Document:

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                                                                   EXHIBIT 10.56

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (the "Agreement") is entered into as of this
25th day of June, 2001, by and between Telenetics Corporation, a California
corporation ("Debtor"), and Rutan & Tucker, LLP, a California limited liability
partnership ("Secured Party").

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

         A. Debtor is indebted to Secured Party in the principal sum of
$474,852.32, pursuant to that certain 6% Convertible Subordinated Secured
Promissory Note Due 2003 (the "Secured Note") of even date herewith.

         B. This Security Agreement is intended by the parties hereto to create
a security interest in the collateral described herein in favor of Secured Party
to secure all of the obligations of Debtor under the Secured Note.

         C. The parties hereto understand and agree that the security interest
created by this Agreement is junior in status, at least with respect to the
assets of Debtor which secure Debtor's payment obligations in accordance with
(i) the security interest created by that certain Loan and Security Agreement by
and among Debtor and Celtic Capital Corporation, dated as of April 2, 1999
(including any replacements thereof), (ii) the security interest created by that
certain Amendment to Security Agreement by and between Debtor and Shala
Shashani, doing business as SMC Group, a sole proprietorship, dated as of March
31, 1998, which amended and replaced that certain Security Agreement by and
between Debtor and Shashani, dated February 7, 1992, and (iii) the security
interest created by that certain Security Agreement by and between Debtor and
SMC Communications Group, Inc., dated as of December 31, 1997 (collectively, the
"Senior Security Agreements").

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

         IN CONSIDERATION of the foregoing recitals, the mutual covenants herein
contained and for other valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by each of the parties hereto, the parties hereto
do hereby agree as follows:

         1. SECURITY INTEREST. As security for the performance of the
obligations and indebtedness represented by the Secured Note, including
renewals, extensions, amendments and replacements thereto, Debtor hereby grants
to Secured Party a security interest in the following collateral and in other
collateral of the same class, whether now owned or hereinafter acquired by
Debtor (the "Collateral"):

         All tangible and intangible assets of Debtor, including, but not
         limited to, all existing and future inventory, accounts receivable,
         furniture, fixtures, equipment, patents, patent applications,
         trademarks, copyrights, trade secrets, and any other property interest
         or proprietary right, as well as any document, instrument or drawings
         embodying the same, and all additions and accessions thereto,
         substitutions and replacements therefor, and all proceeds thereof.

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         Debtor and Secured Party agree that the security interest created
hereby has attached to the Collateral to the extent permitted by law, and that
it will attach to additional portions of the Collateral hereinafter acquired by
Debtor, as the requirements for attachment are otherwise met. The parties hereto
agree that all of the Collateral is personal property.

         2. POSSESSION AND LOCATION OF COLLATERAL. Unless and until any default
occurs hereunder as set forth in Section 7 hereof, Debtor shall have possession
of the Collateral for its use and enjoyment in any lawful manner not
inconsistent with this Agreement or the Secured Note. The Collateral will be
kept at Debtor's place of business with respect to such assets and will not be
moved therefrom without the prior written consent of Secured Party, except that
Debtor may make sales of inventory items in the ordinary course of business.
Debtor shall not replace or make material alterations in the Collateral without
the prior written consent of Secured Party. The consent of Secured Party
required hereby shall not be unreasonably withheld.

         3. FINANCING STATEMENTS. Debtor shall join with Secured Party in
executing one or more financing statements or other documents pursuant to the
provisions of the California Uniform Commercial Code, or any other applicable
law, relating to the perfection of the Secured Party's security interest in the
Collateral, in form reasonably satisfactory to Secured Party.

         4. TRANSFER, TAXES, LIENS AND ENCUMBRANCES. Debtor has title to the
Collateral free and clear of any lien, security interest or encumbrance, except
for the security interests created by this Agreement and the Senior Security
Agreements. Title to the Collateral will remain in and continue to be vested in
Debtor. Debtor will defend the Collateral and will not sell, offer to sell or
otherwise transfer the Collateral, any portion thereof, or any interest therein,
without the prior written consent of Secured Party, except that Debtor may make
sales of inventory items in the ordinary course of business. The consent of
Secured Party required hereby shall not be unreasonably withheld. Debtor shall
pay all taxes, assessments and other charges made against the Collateral. In
addition, unless Secured Party shall consent otherwise in writing, Debtor will
keep the Collateral free from any lien, security interest or encumbrance, except
for the security interests created by this Agreement and the Senior Security
Agreements.

         5. RISK OF LOSS AND INSPECTION OF COLLATERAL. Debtor shall have all
risk of loss of the Collateral, and Debtor will keep the Collateral in good
order and repair. Secured Party shall have the right, at any reasonable time, to
enter upon the premises where the Collateral is located to examine and inspect
the Collateral in person or by agent. Any refusal to permit such entry shall be
a breach of this Agreement.

         6. INSURANCE. Debtor shall keep the Collateral insured, at its own
expense, in an amount not less than its full insurable value, against loss by
fire, theft, vandalism and malicious mischief, storm, earthquake and extended
coverage, and Debtor shall cause Secured Party to be named loss payee in such
insurance, and furnish to Secured Party written evidence thereof.

         7. EVENTS OF DEFAULT. The occurrence of any of the following events or
conditions shall constitute an Event of Default:

              (a) The failure of Debtor to perform any obligation or covenant
set forth herein or in the Secured Note.

                                      -2-
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              (b) The failure of Debtor to pay principal and interest under the
terms of the Secured Note.

              (c) Debtor ceases operations, is dissolved, terminates its
existence, does or fails to do anything that allows the obligations under the
Secured Note to become due before their stated maturity, or becomes insolvent,
appoints a receiver for its property, makes an assignment for the benefit of
creditors, commences any proceeding under any bankruptcy law, or is unable to
meet its debts as they mature.

              (d) The occurrence of any "Event of Default" as that term is
defined in the Secured Note.

         8. REMEDIES UPON DEFAULT. Upon the occurrence of any Event of Default
hereunder, and if, upon written notice of such default delivered to the Debtor,
the specified default is not cured within thirty (30) days of receipt of such
notice, Secured Party may, at its option, declare all amounts secured hereby
immediately due and payable and shall have the right to conduct a public or
private sale of the Collateral pursuant to and in accordance with the California
Commercial Code. Upon Debtor's default pursuant to this Section 8, the parties
hereto shall have all of the rights and remedies available to them under the
California Uniform Commercial Code.

         Secured Party may require Debtor to assemble the Collateral and make it
available to Secured Party at a place to be designated by Secured Party which is
reasonably convenient to both parties. All rights and remedies of Secured Party
shall be cumulative and may be exercised successively or concurrently and
without impairing Secured Party's interest in the Collateral.

         9. NOTICE. All written notices required or permitted pursuant to this
Agreement shall be sent by certified mail, return receipt requested, or
delivered by hand to the parties hereto at the following address, or at any such
other address which any party hereto may, by written notice, have designated
pursuant to this section:

         "Debtor":                  Telenetics Corporation
                                    25111 Arctic Ocean
                                    Lake Forest, California 92630
                                    Attention: President

         "Secured Party":           Rutan & Tucker, LLP
                                    611 Anton Boulevard, 14th Floor
                                    Costa Mesa, CA 92626
                                    Facsimile: (714) 546-9035
                                    Attention:  Larry A. Cerutti, Esq.

         10. APPLICABLE LAW. This Agreement is to be construed and interpreted
in accordance with the laws of the State of California.

         11. ASSIGNMENT AND WAIVER. Secured Party may assign its rights or
interest under this Agreement and, upon any such assignment, Debtor shall be
obligated to render performance to Secured Party's assignee. Debtor waives any
and all claims or defenses assertable against Secured Party and assignees
thereof, except defenses which cannot be waived under the California Uniform
Commercial Code.

                                      -3-
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         12. INUREMENT. This Agreement shall be binding upon, and shall inure to
the benefit of, the parties hereto, their successors and assigns, and may be
altered, amended or changed only by an instrument in writing signed by the
parties hereto.

         13. SEVERABILITY. In the event any provision of this Agreement shall be
determined to be invalid, illegal, or unenforceable under applicable law, such
provision shall, insofar as possible, be construed or applied in such manner as
will permit enforcement; otherwise this Agreement shall be construed as though
such provision had never been made a part hereof, and the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

         14. BINDING AUTHORITY. David Stone is the duly elected Chief Financial
Officer of Debtor and has the authority to bind the Debtor to the terms and
provisions of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year set forth above.

         DEBTOR:                  TELENETICS CORPORATION,
                                  a California corporation

                                  By:      /s/ DAVID STONE
                                      ------------------------------------------
                                           David Stone, Chief Financial Officer

         SECURED PARTY:           RUTAN & TUCKER, LLP

                                  By:      /s/ LARRY CERUTTI
                                      ------------------------------------------
                                           Larry A. Cerutti, Partner

                                      -4-<PAGE>

                                                                   EXHIBIT 10.57

                      AMENDMENT TO MANUFACTURING AGREEMENT

         This Amendment to Manufacturing Agreement is made and entered into as
of AUGUST 31, 2002, by and between Telenetics Corporation ("Buyer")
and Comtel Electronics, Inc. ("Seller") with respect to that Manufacturing
Agreement between Buyer and Seller, dated as of December 29, 2000.

         The parties entered into the Manufacturing Agreement as a part of a
strategic relationship to enable Buyer to perform its duties under the Motorola
Agreement (as defined in the Manufacturing Agreement) and now intend to modify
the strategic relationship by granting a security interest in certain assets (as
provided in a security agreement of even date), amend the Manufacturing
Agreement as provided herein, and issuing warrants to Seller to acquire Buyer's
common stock.

         NOW, THEREFORE, the parties amend the Manufacturing Agreement as
follows:

1. The following language shall be added to Section 3.5:

         To the extent inventory of parts, materials and supplies on hand at
Seller and specifically identified as exclusively for the benefit of Buyer or
exclusively for the production of inventory for Buyer exceeds 60 days of
inventory (based on the cost of the most recent 60 days of such parts, materials
and supplies), Buyer will pay a carrying charge of 1.0% per month on the amount
of such excess, measured by Seller's cost.

2. Section 3.6 is amended in its entirety to read as follows:

         MINIMUM VOLUME REQUIREMENTS. Buyer acknowledges that Seller will
procure Manufacturing Equipment, Initial Inventory, and other Component Parts,
equipment, inventory, materials and resources in anticipation of the initial and
ongoing Manufacture of Products under the terms of this Agreement. As
consideration for Seller's capital investments in preparation for its
performance of Seller's duties and obligations under this Agreement, Buyer
agrees that it will schedule monthly shipments and purchase a minimum of
$900,000 of Products per month (determined on a three (3) month rolling average)
from Seller (the "Minimum Volume Requirements") beginning the third (3rd)
calendar month after the commencement of the Manufacture of Products by Seller.
If Buyer fails to meet the Minimum Volume Requirements, Buyer shall pay Seller a
"Shortfall Charge". The Shortfall Charge for any month will be calculated by
subtracting one third (1/3rd) of the sum of all invoices billed to Buyer by
Seller for Products shipped during the applicable month and the two months
preceding the applicable month (each such rolling three (3) month period is
referred to as a "Measurement Period"), from $900,000, then multiplying that
figure by the Applicable Percentage from the following table:

         Last Month of Measurement Period                 Applicable Percentage
         --------------------------------                 ---------------------

             11/2002 through 1/2003                               5%
             2/2003 through 4/2003                                5%
             5/2003 through 7/2003                                10%
             8/2003 through 10/2003                               15%
             11/2003 through 1/2004                               20%
             2/2004 and thereafter                                25%

                                  Page 1 of 4
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For example, if in 2/2003, the sum of the total invoices for Products shipped is
$800,000.00, and the total for the first preceding month was $750,000.00 and the
second preceding month was $850,000.00, then Buyer shall pay to Seller a
Shortfall Charge of $5,000.00 for that Measurement Period (1/3rd of three month
total ($2,400,000/3 = $800,000) deducted from $900,000 = $100,000 x 5% =
$5,000). The Seller shall invoice Buyer and provide sufficient detail on how the
Shortfall Charge is calculated. Payment of any Shortfall Charge is due net sixty
(60) days after the invoice date.

Notwithstanding the provisions above, (i) no Shortfall Charge shall be due and
payable for any month in which on-time delivery (as defined below) falls below
90%; (ii) the amount on which the Shortfall Charge is calculated shall be
reduced (but not below zero) by the dollar amount of all units during the month
that are not delivered on time. For purposes of this Agreement, "on-time
delivery" shall be measured on a monthly basis and shall be calculated as the
number of units delivered on schedule during the month over the number of units
delivered or scheduled to be delivered during the same month.

3. Section 5.1 is amended in its entirety to read as follows:

         INVOICES AND PAYMENT. The Seller shall invoice Buyer upon shipment of
Products and at such other times as any amounts may come due under this
Agreement. Payment is due net sixty (60) days from the date of shipment and
invoice. Until December 31, 2002, the balance of payables owed to Seller by
Buyer that are unpaid for a period of ninety (90) days or more since the
original due date of any such payables shall be less than $400,000.00. >From and
after December 31, 2002, no payables shall be unpaid for a period of ninety (90)
days or more. (For purposes of this Section 5.1 only, the balance of the
payables owed by Buyer to Seller shall be determined on a net basis by deducting
the total amount due from Seller to Buyer and billings for return of obsolete or
unused inventory shall not be considered). Should Buyer fail to comply with any
of the foregoing payment provisions, the Seller may, at its sole option, (i)
cease shipments to the Buyer or other destination designated by Buyer; and/or
(ii) make partial or all future shipments on a C.O.D. basis until such
delinquency has been paid. Interest at the rate of 1.0% per month shall accrue
and be paid on all amounts that remain unpaid for more than sixty (60) days;
provided, however, that no interest shall accrue for any month in which on-time
delivery falls below 90% based on a two-month rolling average (assuming Buyer's
compliance with all lead time requirements). If a completed Base Product has not
been converted into a Final Product within 20 working days of completion of the
Base Product because Buyer has not provided the Final Product configuration, the
Seller will invoice the Buyer at the rate of 95% of the Final Product price
listed in Exhibit C (which shall be credited against any subsequent invoice for
the Final Product Configuration of those Base Products). It is the intent of
Seller that, subject to restrictions or limitations imposed by Seller's secured
lender, Buyer shall, during the Term of this Agreement, always have the right to
pay any invoice remaining unpaid for more than sixty (60) days by assigning to
Seller Buyer's current, collectible accounts receivable, which shall be applied
to the amounts due to Seller upon collection by Seller. Further, Buyer will, at
Seller's request, execute a note or notes in favor of Seller in an aggregate
amount equal not more than two million, five hundred thousand dollars
($2,500,000.00) to be applied against the accounts receivable due from Buyer to
Seller. Such note to bear interest at the rate of nine percent (9%) per annum
and be paid over eighteen (18) months from its date.

4. Section 5.2 is amended in its entirety to read as follows:

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         BUYER INVOICES AND PAYMENT. The Buyer shall invoice Seller upon
shipment of Component Parts. Payment is due net sixty (60) days from the date of
shipment and invoice. Should Seller fail to make payment within sixty (60) days
after the invoice date, the Buyer may, at its sole option, (i) cease shipments
to the Seller, and/or (ii) make partial or all future shipments on a C.O.D.
basis until such delinquency has been paid; provided, however, that no payment
whatsoever shall be due from Seller to Buyer if any of Seller's invoices to
Buyer remain unpaid by Buyer for more than sixty (60) days. Interest at the rate
of 1.0% per month shall accrue and be paid on all late payments.

5. Section 8.1 is amended in its entirety to read as follows:

         TERM. The Term of this Agreement (the "TERM") shall commence on the
Effective Date and, unless terminated earlier pursuant to SECTION 8.2, shall
remain in effect for a fixed term of three (3) years (terminating December 29,
2003), and shall automatically renew thereafter for three (3) additional one (1)
year terms, unless Seller provides Buyer with written notice of termination not
later than one hundred and eighty (180) days prior to the expiration of the
then-current Term. Except however if, one hundred and eighty (180) days prior to
the expiration of the second additional one (1) year Term, Buyer has paid all of
Seller's valid invoices for Products shipped more than sixty (60) days prior
thereto, and all assigned accounts receivable have been paid or repurchased by
Buyer, Buyer has the right to terminate this Agreement as to third additional
one (1) year term by providing written notice of termination to Seller. Such
notice of termination by Buyer shall be conditioned upon Buyer continuing to pay
all of Seller's valid invoices for Products within sixty (60) days of shipment
for the remainer of the second additional one (1) term, and all assigned
accounts receivable continuing to be paid or repurchased by Buyer during that
period. Those Sections of this Agreement that by their terms logically ought to
survive termination shall survive termination of this Agreement.

6. New Section 4.10 is added as follows:

         4.10 ACCOUNTING FOR MODIFICATIONS AND CONVERSIONS. Seller shall account
in a separate receivable subledger for any charges associated with modifications
or conversions of Base Products.

7. New Section 4.11 is added as follows:

         4.11 HANDLING OF PRODUCT MODIFICATIONS AND CONVERSIONS. Seller agrees
to respond to Buyer's request for quote for product modifications and
conversions within two (2) business days after such request (or after Seller has
received any bids pertaining to raw materials). Seller shall promptly notify
Buyer of the receipt of any raw material bids relating to any quote for product
modification or conversion. Once a valid Purchase Order has been placed with
Seller by Buyer for such modifications or conversions, Seller agrees to promptly
order any required raw materials and complete the agreed upon work and make the
modified or converted product(s) available to Buyer within ten (10) business
days following receipt of any required raw materials. Seller shall promptly
notify Buyer of the receipt of all raw material required for product
modification or conversion.

                                  Page 3 of 4
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8. New Section 4.12 is added as follows:

9.  4.12 BUSINESS AND PRICING REVIEW. The parties agree that, not later than one
(1) week prior to the end of each calendar quarter, Buyer and Seller will review
the status of the strategic relationship and pricing, and Seller and Buyer will
agree upon pricing for the succeeding calendar quarter. The pricing schedule
covering all shipments of Seller to Buyer for the third calendar quarter of 2002
is attached hereto as Exhibit "C-1" and incorporated herein by this reference.
Pricing schedules covering all shipments for subsequent quarters shall be
executed by Buyer and Seller and attached hereto as Exhibit "C" with a number
designation next in order. Each pricing schedule shall supercede the previous
schedule, and is incorporated by this reference. Each pricing schedule shall
remain in full force and effect until it has been superceded. Any pricing
changes shall be subject to the provisions of Sections 7.1 and 7.2 of the
Manufacturing Agreement. Seller agrees that increases in pricing will be based
on competitive market factors and, in the absence of extraordinary
circumstances, will not contain material costs less than 65% of the selling
price. For this purpose pricing will be deemed based on competitive market
factors if it is within 20% of a comparable competitive quote for Buyer's entire
line of products bought from Seller.

10. New Section 5.5 is added as follows:

         5.5 SETOFF AND INVENTORY REPURCHASE. If required by Seller's lender,
Buyer shall execute a setoff agreement and inventory repurchase agreement for
the benefit of Seller's lender only in substantially the forms attached hereto
as Exhibits "H" and "I", respectively.

11. Except as modified herein, all terms of the Manufacturing Agreement shall
continue in full force and effect.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date set forth above.

COMTEL ELECTRONICS, INC.                 TELENETICS CORPORATION

By:  /s/ Gregory Morris                  By:  /s/ David Stone
     ---------------------------              ---------------------------

                                  Page 4 of 4

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