

                                   EXHIBIT 4.8

THESE  WARRANTS  AND ANY  SHARES OF CLASS A COMMON  STOCK  ISSUABLE  UPON  THEIR
EXERCISE HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE  "ACT").  THESE  WARRANTS ARE NOT  TRANSFERABLE,  AND ANY SHARES OF CLASS A
COMMON STOCK  ISSUABLE UPON THEIR  EXERCISE MAY NOT BE  TRANSFERRED  UNTIL (1) A
REGISTRATION  STATEMENT  UNDER THE ACT SHALL HAVE BECOME  EFFECTIVE WITH RESPECT
THERETO,  OR (2)  RECEIPT BY THE  ISSUER OF AN  OPINION  OF  COUNSEL  REASONABLY
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT REGISTRATION  UNDER THE ACT IS NOT
REQUIRED  IN  CONNECTION  WITH SUCH  PROPOSED  TRANSFER  AND THAT SUCH  PROPOSED
TRANSFER IS NOT IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS.


                                 CLASS J WARRANT
                        TO PURCHASE CLASS A COMMON STOCK

Warrant No. 1

     This  Warrant  issued  by  ARC  Capital,  a  California   corporation  (the
"Company"),  as of  October  1, 1996,  entitles  H&H  Beheer BV (the  registered
"Holder") to purchase 300,000 shares of the Company's Class A Common Stock at an
initial purchase price of $2.025 per share (the "Purchase Price").

     This Class J Warrant was issued in connection  with the execution of a Deed
of Compromise dated September 30, 1996,  among SRC VISION,  Inc., a wholly-owned
subsidiary  of the  Company,  H&H  Beheer  BV,  Hamm & Hak  Engineering,  BV and
Foodectronics BV ("Deed of Compromise").

     SECTION 1. Definitions.  As used herein, the following terms shall have the
following meanings, unless the context shall otherwise require:

     (a)  "Common  Stock"  shall mean the Class A Common  Stock of the  Company,
whether now or hereafter authorized.

     (b) "Corporate Office" shall mean the office of the Company at which at any
particular time its principal  business shall be  administered,  which office is
located  at the date  hereof at 2067  Commerce  Drive,  Medford,  Oregon  97504,
Attention: President.

     (c)  "Exercise  Date" shall mean the date on which the  Company  shall have
received both (a) the Warrant,  with an exercise form  acceptable to the Company
and  duly  executed  by the  Registered  Holder  thereof  or his  attorney  duly
authorized in writing, and (b) the Purchase Price.

     (d) "Initial Warrant Exercise Date" shall mean October 1, 1996.

     (e) "Purchase  Price" shall mean the purchase price to be paid per share of
Common Stock upon exercise of each Warrant in accordance  with the terms hereof,
which price shall be $2.025, subject to adjustment from time to time pursuant to
the provisions of Section 7 hereof, and subject to the Company's right to reduce
the Purchase Price upon notice to all Registered Holders. The Purchase Price may
be paid in whole or in part either (i) in cash, or by official bank or certified
check made  payable to the  Company,  of an amount in lawful money of the United
States of America equal to the applicable Purchase Price, or (ii) by delivery of
Common  Stock in  transferable  form,  such  Common  Stock to be valued for such
purpose at its fair market value on the Exercise  Date (a "Cashless  Exercise").
For purposes of a Cashless Exercise, the fair market value shall be deemed to be
the last sale price of the Common Stock on the business day prior to the date of
the Cashless Exercise or, in case no such reported sales take place on such day,
the average of the last  reported  bid and asked  prices of the Common  Stock on
such day, in either case on the principal national  securities exchange on which
the Common Stock is admitted to trading or listed,  or if not listed or admitted
to trading on any such exchange,  the average of the last reported bid and asked
prices of the Common Stock on such day as reported by NASDAQ,  or other  similar
organization  if NASDAQ is no longer  reporting such  information,  or if not so
available,  the fair market price of the Common Stock as determined by the Board
of Directors.

     (f) "Registered Holders" shall mean the persons in whose names the Warrants
shall be registered on the books maintained by the Company.

     (g)  "Warrant  Expiration  Date"  shall  mean the  earlier of (i) 5:00 P.M.
(Oregon time) on September 30, 1999, except that if such date shall in the State
of Oregon be a holiday or a day on which  banks are  authorized  to close,  then
5:00 P.M.  (Oregon time) on the next  following day which in the State of Oregon
is not a holiday or a day on which banks are  authorized  to close,  or (ii) the
date of a breach  of the  Deed of  Compromise.  Upon  notice  to all  Registered
Holders the Company shall have the right to extend the Warrant Expiration Date.

     SECTION 2. Warrants and Issuance of Warrant Agreements.

     (a) This Warrant  initially  entitles the Registered  Holder to purchase an
aggregate  of 300,000  shares of Common  Stock  upon the  exercise  thereof,  in
accordance  with the terms hereof,  subject to  modification  and  adjustment as
provided in Section 7.

     (b) From time to time, up to the Warrant Expiration Date, the Company shall
execute and  deliver  Warrants in required  whole  number  denominations  to the
persons  entitled  thereto in connection with any exchange  permitted under this
Warrant;  provided that no Warrant  shall be issued  except (i) those  initially
issued  hereunder;  (ii) those issued on or after the Initial  Warrant  Exercise
Date,  upon the partial  exercise of this Warrant,  to evidence any  unexercised
Warrants held by the exercising  Registered Holder;  (iii) those issued upon any
exchange  pursuant  to  Section  5; (iv) those  issued in  replacement  of lost,
stolen,  destroyed or mutilated  Warrants  pursuant to Section 6; and (v) at the
option  of the  Company,  in  such  form  as may be  approved  by its  Board  of
Directors,  to reflect (a) any adjustment or change in the Purchase Price or the
number of shares of Common Stock  purchasable upon exercise of the Warrants made
pursuant to Section 7 hereof, and (b) other modifications approved by Registered
Holders.

     SECTION 3. Form and Execution of Warrants; Exercise of Warrants.

     (a) Warrants  shall be executed on behalf of the Company by its Chairman of
the Board,  President,  any Vice President or Chief Financial  Officer by manual
signatures.  In case any officer of the Company who shall have signed any of the
Warrants  shall  cease to be such  officer  of the  Company  before  the date of
issuance of the  Warrants  and issue and  delivery  thereof,  such  Warrants may
nevertheless  be issued and  delivered  with the same force and effect as though
the person who signed  such  Warrants  had not ceased to be such  officer of the
Company. After execution by the Company, each Warrant shall then be delivered to
the Registered Holder.

     (b) Each Warrant may be exercised by the  Registered  Holder thereof at any
time on or after the Initial  Warrant  Exercise  Date, but not after the Warrant
Expiration  Date, upon the terms and subject to the conditions set forth herein.
A Warrant shall be deemed to have been exercised  immediately prior to the close
of  business  on the  Exercise  Date and the  person  entitled  to  receive  the
securities  deliverable  upon such exercise shall be treated for all purposes as
the holder upon  exercise  thereof as of the close of  business on the  Exercise
Date.  As soon as  practicable  on or after the Exercise  Date the Company shall
deposit the proceeds received from the exercise of a Warrant, and promptly after
clearance of checks  received in payment of the Purchase  Price pursuant to such
Warrants,  cause to be issued and delivered by the Company's  transfer agent, to
the  person  or  persons   entitled  to  receive  the  same,  a  certificate  or
certificates  for the securities  deliverable upon such exercise (plus a Warrant
for any remaining unexercised Warrants of the Registered Holder).

     SECTION 4. Reservation of Shares; Payment of Taxes; etc.

     (a) The  Company  covenants  that it will at all  times  reserve  and  keep
available out of its  authorized  Common Stock,  solely for the purpose of issue
upon  exercise of the  Warrants,  such number of shares of Common Stock as shall
then be issuable  upon the  exercise of all  outstanding  Warrants.  The Company
covenants  that all shares of Common Stock which shall be issuable upon exercise
of the  Warrants  and  payment  of the  Purchase  Price  shall,  at the  time of
delivery,  be duly and validly issued, fully paid,  non-assessable and free from
all taxes, liens and charges with respect to the issue thereof (other than those
which the Company shall promptly pay or discharge).

     (b) The Company will use reasonable efforts to obtain appropriate approvals
or  registrations  under state "blue sky"  securities  laws with  respect to the
exercise of the  Warrants;  provided,  however,  that the  Company  shall not be
obligated  to file any  general  consent  to  service of process or qualify as a
foreign  corporation in any  jurisdiction.  With respect to any such  securities
laws,  however,  Warrants  may not be  exercised  by, or shares of Common  Stock
issued to, any  Registered  Holder in any state in which such exercise  would be
unlawful.

     (c) The Company shall pay all documentary, stamp or similar taxes and other
governmental  charges  that may be imposed  with  respect to the issuance of the
Warrants,  or the  issuance,  or  delivery  of any shares  upon  exercise of the
Warrants;  provided,  however,  that if the  shares  of  Common  Stock are to be
delivered in a name other than the name of the Registered  Holder of the Warrant
being  exercised,  then  no  such  delivery  shall  be made  unless  the  person
requesting  the same has paid to the  Company  the amount of  transfer  taxes or
charges incident thereto, if any.

     SECTION 5. Exchange of Warrant.

     (a) This Warrant may be exchanged for other Warrants  representing an equal
aggregate number of Warrants of the same type. Warrants to be exchanged shall be
surrendered to the Company at its Corporate Office, and upon satisfaction of the
terms and provisions  hereof,  the Company shall  execute,  issue and deliver in
exchange therefor the Warrant or Warrants which the Registered Holder making the
exchange shall be entitled to receive.

     (b) The Company  shall keep at its office books in which it shall  register
the Warrants in accordance with its regular practice.

     (c) The Company may require  payment by such holder of a sum  sufficient to
cover any tax or other  governmental  charge  that may be imposed in  connection
therewith.

     (d) All  Warrants  surrendered  for  exercise  or for  exchange  in case of
mutilated  Warrants  shall be promptly  canceled  by the Company and  thereafter
retained by the Company until the Warrant Expiration Date, or such other time as
the Company shall determine solely within its discretion.

     SECTION 6. Loss or  Mutilation.  Upon  receipt by the  Company of  evidence
satisfactory  to  them of the  ownership  of and  loss,  theft,  destruction  or
mutilation  of any  Warrant  and (in case of  loss,  theft  or  destruction)  of
indemnity satisfactory to them, and (in case of loss, theft or destruction) upon
surrender and cancellation thereof, the Company shall execute and deliver to the
Registered  Holder in lieu thereof a new Warrant of like tenor  representing  an
equal aggregate  number of Warrants.  Applicants for a substitute  Warrant shall
comply  with such other  reasonable  regulations  and pay such other  reasonable
charges as the Company may prescribe or require.

     SECTION  7.  Adjustment  of  Exercise  Price and Number of Shares of Common
Stock or Warrants.

     (a) Subject to Section (f) and the  exceptions  referred to in Section 7(e)
below,  in the event the Company  shall,  at any time or from time to time after
the date  hereof,  subdivide or combine the  outstanding  shares of Common Stock
into a greater or lesser number of shares (any such  subdivision  or combination
being  herein  called a "Change of  Shares"),  then,  and  thereafter  upon each
further Change of Shares, the Purchase Price in effect immediately prior to such
Change of Shares shall be changed to a price (including any applicable  fraction
of a cent)  determined by multiplying  the Purchase Price in effect  immediately
prior  thereto by a  fraction,  the  numerator  of which shall be the sum of the
number  of  shares  of  Common  Stock  outstanding  immediately  prior  to  such
subdivision or combination, and the denominator of which shall be the sum of the
number of shares of Common Stock outstanding  immediately after such subdivision
or  combination.  Such  adjustment  shall  be made  successively  whenever  such
subdivision or combination is made.

     Upon each  adjustment of the Purchase Price pursuant to this Section 7, the
total  number of shares of Common  Stock  purchasable  upon the exercise of each
Warrant shall  (subject to the  provisions  contained in Section 7(b) hereof) be
such  number of  shares  of  Common  Stock  purchasable  at the  Purchase  Price
immediately prior to such adjustment multiplied by a fraction,  the numerator of
which shall be the Purchase Price in effect immediately prior to such adjustment
and the  denominator of which shall be the Purchase Price in effect  immediately
after such adjustment.

     (b) The  Company  may elect,  upon any  adjustment  of the  Purchase  Price
     hereunder,  to adjust the number of  Warrants  outstanding,  in lieu of the
adjustment in the number of shares of Common Stock purchasable upon the exercise
of each Warrant as hereinabove  provided, so that each Warrant outstanding after
such adjustment shall represent the right to purchase one share of Common Stock.
Each Warrant held of record prior to such  adjustment  of the number of Warrants
shall become that number of Warrants determined by multiplying the number one by
a  fraction,  the  numerator  of which  shall be the  Purchase  Price in  effect
immediately  prior to such  adjustment and the denominator of which shall be the
Purchase Price in effect immediately after such adjustment. Upon each adjustment
of the number of Warrants  pursuant to this  Section 7, the  Company  shall,  as
promptly as practicable,  cause to be distributed to the Registered  Holder of a
Warrant on the date of such adjustment a Warrant evidencing,  subject to Section
8 hereof,  the  number of  additional  Warrants  to which such  Holder  shall be
entitled as a result of such adjustment or, at the option of the Company,  cause
to be distributed to such Holder in substitution and replacement for the Warrant
held by him prior to the date of  adjustment  (and upon  surrender  thereof,  if
required  by the  Company) a new  Warrant  evidencing  the number of Warrants to
which such Holder shall be entitled after such  adjustment.

     (c) Irrespective of any adjustments or changes in the Purchase Price or the
number of shares of Common Stock purchasable upon exercise of the Warrants,  the
Warrant or Warrants  theretofore and thereafter issued shall, unless the Company
shall  exercise  its option to issue a new  Warrant  pursuant  to  Section  7(b)
hereof,  continue  to  express  the  Purchase  Price per share and the number of
shares purchasable  thereunder as they were expressed in the Warrant when it was
originally issued.

     (d) After each adjustment of the Purchase Price pursuant to this Section 7,
the Company will promptly prepare a certificate signed by the President,  and by
the Chief Financial Officer, Controller,  Treasurer or an Assistant Treasurer or
the Secretary or an Assistant  Secretary,  of the Company setting forth: (i) the
Purchase  Price as so  adjusted,  (ii) the  number of  shares  of  Common  Stock
purchasable  upon  exercise of each Warrant after such  adjustment,  and, if the
Company  shall have  elected to adjust  the  number of  Warrants,  the number of
Warrants to which the Registered  Holder of each Warrant shall then be entitled,
and (iii) a brief  statement of the facts  accounting for such  adjustment.  The
Company will promptly cause a brief summary thereof to be sent by ordinary first
class mail to each Registered Holder of Warrants at his last address as it shall
appear in the registry books of the Company.  No failure to mail such notice nor
any defect therein or in the mailing  thereof shall affect the validity  thereof
except as to the  Holder to whom the  Company  failed  to mail such  notice,  or
except as to the  holder  whose  notice  was  defective.  The  affidavit  of the
Secretary  or an  Assistant  Secretary  of the Company that such notice has been
mailed  shall,  in the absence of fraud,  be prima  facie  evidence of the facts
stated therein.

     (e) For purposes of Section 7(a) and 7(b) hereof, the following  provisions
shall also be applicable:

          (A) The number of shares of Common Stock outstanding at any given time
     shall include shares of Common Stock owned or held by or for the account of
     the  Company  and the  sale or  issuance  of such  treasury  shares  or the
     distribution  of any such treasury  shares shall not be considered a Change
     of Shares for purposes of said sections.

          (B) No  adjustment  of the  Purchase  Price  shall be made unless such
     adjustment  would  require an increase or decrease of at least $.25 in such
     price; provided that any adjustments which by reason of this clause (B) are
     not  required to be made shall be carried  forward and shall be made at the
     time of and together with the next subsequent  adjustment  which,  together
     with any  adjustment(s)  so carried  forward,  shall require an increase or
     decrease of at least $.25 in the Purchase Price then in effect hereunder.

       (f) Any  determination  as to whether an adjustment in the Purchase Price
in effect  hereunder  is required  pursuant to Section 7, or as to the amount of
any such  adjustment,  if  required,  shall be binding  upon the  holders of the
Warrants  and the Company if made in good faith by the Board of Directors of the
Company.

       (g)  If  and  whenever  the  Company   shall  declare  any  dividends  or
distributions  or grant to the  holders  of  Common  Stock,  as such,  rights or
warrants to subscribe  for or to  purchase,  or any options for the purchase of,
Common Stock or securities  convertible  into or exchangeable  for or carrying a
right, warrant or option to purchase Common Stock, the Company shall notify each
of the then  Registered  Holders  of the  Warrants  of such  event  prior to its
occurrence  to enable such  Registered  Holders to exercise  their  Warrants and
participate as holders of Common Stock in such event.

     SECTION 8. Fractional Warrants and Fractional Shares.

     (a) If the number of shares of Common Stock  purchasable  upon the exercise
of each  Warrant is  adjusted  pursuant to Section 7 hereof,  the Company  shall
nevertheless not be required to issue fractions of shares,  upon exercise of the
Warrants or otherwise,  or to distribute  certificates that evidence  fractional
shares.  With  respect to any  fraction of a share  called for upon any exercise
hereof,  the  Company  shall pay to the  Holder an amount in cash  equal to such
fraction  multiplied  by the  current  market  value of such  fractional  share,
determined as follows:

          (A) If the Common Stock is listed on a national securities exchange or
     admitted  to unlisted  trading  privileges  on such  exchange or listed for
     trading on the National Market System of NASDAQ ("NMS"),  the current value
     shall be the last  reported sale price of the Common Stock on such exchange
     on the last  business  day prior to the date of exercise of this Warrant or
     if no such sale is made on such day or no closing sale price is quoted, the
     average of the closing bid and asked  prices for such day on such  exchange
     or system; or

          (B) If the  Common  Stock is  listed  in the  over-the-counter  market
     (other than on NMS) or admitted to unlisted trading privileges, the current
     value shall be the mean of the last reported bid and asked prices  reported
     by the National  Quotation  Bureau,  Inc. on the last business day prior to
     the date of the exercise of this Warrant; or

          (C) If the  Common  Stock is not so listed  or  admitted  to  unlisted
     trading  privileges  and bid and  asked  prices  are not so  reported,  the
     current value shall be an amount  determined in such  reasonable  manner as
     may be prescribed by the Board of Directors of the Company.

     SECTION 9.  Warrantholder  Not Deemed  Stockholder.  No holder of  Warrants
shall,  as such,  be entitled to vote or to receive  dividends  or be deemed the
holder of Common  Stock that may at any time be issuable  upon  exercise of such
Warrants for any purpose  whatsoever,  nor shall  anything  contained  herein be
construed to confer upon the holder of Warrants, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof,  or to give or
withhold  consent to any corporate  action  (whether upon any  recapitalization,
issue or reclassification of stock, change of par value or change of stock to no
par value,  consolidation,  merger or  conveyance or  otherwise),  or to receive
notice of meetings,  or to receive dividends or subscription  rights, until such
Holder shall have exercised such Warrants and been issued shares of Common Stock
in accordance with the provisions hereof.

     SECTION 10.  Rights of Action.  All rights of action  with  respect to this
Warrant are vested in the Registered Holder of the Warrants,  and the Registered
Holder of a Warrant, without consent of the holder of any other Warrant, may, on
his own behalf and for his own benefit, enforce against the Company his right to
exercise  his  Warrants for the purchase of shares of Common Stock in the manner
provided in this Warrant.

     SECTION 11. Agreement of Warrantholder.  Every holder of a Warrant,  by his
acceptance  thereof,  consents  and agrees with the Company that the Company may
deem and treat the person in whose name the Warrant is  registered as the holder
and as the absolute,  true and lawful owner of the Warrants  represented thereby
for all  purposes,  and the  Company  shall  not be  affected  by any  notice or
knowledge to the contrary,  except as otherwise  expressly provided in Section 6
hereof.

     SECTION 12. Gender;  Singular and Plural. When the context and construction
so require,  all words used in the singular  herein shall be deemed to have been
used in the plural and the  masculine  shall include the feminine and neuter and
vice versa.

     SECTION 13.  Governing Law. This Warrant shall be governed by and construed
in accordance  with the laws of the State of  California,  without  reference to
principles of conflict of laws.

     SECTION  14.   Notices.   All   notices,   requests,   consents  and  other
communications  hereunder  shall be in writing  and shall be deemed to have been
made when delivered or mailed first class registered or certified mail,  postage
prepaid, as follows: if to the Registered Holder of a Warrant, at the address of
such holder as shown on the registry books maintained by the Company;  if to the
Company, at 2067 Commerce Drive, Medford, Oregon 97504, Attention: President.

     SECTION 15. Binding Effect. This Warrant shall be binding upon and inure to
the benefit of the Company (and its  respective  successors and assigns) and the
holders  from time to time of  Warrants.  Nothing in this Warrant is intended or
shall be construed  to confer upon any other person any right,  remedy or claim,
in equity or at law, or to impose upon any other  person any duty,  liability or
obligation.

     SECTION 16.  Termination.  This  Warrant  shall  terminate  at the close of
business on the Warrant Expiration Date.


                                      ADVANCED MACHINE VISION CORPORATION

                                      By:  /s/ Alan R. Steel
                                           -------------------------------------
                                           Alan R. Steel

