Document:

Security Agreement

 Exhibit 10.2 
  
 SECURITY AGREEMENT: RIGHTS TO PAYMENT 
  
 1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned AXESSTEL, INC., a Nevada corporation,
(“Debtor”), hereby grants and transfers to WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”) a security interest in the account and rights to payment evidenced by, arising out of, and/or related to that
certain invoice no. 063004TCVS in the amount of U.S. $1,666,500 for 15,150 units - CDMA - Phone AXW-P800B to Telcel C.A. in favor of Debtor and dated June 30, 2004 and all replacements or substitutions therefor, a copy of which invoice is attached
for reference as Exhibit A hereto, together with all rights and interests of Debtor in the transactions and properties related thereto and all general intangibles associated therewith, (collectively called “Collateral”), now existing or at
any time hereafter, and prior to the termination hereof, arising (whether they arise from the sale, lease or other disposition of inventory or from performance of contracts for service, manufacture, construction, repair or otherwise or from any
other source whatsoever), including, without limitation, all securities, guaranties, warranties, indemnity agreements, insurance policies, supporting obligations and other agreements pertaining to the same or the property described therein, and in
all goods returned by or repossessed from Debtor’s customers, together with whatever is receivable or received when any of the Collateral or proceeds thereof are sold, collected, exchanged or otherwise disposed of, whether such disposition is
voluntary or involuntary, including, without limitation, all rights to payment, including returned premiums, with respect to any Insurance relating to any of the foregoing, and all rights to payment with respect to any claim or cause of action
affecting or relating to any of the foregoing (hereinafter called “Proceeds”). 
  
 2. OBLIGATIONS SECURED. The obligations secured hereby are the payment and performance of (a) all present and future Indebtedness of Debtor to Trade Bank; (b) all obligations of Debtor and rights of
Trade Bank under this Agreement; and (c) all present and future obligations of Debtor to Trade Bank of other kinds. The word “indebtedness” is used herein in its most comprehensive sense and includes any and all advances, debts,
obligations and liabilities of Debtor, or any of them, heretofore, now or hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, and whether Debtor may be liable individually or jointly with others, or whether recovery upon such Indebtedness may be or hereafter becomes unenforceable. 
  
 3. TERMINATION. This Agreement will terminate upon the performance of all obligations of Debtor to Trade Bank,
including, without limitation, the payment of all Indebtedness of Debtor to Trade Bank, and the termination of all commitments of Trade Bank to extend credit to Debtor, existing at the time Trade Bank receives written notice from Debtor of the
termination of this Agreement. 
  
 4. OBLIGATIONS OF TRADE
BANK. Trade Bank has no obligation to make any loans hereunder. Any money received by Trade Bank in respect of the Collateral may be deposited, at Trade Bank’s option, into a non-interest bearing account over which Debtor shall have no
control, and the same shall, for all purposes, be deemed Collateral hereunder. 
  

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 5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Trade Bank that: (a)
Debtor’s legal name is exactly as set forth on the first page of this Agreement, and all of Debtor’s organizational documents or agreements delivered to Trade Bank are complete and accurate in every respect; (b) Debtor is the owner and has
possession or control of the Collateral and Proceeds; (c) Debtor has the exclusive right to grant a security interest in the Collateral and Proceeds; (d) all Collateral and Proceeds are genuine, free from liens, adverse claims, setoffs, default,
prepayment, defenses and conditions precedent of any kind or character, except the lien created hereby or as otherwise agreed to by Trade Bank, or as heretofore disclosed by Debtor to Trade Bank, in writing; (e) all statements contained herein and,
where applicable, in the Collateral are true and complete in all material respects; (f) no financing statement covering any of the Collateral or Proceeds, and naming any secured party other than Trade Bank, is on file in any public office; (g) all
persons appearing to be obligated on Collateral and Proceeds have authority and capacity to contract and are bound as they appear to be; (h) all property subject to chattel paper has been properly registered and filed in compliance with law and to
perfect the interest of Debtor in such property; and (i) all Collateral and Proceeds comply with all applicable laws concerning form, content and manner of preparation and execution, including where applicable Federal Reserve Regulation Z and any
State consumer credit laws. 
  
 6. COVENANTS OF
DEBTOR 
  
 (a) Debtor agrees in general: (i) to pay
indebtedness secured hereby when due; (ii) to indemnify Trade Bank against all losses, claims, demands, liabilities and expenses of every kind caused by property subject hereto; (iii) to pay all costs and expenses, including reasonable
attorneys’ fees, incurred by Trade Bank in the perfection and preservation of the Collateral or Trade Bank’s interest therein and/or the realization, enforcement and exercise of Trade Bank’s rights, powers and remedies hereunder; (iv)
to permit Trade Bank to exercise its powers; (v) to execute and deliver such documents as Trade Bank deems necessary to create, perfect and continue the security interests contemplated hereby; (vi) not to change its name, and as applicable, its
chief executive office, its principal residence or the jurisdiction in which it is organized and/or registered without giving Trade Bank prior written notice thereof; (vii) not to change the places where Debtor keeps any Collateral or Debtor’s
records concerning the Collateral and Proceeds without giving Trade Bank prior written notice of the address to which Debtor is moving same; and (viii) to cooperate with Trade Bank in perfecting all security interests granted herein and in obtaining
such agreements from third parties as Trade Bank deems necessary, proper or convenient in connection with the preservation, perfection or enforcement of any of its rights hereunder. 
  
 (b) Debtor agrees with regard to the Collateral and Proceeds, unless Trade Bank agrees otherwise in writing: (i) that Trade
Bank is authorized to file financing statements in the name of Debtor to perfect Trade Bank’s security interest in Collateral and Proceeds; (ii) where applicable, to insure the Collateral with Trade Bank named as loss payee, in form, substance
and amounts, under agreements, against risks and liabilities, and with insurance companies satisfactory to Trade Bank; (iii) not to permit any lien on the Collateral or Proceeds, except in favor of Trade Bank; (iv) not to sell, hypothecate or
otherwise dispose of, nor permit the transfer by operation of law of, any of the Collateral or Proceeds or any interest therein; (v) to keep, in accordance with generally accepted accounting principles, complete and accurate records regarding all
Collateral and Proceeds, and to permit Trade Bank to inspect the same and make 
  

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 copies thereof at any reasonable time; (vi) if requested by Trade Bank, to receive and use reasonable diligence to
collect Proceeds, in trust and as the property of Trade Bank, and to immediately endorse as appropriate and deliver such Proceeds to Trade Bank daily in the exact form in which they are received together with a collection report in form satisfactory
to Trade Bank; (vii) not to commingle Collateral or Proceeds, or collections thereunder, with other property; (viii) to give only normal allowances and credits and to advise Trade Bank thereof immediately in writing if they affect any Collateral or
Proceeds in any material respect; (ix) on demand, to deliver to Trade Bank returned property resulting from, or payment equal to, such allowances or credits on any Collateral or Proceeds or to execute such documents and to do such other things as
Trade Bank may reasonably request for the purpose of perfecting, preserving and enforcing its security interest in such returned property; (x) from time to time, when requested by Trade Bank, to prepare and deliver a schedule of all Collateral and
Proceeds subject to this Agreement and to assign in writing and deliver to Trade Bank all accounts, contracts, leases and other chattel paper, instruments, documents and other evidences thereof; (xi) not to allow any financing statement covering any
of Debtor’s inventory or proceeds thereof to be on file in any public office without Trade Bank’s prior written consent: (xii) in the event Trade Bank elects to receive payments of Collateral or Proceeds hereunder, to pay all expenses
incurred by Trade Bank in connection therewith, including, without limitation, expenses of accounting. correspondence, collection efforts, reporting to account or contract debtors, filing, recording, record keeping and expenses incidental thereto;
and (xiii) to provide any service and do any other acts which may be necessary to keep all Collateral and Proceeds free and clear of all defenses, rights of offset and counterclaims. 
  
 7. POWERS OF TRADE BANK. Debtor appoints Trade Bank its true attorney in fact to perform any of the following
powers, which are coupled with an interest, are irrevocable until termination of this Agreement and may be exercised from time to time by Trade Bank’s officers and employees, or any of them, whether or not Debtor is in default: (a) to perform
any obligation of Debtor hereunder in Debtor’s name or otherwise; (b) to give notice to account debtors or others of Trade Bank’s rights in the Collateral and Proceeds, to enforce or forebear from enforcing the same and make extension or
modification agreements with respect thereto; (c) to release persons liable on Collateral or Proceeds and to give receipts and acquittances and compromise disputes in connection therewith; (d) to release or substitute security; (e) to resort to
security in any order; (f) to prepare, execute, file, record or deliver notes, assignments, schedules, designation statements, financing statements, continuation statements, termination statements, statements of assignment, applications for
registration or like papers to perfect, preserve or release Trade Bank’s interest in the Collateral and Proceeds; (g) to receive, open and read mail addressed to Debtor; (h) to take cash, instruments for the payment of money and other property
to which Trade Bank is entitled; (i) to verify facts concerning the Collateral and Proceeds by inquiry of obligors thereon, or otherwise, in its own name or a fictitious name; (j) to endorse, collect, deliver and receive payment under instruments
for the payment of money constituting or relating to Proceeds; (k) to prepare, adjust, execute, deliver and receive payment under insurance claims, and to collect and receive payment of and endorse any instrument in payment of loss or returned
premiums or any other insurance refund or return, and to apply such amounts received by Trade Bank, at Trade Bank’s sole option, toward repayment of the Indebtedness; (l) to exercise all rights, powers and remedies which Debtor would have, but
for this Agreement, with respect to all Collateral and Proceeds subject hereto; (m) to make withdrawals from, and to close deposit accounts or other accounts with, any financial institution, wherever located, into which 
  

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 Proceeds may have been deposited, and to apply funds so withdrawn to payment of the Indebtedness; (n) to preserve or
release the interest evidenced by chattel paper to which Trade Bank is entitled hereunder and to endorse and deliver any evidence of title incidental thereto; and (o) to do all acts and things and execute all documents in the name of Debtor or
otherwise, deemed by Trade Bank as necessary, proper and convenient in connection with the preservation, perfection or enforcement of its rights hereunder. 
  
 8. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay, prior to delinquency, all insurance premiums, taxes,
charges, liens and assessments against the Collateral and Proceeds, and upon the failure of Debtor to do so, Trade Bank at its option may pay any of them and shall be the sole judge of the legality or validity thereof and the amount necessary to
discharge the same. Any such payments made by Trade Bank shall be obligations of Debtor to Trade Bank, due and payable immediately upon demand, together with interest at a rate determined in accordance with the provisions of this Agreement, and
shall be secured by the Collateral and Proceeds, subject to all terms and conditions of this Agreement. 
  
 9. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an “Event of Default” under this Agreement: (a) any
default in the payment or performance of any obligation, or any defined event of default, under (i) any contract or instrument evidencing any Indebtedness, or (ii) any other agreement between Debtor and Trade Bank, including, without limitation, any
loan agreement or promissory note, relating to or executed in connection with any Indebtedness; (b) any representation or warranty made by Debtor herein shall prove to be incorrect, false or misleading in any material respect when made; (c) Debtor
shall fail to observe or perform any obligation or agreement contained herein; (d) any impairment of the rights of Trade Bank in any Collateral or Proceeds, or any attachment or like levy on any property of Debtor; or (e) Trade Bank, in good faith,
believes any or all of the Collateral and/or Proceeds to be in danger of misuse, dissipation, commingling, loss, theft, damage or destruction, or otherwise in jeopardy or unsatisfactory in character or value. 
  
 10. REMEDIES. Upon the occurrence of any Event of Default,
Trade Bank shall have the right to declare immediately due and payable all or any Indebtedness secured hereby and to terminate any commitments to make loans or otherwise extend credit to Debtor. Trade Bank shall have all other rights, powers,
privileges and remedies granted to a secured party upon default under the California Uniform Commercial Code or otherwise provided by law, including, without limitation, the right (a) to contact all persons obligated to Debtor on any Collateral or
Proceeds and to instruct such persons to deliver all Collateral and/or Proceeds directly to Trade Bank, and (b) to sell, lease, license or otherwise dispose of any or all Collateral. All rights, powers, privileges and remedies of Trade Bank shall be
cumulative. No delay, failure or discontinuance of Trade Bank in exercising any right. power, privilege or remedy hereunder shall affect or operate as a waiver of such right, power, privilege or remedy; nor shall any single or partial exercise of
any such right, power, privilege or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by Trade Bank of
any default hereunder, or any such waiver of any provisions or conditions hereof, must be in writing and shall be effective only to the extent set forth in writing. It is agreed that public or private sales or other dispositions, for cash or on
credit, to a wholesaler or retailer or investor, or user of property 
  

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 of the types subject to this Agreement, or public auctions, are all commercially reasonable since differences in the
prices generally realized in the different kinds of dispositions are ordinarily offset by the differences in the costs and credit risks of such dispositions. While an Event of Default exists: (a) Debtor will deliver to Trade Bank from time to time,
as requested by Trade Bank, current lists of all Collateral and Proceeds; (b) Debtor will not dispose of any Collateral or Proceeds except on terms approved by Trade Bank; and (c) at Trade Bank’s request, Debtor will assemble and deliver all
Collateral and Proceeds, and books and records pertaining thereto, to Trade Bank at a reasonably convenient place designated by Trade Bank. Debtor further agrees that Trade Bank shall have no obligation to process or prepare any Collateral for sate
or other disposition. 
  
 11. DISPOSITION OF COLLATERAL AND
PROCEEDS; TRANSFER OF INDEBTEDNESS. In disposing of Collateral hereunder, Trade Bank may disclaim all warranties of title, possession, quiet enjoyment and the like. Any proceeds of any disposition of any of the Collateral or Proceeds, or any
part thereof, may be applied by Trade Bank to the payment of expenses incurred by Trade Bank in connection with the foregoing, including reasonable attorneys’ fees, and the balance of such proceeds may be applied by Trade Bank toward the
payment of the Indebtedness in such order of application as Trade Bank may from time to time elect. Upon the transfer of all or any part of the Indebtedness, Trade Bank may transfer all or any part of the Collateral or Proceeds and shall be fully
discharged thereafter from all liability and responsibility with respect to any of the foregoing so transferred, and the transferee shall be vested with all rights and powers of Trade Bank hereunder with respect to any of the foregoing so
transferred; but with respect to any Collateral or Proceeds not so transferred, Trade Bank shall retain all rights, powers, privileges and remedies herein given. 
  
 12. STATUTE OF LIMITATIONS. Until all Indebtedness shall have been paid in full and all commitments by Trade
Bank to extend credit to Debtor have been terminated, the power of sate or other disposition and all other rights, powers, privileges and remedies granted to Trade Bank hereunder shall continue to exist and may be exercised by Trade Bank at any time
and from time to time irrespective of the fact that the Indebtedness or any part thereof may have become barred by any statute of limitations, or that the personal liability of Debtor may have ceased, unless such liability shall have ceased due to
the payment in full of all Indebtedness secured hereunder. 
  
 13.
MISCELLANEOUS. When there is more than one Debtor named herein: (a) the word “Debtor” shall mean all or any one or more of them as the context requires; (b) the obligations of each Debtor hereunder are joint and several; and
(c) until all Indebtedness shall have been paid in full, no Debtor shall have any right of subrogation or contribution, and each Debtor hereby waives any benefit of or right to participate in any of the Collateral or Proceeds or any other security
now or hereafter held by Trade Bank. Debtor hereby waives any right to require Trade Bank to (i) proceed against Debtor or any other person, (ii) proceed against or exhaust any security from Debtor or any other person. (iii) perform any obligation
of Debtor with respect to any Collateral or Proceeds, and (d) make any presentment or demand, or give any notice of nonpayment or nonperformance, protest, notice of protest or notice of dishonor hereunder or in connection with any Collateral or
Proceeds. Debtor further waives any right to direct the application of payments or security for any Indebtedness of Debtor or indebtedness of customers of Debtor. 
  

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 14. NOTICES. All notices, requests and demands required under this Agreement must be in writing,
addressed to Trade Bank at the address specified in any other loan documents entered into between Debtor and Trade Bank and to Debtor at the address of its chief executive office (or principal residence, if applicable) specified below or to such
other address as any party may designate by written notice to each other party, and shall be deemed to have been given or made as follows: (a) if personally delivered, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or
three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy, upon receipt. 
  
 15. COSTS, EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Trade Bank immediately upon demand the full amount of all payments,
advances, charges, costs and expenses, including, without limitation, reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of in-house counsel of Welts Fargo Bank, N.A.), expended or incurred by Trade Bank in
exercising any right, power, privilege or remedy conferred by this Agreement or in the enforcement thereof, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including, without limitation, any adversary proceeding, contested matter or motion brought by Trade Bank or any other person) relating to Debtor or in any way affecting any of the Collateral or Trade
Bank’s ability to exercise any of its rights or remedies with respect thereto. All of the foregoing shall be paid by Debtor with interest from the date of demand until paid in full at a rate per annum equal to the greater of ten percent (10%)
or the Prime Rate of Wells Fargo Bank, N. A. in effect from time to time. 
  
 16. SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties,
and may be amended or modified only in writing signed by Trade Bank and Debtor. 
  
 17. OBLIGATIONS OF MARRIED PERSONS. Any married person who signs this Agreement as Debtor hereby expressly agrees that recourse may be had against his or her separate property for all his or her
Indebtedness to Trade Bank secured by the Collateral and Proceeds under this Agreement. 
  
 18. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or any remaining provisions of this Agreement. 
  
 19. GOVERNING LAW. This Agreement shall be governed by and be construed in accordance with the laws of the State of California. 

 
 Debtor warrants that Debtor is an organization registered under the laws
of the State of Nevada. 
  
 Debtor warrants that its chief
executive office (or principal residence, if applicable) is located at the following address: 6815 Flanders Avenue, Suite 210, San Diego, CA 92121. 
  

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 IN WITNESS WHEREOF, this Agreement has been duly executed as of August 17, 2004. 
  

			
	AXESSTEL, INC.
		
	By:	 	 /s/ David L. Morash

	Printed Name: David L. Morash
	Title: President & COO

  

 -7-Subscription Agreement

 Exhibit 10.22 
  
 SUBSCRIPTION AGREEMENT 
 (Shares)

  
 AXESSTEL, INC. 
  
 SHARE INTERESTS IN AXESSTEL, INC., A NEVADA CORPORATION, HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 4(2) OF THAT ACT. FURTHER, THE INTERESTS ARE BEING SOLD PURSUANT TO REGISTRATION OR EXEMPTIONS IN VARIOUS STATES IN WHICH THEY ARE BEING OFFERED AND
MAY BE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER IN SUCH JURISDICTIONS. THE INTERESTS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THE SHARE PURCHASE
AGREEMENT, AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS AND WILL NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH THE SUCH LAWS. 
  
 To be Fully Completed By Shareholders 
 Along With Appendices 
  
 If and when
accepted by the AXESSTEL, Inc. (the “Company”), this Subscription Agreement shall constitute a subscription for                     
shares (Minimum five thousand (5,000) or more shares, in the amount set forth herein (the “Shares”). This Subscription is part of a total offering of $1,000,000 (500,000 shares at $2.00 per share). Each part of this Subscription Agreement
must be completed by the subscriber and, by his execution below, he acknowledges that he understands that the Company is relying upon the accuracy and completeness of this document in complying with his obligations under applicable securities laws.

  
 1.    Method of Subscription: The
undersigned hereby subscribes for the number of Shares set forth below, at a price of $2.00 per Share issued by AXESSTEL, INC., a Nevada corporation. 
  
 The undersigned understands that before his subscription for Shares will be accepted, he must have completed, executed, acknowledged, sworn to (where
required) and returned to the Company, the following: 
  
 a.    This Subscription Agreement; 
  
 b.    The Purchaser Representative Affidavit, if applicable (available on request). 
  
 c.    Cash or check payable to the order of “AXESSTEL, INC.” in the amount of $2.00 for each Share subscribed ($10,000
Minimum Individual Investment). 
  

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 The undersigned further agrees that this subscription is and shall be irrevocable, but the obligations
hereunder will terminate if this subscription is not accepted by the Company in whole or in part, by the Closing Date. The Closing Date is January 31, 2003 (unless extended by the Company to February 15, 2003). 
  
 2.    Acceptance by Company: The undersigned
understands that the Company will notify him whether the subscription has been accepted, or rejected, in whole or in part, within ten (10) days after delivery to the Company or the Closing Date, whichever is later. If this subscription is rejected
by the Company, all funds and documents tendered by the undersigned shall be returned promptly, without interest or deduction. It is understood that the Company shall have the sole discretion of determining which of the subscriptions should be
rejected. 
  
 3.    Receipt and Review of
Offering Materials: The undersigned acknowledges that he has been furnished and has carefully read the Offering Documents, comprised primarily of the Company’s audited annual statements and quarterly unaudited statements, as filed with the
Securities and Exchange Commission, and the Business Plan of the Company (collectively, the “Offering Materials”), relating to the Company and the documents attached as exhibits. The undersigned understands that: 
  
 (a)    The Company has a limited financial and operating
history, and no long-term history as a profitable enterprise. 
  
 (b)    There are potential risks incident to the ownership of Shares in the Company, such investment is speculative and involves a possible loss by the undersigned of his investment in the Company. 
  
 (c)    No federal or state agency has passed upon the
Shares or made any finding or determination concerning the fairness of this investment and the terms of the offering may not conform to the guidelines of certain state securities administrators. 
  
 (d)    There can be no assurance that the Internal
Revenue Code or the Regulations promulgated thereunder will not be amended in a manner that would deprive the Company or its investors of any tax treatment the Shareholder believes will be derived from investment in the Company’s Shares.

  
 (e)    The books and records of the
Company will be reasonably available for inspection by the undersigned and/or his investment advisors, if any, at the Company’s place of business. 
  
 4.    Independent Advice: The undersigned acknowledges that they have been advised to consult their own attorney concerning the
Company and to consult with independent tax counsel regarding the tax consequences of an investment in Shares of the Company. 
  
 5.    Limitation on Transfer of Shares: The undersigned understands that an investment in the Company has certain limitations
that may restrict transfer. In particular, the undersigned recognizes and agrees that: 
  
 (a)    An investment in the Company Shares must be held at least one year. 
  

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 (b)    Because of the restrictions described below, there is a lack of any market
existing or to exist for these Shares and possible adverse tax consequences may result from a resale of Shares in the Company. 
  
 (c)    The undersigned’s right to transfer the Shares will be subject to compliance with securities regulations promulgated by
both state and federal governments. 
  
 (d)    Prior to any transfer or assignment of Shares becoming effective, the Company may require an opinion of counsel to the effect that such transfer or assignment will be made in compliance with applicable securities
laws. Because the Shares have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state, the undersigned must bear the economic risk of investment in the Shares for an indefinite period of time. Therefore,
the Shares cannot be offered, sold, transferred, pledged or hypothecated to any person unless they are either subsequently registered under said Act or an exemption from such registration is available. Further, unless the Shares are registered under
the securities act of the state in which offered and sold, the undersigned may not resell, hypothecate, transfer, assign or make any other disposition of said Shares except in a transaction exempt or excepted from the registration requirements of
the securities act of such state, and the specific approval of securities regulators of such sales may be required in some states. 
  
 6.    Conflicts of Interest: The undersigned understands that certain conflicts of interest exist between the Company and
certain of its officers and directors as set forth and described in the Offering Materials and hereby acknowledges, consents to and waives such conflicts of interest. 
  
 7.    Compensation to the Company: The undersigned also understands that the Company will receive
compensation or reimbursement for certain costs and expenses. The undersigned hereby consents to such distributions, reimbursements and compensation. 
  
 8.    Representations of Subscriber: The undersigned represents and warrants that: 
  
 (a)    The undersigned is at least twenty-one (21) years
of age, and is either (i) an “accredited investor” (as that term is defined in Rule 501 of Regulation D of the Securities and Exchange Commission), or (ii) has a net worth of at least five times the value of the Shares to be purchased
(exclusive of home, furnishings and automobiles and without regard to the undersigned’s investment in this offering) and had during the last taxable year and anticipates that he will have during the current taxable year gross income of at least
$50,000. If a corporation, it is on a consolidated basis according to its most recent financial statement, within the above net worth standard, and if a partnership, each partner is within the above standards. 
  
 (b)    The undersigned has carefully reviewed and
understands the risks of, and other considerations relating to, a purchase of Shares, including the risks set forth in the Offering Materials. 
  
 (c)    The undersigned, and their purchaser representatives and investment advisors, if any, have been furnished all materials
relating to the Company and its proposed activities, the offering of Shares or anything set forth in the Offering Materials which they have 
  

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 requested, and have been afforded the opportunity to obtain any additional information necessary to verify the accuracy
of any representations or information set forth in the Offering Materials. 
  
 (d)    The Company has answered all inquiries directed to it by the undersigned concerning the Company and its proposed activities, all matters relating to the technology transfer and the various
underlying contracts and the offering and sale of the Shares. 
  
 (e)    Neither the undersigned nor their purchaser representatives and investment advisors, if any, have been furnished any offering literature other than the Offering Materials and the documents attached as exhibits
thereto and the undersigned and his purchaser representatives and investment advisors, if any, have relied only on the information contained in the Offering Materials and such documents described in these subparagraphs (d) and (e), furnished or made
available to them by the Company. 
  
 (f)    The undersigned is acquiring the Shares for their own account, as principal, for investment purposes only and not with a view to the resale or distribution of all or any part of such Shares, and he has no present
intention, agreement or arrangement to divide their participation with others or to resell, assign, transfer or otherwise dispose of all or any part of such Shares unless and until they determine, at some future date, that changed circumstances, not
contemplated by them at the time of their purchase, makes such disposition advisable. 
  
 (g)    The undersigned, if a corporation, partnership, trust or other form of business entity, is authorized and otherwise duly qualified to purchase and hold Shares in the Company; has obtained
tax advice as it deems necessary; and such entity has its principal place of business as set forth herein and has not been formed for the specific purpose of acquiring Shares in the Company. (If the undersigned is one of the aforementioned entities,
it hereby agrees to supply any additional written information that may be requested by the Company.) 
  
 (h)    The undersigned has adequate means of providing for their current needs and personal contingencies and does not contemplate a
need for liquidity in this investment. 
  
 (i)    The undersigned has not distributed the Offering Materials to anyone other than a designated purchaser representative and no one except such purchaser representative has used the Offering Materials, and they have
not made any copies thereof. 
  
 (j)    All of
the information which is set forth below with respect to the undersigned is correct and complete as of the date hereof and, if there should be any material change in such information prior to the acceptance of this Subscription Agreement by the
Company, the undersigned will immediately furnish the revised or corrected information to the Company. 
  
 9.    Agreement to be Bound by Terms and Conditions: The undersigned hereby adopts, accepts and agrees to be bound by all the
terms and conditions of the offering made by the Offering Materials and the exhibits thereto, and by all the terms and provisions of the Share. Upon acceptance of this Subscription Agreement by the Company, the undersigned shall become a Share
holder for all purposes. In order to facilitate the acceptance of the undersigned and other subscribers as investors in the Company, the undersigned hereby irrevocably constitutes and appoints the President of the Company, with full power of
substitution, their agent and attorney- 
  

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 in-fact for the purposes of execution of the Subscription Agreement on behalf of the undersigned. 
  
 10.    Indemnity: The undersigned hereby agrees to
indemnify the Company and hold the Company harmless from and against any and all liability, damage, cost or expense incurred on account of or arising out of 
  
 (a)    Any inaccuracy in the Subscriber’s declarations, representations, and warranties set forth in this Subscription Agreement;

  
 (b)    The disposition of any of the
Shares which Subscriber will receive, contrary to their declarations, representations and warranties set forth in this Subscription Agreement; and 
  
 (c)    Any action, suit or proceeding based upon (i) the claim that said declarations, representations, or warranties were inaccurate
or misleading or otherwise cause for obtaining damages or redress from the Company; or (ii) the disposition of any of the Shares or any part thereof. 
  
 11.    Shareholder Rights Specific to this Investment: The purchaser of shares under this agreement has two specific rights not
possessed by other shareholders of the Company: 
  
 (a)    Right of “Best Efforts” Registration. Should the Company become listed on either the AMEX or NASDAQ Small Cap exchanges, then the Company will use its best efforts to immediately thereafter
commence registration of the Shares for purposes of allowing a sale of these shares into the free-trading marketplace. This right is good for one year from the date of Closing for the purchase of Shares acquired in this offering. 
  
 (b)    Anti-Dilution Protection. Should the
Company, within one year of the date of Closing, sell additional shares of restricted common stock of the Company in a private placement at a per-share price of less than $2.00, then the Company will immediately issue sufficient additional shares to
the Purchaser of Shares in this Offering such that, when the new shares are added to the previously purchased shares and divided into the original subscription amount, the Shareholder will have effectively received shares at a price equal to the
share sale price in the less-than-$2.00 Offering. 
  
 12.    Miscellaneous: The undersigned further understands, acknowledges and agrees that: 
  
 (a)    This Subscription Agreement is not transferable or assignable by the undersigned. 
  
 (b)    This Subscription Agreement, upon acceptance by
the Company, shall be binding upon the heirs, executors, administrators, successors and assigns of the undersigned. 
  
 (c)    If the undersigned is more than one person, the obligations of the undersigned shall be joint and several and the
representations and warranties herein contained 
  

 -5- 

 shall be deemed to be made by and be binding upon each such person and his heirs, executors, administrators, successors
and assigns. 
  
 (d)    This Subscription
Agreement shall be construed in accordance with and governed by the laws of the State of Nevada, except as to the manner in which the subscribing Share Holder elects to take title to Shares which shall be construed in accordance with the state of
his principal residence. 
  
 (e)    This
Subscription Agreement constitutes the entire agreement between the parties respecting the subject matter hereof. 
  
 13.    Representations as to Investment Qualifications: The undersigned represents that they have such knowledge and experience
in business and financial matters that they are capable of evaluating the Company and the proposed activities thereof, and the risks and merits of investment in the Shares, and of making an informed investment decision thereon, and have not
consulted with others in connection with evaluating such risks and merits. The undersigned hereby further represents, by placing their initials in front of the applicable description: 
  
 (a)    I am a natural person whose individual net worth, or joint net worth with his or her spouse, is
in excess of $1,000,000. For purposes of this paragraph, “net worth” means the excess of total assets at fair market value including home and personal property, over total liabilities; or who had an individual income in excess of $200,000
or with his or her spouse had joint income in excess of $300,000 and each of the previous two years and who reasonably expects to have the same income level this year. 
  
 (b)    I am a natural person whose net worth is at least $50,000 (exclusive of home, furnishings,
automobiles, and proposed investment in this partnership) and had during the last taxable year and expects to have during the current taxable year, a minimum gross income of $50,000. 
  
 (c)    A bank or savings and loan association acting in either its individual or a fiduciary capacity,
any broker/dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, an insurance company, an investment company registered under the Investment Company Act of 1940 or a business development company as defined in
that Act, a Small Business Investment Partnership licensed by the U.S. Small Business Administration, an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, so long as the decision to invest in the
Partnership is being made by a fiduciary which is either a bank, savings and loan association, insurance company or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 at the date hereof, or, of a
self-directed plan, with investment decisions made solely by persons that are accredited investors; or a private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940; or a corporation, partnership or
other entity in which all of the equity owners qualify as accredited investors under any one or more of the previous categories. 
  
 14.    Amount of Subscription: 
  
 (a)    Number of Shares (including 
  

 -6- 

 fractions thereof) of the Company): 
  
 (b)    Total Capital Contribution 
  
 ($_,000/Investor, in Shares): 
  
 15.    Type of Ownership for Shares: The
undersigned elects to hold title to the Shares subscribed for herein as follows (check one): 
  

			
	  ̈
	  	Individual Ownership
	 	  	(one signature required)
		
	  ̈
	  	Community Property
	 	  	 (one signature required if interest held in one name (i.e., managing spouse), two
 signatures required if Share held in both names)

		
	  ̈
	  	Tenants in Common
	 	  	(both parties must sign)
		
	  ̈
	  	Joint Tenants with Right of Survivorship (both parties must sign)
		
	  ̈
	  	Trust
	 	  	 (include name of trust, name of trustee, date trust was formed, and copy of the
 Trust Agreement or other authorization)

		
	  ̈
	  	Partnership
	 	  	 (include a copy of the Statement of Partnership or Partnership Agreement
 authorizing signature)

		
	  ̈
	  	Corporation
	 	  	(include certified corporate resolution authorizing signature)
		
	  ̈
	  	Qualified Retirement Plan (or IRA)

  
 (Please print here the
exact name (registration) Subscriber desires on account) // Soc. Sec. # or Tax ID. # 
  
 Share: SOCIAL SECURITY OR TAXPAYER LD. NUMBER MUST APPEAR ABOVE OR WITHHOLDING PROVISIONS WILL BE IMPOSED UPON THE COMPANY. 
  

	
	            (If a trust, date trust established and name of trustee:
	                                      
                                        
                  )

  
 (Note: Investors
should seek the advice of their attorney in deciding in which of the above forms they should take ownership of the Shares, since different forms of ownership can have varying gift tax, estate tax, income tax and other consequences, depending on the
state of 
  

 -7- 

 the investor’s domicile and his particular personal circumstances. For example, in community property states, if
community property assets are used to purchase Shares held as separate property, this might have adverse gift tax consequences.) 
  
 I (we) prefer to have correspondence sent to: 
  
  
  
 I (we) prefer to have distributions sent to: 
  
  
  
 U. S .
Citizen?        Yes         No 
  
 IN WITNESS WHEREOF, subject to acceptance by the Company, the undersigned has completed and executes this Subscription Agreement to evidence his
subscription for Shares of AXESSTEL, INC., a Nevada corporation, this      day of             , 2003. 
  

	
	  

	 Subscriber (Print Name)

	  

	 Signature

  
 A copy of this
subscription agreement will be returned to you when countersigned below. The Company has accepted this Subscription this      day of             , 2003.

  

			
	 AXESSTEL, INC.
 a Nevada corporation

		
	 By:
	 	  

	 	 	 John Chough, Chief Financial Officer

  

 -8- 

 Table of Purchasers in February 2003 Private Placement 
  
 In February 2003, the registrant issued and sold to the following accredited
investors an aggregate of 92,500 shares of its common stock at a purchase price of $2.00 per share: 
  

						
	 Investor

	  	Number of Shares Purchased

	  	Aggregate Purchase Price

	 Businet International Ltd.
	  	40,000	  	$	80,000
	 AbiTech Japan Corporation
	  	25,000	  	$	50,000
	 Yutaka Sato
	  	15,000	  	$	30,000
	 Robert Lear
	  	12,500	  	$	25,000
	 	  	
	  	
	

	 Total:
	  	92,500	  	$	185,000
	 	  	
	  	
	

  
 The shares were offered and sold
pursuant to the form of Subscription Agreement to which this table is attached. 
  

 -9-

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