TERMINATION AGREEMENT

                              TERMINATION AGREEMENT

     This   TERMINATION   AGREEMENT   (the "Termination Agreement") is entered into

and   effective as of June 6, 2005, by and between Lung Hwa Electronics Co., Ltd.

hereafter   referred   to   as "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 (hereafter referred to as

"IOMC"), a Nevada corporation, having its office and principal place of business

at   4   Marconi,   Irvine,   CA   92618.

                                    RECITALS

     WHEREAS, LHE and IOMC have entered into an Agreement dated January 23, 2003

(the   "2003 Agreement"), in