EXHIBIT 10.59
THIS DOCUMENT CREATES A LEGALLY
BINDING OBLIGATION. READ THIS
DOCUMENT CAREFULLY!
TELENETICS REPAYMENT AGREEMENT
It is hereby Stipulated by and between Corlund Electronics) Inc. ("Creditor")
and Telenetics Corporation ("Debtor"), that Debtor is indebted to Creditor for
the payment of a term loan to Debtor in the principal sum of Three Hundred
Thousand Dollars ($300,000.00) together with interest thereon at the rate of
nine percent (9%) per annum from December 31, 2002. As a result, Debtor promises
to pay to Creditor the above referenced sum in one installment of Fifteen
Thousand Dollars ($15,000.00) on March 31, 2003 and the remaining balance of
principal and interest in twelve (12) equal monthly installments commencing June
30, 2002 and continuing on the last day of each calendar month and all due and
payable on or before May 31, 2004.
All installments hereunder shall be applied first to the payment of all
interest accrued to the date of such payments, and the balance, if any, shall be
applied to the payment of principal.
The occurrence of any of the following shall be deemed to be an event
of defaults ("Event of Default") hereunder:
(a) Failure to pay any installment of principal and/or
interest when due pursuant to the terms hereof:
(b) Institution of proceedings to be adjudicated a bankrupt or
having insolvency proceedings against it; filing a petition, answer of
consent seeking reorganization or relief under the federal bankruptcy
laws or any other applicable federal or state law (whether now in
effect or enacted in the future); consenting to the filing of any such
petition or to the appointment of a receiver, liquidator, assignee,
trustee, or other similar official for any business owned by the
Undersigned or of substantially all its assets; making a general
assignment benefit of creditors or admitting in writing its liability
to pay its debts generally as they come due.
Upon the occurrence of and Event of Default hereunder, Creditor shall have
the option to declare the entire unpaid principal balance hereof, together
with all accrued interest thereon to be immediately due and payable, to
demand payment thereof and to exercise all rights and remedies then
available to Creditor hereunder or under any other document or instrument
securing this Note or under applicable law. No delay or omission on the part
of Creditor in exercising any right under this Note or under any of the
agreements referred to in this Note shall operate as a waiver of such right.
Creditor and Debtor stipulate and agree that none of the terms and
provisions contained in this Note 03 in any other document or payment of
interest at a rate in excess of the maximum interest rate permitted to be
charged by the laws of the State of California. In the event Creditor shall
collect monies which are deemed to constitute interest which would otherwise
increase the effective interest rate on this note to a rate in excess of
that permitted to be charged by the laws of the State of California, all
such sums deemed to constitute interest in excess of the maximum rate shall,
at the option of Creditor be credited to the payment of principal or
returned to the Undersigned.
The unpaid principal balance of this Note outstanding from time to time,
together with all accrued but unpaid interest thereon, may be prepaid at any
time at the option of the Undersigned, in whole or in part, without
permission or penalty.' The Undersigned hereby waives diligence,
presentment, protest, dishonor and nonpayment of this Note, and expressly
agree that, without in any way affecting the liability of the Undersigned
hereunder, Creditor may extend the maturity date or the time for payment of
any installment due hereunder, accept additional security, release any party
liable hereunder and release any party liable hereunder and release any
security now or hereafter securing this Note. The Undersigned further
waives, to the full extent permitted by law, the right to plead any and all
statutes of limitations as a defense to any demand on this Note, or on any
deed of trust, security agreement, leas assignment, guaranty or other
agreement now or hereafter securing this Agreement.
If balance due under this agreement is not paid when due or if any
Event of Default occurs, the Undersigned promises to pay all costs of
enforcement and collection, including but not limited to reasonable
attorney's fees whether or not such enforcement and collection includes the
filing of a lawsuit.
Every provision of this agreement is intended to be severable. In the
event any term or provision hereof is declared to be illegal or invalid for
any reason whatsoever by a Court of competent jurisdiction, the remaining
terms and provisions shall remain binding and enforceable.
This Note shall be governed and construed in accordance with the laws
of the State of California and shall be deemed to have been entered into in
Irvine, California.
DEBTOR CERTIFIES THAT (S) HE HAS READ AND UNDERSTOOD THIS
PREPAYMENT AGREEMENT, AND HAS VOLUNTARILY EXECUTED THIS AGREEMENT
DATE: December 31, 2002 WITNESSED BY:
DEBTOR:
TELENETICS CORPORATION
/s/ Xxxxx Xxxxx /s/ Xxxxxx Xxxxxxx
By: Xxxxx Xxxxx, President Xxxxxx Xxxxxxx, Secretary
