Document:

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EXHIBIT 4.12

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. IT MAY NOT BE TRANSFERRED, RESOLD, HYPOTHECATED OR OTHERWISE DISPOSED
OF UNLESS IT HAS BEEN REGISTERED UNDER THAT ACT OR AN EXEMPTION FROM
REGISTRATION IS AVAILABLE.

                             TELENETICS CORPORATION

          6% Convertible Subordinated Secured Promissory Note Due 2003

$474,852.32                                             Lake Forest, California
                                                                  June 25, 2001

         FOR VALUE RECEIVED, the undersigned, Telenetics Corporation, a
California corporation (the "COMPANY"), hereby promises to pay to Rutan &
Tucker, LLP the principal sum of Four Hundred Seventy-Four Thousand Eight
Hundred Fifty-Two Dollars and Thirty-Two Cents ($474,852.32), together with
interest (computed on the basis of a 360-day year of twelve 30-day months) as
provided below on the unpaid principal amount hereof at the rate of 6% per
annum.

         This Note is secured pursuant to the terms of a Security Agreement
between the Company and the holder of this Note, dated June 25, 2001 ("SECURITY
AGREEMENT"), and a UCC-1 Financing Statement filed with the Secretary of State
of the State of California, as the same may be amended, extended, modified or
replaced from time to time, and is subject to all the terms and conditions
thereof including, but not limited to, the remedies specified therein.

         This Note and any rights related thereto may not be assigned by the
holder of this Note to any third party, and this Note is non-negotiable and may
not be transferred by endorsement or delivery.

         1. PAYMENTS OF PRINCIPAL AND INTEREST. Interest on the unpaid principal
portion of this Note will accrue at a rate of 6% per annum from the date hereof.
Commencing on July 25, 2001, and continuing on the twenty-fifth day of each
month thereafter, principal and interest payments of $26,260.53 shall be due and
payable, with the final installment of principal and accrued interest due and
payable on January 25, 2003. The undersigned may prepay all or part of the
outstanding principal balance of this Note, together with all accrued but unpaid
interest thereon, only in accordance with this Note. All payments of principal
of and interest on this Note shall be in such coin or currency of the United
States of America as at the time of payment shall be legal tender for payment of
public and private debts.

         2. CERTAIN DEFINITIONS. For purposes of this Note, the following terms
shall have the following respective meanings:

         "COMMON STOCK" shall mean the Company's common stock, no par value per
share.

         "INSOLVENCY OR LIQUIDATION PROCEEDING" shall mean (i) any insolvency or
bankruptcy case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding, relative to the Company or to its
creditors, as such, or to its assets, or (ii) any liquidation, dissolution,
reorganization or winding up of the Company, whether voluntary or involuntary

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and whether or not involving insolvency or bankruptcy, or (iii) any assignment
for the benefit of creditors or any other marshaling of assets and liabilities
of the Company.

         "MARKET PRICE" of any security shall mean the average of the closing
prices of such security's sales on all national securities exchanges on which
such security may at the time be listed or on the Nasdaq System for which
real-time transaction reporting is required by an effective transaction
reporting plan, or, if there has been no sale on any such exchange or quotation
system on any day, the average of the highest bid and lowest asked prices on all
such exchanges at the end of such day, or, if on any day such security is not so
listed or quoted, the average of the highest bid and lowest asked prices on such
day in the domestic over-the-counter market as reported by the National
Quotation Bureau, Incorporated, or any similar successor organization, in each
such case averaged over a period of 21 days consisting of the day as of which
"Market Price" is being determined and the 20 consecutive business days prior to
such day. If at any time such security is not listed on any national securities
exchange or quoted in the Nasdaq System or the over-the-counter market, the
"Market Price" will be the fair value thereof determined by the Board of
Directors of the Company.

         "REORGANIZATION SECURITIES" shall mean shares of stock of the Company,
or its successor, as reorganized, or other securities of the Company or any
other person provided for by a plan of reorganization, the payment of which is
subordinated, at least to the same extent as this Note, to the payment of all
Senior Indebtedness which may at the time be outstanding and the principal of
which is due no earlier than the principal of this Note, provided that the
rights of the holders of the Senior Indebtedness are not impaired thereby or
such holders as a class shall have approved such plan of reorganization.

         "REPRESENTATIVE" shall mean the trustee, agent or other representative
for holders of all or any of the Senior Indebtedness, if any, designated in the
indenture, agreement or other document creating, evidencing or governing such
Senior Indebtedness or pursuant to which it was issued, or otherwise duly
designated by the holders of such Senior Indebtedness.

         "SENIOR INDEBTEDNESS" shall mean the principal of and unpaid interest
on all indebtedness or any other payment obligations of the Company regardless
of whether incurred or arising on, before or after the date of this Note (i) for
money borrowed from Celtic Capital Corporation (or any other bank, savings and
loan or other financial institution), Shala Shashani, doing business as SMC
Group, and SMC Communications Group, Inc. and (ii) in connection with any
renewals, extensions or replacements of any indebtedness described in (i) above;
PROVIDED, HOWEVER, that the term shall not include indebtedness which by the
terms of the instrument creating or evidencing it is subordinated to or on a
parity with this Note.

         3. SUBORDINATION. The provisions of this SECTION 3 apply
notwithstanding anything to the contrary contained in this Note. The Company
covenants and agrees, and the holder of this Note, by such holder's acceptance
hereof, likewise covenants and agrees, that the indebtedness represented by this
Note and the payment of the principal of and interest on this Note are hereby
expressly made subordinate and subject in right of the prior payment in full of
all Senior Indebtedness. This SECTION 3 constitutes a continuing offer to all
persons who become holders of, or continue to hold, Senior Indebtedness, each of
whom is an obligee hereunder and is entitled to enforce such holder's rights
hereunder, subject to the provisions hereof, without any act or notice of
acceptance hereof or reliance hereon.

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         4. DEFAULT.

                  4.1 EVENTS OF DEFAULT. If any of the following events (herein
called "EVENTS OF DEFAULT") shall occur:

                           (a) the Company shall default in the payment of any
part of the principal of this Note;

                           (b) the Company shall default in the payment of any
installment of interest on this Note for more than fifteen (15) days after the
same shall become due and payable;

                           (c) the Company shall breach or default in the
performance of any covenant or warranty of the Company in this Note, and
continuance of such breach for a period of thirty (30) days after there has been
given, by registered or certified mail, to the Company by the holder of this
Note, a written notice specifying such breach or default and requiring it to be
remedied;

                           (d) a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of the Company in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Company or for any
substantial part of its property, or ordering the winding-up or liquidation of
its affairs, and such decree or order shall remain unstayed and in effect for a
period of sixty (60) consecutive days; or

                           (e) the Company shall commence a voluntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, shall consent to the entry of an order for relief in an involuntary case
under any such law, or shall consent to the appointment of or taking possession
by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or for any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due, or shall take any corporate
action in furtherance of any of the foregoing;

then and in any such event the holder of this Note may at any time (unless all
defaults theretofore or thereupon shall have been remedied) at its option, by
written notice to the Company, declare this Note to be due and payable,
whereupon the same shall forthwith mature and become due and payable without
presentment, demand, protest or other notice, all of which are hereby waived.

                  4.2 REMEDIES ON AND NOTICES OF DEFAULT. Subject to the
provisions of SECTION 3, in case any one or more Events of Default shall occur,
the holder of this Note may proceed to protect and enforce the rights of such
holder by a suit in equity, action at law or other appropriate proceeding,
whether for the specific performance of any agreement contained in this Note, or
for an injunction against a violation of any of the terms or provisions hereof
or thereof, or in aid of the exercise of any power granted hereby or thereby or
by law. In case of a default under this Note, the Company will pay to the holder
of this Note such further amount as shall be sufficient to cover the reasonable

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cost and expense of enforcement, including, without limitation, reasonable
attorneys' fees. If the holder of this Note shall give any notice or take any
other action in respect of a claimed default, the Company shall forthwith give
written notice thereof to all other holders of similarly subordinated notes at
the time outstanding, describing the notice or action and the nature of the
claimed default. No course of dealing and no delay on the part of any holder of
this Note in exercising any right shall operate as a waiver thereof or otherwise
prejudice such holder's rights or the rights of the holder of any similarly
subordinated notes. No remedy conferred by this Note upon the holder shall be
exclusive of any other remedy referred to herein or now or hereafter available
at law, in equity, by statute or otherwise.

         5. CONVERSION. The holder of this Note may convert all or any portion
of the outstanding principal amount of this Note together with any accrued but
unpaid interest thereon into a number of shares of the Company's common stock
computed by dividing such principal amount (together with any accrued and unpaid
interest thereon) by $1.50 (the "Conversion Price").

         6. NO FRACTIONAL SHARES. No fraction of shares of the Company's Common
Stock shall be issued upon conversion of this Note. In lieu of the Company
issuing any fractional shares to the holder of this Note upon the conversion of
this Note, the Company shall pay to such holder the amount of outstanding
principal and accrued but unpaid interest that is not so converted.

         7. CONVERSION PRICE ADJUSTMENTS. The Conversion Price for conversion of
this Note pursuant to Section 5 shall be subject to adjustment from time to time
as follows:

                  (a) In the event the Company should, at any time or from time
to time after the date first set forth above, fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Common Stock
or the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in additional shares of Common Stock or other
securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly, additional shares of Common Stock (hereinafter
referred to as "COMMON STOCK EQUIVALENTS") without payment of any consideration
by such holder for the additional shares of Common Stock or the Common Stock
Equivalents (including the additional shares of Common Stock issuable upon
conversion or exercise thereof), then, as of such record date (or the date of
such dividend distribution, split or subdivision if no record date is fixed),
the Conversion Price of this Note shall be appropriately decreased so that the
number of shares of Common Stock issuable on conversion of each share of such
series shall be increased in proportion to such increase of the aggregate of
shares of Common Stock outstanding and those issuable with respect to such
Common Stock Equivalents.

                  (b) If the number of shares of Common Stock outstanding at any
time after the date first set forth above is decreased by a combination of the
outstanding shares of Common Stock, then, following the record date of such
combination, the Conversion Price for this Note shall be appropriately increased
so that the number of shares of Common Stock issuab1e on conversion of this Note
shall be decreased in proportion to such decrease in outstanding shares.

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         8. LIQUIDATING DIVIDENDS. If the Company declares or pays a dividend
upon the Common Stock payable otherwise than in cash out of earnings or earned
surplus (determined in accordance with generally accepted accounting principles,
consistently applied) except for a stock dividend payable in shares of Common
Stock (a "Liquidating Dividend"), then the Company will pay to the holder of
this Note at the time of payment thereof the Liquidating Dividends which would
have been paid on the Common Stock had the entire outstanding principal amount
of this Note been converted immediately prior to the date on which a record is
taken for such Liquidating Dividend, or, if no record is taken, the date as of
which the record holders of Common Stock entitled to such dividends are to be
determined.

         9. COVENANTS.

                  (a) The Company will duly and punctually pay the principal of
and interest on this Note in accordance with the terms of this Note.

                  (b) The Company (or any successor by merger, consolidation or
otherwise) will do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence and franchises; PROVIDED,
HOWEVER, that the Company shall not be required to preserve any right or
franchise if the Board of Directors of the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not disadvantageous in any material
respect to the holder of this Note.

         10. MISCELLANEOUS.

                  (a) This Note shall be governed by and construed in accordance
with the laws of the State of California. If any one or more of the provisions
contained in this Note shall for any reason be found by a court of competent
jurisdiction to be invalid, illegal or unenforceable in any respect, the parties
agree that such court may modify such provision to the extent necessary to make
it valid, legal and enforceable. In any event, such provision shall be separable
and shall not limit or affect the validity, legality or enforceability of any
other provision hereunder.

                  (b) If this Note is collected by law or through an attorney
for collection or enforcement, the holder hereof shall be entitled to collect
reasonable attorneys' fees and all costs of collection from the Company. The
Company hereby waives presentment for payment, notice of nonpayment, protest and
notice of protest.

                  (c) Unless otherwise specifically stated herein, all notices,
demands, payments or other communications to be given or delivered pursuant to
this Note shall be in writing and shall be given to the Company at its principal
executive offices and to the holder of this Note at the holder's last known
address as shown in the records of the Company.

                  (d) All of the covenants contained herein shall bind the
Company, its successors and assigns. This Note and any rights related thereto
may not be assigned by the holder of this Note to any third party, and this Note
is non-negotiable and may not be transferred by endorsement or delivery.

         IN WITNESS WHEREOF, the Company has executed and delivered this Note on
the date first written above.

                                        TELENETICS CORPORATION

                                        By: /S/ David Stone
                                            ------------------------------------
                                            David Stone, Chief Financial Officer

                                       5<PAGE>
EXHIBIT 4.13

                           FINANCIAL PUBLIC RELATIONS
                              CONSULTING AGREEMENT

This Financial Public Relations Consulting Agreement, (the "the Agreement") is
entered into this 31st day of May, 2001, by and between Telenetics Inc. ("TLNT")
a California Corporation with principle offices at 25111 Artic Ocean, Lake
Forest, CA 92630; and Alliance Corporate Services, Inc. ("ACS") a Canadian
corporation, with principal offices at #12A-1950 Government Street, Victoria
B.C., V8T 4N8.

                                    RECITALS

WHEREAS: TLNT desires to engage ACS to perform consulting services for TLNT's
financial public relations requirements in the area of investor relations and
broker/dealer relations.

WHEREAS: ACS desires to provide its expertise and consulting services to TLNT's
financial public relations activities involving TLNT's business relations and
working relationships with public/private/institutional investors,
broker/dealers and financial advisors/analysts in the securities and financial
services community.

                                    AGREEMENT

WITNESSETH: In consideration of the mutual promises and covenants contained in
this Agreement, the parties hereto agree as follows:

         1)       TERM OF THE AGREEMENT: The term of this Agreement shall be for
                  a period of six (6) months commencing on May 31, 2001. Either
                  party, in accordance with the provisions as set forth in
                  Section 6, may terminate this Agreement.

         2)       CONSULTING SERVICES: ACS will provide consulting services to
                  TLNT regarding financial public relations; subject to the
                  condition that ACS shall not be required to be registered and
                  licensed with any federal or state regulatory body or
                  self-regulating agency. During the term of this Agreement ACS
                  will provide those usual customary services performed by a
                  financial public relations firm to a public corporation
                  including, but not necessarily limited to, the following:

                  2.1)     Install and maintain a toll free phone line for all
                           investor inquiries;

                  2.2)     Update and manage the TLNT shareholder database,
                           which will be used for direct shareholder
                           communications;

                  2.3)     Assist in developing a financial public relations
                           program designed to increase awareness of TLNT within
                           the public and private investment community.

                  2.4)     Introduce TLNT to brokers and fund managers for the
                           purpose of investing in the company in the market or
                           through private placement;
<PAGE>

                  2.5)     Assist TLNT in the preparation and dissemination of
                           due diligence packages, Corporate profiles and fact
                           sheets requested by and furnished to NASD registered
                           broker/dealers, and/or other institutional and/or
                           fund managers requesting such information concerning
                           TLNT and conduct all appropriate follow-up;

                  2.6)     Work with analysts and newsletter writers to ensure
                           they understand TLNT and give it fair review;

                  2.7)     Make corporate introductions, suggestions, studies,
                           etc., to assist the company in implementing its
                           business plan;

                  2.8)     Assist TLNT in preparing and disseminating press
                           releases and news Announcements if required.

All of the foregoing documentation and information concerning TLNT shall be
prepared by ACS only from materials and information supplied by TLNT, including,
but not limited to, due diligence reports, corporate profiles, fact sheets and
newsletters, and said foregoing documentation and information concerning TLNT
shall be approved by TLNT, in writing, prior to dissemination by ACS.

         3)       REQUIREMENTS OF TLNT:

                  3.1)     TLNT shall deliver to ACS within seven (7) days after
                           the execution of this Agreement, the following:

                           a)       A complete TLNT due diligence package, which
                                    shall include all of TLNT's filings with the
                                    Securities and Exchange Commission for the
                                    previous twelve months;

                           b)       Copies of all TLNT's press releases for the
                                    previous twelve months;

                           c)       Copies of all other relevant TLNT materials,
                                    such as company reports or brochures;

                           d)       A list of the brokers and market makers for
                                    TLNT's securities and;

                           e)       A list of analysts or fund managers
                                    interested in or following TLNT's
                                    securities;

                           f)       A recent TLNT shareholder's list with all
                                    available addresses both postal and email;

                           g)       A summarized history of all TLNT equity
                                    issuances, including information on issue
                                    price, regulation S or 144 status, pending
                                    or promised registrations, all escrowed
                                    shares and estimated dates of release from
                                    escrow.

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                  3.2)     TLNT will promptly review materials created and
                           submitted by ACS and inform ACS, in writing of any
                           inaccuracies contained therein prior to the
                           distribution of said materials by ACS to other
                           parties.

                  3.3)     Immediately give written notice to ACS of any change
                           in TLNT's financial condition or in the nature of its
                           business or operations which had or might have an
                           adverse material effect on its operations, assets,
                           properties or prospects of its business.

                  3.4)     Give full details of all material facts concerning
                           TLNT to ACS and update such information on a timely
                           basis.

         4)       COMPENSATION FOR SERVICES: Upon execution of this Agreement,
                  TLNT hereby covenants and agrees to pay ACS as follows:

                  4.1)     Fifth thousand (50,000) shares of common stock of
                           TLNT as a signup bonus.

                  4.2)     Two thousand United States dollars (USD $2,000) per
                           month or four thousand shares of TLNT per month at
                           the sole option and discretion of TLNT, with monthly
                           payments payable in advance on the 1st of each
                           respective month for the term of the Agreement.

                  4.3)     Three warrants to purchase shares from TLNT; the
                           first shall be for fifty thousand shares of TLNT, at
                           a price of USD $0.75, the second shall e for fifty
                           thousand shares of TLNT, at a price of USD $1.00 and
                           the third shall be for one hundred thousand shares of
                           TLNT, at a price of USD $2.00.

                  4.4)     All warrants shall be valid for eighteen months from
                           the commencement date of this contract and all share
                           issue or issuable under this section shall have
                           piggyback registration rights.

5)                REIMBURSEMENT FOR EXPENSES. TLNT shall, subject to its prior
                  written approval, pay all reasonable costs and expenses
                  incurred by ACS, its directors, its officers, employees and
                  agents, in the performance of its consulting services as set
                  forth in Section 2 above, excluding ACS's general and
                  administrative costs. Such expenses shall include the
                  following:

                  5.1)     Usual and customary travel expenses provided such
                           expenses are incurred solely on behalf of TLNT.

                  5.2)     Admission fees to financial and/or investment events
                           when such fees are incurred solely on behalf of TLNT.

                  5.3)     Internet, Radio, TV and print media advertising
                           expenses.

                  5.4)     Printing and publication expenses of marketing
                           materials not provided by TLNT.

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<PAGE>

                  5.5)     Postage and handling costs of any bulk mailings and
                           courier costs for dissemination of due diligence
                           packages of TLNT.

                  5.6)     All costs associated with the startup, usage charges
                           and maintenance charges of a dedicated toll free
                           telephone number.

                  5.7)     TLNT shall pay in advance or reimburse ACS for the
                           above expenses as planned or incurred within ten (10)
                           days of receipt of invoice.

6)       TERMINATION: Except as provided for in Section 7.3, this Agreement may
         be terminated by either party upon thirty (30) days written notice,
         delivered to the other party as provided for and set forth in Section
         11 below. In the event this agreement is terminated by TLNT, all
         compensation paid to ACS by TLNT pursuant to Section 4.1 and Section
         4.2 shall be deemed earned.

7)       REPRESENTATIONS AND WARRANTIES OF ACS. ACS represents and warrants to
         TLNT the following:

         7.1)     ACS is a corporation duly organized and validly existing
                  under, and by virtue of, the laws of the Province of British
                  Columbia, Canada and is in good standing under such laws. ACS
                  has all requisite power and authority, corporate and
                  otherwise, to operate its business as presently conducted and
                  to provide the consulting services as proposed herein. ACS has
                  not taken any action, adopted any plan, or made any agreement
                  in respect of any merger, consolidation or sale of any
                  reorganization, dissolution, or liquidation. ACS has all
                  requisite legal or corporate power and authority to execute
                  and deliver this Agreement and perform its obligations under
                  the terms of this Agreement. ACS is not in violation of its
                  Articles of Incorporation or its by-laws and this Agreement
                  does not conflict with the foregoing or any other agreement.

         7.2)     ACS is not in violation of any law or regulation or under any
                  order of any court or municipal or other governmental
                  department, commission, board, bureau, agency or
                  instrumentality having jurisdiction which would have a
                  material adverse effect on its ability to perform the
                  consulting services described herein during the Term of this
                  Agreement. ACS has conducted and is conducting its business in
                  substantial compliance with the requirements, standards,
                  criteria and conditions set forth in all applicable statutes,
                  ordinances, permits, licenses, orders, approvals, variances,
                  rules, regulations, judgments and decrees and is not in
                  violation of any of the foregoing which might have a material
                  adverse effect on the business or assets of ACS.

                                      -4-
<PAGE>

         7.3)     There are no claims, actions, suits, governmental
                  investigation, arbitration, legal, administrative or other
                  proceeding of any nature, pending or, to the knowledge of ACS
                  threatened against ACS or its operations, properties, assets,
                  financial condition or prospects at law or in equity, domestic
                  or foreign, criminal or civil, or before or by any
                  governmental department, commission, board, bureau, agency or
                  instrumentality having jurisdiction over ACS either in Canada
                  or the United States, and no notice of any claim, action, suit
                  or proceeding, whether pending or threatened, that shall
                  impede or interfere with ACS's service performance
                  requirements as set forth in this Agreement. ACS further
                  represents that neither it nor any of its officers, directors,
                  employees, agents and affiliates is not now or has ever been
                  the subject of, a U.S. Securities and Exchange Commission
                  ("SEC") investigation or the enforcement action of any agency
                  or been prosecuted for, or convicted of, a felony, which has
                  not been disclosed to TLNT prior to the execution of this
                  Agreement.

         7.4)     During the term of this Agreement, if ACS or any of its
                  officers, directors, employees, agents and affiliates is
                  notified by the SEC or any Canadian agency of a pending or
                  ongoing investigation, ACS shall within 24 hours, notify TLNT
                  to its fax number as provided in Section 11. Failure by ACS to
                  disclose to or notify TLNT as described herein shall be cause
                  for TLNT to immediately declare this Agreement terminated
                  without the required thirty-day notice.

         7.5)     No representative or warranty made by ACS herein, or in any
                  document delivered by ACS to other parties, pursuant to this
                  Agreement, shall contain any misstatement of any material fact
                  or omits to state, any material fact necessary to make any
                  material statement made not misleading.

         7.6)     ACS and its independent counsel have been offered every
                  opportunity to ask any questions and make any inquiry with
                  respect to TLNT and this Agreement ACS has not relied in any
                  manner on any other representations either oral or written
                  furnishes to it by TLNT.

8)       REPRESENTATIONS AND WARRANTIES OF TLNT.

         8.1)     TLNT is a corporation duly organized and validly existing
                  under, any by virtue of, the law of California and is in good
                  standing under such laws. TLNT has all requisite legal
                  corporate power and authority to execute and deliver this
                  Agreement and perform its obligations under the terms of this
                  Agreement.

         8.2)     Delivery of TLNT shares will transfer to ACS good and
                  marketable title to TLNT shares, free and clear of any liens.
                  TLNT is not in violation of its Certificate of Incorporation
                  or Bylaws, or in any material respect in violation of any term
                  or provision of any material agreements to which it is a
                  party. Neither the execution, delivery, nor any violation of,
                  or conflict with, or has resulted or will result in, any of
                  the foregoing corporate documents or agreements. This
                  Agreement is a legal, valid and binding obligation of TLNT.

                                      -5-
<PAGE>

         8.3)     No representation or warranty made by TLNT herein, or in any
                  document delivered by TLNT to other parties, pursuant to this
                  Agreement, shall contain any misstatement of any material fact
                  or omits to state, any material fact necessary to make any
                  material statement made not misleading.

         8.4)     There are no facts, which TLNT has not disclosed, in SEC
                  filings or press releases, which materially adversely affects,
                  or, may adversely affect the business, operations, prospects,
                  assets, profits or condition (financial or otherwise) of TLNT.

         8.5)     TLNT has had independent legal counsel review and advise on
                  the contents of this Agreement and will maintain independent
                  legal counsel to advise TLNT on all matters concerning, but
                  not necessarily limited to, corporate relations, investor
                  relations and all manners concerning and in connection with
                  TLNT activities regarding the Securities Act of 1933 and 1934,
                  and state Blue Sky laws.

9)       LIMITED LIABILITY. Pursuant to the terms of this Agreement, ACS shall
         not be liable to TLNT, or to any third party claimant due to any
         relationship with TLNT, for any acts or omissions in the performance of
         services by ACS herein defined, or by the officers, directors, agents
         or employees of ACS, except when said acts or omissions of ACS are due
         to its willful misconduct. If ACS fails to perform its services
         hereunder, its liability to the TLNT shall not exceed the actual
         monetary value of this contract. In no event will ACS be liable for any
         indirect, special or consequential damages resulting from any claim
         against TLNT by any person or entity relating to this agreement, unless
         such damages result from the use, by ACS, of information not authorized
         by TLNT, or from acts or omissions of the ACS are due to is willful
         misconduct.

10)      NONDISCLOSURE. Except as may be required by law, neither TLNT nor ACS,
         their officers, directors, employees, agents and affiliates shall
         disclose the contents and provisions of this Agreement to any
         individual or entity without the other party's expressed written
         consent, except disclosure to each party's counsel, accountants and
         other persons performing investment banking, financial, or related
         functions for said party.

11)      NOTICES. Notices to be sent pursuant to the terms and conditions of
         this Agreement, shall be sent as follows:

              If to TLNT:                      If to ACS:
              Shala Shashani Lutz              Peter Laipnieks
              Telenetics Corporation           Alliance Corporate Services, Inc.
              25111 Artic Ocean Drive          12A-1950 Government St.
              Lake Forest, California          Victoria, British Columbia
              U.S.A. 92630                     Canada V8T 4N8
              (949) 455-9324 (telefax)         (205) 380-2275 (telefax)

                                      -6-
<PAGE>

         Except as provided for in Section 7.3, any notice or other
         communications required to be given hereunder in writing, and shall be
         deemed to have been duly given when delivered personally or sent by
         registered or certified mail, return receipt requested, postage prepaid
         to the parties hereto as their respective principal business offices.

12)      ENTIRE AGREEMENT. This Agreement represents the entire agreement
         between the Parties in relation to its subject matter and supersedes
         and voids all prior written agreements between the parties.

13)      AMENDMENT OF AGREEMENT. This Agreement may be altered or amended, in
         whole or in part, only in writing executed by both parties.

14)      SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure to
         the benefit of the parties and their respective heirs, executors,
         administrations, legal representatives, successors, and assigns.

15)      WAIVER. No waiver of any breach or condition of this Agreement shall be
         deemed to be a waiver of any other subsequent breach of condition,
         whether of a like or different nature, unless such shall be signed by
         the person making such waiver and/or which by its terms so provides.

16)      SEVERABILITY. If any provision of this Agreement shall be held to be
         invalid or unenforceable, such invalidity or unenforceability shall
         attach only to such provision of this Agreement, and this Agreement
         shall be carried out as if such invalid or unenforceable provision were
         not contained herein.

     Alliance Corporate Services Inc.

     Per:  /s/ John A. Kuehne                        Date  June 7, 2001
           ----------------------------------

     Telenetics Inc.

     Per:  /s/ Shala Shashani Lutz                   Date  May 31, 2001
           ---------------------------------

                                      -7-

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