Greyrock Business Credit
a NationsBank Company

                           AMENDMENT TO LOAN DOCUMENTS

Borrower:          Paradigm Technology, Inc.
Address:           694 Tasmin Drive
                   Milpitas, California 95035

Dated as of:       January 29, 1998



         THIS AMENDMENT TO LOAN DOCUMENTS is entered into between GREYROCK
BUSINESS CREDIT, a Division of NationsCredit Commercial Corporation ("GBC"),
whose address is 10880 Wilshire Blvd., Suite 950, Los Angeles, CA 90024 and the
borrower named above ("Borrower").

         The Parties agree to amend, effective as of the date hereof, the Loan
and Security Agreement between them, dated October 25, 1996, as amended from
time to time (the "Loan Agreement"), as follows. (This Amendment, the Loan
Agreement, any prior written amendments to said agreements signed by GBC and the
Borrower, and all other written documents and agreements between GBC and the
Borrower are referred to herein collectively as the "Loan Documents".
Capitalized terms used but not defined in this Amendment, shall have the
meanings set forth in the Loan Agreement.)

         1. MODIFICATION OF CREDIT LIMIT. Section 1 of the Schedule to the Loan
Agreement entitled "Credit Limit (Section 1.1)" is hereby amended to read as
follows:

         "CREDIT LIMIT (Section 1.1):

              An amount not to exceed the lesser of:

              (i)    $5,000,000 at any one time outstanding; or

              (ii)   the sum of:

                     (a)   80% of the amount of Borrower's Eligible Receivables*
                           owing from original equipment manufacturers; plus

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Greyrock Business Credit  Amendment to Loan Documents


                     (b)   50% of the amount of Borrower's Eligible Receivables*
                           owing from distributors.

                     * (as defined in Section 8 of the Loan Agreement)"

         2. FOREIGN RECEIVABLES. The Minimum Eligibility Requirements with
respect to Eligible Receivables include the following: "the Receivable must not
be owing from an Account Debtor located outside the United States or Canada
(unless pre-approved by GBC in its discretion in writing, or backed by a letter
of credit satisfactory to GBC, or FCIA insured satisfactory to GBC)." It is
anticipated that GBC may, on a going forward basis, approve for borrowing
purposes certain Receivables owing from Account Debtors outside the United
States or Canada ("Foreign Receivables"); provided that GBC will only approve
such Foreign Receivables as are consistent with the Minimum Eligibility
Requirements, that is, among other things, THOSE AS ARE APPROVED BY GBC IN ITS
DISCRETION. Further, Receivables owing from Scan Technology, to the extent such
Receivables otherwise comply with the Minimum Eligibility Requirements, will be
eligible for borrowing purposes if the invoiced Receivables are for product that
will be shipped to Iomega's sub-contractors within 45 days and if the payment
terms relating thereto require payment within 7 days of shipment thereof.

         3. REPRESENTATIONS TRUE. Borrower represents and warrants to GBC that
all representations and warranties set forth in the Loan Agreement, as amended
hereby, are true and correct.

         4. GENERAL PROVISIONS. This Amendment, the Loan Agreement, and the
other Loan Documents set forth in full all of the representations and agreements
of the parties with respect to the subject matter hereof and supersede all prior
discussions, representations, agreements and understandings between the parties
with respect to the subject hereof. Except as herein expressly amended, all of
the terms and provisions of the Loan Agreement and the other Loan Documents
shall continue in full force and effect and the same are hereby ratified and
confirmed.

Borrower:                                      GBC:

PARADIGM TECHNOLOGY, INC.                      GREYROCK BUSINESS CREDIT,
                                               a Division of NationsCredit
                                               Commercial Corporation

By  /s/ Michael Gullett                        By
  --------------------------------------         ------------------------------
        President or Vice President

By  /s/ David Campbell                         Title
  --------------------------------------            ---------------------------
        Secretary or Ass't Secretary