Exhibit 10.5
THIS DOCUMENT CREATES A LEGALLY
BINDING OBLIGATION. READ THIS
DOCUMENT CAREFULLY!
Corlund Electronics ______________________ REPAYMENT AGREEMENT
It is hereby Stipulated by and between Corlund Electronics, Tustin (hereinafter
"Creditor") and Telenetics Corporation (hereinafter "Debtor"), that Debtor is
indebted to Creditor for the payment of a term loan to Debtor in the principal
sum of One Million, Two Hundred Thousand Dollars ($1,200,000.00) together with
interest thereon at the rate of nine percent (9%) per annum from August 30,
2002. As a result, Debtor promises to pay to Creditor the above referenced sum
in one (1) installment of Sixty Thousand Dollars ($60,000.00) on November 30,
2002 and the remaining balance of principle and interest in twelve (12) equal
monthly installments commencing February 28, 2003 and continuing on the last day
of each calendar month and all due and payable on or before January 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 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 of 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, which Debtor
fails to cure within fifteen (15) days, 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 the 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 shall stipulate and agree that none of
the terms and provisions contained in this Note or 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: August 30, 2002 WITNESSED BY:
DEBTOR
TELENETICS CORPORATION
By /S/ XXXXX XXXXX /S/ XXXXXX XXXXXXX
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Xxxxx Xxxxx, President Xxxxxx Xxxxxxx, Secretary
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