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 12-01-2004 12-15-2004 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

Principal Amount: $6,000,000.00     Initial Rate: 5.500%
DATE OF AGREEMENT: DECEMBER 1, 2004

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 EXTEND THE MATURITY OF THE NOTE TO DECEMBER 1, 2004 AS
EVIDENCED BY THE CHANGE IN TERMS AGREEMENT DATED NOVEMBER 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 DECEMBER
15, 2004.

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 Lenders 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
TONY SHAHBAZ, President of I/OMAGIC        STEVE GILLINGS, Chief Financial
                                           Officer of I/OMAGIC CORPORATION


LENDER:

UNITED NATIONAL BANK

/s/ Allison Wu
Authorized Signer