|Exhibit 10

SECOND AMENDMENT TOLOAN
AND SECURITY AGREEMENT




THIS
SECOND AMENDMENT TO LOAN AGREEMENT AND LOAN DOCUMENTS (Amendment) dated as of
the 9th day of September, 2003, is made and entered into on the terms and conditions
hereinafter set forth, by and between TELTRONICS, INC., a Delaware corporation
Borrower) and FINOVA MEZZANINE CAPITAL INC., a Tennessee corporation f/k/a
Sirrom Capital Corporation (Lender).



RECITALS:


WHEREAS,
Lender has previously made a term loan to Borrowers in the original principal amount of
One Million Two Hundred Eighty Thousand and No/100ths Dollars ($1,280,000) (the
Loan) on the terms and conditions set forth in that certain Loan and Security
Agreement dated February 25, 1998 and that certain First Amendment to Loan and Security
Agreement dated September 30, 2002, by and between Lender and Borrowers (the Loan and
Security Agreement as now or hereafter amended, is hereinafter referred to as the
Loan Agreement) of which $304,380.81 is outstanding under the Fourth Amended
and Restated Secured Promissory Note dated September 30, 2002.


WHEREAS,
the current payment terms are as set forth in the Fourth Amended and Restated Secured
Promissory Note dated September 30, 2002 in the principal amount of $830,964.25 (the
Note); and


WHEREAS,
the Loan is further evidenced and secured by certain agreements, documents and instruments
as more particularly described in the Loan Agreement and defined therein as the Loan
Documents; and


WHEREAS,
the parties desire to amend and restate the Note and amend certain portions of the Loan
Agreement; and


WHEREAS,
this Amendment shall amend the Loan Documents.



AGREEMENT:


NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrowers and Lender hereby
agree as follows:



     1.       
          Capitalized terms used herein but not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement.



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|2.       
          The first sentence of Section 1.1 of the Agreement is hereby amended to
          read in its entirety as follows:
|--------------------------------------------------------------------------------------------------------------------------------------

| | The
Loan shall be evidenced by a Fifth Amended and Restated Secured Promissory Note (the
Note) in the original principal amount of Three Hundred Four Thousand Three
Hundred Eighty and 81/100th Dollars ($304,380.81), dated September 9, 2003, executed by
Borrowers in favor of Lender. All references to the Note hereunder shall refer to the
Note.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.       
          Section 4.16 of the Agreement is hereby amended to read in its entirety as
          follows:
|-----------------------------------------------------------------------------------------------------------------

| | Section 4.16   Mergers, Consolidations and Sales of Assets.
| | -----------------------------------------------------------

| | (a)     Without the prior
written consent of Lender, no Borrower will consolidate with or be a
party to a merger or share exchange with any other corporation or (2)
 sell, lease or otherwise dispose of all or any substantial part (as
defined in paragraph (c) of this Section 4.16) of the assets of such
Borrower.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)     Without the prior written consent of Lender, no Borrower will sell, transfer or
 otherwise dispose of any shares of stock in any Subsidiary or any
indebtedness or substantial part of any assets of any Subsidiary, and
will not permit any Subsidiary to sell, transfer or otherwise dispose
of (except to Teltronics or a wholly-owned Subsidiary of Teltronics)
any shares of stock or any indebtedness or substantial part of any
assets of any other Subsidiary, unless all of the following conditions are met:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | simultaneously with such sale, transfer or disposition, all shares of stock and
          any indebtedness or assets of such Subsidiary at the time owned by Teltronics
          and by every other Subsidiary shall be sold, transferred or disposed of as an
          entirety;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the Board of Directors of Teltronics shall have determined, as evidenced by a
          resolution thereof, that the retention of such stock and indebtedness or assets
          is not longer in the best interests of Teltronics;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | such stock and Indebtedness is sold, transferred or otherwise disposed of to a
          person, for a cash consideration and on terms reasonably deemed by the Board of
          Directors of Teltronics to be adequate and satisfactory;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | the Subsidiary being disposed of shall not have any continuing investment in
          Teltronics or any other Subsidiary not being simultaneously disposed of; and
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (v) | such sale or other disposition does not involve a substantial part (as
          hereinafter defined) of the assets of Teltronics and its Subsidiaries taken as a
          whole.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | The proceeds of any such sale relating to 36371 Yukon Corp shall be used to
          retire the indebtedness of such Subsidiary to Tri Links, Inc.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               As used in this Section 4.16, a sale, lease or other disposition of assets shall
               be deemed to be a substantial part of the assets of a Borrower only
               if the book value of such assets, when added to the book value of all other
               assets, sold, leased or otherwise disposed of by all other Borrowers (other than
               in the ordinary course of business) during the same twelve month period ending
               on the date of such sale, lease or other disposition, exceeds 15% of the
               consolidated net tangible assets of all Borrowers determined as of the end of
               the immediately preceding fiscal year.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.       
          Borrower hereby represent and warrant to Lender that all of the representations
          made in Section 2 of the Loan Agreement are true and correct as of the date
          hereof, except as modified or supplemented by Schedule A attached
          hereto and incorporated herein by this reference.


     5.       
          To the best knowledge of Borrower, Borrower hereby represents and warrants to
          Lender that the address(es) set forth on Schedule B attached hereto and
          incorporated herein by this reference is the principal place of Borrowers
          business and the location of all tangible collateral and the place where the
          records concerning all intangible collateral are kept and/or maintained.


     6.       
          Borrower shall pay to Lender a processing fee of $15,000 and all expenses of
          Lender incurred in connection with the extension of the maturity date on the
          closing of this Amendment.



     7.       
          If, at any time while the Loan remains outstanding, Borrower sells or otherwise
          issues any shares of its capital stock or any other of its equity securities
          (Equity Financing), Borrower shall remit a principal payment under
          the Loan equal to outstanding principal balance of the Loan if gross cash
          proceeds to Borrower from the Equity Financing are in excess of the outstanding
          principal balance of the Loan.


     8.       
          The obligation of Lender to execute this Amendment and agree to the provisions
          hereof is subject to Borrowers delivery to Lender of each of the following:
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| | (a) | a Fifth Amended and Restated Secured Promissory Note executed by Borrowers,
                    substantially in the form of Exhibit B attached hereto;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Receipt by Lender of the principal and interest payment of $55,000 that was due           August
1, 2003.
| | --- | ---------------------------------------------------------------------------------------------------------

|9.       
          Borrower warrants and represents that (a) the Loan Documents are valid, binding
          and enforceable against Borrower according to their terms, subject to principles
          of equity and laws applicable to the rights of creditors generally, including
          bankruptcy laws, (b) no default or Event of

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Default presently exists under the
          Loan Documents and no condition presently exists which, with the giving of
          notice, the passing of time, or both, would cause such a default or Event of
          Default. Borrower further acknowledges that Borrowers obligations
          evidenced by the Loan Documents are not subject to any counterclaim, defense or
          right of setoff, and Borrower hereby releases Lender from any claim, known or
          unknown, that Borrower may have against Lender as of the execution of this
          Amendment.


     10.       
          The terms Loan Document and Loan Documents as defined in
          the Loan Agreement are amended to include this Amendment.


     31.       
          This Amendment may be executed in any number of counterparts and by different
          parties to this Amendment in separate counterparts, each of which when so
          executed shall be deemed to be an original and all of which taken together shall
          constitute one and the same Amendment.


     42.       
          Except as modified and amended hereby, the Loan Documents shall remain in full
          force and effect.


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IN
WITNESS WHEREOF, the parties hereto have executed this Amendment, or have caused this
Amendment to be executed by their duly authorized officers, as of the day and year first
above written.
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|BORROWER:TELTRONICS, INC.                                | LENDER:FINOVA MEZZANINE CAPITAL INC.
|-------------------------------------------------------- | ------------------------------------
|By:/s/ Patrick G. Min
Title:Vice President Finance & CFO | By:/s/ Philip S. Clark
Title:V.P.   

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|$304,380.81 | September 9th, 2003
|----------- | -------------------

|FIFTH AMENDED AND
RESTATEDSECURED PROMISSORY NOTE



FOR
VALUE RECEIVED, the undersigned, TELTRONICS, INC., a Delaware corporation
(Maker), promise to pay to the order of FINOVA MEZZANINE CAPITAL, INC., a
Tennessee corporation f/k/a SIRROM CAPITAL CORPORATION, d/b/a Tandem Capital, Inc.,
(Payee and, together with any subsequent holder(s) hereof,
Holder),500 Church Street, Suite 200, Nashville, TN 37219,or
at such other place as Holder may designate to Maker in writing from time to time, or at
such other place as Holder may designate to Maker in writing from time to time, on
February 1, 2004 (the Maturity Date), the principal sum of THREE HUNDRED FOUR
THOUSAND THREE HUNDRED EIGHTY and 81/100 DOLLARS ($304,380.81), together with interest on
the outstanding principal balance hereof from the date of each advance at the rate of
fourteen percent (14%) per annum computed on the basis of a 360-day year.


Maker
shall make a payment of $55,000 per month beginning September 1, 2003 and due the
1st of each successive month which shall be applied first to the outstanding
interest and then outstanding principal until February 1, 2004 (the Maturity
Date) at which time all outstanding principal and interest shall be paid in full.


The
indebtedness evidenced hereby may be prepaid in whole or in part at any time and from time
to time, without penalty. Any such prepayments shall be credited first to any accrued and
unpaid interest and then to the outstanding principal balance hereof.


Time
is of the essence under this Amended and Restated Note (the Note).


This is
the Note referenced in, and issued pursuant to, the Loan and Security Agreement dated
February 25, 1998 and that First Amendment to Loan and Security Agreement dated September
30, 2002, between the Maker and the Payee and that Second Amendment to Loan and Security
Agreement dated September 9, 2003 (as amended, supplemented or otherwise modified from
time to time, the Loan Agreement). The Loan Agreement is hereby amended as
necessary to make it consistent with the amendments contained herein. The indebtedness
evidenced by this Note was incurred pursuant to, and is governed and secured by the Loan
Agreement and the other Loan Documents defined and referenced therein.
Reference is made to the Loan Agreement for a description of the terms and conditions
governing this Note and the indebtedness evidenced hereby, including but not limited to
the circumstances under which the indebtedness evidenced by this Note may be declared, or
may automatically become, immediately due and payable prior to the Maturity Date.


To
the extent permitted by applicable law, upon the occurrence of any Event of Default (as
such term is defined in the Loan Agreement), at the option of Holder and without notice to
Maker, all overdue interest, if any, shall be added to the outstanding principal balance
hereof, and the entire


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outstanding principal balance, as so adjusted, shall bear interest
thereafter until paid at an annual rate equal to the otherwise then-applicable interest
rate plus an additional two percent (2%) per annum (computed on he basis of a 360-day
year).


If
this Note is placed in the hands of an attorney for collection or for enforcement or
protection of the security, or if Holder incurs any costs incident to the collection of
the indebtedness evidenced hereby or the enforcement or protection of the security, Maker
and any endorsers hereof agree to pay to Holder an amount equal to all such costs,
including, without limitation, all reasonable attorneys fees and all court costs.


Presentment
for payment, demand, protest and notice of demand, protest and nonpayment are hereby
waived by maker and all other parties hereto. No failure to accelerate the indebtedness
evidenced hereby by reason of default hereunder acceptance of a past-due installment or
other indulgences granted form time to time, shall be construed as a novation of this Note
or as a waiver of such right of acceleration or of the right of Holder thereafter to
insist upon strict compliance with the terms of this Note or to prevent the exercise of
such right of acceleration or any other right granted hereunder or by applicable laws. No
extension of the time for payment of the indebtedness evidenced hereby or any installment
due hereunder made by agreement with any person now or hereafter liable of payment of the
indebtedness evidenced hereby, shall operate to release, discharge, modify, change or
affect the original liability of Maker hereunder or that of any other person now or
hereafter liable for payment of the indebtedness evidenced hereby, either in whole or in
part, unless Holder agrees otherwise in writing. This Note may not be changed orally, but
only by an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought.


All
interest accruing under this Note is subject to the terms of Section 8.7 of the Loan
Agreement. Without limitation to the foregoing, all agreements herein made are expressly
limited so that in no event whatsoever, whether by reason of advancement of proceeds
hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the
amount paid or agreed to be paid to Holder for the use of the money advanced or to be
advanced hereunder exceed the maximum amounts collective under applicable laws in effect
from time to time (the Maximum Rate). If, from any circumstances whatsoever,
the fulfillment of any provision of this Note or any other agreement or instrument now or
hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby
shall involve the payment of interest in excess of said Maximum Rate, then ipso
facto, the obligation to pay interest hereunder shall be reduced to said Maximum Rate;
and if from any circumstance whatsoever, Holder shall ever receive interest, the amount of
which would exceed the amount collectible at said Maximum Rate, such amount as would be
excessive interest shall be applied to the reduction of the principal balance regaining
unpaid hereunder and not to the payment of interest. This provision shall control every
other provision in any and all other agreements and instruments existing or hereafter
arising between Maker and Holder with respect to the indebtedness evidenced hereby.


This
Note shall be construed and enforced under the internal laws of the State of Tennessee,
without reference to the conflict of laws principles thereof.


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Maker
hereby irrevocably consents to the jurisdiction of any state or federal courts sitting in
Davidson County, Tennessee, for the purpose of any litigation to which Holder may be a
party and which concerns this Note or the indebtedness evidenced hereby. It is further
agreed that venue for any such action shall lie exclusively with courts sitting in
Davidson County, Tennessee unless Holder agrees to the contrary in writing.


As
used herein, the terms Maker and Holder shall be deemed to include
their respective successors, legal representatives and assigns, whether by voluntary
action of the parties or by operation of law.


This
Note is executed, in part, in renewal, amendment, restatement and modification of, but not
in novation or discharge of, the existing obligations and indebtedness of Maker to Payee
as evidenced by that Fourth Amended and Restated Secured Promissory Note executed and
delivered in favor of Payee by Maker on September 30, 2002.


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[SIGNATURE
PAGE TO FIFTH AMENDED AND RESTATED SECUREDPROMISSORY NOTE ($304,380.81)]
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| | MAKER:TELTRONICS, INC.
By:  /s/ Patrick G. Min
Name:  Patrick G. Min
Its:  VP Finance & CFO
| | -------------------------------------------------------------------------------------------

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