| Section 1.01 | Basic Data. |
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| (a)  | Landlord’s Address: | 1200 1st Avenue West, Suite 200, Bradenton, FL 34205 |   |
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| (b)  | Tenant’sAddress: | 2150 Whitfield Industrial Way, Sarasota, FL  34243 |   |
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| (c) | Premises Address: | 2511 Corporate Way, Palmetto, FL |   |
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| (d) | Tenant’s Trade Name: | Teltronics |   |
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| (e) | Lease Term: | Lease Commencement Date:  June 1, 2009. Lease Termination Date:  December 21, 2025. |                          |
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| (f)  | Permitted Use of Premises: | Offices, Light Manufacturing, Indoor Assembly, and Distribution. |
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| (g) | Base Rent: | See Schedule 1.01(g) attached and incorporated herein. |
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| (h) | Percentage Annual Adjustment to Base Rent:  Starting on January 1, 2013, and on each January 1st thereafter  the base rent for the year commencing on that date shall be increased over the prior year’s Base Rent and on an annual basis by the percentage, if any, of increase in the Consumer Price Index as of such date of adjustmentover that which existed one (1) year preceding the date of adjustment provided, however, that said increase shall be a minimum of  two percent (2%)  but not more than four percent (4%) of the previous year's Base Rent.  Such increase shall be determined by Landlord who shall notify Tenant thereof.  Tenant shall, upon notice and request by Landlord, pay the increase commencing upon the adjustment date.  Thereafter, the increase shall be payable equally with theregular rental payments.  In the event of a decrease in the Consumer Price Index, there shall be no reduction in the rent from the previous year.  "Consumer Price Index" shall mean the Consumer Price Index as now published by the U.S. Bureau of Labor Statistics under the caption "United States City Average for Urban Wage Earners and Clerical Workers All Items" 1982-84 = 100.  If the manner in which the Consumer Price Index as determined by the Bureau of Labor Statistics shall besubstantially revised (including, without limitation, a change in the base index year) and adjustment shall be made by Landlord in such revised index which would produce results equivalent, as nearly as possible, to those which would have been obtained if the Consumer Price Index had not been so revised.  If the Consumer Price Index shall become unavailable to the public because publication is discontinued or otherwise, or if equivalent data is not readily available to enable Landlord to make the adjustmentreferred to in the preceding sentence, Landlord will substitute therefore a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or if no such index shall be available, then a comparable index published by a major bank or other financial institution or by a University or a recognized financial publication. |
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| (i) | Premises Operating Expenses:  The total costs of operating, maintaining, and repairing the Premises as more fully described in Section 3.05 and as initially estimated in Exhibit C hereto. |
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| (j) | Security Deposit:  Seventy-five Thousand and No/100 ($75,000.00). |
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| (k) | Advance Rent:  One month’s estimated Premises Operating Expenses ($11,144.65). |
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| (l) | Condition:  Tenant is leasing the Premises in its current “AS-IS” condition except as otherwise specified in Section 8.05. |
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| (m) | Signage:  Tenant and its subtenant, DDS shall each be allowed one (1) lighted building sign, subject to applicable governmental regulations.  Tenant may install additional county approved signage on building at Tenant’s expense, subject to Landlord’s reasonable approval. |
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| Section 1.02 | Schedules, Exhibits and Addendum to Lease. |
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|   |  Schedule 1.01 (g) – Base Rent |   |
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|   | Exhibit A - | Site Plan of Building and Premises |
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|   |   |
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|   | Exhibit B - | Declaration of Protective Covenants, Conditions, Easements and Restrictions for Gulfcoast Corporate Park (delivered to Tenant prior to execution hereof) |   |
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|   | Exhibit C - | Estimated Monthly Payments |
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|   | Exhibit D - | Proposed Expanded Building Site Plan |
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| Section 1.03 | Definitions. |
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|   | (b) | Alterations.  Tenant’s work, improvements, alterations or additions performed by Tenant. |
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| Section 2.01 | Lease of Premises. |
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| Section 2.02 | Use of Common Areas. |
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| Section 2.03 | Lease Term. |
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| ARTICLE IIIRent |
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| Section 3.01 | Commencement of Rent. |
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| Section 3.02 | Payment of Rent. |
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|  On or before December 15, 2009  | 100% of Lease Year 1 Base Rent $373,520.00 plus 100% of Lease Year 1 estimated Premises Operating Expenses (to be determined under Lease) |   | This payment satisfies Tenant’s obligation for monthly Rent payments during Lease Year 1** |
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| ·   | If the Tenant provides the Notice of Expansion on or before July 31, 2009, or the  Expansion reaches Completion on or before March 31, 2010, the total credit shall be equal to the total Tenant’s Expansion Cost Contribution.  The credit shall be applied based upon the total number of whole months of the Lease term remaining after the ExpansionCompletion divided into the Expansion Cost Contribution to determine the “Monthly Credit Amount”. |
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| ·   | If the Tenant provides the Notice of Expansion after July 31, 2009, and the  Expansion reaches Completion after March 31, 2010, the total credit shall be equal to the Tenant’s Expansion Cost Contribution reduced by that sum multiplied by: (i) the number of full months elapsed from January 1, 2010 through the Completion; and (ii) 0.056% (collectively“Reduced Credit”).  The Monthly Credit Amount shall then be calculated by dividing the Reduced Credit by the number of full months remaining under the term of the Lease after the Completion Date. |
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| ·   | The applicable Monthly Credit Amount shall commence application against Rent payments on the first day of the first new month after the Expansion Completion. |
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| Section 3.03 | Cost of Living Adjustment to Base Rent. |
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| Section 3.04 | Real Estate Taxes and Improvement Assessments. |
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| Section 7.03 | Tenant Property Removal. |
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| Section 8.02 | Emergency Repairs. |
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| Section 8.04 | Return of Premises. |
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| Section 9.02 | Fire and Extended Coverage Insurance. |
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| Section 9.03 | Prohibited Articles. |
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| Section 9.04 | Indemnification of Landlord |
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| Section 10.01 | Payment and Metering. |
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| Section 11.01 | Subordination and Attornment. |
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|   | 1. | Terminate this Lease and re-enter the Premises and remove all persons and property from the Premises, either by summary proceedings or by any other suitable action or proceeding at law; or |
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|   | 2. | Without terminating this Lease, re-enter the Premises and remove all persons and property from the Premises, either by summary proceedings or by any other suitable action or proceeding at law, and relet all or any part of the Premises. |
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|   | 3. | With respect to Tenant’s default under provisions of Section 16.01(g), Landlord may undertake to cure such event of default in a commercially reasonable manner and Tenant shall be liable for Landlord’s expenses incurred in curing such event of default together with interest at the rate of eighteen percent (18%) per annum, all of which shall be due and payable as Additional Rent hereunder. |
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|   | 1. | Landlord shall give written notice of such termination, which shall take effect ten (10) days after such notice is given, or such greater number of days as is set forth in such notice, fully and completely as if the effective date of such termination were the date originally set forth in this Lease for the expiration of the Least Term; |
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|   | 2. | Tenant and any subtenants or assignees shall quit and peacefully surrender the Premises to Landlord, without any payment by Landlord for doing so, on or before the effective date of termination; and |
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|   | 3. | All Rent, that has accrued through the date of termination, shall be due as of the effective date of termination, together with such expenses, including attorneys' fees, as Landlord shall incur in connection with such termination. |
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|   | 4. | All Rent that becomes dues after the termination shall continue to be paid as provided in Subparagraph (f) 2. below. |
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|   | 1. | All Rent which shall have accured through the date of of such re-entry and or dispossession shall become due and shall be paid up to the time of such re-entry and/or dispossession, together with such expenses, including attorney's fees, as Landlord shall incur in connection with such re-entry and/or dispossession by summary proceedings or otherwise lawful means; and |
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|   | 2. | All Rent for the remainder of the Lease Term shall be paid by Tenant to Landlord, in monthly installments on the due dates specified in Article III for Rent payments for each month of the balance of the Term, the collection of such sums being subject to the provisions of Subsection 16.02(f), below including those pertaining to any reductions in such Rent payment as may result from any rentals collected from reletting the Premises; and |
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|   | 3. | Landlord may relet all or any part of the Premises, either in the name of Landlord or otherwise, for a term or terms which may, at Landlord's option, be equal to, less than, or greater than the period which would otherwise have constituted the balance of the Lease Term.  In connection with such reletting: |
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|   | (i) | Tenant or Tenant's representative shall pay, as Additional Rent, to Landlord, as they are incurred by Landlord, such reasonable expenses as Landlord may incur in connection with reletting, including, without limitation, legal expenses, attorneys' fees, brokerage commissions and expenses incurred in altering the building, offices, layout, etc., as well as, repairing and putting the Premises in good order and condition and inpreparing the Premises for reletting; |
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|   |   | incurred in altering the building, offices, layout, etc., as well as, repairing and putting the Premises in good order and condition and in preparing the Premises for reletting; |
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|   | (ii) | Tenant or Tenant's representative shall pay to Landlord, in monthly installments on the due dates for Rent payments for each month of the balance of the Term, the amount by which any Rent payment exceeds the net amount, if any, of the rents for such period collected on account of the reletting of the Premises; any suit brought to collect such amount for any month or months shall not prejudice in any way the rights of Landlordto collect the deficiency for any subsequent month or months by a similar action or proceeding; |
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|   | (iii) | At Landlord's option, Landlord may make such commercially reasonable alterations in or upon the Premises as Landlord, in Landlord's sole judgment, considers advisable and necessary for the purpose of reletting the Premises to an identifiable prospective tenant.  The making of such alterations shall not operate or be construed to release Tenant from liability under this Section 16.02.  The cost of all suchalterations and/or decorations shall be paid by Tenant to Landlord as Additional Rent; |
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|   | (iv) | Landlord shall have, receive, and enjoy as Landlord's sole and absolute property, any and all sums collected by Landlord as Rent or otherwise on reletting the Premises after Landlord shall resume possession of the Premises as provided by this Lease, including, without limitation, any amounts by which the sum or sums so collected shall exceed the continuing liability of Tenant under this Lease. |
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|   | (v) | Landlord and Tenant agree that after the commencement of suit for possession of the Premises or after final order or judgment for the possession of the Premises, Landlord may demand, receive, and collect any monies due or coming due without in any manner affecting such suit, order, or judgment.  All such monies collected shall be deemed to be payments on account of the use and occupation of the Premises, or, at theelection of Landlord, on account of Tenant's liability under this Lease; |
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|   | (vi) | The words "re-enter" and "re-entry", as used in this Section 16.02, are not and shall not be restricted to their technical legal meaning, but are used in the broadest sense; |
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|   | (vii) | Landlord, in addition to other rights and remedies it may have, shall have the right to to remove all or any part of Tenant's property from the Premises and any property removed may, at Landlord's option be stored in any public warehouse or elsewhere at the cost of and for the account of Tenant.  Landlord shall not be responsible for the care or safekeeping of such property, whether in transport, storage or otherwise.  Tenantwaives any and all claim against Landlord for loss, destruction and/or damage or injury which may be occasioned by any of the aforesaid acts.  Tenant shall be liable to Landlord for costs incurred by Landlord in connection with any storage, transport or other acts anticipated in this Section 16.02 and shall hold harmless and indemnify Landlord from all loss, damage, cost, expenses and liability in connection therewith.    No re-entry or taking possession of the Premises by Landlordshall be construed as an election on Landlord's part to terminate this Lease unless a written notice of such intention is given to Tenant.  Notwithstanding any such re-letting without termination, Landlord may at all times thereafter elect to terminate this Lease for such previous default.  Any such re-entry shall be allowed by |
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|   |   | Tenant without hindrance, and Landlord shall not be liable in damages for any such re-entry, or guilty of trespass or forcible entry; and |
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|   | (viii) | Pursuant to section 11.03 Landlord acknowledges that Tenant has not granted Landlord any lien or security interest in any of Teltronics Personal Property and such property is free and clear of any and all claims of Landlord under this Lease or otherwise, whether in law, contract or equity. |
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|   | (ix) | The remedies described in this Article XVI are cumulative and in addition to and without waiver of all remedies allowed Landlord by this Lease or by case law, common law and statute now or hereinafter in effect.  Tenant agrees that the rights and remedies granted Landlord in this Article XVI are commercially reasonable. |
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| Section 16.07 | Landlord’s Default. |
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| Signed, sealed and deliveredin the presence of:       |   |  Landlord:          | Gulfcoast Property No. 1, LLC, aFlorida limited liability company, |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------------------------------------------------------------|
|                                                                                |   |                                    |                                                               |
|                                                                                |   |  By:      |  /s/ Hugh D. Miller                                           |
|                                                                                |   |                                    |  Hugh D. Miller                                               |
|                                                                                |   |  Its:                              | Managing Member                                               |
|                                                                                |   |                                    |                                                               |
|  /s/ Timothy A. Knowles                                                        |   |                                    |                                                               |
|  Print Name:  TIMOTHY A. KNOWLES                                          |   |                                    |                                                               |
|                                                                                |   |                                    |                                                               |
|  /s/ Steven W. Prouty                                                          |   |                                    |                                                               |
|  Print Name:  STEVEN W. PROUTY                                            |   |                                    |                                                               |
|                                                                                |   |                                    |                                                               |
|  (As to Landlord)                                                              |   |                                    |                                                               |

|                                       |   |  Tenant:            | TELTRONICS, INC., a Delawarecorporation |
|--------------------------------------------|--------|-----------------------------------------|-----------------------------------------|
|                                       |   |                                    |                                    |
|                                       |   |  By:      |  /s/ Ewen Cameron                  |
|                                       |   |                                    |  Ewen Cameron                      |
|                                       |   |  Its:                              | President & CEO                |
|                                       |   |                                    |                                    |
|  /s/ Timothy A. Knowles               |   |                                    |                                    |
|  Print Name:  TIMOTHY A. KNOWLES |   |                                    |                                    |
|                                       |   |                                    |                                    |
|  /s/ Steven W. Prouty                 |   |                                    |                                    |
|  Print Name:  STEVEN W. PROUTY   |   |                                    |                                    |
|                                       |   |                                    |                                    |
|  (As to Tenant)                       |   |                                    |                                    |

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| Base Rent = | actual Premises Operating Expenses initially estimated to be $11,144.65 per month (subject to annual true-up as provided in Section 3.06 of the Lease) |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| From September 1, 2009 through December 31, 2009 |
|--------------------------------------------------|

| Base Rent = | actual Premises Operating Expenses of $11,144.65 per month plus Landlord’s actual mortgage payment estimated to be $20,228.00 per month for a total of $31,372.65, per month (subject to annual true-up as provided in Section 3.06 of the Lease) |
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| From and after January 1, 2010 |
|--------------------------------|

| ANNUAL BASE RENT |
|------------------|

| Lease Year(s) | Existing Building(51,520 sq. ft.)Base Rent | Expansion(17,500 sq. ft.*)Base Rent |
|---------------|--------------------------------------------|-------------------------------------|

|   1 (Jan. 1, 2010 – Dec. 31, 2010)  | $373,520.00($7.25 per sq. ft.)                                                                                                                                                                            | $105,000.00**($6.00 per sq. ft.)                             |
|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|   2 (Jan. 1, 2011 – Dec. 31, 2011)  | $373.520.00($7.25 per sq. ft.)                                                                                                                                                                            | $105,000.00($6.00 per sq. ft.)                               |
|   3 (Jan. 1, 2012 – Dec. 31, 2012)  | $396,119.00($7.69 per sq. ft.)                                                                                                                                                                            | $109,375.00($6.25 per sq. ft.)                               |
|   4 (Jan. 1, 2013 – Dec. 31, 2013)  | Year 3 Base Rent increased byCPI under Section 1.10(h)                                                                                                                                                    | Year 3 Base Rent increased byCPI under Section 1.10(h)       |
|   5 (Jan. 1, 2014 – Dec. 31, 2014)  | Year 4 Base Rent increased byCPI under Section 1.10(h)                                                                                                                                                    | Year 4 Base Rent increased byCPI under Section 1.10(h)  |
|   6. (Jan. 1, 2015 – Dec. 31, 2015)      | Year 5 Existing Building Base Rent on an annual per sq. ft. basis increased by CPImultiplied by the total area of theexisting Building and theExpansion  (if the Expansionwas constructed) ***  |  N/A                                                    |
|   7 – 15 Commencing Jan. 1, 2016    | Prior Year Base Rent increased by CPI under Section 1.01(h)                                                                                                                                                    | N/A                                                          |

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