Document:

<PAGE>

                                                                     Exhibit 4.2

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933. THE REGISTERED HOLDER OF THIS WARRANT, BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT
AND THE SHARES ISSUABLE HEREUNDER EXCEPT AS HEREIN PROVIDED.

                VOID AFTER 5:00 P.M. EASTERN TIME, June 28, 2004

                                     WARRANT

                               For the Purchase of

                          43,048 Shares of Common Stock

                                       of

                              NEOWARE SYSTEMS, INC.

1.       Warrant.

         THIS CERTIFIES THAT, in consideration of $10.00 and other good and
valuable consideration, duly paid by or on behalf of GKN Securities Corp.
("Holder"), as registered owner of this Warrant, to Neoware Systems, Inc.
("Company"), Holder is entitled, at any time or from time to time at or after
June 29, 2001 ("Commencement Date"), and at or before 5:00 p.m., Eastern Time
June 28, 2004 ("Expiration Date"), but not thereafter, to subscribe for,
purchase and receive, in whole or in part, up to 43,048 shares of Common Stock
of the Company, ("Common Stock"). If the Expiration Date is a day on which
banking institutions are authorized by law to close, then this Warrant may be
exercised on the next succeeding day which is not such a day in accordance with
the terms herein. This Warrant is initially exercisable at $2.20 per share of
Common Stock purchased; provided, however, that upon the occurrence of any of
the events specified in Section 6 hereof, the rights granted by this Warrant,
including the exercise price and the number of shares of Common Stock to be
received upon such exercise, shall be adjusted as therein specified. The term
"Exercise Price" shall mean the initial exercise price or the adjusted exercise
price, depending on the context, of a share of Common Stock. The term
"Securities" shall mean the shares of Common Stock issuable upon exercise of
this Warrant.

2.       Exercise.

         2.1 Exercise Form. In order to exercise this Warrant, the exercise form
attached hereto must be duly executed and completed and delivered to the
Company, together with this Warrant and payment of the Exercise Price for the
Securities being purchased. If the subscription rights represented hereby shall
not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date,
this Warrant shall become and be void without further force or effect, and all
rights represented hereby shall cease and expire.

         2.2 Legend. Each certificate for Securities purchased under this
Warrant shall bear a legend as follows, unless such Securities have been
registered under the Securities Act of 1933, as amended ("Act"):

                                       1
<PAGE>

         "The securities represented by this certificate have not been
         registered under the Securities Act of 1933, as amended ("Act") or
         applicable state law. The securities may not be offered for sale, sold
         or otherwise transferred except pursuant to an effective registration
         statement under the Act, or pursuant to an exemption from registration
         under the Act and applicable state law."

         2.3      Conversion Right.

                  2.3.1 Determination of Amount. In lieu of the payment of the
Exercise Price in cash, the Holder shall have the right (but not the obligation)
to convert this Warrant, in whole or in part, into Common Stock ("Conversion
Right"), as follows: upon exercise of the Conversion Right, the Company shall
deliver to the Holder (without payment by the Holder of any of the Exercise
Price) that number of shares of Common Stock equal to the quotient obtained by
dividing (x) the "Value" (as defined below) of the portion of the Warrant being
converted at the time the Conversion Right is exercised by (y) the Market Price.
The "Value" of the portion of the Warrant being converted shall equal the
remainder derived from subtracting (a) the Exercise Price multiplied by the
number of shares of Common Stock being converted from (b) the Market Price of
the Common Stock multiplied by the number of shares of Common Stock being
converted. As used herein, the term "Market Price" at any date shall be deemed
to be the average of the last reported sale prices for the thirty (30) business
days immediately preceding the date on which the Conversion Right is exercised,
as officially reported by the principal 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 or if any such exchange
on which the Common Stock is listed is not its principal trading market, the
last reported sale price as furnished by the National Association of Securities
Dealers, Inc. ("NASD") through the Nasdaq National Market or SmallCap Market,
or, if applicable, the OTC Bulletin Board, or if the Common Stock is not listed
or admitted to trading on any of the foregoing markets, or similar organization,
as determined in good faith by resolution of the Board of Directors of the
Company.

                  2.3.2 Exercise of Conversion Right. The Conversion Right may
be exercised by the Holder on any business day on or after the Commencement Date
and not later than the Expiration Date by delivering the Warrant with a duly
executed exercise form attached hereto with the conversion section completed to
the Company, exercising the Conversion Right and specifying the total number of
shares of Common Stock the Holder will purchase pursuant to such conversion.

3.       Transfer.

         3.1 General Restrictions. The registered Holder of this Warrant, by its
acceptance hereof, agrees that it will not sell, transfer or assign or
hypothecate this Warrant to anyone except upon compliance with, or pursuant to
exemptions from, applicable securities laws. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached
hereto duly executed and completed, together with this Warrant and payment of
all transfer taxes, if any, payable in connection therewith. The Company shall
immediately transfer this Warrant on the books of the Company and shall execute
and deliver a new Warrant or Warrants of like tenor to the appropriate
assignee(s) expressly evidencing the right to purchase the aggregate number of
shares of Common Stock purchasable hereunder or such portion of such number as
shall be contemplated by any such assignment.

         3.2 Restrictions Imposed by the Securities Act. This Warrant and the
Securities underlying this Warrant shall not be transferred unless and until (i)
the Company has received the opinion of counsel for the Holder, in form and
substance reasonably satisfactory to the Company, that such securities may be
sold pursuant to an exemption from registration under the Act, and applicable
state law, or (ii) a registration statement relating to such Securities has been
filed by the Company and declared effective by the Securities and Exchange
Commission and compliance with applicable state law.

                                       2
<PAGE>

         3.3 Covenants of Holder. The registered Holder of this Warrant, by its
acceptance hereof, represents and covenants that this Warrant and the Common
Stock issuable upon exercise of this Warrant will be acquired for investment and
not with a view to the sale of distribution of any part thereof, and the Holder
has no present intention of selling or engaging in any public distribution of
the Warrant or the Common Stock issuable hereunder except pursuant to a
registration or exemption pursuant to the Act. The Holder understands (i) that
the Warrant and the Common Stock issuable upon exercise of this Warrant are not
registered under the Act or under applicable state securities laws on the ground
that the issuance contemplated by this Warrant will be exempt from the
registration and qualifications requirements thereof pursuant to exemptions
under the Act and any applicable state securities laws, and (ii) that the
Company's reliance on such exemptions are predicated on the representations set
forth in this Section 3.3. The Holder represents that it is an "accredited
investor" within the meaning of Rule 501 of Regulation D under the Act, as
presently in effect.

4.       New Warrants to be Issued.

         4.1 Partial Exercise or Transfer. Subject to the restrictions in
Section 3 hereof, this Warrant may be exercised or assigned in whole or in part.
In the event of the exercise or assignment hereof in part only, upon surrender
of this Warrant for cancellation, together with the duly executed exercise or
assignment form and funds (or conversion equivalent) sufficient to pay any
Exercise Price and/or transfer tax, the Company shall cause to be delivered to
the Holder without charge a new Warrant of like tenor to this Warrant in the
name of the Holder evidencing the right of the Holder to purchase the aggregate
number of shares of Common Stock and Warrants purchasable hereunder as to which
this Warrant has not been exercised or assigned.

         4.2 Lost Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and of reasonably satisfactory indemnification, the Company shall execute and
deliver a new Warrant of like tenor and date. Any such new Warrant executed and
delivered as a result of such loss, theft, mutilation or destruction shall
constitute a substitute contractual obligation on the part of the Company.

5.       Registration Rights.

         5.1      "Piggy-Back" Registration.

                  5.1.1 Grant of Right. The Holders of this Warrant shall have
the right to include all or any of the shares of Common Stock underlying this
Warrant (collectively, the "Registrable Securities") as part of any registration
of securities filed by the Company (other than in connection with a transaction
contemplated by Rule 145(a) promulgated under the Act or pursuant to Form S-8 or
any other form not available for registering the Registrable Securities for sale
to the public), even those registrations filed prior to the date hereof but
which have not yet been declared effective; provided, however, that if, in the
written opinion of the Company's managing underwriter or underwriters, if any,
for such offering (the "Underwriter"), the inclusion of the Registrable
Securities, when added to the securities being registered by the Company or the
selling stockholder(s), will exceed the maximum amount of the Company's
securities which can be marketed (i) at a price reasonably related to their then
current market value, or (ii) without adversely affecting the entire offering,
the Company shall, to the extent consented to by the Underwriter, nevertheless
register all or any portion of the Registrable Securities required to be so
registered but such Registrable Securities shall not be sold by the Holders
until 90 days after the registration statement for such offering has become
effective. The Company's obligation to register the Registrable Securities under
this Section 5.1 shall terminate at such time that all Registrable Securities
are permitted to be sold to the public within a three-month period under Rule
144, or any successor rule, promulgated under the Act.

                                       3
<PAGE>

                  5.1.2 Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, but the Holders shall pay
any and all underwriting commissions and the expenses of any legal counsel
selected by the Holders to represent them in connection with the sale of the
Registrable Securities. In the event of such a proposed registration, the
Company shall furnish the then Holders of outstanding Registrable Securities
with not less than ten days written notice prior to the proposed date of filing
of such registration statement. The holders of the Registrable Securities shall
exercise the "piggy-back" rights provided for herein by giving written notice,
within five days of the receipt of the Company's notice of its intention to file
a registration statement. The Company shall cause any registration statement
filed pursuant to the above "piggy-back" rights to remain effective until all
Registrable Securities thereunder have been sold, or are permitted to be sold to
the public within a three-month period under Rule 144, or any successor rule,
promulgated under the Act. Nothing contained in this Warrant shall be construed
as requiring any Holder to exercise this Warrant or any part thereof prior to
the initial filing of any registration statement or the effectiveness thereof.

         5.2      General Terms

                  5.2.1    Indemnification.

                           (a) The Company shall indemnify the Holder(s) of the
Registrable Securities to be sold pursuant to any registration statement
hereunder and any underwriter or person deemed to be an underwriter under the
Act and each person, if any, who controls such Holders or underwriters or
persons deemed to be underwriters within the meaning of Section 15 of the Act or
Section 20(a) of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), against all loss, claim, damage, expense or liability (including all
reasonable attorneys' fees and other expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which any
of them may become subject under the Act, the Exchange Act or otherwise, arising
from an untrue statement or alleged untrue statement of a material fact
contained in such registration statement, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading, provided, however, that the Company will
not be liable in any such case if and to the extent that any such loss, claim,
damage, expense or liability arises out of an untrue statement or omission made
in conformity with information furnished in writing, for specific inclusion in
such registration statement, by or on behalf of such Holders. The Holder(s) of
the Registrable Securities to be sold pursuant to such registration statement,
and their successors and assigns, shall severally, and not jointly, indemnify
the Company, and each person, if any, who controls the Company, against all
loss, claim, damage, expense or liability (including all reasonable attorneys'
fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which they may become subject under
the Act, the Exchange Act or otherwise, arising from information furnished by or
on behalf of such Holders, in writing, for specific inclusion in such
registration statement.

                           (b) If any action is brought against a party hereto,
("Indemnified Party") in respect of which indemnity may be sought against the
other party ("Indemnifying Party"), such Indemnified Party shall promptly notify
Indemnifying Party in writing of the institution of such action and Indemnifying
Party shall assume the defense of such action, including the employment and fees
of counsel reasonably satisfactory to the Indemnified Party. Such Indemnified
Party shall have the right to employ its or their own counsel in any such case,
but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the employment of such counsel shall have been
authorized in writing by Indemnifying Party in connection with the defense of
such action, or (ii) Indemnifying Party shall not have employed counsel to

                                       4
<PAGE>

defend such action, or (iii) such Indemnified Party shall have been advised by
counsel that there may be one or more legal defenses available to it which may
result in a conflict between the Indemnified Party and Indemnifying Party (in
which case Indemnifying Party shall not have the right to direct the defense of
such action on behalf of the Indemnified Party), in any of which events, the
reasonable fees and expenses of not more than one additional firm of attorneys
designated in writing by the Indemnified Party shall be borne by Indemnifying
Party. Notwithstanding anything to the contrary contained herein, if Indemnified
Party shall assume the defense of such action as provided above, Indemnifying
Party shall not be liable for any settlement of any such action effected without
its written consent.

                           (c) If the indemnification or reimbursement provided
for hereunder is finally judicially determined by a court of competent
jurisdiction to be unavailable to an Indemnified Party (other than as a
consequence of a final judicial determination of willful misconduct, bad faith
or gross negligence of such Indemnified Party), then Indemnifying Party agrees,
in lieu of indemnifying such Indemnified Party, to contribute to the amount paid
or payable by such Indemnified Party (i) in such proportion as is appropriate to
reflect the relative benefits received, or sought to be received, by
Indemnifying Party on the one hand and by such Indemnified Party on the other or
(ii) if (but only if) the allocation provided in clause (i) of this sentence is
not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in such clause (i) but also the
relative fault of Indemnifying Party and of such Indemnified Party; provided,
however, that in no event shall the aggregate amount contributed by a Holder
exceed the proceeds, if any, realized by such Holder as a result of the exercise
by him of the Warrants and the sale by him of the underlying shares of Common
Stock.

                           (d) The rights accorded to Indemnified Parties
hereunder shall be in addition to any rights that any Indemnified Party may have
at common law, by separate agreement or otherwise.

                  5.2.2 Exercise of Warrants. Nothing contained in this Warrant
shall be construed as requiring the Holder(s) to exercise their Warrants prior
to or after the initial filing of any registration statement or the
effectiveness thereof.

6.       Adjustments

         6.1 Adjustments to Exercise Price and Number of Securities. The
Exercise Price and the number of shares of Common Stock underlying this Warrant
shall be subject to adjustment from time to time as hereinafter set forth:

                  6.1.1 Stock Dividends - Recapitalization, Reclassification,
Split-Ups. If, after the date hereof, and subject to the provisions of Section
6.2 below, the number of outstanding shares of Common Stock is increased by a
stock dividend on the Common Stock payable in shares of Common Stock or by a
split-up, recapitalization or reclassification of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares
of Common Stock issuable on exercise of this Warrant shall be increased in
proportion to such increase in outstanding shares.

                  6.1.2 Aggregation of Shares. If after the date hereof, and
subject to the provisions of Section 6.2, the number of outstanding shares of
Common Stock is decreased by a consolidation, combination or reclassification of
shares of Common Stock or other similar event, then, upon the effective date
thereof, the number of shares of Common Stock issuable on exercise of this
Warrant shall be decreased in proportion to such decrease in outstanding shares.

                                       5
<PAGE>

                  6.1.3 Adjustments in Exercise Price. Whenever the number of
shares of Common Stock purchasable upon the exercise of this Warrant is
adjusted, as provided in this Section 6.1, the Exercise Price shall be adjusted
(to the nearest cent) by multiplying such Exercise Price immediately prior to
such adjustment by a fraction (x) the numerator of which shall be the number of
shares of Common Stock purchasable upon the exercise of this Warrant immediately
prior to such adjustment, and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

                  6.1.4 Replacement of Securities upon Reorganization, etc. In
case of any reclassification or reorganization of the outstanding shares of
Common Stock other than a change covered by Section 6.1.1 hereof or which solely
affects the par value of such shares of Common Stock, or in the case of any
merger or consolidation of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification or reorganization
of the outstanding shares of Common Stock), or in the case of any sale or
conveyance to another corporation or entity of the property of the Company as an
entirety or substantially as an entirety in connection with which the Company is
dissolved in such a way that holders of Common Stock shall be entitled to
receive stock, securities or property, the Holder of this Warrant shall have the
right thereafter (until the expiration of the right of exercise of this Warrant)
to receive upon the exercise hereof, for the same aggregate Exercise Price
payable hereunder immediately prior to such event, the kind and amount of shares
of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution
following any such sale or other transfer, by a holder of the number of shares
of Common Stock of the Company equal to the number of shares of Common Stock
obtainable upon exercise of this Warrant immediately prior to such event; and if
any reclassification also results in a change in shares of Common Stock covered
by Sections 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to
Sections 6.1.1, 6.1.2, 6.1.3 and this Section 6.1.4. The provisions of this
Section 6.1.4 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

                  6.1.5 Changes in Form of Warrant. This form of Warrant need
not be changed because of any change pursuant to this Section, and Warrants
issued after such change may state the same Exercise Price and the same number
of shares of Common Stock and Warrants as are stated in the Warrants initially
issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Warrants reflecting a required or permissive change shall not be deemed
to waive any rights to a prior adjustment or the computation thereof.

         6.2 Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
upon the exercise of this Warrant, nor shall it be required to issue scrip or
pay cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up to
the nearest whole number of shares of Common Stock or other securities,
properties or rights.

7.       Reservation and Listing. The Company shall at all times reserve and
keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon exercise of this Warrant, such number of shares of
Common Stock or other securities, properties or rights as shall be issuable upon
the exercise thereof. The Company covenants and agrees that, upon exercise of
the Warrants and payment of the Exercise Price therefor in accordance with the
terms of this Warrant, all shares of Common Stock and other securities issuable
upon such exercise shall be duly and validly issued, fully paid and
non-assessable and not subject to preemptive rights of any stockholder. As long
as the Warrants shall be outstanding, the Company shall use its best efforts to
cause all shares of Common Stock issuable upon exercise of the Warrants to be
listed (subject to official notice of issuance) on all securities exchanges (or,
if applicable on Nasdaq) on which the Common Stock is then listed and/or quoted.

                                       6
<PAGE>

8.       Certain Notice Requirements.

         8.1 Holder's Right to Receive Notice. Nothing herein shall be construed
as conferring upon the Holders the right to vote or consent or to receive notice
as a stockholder for the election of directors or any other matter, or as having
any rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the
Company shall give written notice of such event prior to or promptly after the
date fixed as a record date or the date of closing the transfer books for the
determination of the stockholders entitled to such dividend, distribution,
conversion or exchange of securities or subscription rights, or entitled to vote
on such proposed dissolution, liquidation, winding up or sale; provided that,
notwithstanding the foregoing, the Company shall give written notice of the
event prior to the above dates if the Company has made public disclosure of such
information. Such notice shall specify such record date or the date of the
closing of the transfer books, as the case may be.

         8.2 Events Requiring Notice. The Company shall be required to give the
notice described in this Section 8 upon one or more of the following events: (i)
if the Company shall take a record of the holders of its shares of Common Stock
for the purpose of entitling them to receive a stock dividend or distribution,
or (ii) the Company shall offer to all the holders of its Common Stock any
additional shares of capital stock of the Company or securities convertible into
or exchangeable for shares of capital stock of the Company, or any option, right
or warrant to subscribe therefor, or (iii) a merger or reorganization in which
the Company is not the surviving party, or (iv) a dissolution, liquidation or
winding up of the Company (other than in connection with a consolidation or
merger) or a sale of all or substantially all of its property, assets and
business.

         8.3 Notice of Change in Exercise Price. The Company shall, promptly
after an event requiring a change in the Exercise Price pursuant to Section 6
hereof, send notice to the Holders of such event and change ("Price Notice").
The Price Notice shall describe the event causing the change and the method of
calculating same and shall be certified as being true and accurate by the
Company's President and Chief Financial Officer.

         8.4 Transmittal of Notices. All notices, requests, consents and other
communications under this Warrant shall be in writing and shall be deemed to
have been duly made on the date of delivery if delivered personally or sent by
overnight courier, with acknowledgment of receipt by the party to which notice
is given, or on the fifth day after mailing if mailed to the party to whom
notice is to be given, by registered or certified mail, return receipt
requested, postage prepaid and properly addressed as follows: (i) if to the
registered Holder of this Warrant, to the address of such Holder as shown on the
books of the Company, or (ii) if to the Company, to its principal executive
office.

9.       Miscellaneous.

         9.1 Headings. The headings contained herein are for the sole purpose of
convenience of reference, and shall not in any way limit or affect the meaning
or interpretation of any of the terms or provisions of this Warrant.

         9.2 Entire Agreement. This Warrant (together with the other agreements
and documents being delivered pursuant to or in connection with this Warrant)
constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof, and supersedes all prior agreements and understandings of
the parties, oral and written, with respect to the subject matter hereof.

         9.3 Binding Effect. This Warrant shall inure solely to the benefit of
and shall be binding upon, the Holder and the Company and their respective
successors, legal representatives and assigns, and no other person shall have or
be construed to have any legal or equitable right, remedy or claim under or in
respect of or by virtue of this Warrant or any provisions herein contained.

                                       7
<PAGE>

         9.4 Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the law of the State of Delaware, without giving
effect to conflict of laws.

         9.5 Waiver, Etc. The failure of the Company or the Holder to at any
time enforce any of the provisions of this Warrant shall not be deemed or
construed to be a waiver of any such provision, nor to in any way affect the
validity of this Warrant or any provision hereof or the right of the Company or
any Holder to thereafter enforce each and every provision of this Warrant. No
waiver of any breach, non-compliance or non-fulfillment of any of the provisions
of this Warrant shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such
waiver is sought; and no waiver of any such breach, non-compliance or
non-fulfillment shall be construed or deemed to be a waiver of any other or
subsequent breach, non-compliance or non-fulfillment.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officer as of the 28th day of June, 2001.

                                            NEOWARE SYSTEMS, INC.

                                            By: /s/  Michael Kantrowitz
                                               --------------------------------
                                               Name: Michael Kantrowitz
                                               Title: President and CEO

                                       8
<PAGE>

Form to be used to exercise Warrant:

Neoware Systems, Inc.
400 Feheley Drive
King of Prussia, PA  19406

Date:  _____________________, 200__

                  The undersigned hereby elects irrevocably to exercise the
within Warrant and to purchase ________ shares of Common Stock of Neoware
Systems, Inc. and hereby makes payment of $____________ (at the rate of
$_________ per share of Common Stock) in payment of the Exercise Price pursuant
thereto. Please issue the Common Stock as to which this Warrant is exercised in
accordance with the instructions given below.

                                       or

                  The undersigned hereby elects irrevocably to convert its right
to purchase ____________ shares of Common Stock purchasable under the within
Warrant into __________ shares of Common Stock of Neoware Systems, Inc. (based
on a "Market Price" of $________ per share of Common Stock). Please issue the
Common Stock in accordance with the instructions given below.

                                           ------------------------------------
                                           Signature

-------------------------------
Signature Guaranteed

                  NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name     ________________________________________________________
                           (Print in Block Letters)

Address  ________________________________________________________

<PAGE>

Form to be used to assign Warrant:

                                   ASSIGNMENT

                  (To be executed by the registered Holder to effect a transfer
of the within Warrant):

                  FOR VALUE RECEIVED, ________________________________ does
hereby sell, assign and transfer unto _________________________________ the
right to purchase _____________________ shares of Common Stock of Neoware
Systems, Inc. ("Company") evidenced by the within Warrant and does hereby
authorize the Company to transfer such right on the books of the Company.

Dated:   ____________________, 200__

                                          -------------------------------------
                                          Signature

                  NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.<PAGE>   1
                                                                    EXHIBIT 10.1

                           BUSINESS SERVICES AGREEMENT

         This Business Services Agreement (the "Agreement") is entered into by
and between GTECH Corporation, with a principal business address of 55
Technology Way, West Greenwich, Rhode Island 02817 ("GTECH") and Donald
Stanford, an individual, with a residence address of 51 Dryden Avenue,
Pawtucket, Rhode Island 02860 (Consultant").

                                   WITNESSETH

         WHEREAS, GTECH and Consultant desire to enter into a Business Services
Agreement upon the terms and conditions set forth below;

         NOW, THEREFORE, in consideration of the mutual promises set forth
herein, the parties hereby agree as follows:

1.       RETENTION OF CONSULTANT.

1.1      GTECH hereby retains Consultant and Consultant hereby accepts such
         retainer, to provide business services as specified in Section 2 hereof
         (collectively, the "Services"). The Services shall be provided on a
         full-time basis. Accordingly, Consultant agrees to be available to
         perform an average of 100 hours of Services per month during the term
         hereof.

1.2      The Services will be provided by Consultant as directed by the Chief
         Executive Officer ("CEO") or his designee (each an "Authorized
         Representative"). GTECH will advise Consultant, orally or in writing,
         through one of its Authorized Representatives, of any additions or
         other changes to the list of Authorized Representatives. In addition,
         at GTECH's request through one of its Authorized Representatives,
         Consultant will provide the Services described herein on behalf of
         GTECH Holdings Corporation and one or more GTECH direct or indirect
         subsidiaries and affiliates (GTECH Holdings Corporation and such GTECH
         subsidiaries and affiliates hereinafter referred to individually as an
         "Affiliate", and collectively as "Affiliates"). Consultant agrees that
         the Services will be performed personally by Donald Stanford.

2.       SCOPE OF SERVICES.

2.1      The Services to be provided by Consultant hereunder at GTECH's request
         will include, but not be limited to, the following activities:

         (a)      Service as a GTECH Fellow, with a primary focus on the
                  technology systems new architecture, the technology strategy,
                  customer communication and promoting GTECH's technology
                  vision;

         (b)      Consultation and advice on the development of the technology
                  vision;
<PAGE>   2
         (c)      Identification of future opportunities in technology with the
                  potential to provide new growth opportunities for GTECH;

         (d)      Promotion of GTECH's industry leadership position and the
                  redefinition of GTECH's market dominance, at the request of
                  GTECH's CEO and Corporate Leadership Council ("CLC");

         (e)      other tasks and services normally performed by business
                  services consultants; and

         (f)      providing all services and assistance necessary and
                  appropriate to effectively perform the foregoing duties.

         The CEO and Consultant will mutually agree on the 2-3 primary areas of
         focus for each six (6) month period of this Agreement. To the extent
         Consultant requires the use of GTECH property to perform the Services
         hereunder, such as a laptop, cell phone and other items reasonably
         required, Consultant shall inform GTECH and GTECH, in its discretion,
         may provide Consultant with the use of such GTECH property without cost
         to Consultant.

3.       COMPENSATION.

3.1      In compensation for Consultant's Services hereunder, GTECH will pay the
         Consultant, in twelve equal installments, $350,000.00 per year for the
         duration of the Agreement, beginning on a date thirty (30) days from
         the commencement of services under this Agreement. Consultant must
         invoice GTECH at the end of each period to receive compensation.

3.2      Consultant shall be liable for all taxes arising with respect to the
         compensation received by him hereunder, including but not limited to
         federal and state income taxes. Consultant shall comply with all
         applicable laws and regulations in connection with payments received by
         him hereunder, including without limitation, submitting to the
         applicable authorities all documents and invoices as may be required to
         be submitted under applicable laws and regulations, and payment of all
         taxes owed on a timely basis.

4.       EXPENSES.

         GTECH agrees to reimburse Consultant for all reasonable and necessary
         expenses incurred by Consultant on GTECH's behalf and in furtherance of
         Consultant's Services hereunder, provided that all such expenses have
         been approved by an Authorized Representative prior to their being
         incurred. "Reasonable and necessary expenses" may include but are not
         limited to travel costs for trips which have been approved in advance
         by an Authorized Representative. Expenses shall be reimbursed at
         Consultant's cost. GTECH shall reimburse Consultant in accordance with
         GTECH policy as would be applicable to a senior executive of GTECH.
         Reimbursement of Consultant's expenses

                                     - 2 -
<PAGE>   3
         shall be made upon submission to GTECH of receipts or vouchers
         verifying disbursements in sufficient detail to identify the nature and
         amount of each expense incurred.

5.       NO PRESS RELEASES.

         Consultant will not issue any written or oral statement or other
         communication to any press or other media organization concerning GTECH
         or the Affiliates; the Services provided by Consultant on behalf of
         GTECH; the gaming, lottery or other industries in which GTECH and the
         Affiliates participate; or any other matter related to GTECH or its
         businesses, unless such communication is approved in advance by an
         Authorized Representative in writing.

6.       TERM.

         Subject to earlier termination pursuant to Section 7 below, the term of
         this Agreement will commence on the Termination Date of the Severance
         Agreement and Release being executed contemporaneously with this
         Agreement (the "Severance Agreement"), and will expire at 11:59 pm
         Eastern United States time on a day three (3) years thereafter. The
         term of this Agreement may be extended prior to its expiration by
         mutual written agreement of the parties for one or more successive one
         (1) year periods.

7.       TERMINATION.

         GTECH may terminate this Agreement immediately at any time in the event
         of the occurrence of any of the following: (i) conviction of Consultant
         of a felony or of any crime involving gambling, fraud, deceit, theft or
         dishonesty; (ii) Consultant's negligent performance of, inability or
         failure to perform his obligations hereunder; (iii) Consultant's
         insolvency, filing of a voluntary bankruptcy or failure to obtain the
         dismissal of an involuntary bankruptcy petition within thirty (30) days
         of its filing; (iv) Consultant's material breach of this Agreement; (v)
         the death, disability or other inability of Consultant to perform
         Services hereunder. A termination under this Section 7 will be
         effective upon the provision of written notice thereof; provided,
         however, that any termination under subsection (ii) or (v) (excluding
         the death of Consultant, which operates as an immediate termination
         without any continuing payment obligations under this Section 7) only
         within three (3) years of the commencement of this Agreement shall not
         relieve GTECH of the obligation to continue payments in accordance with
         Section 3.1 hereof for the balance of the initial term (three (3) years
         in total) remaining at the time of such termination.

8.       CONFIDENTIALITY.

         Consultant acknowledges a duty of confidentiality owed to GTECH and the
         Affiliates. Except as may be specifically authorized in advance by an
         Authorized Representative in writing, Consultant will not, at any time
         during or after the term of this Agreement, retain in writing, use,
         divulge, furnish or make accessible to anyone, or use for his own
         benefit

                                     - 3 -
<PAGE>   4
         or for the benefit of others, any information in any form obtained or
         received by him under or in connection with this Agreement, relating to
         GTECH, the Affiliates or to its or their actual or proposed technology,
         products, services, customers, markets, plans and strategies or
         business ("Confidential Information"), generally, except information
         which through no fault of Consultant becomes generally known in the
         lottery or gaming industries, information received by Consultant in
         good faith from a third party having a prior right to make such
         disclosure and information already known to Consultant at the time of
         its disclosure by GTECH ("Confidential Information"). Consultant
         acknowledges and agrees that all Confidential Information is and will
         remain the exclusive and valuable property of GTECH and that Consultant
         will not gain any interest in Confidential Information by reason of
         this Agreement. Upon termination of this Agreement or on earlier
         request by GTECH, Consultant will immediately return to GTECH any and
         all records containing Confidential Information. The terms of this
         Section 8 indefinitely survive the expiration or earlier termination of
         this Agreement.

9.       NONCOMPETITION.

         For so long as Consultant is retained hereunder, and for a period of
         six (6) years thereafter, and in addition to the non-competition
         obligations contained in the Severance Agreement, and Consultant will
         not, directly or indirectly or alone or in conjunction with others: (i)
         become engaged in, associated in any capacity with, provide services to
         (including but not limited to services which are in any way similar to
         the Services required to be provided hereunder), or acquire a financial
         interest in, any entity other than GTECH which is engaged in the
         lottery or gaming businesses, provided that Consultant's ownership as a
         passive investor of less than one percent (1%) of the issued and
         outstanding stock or equity, or $100,000 principal amount of any debt
         securities, of any corporation, partnership or entity engaged in the
         lottery and gaming business shall be permitted; or (ii) engage in or
         participate in any effort to disturb any business relationship between
         GTECH and its employees, suppliers, distributors, dealers, customers
         and other business associates. This Section 9 shall not supersede any
         noncompetition provision contained in any other prior agreements
         between Consultant and GTECH or Affiliates.

10.      REPRESENTATIONS AND WARRANTIES.

10.1     Consultant hereby represents and warrants that acceptance of his
         appointment hereunder does not breach, and the performance of his
         duties hereunder will not breach, any duty owed by Consultant to any
         other person, firm, corporation, partnership, association or other
         business entity. Consultant agrees that he will indemnify GTECH and
         hold it harmless from any claims, demands, costs, judgments,
         liabilities or losses incurred as the result of his breach of this
         warranty. The terms of this Section indefinitely survive the expiration
         or earlier termination of this Agreement.

10.2     Consultant represents and warrants that neither any part of the
         compensation or any other amount Consultant may receive hereunder, nor
         any other funds or things of value, have been or will be offered, paid
         or promised, nor will Consultant authorize any such offer,

                                     - 4 -
<PAGE>   5
         payment or promise, directly or indirectly, to any person who is an
         official, member, employee or agent of any government, including
         executive, legislative, administrative or judicial branch thereof
         ("Government") for the purpose of inducing such person to (i) use his
         influence with the Government or (ii) fail to perform his official
         functions, in either case to assist GTECH or Consultant in obtaining or
         retaining business for or with, or directing business to, any person or
         influencing legislation or regulations in any jurisdiction.

10.3     Consultant covenants and warrants that he will not make any political
         contributions on GTECH's or an Affiliate's behalf.

11.      STATUS OF PARTIES.

         Consultant and GTECH acknowledge that nothing in this Agreement will
         create the relationship of employer and employee, partners, principal
         and agent, or joint ventures between GTECH and Consultant. Consultant
         will be an independent contractor of GTECH, and will not have the
         authority to bind GTECH, nor will Consultant represent to any person
         that he has such authority.

12.      POLICIES AND PROCEDURES.

         Consultant agrees to fully comply at all times with the GTECH Holdings
         Corporation Conflict of Interest and Ethical Conduct Policies and
         Procedures, a copy of which is attached hereto as Exhibit A and made a
         part hereof, and any subsequent modifications thereto of which
         Consultant is notified. Upon execution of this Agreement, Consultant
         agrees to deliver to GTECH a completed Consultant Representation,
         Warranty and Annual Certification in the form of Exhibit B attached
         hereto.

13.      NO SUBCONTRACT OR ASSIGNMENT.

13.1     Consultant agrees that he will not subcontract or assign this
         Agreement, in whole or in part, to any other person or entity without
         the prior specific written approval of an Authorized Representative.

13.2     Consultant agrees to devote the entirety of his business time and
         attention, skill, undivided loyalty, and best efforts to the faithful
         performance of his duties hereunder. Notwithstanding the above and to
         the extent that the activities do not conflict with his duties to
         GTECH, Consultant shall not be precluded from performing unpaid work on
         behalf of charitable organizations or management of Consultant's
         personal assets.

14.      MISCELLANEOUS.

14.1     The validity, interpretation and enforcement of this Agreement will be
         governed by the laws of the State of Rhode Island. Consultant
         irrevocably consents to and expressly agrees that any disputes arising
         from this Agreement will be adjudicated in the courts of

                                     - 5 -
<PAGE>   6
         the State of Rhode Island and the federal courts therein, and the
         parties each agree to the exclusive jurisdiction of such courts.

14.2     This writing represents the entire agreement and understanding of the
         parties with respect to the subject matter hereof, and supersedes any
         prior written or oral agreements and understandings of the parties in
         respect thereto, but not including any prior written agreements between
         Consultant and GTECH or Affiliates relating to Consultant's employment.

14.3     In the event that any one or more provisions of this Agreement are held
         to be invalid, illegal or unenforceable in any respect, such
         invalidity, illegality or unenforceability will not affect the
         enforceability of any other provisions of this Agreement. If any one or
         more of the provisions contained herein are held to be excessively
         broad as to duration, scope, activity or subject, such provision(s)
         will be construed, by limiting or reducing the same, so as to be
         enforceable to the extent compatible with the applicable law.

14.4     This Agreement will not be modified except in writing signed by both
         parties hereto.

14.5     No waiver of any provisions of this Agreement will be effective unless
         agreed to in writing by the party against whom such waiver is sought to
         be enforced. Waiver of any default or breach hereunder will not
         constitute a waiver of any other default or breach whether similar or
         otherwise.

14.6     This Agreement will be binding upon and inure to the benefit of GTECH,
         its legal representatives and assigns, and upon Consultant, his legal
         representatives and permitted assigns.

14.7     This Agreement will be assignable by GTECH, in whole or in part, to any
         Affiliate thereof or to any successor to any portion of GTECH's
         business relating to this Agreement.

14.8     Any notice required to be sent by one party to the other in accordance
         with this Agreement must be in writing and delivered by hand or sent by
         certified mail, return receipt requested, to the address set forth
         above, or to such other address as may be specified by like notice from
         time to time.

14.9     This Agreement may be executed in one or more counterparts, each of
         which will be deemed an original and all of which, collectively, will
         constitute one and the same Agreement.

                                     - 6 -
<PAGE>   7
IN WITNESS WHEREOF, the parties hereto have, by their duly authorized
representatives, executed this Agreement.

GTECH CORPORATION                             DONALD STANFORD

By:  /s/ Howard S. Cohen                      By:  /s/ Donald L. Stanford
    ------------------------------                -----------------------------
       Howard S. Cohen
       Chief Executive Officer                Date:  May         24        2001
                                                   ----------------------------
                                                    (mo.)      (day)      (yr.)
Date:  May         21        2001
     ----------------------------
      (mo.)      (day)      (yr.)

                                     - 7 -
<PAGE>   8
                                                                       Exhibit A

                   GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                             POLICIES AND PROCEDURES

                    CONFLICT OF INTEREST AND ETHICAL CONDUCT

I.       PURPOSE

         The purpose of this document is to set forth GTECH's Policies and
Procedures respecting conflicts of interest and ethical conduct.

II.      IN GENERAL.

         (a)      APPLICATION. These Policies and Procedures apply to all
                  Employees and, when acting for an on behalf of GTECH, all
                  Consultants.

         (b)      DEFINITIONS. For purposes of these Policies and Procedures,
                  the following terms shall have the respective meanings set
                  forth below:

                  (i)      "CONSULTANT" shall include all non-Employees of GTECH
                           providing consulting or advisory services to GTECH.

                  (ii)     "EMPLOYEE" shall include all individuals who are
                           employees of GTECH.

                  (iii)    "GTECH" shall mean GTECH Holdings Corporation and any
                           and all of its direct or indirect subsidiaries.

III.     CONFLICT OF INTEREST

         (a)      GENERAL POLICY. It is GTECH's policy that all decisions made
                  by Employees and Consultants in the course of their employment
                  or consulting agreements be made solely on the basis of the
                  best interests of GTECH. Employees and Consultants must use
                  their best efforts to ascertain that decisions which they are
                  called upon to make are in the best interests of GTECH and
                  must avoid any association or relationship which would
                  influence (or give the appearance of influencing) a decision
                  to be made on other than the basis of GTECH's best interests.

         (b)      SPECIFIC POLICIES. Specific policies are as follows:

                  (i)      COMPETITIVE BEHAVIOR. No Employee or Consultant may
                           engage in any behavior which competes with GTECH in
                           any manner whatsoever. No Employee or Consultant may
                           have any direct or indirect interest in (or serve as
                           an employee, director, officer, consultant or agent
                           to) any
<PAGE>   9
                           corporation or other entity which competes or seeks
                           to compete with GTECH in any business or product
                           line. Nor shall any Employee or Consultant directly
                           or indirectly assist any person or entity to compete
                           with GTECH. (An exception is that Employees or
                           Consultants may have an investment interest in the
                           publicly traded securities of a GTECH competitor
                           provided that such investment (when aggregated with
                           all holdings of such Employee's household or
                           immediate family) is less than 1% of the issued and
                           outstanding securities of such competitor.)
                           Consultants shall disclose to GTECH all employment,
                           management participation or directorships with any
                           organization other than GTECH. If such employment,
                           management participation or directorship is performed
                           at the direction of or on behalf of Consultant by
                           Consultant's employees, Consultant shall be
                           responsible for promptly making said disclosure on
                           behalf of said employees.

                  (ii)     INTERESTED TRANSACTIONS. No Employee or Consultant
                           may work on, or direct the work of others on, any
                           transaction involving GTECH in which he has any
                           personal or other financial interest other than that
                           of an Employee or Consultant and/or shareholder of
                           GTECH, provided however, that: (A) upon full
                           disclosure of the nature and extent of such interest,
                           GTECH may approve exceptions to this rule in
                           circumstances where the best interests of GTECH will
                           not be adversely affected, and (B) Employees and
                           Consultants may have an investment interest in the
                           publicly traded securities of an entity with which
                           GTECH is transacting business provided that such
                           investment (when aggregated with all holdings of such
                           Employee's household or immediate family) is less
                           than 1% of the issued and outstanding securities of
                           such entity. Accordingly, subject to the above,
                           Employees and Consultants may not receive a finder's
                           fee, commission or other compensation from any third
                           party for any transaction involving GTECH.

                  (iii)    BUSINESS OPPORTUNITIES. No Employee or Consultant may
                           take personal advantage of a business opportunity
                           that is developed while in the course of such
                           individual's employment or that is otherwise
                           rightfully an opportunity that is GTECH's.

                  (iv)     CONFIDENTIALITY. Consultants and Employees must
                           maintain all non-public information concerning GTECH
                           (and any customer, supplier or other entity with whom
                           GTECH does business or with whom GTECH is considering
                           entering into a transaction) in confidence and must
                           not use such information for their own benefit or to
                           the detriment of GTECH's best interests or disclose
                           it to others, directly or indirectly, except as
                           required in the performance of their regular duties
                           for GTECH.

                                     - 2 -
<PAGE>   10
                  (v)      GAMES. No Employee or Consultant shall during the
                           period of employment or consulting engagement,
                           participate in any lottery game marketed or provided
                           by GTECH and all such persons are prohibited from
                           claiming or receiving any benefit as a result of such
                           prohibited participation. Employees and Consultants
                           are to advise their household and immediate family
                           members that they may be similarly restricted by
                           state laws, regulations and our contracts in the
                           various jurisdictions. Each Employee and Consultant
                           shall do all things necessary to comply with all
                           applicable laws and contracts between GTECH and
                           others pertaining to any said Lottery.

IV.      ETHICAL CONDUCT

         (a)      GENERAL POLICY. It is GTECH's policy always to conduct its
                  activities in full compliance with all applicable laws. The
                  use of GTECH funds or assets for any unlawful or unethical
                  purposes is strictly prohibited.

         (b)      SPECIFIC POLICIES. Specific policies are as follows:

                  (i)      IMPROPER PAYMENTS. No Employee or Consultant shall
                           make or accept (or shall consent to the making or the
                           acceptance of) any improper payment of money or
                           property whatsoever in connection with his employment
                           or consultancy. (See the GTECH Government Relations
                           Policies and Procedures for application of this
                           policy in the context of Government Officials.)

                  (ii)     GIFTS AND FAVORS. No Employee or Consultant shall
                           give or accept any significant gift or favor to or
                           from any person or organization which is doing
                           business with GTECH and under no circumstances may it
                           exceed $100 in fair market value unless approved in
                           writing by the Vice President of Compliance. Whether
                           a gift or favor is significant depends on whether or
                           not it represents more than token value to the
                           intended recipient and whether or not it might
                           reasonably be expected to place the intended
                           recipient under some obligation to the donor. Any
                           doubts about the significance of a gift or favor
                           should be resolved by not giving or accepting same.
                           (Gifts to and entertainment of Government Officials
                           may only be made if and to the extent permitted by
                           the GTECH Government Relations Policies and
                           Procedures.)

                  (iii)    UNAUTHORIZED USE OF ASSETS. No Employee or Consultant
                           shall make any unauthorized use of GTECH's funds,
                           assets, facilities, or personnel.

                  (iv)     IMPROPER ACCOUNTING PRACTICES.

                                     - 3 -
<PAGE>   11
                           (a)      No Employee or Consultant shall establish or
                                    maintain any undisclosed or unrecorded fund
                                    or asset for any purpose whatsoever. No
                                    false, incomplete or misleading records
                                    shall be made, and no undisclosed or
                                    unrecorded corporate funds shall be
                                    established for any purpose, nor should
                                    GTECH funds be placed in any personal or
                                    non-corporate account.

                           (b)      No Employee or Consultant shall make or
                                    cause to be made any improper or fraudulent
                                    entry in the books or records of GTECH.

                           (c)      No Employee or Consultant shall make or
                                    cause to be made any payment on behalf of
                                    GTECH with the intention or understanding
                                    that any part of such payment is to be used
                                    for any purpose other than that disclosed by
                                    the documents supporting the payment.

                  (v)      BIDDING COLLUSION. No Employee or Consultant shall
                           assist or cause GTECH to collude with any third party
                           (whether as to bidding, price or otherwise) with
                           respect to any advertised, competitive, or other
                           procurement or other business opportunity, nor shall
                           any Employee or Consultant assist or cause any third
                           party to so collude against GTECH.

V.       APPLICATION OF THE POLICIES.

         The Specific Policies set forth in Section III (b) and Section IV (b)
are not intended to be exhaustive and in any given situation an individual may
be required to exercise his or her best judgment as to whether he or she is
acting in compliance with the General Policies set forth as Section III (a) and
Section IV (a) above. Questions regarding interpretation of the General Policies
or their application to particular situations should be directed to the Legal
Department.

VI.      COMPLIANCE AND DISCIPLINE.

         At least annually, each employee and Consultant (and, if a Consultant
is a corporation, partnership or other entity, each individual employed by the
Consultant that is principally responsible for performing or overseeing the
Consultant's work) shall be required to execute and return to GTECH in
accordance with its terms an Annual Certification in the form of Exhibit A
hereto (or in such other form as may be adopted by GTECH in the future) by which
individual shall certify his or her continued compliance with these Policies and
Procedures (or shall set forth how he or she is not in compliance).

         Employees and Consultants are obliged to report all violations of these
Polices and Procedures of which they become aware to the Vice President,
Compliance. In order to encourage Employees and Consultants to satisfy their
obligations in this regard, it is imperative

                                     - 4 -
<PAGE>   12
that they be assured that they may raise concerns and report misconduct without
fear of retribution. Accordingly, no supervisor or other Employee is permitted,
directly or indirectly, to retaliate, threaten to retaliate or encourage others
to retaliate, against any Employee or Consultant for reporting a violation of
these Policies and Procedures to the Vice President, Compliance. Upon receiving
a report alleging a violation of these Policies and Procedures, the Vice
President, Compliance shall conduct such investigations as may be necessary or
appropriate to ascertain the facts surrounding the alleged violation and shall
advise the Legal Department accordingly.

VII.     ADDITIONAL INFORMATION.

         Please contact the Vice President, Compliance or the Legal Department
for additional information and/or clarification respecting any of the Policies
and Procedures set forth above or their application to any specific
circumstance.

                                     - 5 -
<PAGE>   13
                                                                       Exhibit B

                      GTECH GOVERNMENT RELATIONS CONSULTANT
                REPRESENTATION, WARRANTY AND ANNUAL CERTIFICATION

A.       Representation and Warranty.

I represent and warrant that the following statements are accurate:

1. I am not and am not related (immediate family) to a Government Official (as
defined in the Policies and Procedures) nor is any member or officer of my firm.

2. I am not subject to the influence of any Government Official or any official
or employee of a political party. Neither I nor any member or officer of my firm
is an elected official of a political party.

3. I hold no directorship, officership or other position (including registered
lobbyist) with any corporation or other organization (publicly or privately
owned, not-for-profit, governmental, and regulatory), except those as to which I
have notified GTECH in writing.

4. Neither I nor any member or officer of my firm has breached any obligation of
confidentiality in the discharge of responsibilities to GTECH. Neither I, nor
any member of my immediate family has any financial interest, direct or
indirect, in any entity with which GTECH does business.

5. I or my firm have retained the entire amount of all fees paid to me by GTECH.
Neither I nor any member or officer of my firm has made no payment or
contribution of any kind in violation of the Policies and Procedures.

6. Neither I nor any member or officer of my firm has entered into any agreement
or understanding with any Government Official or entity with which GTECH
transacts business to receive any future benefit, financial or otherwise, or
political appointment.

7. To the best of my knowledge: (a) I have advised GTECH of all activities which
I have undertaken or of which I am aware which would impose upon GTECH any
requirement to report or to file with any jurisdiction, and (b) it is not a
violation of any applicable law for me or my firm to accept any fee paid under
the Consulting Agreement.

8. I have been provided with and fully understand the Policies and Procedures
applicable to me as a Government Relations Consultant.

9. I and my firm are in full compliance with all reporting and other legal
requirements relating to services provided to GTECH and I have provided copies
to GTECH of all reports, registrations and other filings required of me or my
firm in such connection.
<PAGE>   14
B.       Certification.

I HEREBY CERTIFY THAT, EXCEPT AS SET FORTH ON AN ATTACHED STATEMENT AS INDICATED
BELOW, IF ANY:

(a)      I am and have been, at all times since the effective date of the
         Business Services Agreement between myself and GTECH Corporation (the
         "Consulting Agreement"), familiar with and in full compliance with the
         "GTECH Holdings Corporation and Subsidiaries Policies and Procedures -
         Government Relations" and the "GTECH Conflict of Interest and Ethical
         Conduct Policy" (collectively, as amended, the "Policies and
         Procedures"),

(b)      the representations and warranties set forth in Section A of this
         Exhibit B are true, complete and correct as of the date hereof and have
         been true, complete and correct at all times since the effective date
         of the Consulting Agreement, and

(c)      I am not on the date hereof, nor have I ever been, in breach under the
         Consulting Agreement.

I agree to immediately notify the Vice President of Compliance at GTECH's
Corporate Headquarters, currently at 55 Technology Way, West Greenwich, Rhode
Island 02817, of any change in circumstances that would make the foregoing
certifications untrue, inaccurate, or incomplete.

[  ]     I have attached a statement.

[  ]     I have not attached a statement.

Consultant:

 /s/ Donald L. Stanford
------------------------------------
Donald Stanford

                                     - 2 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]