ROYAL BANK OF CANADA-AMENDMENT TO CREDIT FACILITY LETTER AGMT.

                                                                   Exhibit 10.12
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                                                            Royal Bank of Canada
                                                       Information Technology-GTA
                                          260 East Beaver Creek Road - 2nd Floor
                                                      Richmond Hill, ON, L4B 3M3
                                                               Tel.: 416-955-2139
                                                               Fax: 416-955-2562


RBC



                               [GRAPHIC OMITED]


November 27, 2006

Private and Confidential


SENTRY   TECHNOLOGY   CANADA   INC.
37   Voyager   Court   North
Toronto,   ON
M9W   4Y2

We   refer   to   the agreement dated May 15, 2006 between SENTRY TECHNOLOGY CANADA
INC.,   as the Borrower, and Royal Bank of Canada, as the Bank, (the "Agreement")
and in particular to the Credit Facility and Financial Covenants sections of the
Agreement.

All   capitalized   terms   not   otherwise   defined   herein   shall have the meaning
ascribed   to   them   in   the   Agreement.

The   Agreement   is   amended   as   follows:

1.    Under the   Credit   Facilities   section,   Facility   #   1,   the first line is
     amended   by   deleting   the   "term facility" and by substituting the "demand
     facility