Document:

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Exhibit 10.10

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

                             TELENETICS CORPORATION

         12% Subordinated Unsecured Promissory Note due January 15, 2004

$550,000                                                 Lake Forest, California
                                                                   July 15, 2002

         FOR VALUE RECEIVED, the undersigned, Telenetics Corporation, a
California corporation (the "Company"), hereby promises to pay to Dolphin
Offshore Partners, L.P., or registered assigns, the principal sum of Five
Hundred Fifty Thousand Dollars ($550,000), with interest on the unpaid principal
amount hereof computed on the basis of the actual number of days elapsed, at the
interest rate and on the payment dates described below.

         1. PAYMENTS. Principal and accrued interest on this note ("Note") shall
be payable in eighteen (18) monthly installments commencing on August 15, 2002
and continuing on the fifteenth day of each month thereafter, with each of the
first seventeen (17) monthly payments to represent at least Twenty-Five Thousand
Dollars ($25,000) in principal amount plus accrued interest for the previous
month ("Minimum Monthly Installment"), and the final payment to be in the amount
of the unpaid principal balance plus all accrued and unpaid interest and any
other amounts payable under this Note ("Final Payment"). All payments of
principal of and interest on this Note shall be made by wire transfer to an
account designated in writing by the holder at least three (3) business days
prior to a payment due date and shall be in such coin or currency of the United
States of America as at the time of payment shall be legal tender for payment of
public and private debts. Payments shall be applied first against accrued
interest and then against outstanding principal and any other amounts payable
under this Note. Interest on the unpaid principal portion of this Note will
accrue at a rate of Twelve Percent (12%) per annum and is payable monthly in
arrears; PROVIDED, HOWEVER, that if a Minimum Monthly Installment for any month
("Month") is not paid by its due date, then interest on the unpaid principal
portion of this Note will accrue at a rate of Eighteen Percent (18%) per annum
until such Minimum Monthly Installment is paid. If at any time three such
Minimum Monthly Installments shall be unpaid, then this Note shall immediately
become due.

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

                  "INSOLVENCY OR LIQUIDATION PROCEEDING" shall mean (i) any
insolvency or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding, relative to the Company or
to its creditors, as such, or to its assets, or (ii) any liquidation,
dissolution, reorganization or winding up of the Company, whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy, or (iii) any
assignment for the benefit of creditors or any other marshaling of assets and
liabilities of the Company.

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

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

                  "SENIOR INDEBTEDNESS" shall mean the principal of and unpaid
interest on all indebtedness of the Company regardless of whether incurred on,
before or after the date of this Note (i) for money borrowed from any bank,
savings and loan or other financial institution; (ii) for money borrowed from
any institutional investor which lends money to the Company in a transaction
involving the Company's investment bankers, (iii) for money borrowed in a
transaction in which the debt is secured by the Company's assets and (iv) in
connection with any renewals or extensions of any indebtedness described in (i)
through (iii) above; PROVIDED, HOWEVER, that the term shall not include (a) any
lease financing arrangement involving the Company and (b) indebtedness which by
the terms of the instrument creating or evidencing it is subordinated to or on a
parity with this Note.

         3. SUBORDINATION.

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

                  3.2 PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.

                           (a) In the event of any Insolvency or Liquidation
Proceeding, all Senior Indebtedness shall first be paid in full before the
holder of this Note is entitled to receive any direct or indirect payment or
distribution of any cash, property or securities (excluding Reorganization
Securities) on account of the principal of or interest on this Note.

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                           (b) The holders of Senior Indebtedness (or their
respective Representatives) shall be entitled to receive directly, for
application to the payment thereof (to the extent necessary to pay all such
Senior Indebtedness in full after giving effect to any substantially concurrent
payment or distribution to the holders of such Senior Indebtedness), any payment
or distribution of any kind or character, whether in cash, property or
securities (excluding Reorganization Securities but including any payment or
distribution, except Reorganization Securities, which may be payable or
deliverable by reason of the payment of any other indebtedness of the Company
being subordinated to the payment of this Note) which may be payable or
deliverable in respect of this Note in any such Insolvency or Liquidation
Proceeding.

                           (c) In the event that, notwithstanding the foregoing
provisions of this Section 3.2, the holder of this Note shall have received any
payment from or distribution of assets of the Company in an Insolvency or
Liquidation Proceeding or the estate created by the commencement of any such
Insolvency or Liquidation Proceeding, of any kind or character in respect of
this Note whether in cash, property or securities (excluding Reorganization
Securities but including any payment or distribution, except Reorganization
Securities, which may be payable or deliverable by reason of the payment of any
other indebtedness of the Company being subordinated to the payment of this
Note) before all Senior Indebtedness is paid in full, then and in such event
such payment or distribution shall be received and held in trust for and shall
be paid over to the holders of the Senior Indebtedness remaining unpaid (or
their respective Representatives), to the extent necessary to pay all such
Senior Indebtedness in full after giving effect to any substantially concurrent
payment or distribution to the holders of such Senior Indebtedness, for
application to the payment in full of such Senior Indebtedness.

         3.3 DEFAULT ON SENIOR INDEBTEDNESS.

                  (a) If there exists a default in the payment when due (whether
at maturity or upon acceleration or mandatory repayment, or on any principal
installment payment date or interest payment date, or otherwise) of any Senior
Indebtedness (a "Payment Default") and such default shall not have been cured or
waived in writing by or on behalf of the requisite percentage of the holders of
such Senior Indebtedness (or their Representative, if any), then any payment on
account of principal of or interest on this Note which the holder of this Note
would then be entitled to receive, but for the provisions of this paragraph
3.3(a), shall instead be paid over to the holders of such Senior Indebtedness
(or their Representative, if any) until all amounts of Senior Indebtedness then
due and payable have been paid in full, prior to any direct or indirect payment
by or on behalf of the Company to the holder of any principal of or interest on
this Note.

                  (b) The Company may not, directly or indirectly, make, and the
holder of this Note may not ask, demand, take or receive from or on behalf of
the Company, any payment on account of the principal of or interest on this Note
during the period (a "Deferral Period") from the date the Company and/or the
holder of this Note receive from a holder of Senior Indebtedness a notice (a
"Deferral Notice") of:

                           (i) the existence of a Payment Default; or

                           (ii) the existence of any event of default (other
than a Payment Default) under any agreement or instrument pursuant to which any
Senior Indebtedness is issued, in each instance as now in effect or as hereafter
from time to time modified or amended, without the necessity of any consent by
or notice to the holder of this Note (a "Specified Covenant Default");

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until the earlier of (i) the date such Payment Default or Specified Covenant
Default is cured, waived in writing or otherwise ceases to exist and (ii) the
180th day after receipt by the Company and/or by the holder of this Note of such
Deferral Notice; PROVIDED, HOWEVER, that (x) only one Deferral Notice relating
to the same Payment Default or Specified Covenant Default may be given, (y) no
subsequent Deferral Notice may be given with respect to any Payment Default or
Specified Covenant Default existing at the time an effective Deferral Notice is
given and (z) if any such Deferral Notice has been given, no subsequent Deferral
Notice with respect to any number of different Payment Defaults or Specified
Covenant Defaults shall be effective until the later of (1) the date such
subsequent Deferral Notice is received by the Company and the holder of this
Note and (2) the 365th day after receipt of the then most recent prior effective
Deferral Notice. So long as any Senior Indebtedness is outstanding, the holder
of this Note shall give the holders of the Senior Indebtedness five (5) business
days' prior written notice of any proposed demand for payment or institution of
proceedings with respect to this Note (which notice may be given during a
Deferral Period provided that the proposed demand for payment is not to be made
or the proposed proceedings are not to be instituted until the expiration of
such Deferral Period).

                  (c) Upon termination of any Deferral Period, the Company shall
resume payments on account of the principal of and interest on this Note subject
to the obligation of the Company and the holder of this Note to pay over to the
holders of Senior Indebtedness amounts otherwise payable on account of the
principal of and interest on this Note pursuant to the provisions of, and in the
circumstances specified in, this Section 3.

                  (d) During the first one hundred twenty (120) days of any
Deferral Period, payment on account of this Note may not be accelerated unless a
voluntary Insolvency or Liquidation Proceeding shall be instituted by the
Company or an involuntary Insolvency or Liquidation Proceeding shall be
instituted against the Company and remain undismissed for a period of sixty (60)
days. So long as any Senior Indebtedness is outstanding, the holder of this Note
shall give the holders of the Senior Indebtedness five (5) business days' prior
written notice of any proposed acceleration with respect to this Note (which
notice may be given during a Deferral Period provided that the proposed
acceleration is not to be effective until the expiration of such Deferral
Period).

                  (e) In the event that, notwithstanding the foregoing
provisions of this Section 3.3, any payment shall be made by or on behalf of the
Company and received by the holder of this Note at a time after the giving of a
Deferral Notice and during a Deferral Period, then such payment shall be held in
trust for the benefit of and shall be immediately paid over to the holders of
Senior Indebtedness remaining unpaid or their respective Representatives, for
application to the payment in full of all Senior Indebtedness in accordance with
its terms (after giving effect to any prior or substantially concurrent payment
to the holders of such Senior Indebtedness).

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         3.4 SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS. After all
amounts payable under or in respect of Senior Indebtedness are paid in full, the
holder of this Note shall be subrogated to the extent of the payments or
distributions made to the holders of, or otherwise applied to payment of, such
Senior Indebtedness pursuant to the provisions of this Section 3 (equally and
ratably with the holders of all indebtedness of the Company which by its express
terms is subordinate and subject in right of payment to Senior Indebtedness to
substantially the same extent as this Note is so subordinate and subject in
right of payment and which is entitled to like rights of subrogation), to the
rights of the holders of such Senior Indebtedness (or their respective
Representatives) to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of and
interest on this Note shall be paid in full. For purposes of such subrogation,
no payments or distributions to the holders of the Senior Indebtedness (or their
respective Representatives) of any cash, property or securities to which the
holder of this Note would be entitled except for the provisions of this Section
3, and no payments over pursuant to the provisions of this Section 3 to the
holders of Senior Indebtedness (or their respective Representatives) by the
Company or the holder of this Note shall, as among the Company and its creditors
(other than holders of Senior Indebtedness and the holder of this Note), be
deemed to be a payment or distribution by the Company to or on account of Senior
Indebtedness, it being understood that the provisions of this Section 3 are
solely for the purpose of defining the relative rights of the holders of Senior
Indebtedness on the one hand and the holder of this Note on the other hand.

                  If any payment or distribution to which the holder of this
Note would otherwise have been entitled but for the provisions of this Section 3
shall have been applied, pursuant to the provisions of this Section 3, to the
payment of all amounts payable under the Senior Indebtedness, then and in such
case, the holder of this Note shall be entitled to receive (equally and ratably
with the holders of all indebtedness of the Company which by its express terms
is subordinate and subject in right of payment to Senior Indebtedness to
substantially the same extent as this Note is subordinate and subject in right
of payment and which is entitled to like rights) from the holders of such Senior
Indebtedness (or their respective Representatives) any substantially
contemporaneous payments or distributions received by such holders of Senior
Indebtedness (or their respective Representatives) in excess of the amount
sufficient to pay in full all obligations payable under or in respect of such
Senior Indebtedness.

         3.5 RIGHTS OF HOLDERS NOT TO BE IMPAIRED. Nothing contained in this
Section 3 or elsewhere in this Note is intended to or shall:

                  (a) impair, as among the Company, its creditors other than
holders of Senior Indebtedness and the holder of this Note, the obligation of
the Company, which is absolute and unconditional, to pay to the holder of this
Note the principal of and interest on this Note as and when the same shall
become due and payable in accordance with their terms; or

                  (b) affect the relative rights against the Company of the
holder of this Note and creditors of the Company other than the holders of
Senior Indebtedness; or

                  (c) prevent the holder of this Note from exercising all
remedies otherwise permitted by applicable law upon default subject to the
rights, if any, under this Section 3 of the holders of Senior Indebtedness to
receive payments or distributions otherwise payable or deliverable to, or
received by, such holder upon the exercise of any such remedy and subject to the
restriction on acceleration set forth in paragraph 3.3(d).

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         3.6 EFFECTUATION OF SUBORDINATION. If the holder of this Note does not
file a proper claim or proof of debt in the form required in any Insolvency or
Liquidation Proceeding prior to 30 days before the expiration of the time to
file such claims or proofs, then the holders of the Senior Indebtedness, or
their Representatives, are hereby authorized, and shall have the right (without
any duty), to file an appropriate claim for and on behalf of such holder.

         3.7 NO WAIVER OF SUBORDINATION PROVISIONS. No right of any present or
future holder of any Senior Indebtedness, or Representative thereof, to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act by any such holder or Representative thereof, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Note regardless of any knowledge thereof which any such holder or Representative
thereof may have or be otherwise charged with.

         Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness (or their Representatives, if applicable)
may, at any time and from time to time, without the consent of or notice to the
holder of this Note, without incurring responsibility to the holder of this Note
and without impairing or releasing the subordination and other benefits provided
in this Section 3 or the obligations hereunder of the holder of this Note to the
holders of Senior Indebtedness, do any one or more of the following all without
notice to the holder of this Note and even if any right of reimbursement or
subrogation or other right or remedy of the holder of this Note is affected,
impaired or extinguished thereby:

                  (a) change the manner, place or terms of payment or change or
extend the time of payment of, or renew, exchange, amend or alter, the terms of
any Senior Indebtedness, any security therefor or guaranty thereof or any
liability of the Company or any guarantor to such holder, or any liability
incurred directly or indirectly in respect thereof, or otherwise amend, renew,
exchange, modify or supplement in any manner Senior Indebtedness or any
instrument evidencing or guaranteeing or securing the same or any agreement
under which Senior Indebtedness is outstanding;

                  (b) sell, exchange, release, surrender, realize upon, enforce
or otherwise deal with in any manner and any order any property pledged,
mortgaged or otherwise securing Senior Indebtedness or any liability of the
Company or any guarantor to such holder, or any liability incurred directly or
indirectly in respect thereof;

                  (c) settle or compromise any Senior Indebtedness or any other
liability of the Company or any guarantor of the Senior Indebtedness to such
holder or any security therefor or any liability incurred directly or indirectly
in respect thereof and apply any sums by whomsoever paid and however realized to
any liability (including, without limitation, Senior Indebtedness) in any manner
or order; and

                  (d) fail to take or to record or otherwise perfect, for any
reason or for no reason, any lien or security interest securing Senior
Indebtedness by whomsoever granted, exercise or delay in or refrain from
exercising any right or remedy against the Company or any security or any
guarantor or any other person, elect any remedy and otherwise deal freely with
the Company and any security and any guarantor of the Senior Indebtedness or any
liability of the Company or any guarantor to such holder or any liability
incurred directly or indirectly in respect thereof.

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         3.8 RELIANCE ON COURT ORDERS; EVIDENCE OF STATUS. Upon any payment or
distribution of assets of the Company referred to in Section 3.2, the holder of
this Note shall be entitled to rely upon a certificate of the receiver, trustee
in bankruptcy, liquidating trustee, agent or other person making such payment or
distribution delivered to the holder of this Note for the purpose of
ascertaining the persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Section 3.

         In the absence of any such receiver, trustee in bankruptcy, liquidating
trustee, agent or other person, the holder of this Note shall be entitled to
rely upon a written notice by a person representing himself to be a holder of
Senior Indebtedness (or a Representative on behalf of such holder) as evidence
that such person is a holder of Senior Indebtedness (or is such a
Representative) for any relevant purpose. In the event that any holder
determines in good faith that further evidence is required with respect to the
right of any person as a holder of Senior Indebtedness (or such a
Representative), as to the extent to which such person is entitled to
participate in such payment or distribution, and as to other facts pertinent to
the rights of such person under this Section 3, such holder may request such
person to furnish evidence to the reasonable satisfaction of such holder as to
the amount of Senior Indebtedness held by such person, the extent to which such
person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such person under this Section 3, and if such
evidence is not furnished such holder may defer (without liability to any holder
of Senior Indebtedness or any Representative of such holder) any payment to such
person pending judicial determination as to the right of such person to receive
such payment or until such time as such holder shall be otherwise satisfied as
to the right of such person to receive such payment.

         3.9 NOT TO PREVENT EVENTS OF DEFAULT. The failure to make a payment on
account of the principal of or interest on this Note by reason of any provision
of this Section 3 shall not be construed as preventing the occurrence of a
default or an Event of Default under this Note. Except as expressly provided in
paragraph 3.3(d), nothing in this Section 3 shall affect the rights of the
holder of this Note to accelerate the maturity of this Note in accordance with
its terms.

         3.10 AMENDMENTS. Without the prior written consent of the holders of
the Senior Indebtedness, the Company and the holder of this Note shall not (i)
amend, supplement or otherwise modify any provision of this Section 3, (ii)
accelerate the payment of the principal of or interest on this Note or (iii) if
such amendment would have a material adverse effect on the holders of the Senior
Indebtedness, amend, supplement or otherwise modify any other provision of this
Note.

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        4. DEFAULT.

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

                  (a) the Company shall fail to make the Final Payment on or
prior to January 15, 2004;

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

                  (c) the Company shall default (as principal or guarantor or
other surety) either in the payment of the principal of, or premium, if any, or
interest on any indebtedness for borrowed money other than this Note or any
similarly subordinated notes) or with respect to any of the provisions of any
evidence of indebtedness for borrowed money (other than this Note or any
similarly subordinated notes) or which represents a purchase money obligation,
which indebtedness shall be in an amount equal to or greater than $250,000, or
any agreement relating to either thereof, and the effect of such default is to
accelerate the maturity of such indebtedness or the holder thereof shall cause
such indebtedness to become due prior to the stated maturity thereof, or the
Company shall not pay such indebtedness at maturity;

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

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

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

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         4.2 REMEDIES ON AND NOTICES OF DEFAULT. Subject to the provisions of
Section 3, in case any one or more Events of Default shall occur, the holder of
this Note may proceed to protect and enforce the rights of such holder by a suit
in equity, action at law or other appropriate proceeding, whether for the
specific performance of any agreement contained in this Note, or for an
injunction against a violation of any of the terms or provisions hereof or
thereof, or in aid of the exercise of any power granted hereby or thereby or by
law. In case of a default under this Note, the Company will pay to the holder of
this Note such further amount as shall be sufficient to cover the reasonable
cost and expense of enforcement, including, without limitation, reasonable
attorneys' fees. If the holder of this Note shall give any notice or take any
other action in respect of a claimed default, the Company shall forthwith give
written notice thereof to all other holders of similarly subordinated notes at
the time outstanding, describing the notice or action and the nature of the
claimed default. No course of dealing and no delay on the part of any holder of
this Note in exercising any right shall operate as a waiver thereof or otherwise
prejudice such holder's rights or the rights of the holder of any similarly
subordinated notes. No remedy conferred by this Note upon the holder shall be
exclusive of any other remedy referred to herein or now or hereafter available
at law, in equity, by statute or otherwise.

     5. COVENANTS.

                  (a) The Company will duly and punctually pay the principal of
and interest on this Note in accordance with the terms of this Note. There shall
be no prepayment penalty on this Note.

                  (b) During the period that this Note remains outstanding the
Company shall not pay or set aside any amounts as dividends on its Common Stock,
or redeem or repurchase any of its Common Stock, or effect any recapitalization
which results in any payment of cash, notes or other debt instruments for the
Company's Common Stock.

                  (c) During the period that this Note remains outstanding, the
Company shall not pay cash compensation to its directors in consideration for
director services rendered on or after May 15, 2002; PROVIDED, HOWEVER, that
this provision is not intended to prohibit the Company from reimbursing its
directors for reasonable and necessary expenses incurred in connection with
their attendance at meetings of the Board of Directors or committees of the
Board of Directors of the Company; and PROVIDED FURTHER, HOWEVER, that this
provision is subject to approval or ratification by the Company's Board of
Directors, which approval the Company will use its best efforts to obtain as
soon as practicable.

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

     6. MISCELLANEOUS.

                  (a) This Note shall be governed by and construed in accordance
with the laws of the State of California, without regard to choice of law
principles. If any one or more of the provisions contained in this Note shall

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<PAGE>

for any reason be found by a court of competent jurisdiction to be invalid,
illegal or unenforceable in any respect, the parties agree that such court may
modify such provision to the extent necessary to make it valid, legal and
enforceable. In any event, such provision shall be separable and shall not limit
or affect the validity, legality or enforceability of any other provision
hereunder.

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

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

                  (d) The terms of this Note shall bind the Company and the
holder of this Note and their respective successors and assigns.

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

                                                   TELENETICS CORPORATION

                                                   By: /s/ David L. Stone
                                                       -------------------------
                                                       David L. Stone, President

                                      -10-<PAGE>

Exhibit 10.11

                           NOTE MODIFICATION AGREEMENT

         THIS NOTE MODIFICATION AGREEMENT (this "AGREEMENT") is entered into as
of the 30th day of June, 2002, by and between TELENETICS CORPORATION, a
California corporation (the "ISSUER"), and TERRY S. PARKER, an individual (the
"HOLDER").

                                 R E C I T A L S

         WHEREAS, the Issuer is the maker of that certain 8% Unsecured
Promissory Note dated as of November 16, 2000 in the principal amount of
$150,000 (the "NOTE"), in favor of the Holder; and

         WHEREAS, the Issuer and the Holder desire to amend and then exchange
the Note as provided herein.

                                A G R E E M E N T

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements set forth below, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

         1. EXTENSION OF MATURITY AND PAYMENT DUE DATES. The Maturity Date of
the Note, as defined therein, hereby is extended to July 15, 2002. The due dates
of all remaining amounts due or to become due under the Note hereby are extended
to July 15, 2002. The parties acknowledge and agree that the Issuer is not in
default under the terms of the Note.

         2. PARTIAL PAYMENT AND EXCHANGE OF NOTE. On July 15, 2002, the Holder
shall deliver the Note to the Issuer for cancellation in exchange for the
delivery by the Issuer to the Holder of (a) the sum of Seven Thousand Eight
Hundred Dollars ($7,800) plus interest accrued on the Note from July 1, 2002
through July 14, 2002 and (b) a note in the principal amount of One Hundred
Forty-Eight Thousand, Two Hundred Dollars ($148,200) in the form attached as
EXHIBIT A to this Agreement (the "EXCHANGE NOTE").

         3. INVESTMENT INTENT AND ACCREDITED INVESTOR STATUS. The Holder
represents that the Holder is acquiring the Exchange Note for its own account,
for investment purposes, and not with a view to or for sale in connection with
any distribution thereof. The Holder understands that the Exchange Note has not
been registered under the Securities Act of 1933, as amended, or registered or
qualified under any state securities law in reliance upon specific exemptions
therefrom, which exemptions may depend upon, among other things, the bona fide
nature of the Holder's investment intent as expressed herein. The Holder also
represents that the Holder is an "accredited investor" (as that term is defined
in Rule 501 of Regulation D under the Securities Act), and that by reason of its
business and financial experience, the Holder has such knowledge, sophistication
and experience in business and financial matters so as to be capable of
evaluating the merits and risks of the investment in the Exchange Note and is
able to bear the economic risk of its investment.

<PAGE>

         4. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without regard to choice of
law principles. If any one or more of the provisions contained in this Agreement
shall for any reason be found by a court of competent jurisdiction to be
invalid, illegal or unenforceable in any respect, the parties agree that such
court may modify such provision to the extent necessary to make it valid, legal
and enforceable. In any event, such provision shall be separable and shall not
limit or affect the validity, legality or enforceability of any other provision
hereunder.

         5. REMAINDER OF NOTE TERMS. Except as specifically modified or amended
by the terms hereof, all other terms and conditions of the Note shall remain in
full force and effect.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
or about July 9, 2002, to memorialize an agreement intended by the parties to be
effective as of June 30, 2002.

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

"ISSUER"                             TELENETICS CORPORATION,
                                     a California corporation

                                     By: /S/ GEORGE ROMBACH
                                         ---------------------------------------

                                         Its: CHIEF LEGAL AND ACCOUNTING OFFICER
                                              ----------------------------------

"HOLDER"                                 /S/ TERRY S. PARKER
                                         ---------------------------------------
                                         Terry S. Parker, an individual

                                      -2-

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