Document:

EXHIBIT 10.2
                                                                    ------------

                  CONSENT AND SIXTH AMENDMENT TO LOAN AGREEMENT

         SIXITH AMENDMENT (this "Amendment") entered into as of July 26, 2005
between MEDIS TECHNOLOGIES LTD., a Delaware corporation (the "Borrower") and
BANK OF AMERICA, N.A. (successor by merger to FLEET NATIONAL BANK) (the "Bank").

         WHEREAS, the Borrower and the Bank are parties to a Loan Agreement
dated as of December 29, 2000, as amended by a First Amendment to Loan Agreement
dated as of October 24, 2002, a Second Amendment to Loan Agreement dated as of
February 20, 2003, a Third Amendment to Loan Agreement dated as of September 30,
2003, a Fourth Amendment to Loan Agreement dated as of October 18, 2004 and a
Fifth Amendment to Loan Agreement dated as of May 5, 2005 (the "Agreement"; all
capitalized terms used herein, unless otherwise defined herein, have the same
meanings provided therefor in the Agreement, as amended hereby);

         WHEREAS, the Borrower has informed the Bank that it plans to issue in
one or more private offerings up to $49 million of a new class of securities,
namely, 6% senior convertible notes due 2010, that will be convertible into
common stock of the Borrower (the "Convertible Notes") pursuant to a certain
Indenture dated as of July 26, 2005 between the Borrower and Wachovia Bank,
National Association, as trustee (the "Indenture") (said transactions
hereinafter referred to individually as a "Note Offering" and collectively as
the "Note Offerings");

         WHEREAS, the Borrower has requested that the Bank consent to the Note
Offerings and amend the Agreement to make relevant changes in order to permit
the Note Offerings to take place, and the Bank is agreeable to providing such
consent and amendment, subject to the terms hereof;

         NOW, THEREFORE, for valuable and legally sufficient consideration, the
receipt of which is hereby acknowledged by the parties, the parties hereto
hereby agree as follows:

         ARTICLE 1. CONSENT TO NOTE OFFERINGS.

         1.1 Subject to all of the terms and conditions of this Amendment, the
Bank hereby consents to the Note Offerings and waives any Default or Event of
Default under any Loan Document that may exist or may arise as a result thereof.
Without limiting the effect of the foregoing, the Agreement and each of the
other Loan Documents is hereby deemed amended to the extent necessary to permit
the consummation of the Note Offerings.

         ARTICLE 2. CONDITIONS OF CONSENT.

         2.1 This Amendment, including the consent and waiver set forth in
Section 1.1 hereof, shall be subject to the satisfaction of each of the
following terms and conditions and shall not be effective unless and until each
of the following terms and conditions shall have been fulfilled to the
satisfaction of the Bank:

<PAGE>

                  (a) The Note Offerings shall have been or shall be consummated
         on or before September 15, 2005 substantially in accordance with the
         description appearing in the recitals set forth above, and promptly
         following the execution of the Indenture, the Borrower shall have
         delivered to the Bank a final execution copy thereof and the principal
         closing documents delivered in connection with the first Note Offering,
         and shall have promptly delivered to the Bank the principal closing
         documents delivered in connection with each subsequent Note Offering;

                  (b) That such consent and waiver is strictly limited to the
         terms of the Note Offerings as described in this Amendment and in any
         other writing delivered by Borrower to the Bank pursuant hereto;

                  (c) That this Amendment between the Borrower and the Bank
         shall have been executed and delivered and be fully effective;

                  (d) All fees and expenses of the Bank, including the
         reasonable fees and expenses of counsel to the Bank, incurred in
         connection with this Amendment, shall have been paid in full;

                  (e) All representations, warranties and acknowledgements
         contained in this Amendment below shall be true and correct;

                  (f) That, consistent with Section 5.6 of the Agreement, as
         amended hereby, the Borrower shall have commenced necessary
         arrangements to invest substantially all of the unused net proceeds of
         the Note Offerings with or through the Bank or one or more of its
         Affiliates; and

                  (g) That such consent and waiver is strictly limited to the
         terms as set forth herein.

         ARTICLE 3. AMENDMENTS TO THE AGREEMENT.

         3.1 The following new definition is hereby inserted into Section 1.1 of
the Agreement in the appropriate alphabetical order:

         "Note Offerings" shall mean one or more private offerings of up to $49
         million of a new class of securities, namely, 6% senior convertible
         notes due 2010, that will be convertible into common stock of the
         Borrower (the "Convertible Notes") pursuant to a certain Indenture
         dated as of July 26, 2005 between the Borrower and Wachovia Bank,
         National Association, as trustee (the "Indenture").

         3.2 The following definitions found in Section 1.1 of the Agreement are
hereby amended in their entirety to read as follows:

         "Cash Collateral Effective Date" shall mean the first Business Day
         after the consummation of the first Subsequent Offering to occur after
         the date of this Agreement that the Bank obtains a first priority
         perfected Lien on Cash Collateral in an amount not less than 100% of
         the then aggregate principal balance of all outstanding Loans.

         "Subsequent Offering" shall mean each and every public or private sale
         of debt or Capital Stock of the Borrower occurring after the date of
         this Agreement, including without limitation the Note Offerings.

                                        2
<PAGE>

         3.3 Section 2.12 of the Agreement is hereby amended in its entirety to
read as follows:

         SECTION 2.12 USE OF PROCEEDS

                  The proceeds of Loans hereunder shall be used to bridge the
         Borrower's working capital needs until it consummates any Subsequent
         Offering and it is expressly acknowledged and agreed by the Borrower
         that proceeds of each Subsequent Offering shall be utilized as Cash
         Collateral in the manner provided in this Agreement if there are any
         Loans then outstanding. Furthermore, it is expressly agreed that the
         Loans shall be utilized for the Borrower's working capital purposes in
         an manner consistent with Borrower's working capital needs in its most
         recent fiscal year; PROVIDED, THAT, in no event shall any Loans be used
         to fund construction of any of the Borrower's (or its Affiliate's)
         manufacturing plants or to pay fees to any Person in connection with
         any Subsequent Offering.

         3.4 Section 5.6 of the Agreement is hereby amended in its entirety to
read as follows:

         SECTION 5.6. MAINTAIN OPERATING ACCOUNTS; INVESTMENT OF SUBSEQUENT
OFFERING PROCEEDS

                  Maintain all of its primary operating and investment accounts
         with the Bank and invest with or through the Bank or one or more of its
         Affiliates substantially all of the unused net proceeds of each
         Subsequent Offering.

         3.5 Section 5.9(a) of the Agreement is hereby amended by inserting the
word "first" immediately prior to the words "Subsequent Offering".

         3.6 Section 7.1 of the Agreement is hereby amended by deleting clause
(v) at the end thereof and substituting the following replacement clause (v):

         and (v) the Note Offerings (and any Subsequent Offering that was
         consummated prior to the Note Offerings that constitutes Indebtedness
         for borrowed money, if any).

         3.7 Section 7.6 of the Agreement is hereby amended in its entirety to
read as follows:

         SECTION 7.6. DIVIDENDS

                  Declare or pay any dividends on its Capital Stock (other than
         dividends payable solely in shares of its own common stock), or
         purchase, redeem, retire or otherwise acquire any of its Capital Stock
         at any time outstanding, except (i) any Subsidiary wholly owned by the
         Borrower may declare and pay dividends to the Borrower, and (ii) the
         Borrower may exercise its option to redeem, repurchase or convert the
         Convertible Notes solely to the extent permitted under the terms of the
         Indenture in connection with the Note Offerings.

         3.8 Section 7.9 of the Agreement is hereby amended in its entirety to
read as follows:

         SECTION 7.9. AMENDMENT OF INDENTURE

                  Without the prior written consent of the Bank, enter into any
         amendment of Article XI of the Indenture or otherwise permit the
         amendment or waiver of any subordination provision running to the favor
         of senior creditors in any document delivered in connection with the
         Note Offerings in a manner which is adverse to the Bank or such other
         senior creditors.

                                        3
<PAGE>

         ARTICLE 4. ACKNOWLEDGMENTS AND CONFIRMATIONS

         4.1 The Agreement and all other Loan Documents shall each be deemed
amended hereby to the extent necessary, if any, to give effect to the provisions
of this Amendment.

         4.2 All Collateral is and shall continue to be collateral security for
the Obligations, as amended hereby. Without limiting the generality of the
foregoing, the Borrower hereby absolutely and unconditionally confirms that the
Agreement (as amended hereby), the Note (as amended and restated pursuant
hereto), and all other Loan Documents (to the extent amended hereby), to which
it is a party, and any other documents delivered by it in connection therewith,
continue in full force and effect, are ratified and confirmed in all respects
and are and shall continue to be fully effective.

         4.3 Whenever the Agreement is referred to in the Agreement or in any of
the other Loan Documents or other documents delivered in connection therewith,
it shall be deemed to mean the Agreement as amended by this Amendment.

         4.4 All Obligations under the Loan Documents are and shall continue to
constitute Secured Indebtedness and Designated Secured Indebtedness for purposes
of (and as such terms are defined in) the Indenture.

         ARTICLE 5. REPRESENTATIONS AND WARRANTIES.

         The Borrower hereby represents and warrants to the Bank that:

         5.1 The Borrower has the power to execute, deliver and perform this
Amendment and has taken all necessary action, corporate or otherwise, to
authorize the execution, delivery and performance thereof. No consent or
approval of any Person, no waiver of any Lien or right of distraint or other
similar right and no consent, license, approval, authorization or declaration of
any governmental authority, bureau or agency, or any other third party, is or
will be required in connection with the execution, delivery or performance by
the Borrower of this Amendment.

         5.2 The execution and delivery by the Borrower of this Amendment, and
the performance by it hereof and of the Loan Documents as amended hereby, will
not violate any provision of law and will not conflict with or result in a
breach of any order, writ, injunction, ordinance, resolution, decree, or other
similar document or instrument of any court or governmental authority, bureau or
agency, domestic or foreign, or the organizational documents of the Borrower, or
create (with or without the giving of notice or lapse of time, or both) a
default under or breach of any agreement, bond, note or indenture to which the
Borrower is a party.

         5.3 This Amendment has been duly executed and delivered by the
Borrower, and constitutes its valid and legally binding obligation, enforceable
in accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, of other similar
laws, now or hereafter in effect, relating to or affecting the enforcement of
creditor's rights generally.

                                        4
<PAGE>

         5.4 The representations and warranties of the Borrower set forth in the
Agreement, as amended hereby, the other Loan Documents and/in the documents
executed pursuant thereto or in connection therewith, are true as of the date
hereof, with the same effect as though made on the date hereof, except (i) to
the extent necessarily rendered inaccurate by the passage of time and (ii) with
respect to the representation and warranties concerning Subsidiaries set forth
in Section 3.2, as they may relate to New Devices Engineering A.K.O. Ltd., a 75%
owned indirect subsidiary of the Borrower, of which the Company makes no
representations.

         5.5 After giving effect to this Amendment, no Default or Event of
Default exists.

         5.6 The Borrower's assets exceed its own (i.e. unconsolidated)
liabilities, and the Borrower is solvent. After giving effect to this Amendment,
the Borrower will be able to pay its debts as they mature, will own property
with fair saleable value greater than the amount required to pay its debts and
will have capital sufficient to carry on its business as then constituted.

         5.7 Upon the effectiveness of this Amendment, the Borrower remains
liable to the Bank with respect to all Obligations, without offset, defense or
counterclaim (any such offset, defense or counterclaim as may exist being hereby
irrevocably waived by the Borrower). As of the date hereof, there are no Loans
outstanding.

         5.8 As of the date hereof, the Borrower has not been required to
deliver to the Bank any Pledge Agreement in connection with the Loan Agreement.

         ARTICLE 6. EFFECTIVENESS CONDITIONS.

         This Amendment shall be effective upon completion of the following
conditions precedent (all documents to be in form and substance satisfactory to
the Bank and the Bank's counsel):

         6.1 Receipt by the Bank of executed counterparts of this Amendment duly
signed by the Borrower and the Bank, and joined in by the Guarantors.

         6.2 Receipt by the Bank's counsel of all fees and expenses in
connection with the preparation, execution and delivery, administration,
interpretation and enforcement hereof and all other documents contemplated
hereby.

         6.3 Delivery of such other documents, instruments and agreements as the
Bank or its counsel shall reasonably request.

         ARTICLE 7. MISCELLANEOUS.

         7.1 As specifically amended herein, the Agreement and the other Loan
Documents, shall remain in full force and effect in accordance with their
respective terms. This Amendment is limited as written and shall not be deemed
(a) to be an amendment of or a consent under or waiver of any other term or
condition of the Agreement or any other Loan Document, or (b) to prejudice any
right which the Bank now has or may have in the future under or in connection
with the Agreement or the other Loan Documents, as new or hereafter amended.

                                        5
<PAGE>

         7.2 This Amendment shall be governed and construed in accordance with
the laws of the State of New York.

         7.3 This Amendment may be signed in any number of counterparts with the
same effect as if the signature thereto and hereto were upon the same
instrument.

                   [SIGNATURES APPEAR ON THE FOLLOWING PAGE.]

                                        6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this 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: President

                                         BANK OF AMERICA, N.A. (successor by
                                         merger to FLEET NATIONAL BANK)

                                         By: /s/ Tanitha Boonyam
                                             -----------------------------
                                             Name:  Tanitha Boonyam
                                             Title: Vice President

                                        7
<PAGE>

                              JOINDER BY GUARANTORS
                              ---------------------

         Each of the Guarantors indicated below hereby consents to this Consent
and Sixth Amendment and reaffirms its continuing liability under its respective
Guarantee 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:  Managing Partner

                                          /s/ Howard Weingrow
                                          ----------------------------------
                                          Howard Weingrow, Individually

                                          /s/ Robert Lifton
                                          ----------------------------------
                                          Robert Lifton, IndividuallyEXHIBIT 10.2
                                                                   ------------

                         AMENDED AND RESTATED AGREEMENT

     This  Amended  and  Restated  Agreement  ("Amended Agreement"), is made and
entered  into  by  and  between LUNG HWA ELECTRONICS CO., LTD. ("LHE"), a Taiwan
Corporation  having  its  office and principal place of business at 3F, 248, Pei
Sheng  Rd.  Sec.  3,  Sheng  Keng,  Taipei Hsien, Taiwan, R. O. C., and I/OMAGIC
CORPORATION  ("IOMC"),  a  Nevada  corporation,  having its office and principal
place of business at 4 Marconi, Irvine, CA 92618, and is dated July 21, 2005 for
reference purposes only and is effective as of April 29, 2005.  LHE and IOMC are
each  referred  to  herein  as  a  "Party"  and  together  as  the  "Parties."

                                    RECITALS

     This  Amended  Agreement  is  entered  into with reference to the following
facts:

     WHEREAS,  LHE  and  IOMC  have  previously entered into a certain agreement
dated  June  6,  2005  in  connection  with  a $15 million trade credit facility
offered  by  LHE  to  IOMC  (the  "Agreement").

     WHEREAS,  LHE and IOMC now desire to amend and restate the Agreement in its
entirety  to  properly reflect the intent of both Parties and to apply the terms
of  the  Agreement  retroactively  effective  as  of  April  29,  2005.

     WHEREAS,  IOMC desires to use LHE as IOMC's International Purchasing Office
hereafter referred to as "IPO") to purchase certain computer peripheral products
for  IOMC.

     WHEREAS,  IOMC  has the desire to purchase from LHE and LHE desires to sell
certain  computer  peripheral and digital entertainment products manufactured by
LHE  ("OEM  Sales")

     NOW,  THEREFORE,  in  consideration of the covenants and promises contained
herein,  and  for  other  good  and  valuable  consideration,  the existence and
sufficiency  of  which  is  hereby  acknowledged,  the  Parties  hereto agree as
follows:

                                    AGREEMENT

 Terms  Applicable  to  IPO  Business  Model:
 --------------------------------------------

                                  Page 1 of 4

<PAGE>

1.     IOMC  may  instruct  LHE  to purchase consumer/computer products from its
designated     suppliers  for  IOMC  in  the  territory  of  the  North America.

2.     Price  Transparency:  LHE  shall  not  renegotiate  the  price  on IOMC's
       --------------------
purchase  order  to  LHE  for  products  to  be  purchased  with  the designated
suppliers,  unless  the  supplier and LHE offer IOMC the same reduction in price
for  such  products.  LHE agrees to provide and execute a Tri-Party Agreement to
be  negotiated  and  entered  into between IOMC, LHE and each supplier that IOMC
instructs  LHE  to  purchase  products  from.  LHE  agrees  that  the  Tri-Party
Agreement  shall  include, but not be limited to, LHE's agreement that LHE shall
not  renegotiate  prices  with  the  supplier.

3.     Handling  Charge  as  Being  IPO
       --------------------------------
     LHE  shall charge 5% handling charge based on the supplier's unit price. If
IOMC     reaches  an  average  running monthly purchasing volume of $750,000 per
month  under     either  the  IPO and/or OEM Sales Business models combined, LHE
shall  reduce  the     handling  charge by 2% as a volume discount to IOMC.  LHE
shall  credit  any volume     discounts on handling charges to IOMC by issuing a
credit  note  based  on  the  invoices.

4.     Returns
       -------
     IOMC  shall  return  nonconforming  or  defective  products directly to the
supplier.  LHE     agrees  to  issue  IOMC  a  credit  for the 3% or 5% handling
charge  on  the  returned     products  in  the event that the supplier issues a
return  credit to LHE for IOMC returned     products.  Returns to suppliers will
be negotiated and handled pursuant to a Tri-Party     Agreement executed by LHE,
IOMC,  and  supplier.

Terms  Applicable  to  IPO  and  OEM  Sales  Business  Model:
-------------------------------------------------------------

1.     Purchase  Order
       ---------------
IOMC  shall  issue  purchase  orders  to  LHE  during  the  term of this Amended
Agreement. The terms on all Purchase Orders shall be F.O.B. I/OMagic's warehouse
located  at 4 Marconi, Irvine, CA 92618, unless agreed upon otherwise in writing
by  both  parties.

2.     Credit  Line
       ------------
US  $15  million

3.     Payment:
       -------
(a)     Net  120  days from the date of LHE's invoice for the IPO Sales Business
Model;  Net  90  days  from the date of LHE's invoice for the OEM Sales Business
Model.  LHE

                                  Page 2 of 4

<PAGE>

shall issue individual invoices to IOMC for each shipment no earlier
than  the  shipment  date  of  the  Products  to  IOMC.
(b)     Payment  should  be made on the 121st day for IPO Sales and the 91st day
for  OEM  Sales, beginning on the date the invoice is issued with funds paid via
wire  transfer  to  bank  account  specified  below  (hereinafter referred to as
"Bank"):
(c)     Bank  information
Bank:  CHANG  HWA  COMMERCIAL  BANK,  LTD.  PEI  HSIN  BRANCH
Account  name:  LUNG  HWA  ELECTRONICS  CO.,  LTD.
Account  No.  5623-22-06271-500
SWIFT  CODE:  CCBCTWTP562
(d)  Interest shall accrue on any past due accounts at a rate of 0.5% per month.

4.     Early  Payment
       --------------
Upon  effectiveness  of  this  Amended  Agreement,  the  amount of $1,500,000 US
dollars  ("Early  Payment  Funds") shall be wired from IOMC to LHE.  These funds
will  be used to pay all IOMC invoices coming due for payment to LHE.  Any Early
Payment  Funds  remaining  after the payment of all IOMC outstanding invoices to
LHE  three  months  after  the  date of this Agreement shall be refunded to IOMC
immediately.  Once the Early Payment Funds have been used to pay all outstanding
IOMC  invoices,  or  three  months  after  the  effective  date  of this Amended
Agreement  has  expired,  whichever  is  sooner,  as a down payment for products
ordered,  IOMC  shall  pay  LHE 10% of the purchase price on any purchase orders
issued  to  LHE  within  ten  (10)  days  of  LHE's  invoice  date.

5.     Cancellation
       ------------
If IOMC cancels the Purchase Order, the cancellation penalty would depend on the
supplier's  request  stated  on  quotation  or  contract.

6.  Shipment
    --------
IOMC  will  pay for reasonable shipping expenses including transportation costs,
freight forwarder  and  related  customs/duties fees.

7.     Non-Competition
       ---------------
During  the  term of, or any extension of the term of, this Agreement, LHE shall
not  export,  market,  design,  manufacture  or sell any products similar to, or
which  either  alone  in  conjunction with some other goods, perform as or which
might  otherwise  compete  with  IOMC  in  the  North  America.

                                  Page 3 of 4

<PAGE>

8.     Duration
       --------
This  Amended  Agreement  shall remain valid for one (1) year from the effective
date  of  this  Amended  Agreement.  At  the  end  of  the  term of this Amended
Agreement,  if  either  party  would like to terminate the Amended Agreement the
terminating  party  shall provide the other party with at least thirty (30) days
prior  written  notice of termination.  Otherwise, the Amended Agreement will be
continuously  valid  without  signing  a  new  agreement.

9.     Monthly  Statements
       -------------------
LHE shall fax  or  e-mail  a  statement indicating all open items to IOMC within
15  days  after  the  end  of  each  month.

10.     Entire  Agreement
        -----------------
Except  as  provided  herein,  this  Amended  Agreement contains the entire
agreement  of  the  parties,  and  supersedes  all  existing  negotiations,
representations,  or  agreements  and  all  other  oral,  written,  or  other
communications  between  them concerning the subject matter of the Agreement and
this  Amended Agreement. There are no representations, agreements, arrangements,
or  understandings,  oral  or  written,  between  and  among  the parties hereto
relating  to  the  subject  matter  of this Amended Agreement that are not fully
expressed  herein.

10.     Applicable  Law
        ---------------
This Amended Agreement shall be subject to the laws of California and each party
hereby  submits  to  the  exclusive jurisdiction of the courts in Orange County,
California and irrevocably waives any rights it may have to bring proceedings in
any  other  jurisdiction  (including  without  limitation  on  the  grounds  of
inconvenient  forum.)

     IN WITNESS WHEREOF, the parties hereto have executed this Amended Agreement
by  their  duly  authorized  representatives  on  the  date and year first above
written.

I/OMAGIC  CORPORATION               LUNG  HWA  ELECTRONICS  CO.,  LTD.

/s/ Tony Shahbaz                    /s/ Peter Pai     7/21/2005

By:   Tony  Shahbaz                 By:     Peter  Pai
Its:  President  and  CEO           Its:    CEO

                                  Page 4 of 4

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