enforceable in accordance with its terms.

           6.3      No Legal
Bar. Neither the execution, delivery or performance of this Warrant will (a)
conflict with or result in a violation of the certificate of incorporation or
Bylaws of the Company, (b) conflict with or result in a violation of any law,
statute, regulation, order or decree applicable to the Company or any Affiliate,
(c) require any consent or authorization or filing with, or other act by or in
respect of, any governmental authority, or (d) result in a breach of, constitute
a default under or constitute an event creating rights of acceleration,
termination or cancellation under any mortgage, lease, contract, franchise,
instrument or other agreement to which the Company is a party or by which it is
bound, other than applicable restrictions contained in any of such documents
relating to indebtedness of the Company.

 ARTICLE VII

VARIOUS COVENANTS OF THE COMPANY

           7.1      No
Impairment or Amendment. The Company shall not avoid or seek to avoid the
observance or performance of any of the terms of this Warrant by any action
including, without limitation, amending its certificate of incorporation, any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate to protect the rights of the holder
hereof against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any shares of Common Stock
issuable upon the exercise of this Warrant above the amount payable therefor
upon such exercise, (b) take all such action as may be necessary or appropriate
in order that the Company may validly issue fully paid and nonassessable shares
of Common Stock upon the exercise of this Warrant and (c) obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant. Notwithstanding the foregoing, no actions taken
on the part of the Company necessary to effectuate the Dutch A&A Transaction
shall be deemed to violate this Section 7.1.

               
Upon the request of the holder hereof the Company will at any time during the
period this Warrant is outstanding acknowledge in writing, in form satisfactory
to such holder, the continued validity of this Warrant and the Company's
obligations hereunder.

           7.2      Reservation
of Common Stock. The Company will at all times reserve and keep available,
solely for issuance, sale and delivery upon the exercise of this Warrant a
number of shares of Common Stock equal to the number of shares of Common Stock
issuable upon the exercise of this Warrant. All such shares of Common Stock
shall be duly authorized and, when issued upon exercise of this Warrant, shall
be validly issued and fully paid and non-assessable with no liability on the
part of the holders thereof.

           7.3      Listing on
Securities Exchange. If the Company shall list any shares of Common Stock on any
securities exchange it will, at its expense, list thereon, maintain and increase
when necessary such listing of, all Issued Warrant Shares so long as any shares
of Common Stock shall be so listed. The Company will also so list on each
securities exchange, and will maintain such listing of, any other securities
which the holder of this Warrant shall be entitled to receive upon the exercise
thereof if at the time any securities of the same class shall be listed on such
securities exchange by the Company.

           7.4      Availability
of Information. The Company will cooperate with the holder hereof and of Issued
Warrant Shares in supplying such information as may be necessary for such holder
to complete and file any information reporting forms presently or hereafter
required by the Commission as a condition to the availability of an exemption
from the Securities Act for the sale of this Warrant or such Issued Warrant
Shares.

           7.5      
Indemnification. If the Company fails to make when due any payments provided for
in this Warrant, the Company shall pay to the holder hereof (a) interest at the
Default Rate on any amounts due and owing to such holder and (b) such further
amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys' fees and expenses incurred by such holder
in collecting any amounts due hereunder.

           The Company
shall indemnify, save and hold harmless the holder hereof from and against any
and all liability, loss, cost, damage, reasonable attorneys' and accountants'
fees and expenses, court costs and all other out-of-pocket expenses (excluding
consequential damages) incurred in connection with or arising from an Event of
Default.

           7.6      Certain
Expenses. The Company shall pay all expenses in connection with, and all taxes
(other than stock transfer and capital gains taxes) and other governmental
charges that may be imposed in respect of, the issue and delivery of (a) the
Warrant, (b) the Issuable Warrant Shares, or (c) the Issued Warrant Shares.

           7.7      Adjustments
for Restatements of Certain Financial Data. The Company hereby acknowledges that
the initial number of shares issuable upon exercise of this Warrant was
calculated based upon the representation of the Company that the number of
shares of Common Stock outstanding on a fully diluted basis as of the Closing
Date (excluding the Issuable Warrant Shares) is as stated in Section 6.1(a). If
for any reason it shall hereafter be determined by the holder of this Warrant
that the actual number of shares of Common Stock outstanding on a fully diluted
basis as of the Closing Date was different from the foregoing, such holder may
notify the Company of such determination and if the Company does not dispute the
same, the Company shall forthwith reissue this Warrant with appropriate
adjustments in the initial number of shares issuable upon the exercise hereof.

 ARTICLE VIII

MISCELLANEOUS

           8.1      Nonwaiver.
No course of dealing or any delay or failure to exercise any right, power or
remedy hereunder on the part of the holder hereof shall operate as a waiver of
or otherwise prejudice such holder's rights, powers or remedies.

           8.2      Holder Not a
Stockholder. Prior to the exercise of this Warrant as hereinbefore provided, the
holder hereof shall not be entitled to any of the rights of a stockholder of the
Company including, without limitation, the right as a stockholder to (a) vote on
or consent to any proposed action of the Company or (b) receive (i) dividends or
any other distributions made to stockholders, (ii) notice of or attend any
meetings of stockholders of the Company or (iii) notice of any other proceedings
of the Company (except as provide in Article IV.

           8.3      Notices. Any
notice, demand or delivery to be made pursuant to the provisions of this Warrant
shall be sufficiently given or made if sent by first class mail, postage
prepaid, addressed to (a) the holder of this Warrant or Issued Warrant Shares at
its last known address appearing on the books of the Company maintained for such
purpose or (b) the Company at its principal office at 350 Wireless Blvd.,
Hauppauge, New York, Attention: President. The holder of this Warrant and the
Company may each designate a different address by notice to the other pursuant
to this Section 8.3.

           8.4      Like Tenor.
All Warrants shall at all times be identical, except as to the Preamble.

           8.5      Remedies.
The Company stipulates that the remedies at law of the holder of this Warrant or
of Issued Warrant Shares in the event of any default or threatened default by
the Company in the performance of or compliance with any of the terms of this
Warrant are not and will not be adequate and that, to the fullest extent
permitted by law, such terms may be specifically enforced by a decree for the
specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise.

           8.6      Successors
and Assigns. This Warrant and the rights evidenced hereby shall inure to the
benefit of and be binding upon the successors and assigns of the Company, the
holder hereof and the holders of Issued Warrant Shares, to the extent provided
herein, and shall be enforceable by any such holder.

           8.7      Modification
and Severability. If, in any action before any court or agency legally empowered
to enforce any provision contained herein, any provision hereof is found to be
unenforceable, then such provision shall be deemed modified to the extent
necessary to make it enforceable by such court or agency. If any such provision
is not durable as set forth in the preceding sentence, the unenforceability of
such provision shall not affect the other provisions of this Agreement, but this
Agreement shall be construed as if such unenforceable provision had never been
contained herein.

           8.8      Integration.
This Warrant replaces all prior agreements, supersedes all prior negotiations
and constitutes the entire agreement of the parties with respect to the
transactions contemplated herein.

           8.9      Amendment.
This Warrant may not be modified or amended except by written agreement of the
Company and the holder hereof.

           8.10      Headings.
The headings of the Articles and Sections of this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

           8.11      Governing
Law. This Warrant shall be governed by the laws of the State of New York.

Dated as of September 13, 2000

		SENTRY TECHNOLOGY

CORPORATION

By: /s/ Anthony H. N. Schnelling

      Anthony H.N. Schnelling

      President

Attest:

/s/ Peter J. Mundy

Secretary

NOTICE OF EXERCISE FORM

(To be executed only upon partial or full

exercise of the within Warrant)

The undersigned registered holder of the within Warrant
irrevocably exercises the within Warrant for and purchases ____ shares of Common
Stock of Sentry Technology Corporation and herewith makes payment therefor in
the amount of $______, all at the price and on the terms and conditions
specified in the within Warrant, and requests that a certificate (or _____
certificates in denominations of ______ shares) for the shares of Common Stock
of Sentry Technology Corporation hereby purchased be issued in the name of and
delivered to (choose one) (a) the undersigned or (b) _______ , whose address is
___________ and, if such shares of Common Stock shall not include all the shares of
Common Stock issuable as provided in the within Warrant, that a new Warrant of
like tenor for the number of shares of Common Stock of ______ not being
purchased hereunder be issued in the name of and delivered to (choose one) (a)
the undersigned or (b)________________________, whose address is
___________________________________________________. 

Dated: ________,____

	Signature Guaranteed:   	By:_______________________________

         (Signature of Registered Holder)

__________

By:_____________

    [Title:]

	NOTICE:	The signature to this Notice of Exercise must
correspond with the name as written upon the face of the within Warrant in every
particular, without alteration or enlargement or any change whatever.

The signature to this Notice of Exercise must be guaranteed by a commercial bank
or trust company in the United States or a member firm of the New York Stock
Exchange.

ASSIGNMENT FORM

(To be executed only upon the assignment

of the within Warrant)

FOR VALUE RECEIVED, the undersigned registered holder of the
within Warrant hereby sells, assigns and transfers unto ______________________
whose address is ________________________________ all of the rights of the
undersigned under the within Warrant, with respect to _______ shares of Common
Stock of Sentry Technology Corporation (the “Company”) and, if such
shares of Common Stock shall not include all the shares of Common Stock issuable
as provided in the within Warrant, that a new Warrant of like tenor for the
number of shares of Common Stock of _______ not being transferred hereunder be
issued in the name of and delivered to the undersigned, and does hereby
irrevocably constitute and appoint ___________ Attorney to register such transfer
on the books of the Company maintained for the purpose, with full power of
substitution in the premises. 

Dated:________________________

	Signature Guaranteed:   	By:_______________________________

         (Signature of Registered Holder)

__________

By:_____________

    [Title:]

__________

By:__________________________
    [Title:]

	NOTICE:	The signature to this Assignment must correspond with the name as
written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatever.

The signature to this Assignment must be guaranteed by a commercial bank or
trust company in the United States or a member firm of the New York Stock
Exchange.

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