Document:

EXHIBIT 4.1

                              CONSULTING AGREEMENT

           This CONSULTING AGREEMENT (the "Agreement") is entered into as of
this 15th day of March 2001 by and between ENTREPORT CORPORATION, a Florida
corporation ("Company"), and MICHAEL C.O. MORFIT, an individual ("Consultant").

                                  R E C I T A L
                                  -------------

           The Company wishes to engage Consultant, and Consultant agrees to be
engaged by the Company, subject to the terms and conditions set forth below.

                                A G R E E M E N T
                                -----------------

           NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth below, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is hereby agreed as
follows:

           1. DUTIES; CONSULTANT REPRESENTATION. During the term of this
Agreement, Consultant shall provide consultation on behalf of the Company in
connection with the (i) evaluation and structuring of potential merger and
acquisition opportunities for the Company; and (ii) other business strategies.
In performance of these duties, Consultant shall provide the Company with the
benefits of Consultant's best judgment and efforts. Nothing herein contained
shall be construed to limit or restrict Consultant in rendering services of a
similar nature to others, provided, however, that during the term of this
Agreement, Consultant covenants not to provide consulting services to, or to
engage in, directly or indirectly, any business competitive with that of the
Company without the consent of the Company. The duties to be performed by
Consultant pursuant to this Agreement may be performed at a location determined
by Consultant and at such times as may be agreed to by Consultant and the
Company.

         2. TERM AND TERMINATION.

                  (a) TERM. This Agreement shall commence on the Closing, as
that term is defined in the Purchase Agreement, and shall remain in effect for
twelve (12) months unless and until the Agreement is earlier terminated by the
Consultant or the Company. Either party may terminate this Agreement effective
on five (5) days prior written notice.

                  (b) OBLIGATIONS UPON EXPIRATION OR TERMINATION. Upon
expiration or termination of this Agreement, Consultant shall promptly return to
the Company all material owned by the Company. Expiration or termination of this
Agreement shall not relieve either party of its obligations regarding
Confidential Information under Section 4 below.

         3. CONSIDERATION. As consideration for Consultant and his affiliates
entering into this Agreement and Consultant's services hereunder, the Company
shall pay Consultant $10,000 per month payable in advance commencing on the 15th
of March 2001 and continuing thereafter on the 15th of each month for the
remainder of this Agreement. The Company, at its option, may issue its common
shares to Consultant in lieu of paying cash at the rate of $0.35 per share. Any
such shares shall be issued pursuant to demand registration rights pursuant to

                                       7
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which the Company will, at its expense, register the resale of the shares
pursuant to Section 5 of the Securities Act of 1933 ("Act"). Consultant
acknowledges that he would acquire the shares for investment for his own account
and not with the view to, or for resale in connection with, any distribution
thereof. Consultant understands that the shares would be characterized as
"restricted securities" under the Act and may be resold without registration
under the Act only in certain limited sets of circumstances. The certificates
evidencing the shares shall have an appropriate restrictive legend.

         4. DISCLOSURE OR USE OF CONFIDENTIAL INFORMATION.

                  (a) As used herein, the term "Confidential Information" means
any and all trade secrets or other confidential information of any kind, nature
or description concerning any matters affecting or relating to the business of
the Company that derives economic value, actual or potential, from not being
generally known to the public or to other persons who can obtain economic value
from its disclosure or use and which is the subject of efforts by the Company
that are reasonable under the circumstances to maintain its secrecy.
Confidential Information includes, but is not limited to, operations and
financial information concerning the Company's business; customer names,
addresses, buying habits, needs and the methods of fulfilling those needs;
supplier names, addresses and pricing policies; and the Company's pricing
policies. The term "Confidential Information" does not include information which
(i) is already in Consultant's possession, provided that such information is not
known by Consultant to be subject to another confidentiality agreement with or
other obligation of secrecy to the Company or another party, or (ii) becomes
generally available to the public other than as a result of a disclosure by
Consultant or his agents or advisors, or (iii) becomes available to Consultant
on a non-confidential basis from a source other than the Company or its
advisors, provided that such source is not known by Consultant to be bound by a
confidentiality agreement with or other obligation of secrecy to the Company or
another party.

                  (b) Consultant will keep confidential and will not directly or
indirectly divulge to anyone (except as required by applicable law or in
connection with the performance of his duties and responsibilities as a
consultant hereunder), to the extent practicable, or use or otherwise
appropriate for his own benefit, or on behalf of any other person, firm,
partnership or corporation by whom he might subsequently be hired as a
consultant or otherwise associated or affiliated with, any Confidential
Information.

                  (c) All documents, memoranda, reports, notebooks,
correspondence, files, lists and other records, and the like, specifications,
computer software and computer equipment, computer printouts, computer disks,
and all photocopies or other reproductions thereof, affecting or relating to the
business of the Company, which Consultant shall prepare, use, construct,
observe, possess or control (the "Company Materials"), shall be and remain the
sole property of the Company. Upon termination of this Agreement, Consultant
shall deliver promptly to the Company all such Company Materials.

                                       8
<PAGE>

         5. INDEPENDENT CONTRACTOR. The relationship between Consultant and the
Company is that of an independent contractor. The Company shall have no right or
authority to control or direct the manner in which Consultant renders his
services hereunder. In furtherance of this independent contractor relationship,
the only compensation owed by the Company hereunder is that contemplated by
Section 3, and the Company shall have no liability or obligation with respect to
any federal, state or local taxation or withholdings with respect to Consultant,
all of which liability and obligation shall be borne solely by Consultant and
Consultant shall indemnify the Company and hold it harmless against any such
liability.

         6. INSIDER TRADING. Consultant acknowledges that he may receive from
time to time material nonpublic information concerning the Company and other
parties involved with the Company. Consultant, on behalf of itself and its
affiliates, acknowledges that he is familiar with the Federal securities laws
and regulations outlawing insider trading and represents and covenants that it
shall act in strict accordance with such laws and regulations at all times.

         7. ENTIRE AGREEMENT AND WAIVER. This Agreement contains the entire
agreement between the parties hereto with respect to the consulting services to
be rendered to the Company by Consultant, and supersedes all prior and
contemporaneous agreements, arrangements, negotiations and understandings
between the parties relating to the subject matter hereof. No waiver of any
term, provision, or condition of this Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or shall
constitute, a waiver of any other provision hereof, whether or not similar, nor
shall such waiver constitute a continuing waiver, and no waiver shall be binding
unless executed in writing by the party making the waiver.

         8. ENFORCEMENT; SEVERABILITY. If in any proceeding, a court shall
refuse to enforce any provisions of this Agreement, whether because the
restrictions contained herein are more extensive than is necessary to protect
the business of the Company or for any other reason, it is expressly understood
and agreed between the parties hereto that this Agreement is deemed modified to
the extent necessary to permit this Agreement to be enforced in any such
proceedings. The validity and enforceability of the remaining provisions or
portions of this Agreement shall not be affected thereby and shall remain valid
and enforceable to the fullest extent permitted under applicable laws.

         9. AMENDMENTS. No supplement, modification or amendment of any term,
provision or condition of this Agreement shall be binding or enforceable unless
executed in writing by the parties hereto.

         10. APPLICABLE LAW. This Agreement and the performance hereunder and
all suits and special proceedings hereunder shall be construed in accordance
with the laws of the State of California.

                                       9
<PAGE>

           IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first above written.

                                   "Company"

                                   ENTREPORT CORPORATION,
                                   a Florida corporation

                                   By:  /S/  DAVID D'ARCANGELO
                                        ----------------------------------------
                                        David D'Arcangelo, Chairman of the Board

                                   "Consultant"

                                   /S/  MICHAEL C.O. MORFIT
                                   ---------------------------------------------
                                        Michael C.O. Morfit

                                       10MANUFACTURING LICENSE AND DISTRIBUTION AGREEMENT

THIS MANUFACTURING LICENSE AND DISTRIBUTION AGREEMENT ("Agreement") is made as
of the latter of the signature dates below (the "Effective Date"), by and
between Motorola, Inc., a corporation organized and existing under the laws of
the State of Delaware, U.S.A., by and through its Multiservice Networks Division
("MND"), with an office located at 20 Cabot Boulevard, Mansfield, MA 02048,
("Motorola"), and Telenetics Corporation with offices at 25111 Arctic Ocean,
Lake Forest, California 92630 ("Licensee").

                                    RECITALS
                                    --------

WHEREAS, Motorola has designed, developed, and manufactured certain legacy and
transmission products which are set forth on Appendix A hereto (each a "Product"
and together the "Products"), and distributes such Products under a Motorola
brand name directly and indirectly for sale to its customers around the world;
and

WHEREAS, Licensee currently distributes data communication products and desires
to acquire the rights to continue manufacturing and marketing the Products under
Licensee's own brand name; and

WHEREAS, Motorola agrees to license to Licensee those rights related to the
Licensed Material as are necessary to manufacture, market and sell the Products
under the terms and conditions of this Agreement and to provide Licensee with
related, materials, parts lists, schematic diagrams, electronics files, test
fixtures, case molds, components, spare boards, software, source code,
homologation files, published and electronic marketing documents including
datasheets, application notes, brochures, product manuals, web pages and other
similar materials, test and repair equipment, technical information, data,
designs, drawings and technical knowledge with respect to designing,
engineering, marketing, constructing, applying and fabricating and shipping said
Products, but specifically excluding 6500Plus software and source code
("Licensed Material"); and

WHEREAS, Licensee wishes to manufacture and distribute the Products utilizing
the Licensed Material and rights provided by Motorola hereunder; and

WHEREAS, Motorola and Licensee agree that the per-product payments provided in
Section 2 of this Agreement and the other consideration as otherwise stated
herein are in exchange for the Licensed Material and rights granted by Motorola
and for the referral of customers by Motorola, and that the per-product payment
formula is endorsed by both parties for mutual convenience in calculating a fair
compensation for these benefits.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained
in this Agreement, and other consideration, the sufficiency of which is hereby
mutually acknowledged, the parties hereto agree as follows:

<PAGE>

1.0      SCOPE
         -----

         This Agreement establishes the terms and conditions under which
         Motorola shall license to Licensee the right to manufacture and sell a
         Licensee-branded version of the Products and transfer to Licensee those
         inventories and other Licensed Materials such as are required to
         manufacture the Products. The Products are further described in
         Appendix A attached hereto. At any time during the term of the
         Agreement, the parties may identify additional Products to be licensed
         hereunder and governed by the terns and conditions set forth in this
         Agreement. In such event, the parties shall mutually agree upon
         specifications for such additional products, amend the Agreement in
         writing and add the additional Products to Appendix A.

2.0      PER-PRODUCT PAYMENTS, INVENTORY AND PRODUCTION EQUIPMENT
         --------------------------------------------------------

         Licensee shall pay to Motorola monthly royalty payments on the first
         (1st) day of the second month following the full or partial calendar
         quarter of product sales, in the amounts set forth on Appendix A hereto
         (Example: Royalties for January, February, & March would be due on May
         1).

         Upon prior notice to Licensee, Motorola shall have the right to audit
         or have an independent accounting firm audit such reports and payments.
         In the event of any underpayment, Licensee shall promptly issue to
         Motorola payment for the difference owed. In the event of an
         overpayment due to an accounting error, Motorola shall promptly refund
         to Licensee any excess royalties received. Motorola and Licensee agree
         that the per-product payments set forth on Appendix A and the other
         consideration as otherwise stated herein are in exchange for the
         Licensed Material and rights granted by Motorola and for the referral
         of customers by Motorola, and that the per-product payment formula is
         endorsed by both parties for mutual convenience in calculating a fair
         compensation for these benefits.

2.1      Inventory. Motorola agrees to sell to Licensee and Licensee agrees to
         purchase from Motorola certain inventories related to the Products in
         accordance with the terms set forth below. These inventories include
         components, and other raw materials, sub-assemblies, and finished
         goods.

2.1.1    Licensee agrees to issue a purchase order to Motorola for inventories,
         on-hand either at Motorola or at Motorola's Contract Manufacturer(s),
         used for the ongoing manufacturing of the Products. Licensee and
         Motorola will, at an agreed upon date (December), conduct a physical
         inventory count of the inventories. In addition, Licensee and Motorola
         will review all open purchase orders that the Contract Manufacturer(s)
         may have in place. A joint analysis of the physical inventory, open
         purchase orders and expected material consumption before December 29,
         2000, will yield an excess inventory that Licensee agrees to purchase.
         (The excess inventory is expected to be in the range of $5-$8 million.)
         Motorola sells such inventories to Licensee FOB Motorola's (or
         Motorola's Contract Manufacturer's) shipping dock.

                                      -2-

<PAGE>

         Licensee agrees on December 29, 2000 to make a down payment to Motorola
         for 25% of the above excess inventory, and simultaneously to issue a
         purchase order for the balance of the excess inventory. The balance of
         the payment for the excess inventory will be divided equally into three
         (3) payments, with the first payment due January 31, 2001, the second
         due February 28, 2001, and the third due on March 31, 2000. If Licensee
         makes payment in full for the excess inventory by December 29, 2000,
         then Motorola will grant a fifteen percent (15%) payment discount.
         Motorola agrees to transfer the excess inventory to Licensee before
         January 15, 2001. Motorola agrees that Licensee is not required to
         purchase excess inventory that would not be consumed in a twenty four
         (24) month period commencing January 1, 2001. Motorola reserves the
         right and hereby notifies Licensee that it will likely scrap this
         excess inventory if Licensee does not purchase this inventory before
         December 29, 2000. Motorola is willing to enter into negotiations for
         the purchase of excess inventory that would not be consumed in twenty
         four (24) months.

2.2.1    Motorola has received and disclosed to Licensee end-of-life notices
         regarding certain components of Motorola's 3460 and 326X modem Product
         families. Licensee agrees that Licensee shall be responsible for
         negotiating a last-buy agreement and order with the respective
         component manufacturers. Motorola as a party to these negotiations
         shall lend all reasonable assistance to Licensee in obtaining a
         last-buy agreement with the respective manufacturers. In the event that
         Licensee is unable to reach satisfactory arrangements with the
         component manufacturers, Licensee shall have no obligation to
         manufacture or supply the 3460 and 326X product lines as described in
         paragraph 4.3.

2.2.2    Production Equipment. Licensee agrees to issue to Motorola a purchase
         order dated December 29, 2000, for all production equipment, assembly
         and test equipment which is currently required for manufacturing,
         applying and fabricating, testing and shipping the Products as listed
         in Appendix D ("Production Equipment"), at the agreed upon fair market
         values listed in Appendix D. These items include, but are not limited
         to, production assembly and test equipment owned by Motorola which is
         currently located at ACT Manufacturing, all equipment in the 6500 Plus
         work cell currently located at Solectron Corporation, Case Molds
         currently located at various suppliers and any other similar
         production, test and repair equipment, fixtures, tooling, and any other
         Motorola materials which are currently used by either Motorola or its
         vendors and contractors to manufacture and supply the Products. Payment
         for the Production Equipment will be divided equally and made over a
         subsequent twelve (12) month period finishing no later than December
         31, 2001. (Example: Value of Production Equipment = $600,000; payments
         = $600,000/12 = $50,000 per month). If Licensee makes payment in full
         for the Production Equipment in less than 30 days from December 29,
         then Motorola will grant a 25% payment discount. Motorola sells such
         Production Equipment to Licensee FOB Motorola's (or Motorola's Contract
         Manufacturer's) shipping dock. All Production Equipment is sold by
         Motorola to Licensee "AS IS" and with no warranty.

2.2.3    Motorola will provide advice for the dismantling, packaging, shipment,
         site preparation, and installation of the Production Equipment.
         Licensee will be responsible for site preparation, unpacking and
         physical installation of the Production Equipment. Motorola will
         provide a Process Engineer for one (1) week on-site support to assist
         in the setup and correct functioning of the Production Equipment.

                                      -3-

<PAGE>

         Licensee agrees to obtain access to the equipment vendor
         support/service organizations for the various Production Equipment to
         assist in the installation. Motorola will provide a Test Engineer for
         one (1) week on-site support to assist in the setup and correct
         functioning of the Test portion of Production Equipment. Motorola will
         provide follow-on telephone support for a three (3) month period for
         both Production and Test Equipment.

2.3      Licensee may place its purchase orders for inventory and Production
         Equipment by and through a third party contract manufacturer. Licensee
         however, shall remain fully liable to Motorola for payments due for
         such purchases. Motorola may invoice and collect such amounts due and
         owing to Motorola directly from Licensee in the event contract
         manufacturer is overdue in its payments to Motorola.

3.0      MANUFACTURING LICENSEE RIGHTS AND MOTOROLA OBLIGATIONS
         ------------------------------------------------------

3.1      For the term of this Agreement only and solely for purposes of
         performing Licensee's obligations under this Agreement, Motorola
         authorizes Licensee and grants to Licensee a non-exclusive,
         non-transferable, non-sublicenseable right to use, reproduce, and
         create derivative works of the Licensed Material, in the manufacture of
         the Products. Licensee acknowledges and agrees that the foregoing
         materials and information are Motorola Confidential Information (as
         defined in Appendix B) and material to the interests, business and
         affairs of Motorola. Licensee further acknowledges and agrees that the
         disclosure or use thereof (other than as permitted under this
         Agreement) would cause Motorola irreparable harm. No use of such
         Motorola Confidential Information is permitted except as otherwise
         provided herein and no grant under any of Motorola's patents,
         copyrights, trademarks or other intellectual property rights is hereby
         given or intended, including any license (implied or otherwise).

3.2      Within three (3) months of the Effective Date of the transfer of the
         relevant Product, Motorola shall provide up to three (3) weeks of
         training to Licensee employees at a mutually agreed upon location. Such
         training shall include instructors and all course material and shall
         cover the design of the Products, technical issues and appropriate
         application of the Products. Motorola shall provide to Licensee
         reasonable technical assistance and support requested by Licensee for a
         period of twelve (12) months following the Effective Date of this
         Agreement. Motorola agrees to further provide technical support as
         follows: Motorola shall provide third line software support for the
         6500 Plus Product for a period of twenty four (24) months beginning on
         the date of transfer of such Product. Such support is intended to
         provide software fixes for the ONS operating system and Applications
         Ware packages. Licensee shall provide the initial and subsequent point
         of contact for the customer, as well as problem determination and
         qualification. The procedure for reporting such problems to Motorola is
         set forth in Appendix B hereto.

3.3      Upon execution of the Agreement and transfer of the Product, Motorola
         shall refer inquiries relating to the Products to Licensee and provide,
         where permitted, relevant data to manufacture, sale and support of the
         Products. Motorola MND will further refer inquires from other Divisions
         and Subsidiaries of Motorola which currently purchase the Products from
         Motorola MND.

                                      -4-

<PAGE>

3.4      Motorola agrees that it shall not reestablish manufacturing and
         marketing, directly or indirectly, of the Products, or Licensee's
         improvements in the Products as specified in Section 4.1, in
         competition with Licensee for a period of not less than five (5) years
         from the transfer of the Product, provided that Licensee is not in
         breach of the terms of this Agreement and Licensee is using its
         reasonable best efforts to manufacture, market, and sell the Products.
         Notwithstanding the above, in the event Motorola has an obligation(s)
         to furnish Motorola branded Products, which are being transferred under
         this Agreement, to customers for a specific period of time, Motorola
         may continue to sell such Motorola branded Products. Motorola's right
         to continue to sell such Motorola branded Products shall expire twelve
         (12) months from the Effective Date of this Agreement.

3.5      Licensee agrees to sell Motorola branded Product back to Motorola for
         Motorola resale to its customers as cited in 3.4 above. Licensee shall
         sell such Products at a price equal to Contract Manufacturer's price to
         Licensee plus a mark-up of twelve and one-half percent (12.5%) and in
         no event shall Licensee sell such products to Motorola at prices and
         upon terms and conditions less favorable than those offered by Licensee
         to any other customer or reseller. In the event such price is not yet
         available, Licensee and Motorola shall agree upon a reasonable price.
         Motorola shall assume Product warranty obligations for these Products
         resold by Motorola to Motorola customers.

4.0      LICENSEE'S GRANTS AND OBLIGATIONS
         ---------------------------------

4.1      Improvements in the Licensed Materials created by or on behalf of
         Licensee shall be owned by Licensee subject to Motorola's rights in the
         original Licensed Materials. Licensee hereby grants to Motorola and its
         subsidiaries a perpetual, worldwide, non-exclusive, royalty-free
         license, with the right to sublicense, to use, reproduce, have made,
         modify, compile, sell and distribute any improvements to the Licensed
         Materials.

4.2      Upon execution of this Agreement, Licensee shall assume, perform and
         discharge the following Motorola obligations and commitments related
         directly to the Licensee-branded Products sold by Licensee:

                  (i) Ongoing technical support, in warranty service, out of
         warranty service, product maintenance and other similar obligations.

                  (ii) Specific obligations under support agreements, service
         and warranty agreements and other agreements as specifically disclosed
         and incorporated into the agreement between the parties.

4.3      Licensee will undertake to manufacture, market and sell the Products
         described. It is understood that Licensee may not be able to ensure
         constant availability of certain Products based on transition issues,
         parts availability, parts obsolescence or other unforeseen
         circumstances. Licensee therefore reserves the right at its sole
         discretion to discontinue certain Products transferred under the
         Agreement, but in no event shall Licensee discontinue any of the
         Products transferred under this Agreement within twelve (12) months of
         the Effective Date of the Agreement.

                                      -5-

<PAGE>

4.4      Motorola intends to purchase and resell from Licensee, Licensee-branded
         Products transferred under this Agreement for specific customer
         opportunities. Licensee agrees to sell such products to Motorola at
         prices and upon terms and conditions at least as favorable as those
         offered by Licensee to any other customer or reseller.

5.0      EXPORT/IMPORT
         -------------

         Licensee agrees to comply with all applicable export and import laws,
         regulations and orders. Licensee agrees that it will not resell,
         re-export or ship, directly or indirectly, any Products or technical
         data in any form without obtaining required export or re-export
         licenses from the countries involved.

6.0      LABELS & MARKINGS
         -----------------

         Licensee agrees to include on the Products all patent numbers, all
         registration or identification numbers and country of origin labels and
         markings as are required by the applicable laws of the country where
         the Products are intended to be sold to end-users.

7.0      SAFETY & TELECOMM APPROVALS
         ---------------------------

         It shall be the responsibility of Licensee, and at Licensee's sole
         expense, to obtain UL, CSA and Telecom approvals, as well as any other
         governmental approvals or licenses, for any products it manufactures
         using the Licensed Materials provided by Motorola. Motorola agrees to
         provide license files and to reasonably assist Licensee at Licensee's
         expense in transferring of approvals.

8.0      RESALE OF PRODUCTS
         ------------------

         Licensee shall have the non-exclusive right to resell the Motorola
         version of the Licensee-branded Products on a world-wide basis.

9.0      WARRANTY
         --------

9.1      All Licensed Material and other material and information provided to
         Licensee under this Agreement is licensed to Licensee "AS IS" to the
         full extent permitted by applicable law. Motorola expressly disclaims
         all warranties and conditions, express, implied, or statutory,
         including the implied warranties or conditions of merchantability,
         fitness for a particular purpose, satisfactory quality, and
         non-infringement, and their equivalents under the laws of any
         jurisdiction. LICENSEE FURTHER ACKNOWLEDGES THAT MOTOROLA HAS MADE NO
         REPRESENTATION WITH RESPECT TO THE LICENSED MATERIAL UPON WHICH IT IS
         RELYING; RATHER, LICENSEE IS LICENSING ALL SUCH MATERIAL SOLELY BASED
         ON ITS OWN ASSESSMENTS OF THE LICENSED MATERIAL.

                                      -6-

<PAGE>

9.2      Licensee shall be responsible for any and all warranty obligations for
         the Products sold by Licensee. Motorola shall have no liability or
         other obligation to Licensee's customers for the Products.

9.3      Motorola shall be responsible for any and all warranty obligations for
         the Products sold by Motorola prior to the execution of this Agreement
         and transfer of the Product. Licensee shall have no liability or other
         obligation to Motorola's customers for such Products.

10.0     CONFIDENTIAL INFORMATION
         ------------------------

         Licensee agrees that all Licensed Material and other Motorola
         Confidential Information shall be treated in accordance with the terms
         of the Non-Disclosure Agreement included in Appendix C.

11.0     INTELLECTUAL PROPERTY
         ---------------------

11.1     The parties acknowledge and agree that Motorola shall have exclusive
         ownership of the Licensed Materials. Apart from the limited right
         granted to Licensee by Motorola under this Agreement to use Licensed
         Materials, Licensee shall have no other rights in or to any of
         Motorola's Intellectual Property Rights.

11.2     Licensee agrees to take all necessary precautions to prevent Motorola's
         intellectual property rights from being disclosed or used for any
         purpose other than for the design and manufacture of Products by
         Licensee.

12.0     TRADEMARKS
         ----------

12.1     The Products manufactured under the terms and conditions of this
         Agreement will carry Licensee's trademark and proprietary marks or such
         other logo or other proprietary marks.

12.2     Licensee shall not do anything to infringe upon, harm, or contest the
         validity of trademarks or other proprietary marks of Motorola.

12.3     Licensee agrees that it shall not use the trademark "Motorola" or any
         other Motorola trademark or trade name as part of the name under which
         it conducts business. Licensee acknowledges that it will not adopt or
         use any of Motorola's logos, trademarks or trade names, in whole or in
         part, or any confusingly similar word or symbol, as part of Licensee's
         company name. Licensee specifically agrees not to use the product names
         (per Appendix E) used by Motorola for the Products. However, Licensee
         shall be permitted to use Motorola model numbers and product codes.

12.4     Permission to display the word "Motorola", or any other proprietary
         word or symbol owned by Motorola or its affiliates is only upon written
         consent of Motorola. It is expressly understood and Licensee
         acknowledges Motorola's exclusive ownership in the Motorola name and
         logotype as well as certain other trademarks and trade names, which
         Motorola uses in connection with the Products. Licensee acknowledges
         that it will not acquire any right, title or interest in the word
         "Motorola" (either alone or in association with other words, names or
         symbols) or any other Motorola trademark or trade name by virtue of
         this Agreement.

                                      -7-

<PAGE>

12.5     Motorola agrees that Licensee can use external material with Motorola
         marks, such as silk screened front doors and overlays, for not more
         than forty five (45) from the date of transfer of the Products.
         Internal marking, such as on Printed Wiring Boards, must be removed in
         ninety days (90) from the date of transfer of the products. Without
         exception all Products manufactured by Licensee must bear a serializing
         label that clearly shows that the Product is Manufactured by Licensee.
         In the event Licensee continues to own a supply of Motorola branded
         Product or parts beyond the timelines outlined above in this Section
         12.5, Motorola and Licensee shall negotiate a good-faith extension of
         such time periods.

13.0     INDEMNIFICATION
         ---------------

13.1     Licensee shall indemnify and hold harmless Motorola from and against
         all intellectual property infringement claims that are brought against
         Motorola with regard to Licensee branded Product, and Licensee shall
         pay all damages that are finally awarded against Motorola based upon
         such claims.

13.2     Licensee shall indemnify, defend and hold harmless Motorola, its
         agents, distributors, and/or customers, from and against all loss,
         claim, damage or liabilities with respect to the Licensee branded
         Products, including but not limited to losses that may result from any
         third party claims of bodily injury or property loss or damage caused
         by a defect in the Licensee branded Product's design, manufacture or
         handling by Licensee hereunder, or any representations made with
         respect to the Products' functionality.

13.3     Motorola shall indemnify and hold harmless Licensee from and against
         all intellectual property infringement claims that are brought against
         Licensee with regard to Motorola branded Product sold by Motorola prior
         to the Effective Date of this Agreement and transfer of the Product,
         and Motorola shall pay all damages that are finally awarded against
         Licensee based upon such claims.

13.4     Motorola shall indemnify, defend and hold harmless Licensee, its
         agents, distributors, and/or customers, from and against all loss,
         claim, damage or liabilities with respect to the Motorola branded
         Products, sold by Motorola prior to the Effective Date of this
         Agreement and transfer of the Product, including but not limited to
         losses that may result from any third party claims of bodily injury or
         property loss or damage caused by a defect in the Motorola branded
         Product's design, manufacture or handling by Motorola hereunder, or any
         representations made with respect to the Products' functionality.

14.0     LIMITATION OF LIABILITY
         -----------------------

         Except as stated in Section 13 of this Agreement, UNDER NO
         CIRCUMSTANCES AND UNDER NO LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE,
         SHALL MOTOROLA OR LICENSEE OR ANY OF THEIR RESPECTIVE DIRECTORS,
         OFFICERS, EMPLOYEES OR AFFILIATES BE LIABLE TO ONE ANOTHER FOR ANY
         DIRECT, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
         DAMAGES OF ANY CHARACTER INCLUDING, WITHOUT LIMITATION, DAMAGES FOR
         LOSS OF PROFIT OR GOODWILL, WORK STOPPAGE, OR ANY AND ALL OTHER
         COMMERCIAL DAMAGES OR LOSSES OCCASIONED BY THE USE OF MATERIAL LICENSED

                                      -8-

<PAGE>

         TO LICENSEE, WHETHER FORESEEABLE, ARISING OUT OF THE USE OR INABILITY
         TO USE THE LICENSED MATERIAL, REGARDLESS OF THE BASIS OF THE CLAIM AND
         EVEN IF MOTOROLA OR LICENSEE OR THEIR RESPECTIVE REPRESENTATIVES HAVE
         BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THIS LIMITATION OF
         LIABILITY SHALL NOT APPLY TO LIABILITY FOR DEATH OR PERSONAL INJURY TO
         THE EXTENT APPLICABLE LAW PROHIBITS SUCH A LIMITATION.

15.0     TERM AND TERMINATION
         --------------------

15.1     Term. The term of this Agreement shall commence on the Effective Date
         and shall continue for a period of ten (10) years unless sooner
         terminated in accordance with the terms of this Agreement.

15.2     Termination.

15.2.1   Breach. This Agreement may be terminated by either party for failure by
         the other party to cure a breach in any material term or condition of
         this Agreement. Such termination shall be effective thirty (30) days
         following written notice of the breach, unless the breach is cured
         within such notice period.

15.2.2   Financial Condition. This Agreement may be terminated by either party,
         effective immediately upon receipt of written notice from the other
         party, if:

                  (i) dissolution or liquidation proceedings are commenced
         against the other party;

                  (ii) any filing is made with the court or competent
         authorities by any person (including the officers, employees or
         creditors of the other party) for bankruptcy, corporate reorganization,
         composition or any other similar insolvency proceedings, or for asset
         preservation order for the other party;

                  (iii) there is a substantial change in ownership of the other
         party and the new entity is a direct competitor of the other party.

15.2.3   LICENSEE'S FAILURE TO MEET SPECIFIC MILESTONE OBLIGATIONS. Licensee
         recognizes and agrees that Licensee's failure to achieve the following
         specific milestone obligations is deemed to be a material breach of the
         Agreement and notwithstanding Section 15.2.1 Motorola reserves the
         right to terminate this Agreement effective five business days
         following such breach, unless the breach is cured within the five
         business day period.

                                      -9-

<PAGE>

                  (i) Licensee obtaining, within two weeks of the Effective Date
         of this Agreement, at least two million dollars ($2 million) of new
         long term debt or equity financing to satisfy existing obligations and
         obligations created under this Agreement.

                  (ii) Licensee paying Motorola by wire transfer as of the date
         Licensee obtains its financing as described in 15.2.3 (i), all amounts
         due and owing to Motorola for existing obligations beyond this
         Agreement. The balance of such amount owed to Motorola from Licensee is
         approximately $323,618.40 as of October 20, 2000 and shall remain due
         and payable even under the termination of this Agreement.

                  (iii) Licensee obtaining, and providing evidence to Motorola
         within two weeks of the Effective Date of this Agreement, that it has
         obtained, a commitment from a recognized and viable financial
         institution(s) to provide to Licensee sufficient capital to meet its
         payment obligations to Motorola under this Agreement and to
         successfully meet its, or its assignee's, performance obligations under
         this Agreement.

15.2.4   OBLIGATIONS OF THE PARTIES IN THE EVENT OF TERMINATION.
         ------------------------------------------------------

                  (i) Upon expiration of this Agreement, or in the event either
         party provides notice of termination of this Agreement as provided
         hereunder, Licensee shall return to Motorola all Licensed Material and
         other Motorola Confidential Information.

                  (ii) Any obligations and responsibilities, which by their
         nature extend beyond the expiration or termination of this Agreement,
         shall survive and remain in effect, including without limitation,
         outstanding payment obligations, warranties, indemnities,
         confidentiality, limitation of liability, governing law, jurisdiction
         and dispute resolution.

16.0     COMPLIANCE WITH LAWS
         --------------------

16.1     Licensee warrants that it will comply with all applicable laws, orders,
         rules and regulations in performing its obligations hereunder and
         Licensee shall indemnify Motorola against any liability on account of
         any non-compliance with the foregoing.

16.2     Licensee warrants that all Products manufactured by Licensee hereunder
         will have been produced in compliance with all applicable laws, orders,
         rules and regulations. Licensee shall indemnify Motorola against any
         liability on account of any non-compliance with the foregoing.

16.3     Licensee shall effect or secure and maintain at its own cost all
         necessary governmental permits, licenses, approvals and registrations
         required in connection with Licensee's performance of its obligations
         hereunder.

17.0     FORCE MAJEURE
         -------------

         Neither party shall be in breach of its obligation hereunder to the
         extent that its performance is delayed or prevented by causes beyond
         its control, including, without limitation, acts of God, acts of third
         parties, civil disorders, acts of any civil or military authority,
         judicial action, and strikes or other labor disputes.

                                      -10-

<PAGE>

18.0     CONTRACTUAL RELATIONSHIP
         ------------------------

         It is understood and agreed that Motorola and Licensee are, and at all
         times during the term of this Agreement shall remain, independent
         contractors. At no time shall either party represent to any third party
         that it is the agent of the other with respect to the subject matter of
         this Agreement. Motorola and Licensee further covenant that no
         authorization shall be given to any employee of either party to act on
         behalf of the other. In no event shall either party at any time have
         authority to make any contracts, commitments or undertake any
         obligations on behalf of the other.

19.0     PUBLICITY
         ---------

         Neither party shall disclose, advertise, or publish the existence or
         the terms or conditions of this Agreement, financial or otherwise,
         without the prior written consent of the other party.

20.0     NOTICES
         -------

20.1     All notices, consents and other communications under this Agreement
         shall be in writing and shall be deemed to have been duly given (a)
         when delivered by hand; (b) when sent by telecopier (with receipt
         confirmed), provided that a copy is promptly thereafter mailed by first
         class postage prepaid registered or certified mail, return receipt
         requested; (c) when received by the addressee, if sent by air courier
         (receipt requested) or by such other means as the parties may agree
         from time to time; or (d) twenty (20) business days after being mailed,
         by first class postage prepaid registered or certified mail, return
         receipt requested; in each case to the appropriate addressee and
         telecopier numbers set forth below (or to such other addresses and
         telecopier numbers as a party may designate as to itself by notice to
         the other party):

                If to Motorola:    MOTOROLA, INC.
                                   Multiservice Networking Division
                                   20 Cabot Boulevard
                                   Mansfield, MA, 02048
                                   Attn: CONTRACTS DEPARTMENT, Mail Stop M2-370
                                   Tel number: (508) 261-4000
                                   Fax number: (508) 339-6927

                If to Licensee:    TELENETICS CORPORATION
                                   25111 Arctic Ocean
                                   Lake Forest, CA 92630
                                   Attn: Chief Operating Officer
                                   Tel number: (949) 455-4000
                                   Fax number: (949) 455- 4010

                                      -11-

<PAGE>

21.0     GOVERNING LAW, JURISDICTION, AND DISPUTE RESOLUTION
         ---------------------------------------------------

21.1     Other than with respect to Motorola's intellectual property rights,
         Motorola and Licensee will attempt to settle any controversy or claim
         arising between Motorola and Licensee through good faith negotiation or
         mediation. Any dispute which cannot be resolved through negotiation or
         mediation will be submitted to the courts for resolution.

21.2     The laws and the courts of the Commonwealth of Massachusetts U.S.A. are
         the exclusive laws and forum for resolving disputes under this
         Agreement. The parties expressly exclude the application of the United
         Nations Convention on the International Sale of Goods from the terms
         and conditions of this Agreement.

21.3     Licensee further acknowledges and agrees that any breach by it of the
         confidentiality and intellectual property clauses in this Agreement or
         a breach by it of the Non-Disclosure Agreement will cause Motorola
         irreparable harm. Accordingly, Licensee agrees that Motorola shall be
         entitled to ex parte injunctive relief to prevent any threatened or
         continued breach of any such clause and to specifically enforce such
         clause, in addition to any other remedy which Motorola may be entitled
         to at law or in equity. Licensee hereby waives the claim or defense in
         any such action or proceeding against it that Motorola has an adequate
         remedy at law or that a bond is necessary.

22.0     ASSIGNMENT
         ----------

         Licensee may not assign this Agreement or delegate its performance
         under it without prior written consent of Motorola, such consent not to
         be unreasonably withheld. Motorola and Licensee agree that it is not
         unreasonable for Motorola to withhold consent of Licensee's requested
         assignment if Licensee is attempting to assign this Agreement or
         delegate its performance to (i) any direct competitor of Motorola or
         (ii) any entity which is unable to perform Licensee's obligations under
         this Agreement to Motorola's reasonable satisfaction. Licensee agrees
         that Motorola may assign this Agreement and any of its rights hereunder
         to a subsidiary of Motorola, Inc.

23.0     SECTION HEADINGS
         ----------------

         The clause headings contained in this Agreement are for reference
         purposes only and shall not affect in any way the meaning or
         interpretation of this Agreement.

24.0     SEVERABILITY
         ------------

         In case any provision of this Agreement shall be held invalid, illegal
         or unenforceable, the validity, legality and enforceability of the
         remaining provisions of this Agreement will not in any way be affected
         or impaired thereby and all provisions herein are declared to be
         separate and distinct covenants. The parties hereby agree that if any
         provision is determined by any court to be invalid or unenforceable by
         reason of such provision extending for too great a period of time or
         over too broad a scope, then such provision shall be interpreted to
         extend over the maximum period of time and the maximum scope which such
         court at that time or which any other court at any subsequent time
         determines to be valid and enforceable.

                                      -12-

<PAGE>

25.0     WAIVER AND AMENDMENTS
         ---------------------

         All amendments and other modifications hereof shall be in writing and
         signed by each of the parties hereto. The parties hereto may by written
         instrument waive compliance by the other party with, or modify any of,
         the covenants or agreements made to it by the other party contained in
         this Agreement. The delay or failure on the part of any party hereto to
         insist, in any one instance or more, upon strict performance of any of
         the terms or conditions of this Agreement, or to exercise any right or
         privilege herein conferred shall not be construed as a waiver of any
         such terms, conditions, rights or privileges but the same shall
         continue and remain in full force and effect. All rights and remedies
         shall be cumulative.

26.0     ENTIRE AGREEMENT
         ----------------

         This Agreement, including all Appendices attached hereto, contain the
         entire agreement between the parties hereto with respect to the subject
         matter hereof and supersede all prior agreements and undertakings
         between the parties relating to the subject matter hereof.

27.0     COUNTERPARTS
         ------------

         This Agreement may be executed in two counterparts, each of which shall
         be deemed to be an original, but all of which together shall constitute
         one and the same instrument.

28.0     ADDITIONAL UNDERTAKINGS
         -----------------------

         The parties agree to sign all such other documents and do all such
         other things as the other party may reasonably require to give effect
         to this Agreement, including but not limited to releasing its
         contractors and vendors to provide relevant data to the other party.

29.0     LIST OF APPENDICES
         ------------------

         Appendix A: Product Description and Licensed Material

         Appendix B: Problem Reporting Procedures

         Appendix C: Nondisclosure Agreement between Licensee and Motorola

         Appendix D: Manufacturing Equipment

         Appendix E: Motorola Trademarks and Tradenames

                            SIGNATURE PAGE TO FOLLOW

                                      -13-

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives on the dates written under their
signatures below intending for this Agreement to become effective as of the
Effective Date.

MOTOROLA, INC., by and through its          TELENETICS CORPORATION
Multiservice Networks Division

"Motorola"                                  "Licensee"

By:      /S/ RICK LANE                      By:      /S/ JOHN D. MCLEAN
   -----------------------------------         ---------------------------------

Name:    RICK LANE                          Name:    JOHN D. MCLEAN
     ---------------------------------           -------------------------------

Title:   VICE PRESIDENT AND G.M., MND       Title:   CHIEF OPERATING OFFICER
      --------------------------------            ------------------------------

Date:    10/15/2000                         Date:    10/24/2000
     ---------------------------------           -------------------------------

                                      -14-

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