Document:

BILL OF SALE, ASSIGNMENT AND GENERAL CONVEYANCE
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         THIS BILL OF SALE, ASSIGNMENT AND GENERAL CONVEYANCE ("Bill of Sale")
dated as of April 28, 2000, is made by RACON, INC., a Washington corporation
("Seller"), to the benefit of TELENETICS CORPORATION, a California corporation
("Buyer").

         WHEREAS, pursuant to the terms of that certain Asset Purchase Agreement
dated as of April 21, 2000 by and between Buyer and Seller (the "Purchase
Agreement"), Seller has agreed to transfer to Buyer substantially all of the
assets used in the operation of its Micropass Product Line and related assets
associated with the business as more specifically described in the Purchase
Agreement (the "Assets"). Capitalized terms not otherwise defined herein shall
have the respective meanings attributed them in the Purchase Agreement.

         NOW THEREFORE, Seller, for and in consideration of the payment of the
Purchase Price set forth in Article 1, Section 1.02 of the Purchase Agreement,
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, does hereby sell, convey, transfer, assign and deliver
to Buyer, its successors and assigns, the Assets, as more particularly described
in Article 1, Section 1.01 of the Purchase Agreement, free and clear of any and
all mortgages, liens, pledges, charges, security interests, claims, encumbrances
or other third party interests of any nature whatsoever, except as otherwise
provided in the Purchase Agreement.

         TO HAVE AND TO HOLD the Assets unto Buyer, its successors and assigns,
to and for its own use and benefit forever.

         Seller, at any time at or after the date hereof, will execute,
acknowledge and deliver any further deeds, assignments, conveyances and other
assurances, documents, and instruments of transfer reasonably requested by Buyer
and will take any other action consistent with the terms of the Purchase
Agreement and this Bill of Sale that may reasonably be requested by Buyer for
the purpose of assigning, transferring, granting, conveying and confirming to
Buyer, or reducing to possession, any or all of the Assets.

         This Bill of Sale is subject to, and shall be construed in accordance
with, the Purchase Agreement, and in the event of a conflict between the
provisions of this Bill of Sale and the provisions of the Purchase Agreement
(insofar as such provisions relate to the rights and obligations of Buyer, on
the one hand, and Seller, on the other hand), the provisions of the Purchase
Agreement shall prevail.

         This Bill of Sale shall be governed by and construed in accordance with
the laws of the State of California, excluding any choice of law rules which may
direct the application of the law of another jurisdiction.

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         IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed
by its corporate officer hereunto duly authorized as of this 28th day of April,
2000.

                                         RACON, INC.,
                                         a Washington corporation

                                         By: /S/  Daniel A. Blattman
                                             -----------------------------------

                                             Its: Chairman
                                                 -------------------------------

                                       2AGREEMENT OF SETTLEMENT
                             -----------------------

         This Agreement of Settlement (the "Agreement") is entered into this 8th
day of March, 2001, by and among Coleman and Company Securities, Inc.
("Coleman") and Telenetics Corporation ("Telenetics").

                               W I T N E S S T H:
                               ------------------

         WHEREAS, Coleman has asserted certain claims against Telenetics which
are set forth in a Statement of Claim (hereinafter the "Claim") styled COLEMAN
AND COMPANY SECURITIES, INC. V. TELENETICS CORPORATION, Case No. 13 113 00904 00
filed before the American Arbitration Association; and

         WHEREAS, the parties have concluded that it is in their individual and
mutual best interests to resolve this matter amicably and end all controversy
between them;

         NOW, THEREFORE, in consideration of the covenants, payments, and
agreements set forth in this Agreement, Coleman and Telenetics intending to be
legally bound thereby, and hereby warranting that they each have the capacity
and authority to execute this Agreement, it is agreed by and among the
undersigned parties, that all of the claims asserted by Coleman are hereby
settled and compromised on the following terms and conditions, to wit:

         1. COMPROMISE. Telenetics shall issue Coleman, in the names and amounts
designated by Coleman on Exhibit A annexed hereto, two hundred thousand shares
(200,000) of Telenetics Corporation common stock (the "Settlement Shares") in
full settlement of the above matter, subject to adjustment as described in
Paragraph 2 herein below. The Settlement Shares represent payment in full,
subject to adjustment as described in Paragraph 2 herein below, and will be
included in a Registration Statement on Form S-3 to be filed by Telenetics with
the Securities and Exchange Commission ("SEC") no later than March 20, 2001.
Upon declaration of effectiveness of the Registration Statement, Telenetics has
covenanted and agreed that the Settlement Shares shall not be encumbered or
subject to any "lock-up" and that the Settlement Shares shall be "Free Trading."

<PAGE>

         2. ADJUSTMENT TO COMPENSATION. In the event that the closing "bid"
price for Telenetics common stock is less than $1.00 on the date that the
aforementioned Registration Statement is declared effective, Telenetics hereby
further covenants and agrees to issue Coleman a cash payment in funds, within
two (2) business days, in an amount representing the difference between the cash
value of the Settlement Shares (such figure to be calculated by multiplying the
closing "bid" price for Telenetics on the date that aforementioned Registration
Statement is declared effective and 200,000) and two hundred thousand dollars
($200,000) (E.G. If the closing "bid" price is $0.75, then Telenetics shall
issue Coleman a check in the amount of $50,000).

         3. RELEASES. The parties shall execute general mutual releases in favor
of each other in the form annexed hereto as Exhibit B.

         4. REGISTRATION STATEMENT ON FORM S-3. In consideration for executing
this Agreement of Settlement, Telenetics has covenanted and agreed to include
the Settlement Shares in a Registration Statement on Form S-3. Telenetics has
further covenanted and agreed that said Registration Statement shall be filed
with the SEC no later than March 20, 2001 and shall be declared effective by the
SEC no later than June 15, 2001.

         5. CONFESSION OF JUDGMENT. Simultaneously with the execution of this
Agreement, Telenetics shall execute a Confession of Judgment in favor of Coleman
in the amount of two hundred fifty thousand dollars ($250,000.00). The parties
expressly acknowledge and agree that Coleman shall be entitled to file the
Confession of Judgment and execute upon it if any of the following conditions
are not satisfied by Telenetics:

                  a. Failure of Telenetics to file the Registration Statement on
         Form S-3, which includes the Settlement Shares, with the SEC, by the
         end of business on March 20, 2001; or

                  b. Failure to achieve declaration of effectiveness by of the
         Registration Statement on Form S-3, which includes the Settlement
         Shares, by the SEC by the end of business on June 15, 2001.

                                      -2-

<PAGE>

                  c. Failure to pay any of the monies owed under Paragraph 2
         herein above.

         In the event that the foregoing conditions are not satisfied,
Telenetics hereby expressly waives any right to contest Coleman's right to file
the Confession of Judgment and execute same.

         6. ESCROW. The originally executed Confession of Judgment and the
Releases shall be held in escrow by Coleman's attorney, Michael H. Ference, Esq.
of Sichenzia, Ross & Friedman LLP pending Telenetics compliance with all of the
provisions of this Agreement. Upon compliance with this Agreement, Mr. Ference
will forward the originally executed copy of Coleman's Release in favor of
Telenetics and the originally executed Confession of Judgment to Telenetics or
its counsel. In the event that Telenetics violates either of the conditions set
forth in Paragraph 5, Coleman shall have the right to immediately file the
Confession of Judgment and execute on same without further notice. In that
instance, Coleman will not be required to return the Confession of Judgment to
Telenetics.

         7. CONFIDENTIALITY. The parties agree to keep the terms of this
Agreement and the matters raised in this arbitration as confidential. The
parties shall not disclose the terms of this Agreement or the matters raised in
this arbitration unless compelled by court order, subpoena, or request by a
self-regulatory organization of which Respondents are a member.

         8. BINDING AGREEMENT. The terms of this Agreement are binding upon and
inure to the benefit of each of the parties hereto, their successors, assigns,
dependents, officers, directors and all other related persons, affiliates or
associates.

         9. HEADINGS. The captions of the paragraphs and sections of this
Agreement are provided solely for convenience, and are not intended to, and in
fact, shall not affect the substance or meaning of this Agreement.

                                      -3-

<PAGE>

         10. REPRESENTATION. Each of the parties hereto represents that each has
read and fully understands each of the provisions as contained herein, and has
been afforded the opportunity to review same with their attorney of choice; and
further that each of the parties hereto represents that each and every one of
the provisions contained in this Agreement is fair and not unconscionable to
either party.

         IN WITNESS WHEREOF, the parties have read and executed this Agreement
as of the date and year first above written.

TELENETICS CORPORATION                             COLEMAN AND COMPANY
                                                   SECURITIES, INC.

Name: /S/ George Rombach, Esq.                     Name: /S/ Robert Shapiro
     -------------------------                          ------------------------
        George Rombach, Esq.                               Robert Shapiro
Title:  Chief Accounting and Legal Officer         Title:  President

                                      -4-

<PAGE>

                                    EXHIBIT A

NAME                                                     NUMBER OF SHARES
----                                                     ----------------

Coleman and Company Securities, Inc.                          150,000

Lynne Pellegrino                                              40,000

Angela Metelitsa                                              10,000

                                      -5-

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