Document:

Exhibit 10.17
                                                                   -------------

                 FIRST AMENDMENT TO TERM NOTE AND LOAN AGREEMENT
                 -----------------------------------------------
                                   (TERM LOAN)

Paragon Technologies, Inc. (formerly, "SI Handling Systems, Inc.")
600 Kuebler Road
Easton, Pennsylvania 18040

Ermanco Incorporated
6870 Grand Haven Road
Spring Lake, Michigan 49456
(Individually and collectively, "Borrower")

First Union National Bank
702 Hamilton Street
Allentown, Pennsylvania 18101
(Hereinafter referred to as "Bank")

         THIS  FIRST   AMENDMENT  TO  TERM  NOTE  AND  LOAN  AGREEMENT   ("First
Amendment")  is entered into as of March 30,  2000,  by and between the Bank and
Borrower.

         BACKGROUND

         A.    Bank is the holder of a Promissory Note executed and delivered by
Borrower,  dated  September  30,  1999,  in the  original  principal  amount  of
$14,000,000.00  (the  "Note");  and  certain  other loan  documents,  including,
without  limitation,  a Loan  Agreement  dated  September  30,  1999 (the  "Loan
Agreement").

         B.    The term "Loan Documents", as used in this Agreement, is defined
in the Note.  All  capitalized  terms used but not defined herein shall have the
meanings assigned in the Loan Documents.

         C.    Borrower has requested Bank to waive the following Defaults
(collectively, the "Existing Defaults") under the Loan Documents:

               (i)     Borrower failed to maintain the requisite Funds Flow
Coverage Ratio for the period ending December 31, 1999;

               (ii)    Borrower's aggregate outstanding Obligations exceeded the
amount  permitted under the Borrowing Base  determined  pursuant to the terms of
the Loan  Agreement for the  $6,000,000.00  Line of Credit with the Bank for the
period ending December 31, 1999; and

               (iii)   Borrower  defaulted  under  the  terms of that  certain
Subordination   Agreement   dated   September   30,  1999  (the   "Subordination
Agreement"), executed by Borrower, Bank and the Creditors identified therein, in
that  Borrower  made  payments  of  interest  on the  Subordinated  Debt for the
quarterly  periods  ending  December 31, 1999 and March 31, 2000, at a time when
Borrower was in default under the Loan Documents.

         D.    Bank is willing to waive the Existing Defaults in consideration
of Borrower's execution and delivery of this Agreement together with the receipt
by Bank of the Waiver Fee (as defined herein).

<PAGE>

         AGREEMENT

         NOW,  THEREFORE,  in  consideration  of Bank's  continued  extension of
credit,  the payment of the Waiver Fee and the agreements  contained herein, the
parties agree as follows:

         1.  Incorporation  of Background.  The background  provisions set forth
             ----------------------------
above (including,  without limitation,  any defined terms set forth therein) are
hereby  incorporated  by  reference  into this First  Amendment  and made a part
hereof as though set forth in their entirety herein.

         2.       Funds Flow Coverage Ratio.  The Funds Flow Coverage Ratio of
                  -------------------------
the Loan  Agreement  is hereby  amended  from and after the date hereof and
shall read in its entirety as follows:

                  Funds Flow Coverage  Ratio.  Borrower  shall  maintain a Funds
                  --------------------------
                  Flow  Coverage  Ratio of not  less  than  1.25 to 1.00,  to be
                  measured  quarterly on a rolling four  quarters  basis at each
                  quarter's end.  "Funds Flow Coverage Ratio" shall mean the sum
                  of earnings  (excluding SI Baker and Egemin) before  interest,
                  taxes,  depreciation and  amortization,  divided by the sum of
                  all current  maturities  of long term debt and  capital  lease
                  obligations plus interest expense. For purposes of calculating
                  the Funds Flow Coverage  Ratio,  the amounts  indicated  below
                  will be added on a  non-cumulative  basis to the  earnings for
                  the periods indicated:

                           Period Ending                      Add Back Amount
                           -------------                      ---------------
                           March 31, 2000                      $1,800,000.00
                           June 30, 2000                       $2,400,000.00
                           September 30, 2000                  $1,900,000.00

         3.       Total Liabilities to Net Worth Ratio.  The Total Liabilities
                  ------------------------------------
to Net Worth Ratio of the Loan  Agreement  is hereby  amended from and after the
date hereof and shall read in its entirety as follows:

                  Total  Liabilities to Net Worth Ratio.  Borrower  shall,  from
                  -------------------------------------
                  closing until fiscal  year-end  December 31, 2000,  maintain a
                  ratio of Total  Liabilities to Net Worth of not more than 1.80
                  to 1.00,  and  thereafter,  Borrower shall maintain a ratio of
                  Total  Liabilities to Net Worth of not more than 1.75 to 1.00,
                  to be measured  quarterly at each  quarter's  end. "Net Worth"
                  shall mean total assets  (including the investment in SI Baker
                  and Egemin) minus Total Liabilities. "Total Liabilities" shall
                  mean  all  liabilities  of  Borrower,   excluding  debt  fully
                  subordinated  to Bank on terms and  conditions  acceptable  to
                  Bank,  and including  capitalized  leases and all reserves for
                  deferred  taxes  and  other  deferred  sums  appearing  on the
                  liabilities  side  of a  balance  sheet,  in  accordance  with
                  generally   accepted   accounting   principles  applied  on  a
                  consistent basis.

         4.       Current Ratio.  The Current Ratio of the Loan Agreement is
   -------------
hereby modified and amended from and after the date hereof and shall read in its
entirety as follows:

                  Current Ratio.  Borrower shall maintain a Current Ratio of not
                  -------------
                  less than 1.20 to 1.00,  measured  quarterly at each quarter's
                  end. "Current Ratio" shall mean the ratio of Current Assets to
                  Current  Liabilities.  "Current  Assets" shall mean all assets
                  which are so classified in accordance with generally  accepted
                  accounting  principles.  "Current  Liabilities" shall mean all
                  liabilities

<PAGE>

                  which are so classified in accordance with generally accepted
                  accounting principles.

         5.       Interest Rate.  The Note is hereby modified and amended from
                  -------------
and after the date hereof to provide  that  commencing  on March 30,  2000,  the
unpaid  principal  balance shall bear interest at a rate equal to 3-months LIBOR
plus 3.00%.

         6.       Subordinated Debt.  Commencing on April 1, 2000,  Borrower
                  -----------------
shall not make any  payments  of  Subordinated  Debt until  Borrower  is in full
compliance  with all  Financial  Covenants as  originally  set forth in the Loan
Agreement prior to the addition of the amounts to be added to the calculation of
the  Funds  Flow  Coverage   Ratio  as  set  forth  in  this  First   Amendment.
Simultaneously  with  the  execution  of this  First  Amendment  or  immediately
thereafter,  Borrower  and Bank shall  execute  and  deliver to the  Creditors a
letter  notifying  the  Creditors  that no further  payments will be made on the
Subordinated Debt except as provided herein.

         7.       Waiver Fee.  Simultaneously with the execution of this First
                  ----------
Amendment by Borrower,  Borrower shall deliver to Bank a modification/waiver fee
(the "Waiver Fee") in the amount of $5,000.00.

         8.  Waiver of  Existing  Defaults.  Bank  hereby  waives  the  Existing
             -----------------------------
Defaults.  This  waiver is limited  to the  Existing  Defaults  and shall not be
construed as a waiver of any subsequent  Default under the referenced  Financial
Covenants or  Subordination  Agreement,  or of any  existing or future  Defaults
under any other provisions of any Loan Documents.

         9.       Acknowledgment of Balance.  Borrower acknowledges that the
                  -------------------------
most  recent  Commercial  Loan  Invoice  sent to  Borrower  with  respect to the
Obligations under the Note is correct.

         10.      Acknowledgments and Representations.  Borrower acknowledges
                  -----------------------------------
and  represents  that the Note,  Loan  Agreement  and other Loan  Documents,  as
amended hereby, are in full force and effect without any defense,  counterclaim,
right or claim of set-off; that, after giving effect to this First Amendment, no
Default  or event  that with the  passage  of time or  giving  of  notice  would
constitute a Default under the Loan Documents has occurred,  all representations
and  warranties  contained in the Loan Documents are true and correct as of this
date,  all  necessary  action to authorize  the  execution  and delivery of this
Agreement  has been taken;  and this First  Amendment  is a  modification  of an
existing  obligation  and is not a  novation.  Effective  the date  hereof,  all
references in the Loan  Documents to the Note or the Loan  Agreement  shall mean
the Note and the Loan Agreement as amended by this First Amendment.

         11.     Collateral. Borrower acknowledges and confirms that there have
                 ----------
been no  changes  in the  ownership  of any  collateral  pledged  to secure  the
Obligations  (the  "Collateral")  since the Collateral  was originally  pledged;
Borrower  acknowledges  and  confirms  that the Bank has  existing,  valid first
priority security interests and liens in the Collateral;  and that such security
interests and liens shall secure Borrower's  Obligations to Bank,  including any
modification   of  the  Note  or  Loan   Agreement,   if  any,  and  all  future
modifications, extensions, renewals and/or replacements of the Loan Documents.

         12.   Miscellaneous.   This  First  Amendment  shall  be  construed  in
               -------------
accordance  with and governed by the laws of the applicable  state as originally
provided in the Loan Documents,  without  reference to that state's conflicts of
law principles. This First Amendment and the other Loan Documents constitute the
sole  agreement of the parties with  respect to the subject  matter  thereof and
supersede all oral  negotiations  and prior writings with respect to the subject
matter thereof.  No amendment of this First Amendment,  and no waiver of any one
or more of the provisions  hereof shall be effective unless set forth in writing
and signed by the parties

<PAGE>

hereto.  The illegality,  unenforceability  or inconsistency of any provision of
this  First  Amendment  shall  not in any way  affect or  impair  the  legality,
enforceability  or  consistency  of  the  remaining  provisions  of  this  First
Amendment or the other Loan  Documents.  This First Amendment and the other Loan
Documents  are  intended  to  be  consistent.  However,  in  the  event  of  any
inconsistencies  among this First Amendment and any of the Loan  Documents,  the
terms of this First  Amendment,  and then the Note,  shall  control.  This First
Amendment  may be executed in any number of  counterparts  and by the  different
parties  on  separate  counterparts.  Each such  counterpart  shall be deemed an
original,  but all such counterparts shall together  constitute one and the same
agreement.

         IN WITNESS  WHEREOF,  the undersigned have signed and sealed this First
Amendment the day and year first above written.

         PLACE OF EXECUTION AND DELIVERY.  Borrower  hereby  certifies that this
First  Amendment and the Loan  Documents  were executed in the  Commonwealth  of
Pennsylvania and delivered to Bank in the Commonwealth of Pennsylvania.

                                Paragon Technologies, Inc.
                                  (formerly, "SI Handling Systems, Inc.")
                                Taxpayer Identification Number: 22-1643428

CORPORATE                       By:  /s/ William R. Johnson, President & CEO
                                ------------------------------------------------
SEAL                            William R. Johnson, President & CEO

                           By:  /s/ William F. Moffitt, Vice President - Finance
                                ------------------------------------------------
                                William F. Moffitt, Vice President - Finance

                                First Union National Bank

                                 By:  /s/ William M. Hogan, Vice President
                                      ------------------------------------------
                                      William M. Hogan, Vice PresidentExhibit 10.18
                                                                   -------------

                             MODIFICATION NUMBER ONE
                                TO LOAN AGREEMENT

Paragon Technologies, Inc. (formerly, "SI Handling Systems, Inc.")
600 Kuebler Road
Easton, Pennsylvania  18040

Ermanco Incorporated
6870 Grand Haven Road
Spring Lake, Michigan  49456
 (Individually and collectively, "Borrower")

First Union National Bank
702 Hamilton Mall
Allentown, Pennsylvania 18101
(Hereinafter referred to as "Bank")

THIS AGREEMENT is entered into as of January 31, 2000 by and between Bank and
Borrower .

RECITALS

Bank is the holder of a  Promissory  Note  executed  and  delivered by Borrower,
dated September 30, 1999, in the original principal amount of $6,000,000.00 (the
"Note"); and certain other loan documents,  including without limitation, a Loan
Agreement, dated September 30, 1999 (the "Loan Agreement");

Borrower and Bank have agreed to modify the terms of the Loan Agreement.

In  consideration  of Bank's  continued  extension of credit and the  agreements
contained herein, the parties agree as follows:

                                    AGREEMENT

ACKNOWLEDGMENT OF BALANCE. Borrower acknowledges that the most recent Commercial
Loan Invoice sent to Borrower with respect to the Obligations  under the Note is
correct.

MODIFICATIONS.

         The  Loan  Agreement  is  hereby   modified  by  adding  the  following
provisions:

LETTERS OF CREDIT.  Bank will issue standby letters of credit,  (each, a "Letter
of Credit" and collectively,  the "Letters of Credit")  provided,  the aggregate
amount  available  to be drawn  under all  standby  Letters  of Credit  plus the
aggregate  amount of  unreimbursed  drawings under all standby Letters of Credit
and the outstanding  unpaid  principal  balance of the Note at any one time does
not exceed $6,000,000,  and further provided,  no standby Letter of Credit shall
expire more than 365 days after the date it is issued.  Notwithstanding anything
to the contrary contained herein, the aggregate outstanding principal balance of
Advances  (as defined in the Note) plus the  aggregate  amount  available  to be
drawn  under all  Letters of Credit plus the  aggregate  amount of  unreimbursed
drawings  under  all  Letters  of  Credit  at any  one  time  shall  not  exceed
$6,000,000.00. The Letters of Credit are to be used by Borrower

<PAGE>

solely  for  the  purpose  of  expediting  the  purchase  of  inventory.  Bank's
obligation to issue Letters of Credit shall  terminate if Borrower is in default
(however  denominated)  under the Note or the other  Loan  Documents,  or in any
case, if not sooner terminated, on September 30, 2002.

LETTER OF CREDIT FEES.  Borrower  shall pay to Bank, at such times as Bank shall
require, Bank's standard fees in connection with Letters of Credit, as in effect
from time to time, and with respect to standby Letters of Credit, at the time of
issuance of each standby Letter of Credit, a fee equal to 1.00% per annum on the
face amount of the  standby  Letter of Credit for the period of time the standby
Letter of Credit will be outstanding.

ACKNOWLEDGMENTS AND REPRESENTATIONS.  Borrower acknowledges and
represents that the Loan Agreement and other Loan Documents,  as amended hereby,
are in full force and effect without any defense,  counterclaim,  right or claim
of set-off;  that,  after giving effect to this  Agreement,  no default or event
that with the  passage of time or giving of notice  would  constitute  a default
under the Loan  Documents  has  occurred,  all  representations  and  warranties
contained  in the Loan  Documents  are true and  correct  as of this  date,  all
necessary  action to authorize the execution and delivery of this  Agreement has
been taken;  and this Agreement is a modification of an existing  obligation and
is not a novation.

COLLATERAL.  Borrower  acknowledges and confirms that there have been no changes
in the  ownership  of any  collateral  pledged  to secure the  Obligations  (the
"Collateral") since the Collateral was originally pledged; Borrower acknowledges
and confirms that the Bank has existing, valid first priority security interests
and liens in the  Collateral;  and that such security  interests and liens shall
secure Borrower's Obligations to Bank, including any modification of the Note or
Loan  Agreement,  if any,  and all future  modifications,  extensions,  renewals
and/or replacements of the Loan Documents .

MISCELLANEOUS. This Agreement shall be construed in accordance with and governed
by the  laws  of  the  applicable  state  as  originally  provided  in the  Loan
Documents,  without reference to that state's conflicts of law principles.  This
Agreement  and the other Loan  Documents  constitute  the sole  agreement of the
parties  with  respect to the  subject  matter  thereof and  supersede  all oral
negotiations  and prior writings with respect to the subject matter thereof.  No
amendment of this Agreement,  and no waiver of any one or more of the provisions
hereof shall be effective  unless set forth in writing and signed by the parties
hereto.  The illegality,  unenforceability  or inconsistency of any provision of
this   Agreement   shall  not  in  any  way  affect  or  impair  the   legality,
enforceability  or consistency of the remaining  provisions of this Agreement or
the other  Loan  Documents.  This  Agreement  and the other Loan  Documents  are
intended to be consistent.  However, in the event of any  inconsistencies  among
this Agreement and any of the Loan Documents,  the terms of this Agreement,  and
then the Note,  shall  control.  This Agreement may be executed in any number of
counterparts and by the different  parties on separate  counterparts.  Each such
counterpart  shall  be  deemed  an  original,  but all such  counterparts  shall
together  constitute  one and the same  agreement.  Terms used in this Agreement
which are capitalized  and not otherwise  defined herein shall have the meanings
ascribed to such terms in the Loan Agreement.

ARBITRATION.  Upon  demand of any party  hereto,  whether  made  before or after
institution of any judicial proceeding,  any claim or controversy arising out of
or relating to the Loan Documents  between parties hereto (a "Dispute") shall be
resolved by binding  arbitration  conducted under and governed by the Commercial
Financial Disputes  Arbitration Rules (the "Arbitration  Rules") of the American
Arbitration  Association (the "AAA") and the Federal  Arbitration Act.  Disputes
may include,  without limitation,  tort claims,  counterclaims,  a dispute as to
whether a matter is subject to arbitration,  claims brought as class actions, or
claims arising from documents  executed in the future. A judgment upon the award
may be entered in any court having jurisdiction.  Notwithstanding the foregoing,
this arbitration provision does

<PAGE>

not apply to disputes under or related to swap  agreements.  Special Rules.  All
arbitration hearings shall be conducted in the city named in the address of Bank
first  stated  above.  A  hearing  shall  begin  within  90 days of  demand  for
arbitration  and all  hearings  shall  conclude  within  120 days of demand  for
arbitration.  These time  limitations  may not be extended  unless a party shows
cause for extension and then for no more than a total of 60 days.  The expedited
procedures  set  forth  in Rule 51 et seq.  of the  Arbitration  Rules  shall be
applicable to claims of less than  $1,000,000.00.  Arbitrators shall be licensed
attorneys  selected from the Commercial  Financial Dispute  Arbitration Panel of
the AAA. The parties do not waive  applicable  Federal or state  substantive law
except  as  provided   herein.   Preservation   and   Limitation   of  Remedies.
Notwithstanding the preceding binding arbitration provisions,  the parties agree
to preserve,  without  diminution,  certain remedies that any party may exercise
before or after an arbitration proceeding is brought. The parties shall have the
right to proceed in any court of proper jurisdiction or by self-help to exercise
or prosecute the following remedies, as applicable:  (i) all rights to foreclose
against any real or personal property or other security by exercising a power of
sale or under applicable law by judicial  foreclosure  including a proceeding to
confirm the sale; (ii) all rights of self-help  including peaceful occupation of
real  property and  collection  of rents,  set-off,  and peaceful  possession of
personal property;  (iii) obtaining  provisional or ancillary remedies including
injunctive  relief,  sequestration,   garnishment,  attachment,  appointment  of
receiver  and  filing  an  involuntary  bankruptcy  proceeding;  and  (iv)  when
applicable,  a judgment by confession of judgment. Any claim or controversy with
regard to any  party's  entitlement  to such  remedies  is a Dispute.  Waiver of
Exemplary  Damages.  The  parties  agree  that  they  shall not have a remedy of
punitive or exemplary  damages  against  other parties in any Dispute and hereby
waive any right or claim to punitive or exemplary damages they have now or which
may arise in the future in  connection  with any Dispute  whether the Dispute is
resolved  by  arbitration  or  judicially.  Waiver of Jury  Trial.  THE  PARTIES
ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION THEY HAVE IRREVOCABLY WAIVED
ANY RIGHT THEY MAY HAVE TO JURY TRIAL WITH REGARD TO A DISPUTE.

IN WITNESS  WHEREOF,  the undersigned  have signed and sealed this Agreement the
day and year first above written.

PLACE OF EXECUTION AND DELIVERY.  Borrower hereby  certifies that this Agreement
and the Loan Documents were executed in the  Commonwealth  of  Pennsylvania  and
delivered to Bank in the Commonwealth of Pennsylvania.

              Paragon Technologies, Inc. (formerly, "SI Handling Systems, Inc.")
              Taxpayer Identification Number: 22-1643428

CORPORATE     By:    /s/ William R. Johnson
                     -----------------------------------------------------------
SEAL                 William R. Johnson, President & CEO

              By:    /s/ William F. Moffitt
                     -----------------------------------------------------------
                     William F. Moffitt, Vice President - Finance

              First Union National Bank
              By:    /s/ Peter A. Gray
                     -----------------------------------------------------------
                     Peter A. Gray, Vice President

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