Document:

<PAGE>
                                                                    Exhibit 10.1

SILICON VALLEY BANK

       AMENDMENT TO LOAN DOCUMENTS

BORROWER(S):         MOBILITY ELECTRONICS, INC.
                     MOBILITY IDAHO, INC. (FORMERLY PORTSMITH, INC.)
                     MAGMA, INC.

ADDRESS:             17800 N. PERIMETER DRIVE
                     SCOTTSDALE, ARIZONA 85255-5449

DATE AS OF JULY 31, 2004 (THE "JULY 2004 AMENDMENT DATE")

         THIS AMENDMENT TO LOAN DOCUMENTS (THIS "AMENDMENT") is entered into
between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa
Clara, California 95054, and the borrower(s) named above (individually and
collectively, and jointly and severally, the "Borrower"), whose address is set
forth above.

         Bank and Borrower agree to amend the Loan and Security Agreement
between them, dated as of September 27, 2002 (as amended, restated,
supplemented, or otherwise modified from time to time, the "Loan Agreement"), as
set forth herein, effective as of the date hereof. Capitalized terms used but
not defined in this Amendment, shall have the meanings set forth in the Loan
Agreement (as amended by this Amendment). The term "July 2004 Amendment Date" as
defined above hereby is incorporated into the Loan Agreement. This Amendment is
the "July 2004 Amendment" referenced in the Amended and Restated Schedule.

         1.       AMENDED AND RESTATED SCHEDULE; UPDATED SCHEDULE 2.

                  (a) The Schedule 1 to the Loan Agreement, dated September 27,
2002, between Borrower and Silicon (as amended, restated, supplemented, or
otherwise modified from time to time prior to the date hereof, the "Existing
Schedule"), hereby is amended and restated in its entirety to read as set forth
in the Amended and Restated Schedule 1 to Loan and Security Agreement of even
date herewith (the "Amended and Restated Schedule"). Accordingly, from and after
the date hereof, all references in the Loan Agreement and the other Loan
Documents to the "Schedule" or words of like import referring to the Existing
Schedule shall mean and refer to the Amended and Restated Schedule (as amended,
restated, supplemented, or otherwise modified from time to time from and after
the date hereof) instead of the Existing Schedule.

                  (b) The Schedule 2 attached to the Loan Agreement as in effect
immediately prior to the effectiveness of this Amendment (the "Old Schedule 2")
hereby is replaced by the updated Schedule 2 attached hereto (the "Updated
Schedule 2"). Accordingly, from and after the date

                                       1
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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hereof, all references in the Loan Agreement and the other Loan Documents to the
"Schedule 2" or words of like import referring to the Old Schedule 2 shall mean
and refer to the Updated Schedule 2 (as amended, restated, supplemented, or
otherwise modified from time to time from and after the date hereof) instead of
the Old Schedule 2.

         2.       AMENDMENTS TO LOAN AGREEMENT.

                  (a) Exhibit E to the Loan Agreement hereby is deleted in its
entirety, and Section 9.8 of the Loan Agreement hereby is amended and restated
in its entirety to read as follows:

                     "9.8           [INTENTIONALLY OMITTED]"

                  (b) Section 2.1.2 of the Loan Agreement hereby is amended and
restated in its entirety to read as follows:

                     "2.1.2         LETTER OF CREDIT SUBLIMIT.

                           Section 1.3(a) of the Schedule is incorporated herein
                     by this reference as though fully set forth herein."

                  (c) Section 2.1.3 of the Loan Agreement hereby is amended and
restated in its entirety to read as follows:

                     "2.1.3         FX SUBLIMIT; CASH MANAGEMENT SERVICES AND
                                    RESERVES.

                           (a) FX Sublimit. Section 1.3(b) of the Schedule is
                     incorporated herein by this reference as though fully set
                     forth herein."

                           (b) Cash Management Services and Reserves. Section
                     1.3(c) of the Schedule is incorporated herein by this
                     reference as though fully set forth herein."

                  (d) The portion of Section 5 of the Loan Agreement that
currently reads as follows:

                     "Borrower represents and warrants that the following
                     statements are true and correct on the date hereof and
                     Borrower covenants that the following statements will
                     continue to be true and correct throughout the term of this
                     Agreement and so long as any Obligations are outstanding:"

, hereby is amended and restated in its entirety to read as follows:

                     "Borrower represents and warrants that the following
                     statements are true and correct on the July 2004 Amendment
                     Date and Borrower covenants that the following statements
                     will continue to be true and correct throughout the term of
                     this Agreement and so long as any Obligations are
                     outstanding:"

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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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                  (e) The portion of Section 5.7 of the Loan Agreement that
currently reads as follows:

                     "The information in the Representations previously
                     submitted to Bank continues to be true and correct as of
                     the date hereof."

, hereby is amended and restated in its entirety to read as follows:

                     "The information in the Representations previously
                     submitted to Bank continues to be true and correct as of
                     the July 2004 Amendment Date."

                  (f) Section 6.2(a)(ii) of the Loan Agreement, which currently
reads as follows:

                     "(ii) Monthly perpetual inventory reports for the Inventory
                     valued on a first-in, first-out basis at the lower of cost
                     or market (in accordance with GAAP) and such other
                     inventory reports as are requested by Bank in its good
                     faith business judgment, all within 20 days after the end
                     of each month. Notwithstanding the foregoing, Bank
                     understands that Borrower presently reports its inventory
                     on a standard cost basis and Borrower may continue to do so
                     until it converts its accounting system to enable it to
                     report its inventory on a first-in, first-out basis at the
                     lower of cost or market (in accordance with GAAP), which
                     Borrower shall do beginning with reports for the month of
                     April, 2003. Borrower's reports on a standard cost basis
                     shall be accompanied by variance data in form acceptable to
                     Bank showing variance to actual costs and other data as
                     Bank shall specify. In the event the Asset Based Terms are
                     in effect before Borrower reports its Inventory on a
                     first-in, first-out basis, the variance between standard
                     cost and actual cost shall be subject to a reserve
                     established by the Bank in its good faith business
                     judgment."

, hereby is amended and restated in its entirety to read as follows:

                     "(ii) From and after Bank's receipt of the "Designated
                     Inventory Appraisal" (as such term is defined in Section
                     1.1 of the Schedule), monthly perpetual inventory reports
                     for the Inventory, including any adjustments or reserves
                     made by Borrower in order to value Inventory at a first-in,
                     first-out basis at the lower of cost or market (in
                     accordance with GAAP), and such other inventory reports as
                     are requested by Bank in its good faith business judgment,
                     all within 20 days after the end of each month."

                  (g) Section 6.2(a)(iii) of the Loan Agreement, which currently
reads as follows:

                     "(iii) Within 20 days after the last day of each month,
                     Borrower will deliver to Bank a Borrowing Base Certificate
                     signed by a Responsible Officer in the form of Exhibit C,
                     provided that if the Asset Based Terms are in effect such
                     Borrowing Base Certificate shall be delivered to Bank
                     weekly as specified by Bank."

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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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, hereby is amended and restated in its entirety to read as follows:

                     "(iii) Within 30 days after the last day of each month,
                     Borrower will deliver to Bank: (y) a Borrowing Base
                     Certificate signed by a Responsible Officer in the form of
                     Exhibit C; and (z) transaction reports, schedules of
                     Accounts, and schedules of collections, all on Bank's
                     standard forms; provided, however, that Borrower's failure
                     to execute and deliver the same shall not affect or limit
                     Bank's security interest and other rights in all of
                     Borrower's Accounts. If requested by Bank, Borrower shall
                     furnish Bank with copies (or, at Bank's request, originals)
                     of all contracts, orders, invoices, and other similar
                     documents, and all 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 Accounts, and Borrower warrants the genuineness of all
                     of the fore-going. Borrower shall also furnish to Bank an
                     aged accounts receivable trial balance in such form and at
                     such intervals as Bank shall request. In addition, Borrower
                     shall deliver to Bank the originals of all instruments,
                     chattel paper, security agreements, guarantees and other
                     documents and property evidencing or securing any Accounts,
                     immediately upon receipt thereof and in the same form as
                     received, with all necessary endorsements, all of which
                     shall be with recourse. Borrower shall also provide Bank
                     with copies of all credit memos from time to time on
                     request by Bank."

                  (h) The portion of Section 6.2(a) of the Loan Agreement that
currently reads as follows:

                     "Provided that if there are no Advances or Letters of
                     Credit outstanding throughout a month, then the following
                     reports under the following clauses above need not be
                     provided with respect to such month: 6.2(a)(i), (ii),
                     (iii), (iv), and (v), provided that if, in a following
                     month, the Borrower requests an Advance, Borrower shall
                     provide said reports at the time the request for the
                     Advance is made."

, hereby is deleted in its entirety.

                  (i) The portion of Section 6.9 of the Loan Agreement that
currently reads as follows:

                     "The sums received in such lockbox account shall be applied
                     to the outstanding monetary Obligations in such order as
                     Bank shall determine, and any excess will be deposited by
                     Bank in Borrower's operating account at Bank."

, hereby is amended and restated in its entirety to read as follows:

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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

                     "So long as no Event of Default has occurred and is
                     continuing, the sums received in such lockbox account will
                     be deposited by Bank in Borrower's operating account at
                     Bank. Upon the occurrence and during the continuation of an
                     Event of Default, Bank may, in its good faith business
                     judgment, elect to apply any or all sums received in such
                     lockbox account to the outstanding monetary Obligations in
                     such order as Bank shall determine or hold such sums as
                     additional cash security for the Obligations, and any such
                     sums not so applied to (or held as additional cash security
                     for) the outstanding monetary Obligations will be deposited
                     by Bank in Borrower's operating account at Bank."

                  (j) The definition of "Credit Extension" set forth in Section
13.1 of the Loan Agreement hereby is amended and restated in its entirety to
read as follows:

                     " "CREDIT EXTENSION" is each Advance, Letter of Credit, FX
                     Contract, Cash Management Service, or any other extension
                     of credit by Bank for Borrower's benefit."

                  (k) The definition of "Representations" set forth in Section
13.1 of the Loan Agreement hereby is amended and restated in its entirety to
read as follows:

                     " "REPRESENTATIONS " are, collectively, the written
                     Representations and Warranties of Borrower dated July 28,
                     2004 and the Litigation Update of Borrower dated August 5,
                     2004."

                  (l) The portion of Section 5.2 of the Loan Agreement that
currently reads as follows:

                     "The Collateral is not in the possession of any third party
                     bailee (such as at a warehouse), except for Collateral
                     consisting of Inventory located at the following warehouse
                     in Memphis, Tennessee: 4638 E. Shelby Drive, Memphis,
                     Tennessee 38118 (the "Tennessee Warehouse"). Borrower shall
                     cause the Tennessee Warehouse to execute and deliver to
                     Bank an agreement pursuant to which the Tennessee Warehouse
                     waives any liens on the Collateral stored with it and
                     acknowledges that it is holding such Collateral for the
                     benefit of Bank in form acceptable to the Bank. In the
                     event that Borrower, after the date hereof, intends to
                     store or otherwise deliver the Collateral to such a bailee,
                     then Borrower will receive the prior written consent of
                     Bank and such bailee must acknowledge in writing that the
                     bailee waives any liens on the Collateral and acknowledges
                     that the bailee is holding such Collateral for the benefit
                     of Bank in form acceptable to the Bank."

, hereby is amended and restated in its entirety to read as follows:

                     "The Collateral is not in the possession of any third party
                     bailee (such as at a warehouse), except for Collateral
                     consisting of Inventory located at the locations expressly
                     identified in Section 3(f) of the Representations,
                     including

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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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                     the following warehouse in Memphis, Tennessee: 4638 E.
                     Shelby Drive, Memphis, Tennessee 38118 (the "Tennessee
                     Warehouse"). Borrower previously has caused the
                     warehouseman or bailee in respect of the Tennessee
                     Warehouse to execute and deliver to Bank a bailee agreement
                     (in form and substance satisfactory to the Bank). Borrower
                     hereby covenants that Borrower promptly shall deliver
                     written notice to the Bank of any goods or other Collateral
                     of Borrower being in the possession of any other
                     warehouseman or other bailee. With respect to any goods or
                     other Collateral of Borrower in the possession of any
                     warehouseman or other bailee located within the United
                     States, Borrower shall, promptly upon the Bank's request
                     therefor, use commercially reasonable efforts to deliver to
                     the Bank a bailee agreement (in form and substance
                     satisfactory to the Bank) duly executed by such
                     warehouseman or other bailee. In the event that the Bank
                     requests such a bailee agreement and Borrower uses such
                     efforts but does not succeed in delivering such a bailee
                     agreement, the Bank may (in its good faith business
                     judgment) maintain a reserve with respect to such warehouse
                     or other bailee location."

                  (m) Section 5.3 of the Loan Agreement, which currently reads
as follows:

                     "Except as shown in the Schedule, there are no actions or
                     proceedings pending or, to the knowledge of Borrower's
                     Responsible Officers and legal counsel, threatened by or
                     against Borrower or any Subsidiary, which could reasonably
                     be expected to result in damages or costs to Borrower or
                     any Subsidiary of $100,000 or more, or in which an adverse
                     decision could reasonably be expected to cause a Material
                     Adverse Change."

, hereby is amended and restated in its entirety to read as follows:

                     "Except as shown in the Litigation Update referenced within
                     the definition of "Representations" or in Schedule 2, there
                     are no actions or proceedings pending or, to the knowledge
                     of Borrower's Responsible Officers and legal counsel,
                     threatened by or against Borrower or any Subsidiary, which
                     could reasonably be expected to result in damages or costs
                     to Borrower or any Subsidiary of $100,000 or more, or in
                     which an adverse decision could reasonably be expected to
                     cause a Material Adverse Change."

                  (n) The portion of Section 6.2(b) of the Loan Agreement that
currently reads as follows:

                     "Such audits will be conducted no more often than every 6
                     months, provided that if the Asset Based Terms are in
                     effect, such audits may be conducted by Bank quarterly, and
                     if an Event of Default or an event which, with notice or
                     passage of time or both would constitute an Event of
                     Default, has occurred and is continuing, there shall not be
                     a limit on the number of such audits."

, hereby is amended and restated in its entirety to read as follows:

                                       6
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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                     "Such audits will be conducted no more often than (a)
                     subject to the following proviso and clause (b) below, once
                     in any consecutive-6-month-period (which period commences
                     on or after the July 2004 Amendment Date), so long as no
                     Event of Default and no event which, with notice or passage
                     of time or both would constitute an Event of Default
                     ("Default") has occurred and is continuing, or (b) subject
                     to the following proviso, once in any
                     consecutive-12-month-period (which period commences on or
                     after the July 2004 Amendment Date), so long as no Advances
                     were outstanding at any time during such 12-month period
                     and no Default or Event of Default has occurred and is
                     continuing; provided, however, that any such audits
                     conducted upon the occurrence and during the continuation
                     of any Default or Event of Default shall not count toward
                     any of the foregoing limitations on the number of such
                     audits."

         3. LIMITED AND CONDITIONAL CONSENT TO SALE OF MOBILITY TEXAS, INC. Bank
hereby agrees to not unreasonably withhold its consent to the sale of all or
substantially all of the assets or capital stock of Mobility Texas, Inc.
(formerly known as Cutting Edge Software, Inc.); provided, however, that, as
conditions to the effectiveness of any such consent:

         (a) no Event of Default shall have occurred and be continuing, both
immediately before and immediately after the consummation of such sale;

         (b) such sale shall be in accordance (in all material respects) with
the terms and conditions of a commercially-reasonable, definitive purchase/sale
agreement relative thereto;

         (c) all consideration received by Borrower (in the case of a stock
sale) or Mobility Texas, Inc. (in the case of an asset sale) for such sale shall
be promptly delivered to Bank in the same form as received (with any and all
necessary endorsements): (i) in the case of monetary payments, to be applied to
(or held by Bank as cash security for) the outstanding monetary Obligations in
such order as Bank shall determine, and any excess will be deposited by Bank in
Borrower's operating account at Bank; and (ii) in all other cases, as additional
Collateral.

It is understood and agreed that such consent to such sale (the "Permitted
Mobility Texas Sale") does not constitute a waiver of any provision or term of
the Loan Documents restricting the sale or other disposition of assets of any
Borrower or any Guarantor in respect of any matter other than the Permitted
Mobility Texas Sale, nor a waiver of any other provision or term of the Loan
Agreement or any other Loan Document, nor an agreement to waive, in the future,
any provision or term of the Loan Documents restricting the sale or other
disposition of assets of any Borrower or any Guarantor in respect of any matter
other than the Permitted Mobility Texas Sale, nor a waiver of any other
provision or term of the Loan Agreement or any other Loan Document.

Concurrently with the effectiveness of such consent and the consummation of such
sale, Bank will (at Borrower's expense): (y) (1) release its security interests
(without recourse, representation, or warranty) in such assets or capital stock
that are sold pursuant to such sale, (2) authorize and authenticate in writing
the filing of UCC-2/3 Partial Releases relative to the applicable financing
statements of record in favor of the Bank, in form and substance reasonably
satisfactory to Bank and otherwise in suitable form for filing in the
appropriate governmental

                                       7
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
--------------------------------------------------------------------------------

offices, in order to reflect such release of security interests, and (3) execute
and deliver any other documents (in form and substance reasonably satisfactory
to Bank) reasonably requested by Borrower to effect or reflect such release of
security interests; and (z) if and to the extent that Borrower no longer owns
any capital stock of Mobility Texas, Inc. (formerly known as Cutting Edge
Software, Inc.), release Mobility Texas, Inc. (formerly known as Cutting Edge
Software, Inc.) from its guaranty of the Obligations in favor of Bank (except
that Borrower shall assume any and all obligations of Mobility Texas, Inc.
(formerly known as Cutting Edge Software, Inc.) under the Loan Documents to
reimburse Bank for costs and expenses and to indemnify Bank).

         4. FEES. In consideration for Bank entering into this Amendment and the
Amended and Restated Schedule, Borrower shall pay Bank the $50,000 facility fee
described in Section 3 of the Amended and Restated Schedule, concurrently with
the execution and delivery of this Amendment and the Amended and Restated
Schedule, which fee shall be non-refundable and in addition to all interest and
other fees payable to Bank under the Loan Documents. Bank is authorized to
charge said fees to Borrower's loan account.

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

         6. GENERAL PROVISIONS. This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Bank and Borrower, and the
other Loan Documents set forth in full all of the representations and agreements
of the parties with respect to the subject matter hereof and supersede all prior
discussions, representations, agreements and understandings between the parties
with respect to the subject hereof. Except as expressly amended herein (or as
amended and restated in the Loan Documents as expressly contemplated herein),
all of the terms and provisions of the Loan Agreement and all other Loan
Documents shall continue in full force and effect and the same are hereby
ratified and confirmed.

[remainder of page intentionally left blank; signature page follows]

                                       8
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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         7. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of
which, when taken together, shall constitute but one and the same document.
Delivery of an executed counterpart of this Amendment by telefacsimile shall be
equally as effective as delivery of an original executed counterpart of this
Amendment. The foregoing shall apply to each other Loan Document mutatis
mutandis.

Borrower:                                     Bank:

  MOBILITY ELECTRONICS, INC.                  SILICON VALLEY BANK

  By                                            By
    -------------------------------               ------------------------------
       President or Vice President              Title
                                                     ---------------------------

Borrower:                                     Borrower:

  MOBILITY IDAHO, INC. (formerly                 MAGMA, INC.
  Portsmith, Inc.)

                                                By
                                                  ------------------------------
  By                                                 President or Vice President
    -------------------------------
       President or Vice President

                                       9
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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                                     CONSENT

         The undersigned acknowledges that the undersigned's consent to the
foregoing Amendment and to the Amended and Restated Schedule is not required,
but the undersigned nevertheless does hereby consent to the foregoing Amendment
and the Amended and Restated Schedule and to the documents and agreements
referred to therein and to all future modifications and amendments thereto, and
any termination thereof, and to any and all other present and future documents
and agreements between or among the foregoing parties. Nothing herein shall in
any way limit any of the terms or provisions of the guaranty, security
agreement, or any other Loan Document of the undersigned, all of which are
hereby ratified and affirmed.

<TABLE>
<S>                                                <C>
Mobility Texas, Inc. (formerly Cutting Edge        iGo Direct Corporation, a Delaware
Software, Inc.)                                    corporation formerly known as IGOC
                                                   Acquisition, Inc. and successor-by-merger
                                                   to iGo Corporation
By
  -----------------------------------
     President or Vice President                   By
                                                     -----------------------------------
                                                        President or Vice President
</TABLE>

                                       9
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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                    Schedule 2 to Loan and Security Agreement

Deposit Accounts at Silicon Valley Bank:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Liens existing on the July 2004 Amendment Date and disclosed to and accepted by
Bank in writing:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Investments existing on the July 2004 Amendment Date and disclosed to and
accepted by Bank in writing:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Subordinated Debt:

Indebtedness on the July 2004 Amendment Date and disclosed to and consented to
by Bank in writing:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                               Updated Schedule 2
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SILICON VALLEY BANK                                  AMENDMENT TO LOAN DOCUMENTS
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Except as shown below, there are no actions or proceedings pending or, to the
knowledge of Borrower's Responsible Officers and legal counsel, threatened by or
against Borrower or any Subsidiary, which could result in damages or costs to
Borrower or any Subsidiary of $100,000 or more, or in which an adverse decision
could reasonably be expected to cause a Material Adverse Change (attach
additional comments, if needed):

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                         Updated Schedule 2 (continued)
<PAGE>

                       AMENDED AND RESTATED SCHEDULE 1 TO

                          LOAN AND SECURITY AGREEMENT

BORROWER(S):      MOBILITY ELECTRONICS, INC.
                  MOBILITY IDAHO, INC. (FORMERLY PORTSMITH, INC.)
                  MAGMA, INC.

DATED AS OF JULY 31, 2004 (THE "JULY 2004 AMENDMENT DATE")

This Amended and Restated Schedule 1 (this "Schedule") forms an integral part of
the Loan and Security Agreement, dated September 27, 2002 (as amended, restated,
supplemented, or otherwise modified from time to time (including without
limitation pursuant to the July 2004 Amendment referred to below), the "Loan
Agreement" or "this Agreement"), between Silicon Valley Bank ("Bank" or
"Silicon") and the borrower(s) named above (individually and collectively, and
jointly and severally, "Borrower"), and, effective as of the date hereof, this
Schedule amends and restates in its entirety the prior Schedule 1 to Loan and
Security Agreement, dated September 27, 2002 (as amended, restated,
supplemented, or otherwise modified from time to time prior to the date hereof),
between Bank and Borrower. This Schedule is the "Amended and Restated Schedule"
referred to in Section 1 of the Amendment to Loan Documents, dated as of even
date herewith, between Borrower and Bank (the "July 2004 Amendment") relative to
the Loan Agreement. (Capitalized terms used herein, which are not defined, shall
have the meanings set forth in the Loan Agreement.) The term "July 2004
Amendment Date" as defined above hereby is incorporated into the Loan Agreement.

1.    CREDIT LIMIT

      (Section 2.1.1):

      1.1   Subject to Sections 1.2 and 1.3 below, the Credit Limit shall be an
            amount not to exceed the lesser of (i) $10,000,000 at any one time
            outstanding (the "Committed Revolving Line") or (ii) the Borrowing
            Base (as defined below). As used herein, the term "Borrowing Base"
            means, as of any date of determination, the result of (a), (b), and
            (c) below:

            (a)   80% (the "Accounts Advance Rate" and also an "Advance Rate")
                  of the amount of Borrower's Eligible Accounts,

            plus

            (b)   the lesser of (1) or (2) below (the "Inventory Component"):

                  (1)   25% (the "Inventory Advance Rate" and also an "Advance
                        Rate") of the value of Borrower's Eligible Inventory (as
                        defined in Section 13.1 of the Loan Agreement),
                        calculated at the lower of cost or

                                      -1-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

                        market value and determined on a first-in, first-out
                        basis, or

                  (2)   $2,000,000 (the "Inventory Sublimit"),

            minus

            (c)   Reserves for accrued interest and such other reserves as Bank
                  deems proper from time to time in its good faith business
                  judgment.

            Anything in the Loan Agreement to the contrary notwithstanding, in
            no event shall the aggregate outstanding amount of Advances and
            other Credit Extensions based on the Inventory Component exceed 20%
            (the "Inventory Percentage Limit" and also an "Advance Rate") of the
            aggregate amount of all Advances and other Credit Extensions
            outstanding hereunder.

            Anything in the Loan Agreement to the contrary notwithstanding, the
            Inventory Sublimit shall equal Zero Dollars ($-0-), unless and until
            Bank has received, on or after the July 2004 Amendment Date, the
            results of an appraisal of the Inventory completed by or on behalf
            of Bank, which results shall be satisfactory to Bank in its good
            faith business judgment (the "Designated Inventory Appraisal").

            Silicon may, from time to time, modify the Advance Rates, in its
            good faith business judgment, upon notice to the Borrower, based on
            changes in collection experience with respect to Accounts, its
            evaluation of the Inventory or other issues or factors relating to
            the Accounts, Inventory or other Collateral.

      1.2   Advances will be made separately to each Borrower, based on the
            Eligible Accounts and Eligible Inventory of each Borrower. Accounts
            and Inventory of Mobility Idaho, Inc. (formerly Portsmith, Inc.) and
            Magma, Inc. will not be "Eligible" unless and until they are
            approved by Bank in writing in its sole discretion.

      1.3   Credit Extensions Sublines under the Committed Revolving Line:

            (a) Letter of Credit Sublimit (Section 2.1.2): $2,500,000; provided,
            however, that the sum of the aggregate face amount of outstanding
            Letters of Credit, plus the FX Reserve, plus the aggregate amount of
            Obligations in respect of Cash Management Services, shall not at any
            time exceed $2,500,000.

            At the request of Borrower, Bank may, in its good faith business
            judgment, issue or arrange for the issuance of letters of credit for
            the account of Borrower, in each case in form and substance
            satisfactory

                                      -2-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

            to Bank in its sole discretion (collectively, "Letters of Credit").
            The Borrower agrees that the aggregate face amount of all
            outstanding Letters of Credit shall never exceed the lesser of the
            Letter of Credit Sublimit set forth above or the amount of Advances
            and other Credit Extensions which are from time to time available
            hereunder, and that the amount of outstanding Letters of Credit
            shall be reserved against Advances and other Credit Extensions which
            would otherwise be available hereunder. If at any time or for any
            reason the aggregate face amount of all outstanding Letters of
            Credit shall exceed the foregoing limit, Borrower shall immediately
            pay an amount equal to said excess to Bank, without notice or
            demand. Borrower shall pay all bank charges (including charges of
            Bank) for the issuance of Letters of Credit, together with such
            additional fees as Bank's letter of credit department shall charge
            in connection with the issuance of the Letters of Credit. Any
            payment by Bank under or in connection with a Letter of Credit shall
            constitute an Advance hereunder on the date such payment is made.
            Each Letter of Credit will have an expiry date of no later than 180
            days after the Revolving Maturity Date (except that a Letter of
            Credit issued to HIPRO Electronics may have an expiry date beyond
            said 180-day period). Regardless of the expiry date of any Letter of
            Credit, Borrower's reimbursement obligations with respect to all
            Letters of Credit (including without limitation those with expiry
            dates after the Revolving Maturity Date and the Letter of Credit
            issued to HIPRO Electronics) shall be secured by cash on terms
            acceptable to Bank on or before the Revolving Maturity Date if the
            term of this Agreement is not extended by Bank. Borrower hereby
            agrees to indemnify, save, and hold Bank harmless from any loss,
            cost, expense, or liability, including payments made by Bank,
            expenses, and reasonable attorneys' fees incurred by Bank arising
            out of or in connection with any Letters of Credit. Borrower agrees
            to be bound by the regulations and interpretations of the issuer of
            any Letters of Credit guarantied by Bank and opened for Borrower's
            account or by Bank's interpretations of any Letter of C redit issued
            by Bank for Borrower's account, and Borrower understands and agrees
            that Bank shall not be liable for any error, negligence, or mistake,
            whether of omission or commission, in following Borrower's
            instructions or those contained in the Letters of Credit or any
            modifications, amendments, or supplements thereto. Borrower
            understands that Letters of Credit may require Bank to indemnify the
            issuing bank for certain costs or liabilities arising out of claims
            by Borrower against such issuing bank. Borrower hereby agrees to
            indemnify and hold Bank harmless with respect to any loss, cost,
            expense, or liability incurred by Bank under any Letter of Credit as
            a result of Bank's indemnification of any such issuing bank. The
            provisions of this Agreement, as it pertains to Letters of Credit,
            and any other Loan Documents relating to Letters of Credit are
            cumulative.

                                      -3-
<PAGE>
SILICON VALLEY BANK           A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

            (b) FX Sublimit: $2,500,000; provided, however, that the sum of the
            aggregate face amount of outstanding Letters of Credit, plus the FX
            Reserve, plus the aggregate amount of Obligations in respect of Cash
            Management Services, shall not at any time exceed $2,500,000.

            Borrower may enter into foreign exchange forward contracts with
            Bank, on its standard forms, under which Borrower commits to
            purchase from or sell to Bank a set amount of foreign currency more
            than one Business Day after the contract date (the "FX Forward
            Contracts"); provided that (1) at the time the FX Forward Contract
            is entered into, Borrower has Unfunded Availability (as defined
            below) under this Agreement in an amount at least equal to 10% of
            the amount of the FX Forward Contract; (2) the total FX Forward
            Contracts at any one time outstanding may not exceed 10 times the
            amount of the FX Sublimit set forth above. Bank shall have the right
            to withhold, from the Advances and other Credit Extensions otherwise
            available to Borrower under this Agreement, a reserve (which shall
            be in addition to all other reserves) in an amount equal to 10% of
            the total FX Forward Contracts from time to time outstanding (the
            "FX Reserve"), and in the event at any time there are insufficient
            Advances and other Credit Extensions available to Borrower for such
            reserve, Borrower shall deposit and maintain with Bank cash
            collateral in an amount at all times equal to such deficiency, which
            shall be held as Collateral for all purposes of this Agreement. Bank
            may, in its discretion, terminate the FX Forward Contracts at any
            time that an Event of Default occurs and is continuing. The FX
            Forward Contracts shall terminate upon the earlier of (a) the
            Revolving Maturity Date, or (b) any earlier effective date of
            termination of this Agreement (or such later date requested by
            Borrower as Bank may agree in writing in its sole discretion if and
            to the extent Borrower's Obligations in respect of the FX Forward
            Contracts are secured by cash in amounts and on terms and conditions
            acceptable to Bank in its good faith business judgment). Borrower
            shall execute all standard form applications and agreements of Bank
            in connection with the FX Forward Contracts, and without limiting
            any of the terms of such applications and agreements, Borrower shall
            pay all standard fees and charges of Bank in connection with the FX
            Forward Contracts. All amounts that Bank pays or expends in respect
            of any FX Forward Contracts shall constitute Obligations hereunder.

            As used herein, the term "Unfunded Availability" means, as of any
            date of determination, the amount, as determined by Bank in its good
            faith business judgment, equal to the aggregate Advances and other
            Credit Extensions available to the Borrower under the Loan Agreement
            (after deduction of all outstanding Advances and other Credit
            Extensions and all applicable reserves).

                                      -4-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

            (c) Cash Management Services and Reserves: Borrower may use up to
            $2,500,000 of Advances available hereunder for Bank's Cash
            Management Services (as defined below), including, merchant
            services, business credit card, ACH and other services identified in
            the cash management services agreement related to such service (the
            "Cash Management Services"); provided, however, that the sum of the
            aggregate face amount of outstanding Letters of Credit, plus the FX
            Reserve, plus the aggregate amount of Obligations in respect of Cash
            Management Services, shall not at any time exceed $2,500,000. Bank
            will reserve against Advances and other Credit Extensions otherwise
            available to Borrower under this Agreement such sums as Bank shall
            determine in its good faith business judgment in connection with the
            Cash Management Services, and Bank may charge to Borrower's Loan
            account any amounts that may become due or owing to Bank in
            connection with the Cash Management Services. Borrower agrees to
            execute and deliver to Bank all standard form applications and
            agreements of Bank in connection with the Cash Management Services,
            and, without limiting any of the terms of such applications and
            agreements, Borrower will pay all standard fees and charges of Bank
            in connection with the Cash Management Services. The Cash Management
            Services shall terminate upon the earlier of (a) the Revolving
            Maturity Date, or (b) any earlier effective date of termination of
            this Agreement (or such later date requested by Borrower as Bank may
            agree in writing in its sole discretion if and to the extent
            Borrower's Obligations in respect of the Cash Management Services
            are secured by cash in amounts and on terms and conditions
            acceptable to Bank in its sole discretion). Upon the occurrence and
            during the continuation of an Event of Default, Bank shall have the
            right to require the Obligations in respect of the Cash Management
            Services to be secured by cash in amounts and on terms and
            conditions acceptable to Bank in its good faith business judgment.

2.    INTEREST.

      INTEREST RATE

      (Section 2.3(a)):       A rate equal to the "Prime Rate" in effect from
                              time to time.

3.    FEES (Section 2.4(a)):

      Facility Fee:           $50,000, payable concurrently with the execution
                              and delivery of this Schedule and the July 2004
                              Amendment.

                                      -5-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

Unused Line Fee:              In the event, in any month (or portion thereof),
                              the average daily principal balance of the
                              Advances outstanding during such month (or portion
                              thereof) is less than the Committed Revolving
                              Line, then Borrower shall pay Bank an unused line
                              fee (the "Unused Line Fee") in an amount equal to
                              0.25% per annum on the difference of the Committed
                              Revolving Line minus the average daily principal
                              balance of the Advances outstanding during such
                              month (or portion thereof), computed on the basis
                              of a 360-day year, and the Unused Line Fee shall
                              be computed and paid monthly, in arrears, on the
                              first day of the following month.

Collateral Handling Fee:      During each month or portion thereof, Borrower
                              shall pay Bank a collateral handling fee in an
                              amount equal to $1,100 per month.

Termination Fee:
(Sections 2.1.1(d)
and 9.1(b)):                  None.

4.    REVOLVING MATURITY DATE

      (Section 13.1):         July 31, 2006.

5.  FINANCIAL COVENANTS

      (Section 6.7):          Parent (on a consolidated basis) shall comply with
                              each of the following financial covenants.
                              Compliance shall be determined as of the end of
                              each month, except as specifically otherwise
                              provided below:

      (a) Quick Ratio:        Parent (on a consolidated basis) shall maintain a
                              ratio, of

                                    (i)   the total of unrestricted cash and
                                          unrestricted cash equivalents, net
                                          billed Accounts (net of allowance for
                                          doubtful Accounts), and investments
                                          with maturities of less than 12
                                          months,

                                                TO

                                    (ii)  Current Liabilities,

                              of not less than 1.50 TO 1.00.

      (b) EBITDA:             Parent (on a consolidated basis) shall maintain
                              EBITDA of not less than Zero Dollars ($-0-) for
                              each fiscal quarter, commencing with the fiscal
                              quarter ending September 30, 2004.

                                      -6-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

DEFINITIONS.                  For purposes of this Agreement, the following
                              terms shall have the following meanings:

                              "Current Liabilities" and "liabilities" shall have
                              the meaning ascribed thereto by GAAP.

                              "EBITDA" shall mean Parent's earnings before
                              interest, taxes, depreciation and other non-cash
                              amortization expenses and other non-cash expenses
                              of parent, all determined in accordance with GAAP,
                              on a consolidated basis.

6.    BORROWER INFORMATION:

Borrower represents and warrants that the information set forth in the
Representations and Warranties of the Borrower dated July 28, 2004, and the
Litigation Update of Borrower dated August 5, 2004, in each case as previously
submitted to Silicon (collectively, the "Representations") is true and correct
as of the date hereof.

7.    ADDITIONAL PROVISIONS

      7.1   Intellectual Property. Borrower (and, by its execution and delivery
            of the Consent attached to the July 2004 Amendment, Guarantor) each
            represents and warrants that all Intellectual Property of the
            Borrower and Guarantor, as the case may be, is listed on Exhibit 7.1
            hereto and is owned by the Borrower or Guarantor (as the case may
            be) shown on said Exhibit. Without limiting the generality of
            Section 6.8 of the Loan Agreement (or Section 4.8 of the applicable
            Security Agreement between Bank and such Guarantor), neither
            Borrower nor Guarantor owns, as of the July 2004 Amendment Date, any
            maskworks, computer software, and other copyrights that are
            registered (or are the subject of any application for registration)
            with the United States Copyright Office, except as expressly and
            specifically identified on Exhibit 7.1 with respect to such Borrower
            or Guarantor.

      7.2   [intentionally omitted]

      7.3   [intentionally omitted]

      7.4   [intentionally omitted]

      7.5   Pledge of Shares of Stock of Mobility Idaho, Inc. (formerly
            Portsmith, Inc.). Borrower hereby represents and warrants that, as
            discussed in Section 1 of the Litigation Update referenced within

                                      -7-
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

            the definition of "Representations" (set forth in Section 13.1 of
            the Loan Agreement), the outstanding shares of stock of Mobility
            Idaho, Inc. (formerly Portsmith, Inc.) have been released from the
            Borrower's pledge thereof. Accordingly, such shares constitute
            Collateral subject to the Bank's first-priority continuing security
            interests.

      7.6   Removal of Negative Trends Reserve. Without limiting the Bank's
            rights and discretion relative to any other reserves, Borrower and
            Bank hereby acknowledge and agree that the "Negative Trends Reserve"
            (as defined in Section 3(b) of that certain Amendment to Loan
            Documents, dated as of August 25, 2003, between Borrower and Bank)
            as previously in effect is removed from and after the July 2004
            Amendment Date.

      7.7   Notification. Bank or its designee may, at any time, notify Account
            Debtors that it has a security interest in the Accounts and that
            payment on the Accounts is to be made directly to the Bank.

      7.8   Loan Requests. Requests for Advances shall be in writing and shall
            be accompanied by a current Transaction Report on Bank's standard
            form.

      7.9   Reserves. Bank shall have the right to establish and maintain, from
            time to time, such reserves as Bank deems proper in its good faith
            business judgment against the unfunded amount of Advances and other
            Credit Extensions otherwise available under Section 1 of this
            Schedule, including the following: (a) reserves to reflect events,
            conditions, contingencies or risks which, as determined by Bank in
            good faith, do or may affect adversely (i) the Collateral or any
            other property which is security for the Obligations or its value
            (including without limitation any increase in delinquencies of
            Accounts), (ii) the assets, business or prospects of Borrower, or
            (iii) the security interests and other rights of Bank in the
            Collateral (including the enforceability, perfection and priority
            thereof); and (b) reserves to reflect Bank's good faith belief that
            any collateral report or financial information furnished by or on
            behalf of Borrower to Bank is or may have been incomplete,
            inaccurate or misleading in any material respect.

[remainder of page intentionally left blank; signature page follows]

                                      -8-
<PAGE>
SILICON VALLEY BANK           A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

      IN WITNESS WHEREOF, the parties hereto have caused this Schedule to be
executed and delivered as of the date first above written.

Borrower:                                 Bank:

MOBILITY ELECTRONICS, INC.                SILICON VALLEY BANK

By                                        By
  ----------------------------------         -----------------------------------
     President or Vice President          Title
                                                --------------------------------

Borrower:                                 Borrower:

Mobility Idaho, Inc.
(formerly Portsmith, Inc.)                MAGMA, INC.

By                                        By
  ----------------------------------         -----------------------------------
     President or Vice President                President or Vice President

                                 Signature Page
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

                                   EXHIBIT 7.1

1.    Intellectual Property of Mobility Electronics, Inc.:

      a. maskworks, computer software, and other copyrights that are registered
(or are the subject of any application for registration) with the United States
Copyright Office: NONE

      b. patents that are issued (or are the subject of any application for
issuance) by the United States Patent & Trademark Office: see Section 4.a of the
Representations and Warranties of the Borrower dated July 28, 2004 (which by
this reference is incorporated herein)

      c. trademarks that are registered (or are the subject of any application
for registration) with the United States Patent & Trademark Office: see Section
4.a of the Representations and Warranties of the Borrower dated July 28, 2004
(which by this reference is incorporated herein)

2.    Intellectual Property of Mobility Idaho, Inc. (formerly Portsmith, Inc.):

      a. maskworks, computer software, and other copyrights that are registered
(or are the subject of any application for registration) with the United States
Copyright Office: NONE

      b. patents that are issued (or are the subject of any application for
issuance) by the United States Patent & Trademark Office: NONE

      c. trademarks that are registered (or are the subject of any application
for registration) with the United States Patent & Trademark Office: NONE

3.    Intellectual Property of Magma, Inc.:

      a. maskworks, computer software, and other copyrights that are registered
(or are the subject of any application for registration) with the United States
Copyright Office: NONE

      b. patents that are issued (or are the subject of any application for
issuance) by the United States Patent & Trademark Office: NONE

      c. trademarks that are registered (or are the subject of any application
for registration) with the United States Patent & Trademark Office: NONE

                                  Exhibit 7.1
<PAGE>
SILICON VALLEY BANK                A&R SCHEDULE 1 TO LOAN AND SECURITY AGREEMENT

4.    Intellectual Property of Mobility Texas, Inc. (formerly Cutting Edge
      Software, Inc.):

      a. maskworks, computer software, and other copyrights that are registered
(or are the subject of any application for registration) with the United States
Copyright Office: NONE

      b. patents that are issued (or are the subject of any application for
issuance) by the United States Patent & Trademark Office: NONE

      c. trademarks that are registered (or are the subject of any application
for registration) with the United States Patent & Trademark Office: see Section
4.a of the Representations and Warranties of the Borrower dated July 28, 2004
(which by this reference is incorporated herein)

5.    Intellectual Property of iGo Direct Corporation, a Delaware corporation
      formerly known as IGOC Acquisition, Inc. and successor-by-merger to iGo
      Corporation:

      a. maskworks, computer software, and other copyrights that are registered
(or are the subject of any application for registration) with the United States
Copyright Office: NONE

      b. patents that are issued (or are the subject of any application for
issuance) by the United States Patent & Trademark Office: see Section 4.a of the
Representations and Warranties of the Borrower dated July 28, 2004 (which by
this reference is incorporated herein)

      c. trademarks that are registered (or are the subject of any application
for registration) with the United States Patent & Trademark Office: see Section
4.a of the Representations and Warranties of the Borrower dated July 28, 2004
(which by this reference is incorporated herein)

                                  Exhibit 7.1<PAGE>

                                                                    Exhibit 10.2

                               THIRD AMENDMENT TO
                                 LEASE AGREEMENT

Effective Date:  October 6, 2004

         Mountain Valley Community Church (assignee of I.S. Capital, LLC)
(LESSOR) and Mobility Electronics, Inc. (LESSEE), entered into that certain
Standard Multi-Tenant Office Lease dated July 17, 2002, as amended (the
"LEASE"), pertaining to the lease of certain premises (the "PREMISES") located
at 17800 North Perimeter Drive, Scottsdale, Arizona 85255. The parties wish to
amend the Lease pursuant to this amendment (the "AMENDMENT").

         Section 32 (Lessor's Access; Showing Premises; Repairs) of the Lease
shall be amended as follows:

         The last sentence shall be deleted and replaced with the following
language:

         "Lessor shall notify Lessee at least forty-eight (48) hours prior to
         entering the Premises unless emergency access is required, in which
         case Lessor shall use its best efforts to provide as much advance
         notice to Lessee as is practicable under the circumstances, or as soon
         as possible thereafter. Access to the Premises shall only be granted to
         authorized representatives of Lessor and any independent contractors or
         others entering the Premises at the request of Lessor to make
         alterations, repairs, improvements or additions to the Premises. Any
         such contractors or other individuals entering the Premises must be
         fully licensed and bonded and must be accompanied at all times by an
         authorized representative of Lessor. If access is required after normal
         business hours, Lessor shall deactivate Lessee's security system upon
         entering the Premises, in accordance with Lessee's instructions, and
         Lessor shall reactivate Lessee's security system upon departure from
         the Premises. Lessor understands and acknowledges that Lessee has
         computers, laboratories, equipment and other valuable personal
         property, as well as proprietary business materials located on the
         Premises which Lessor shall not disturb during any period of access to
         the Premises. Lessor hereby assumes any and all risks of, and agrees to
         repair, replace or reimburse Lessee for, damage to or loss of any
         property located on the Premises and any injury, death, damage or loss
         to any third party or Lessor representatives occurring on the Premises
         during the time Lessor or its representatives are accessing the
         Premises, unless such injury, death, damage or loss is due to the
         negligence or willful misconduct of Lessee. Lessor agrees to indemnify,
         defend and hold Lessee, its affiliates and any of their respective
         officers, directors and employees harmless for, from and against any
         and all claims, demands, actions, causes of actions, lawsuits, damages,
         losses, injuries (including death) or other liabilities (including
         reasonable attorneys' fees) resulting from the entry of Lessor or any
         independent contractors or others entering
<PAGE>
         the Premises at the request of Lessor pursuant to this Section 32,
         unless such injury, death, damage or loss is due to the negligence or
         willful misconduct of Lessee."

         In the event of any conflict between the Lease and this Amendment, this
Amendment will control. The Lease shall remain in full force and effect except
to the extent previously amended and as amended hereby.

MOBILITY ELECTRONICS, INC.                  MOUNTAIN VALLEY COMMUNITY CHURCH
LESSEE                                      LESSOR

By:      /s/ Joan W. Brubacher              By:      /s/ Marilee M. Kay
   ---------------------------------            -------------------------------
Name:    Joan W. Brubacher                  Name:    Marilee M. Kay
     -------------------------------             ------------------------------
Title:   EVP and CFO                        Title:   Office Manager
      ------------------------------               ----------------------------
Date:    October 6, 2004                    Date:    October 6, 2004
     -------------------------------             ------------------------------

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