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                                                                   EXHIBIT 10.21

GREYROCK
BUSINESS
CREDIT

A NATIONSBANK COMPANY

                          LOAN AND SECURITY AGREEMENT

BORROWER:      SYQUEST TECHNOLOGY, INC.
ADDRESS:       47071 BAYSIDE PARKWAY
               FREMONT, CALIFORNIA 94538

DATE:          JANUARY 17, 1996

This Loan and Security Agreement is entered into on the above date between
GREYROCK BUSINESS CREDIT, a Division of NationsCredit Commercial Corporation
("GBC"), whose address 300 North Continental Blvd., Suite 200, El Segundo,
California 90245 and the borrower named above ("Borrower"), whose chief
executive office is located at the above address ("Borrower's Address").  The
Schedule to this Agreement (the "Schedule") being signed concurrently is an
integral part of this  Agreement. (Definitions of certain terms used in this
Agreement are set forth in Section 8 below.)

1. LOANS.

  1.1  LOANS. GBC will make loans to Borrower (the "Loans"), in amounts
determined by GBC in its sole discretion, up to the amounts (the "Credit Limit")
shown on the Schedule, provided no Default or Event of Default has occurred and
is continuing. If at any time or for any reason the total of all outstanding
Loans and all other Obligations exceeds the Credit Limit, Borrower shall
immediately pay the amount of the excess to GBC, without notice or demand.

  1.2  INTEREST.  All Loans and all other monetary Obligations shall bear
interest at the rate shown on the Schedule, except where expressly set forth to
the contrary in this Agreement or in another written agreement signed by GBC and
Borrower. Interest shall be payable monthly, on the last day of the month.
Interest may, in GBC's discretion, be charged to Borrower's loan account, and
the same shall thereafter bear interest at the same rate as the other Loans.

  1.3  FEES. Borrower shall pay GBC the fee(s) shown on the Schedule, which are
in addition to all interest and other sums payable to GBC and are not
refundable.

2. SECURITY INTEREST.

  2.1 SECURITY INTEREST To secure the payment and performance of all of the
Obligations when due. Borrower hereby grants to GBC a security interest in all
of Borrower's interest in the following, whether now owned or hereafter
acquired, and wherever located (collectively, the "Collateral"): All Inventory,
Equipment, Receivables, and General Intangibles, including, without limitation,
all of Borrower's Deposit Accounts, all money, all collateral in which GBC is
granted a security interest pursuant to any other present or future agreement,
all property * now or at any time in the future in GBC's possession, and all
proceeds (including proceeds of any insurance policies, proceeds of proceeds and
claims against third parties), all products of the foregoing, and all books and
records related to any of the foregoing.

*  OF BORROWER

3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

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  In order to induce GBC to enter into this Agreement and to make Loans,
Borrower represents and warrants to GBC as follows, and Borrower covenants that
the following representations will continue to be true, and that Borrower will
at all times comply with all of the following covenants:

  3.1  CORPORATE EXISTENCE AND AUTHORITY. Borrower, if a corporation, is and
will continue to be, duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation. Borrower is and will continue
to be qualified and licensed to do business in all jurisdictions in which any
failure to do so would have a material adverse effect on Borrower. The
execution, delivery and performance by Borrower of this Agreement, and all other
documents contemplated hereby (i) have been duly and validly authorized, (ii)
are enforceable against Borrower in accordance with their terms (except as
enforcement may be limited by equitable principles and by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to creditors'
rights generally), (iii) do not violate Borrower's articles or certificate of
incorporation, or Borrower's by-laws, or any law or any material agreement or
instrument which is binding upon Borrower or its property, and (iv) do not
constitute grounds for acceleration of any material indebtedness or obligation
under any material agreement or instrument which is binding upon Borrower or its
property.

  3.2  NAME; TRADE NAMES AND STYLES. The name of Borrower set forth in the
heading to this Agreement is its correct name Listed on the Schedule are all
prior names of Borrower and all of Borrower's present and prior trade names.
Borrower shall give GBC 30 days' prior written notice before changing its name
or doing business under any other name. Borrower has complied, and will in the
future comply, with all laws relating to the conduct of business under a
fictitious business name.

  3.3  PLACE OF BUSINESS; LOCATION OF COLLATERAL. The address set forth in the
heading to this Agreement is Borrower's chief executive office. In addition,
Borrower has places of business and Collateral is located only at the locations
set forth on the Schedule. Borrower will give GBC at least 30 days prior written
notice before opening any additional place of business, changing its chief
executive office, or moving any of the Collateral to a location other than
Borrower's Address or one of the locations set forth on the Schedule.

  3.4  TITLE TO COLLATERAL; PERMITTED LIENS. Borrower is now, and will at all
times in the future be, the sole owner of all the Collateral, except for items
of Equipment which are leased by Borrower. The Collateral now is and will remain
free and clear of any and all liens, charges, security interests, encumbrances
and adverse claims, except for Permitted Liens. GBC now has, and will continue
to have, a first-priority perfected and enforceable security interest in all of
the Collateral, subject only to the Permitted Liens, and Borrower will at all
times defend GBC and the Collateral against all claims of others. So long as any
Loan is outstanding which is a term loan, none of the Collateral now is or will
be affixed to any real property in such a manner, or with such intent, as to
become a fixture. Borrower is not and will not become a lessee under any real
property lease pursuant to which the lessor may obtain any rights in any of the
Collateral and no such lease now prohibits, restrains, impairs or will prohibit,
restrain or impair Borrower's right to remove any Collateral from the leased
premises.  Whenever any Collateral is located upon premises in which any third
party has an interest (whether as owner, mortgagee, beneficiary under a deed of
trust, lien or otherwise), Borrower shall, whenever requested by GBC, use its
best efforts to cause such third party to execute and deliver to GBC, in form
acceptable to GBC, such waivers and subordinations as GBC shall specify, so as
to ensure that GBC's rights in the Collateral are, and will continue to be,
superior to the rights of any such third party. Borrower will keep in full force
and effect, and will comply with all the terms of, any lease of real property
where any of the Collateral now or in the future may be located.

  3.5 MAINTENANCE OF COLLATERAL.  Borrower will maintain the Collateral in good
working condition, ordinary wear and tear excepted, and Borrower will not use
the Collateral for any unlawful purpose. Borrower will immediately advise GBC in
writing of any material loss or damage to the Collateral.

  3.6  BOOKS AND RECORDS. Borrower has maintained and will maintain at
Borrower's Address complete and accurate books and records, comprising an
accounting system in accordance with generally accepted accounting principles.

  3.7  FINANCIAL CONDITION, STATEMENTS AND REPORTS. All financial statements now
or in the future delivered to GBC have been, and will be, prepared in conformity
with generally accepted accounting principles and now and in the future will
completely and fairly reflect the financial condition of Borrower, at the times
and for the periods therein stated. Between the last date covered by any such
statement provided to GBC and the date hereof, there has been no material
adverse change in the financial condition or business of Borrower. Borrower is
now and will continue to be solvent.

  3.8 TAX RETURNS AND PAYMENTS; PENSION CONTRIBUTIONS. Borrower has timely
filed, and will timely file, all tax returns and reports required by applicable
law, and Borrower has timely paid, and will timely pay, all applicable taxes,
assessments, deposits and contributions now or in the future owed by Borrower.
Borrower may, however, defer payment of any contested 

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taxes, provided that Borrower (i) in good faith contests Borrower's obligation
to pay the taxes by appropriate proceedings promptly and diligently instituted
and conducted, (ii) notifies GBC in writing of the commencement of, and any
material development in, the proceedings, and (iii) posts bonds or takes any
other steps required to keep the contested taxes from becoming a lien upon any
of the Collateral. Borrower is unaware of any claims or adjustments proposed for
any of Borrower's prior tax years which could result in additional taxes
becoming due and payable by Borrower. Borrower has paid, and shall continue to
pay all amounts necessary to fund all present and future pension, profit sharing
and deferred compensation plans in accordance with their terms, and Borrower has
not and will not withdraw from participation in, permit partial or complete
termination of, or permit the occurrence of any other event with respect to, any
such plan which could result in any liability of Borrower, including any
liability to the Pension Benefit Guaranty Corporation or any other governmental
agency. Borrower shall, at all times, utilize the services of an outside payroll
service providing for the automatic deposit of all payroll taxes payable by
Borrower.

  3.9 COMPLIANCE WITH LAW. Borrower has complied, and will comply, in all
material respects, with all provisions of all applicable laws and regulations,
including, but not limited to, those relating to Borrower's ownership of real or
personal property, the conduct and licensing of Borrower's business, and all
environmental matters.

  3.10  LITIGATION. Except as disclosed in the Schedule, there is no claim,
suit, litigation, proceeding or investigation pending or (to best of Borrower's
knowledge) threatened by or against or affecting Borrower in any court or before
any governmental agency (or any basis therefor known to Borrower) which may
result, either separately or in the aggregate, in any material adverse change in
the financial condition or business of Borrower, or in any material impairment
in the ability of Borrower to carry on its business in substantially the same
manner as it is now being conducted. Borrower will promptly inform GBC in
writing of any claim, proceeding, litigation or investigation in the future
threatened or instituted by or against Borrower involving any single claim of
$50,000 or more, or involving $100,000 or more in the aggregate.

  3.11  USE OF PROCEEDS. All proceeds of all Loans shall be used solely for
lawful business purposes.

4. RECEIVABLES.

  4.1 REPRESENTATIONS RELATING TO RECEIVABLES. Borrower represents and warrants
to GBC as follows: Each Receivable * with respect to which Loans are requested
by Borrower shall, on the date each Loan is requested and made, (i) represent an
undisputed, bona fide, existing, unconditional obligation of the Account Debtor
created by the sale, delivery, and acceptance of goods or the rendition of
services, in the ordinary course of Borrower's business **, and (ii) meet the
eligibility requirements set forth in Section 8 below.

 * AND EACH NETHERLANDS RECEIVABLE

 ** OR, WITH RESPECT TO THE NETHERLANDS RECEIVABLES, THE BUSINESS OF SYQUEST
TECHNOLOGY B.V.,

  4.2  REPRESENTATIONS RELATING TO DOCUMENTS AND LEGAL COMPLIANCE. Borrower
represents and warrants to GBC as follows: All statements made and all unpaid
balances appearing in all invoices, instruments and other documents evidencing
the Receivables * are and shall be true and correct and all such invoices,
instruments and other documents and all of Borrower's ** books and records are
and shall be genuine and in all respects what they purport to be, and all
signatories and endorsers have the capacity to contract. All sales and other
transactions underlying or giving rise to each Receivable *** shall comply with
all applicable laws and governmental rules and regulations.  All signatures and
indorsements on all documents, instruments, and agreements relating to all
Receivables * are and shall be genuine, and all such documents, instruments and
agreements are and shall be legally enforceable in accordance with their terms.

 * AND THE NETHERLANDS RECEIVABLES

 ** AND SYQUEST TECHNOLOGY B.V.'S

 *** AND TO EACH NETHERLANDS RECEIVABLE

  4.3  SCHEDULES AND DOCUMENTS RELATING TO RECEIVABLES. Borrower shall deliver
to GBC transaction reports and loan requests, schedules and assignments of all
Receivables, and schedules of collections, * all on GBC's standard forms;
provided, however, that Borrower's ** failure to execute and deliver the same
shall not affect or limit GBC's security interest and other rights in all of
Borrower's Receivables ***, nor shall GBC's failure to advance or lend against a
specific Receivable **** affect or limit GBC's security interest and other
rights therein. Together with each such schedule and assignment, or later if
requested by GBC, Borrower shall furnish GBC with copies (or, at GBC's request,
originals) of all contracts, orders, invoices, and other similar documents, and
all original shipping instructions, delivery receipts, bills of lading, and
other evidence of delivery, for any goods the sale or disposition of which gave
rise to such Receivables**, and Borrower warrants the genuineness of all of the
foregoing. Borrower shall also furnish to GBC an aged accounts receivable trial
balance in such form 

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and at such intervals as GBC shall request. In addition, Borrower shall deliver
to GBC the originals of all instruments, chattel paper, security agreements,
guarantees and other documents and property evidencing or securing any
Receivables **, immediately upon receipt thereof and in the same form as
received, with all necessary indorsements.

  * AND, WITH RESPECT TO THE NETHERLANDS RECEIVABLES, BORROWER SHALL CAUSE
SYQUEST TECHNOLOGY B.V. TO DELIVER TO GBC TRANSACTION REPORTS, SCHEDULES AND
ASSIGNMENTS OF ALL NETHERLANDS RECEIVABLES AND SCHEDULES OF COLLECTIONS,

  ** OR SYQUEST TECHNOLOGY B.V.'S

  *** OR THE NETHERLANDS RECEIVABLES

  **** OR A NETHERLANDS RECEIVABLE

  4.4  COLLECTION OF RECEIVABLES. Borrower shall have the right to collect all
Receivables *, unless and until a Default or an Event of Default has occurred.
Borrower shall hold all payments on, and proceeds of, Receivables in trust for
GBC, and Borrower shall deliver all such payments and proceeds to GBC, within
one business day after receipt of the same, in their original form, duly
endorsed, to be applied to the Obligations in such order as GBC shall determine.
  **

  * AND ALL NETHERLANDS RECEIVABLES

  ** SYQUEST TECHNOLOGY B.V. SHALL HAVE THE RIGHT TO COLLECT ALL NETHERLANDS
RECEIVABLES, UNLESS AND UNTIL A DEFAULT OR AN EVENT OF DEFAULT HAS OCCURRED.

  4.5  DISPUTES. Borrower shall notify GBC promptly of all disputes or claims
relating to Receivables * on the regular reports to GBC. Borrower shall not
forgive, or settle any Receivable for less than payment in full, or agree to do
any of the foregoing, except that Borrower may do so, provided that: (i)
Borrower does so in good faith, in a commercially reasonable manner, in the
ordinary course of business, and in arm's length transactions, which are
reported to GBC on the regular reports provided to GBC; (ii) no Default or Event
of Default has occurred and is continuing; and (iii) taking into account all
such settlements and forgiveness, the total outstanding Loans and other
Obligations will not exceed the Credit Limit.

  * OR NETHERLANDS RECEIVABLES

  ** BORROWER SHALL CAUSE SYQUEST TECHNOLOGY B.V. NOT TO FORGIVE, OR SETTLE ANY
NETHERLANDS RECEIVABLE FOR ________________________ OR AGREE TO DO ANY OF THE
FOREGOING, EXCEPT THAT BORROWER MAY PERMIT SYQUEST TECHNOLOGY B.V. TO DO SO,
PROVIDED THAT: (I) SYQUEST TECHNOLOGY B.V. DOES SO IN GOOD FAITH, IN A
COMMERCIALLY REASONABLE MANNER, IN THE ORDINARY COURSE OF BUSINESS, AND IN ARM'S
LENGTH TRANSACTIONS, WHICH ARE REPORTED TO GBC ON THE REGULAR REPORTS PROVIDED
TO GBC; (II) NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING; AND
(III) TAKING INTO ACCOUNT ALL SUCH SETTLEMENTS AND FORGIVENESS, THE TOTAL
OUTSTANDING LOANS AND OTHER OBLIGATIONS WILL NOT EXCEED THE CREDIT LIMIT.

  4.6  RETURNS. Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower * in the ordinary course of
its business, Borrower shall promptly determine the reason for such return and
promptly issue a credit memorandum to the Account Debtor in the appropriate
amount (sending a copy to GBC). In the event any attempted return occurs after
the occurrence of any Event of Default, Borrower shall (i) not accept any return
without GBC's prior written consent, (ii) hold the returned Inventory in trust
for GBC (iii) segregate all returned Inventory from all of Borrower's other
property, (iv) conspicuously label the returned  Inventory  as  GBC's  property,
and (v) immediately notify GBC of the return of any Inventory, specifying the
reason for such return, the location and condition of the returned Inventory,
and on GBC's request deliver such returned Inventory to GBC. **

  * OR ANY INVENTORY TO SYQUEST TECHNOLOGY B.V.

  ** IN THE EVENT ANY ATTEMPTED RETURN OCCURS AFTER THE OCCURRENCE OF ANY EVENT
OF DEFAULT, BORROWER SHALL CAUSE SYQUEST TECHNOLOGY B.V. (I) NOT ACCEPT ANY
RETURN WITHOUT GBC'S PRIOR WRITTEN CONSENT, (II) HOLD THE RETURNED INVENTORY IN
TRUST FOR GBC, (III) SEGREGATE ALL RETURNED INVENTORY FROM ALL OF SYQUEST
TECHNOLOGY B.V.'S OTHER PROPERTY, (IV) CONSPICUOUSLY LABEL THE RETURNED
INVENTORY AS GBC'S PROPERTY, AND (V) IMMEDIATELY NOTIFY GBC OF THE RETURN OF ANY
INVENTORY, SPECIFYING THE REASON FOR SUCH RETURN, THE LOCATION AND CONDITION OF
THE RETURNED INVENTORY, AND ON GBC'S REQUEST DELIVER SUCH RETURNED INVENTORY TO
GBC.

  4.7  VERIFICATION. GBC may, from time to time, verify directly with the
respective Account Debtors the validity, amount and other matters relating to
the Receivables *, by means of mail, telephone or otherwise, either in the name
of Borrower or GBC or such other name as GBC may choose, and GBC or its designee
may, at any time, notify Account Debtors that it has a security interest in the
Receivables*.

  * AND THE NETHERLANDS RECEIVABLES, IN EACH CASE ON AND AFTER AN EVENT OF
DEFAULT

  4.8  NO LIABILITY. GBC shall not under any circumstances be responsible or
liable for any shortage or discrepancy in, damage to, or loss or destruction of,
any goods, the sale or other disposition of which gives rise to a Receivable *,
or for any error, act, omission, or delay of any kind occurring in the
settlement, failure to settle, collection or failure to collect any Receivable
*, or for settling any Receivable * in good faith for less than the full amount
thereof, nor shall GBC be deemed to 

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be responsible for any of Borrower's obligations under any contract or agreement
giving rise to a Receivable **. Nothing herein shall, however, relieve GBC from
liability for its own gross negligence or willful misconduct.

  * OR A NETHERLANDS RECEIVABLE

  ** OR ANY OF THE OBLIGATIONS OF SYQUEST TECHNOLOGY B.V. UNDER ANY CONTRACT OR
AGREEMENT GIVING RISE TO A NR

5. ADDITIONAL DUTIES OF THE BORROWER.

  5.1  INSURANCE. Borrower shall, at all times, insure all of the tangible
personal property Collateral and carry such other business insurance, with
insurers reasonably acceptable to GBC in such form and amounts as GBC may
reasonably require, and Borrower shall provide evidence of such insurance to
GBC, so that GBC is satisfied that such insurance is, at all times, in full
force and effect. All such insurance policies shall name GBC as an additional
loss payee, and shall contain a lenders loss payee endorsement in form
reasonably acceptable to GBC. Upon receipt of the proceeds of any such
insurance, GBC shall apply such proceeds in reduction of the Obligations as GBC
shall determine in its sole discretion, except that, provided no Default or
Event of Default has occurred and is continuing. GBC shall release to Borrower
insurance proceeds with respect to Equipment totaling less than $100,000, which
shall be utilized by Borrower for the replacement of the Equipment with respect
to which the insurance proceeds were paid. GBC may require reasonable assurance
that the insurance proceeds so released will be so used. If Borrower fails to
provide or pay for any insurance, GBC may, but is not obligated to, obtain the
same at Borrower's expense. Borrower shall promptly deliver to GBC copies of all
reports made to insurance companies.

  5.2  REPORTS. Borrower, at its expense, shall provide GBC with the written
reports set forth in the Schedule, and such other written reports with respect
to Borrower (including budgets, sales projections, operating plans and other
financial documentation), as GBC shall from time to time reasonably specify.
 
  5.3  ACCESS TO COLLATERAL, BOOKS AND RECORDS. At reasonable times, and on one
business day's notice, GBC, or its agents, shall have the right to inspect the
Collateral, and the right to audit and copy Borrower's books and records *. GBC
shall take reasonable steps to keep confidential all information obtained in any
such inspection or audit **, but GBC shall have the right to disclose any such
information to its auditors, regulatory agencies, and attorneys, and pursuant to
any subpoena or other legal process. *** be done more frequently than four times
per calendar year, provided that the foregoing limits shall not apply after the
occurrence of a Default or Event of Default. Borrower will not enter into any
agreement with any accounting firm, service bureau or third party to store
Borrower's books or records at any location other than Borrower's Address,
without first obtaining GBC's written consent, which may be conditioned upon
such accounting firm, service bureau or other third party agreeing to give GBC
the same rights with respect to access to books and records and related rights
as GBC has under this Agreement.

 * AND THE BOOKS AND RECORDS OF SYQUEST TECHNOLOGY B.V.

 ** AND SUCH OTHER INFORMATION AS BORROWER SUPPLIES TO GBC PURSUANT TO THIS
AGREEMENT

 *** AUDITS SHALL NOT

5.4  REMITTANCE OF PROCEEDS. All proceeds arising from the sale or other
disposition of any Collateral shall be delivered, in kind, by Borrower to GBC in
the original form in which received by Borrower not later than the following
business day after receipt by Borrower, to be applied to the Obligations in such
order as GBC shall determine; provided that, if no Default or Event of Default
has occurred and is continuing, and if no term loan is outstanding hereunder,
then Borrower shall not be obligated to remit to GBC the proceeds of the sale of
Equipment which is sold in the ordinary course of business, in a good-faith
arm's length transaction. Except for the proceeds of the sale of Equipment as
set forth above, Borrower shall not commingle proceeds of Collateral with any of
Borrower's other funds or property, and shall hold such proceeds separate and
apart from such other funds and property and in an express trust for GBC.
Nothing in this Section limits the restrictions on disposition of Collateral set
forth elsewhere in this Agreement.

5.5  NEGATIVE COVENANTS. Except as may be permitted in the Schedule, Borrower
shall not, without GBC's prior written consent, do any of the following: (i)
merge or consolidate with another corporation or entity; (ii) acquire any
assets, except in the ordinary course of business; (iii) enter into any other
transaction outside the ordinary course of business; (iv) sell or transfer any
Collateral, except that, provided no Default or Event of Default has occurred
and is continuing, Borrower may (a) sell finished Inventory in the ordinary
course of Borrower's business, and (b) if no term loan is outstanding hereunder,
sell Equipment in the ordinary course of business, in good-faith arm's length
transactions; (vi) sell any inventory on a sale-or-return, guaranteed sale,
consignment, or other contingent basis; (vii) make any loans of any money or
other assets; (viii) incur any debts, outside the ordinary course of business,
which would have a material, adverse effect on Borrower or on the prospect of
repayment of the Obligations; (ix) guarantee or otherwise become liable with
respect to the obligations of another party or entity; (x) pay or declare any
dividends on Borrower's stock (except for dividends payable solely in stock of
Borrower); (xi) 

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redeem, retire, purchase or otherwise acquire, directly or indirectly, any of
Borrower's stock; (xii) make any change in Borrower's capital structure which
would have a material adverse effect on Borrower or on the prospect of repayment
of the Obligations; or (xiii) dissolve or elect to dissolve; or (xiv) agree to
do any of the foregoing.
 
  5.6  LITIGATION COOPERATION. Should any third-party suit or proceeding be
instituted by or against GBC with respect to any Collateral or in any manner
relating to Borrower, Borrower shall, without expense to GBC make available
Borrower and its officers, employees and agents, and Borrower's books and
records, without charge, to the extent that GBC may deem them reasonably
necessary in order to prosecute or defend any such suit or proceeding.

  5.7  NOTIFICATION OF CHANGES. Borrower will promptly notify GBC in writing of
any change in its officers or directors, the opening of any new bank account or
other deposit account, and any material adverse change in the business or
financial affairs of Borrower.

  5.8  FURTHER ASSURANCES. Borrower agrees, at its expense, on request by GBC,
to execute all documents and take all actions, as GBC may deem reasonably
necessary or useful in order to perfect and maintain GBC's perfected security
interest in the Collateral, and in order to fully consummate the transactions
contemplated by this Agreement.

  5.9  INDEMNITY. Borrower hereby agrees to indemnify GBC and hold GBC harmless
from and against any and all claims, debts, liabilities, demands, obligations,
actions, causes of action, penalties, costs and expenses (including attorneys'
fees), of every nature, character and description, which GBC may sustain or
incur based upon or arising out of any of the Obligations, any actual or alleged
failure to collect and pay over any withholding or other tax relating to
Borrower or its employees, any relationship or agreement between GBC and
Borrower, any actual or alleged failure of GBC to comply with any writ of
attachment or other legal process relating to Borrower or any of its property,
or any other matter, cause or thing whatsoever occurred, done, omitted or
suffered to be done by GBC relating to Borrower or the Obligations (except any
such amounts sustained or incurred as the result of the gross negligence or
willful misconduct of GBC or any of its directors, officers, employees, agents,
attorneys, or any other person affiliated with or representing GBC).
Notwithstanding any provision in this Agreement to the contrary, the indemnity
agreement set forth in this Section shall survive any termination of this
Agreement and shall for all purposes continue in full force and effect.

6.  TERM.

  6.1  MATURITY DATE. This Agreement shall continue in effect until the maturity
date set forth on the Schedule (the "Maturity Date"); provided that the Maturity
Date shall automatically be extended, and this Agreement shall automatically and
continuously renew, for successive additional terms of one year each, unless one
party gives written notice to the other, not less than sixty days prior to the
next Maturity Date, that such party elects to terminate this Agreement effective
on the next Maturity Date.

  6.2  EARLY TERMINATION.  This Agreement may be terminated prior to the
Maturity Date as follows: (i) by Borrower, effective three business days after
written notice of termination is given to GBC or (ii) by GBC at any time after
the occurrence of an Event of Default, without notice, effective immediately. If
this Agreement is terminated by Borrower or by GBC under this Section 6.2.
Borrower shall pay to GBC a termination fee (the "Termination Fee") in the
amount shown on the Schedule. The Termination Fee shall be due and payable on
the effective date of termination and thereafter shall bear interest at a rate
equal to the highest rate applicable to any of the Obligations.

  6.3  PAYMENT OF OBLIGATIONS. On the Maturity Date or on any earlier effective
date of termination, Borrower shall pay and perform in full all Obligations,
whether evidenced by installment notes or otherwise, and whether or not all or
any part of such Obligations are otherwise then due and payable. Without
limiting the generality of the foregoing, if on the Maturity Date, or on any
earlier effective date of termination, there are any outstanding letters of
credit issued based upon an application, guarantee, indemnity or similar
agreement on the part of GBC, then on such date Borrower shall provide to GBC
cash collateral in an amount equal to 110% of the face amount of all such
letters of credit plus all interest, fees and costs due or (in GBC's estimation)
likely to become due in connection therewith, to secure all of the Obligations
relating to said letters of credit, pursuant to GBC's then standard form cash
pledge agreement. Notwithstanding any termination of this Agreement, all of
GBC's security interests in all of the Collateral and all of the terms and
provisions of this Agreement shall continue in full force and effect until all
Obligations have been paid and performed in full; provided that, without
limiting the fact that Loans are subject to the discretion of GBC. GBC may, in
its sole discretion, refuse to make any further Loans after termination. No
termination shall in any way affect or impair any right or remedy of GBC, nor
shall any such termination relieve Borrower of any Obligation to GBC, until all
of the Obligations have been paid and performed in full. Upon payment and
performance in 

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<PAGE>
 
full of all the Obligations and termination of this Agreement, GBC shall
promptly deliver to Borrower termination statements, requests for reconveyances
and such other documents as may be reasonably required to terminate GBC's
security interests.

7.  EVENTS OF DEFAULT AND REMEDIES.

  7.1  EVENTS OF DEFAULT. The occurrence of any of the following events shall
constitute an "Event of Default" under this Agreement, and Borrower shall give
GBC immediate written notice thereof, (a) Any warranty, representation,
statement, report or certificate made or delivered to GBC by Borrower or any of
Borrower's officers, employees or agents, now or in the future, shall be untrue
or misleading in a material respect; or (b) Borrower shall fail to pay when due
any Loan or any interest thereon or any other monetary Obligation; or (c) the
total Loans and other Obligations outstanding at any time shall exceed the
Credit Limit; or (d) Borrower shall fail to perform any non-monetary Obligation
which by its nature cannot be cured; or (e) Borrower shall fail to perform any
other non-monetary Obligation, which failure is not cured within 5 * business
days after the date performance is due; or (f) any levy, assessment, attachment,
seizure, lien or encumbrance (other than a Permitted Lien) is made on all or any
part of the Collateral which is not cured within 10 days after the occurrence of
the same; or (g) any default or event of default occurs under any obligation
secured by a Permitted Lien, which is not cured within any applicable cure
period or waived in writing by the holder of the Permitted Lien; or (h) Borrower
breaches any material contract or obligation, which has or may reasonably be
expected to have a material adverse effect on Borrower's business or financial
condition; or (i) dissolution, termination of existence, insolvency or business
failure of Borrower or any Guarantor; or appointment of a receiver, trustee or
custodian, for all or any part of the property of, assignment for the benefit of
creditors by, or the commencement of any proceeding by Borrower or any Guarantor
under any reorganization, bankruptcy, insolvency, arrangement, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, now or in
the future in effect; or (j) the commencement of any proceeding against Borrower
or any Guarantor under any reorganization, bankruptcy, insolvency, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, now or in the future in effect, which is not cured by the
dismissal thereof within 45 days after the date commenced; or (k) revocation or
termination of, or limitation or denial of liability upon, any guaranty of the
Obligations or any attempt to do any of the foregoing; or (l) revocation or
termination of, or limitation or denial of liability upon, any pledge of any
certificate of deposit, securities or other property or asset pledged by any
third party to secure any or all of the Obligations, or any attempt to do any of
the foregoing, or commencement of proceedings by or against any such third party
under any bankruptcy or insolvency law; or (m) Borrower makes any payment on
account of any indebtedness or obligation which has been subordinated to the
Obligations other than as permitted in the applicable subordination agreement,
or if any Person who has subordinated such indebtedness or obligations
terminates or in any way limits or terminates its subordination agreement; or
(n) there shall be a change in the record or beneficial ownership of an
aggregate of more than of the outstanding shares of stock of Borrower, in one or
more transactions, compared to the ownership of outstanding shares of stock of
Borrower in effect on the date hereof, without the prior written consent of GBC;
or (o) Borrower shall generally not pay its debts as they become due, or
Borrower shall conceal, remove or transfer any part of its property, with intent
to hinder, delay or defraud its creditors, or make or suffer any transfer of any
of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or (p) there shall be a material adverse change in
Borrower's business or financial condition **. GBC may cease making any Loans
hereunder during any of the above cure periods, and thereafter if an Event of
Default has occurred.

*  10

** OR (Q) THERE SHALL OCCUR A DEFAULT OR AN EVENT OF DEFAULT UNDER THE GUARANTY
OF EVEN DATE HEREWITH BETWEEN SYQUEST TECHNOLOGY B.V. IN FAVOR OF GBC OR UNDER
THE SECURITY AGREEMENT OF EVEN DATE HEREWITH BETWEEN SYQUEST TECHNOLOGY B.V. IN
FAVOR OF GBC.

  7.2  REMEDIES. Upon the occurrence and during the continuance of any Event of
Default, and at any time thereafter, GBC, at its option, and without notice or
demand of any kind (all of which are hereby expressly waived by Borrower), may
do any one or more of the following: (a) Cease making Loans or otherwise
extending credit to Borrower under this Agreement or any other document or
agreement; (b) Accelerate and declare all or any part of the Obligations to be
immediately due, payable, and performable, notwithstanding any deferred or
installment payments allowed by any instrument evidencing or relating to any
Obligation; (c) Take possession of any or all of the Collateral wherever it may
be found, and for that purpose Borrower hereby authorizes GBC without judicial
process to enter onto any of Borrower's premises without interference to search
for, take possession of, keep, store, or remove any of the Collateral, and
remain on the premises or cause a custodian to remain on the premises in
exclusive control thereof, without charge for so long as GBC deems it reasonably
necessary in order to complete the enforcement of its rights under this
Agreement or any other agreement; provided, however, that should GBC seek to
take possession of any of the Collateral by Court process, Borrower hereby
irrevocably waives: (i) any bond and any surety or security relating thereto
required by any statute, court rule or otherwise as an incident to such
Possession; (ii) any demand for possession prior to the commencement of any suit
or action to recover possession thereof; and (iii) any requirement that GBC

                                      -7-
<PAGE>
 
retain possession of, and not dispose of, any such Collateral until after trial
or final judgment; (d) Require Borrower to assemble any or all of the Collateral
and make it available to GBC at places designated by GBC which are reasonably
convenient to GBC and Borrower, and to remove the Collateral to such locations
as GBC may deem advisable; (e) Complete the processing, manufacturing or repair
of any Collateral prior to a disposition thereof and, for such purpose and for
the purpose of removal, GBC shall have the right to use Borrower's premises,
vehicles, hoists, lifts, cranes, equipment and all other property without
charge; (f) Sell, lease or otherwise dispose of any of the Collateral, in its
condition at the time GBC obtains possession of it or after further
manufacturing, processing or repair, at one or more public and/or private sales,
in lots or in bulk, for cash, exchange or other property, or on credit, and to
adjourn any such sale from time to time without notice other than oral
announcement at the time scheduled for sale. GBC shall have the right to conduct
such disposition on Borrower's premises without charge, for such time or times
as GBC deems reasonable, or on GBC's premises, or elsewhere and the Collateral
need not be located at the place of disposition. GBC may directly or through any
affiliated company purchase or lease any Collateral at any such public
disposition, and if permissible under applicable law, at any private
disposition. Any sale or other disposition of Collateral shall not relieve
Borrower of any liability Borrower may have if any Collateral is defective as to
title or physical condition or otherwise at the time of sale; (g) Demand payment
of, and collect any Receivables and General Intangibles comprising Collateral
and, in connection therewith, Borrower irrevocably authorizes GBC to endorse or
sign Borrower's name on all collections, receipts, instruments and other
documents, to take possession of and open mail addressed to Borrower and remove
therefrom payments made with respect to any item of the Collateral or proceeds
thereof, and, in GBC's sole discretion, to grant extensions of time to pay,
compromise claims and settle Receivables, General Intangibles and the like for
less than face value; and (h) Demand and receive possession of any of Borrower's
federal and state income tax returns and the books and records utilized in the
preparation thereof or referring thereto. All reasonable attorneys' fees,
expenses, costs, liabilities and obligations incurred by GBC with respect to the
foregoing shall be added to and become part of the Obligations, shall be due on
demand, and shall bear interest at a rate equal to the highest interest rate
applicable to any of the Obligations.

  7.3  STANDARDS FOR DETERMINING COMMERCIAL REASONABLENESS. Borrower and GBC
agree that a sale or other disposition (collectively, "sale") of any Collateral
which complies with the following standards will conclusively be deemed to be
commercially reasonable:  (i) Notice of the sale is given to Borrower at least
seven days prior to the sale, and, in the case of a public sale, notice of the
sale is published at least seven days before the sale in a newspaper of general
circulation in the county where the sale is to be conducted; (ii) Notice of the
sale describes the collateral in general, non-specific terms; (iii) The sale is
conducted at a place designated by GBC, with or without the Collateral being
present; (iv) The sale commences at any time between 8:00 a.m. and 6:00 p.m; (v)
Payment of the purchase price in cash or by cashier's check or wire transfer is
required; (vi) With respect to any sale of any of the Collateral. GBC may (but
is not obligated to) direct any prospective purchaser to ascertain directly from
Borrower any and all information concerning the same. GBC shall be free to
employ other methods of noticing and selling the Collateral, in its discretion,
if they are commercially reasonable.

  7.4  POWER OF ATTORNEY.  Upon the occurrence and during the continuance of any
Event of Default, without limiting GBC's other rights and remedies, Borrower
grants to GBC an irrevocable power of attorney coupled with an interest,
authorizing and permitting GBC (acting through any of its employees, attorneys
or agents) at any time, at its option, but without obligation, with or without
notice to Borrower, and at Borrower's expense, to do any or all of the
following, in Borrower's name or otherwise, but GBC agrees to exercise the
following powers in a commercially reasonable manner: (a) Execute on behalf of
Borrower any documents that GBC may, in its sole discretion, deem advisable in
order to perfect and maintain GBC's security interest in the Collateral, or in
order to exercise a right of Borrower or GBC, or in order to fully consummate
all the transactions contemplated under this Agreement, and all other present
and future agreements; (b) Execute on behalf of Borrower any document
exercising, transferring or assigning any option to purchase, sell or otherwise
dispose of or to lease (as lessor or lessee) any real or personal property which
is part of GBC's Collateral or in which GBC has an interest; (c) Execute on
behalf of Borrower, any invoices relating to any Receivable, any draft against
any Account Debtor and any notice to any Account Debtor, any proof of claim in
bankruptcy, any Notice of Lien, claim of mechanic's, materialman's or other
lien, or assignment or satisfaction of mechanic's, materialman's or other lien;
(d) Take control in any manner of any cash or non-cash items of payment or
proceeds of Collateral; endorse the name of Borrower upon any instruments, or
documents, evidence of payment or Collateral that may come into GBC's
possession; (e) Endorse all checks and other forms of remittances received by
GBC; (f) Pay, contest or settle any lien, charge, encumbrance, security interest
and adverse claim in or to any of the Collateral, or any judgment based thereon,
or otherwise take any action to terminate or discharge the same; (g) Grant
extensions of time to pay, compromise claims and settle Receivables and General
Intangibles for less than face value and execute all releases and other
documents in connection therewith; (h) Pay any sums required on account of
Borrowers taxes or to secure the release of any liens therefor, or both; (i)
Settle and adjust, and give releases of, any insurance claim that relates to any
of the Collateral and obtain payment therefor; (j) Instruct any third party
having custody or control of any books or records belonging to, or relating to,
Borrower to give GBC the same rights of access and other rights with respect
thereto as GBC has under this Agreement; and (k) Take any action or pay any sum
required of Borrower pursuant to this Agreement and any other present or 

                                      -8-
<PAGE>
 
future agreements. Any and all reasonable sums paid and any and all reasonable
costs, expenses, liabilities, obligations and reasonable attorneys' fees
incurred by GBC with respect to the foregoing shall be added to and become part
of the Obligations, shall be payable on demand, and shall bear interest at a
rate equal to the highest interest rate applicable to any of the Obligations. In
no event shall GBC's rights under the foregoing power of attorney or any of
GBC's other rights under this Agreement be deemed to indicate that GBC is in
control of the business, management or properties of Borrower.

  7.5  APPLICATION OF PROCEEDS. All proceeds realized as the result of any sale
or other disposition of the Collateral shall be applied by GBC first to the
reasonable costs, Expenses, liabilities, obligations and attorneys' fees
incurred by GBC in the exercise of its rights under this Agreement, second to
the interest due upon any of the Obligations, and third to the principal of the
Obligations, in such order as GBC shall determine in its sole discretion. Any
surplus shall be paid to Borrower or other persons legally entitled thereto;
Borrower shall remain liable to GBC for any deficiency. If GBC, in its sole
discretion, directly or indirectly enters into a deferred payment or other
credit transaction with any purchaser at any sale of Collateral, GBC shall have
the option, exercisable at any time, in its sole discretion, of either reducing
the Obligations by the principal amount of purchase price or deferring the
reduction of the Obligations until the actual receipt by GBC of the cash
therefor.

  7.6  REMEDIES CUMULATIVE. In addition to the rights and remedies set forth in
this Agreement, GBC shall have all the other rights and remedies accorded a
secured party under the California Uniform Commercial Code and under all other
applicable laws, and under any other instrument or agreement now or in the
future entered into between GBC and Borrower, and all of such rights and
remedies are cumulative and none is exclusive. Exercise or partial exercise by
GBC of one or more of its rights or remedies shall not be deemed an election,
nor bar GBC from subsequent exercise or partial exercise of any other rights or
remedies.  The failure or delay of GBC to exercise any rights or remedies shall
not operate as a waiver thereof, but all rights and remedies shall continue in
full force and effect until all of the Obligations have been fully paid and
performed.

8.  DEFINITIONS. As used in this Agreement, the following terms have the
following meanings:
 
 "Account Debtor" means the obligor on a Receivable *.
 * OR A NETHERLANDS RECEIVABLE

  "Affiliate" means, with respect to any Person, a relative, partner,
shareholder, director, officer, or employee of such Person, or any parent or
subsidiary of such Person, or any Person controlling, controlled by or under
common control with such Person.
 
  "Agreement"  and  "this Agreement" means this Loan and Security Agreement and
all modifications and amendments thereto extensions thereof, and replacements
therefor.

 "Business Day" means a day on which GBC is open for business.
 
  "Code" means the Uniform Commercial Code as adopted and in effect in the State
of California from time to time.
 
 "Collateral" has the meaning set forth in Section 2.1 above.
 
  "Default"  means any event which with notice or passage of time or both would
constitute an Event of Default.
 
 "Deposit Account" has the meaning set forth in Section 9105 of the Code.
 
  "Eligible Inventory" means Inventory which GBC, in its sole judgment, deems
eligible for borrowing, based on such considerations as GBC may from time to
time deem appropriate.  Without limiting the fact that the determination of
which Inventory is eligible for borrowing is a matter of GBC's discretion.
Inventory which does not meet the following requirements will not be deemed to
be Eligible Inventory: Inventory which (i) consists of finished goods, in good,
new and salable condition which is not perishable, not obsolete or
unmerchantable, and is not comprised of raw materials, work in process,
packaging materials or supplies; (ii) meets all applicable governmental
standards; (iii) has been manufactured in compliance with the Fair Labor
Standards Act; (iv) conforms in all respects to the warranties and
representations set forth in this Agreement; (v) is at all times subject to
GBC's duly perfected, first priority security interest; and (vii) is situated at
Borrower's Address or at one of Borrower's other locations set forth on the
Schedule.

  "Eligible Receivables" means unconditional Receivables arising in the ordinary
course of Borrower's business ** from the completed sale of goods or rendition
of services, which GBC, in its sole judgment, shall deem eligible for borrowing,
based on such considerations as GBC may from time to time deem appropriate ***.

 * AND NETHERLANDS RECEIVABLES

                                      -9-
<PAGE>
 
  ** AND, WITH RESPECT TO THE NETHERLANDS RECEIVABLES, UNCONDITIONAL NETHERLANDS
RECEIVABLES ARISING IN THE ORDINARY COURSE OF SYQUEST TECHNOLOGY B.V.'S
BUSINESS, IN EACH CASE

  *** INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO THE NETHERLANDS
RECEIVABLES, THAT THE GUARANTY AND SECURITY DOCUMENTATION AND ACTIONS (AS
DEFINED IN THE SCHEDULE HERETO) HAVE BEEN EXECUTED AND TAKEN, AS APPLICABLE

  "Equipment" means all of Borrower's present and here-after acquired machinery,
molds, machine tools, motors, furniture, equipment, furnishings, fixtures, trade
fixtures, motor vehicles, tools, parts, dyes, jigs, goods and other tangible
personal property (other than Inventory) of every kind and description used in
Borrower's operations or owned by Borrower and any interest in any of the
foregoing, and all attachments, accessories, accessions, replacements
substitutions, additions or improvements to any of the foregoing, wherever
located.
 
 "Event of Default" means any of the events set forth in Section 7.1 of this
Agreement.
 
  "General Intangibles" means all general intangibles of Borrower, whether now
owned or hereafter created or acquired by Borrower, including, without
limitation, all choses in action, causes of action, corporate or other business
records. Deposit Accounts, inventions, designs, drawings, blueprints, patents,
patent applications, trademarks and the goodwill of the business symbolized
thereby, names, trade names, trade secrets, goodwill, copyrights, registrations,
licenses, franchises, customer lists, security and other deposits, rights in all
litigation presently or hereafter pending for any cause or claim (whether in
contract, tort or otherwise), and all judgments now or hereafter arising
therefrom, all claims of Borrower against GBC, rights to purchase or sell real
or personal property, rights as a licensor or licensee of any kind, royalties,
telephone numbers, proprietary information, purchase orders, and all insurance
policies and claims (including life insurance, key man insurance, credit
insurance, liability insurance, property insurance and other insurance), tax
refunds and claims, computer programs, discs, tapes and tape files, claims under
guaranties, security interests or other security held by or granted to Borrower,
all rights to indemnification and all other intangible property of every kind
and nature (other than Receivables).

"Guarantor" means any Person who has guaranteed any of the Obligations.

"Inventory" means all of Borrower's now owned and hereafter acquired goods,
merchandise or other personal property wherever located, to be furnished under
any contract of service or held for sale or lease (including all raw materials,
work in process, finished goods and goods in transit), and all materials and
supplies of every kind, nature and description which are or might be used or
consumed in Borrower's business or used in connection with the manufacture,
packing, shipping, advertising, selling or finishing of such goods, merchandise
or other personal property, and all warehouse receipts, documents of title and
other documents representing any of the foregoing.

  "LIBOR Rate"  means (i) the one-month London Interbank Offered Rate for
deposits in U.S. dollars, as shown each day in The Wall Street Journal (Eastern
Edition) under the caption "Money Rates - London Interbank Offered Rates
(LIBOR)"; or (ii) if the Wall Street Journal does not publish such rate, the
offered one-month rate for deposits in U.S. dollars which appears on the Reuters
Screen LIBO Page as of 10:00 a.m., New York time, each day, provided that if at
least two rates appear on the Reuters Screen LIBO Page on any day, the "LIBOR
Rate" for such day shall be the arithmetic mean of such rates; or (iii) if the
Wall Street Journal does not publish such rate on a particular day and no such
rate appears on the Reuters Screen LIBO Page on such day, the rate per annum at
which deposits in U.S. dollars are offered to the principal London office of The
Chase Manhattan Bank, N.A. in the London interbank market at approximately 11:00
A.M., London time, on such day in an amount approximately equal to the
outstanding principal amount of the Loans, for a period of one month, in each of
the foregoing cases as determined in good faith by GBC, which determination
shall be conclusive absent manifest error.
 
  "NETHERLANDS RECEIVABLES" MEANS ALL NOW OWNED AND HEREAFTER ACQUIRED ACCOUNTS
(WHETHER OR NOT EARNED BY PERFORMANCE), LETTERS OF CREDIT, CONTRACT RIGHTS,
CHATTEL PAPER, INSTRUMENTS, SECURITIES, DOCUMENTS AND ALL OTHER FORMS OF
OBLIGATIONS AT ANY TIME OWING TO SYQUEST TECHNOLOGY B.V., ALL GUARANTIES AND
OTHER SECURITY THEREFOR, ALL MERCHANDISE RETURNED TO OR REPOSSESSED BY SYQUEST
TECHNOLOGY B.V., AND ALL RIGHTS OF STOPPAGE IN TRANSIT AND ALL OTHER RIGHTS OR
REMEDIES OF UNPAID VENDOR, LIENOR OR SECURED PARTY.
 
  "Obligations" means all present and future Loans, advances, debts,
liabilities, obligations, guaranties, covenants, duties and indebtedness at any
time owing by Borrower to GBC, whether evidenced by this Agreement or any note
or other instrument or document, whether arising from an extension of credit,
opening of a letter of credit, banker's acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect (including, without
limitation, those acquired by assignment and any participation by GBC in
Borrower's debts owing to others), absolute or contingent, due or to become due,
including, without limitation, all interest, charges, expenses, fees, attorneys
fees, expert witness fees, audit fees, letter of credit fees, loan fees,

                                      -10-
<PAGE>
 
termination fees, minimum interest charges and any other sums chargeable to
Borrower under this Agreement or under any other present or future instrument or
agreement between Borrower and GBC.

  "Permitted Liens" means the following: (i) purchase money security interests
in specific items of Equipment; (ii) leases of specific items of Equipment;
(iii) liens for taxes not yet payable; (iv) additional security interests and
liens which are subordinate to the security interest in favor of GBC and are
consented to in writing by GBC (which consent shall not be unreasonably
withheld); (v) security interests being terminated substantially concurrently
with this Agreement; (vi) liens of materialmen, mechanics, warehousemen,
carriers, or other similar liens arising in the ordinary course of business and
securing obligations which are not delinquent; (vii) liens incurred in
connection with the extension, renewal or refinancing of the indebtedness
secured by liens of the type described above in clauses (i) or (ii) above,
provided that any extension, renewal or replacement lien is limited to the
property encumbered by the existing lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase; (viii)
Liens in favor of customs and revenue authorities which secure payment of
customs duties in connection with the importation of goods*.  GBC will have the
right to require, as a condition to its consent under subparagraph (iv) above,
that the holder of the additional security interest or lien sign an
intercreditor agreement on GBC's then standard form, acknowledge that the
security interest is subordinate to the security interest in favor of GBC, and
agree not to take any action to enforce its subordinate security interest so
long as any Obligations remain outstanding, and that Borrower agree that any
uncured default in any obligation secured by the subordinate security interest
shall also constitute an Event of Default under this Agreement.
 
  "Person" means any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

  "Receivables" means all of Borrower's now owned and hereafter acquired
accounts (whether or not earned by  performance), letters of credit, contract
rights, chattel paper, instruments, securities, documents and all other forms of
obligations at any time owing to Borrower, all guaranties and other security
therefor, all merchandise returned to or repossessed by Borrower, and all rights
of stoppage in transit and all other rights or remedies of an unpaid vendor,
lienor or secured party.

  Other Terms.  All accounting terms used in this Agreement, unless otherwise
indicated, shall have the meanings given to such terms in accordance with
generally accepted accounting principles, consistently applied. All other terms
contained in this Agreement, unless otherwise indicated, shall have the meanings
provided by the Code, to the extent such terms are defined therein.

9. GENERAL PROVISIONS

  9.1  INTEREST COMPUTATION. In computing interest on the Obligations, all
checks, wire transfers and other items of payment received by GBC (including
proceeds of Receivables * and payment of the Obligations in full) shall be
deemed applied by GBC on account of the Obligations three Business Days after
receipt by GBC of immediately available funds. GBC shall not, however, be
required to credit Borrower's account for the amount of any item of payment
which is unsatisfactory to GBC in its discretion, and GBC may charge Borrower's
Loan account for the amount of any item of payment which is returned to GBC
unpaid.

 * AND NETHERLANDS RECEIVABLES

  9.2  APPLICATION OF PAYMENTS. All payments with respect to the Obligations may
be applied, and in GBC's sole discretion reversed and re-applied, to the
Obligations, in such order and manner as GBC shall determine in its sole
discretion.

  9.3 CHARGES TO ACCOUNT. GBC may, in its discretion, require that Borrower pay
monetary Obligations in cash to GBC, or charge them to Borrower's Loan account,
in which event they will bear interest at the same rate applicable to the Loans.
 
  9.4  MONTHLY ACCOUNTINGS.  GBC shall provide Borrower monthly with an account
of advances, charges, expenses and payments made pursuant to this Agreement.
Such account shall be deemed correct, accurate and binding on Borrower and an
account stated (except for reverses and reapplications of payments made and
corrections of errors discovered by GBC), unless Borrower notifies GBC in
writing to the contrary within sixty days after each account is rendered,
describing the nature of any alleged errors or admissions.

  9.5  NOTICES.  All notices to be given under this Agreement shall be in
writing and shall be given either personally * or by reputable private delivery
service or by regular first-class mail, or certified mail return receipt
requested, addressed to GBC or Borrower at the addresses shown in the heading to
this Agreement, or at any other address designated in writing by one party to
the other party. All notices shall be deemed to have been given upon delivery in
the case of notices personally delivered, ** or 

                                      -11-
<PAGE>
 
at the expiration of one business day following delivery to the private delivery
service, or two business days following the deposit thereof in the United States
mail, with postage prepaid.

  * OR BY FACSIMILE TRANSMISSION (AT 310-335-9794 WITH RESPECT TO GBC AND 510-
226-4100 WITH RESPECT TO BORROWER, OR AT ANY OTHER FACSIMILE NUMBER DESIGNATED
IN WRITING BY ONE PARTY TO THE OTHER PARTY)

  ** OR IMMEDIATELY UPON SENDING AND UPON CONFIRMATION OF RECEIPT IN THE CASE OF
NOTICES DELIVERED BY FACSIMILE TRANSMISSION,

  9.6  SEVERABILITY.  Should any provision of this Agreement be held by any
court of competent jurisdiction to be void or unenforceable, such defect shall
not affect the remainder of this Agreement, which shall continue in full force
and effect.

  9.7  INTEGRATION.  This Agreement and such other written agreements, documents
and instruments as may be executed in connection herewith are the final, entire
and complete agreement between Borrower and GBC and supersede all prior and
contemporaneous negotiations and oral representations and agreements, all of
which are merged and integrated in this Agreement. There are no oral
understandings, representations or agreements between the parties which are not
set forth in this Agreement or in other written agreements signed by the parties
in connection herewith.

  9.8  WAIVERS. The failure of GBC at any time or times to require Borrower to
strictly comply with any of the provisions of this Agreement or any other
present or future agreement between Borrower and GBC shall not waive or diminish
any right of GBC later to demand and receive strict compliance therewith. Any
waiver of any default shall not waive or affect any other default, whether prior
or subsequent, and whether or not similar. None of the provisions of this
Agreement or any other agreement now or in the future executed by Borrower and
delivered to GBC shall be deemed to have been waived by any act or knowledge of
GBC or its agents or employees, but only by a specific written waiver signed by
an authorized officer of GBC and delivered to Borrower. Borrower waives demand,
protest, notice of protest and notice of default or dishonor, notice of payment
and nonpayment, release, compromise, settlement; extension or renewal of any
commercial paper, instrument, account, General Intangible, document or guaranty
at any time held by GBC on which Borrower is or may in any way be liable, and
notice of any action taken by GBC, unless expressly required by this Agreement.

  9.9  AMENDMENT. The terms and provisions of this Agreement may not be waived
or amended, except in a writing executed by Borrower and a duly authorized
officer of GBC.

  9.10 TIME OF ESSENCE. Time is of the essence in the performance by Borrower of
each and every obligation under this Agreement.

  9.11 ATTORNEYS FEES AND COST. Borrower shall reimburse GBC for all
reasonable attorneys' fees and all filing, recording, search, title insurance,
appraisal, audit, and other reasonable costs incurred by GBC, pursuant to, or in
connection with, or relating to this Agreement (whether or not a lawsuit is
filed), including, but not limited to, any reasonable attorneys fees and costs
GBC incurs in order to do the following, prepare and negotiate this Agreement
and the documents relating to this Agreement; obtain legal advice in connection
with this Agreement or Borrower; enforce, or seek to enforce, any of its rights;
prosecute actions against, or defend actions by, Account Debtors; commence,
intervene in, or defend any action or proceeding; initiate any complaint to be
relieved of the automatic stay in bankruptcy; file or prosecute any probate
claim, bankruptcy claim, third-party claim, or other claim; examine, audit,
copy, and inspect any of the Collateral or any of Borrower's books and records;
protect, obtain possession of, lease, dispose of, or otherwise enforce GBC's
security interest in, the Collateral; and otherwise represent GBC in any
litigation relating to Borrower. If either GBC or Borrower files any lawsuit
against the other predicated on a breach of this Agreement, the prevailing party
in such action shall be entitled to recover its reasonable costs and attorneys'
fees, including (but not limited to) reasonable attorneys' fees and costs
incurred in the enforcement of, execution upon or defense of any order, decree,
award or judgment. All attorneys' fees and costs to which GBC may be entitled
pursuant to this Paragraph shall immediately become part of Borrower's
Obligations, shall be due on demand, and shall bear interest at a rate equal to
the highest interest rate applicable to any of the Obligations.

  9.12 BENEFIT OF AGREEMENT. The provisions of this Agreement shall be binding
upon and inure to the benefit of the  respective successors, assigns, heirs,
beneficiaries and representatives of Borrower and GBC; provided, however, that
Borrower may not assign or transfer any of its rights under this Agreement
without the prior written consent of GBC, and any prohibited assignment shall be
void. No consent by GBC to any assignment shall release Borrower from its
liability for the Obligations.

  9.13 JOINT AND SEVERAL LIABILITY. If Borrower consists of more than one
Person, their liability shall be joint and several, and the compromise of any
claim with, or the release of, any Borrower shall not constitute a compromise
with, or a release of, any other Borrower.

                                      -12-
<PAGE>
 
  9.14   LIMITATION OF ACTIONS. Any claim or cause of action by Borrower against
GBC, its directors, officers, employees, agents, accountants or attorneys, based
upon, arising from, or relating to this Loan Agreement, or any other present or
future document or agreement, or any other transaction contemplated hereby or
thereby or relating hereto or thereto, or any other matter, cause or thing
whatsoever, occurred, done, omitted or suffered to be done by GBC, its
directors, officers, employees, agents, accountants or attorneys, shall be
barred unless asserted by Borrower by the commencement of an action or
proceeding in a court of competent jurisdiction by the filing of a complaint
within one year after the first act, occurrence or omission upon which such
claim or cause of action, or any part thereof, is based, and the service of a
summons and complaint on an officer of GBC, or on any other person authorized to
accept service on behalf of GBC, within thirty (30) days thereafter. Borrower
agrees that such one-year period is a reasonable and sufficient time for
Borrower to investigate and act upon any such claim or cause of action. The one-
year period provided herein shall not be waived, tolled, or extended except by
the written consent of GBC in its sole discretion. This provision shall survive
any termination of this Loan Agreement or any other present or future agreement.

  9.15  PARAGRAPH HEADINGS; CONSTRUCTION. Paragraph headings are only used in
this Agreement for convenience. Borrower and GBC acknowledge that the headings
may not describe completely the subject matter of the applicable paragraph, and
the headings shall not be used in any manner to construe, limit, define or
interpret any term or provision of this Agreement.  The term "including,"
whenever used in this Agreement, shall mean "including (but not limited to)."
This Agreement has been fully reviewed and negotiated between the parties and no
uncertainty or ambiguity in any term or provision of this Agreement shall be
construed strictly against GBC or Borrower under any rule of construction or
otherwise.

  9.16  GOVERNING LAW; JURISDICTION; VENUE.  This Agreement and all acts and
transactions hereunder and all rights and obligations of GBC and Borrower shall
be governed by the laws of the State of California. As a material part of the
consideration to GBC to enter into this Agreement, Borrower (i) agrees that all
actions and proceedings relating directly or indirectly to this Agreement shall,
at GBC's option, be litigated in courts located within California, and that the
exclusive venue therefor shall be Los Angeles County; (ii) consents to the
jurisdiction and venue of any such court and consents to service of process in
any such action or proceeding by personal delivery or any other method permitted
by law; and (iii) waives any and all rights Borrower may have to object to the
jurisdiction of any such court, or to transfer or change the venue of any such
action or proceeding.

  9.17 MUTUAL WAIVER OF JURY TRIAL. BORROWER, SYQUEST TECHNOLOGY B.V. AND GBC
EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED
UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER
PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN GBC AND BORROWER OR GBC AND
SYQUEST TECHNOLOGY B.V., OR ANY CONDUCT, ACTS OR OMISSIONS OF GBC OR BORROWER OR
SYQUEST TECHNOLOGY B.V. OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH GBC OR BORROWER OR SYQUEST
TECHNOLOGY B.V., IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE.

BORROWER:
          SYQUEST TECHNOLOGY, INC.
          By ___________________________________
             Vice President
 
          By ___________________________________
             Ass't Secretary

GBC:      Accepted as of January 23, 1996
          GREYROCK BUSINESS CREDIT,
          a Division of NationsCredit Commercial
          Corporation
          By ____________________________________
          Title  ________________________________

ACKNOWLEDGED BY:
          SYQUEST TECHNOLOGY B.V.

          BY__________________________
          TITLE________________________

                                      -13-
<PAGE>
 
GREYROCK
BUSINESS
CREDIT

A NATIONSBANK COMPANY


                                  SCHEDULE TO
                          LOAN AND SECURITY AGREEMENT

BORROWER:      SYQUEST TECHNOLOGY, INC.
ADDRESS:       47071 BAYSIDE PARKWAY
               FREMONT, CALIFORNIA 94538

DATE:          JANUARY 17, 1996

This Schedule is an integral part of the Loan and Security Agreement between
Greyrock Business CREDIT, A DIVISION OF NATIONSCREDIT COMMERCIAL CORPORATION
("GBC") and the above-borrower ("Borrower") of even date.

1. CREDIT LIMIT
(Section 1.1)          
             An amount not to exceed the lesser of (I) $30,000,000 at any one
             time outstanding; or (ii) 75% (the "Advance Rate") of the amount of
             Borrower's Eligible Receivables (as defined in Section 8 above);

             PROVIDED that with respect to the Netherlands Receivables the
             Advance Rate shall be 60% of the amount of such Eligible
             Receivables, provided, further, that the Loans outstanding
             regarding the Netherlands Receivables (the "Netherlands Loans")
             shall not exceed $7,000,000 at any one time outstanding, provided,
             further, there shall no Netherlands Loans outstanding during each
             Cleanup Period (as defined below). "Cleanup Period" means the time
             period starting on the last day of each of the Borrower's fiscal
             quarters and ending on the 21st day of the succeeding quarter.

2. INTEREST.

     INTEREST RATE (Section 1.2):

             The interest rate in effect throughout each calendar month during
             the term of this Agreement shall be the highest "LIBOR Rate" in
             effect during such month, plus 4.825% per annum, provided that the
             interest rate in effect in each month shall not be less than 8.00%
             per annum. and provided that the interest charged for each month
             shall be a minimum of $10,000, regardless of the amount of the
             Obligations outstanding. Interest shall be calculated on the basis
             of a 360-day year for the actual number of days elapsed. "LIBOR
             Rate" has the meaning set forth in Section 8 above.

                                      -1-
<PAGE>
 
3. FEES (Section 1.3/Section 6.2):

     Loan Fee:         $300,000, payable concurrently herewith.

     Termination Fee:  $5,000 per month for each month (or portion thereof) from
                       the effective date of termination to the Maturity Date,
                       provided that if Silicon Valley Bank replaces GBC as the
                       lender to the Borrower in connection with any such
                       termination of this Agreement, then no Termination Fee
                       shall be due.

     NSF Check Charge: $15.00 per item.

     Wire Transfers:   $15.00 per transfer

4. MATURITY DATE
   (Section 6.1):      JANUARY 31, 1997, subject to automatic renewal as
                       provided in Section 6.1 above, and early termination as
                       provided in Section 6.2 above.

5. REPORTING.
   (Section 5.2):

                       Borrower shall provide GBC with the following:

                       1. Annual financial statements, as soon as available, and
                          in any event within 90 days following the end of
                          Borrower's fiscal year, certified by independent
                          certified public accountants acceptable to GBC.

                       2. Quarterly unaudited financial statements, as soon as
                          available, and in any event within 45 days after the
                          end of each fiscal quarter of Borrower.

                       3. Monthly Receivable agings, aged by invoice date,
                          within 10 days after the end of each month relating to
                          the Receivables and the Netherlands Receivables.

                       4. Monthly accounts payable agings, aged by invoice date,
                          and outstanding or held check registers within 10 days
                          after the end of each month.

6. BORROWER INFORMATION:

     PRIOR NAMES OF
     BORROWER
       (Section 3.2):     None

    PRIOR TRADE
    NAMES OF BORROWER
       (Section 3.2):     Tota, SyDos

                                      -2-
<PAGE>
 
    EXISTING TRADE
    NAMES OF BORROWER
       (Section 3.2):          SyQuest Technology, EZ Store

    OTHER LOCATIONS AND
    ADDRESSES (Section 3.3):   See Exhibit A hereto

    MATERIAL ADVERSE
    LITIGATION (Section 3.10): None

7. OTHER COVENANTS:

                               Borrower shall at all times comply with all of
                               the following additional covenants:

                               (1) Within 45 days from the making of the first
                                   Loan hereunder, Borrower shall cause SyQuest
                                   Technology B.V. to enter into a guaranty,
                                   security agreement and related documents and
                                   agreements in favor of GBC, in such form and
                                   containing such provisions as are acceptable
                                   to GBC in its discretion and Borrower shall
                                   cause SyQuest Technology B.V. to take such
                                   actions as GBC determines are necessary or
                                   desirable in connection therewith
                                   (collectively, the "Guaranty and Security
                                   Documentation and Actions"), including,
                                   without limitation, entering into such
                                   documents, instruments and agreements and
                                   taking such actions as GBC determines are
                                   necessary or desirable under the law of the
                                   Netherlands regarding the making of a
                                   guaranty by SyQuest Technology B.V. and the
                                   giving by SyQuest Technology B.V. of a
                                   security interest in its personal property
                                   assets in favor of GBC.

                               (2) Within 45 days from the making of the first
                                   Loan hereunder at the request of GBC,
                                   Borrower shall cause SyQuest Technology Pte
                                   Ltd to enter into a guaranty in favor of GBC
                                   and such additional documents, instruments
                                   and agreements as GBC determines are
                                   necessary or desirable the law of Singapore
                                   regarding the making of a guaranty in favor
                                   of GBC.

                               (3) Within 45 days from the making of the first
                                   Loan hereunder, Borrower shall execute and
                                   deliver to GBC such security agreements and
                                   other agreements, instruments and documents
                                   that GBC determines are necessary or
                                   desirable in order for GBC to establish and
                                   perfect a security interest in the patents
                                   and trademarks of Borrower.

Borrower:                                    GBC:
SYQUEST TECHNOLOGY, INC.                     GREYROCK BUSINESS CREDIT,
                                             a Division of NationsCredit 
By__________________________________         Commercial Corporation
  Vice President                               
                                             By_________________________________
By___________________________________                                          
  Ass't Secretary                            Title    Managing Director 
                                                   _____________________________

                                      -3-
<PAGE>
 
SINGAPORE
---------
19 Kallang Ave
#03-151/163
Singapore, 1233

PENANG
------
Plot 557, Lorong Perusahaan 4
Prai Free Trade Zone, Phase 1
13600 Perai, Seberang Perai
Penang
Malaysia

NETHERLANDS
-----------
Siriusdreef 43-45
2132 WT Hoofddorp
The Netherlands

JAPAN
-----
8F, Yumoto Bldg.
1-2-6, Higashi-Nihonbashi
Chuo-ku, tokyo
103 Japan

UNITED KINGDOM
--------------
c/o Swallowfield Office Services Ltd.
Wyvols Court, Swallowfield,
Nr. Reading, Berkshire RG7 1PY

FRANCE
------
55, rue Emile Landrin
F-92100 Boulogne, France



                                   EXHIBIT A
<PAGE>
 
CALIFORNIA
----------
_________ Bayside Parkway
Fremont, CA 94538

2605-A Winchester Blvd.
Campbell, CA 95008

EZ STORE
--------
46690 Mohave Drive
Fremont, Ca 94539

COLORADO
--------
3005 Center Green Drive, Suite 100
Boulder, CO 80301