NDC AUTOMATION INC
AMENDED SECURITY AGREEMENT
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>0005.txt
<DESCRIPTION>AMENDED SECURITY AGREEMENT
<TEXT>

                        THIRD AMENDMENT TO INVENTORY AND
                          ACCOUNTS RECEIVABLE LOAN AND
                               SECURITY AGREEMENT


         THIS THIRD AMENDMENT, dated as of the 30th day of November, 2000, is to
that certain Inventory and Accounts Receivable Loan and Security Agreement dated
as of February 28, 1997, as amended as of October 27, 1998 and as of April 30,
1999 (as amended thereby and hereby, the "Loan Agreement") by and between

         NDC AUTOMATION, INC., a corporation organized and existing under the
laws of the State of Delaware (the "Borrower"); and

         SUMMIT BUSINESS CAPITAL CORP., a New York corporation (the "Lender").


RECITALS:

         A. National Bank of Canada, a Canadian chartered bank, and National
Canada Business Corp., a Delaware corporation (collectively, the "Original
Lenders"), originally entered into the Loan Agreement with the Borrowers.

         B. Pursuant to the terms of a Loan Portfolio Sale and Purchase
Agreement dated as of June 21, 2000, Summit Commercial/Gibraltar Corp., a New
York corporation, acquired all rights of the Original Lenders to the Loan
Agreement and the documents executed in connection with the Loan Agreement.

         C. Summit Commercial/Gibraltar Corp. subsequently changed its name to
Summit Business Capital Corp.

         D. The Borrower and the Lender have agreed to make certain changes to
the Loan Agreement as set forth herein.

         NOW, THEREFORE, the parties hereto agree as follows:

         A. Section 3 of the Loan Agreement is deleted in its entirety and
replaced with the following.

                  "3. LOANS. Subject to the terms and provisions of this
         Agreement, Lender will make such loans to Borrower as from time to time
         Lender elects to make which are secured by Borrower's Collateral and
         the proceeds thereof. The aggregate unpaid principal of all such loans
         outstanding at any one time shall not exceed the lesser of (a) Four
         Hundred Fifty Thousand Dollars (U.S. $450,000.00) or (b) eighty percent
         (80%) of the unpaid face amount of (i) Qualified Accounts that are
         non-project Qualified Accounts and (ii) Qualified Accounts that are
         project Qualified Accounts, as defined below, (or such other
         percentages thereof as may from time to time be fixed by the Lender
         upon notice to Borrower), plus fifty percent (50%) of the cost or
         market value, whichever is lower, of all Eligible Inventory, as defined
         below, (hereinafter called
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         the "Inventory Value"), but in no event shall (A) Inventory Value be in
         excess of Three Hundred Thousand Dollars (U.S. $300,000.00) and (B)
         Inventory Value and Qualified Accounts that are project Qualified
         Accounts be in excess of Four Hundred Fifty Thousand Dollars (U.S.
         $450,000.00). The sum produced by applying at any given time the then
         prevailing percentages to the Inventory Value and to the total of
         Qualified Accounts is herein called the "Borrowing Base". All such
         loans shall bear interest, and where appropriate under the Lender's
         prevailing policy shall bear a service charge at the rate agreed on
         from time to time by the parties, and at the option of Lender shall be
         evidenced by notes in form satisfactory to Lender, but in the absence
         of notes shall be conclusively evidenced by the Lender's record of
         disbursements and repayments. The Borrower's loans are presently
         evidenced by that certain Secured Note ("Secured Note") bearing even
         date herewith. The unpaid principal balances of the Borrower's loans
         shall bear interest from the date hereof upon disbursed and unpaid
         principal balances (calculated on the basis of a year of 360 days) at a
         rate per annum which shall, from day to day, be equal to two and three
         quarters of one percent (2.75%) per annum for amounts outstanding under
         the Note, plus the rate for commercial loans announced from time to
         time in the United States as its prime rate ("Prime Rate") by Bank,
         each change in the rate to be charged hereon to become effective,
         without notice to the Borrower, on the effective date of each change in
         the Prime Rate, and interest shall be payable monthly in arrears on the
         1st day of each month, commencing on the 1st day of December, 2000. The
         Prime Rate is a reference rate and is not necessarily the lowest rate
         charged by Lender or Bank for extensions of credit. The Bank's Prime
         Rate is, as of the date hereof, nine and one-half of one percent
         (9.50%) per annum. All such loans shall be payable on demand or, if no
         demand then, on the Termination Date as that term is defined in the
         Secured Note."

         B. All references to the "Loan Agreement" set forth in the documents
executed in connection with the Loan Agreement shall be deemed to be references
to the Loan Agreement as amended by this Third Amendment.

         C. The Borrower represents and warrants that, as of the date hereof, it
is not in default of the terms of the Loan Agreement, as amended hereby, or any
of the other documents executed among the Borrower and the Lender in connection
therewith.

         D. This Third Amendment may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed an original.

         E. This Third Amendment and the Loan Agreement, as amended hereby,
shall be deemed to be contracts made under, and for all purposes shall be
construed in accordance with the laws of the State of New York.

                                      -2-
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         IN WITNESS WHEREOF, the Borrower and the Lender have caused this Third
Amendment to be executed under seal by their duly authorized corporate officers
all as of the day and year first above written.


                                     NDC AUTOMATION, INC.

                                     By /s/ Claude Imbleau
                                       -----------------------------------------

                                     Title  Chief Operating Officer
                                          --------------------------------------


                                     SUMMIT BUSINESS CAPITAL CORP.

                                     By /s/ Keith D. Scheid
                                       -----------------------------------------

                                     Title  Assistant Vice-President
                                          --------------------------------------


                                     By  /s/ W. Gregg Simpson
                                       -----------------------------------------

                                     Title  Vice President
                                          --------------------------------------



                                      -3-
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