# AMENDMENT TO LOAN AGREEMENT

Fourth
Amendment (this Fourth Amendment) dated as of October 18, 2004 between MEDIS
TECHNOLOGIES LTD. (the Borrower) and FLEET NATIONAL BANK, a Bank of America
company (the Bank).

WHEREAS,
the Borrower and the Bank are parties to a Loan Agreement dated as of December 29, 2000
(as heretofore amended, the Agreement); and

WHEREAS,
the Borrower and the Bank entered into the Third Amendment to the Agreement, dated as of
September 30, 2003, amending the definition of Termination Date to read July 1, 2005; and

WHEREAS,
the Borrower has requested that the Bank amend, and the Bank has agreed to amend certain
provisions of the Agreement.

NOW,
THEREFORE, the parties hereto agree as follows:

|1. |  | All capitalized terms used herein, unless otherwise defined herein, have the
               same meanings provided therefore in the Agreement.
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|2. |  | The definition of Termination Date as defined in Section 1.1 (Defined Terms) of
               the Agreement is hereby amended in its entirety to read as follows:
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| | Termination
Date shall mean July 1, 2006 or, if such date is not a Business Day, the
Business Day next succeeding such date.
| | ------------------------------------------------------------------------------------------------------------------------------

|3. |  | Section 5.2(g) of the Agreement is hereby amended in its entirety to read as
          follows:
|-- |  | -----------------------------------------------------------------------------------------------

| | (g)       
               On or before each June 30th and December 31st of each
               calendar year, deliver to the Bank a certificate executed by each Individual
               Guarantor, in form and substance satisfactory to the Bank, certifying as to
               their combined liquid net worth or that they collectively own unencumbered
               liquid assets of, and that they have combined liquid net worth of, at least
               $10,000,000.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Section 5.2 of the Agreement is hereby further amended by relettering paragraph
               (h) to be paragraph (i), and inserting the following new paragraph (h)
               immediately following paragraph (g), to read as follows:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)       
               Immediately upon the Partnership Guarantors entering into any agreement
               for the sale of all or any part of the Premises or upon Partnership
               Guarantors receipt of any notice for the exercise of any option for the
               sale of all or any part of the Premises, deliver written notice thereof to the
               Bank; or
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The Event of Default in Section 8.1(n) of the Agreement is hereby amended in its
               entirety to read as follows:
|-- |  | ----------------------------------------------------------------------------------------------------------------------------

| | (n)       
               at any time prior to the Cash Collateral Effective Date the Individual
               Guarantors do not collectively have unencumbered liquid assets of, and combined
               liquid net worth of, at least $10,000,000; or
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | Section 8.1 of the Agreement is hereby further amended by relettering paragraph
               (o) to be paragraph (p), and inserting the following new Event of Default
               immediately following paragraph (n), to read as follows:
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| | (o)       
               upon any sale (or the entering into any agreement for the sale) of all or part of the
Premises by the Partnership Guarantor, or the exercise (or the receipt of notice for such
exercise) of any option to purchase all or part of the Premises, whether received from any
lessee of the Premises or otherwise; or
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. |  | The notice address for the Bank appearing in Section 10.1 of the Agreement is
               hereby amended in its entirety to read as follows:
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

| | The Bank: | Bank of America1185 Avenue of the AmericasNew York, New York  10036
 Att:  Tanitha Boonyam, Vice PresidentFax Number:  212-819-6166
| | ---------- | -----------------------------------------------------------------------------------------------------------------------------------

| | with a copy to: | Herrick, Feinstein LLP
2 Park Avenue New York, New York 10016 Att: Sol W. Bernstein, Esq. Fax Number:
212-592-1500"
| | --------------- | -------------------------------------------------------------------------------------------------------------------

|8. |  | The Agreement is further amended by inserting the words , a Bank of
               American company immediately following all references to Fleet
               National Bank.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. |  | The Borrower hereby represents and warrants to the Bank that:
|-- |  | -------------------------------------------------------------

(a)       
          Each and every of the representations and warranties set forth in the Agreement
          and/or the documents executed pursuant thereto or in connection therewith is
          true as of the date hereof and with the same effect as though made on the date
          hereof, and is hereby incorporated herein in full by reference as if fully
          restated herein in its entirety.

(b)       
          No Default or Event of Default and no event or condition which, with the giving
          of notice or lapse of time or both, would constitute such a Default or Event of
          Default, now exists or would exist.

|10. |  | All obligations in connection with the Agreement are and shall continue to be
               (i) secured by the collateral referenced in the Agreement and more fully
               described in one or more pledge agreements in favor of the Bank and (ii)
               guaranteed by the Guarantors referenced in the Agreement pursuant to Guarantees
               in favor of the Bank.
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|11. |  | By their execution of this amendment in the space provided below, each of the
               guarantors indicated below hereby consent to this Fourth Amendment and reaffirm
               their continuing liability under their respective guarantees, in respect of the
               Agreement as amended hereby and all the documents, instruments and agreements
               executed pursuant thereto or in connection therewith, without offset, defense or
               counterclaim (any such offset, defense or counterclaim as may exist being hereby
               irrevocably waived by such guarantors).
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | The amendments set forth herein are limited precisely as written and shall not
               be deemed to (a) be a consent to or a waiver of any other term or condition of
               the Agreement or any of the documents referred to therein or (b) prejudice any
               right or rights which the Bank may now have or may have in the future under or
               in connection with the Agreement or any documents referred to therein. Whenever
               the Agreement is referred to in the Agreement or any of the instruments,
               agreements or other documents or papers executed
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| |  | and delivered in connection
               therewith, it shall be deemed to mean the Agreement as modified by this Fourth
               Amendment.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------

|13. |  | This Fourth Amendment shall be effective as of the date first above written;
               provided that this Fourth Amendment shall not be effective unless and
               until (i) the Bank shall have received counterparts of this Fourth Amendment
               duly signed by the Borrower and Guarantors, (ii) the Borrower shall have paid
               the Bank an administrative fee in connection with this Fourth Amendment, which
               fee is $2,500.00 and (iii) the Bank shall have received evidence of such proper
               corporate organization, existence, authority and appropriate corporate
               proceedings with respect to the Borrower and the matters addressed by this
               Fourth Amendment and the documents, instruments and agreements executed pursuant
               hereto or in connection herewith, and such other certificates, instruments, and
               documents as the Bank shall reasonably request.
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|14. |  | This Fourth Amendment may be executed by the parties hereto individually or in
               any combination, in one or more counterparts, each of which shall be an original
               and all of which shall together constitute one and the same agreement.
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IN
WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be duly executed
and delivered by their respective duly authorized officers as of the date first above
written.

| | MEDIS TECHNOLOGIES LTD.                          
| | -------------------------------------------------
|
| | By: /s/ HOWARD WEINGROW                          
| | Name:  Howard Weingrow                           
| | Title:                                           
|
|
| | FLEET NATIONAL BANK,    a Bank of America company
|
| | By: /s/ TANITHA BOONYAM                          
| | Name:  Tanitha Boonyam                           
| | Title:    Vice President                         



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Each
of the guarantors indicated below hereby consent to this Fourth Amendment and reaffirm
their continuing liability under their respective guarantees in respect of the Agreement
as amended hereby and all the documents, instruments and agreements executed pursuant
thereto or in connection therewith, without offset, defense or counterclaim (any such
offset, defense or counterclaim as may exist being hereby irrevocably waived by such
guarantors).

| | PLAZA HOTEL MANAGEMENT COMPANY
| | ------------------------------
|
| | By: /s/ HOWARD WEINGROW       
| | Name:  Howard Weingrow        
| | Title: Partner                
|
|
|
| | /s/ HOWARD WEINGROW           
| | Howard Weingrow, Individually 
|
|
|
| | /s/ ROBERT LIFTON             
| | Robert Lifton, Individually   

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