EXHIBIT 10.1
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CHANGE IN TERMS AGREEMENT
PRINCIPAL LOAN DATE MATURITY LOAN NO CALL/COLL ACCOUNT OFFICER INITIAL
$6,000,000.00 1-31-2005 02-18-2005 92018206 636AW /s/AW
References in the shaded area are for Lender's use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
Borrower: I/OMAGIC CORPORATION Lender: UNITED NATIONAL BANK
4 MARCONI INTERNATIONAL DEPARTMENT
IRVINE, CA 92618 855 SOUTH ATLANTIC BLVD.,
MONTEREY PARK, CA 91754
(626) 281-5975
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PRINCIPAL AMOUNT: $6,000,000.00 INITIAL RATE: 6.000%
DATE OF AGREEMENT: JANUARY 31, 2005
DESCRIPTION OF EXISTING INDEBTEDNESS. THIS CHANGE IN TERMS AGREEMENT REFERS TO
THE LOAN EVIDENCED BY THE PROMISSORY NOTE DATED AUGUST 15, 2003 IN FAVOR OF BANK
EXECUTED BY I/OMAGIC CORPORATION IN THE AMOUNT OF $6,000,000.00 PAYABLE IN FULL
ON SEPTEMBER 1, 2004 AND EXTENDED THE MATURITY OF THE NOTE TO JANUARY 31, 2005
AS EVIDENCED BY THE CHANGE IN TERMS AGREEMENT DATED DECEMBER 1, 2004.
DESCRIPTION OF COLLATERAL.
1) 1ST POSITION UCC FINANCING STATEMENT FILED ON JULY 30,2003 AT SECRETARY OF
STATE, SACRAMENTO, CA AS INSTRUMENT #0321260018.
2) 1ST POSITION UCC FINANCING STATEMENT FILED ON JULY 30, 2003 AT STATE OF
NEVADA AS INSTRUMENT #2003020439-1.
DESCRIPTION OF CHANGE IN TERMS. TO EXTEND THE MATURITY OF THE NOTE TO FEBRUARY
18, 2005.
CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of
the original obligation or obligations, including all agreements evidenced or
securing the obligation(s), remain unchanged and in full force and effect.
Consent by Lender to this Agreement does not waive Lender's right to strict
performance of the obligation(s) as changed, nor obligate Lender to make any
future change in terms. Nothing in this Agreement will constitute a satisfaction
of the obligation(s). It is the intention of Lender to retain as liable parties
all makers and endorsers of the original obligation(s), including accommodation
parties, unless a party is expressly released by Lender in writing. Any maker or
endorser, including accommodation makers, will not be released by virtue of this
Agreement. If any person who signed the original obligation does not sign this
Agreement below, then all persons signing below acknowledge that this Agreement
Is given conditionally, based on the representation to Lender that the
non-signing party consents to the changes and provisions of this Agreement or
otherwise will not be released by it. This waiver applies not only to any
initial extension, modification or release, but also to all such subsequent
actions.
BUSINESS LOAN AGREEMENT (ASSET BASED). This Note is the Note referred to in the
Business Loan Agreement (ASSET BASED) dated August 15, 2003, between the
Borrower and Bank, as at any time amended (the "Business Loan Agreement (ASSET
BASED)"). Notwithstanding the paragraph entitled "DEFAULT" above and in addition
thereto, upon the occurrence of an event of default as defined In the Business
Loan Agreement (ASSET BASED), all sums of principal and interest the remaining
unpaid shall become due and payable, as provided in the Business Loan Agreement.
PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.
BORROWER:
I/OMAGIC CORPORATION
BY: /s/ TONY SHAHBAZ BY: /s/ STEVE GILLINGS 01/28/05
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TONY SHAHBAZ, PRESIDENT OF I/OMAGIC STEVE GILLINGS, CHIEF
CORPORATION FINANCIAL OFFICER OF
I/OMAGIC CORPORATION
LENDER:
UNITED NATIONAL BANK
X /s/ ALLISON WU
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AUTHORIZED SIGNER