AMENDMENT

                                                       EXHIBIT 10.16

                                    AMENDMENT

     Whereas, Restoration Management Company, LLC ("Restoration") entered into
an agreement with Sentry Technology Corporation (the "Company") as of October
15, 1999 pursuant to which Restoration agreed to provide certain operational and
financial consulting services to the Company (the "Agreement"); and

     WHEREAS, certain options issuable to Restoration at the time that the
Agreement was entered into were referred to in the Agreement as "incentive stock
options"; and

     WHEREAS, the Company and Restoration wish to amend the Agreement in
accordance with the terms hereof;

     NOW, THEREFORE, the undersigned hereby amend the Agreement as follows:

     1. The words "incentive stock options" in the first sentence of Section
5(v) of the Agreement are hereby deleted and in their place is substituted the
words "non-qualified stock options".

     2. The word "Restoration" in the first sentence of Section 5(v) of the
Agreement is hereby deleted and in its place is substituted the word "Xxxxxxx
X.X. Xxxxxxxxxx".

     3. The following sentence shall be inserted immediately following the first
sentence of Section 5(v) of the Agreement:

         Such options may be assigned or transferred only to an
         employee or consultant of the Company or such employee or
         consultant's family members as defined in Section A(1)(a)(5)
         of the General Instructions to Form S-8 of the Securities Act
         of 1933.

     4. Section 5 of the Agreement shall be amended to add a subsection (viii)
which shall state as follows:

        The Company shall prepare and file with the Securities and
        Exchange Commission, within 20 days following the filing of
        its annual report on Form 10K for the year ended December 31,
        1999, a registration statement on Form S-8 including a reoffer
        prospectus with respect to the shares of common stock issuable
        upon exercise of the options issued pursuant to the Agreement
        and shall use its best efforts to cause such registration
        statement to become effective and remain effective during the
        term of such options plus, if such options are exercised in
        whole or in part, for one year after such exercise.





         IN WITNESS WHEREOF, the undersigned have signed this Amendment as of
the 9th day of November, 1999.


                                            SENTRY TECHNOLOGY CORPORATION


                                            By: /s/ Xxxxxxx X. Xxxxxxxx
                                               ---------------------------
                                                  Xxxxxxx X. Xxxxxxxx
                                                  Chairman of the Board

                                            RESTORATION MANAGEMENT COMPANY, LLC

                                            By: /s/ Xxxxxxx X. X. Xxxxxxxxxx
                                               ------------------------------
                                                   Xxxxxxx X.X. Xxxxxxxxxx
                                                   Managing Director