> AMENDED, RESTATED AND CONSOLIDATED
> SECURED PROMISSORY NOTE
> 
> 
> 
> 
> $9,196,801.23 Originally Dated:
> First Restated As Of:
> Restated As Of: June 30, 2000
> March 28, 2002
> October 4, 2000
> 
> 
> 
>      FOR VALUE RECEIVED, the undersigned TELTRONICS, INC., a Delaware
> corporation ("Maker") hereby promises to pay to HARRIS CORPORATION or order
> ("Payee"), at 1025 West NASA Boulevard, Melbourne, Florida 32919, or at such
> other address as Payee may from time to time designate to Maker in writing,
> the principal sum of NINE MILLION ONE HUNDRED NINETY-SIX THOUSAND EIGHT
> HUNDRED ONE DOLLARS AND TWENTY-THREE CENTS ($9,196,801.23), in lawful money of
> the United States of America which, at the time of payment, shall be legal
> tender for the payment of all debts, public and private together with interest
> at the rate of eight percent (8%) per annum computed on the basis of a 360-day
> year.
> 
> 
> 
>       This Amended, Restated and Consolidated Secured Promissory Note ("Note")
> is being executed and delivered in accordance with Section 2.1(a) of the
> Master Restructuring Agreement (the "Master Restructuring Agreement") pursuant
> to which Harris and Teltronics are restructuring certain indebtedness owed to
> Harris by Teltronics. All capitalized terms used in this Note and not
> otherwise defined shall have the meanings ascribed to such terms in the Master
> Restructuring Agreement.
> 
> 
> 
>      This Note is given as an amendment, extension, and restatement of the
> Secured Promissory Note dated June 30, 2000 in the original principal amount
> of $6,884,355.29 as amended, restated and consolidated with interest and in
> the principal amount of $7,096,622.91 as of October 4, 2000, and pursuant to
> which, by letter agreement dated April 13, 2001, the April 13, 2001 Invoice
> Amount of $2,642,941.62 was included as additional principal (for a total
> principal balance of $9,739,564.53). The principal amount of this Note
> includes and reflects the sum of $9,739,564.53 plus $255,663.58 of accrued and
> unpaid interest from January, 2002 to March, 2002, less $798,426.88 of the
> April 13, 2001 Invoice Amount which is being converted into Series C Preferred
> Stock as set forth in the Master Transaction Agreement. This Note is not
> intended to constitute a repayment of amounts owing under the Amended and
> Restated Secured Promissory Note, which was restated as of October 4, 2000.
> 
> 
> 
>      The holder of this Note is entitled to the rights and benefits of the
> Loan Agreement between Maker and Payee entered into as of March 27, 2002 (the
> "Loan Agreement") and the Security Agreement referred to below and may enforce
> the agreements of the Maker contained therein and exercise the remedies
> provided for thereby or otherwise available in respect thereof. Reference is
> hereby made to the Loan Agreement and the Security Agreement for a statement
> of such rights and benefits.
> 
> 
> 
>      1.     Payment of Principal and Interest. (a) Interest on the unpaid
> principal amount of this Note shall accrue from March 27, 2002, and shall be
> payable monthly in arrears commencing on May 1, 2002, at the applicable rate
> per annum and shall be payable on the first day of each month thereafter until
> the entire unpaid principal balance on this Note is paid in full.
> 
> 1
> 
> --------------------------------------------------------------------------------
> 
> 
> 
>           (b)      Installments of principal and interest of this Note shall
> be payable in forty-eight (48) monthly installments as set forth in Exhibit A
> attached hereto commencing on May 1, 2002.
> 
> 
> 
>           (c)     The entire unpaid principal balance on this Note (which
> would be equal to $7,196,801.28 if all payments were made in accordance with
> the terms hereof), together with all accrued and unpaid interest or other sums
> due hereunder, shall be due and payable on May 1, 2006, if not sooner prepaid,
> accelerated or declared to be due and payable.
> 
> 
> 
>           (d)     If any day for payment of principal of, or interest on, this
> Note shall be a day other than a business day, such payment shall be made on
> the next succeeding business day.
> 
> 
> 
>           (e)     All payments hereunder shall be applied first to all fees,
> expenses and other amounts (exclusive of principal and interest) then due
> hereunder, next to interest, then due and the balance to the principal then
> due.
> 
> 
> 
>           (f)     The Maker shall not be obligated to pay and Payee shall not
> collect interest at a rate in excess of the maximum permitted by law or the
> maximum that will not subject the Payee to any civil or criminal penalties. If
> because of the acceleration of maturity, the payment of interest in advance or
> any other reason, the Maker is required, under the provisions of this Note, to
> pay interest at a rate in excess of such maximum rate, the rate of interest
> under such provisions shall immediately and automatically be reduced to such
> maximum rate, and any payment made in excess of such maximum rate together
> with interest thereon at the rate provided herein from the date of such
> payment, shall be immediately and automatically applied to the payment of
> expenses owing to the Payee and then to the reduction of the unpaid principal
> balance of this Note as of the date on which such excess payment was made. If
> the amount to be so applied to reduction of the unpaid principal balance
> exceeds the unpaid principal balance, the amount of such excess shall be
> refunded by the payee to the Maker.
> 
> 
> 
>      2.     Prepayment of Principal.
> 
> 
> 
>           (a)     Required Prepayment. (i) If, at any time while principal or
> interest on this Note remain outstanding, the Maker sells or otherwise issues
> any debt securities (a "Debt Financing"), except through a refinancing of any
> of Maker's existing debt securities, the Maker shall, unless the Payee waives
> its right to such application in writing, apply the Applicable Percentage (as
> defined below) of the gross cash proceeds to the Maker from such Debt
> Financing to reduce the outstanding principal and interest on the Note. Such
> prepayment shall occur within five (5) days after the closing of the Debt
> Financing (a "Required Prepayment Date"). The term "Applicable Percentage"
> shall mean (i) 20%, if the gross cash proceeds to the Maker from the Debt
> Financing are less than or equal to $5,000,000, or (ii) 30%, if the gross cash
> proceeds to the Maker from the Debt Financing exceed $5,000,000.
> 
> 
> 
>                (ii) The Payee shall have the right to require that this Note
> be prepaid in full (x) upon the sale, transfer or other disposition by Maker
> of all or substantially all of its property, assets or business or (y) upon
> any merger, reorganization or consolidation in which Maker is not the
> resulting or surviving entity or (z) upon any merger, reorganization, sale of
> stock or other similar event pursuant to which the current owners of the stock
> of Maker cease to own less than fifty (50%) percent of the voting stock of
> Maker.
> 
> 2
> 
> --------------------------------------------------------------------------------
> 
> 
> 
>           (b)      Optional Prepayment. Maker shall have the right at any time
> without penalty or premium to prepay the principal of this Note in whole or in
> part together with accrued interest on the amount prepaid from the date hereof
> to the date of the prepayment and the payment of all other fees, expenses and
> sums due and owing hereunder, in each case with the amount of such prepayment
> being applied first to any such fees or expenses, then to interest until all
> accrued and unpaid interest through the date of prepayment has been paid and
> thereafter to principal as set forth in this Note. This Note may be required
> to be prepaid prior to its maturity as set forth herein and in the Loan
> Agreement.
> 
> 
> 
>           (c)      Application of Partial Prepayments. Any partial prepayment
> shall be applied in the inverse order of maturity and shall not reduce the
> amount of the required monthly payments.
> 
> 
> 
>      3.     Late Charges; Default Interest. After maturity (whether by
> acceleration, required prepayment or otherwise) of this Note or after the
> occurrence of an Event of Default (as defined below) with respect to any
> payment of principal or interest due on this Note, this Note shall bear
> interest, payable on demand, at a rate of twelve and one-half (12.5%) percent
> per annum, but not in excess of the maximum rate allowed by law.
> 
> 
> 
>      4.     Security. This Note is secured by and entitled to the benefit of a
> Security Agreement of Maker to Payee originally dated as of June 30, 2000, as
> amended by the Amended and Restated General Security Agreement dated as of
> March 27, 2002 (as so amended, the "Security Agreement").
> 
> 
> 
>      5.     Covenants. So long as this Note shall remain unpaid, Maker shall,
> unless waived by the advance written consent of the Payee, comply with all of
> its covenants and obligations set forth in the Loan Agreement, the Security
> Agreement and this Note.
> 
> 
> 
>      6.     Events of Default. Any of the following events shall constitute an
> "Event of Default" under this Note:
> 
> 
> 
>           (a)     A failure by Maker to pay any installment of principal of,
> interest on or any other sum due under, this Note, including any required
> prepayment, within three (3) days after it shall become due; or
> 
> 
> 
>           (b)     A default in the payment of any other amount (other than an
> amount referred to in (a) above) due under the Loan Agreement, the Security
> Agreement or this Note and such default is not cured within ten (10) calendar
> days; or
> 
> 
> 
>           (c)     An event of default under the Security Agreement or the Loan
> Agreement; or
> 
> 
> 
>           (d)     To the extent not covered by Section 6(c) above, a default
> shall be made in the due observance or performance by the Maker of any
> covenant, obligation, condition or agreement contained in this Note, the Loan
> Agreement, the Security Agreement, or any other Transaction Documents (as such
> term is defined in the Loan Agreement) (other than those specified in (a), (b)
> or (c) above); and such default shall continue unremedied for a period of ten
> (10) calendar days after notice thereof from Harris to Maker.
> 
> 3
> 
> --------------------------------------------------------------------------------
> 
> 
> 
>      7.     Remedies. At any time after occurrence and during the continuance
> of an Event of Default, Payee may, at its option and without notice or demand,
> do any one or more of the following:
> 
> 
> 
>           (a)     Declare the entire unpaid principal balance of this Note,
> together with interest accrued thereon if any, and all other sums due from
> Maker hereunder, to be immediately due and payable; or
> 
> 
> 
>           (b)     Exercise any other right or remedy as may be provided in
> this Note, the Loan Agreement, the Security Agreement or as otherwise provided
> at law or in equity or otherwise.
> 
> 
> 
>      8.     Costs and Attorney's Fees. In any suit, action or proceeding for
> the collection of this Note or to enforce any of Payee's rights hereunder,
> Payee may recover all reasonable and actual costs of and other expenses in
> connection with the suit, action or proceeding, including attorney fees and
> disbursements, paid or incurred by Payee, together with any and all other
> amounts provided by law. Maker also agrees to pay any recording, stamp, or
> other taxes or fees relating to this Note or the Security Agreement.
> 
> 
> 
>      9.     Remedies Cumulative. The rights and remedies provided to Payee in
> this Note, the Loan Agreement, and the Security Agreement (a) are not
> exclusive and are in addition to any other rights and remedies Payee may have
> at law or in equity, (b) shall be cumulative and concurrent, (c) may be
> pursued singly, successively or together against Maker, at the sole discretion
> of Payee, and (d) may be exercised as often as occasion therefor shall arise.
> The failure to exercise or delay in exercising any such right or remedy shall
> not be construed as a waiver or release thereof.
> 
> 
> 
>      10.     Waivers and Agreements. Maker and all endorsers, sureties and
> guarantors, jointly and severally: (a) waive presentment for payment, demand,
> notice of demand, notice of nonpayment or dishonor, protest and notice of
> protest of this Note, and all other notices (not expressly provided for in
> this Note) in connection with the delivery, acceptance, performance, default,
> or enforcement of the payment of this Note; and (b) agree that the liability
> of each of them shall be unconditional without regard to the liability of any
> other party and with respect to any such endorser, surety or guarantor, shall
> not be affected in any manner by any indulgence, extension of time, renewal,
> waiver or modification granted or consented to by Payee at any time; such
> endorsers, sureties and guarantors, jointly or severally, further (c) consent
> to any and all indulgences, extensions of time, renewals, waivers or
> modifications granted or consented to by Payee at any time; and (d) agree that
> additional makers, endorsers, guarantors or sureties may become parties to
> this Note without notice to them or affecting their liability under this Note.
> 
> 
> 
>      11.     Payee's Waivers. Payee shall not be deemed, by any act or
> omission or commission, to have waived any of its rights or remedies hereunder
> unless such waiver is in writing and signed by Payee. Such a written waiver
> signed by Payee shall waive Payee's rights and remedies only to the extent
> specifically stated in such written waiver. A waiver as to one or more
> particular events of defaults shall not be construed as continuing or as a bar
> to or waiver of any right or remedy as to another or subsequent event or
> default.
> 
> 4
> 
> --------------------------------------------------------------------------------
> 
> 
> 
>      12.     Miscellaneous.
> 
> 
> 
>           (a)     Successors and Assigns. The words "Payee" and "Maker" shall
> include the respective distributees, successors and permitted assigns of Payee
> and Maker, respectively. The provisions of this Note shall bind and inure to
> the benefit of Payee and Maker and their respective distributees, successors
> and assigns. Notwithstanding the foregoing, Maker shall have no right to
> distribute, assign, delegate, or otherwise transfer this Note of any of
> Maker's obligations hereunder without the prior written consent of Payee.
> 
> 
> 
>           (b)     No Set-Off. All payments hereunder shall be made without
> set-off or counterclaim under any circumstances and in such amounts as may be
> necessary in order that all such payments shall not be less than the amounts
> otherwise specified to be paid hereunder.
> 
> 
> 
>           (c)     Amendment of Note. This Note may be modified, amended,
> discharged or waived only by an agreement in writing signed by the party
> against whom enforcement of any such modification, amendment, discharge or
> waiver is sought.
> 
> 
> 
>           (d)     Governing Law. This Note shall be governed by and construed
> according to the laws of the State of Florida without regard to its conflict
> of laws principles.
> 
> 
> 
>           (e)     Partial Invalidity. The unenforceability or invalidity of
> any one or more provisions shall not render any other provisions herein
> contained unenforceable or invalid.
> 
> 
> 
>           (f)     Waiver of Jury Trial; Jurisdiction. The Payee and the Maker
> hereby waive trial by jury in any litigation in any court with respect to, in
> connection with, or arising out of this Note or the validity, protection,
> interpretation, collection or enforcement thereof, or any other claim or
> dispute howsoever arising between the Payee and the Maker hereunder. The Maker
> hereby irrevocably submits to the jurisdiction of any state court located in
> Brevard County, Florida, or in a federal court located in the Middle District
> of Florida for the purpose of any suit, actions, proceedings, or judgments
> relating or arising out of this Note.
> 
> 
> 
> 
> 
> 
> 
> [Intentionally Left Blank to End of Page]
> 
> 
> 
> 
> 
> 5
> 
> --------------------------------------------------------------------------------
> 
>      IN WITNESS WHEREOF, TELTRONICS, INC. has executed this AMENDED, RESTATED
> AND CONSOLIDATED SECURED PROMISSORY NOTE the day and year first written above.
> 
> 
> 
> 
> 
>   MAKER:
> TELTRONICS, INC.
> 
> 
> By:        /s/ Ewen R. Cameron          
> 
> Name:     Ewen R. Cameron                  
> 
> Title:       President & CEO                  
> 
> 
> 
> 
> 
> 6
> 
> --------------------------------------------------------------------------------
> 
> EXHIBIT A
> AMORTIZATION SCHEDULE
> 
> 
> 
> Beginning Principal
> Stated Interest (Annual)
> Monthly Interest
> Term (Months)
> Final Principal Payment $9,196,801.28
> 8%
> 0.6667%
> 48
> $7,196,801.28     __________________________________
> Ewen R. Cameron
> 
> 
> 
> 
> 
> 
> Period Interest Principal Balance $9,196,801.28 1 $ 61,312.01 $35,492.51
> $9,161,308.77 2 $ 61,075.39 $35,729.13 $9,125,579.64 3 $ 60,837.20 $35,967.32
> $9,089,612.32 4 $ 60,597.42 $36,207.10 $9,053,405.21 5 $ 60,356.03 $36,448.49
> $8,016,956.73 6 $ 60,113.04 $36,691.48 $8,980,265.25 7 $ 59,868.44 $36,936.08
> $8,943,329.17 8 $ 59,622.19 $37,182.33 $8,906,148.84 9 $ 69,374.31 $37,430.21
> $8,868,716.64 10 $ 59,124.78 $37,679.74 $8,831,036.89 11 $ 58,873.58
> $37,930.94 $8,793,105.95 12 $ 58,620.71 $38,183.81 $8,754,922.14 13 $
> 58,366.15 $38,438.37 $8,716,483.77 14 $ 58,109.89 $38,694.83 $8,677,789.14 15
> $ 57,851.93 $38,952.59 $8,638,838.55 16 $ 57,592.24 $39,212.28 $8,599,624.27
> 17 $ 57,330.83 $39,473.69 $8,560,150.58 18 $ 57,067.67 $39,736.85
> $8,520,413.73 19 $ 56,802.76 $40,001.76 $8,480,411.97 20 $ 56,536.08
> $40,288.44 $8,440,143.53 21 $ 56,267.62 $40,536.90 $8,399,606.63 22 $
> 55,997.38 $40,807.14 $8,358,799.49 23 $ 55,725.33 $41,079.19 $8,317,720.30 24
> $ 55,451.47 $41,353.05 $8,276,367.25 25 $ 55,175.78 $41,628.74 $8,234,738.51
> 26 $ 54,898.26 $41,906.28 $8,192,832.25 27 $ 54,618.88 $42,185.64
> $8,150,646.61 28 $ 54,337.64 $42,468.88 $8,108,179.73 29 $ 54,054.53
> $42,749.99 $8,065,429.74 30 $ 53,769.53 $43,034.99 $8,022,394.76 31 $
> 53,482.63 $43,321.89 $7,979,072.87 32 $ 53,193.82 $43,610.70 $7,935,462.17 33
> $ 52,903.08 $43,901.44 $7,891,560.73 34 $ 52,610.40 $44,194.12 $7,847,366.81
> 35 $ 52,315.78 $44,488.74 $7,802,877.87 36 $ 52,019.19 $44,785.33
> $7,758,092.54 37 $ 51,720.62 $45,083.90 $7,713,008.63 38 $ 51,420.06
> $45,384.46 $7,667,624.17 39 $ 51,117.49 $45,687.03 $7,621,937.15 40 $
> 50,812.91 $45,991.61 $7,575,945.54 41 $ 50,508.30 $46,298.22 $7,529,647.32 42
> $ 50,197.65 $46,606.87 $7,483,040.45 43 $ 49,888.94 $46,917.58 $7,436,122.87
> 44 $ 49,574.15 $47,230.37 $7,388,892.50 45 $ 49,259.28 $47,545.24
> $7,341,347.27 46 $ 48,942.32 $47,862.20 $7,293,485.06 47 $ 48,623.23
> $48,181.29 $7,245,303.77 48 $ 48,302.03
> 
> --------------------------------------------------------------------------------
> 
> $48,502.49
> 
> --------------------------------------------------------------------------------
> 
> $7,196,801.28 2,646,616.95 $2,000,000.00
> 
> 
> 
> ORL1 #709015 v5