| Date                                                                                          | Installment Amount |
|-----------------------------------------------------------------------------------------------|--------------------|
| July 1, 2007 and the first day of each month thereafter through and including October 1, 2010 | $97,366.67         |
| February 1, 2011 and the first day of each month thereafter                                   | $116,855.00        |

| Required Amount | Applicable Period                       |
|-----------------|-----------------------------------------|
| Not Applicable  | For the 12 month period ending 10/31/10 |
| Not Applicable  | For the 12 month period ending 11/30/10 |
| Not Applicable  | For the 12 month period ending 12/31/10 |

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| Required Amount | Period Ending                         |
|-----------------|---------------------------------------|
| $200,000        | For the 2 week period ending 11/26/10 |
| $1,000,000      | For the 4 week period ending 12/10/10 |
| $1,950,000      | For the 6 week period ending 12/24/10 |
| $2,150,000      | For the 8 month period ending 1/7/10  |
| $2,300,000      | For the 10 week period ending 1/21/11 |

| Week Ending       | Collection Period                           |
|-------------------|---------------------------------------------|
| November 19, 2010 | For the immediately preceding 55 day period |
| November 26, 2010 | For the immediately preceding 55 day period |
| December 3, 2010  | For the immediately preceding 65 day period |
| December 12, 2010 | For the immediately preceding 65 day period |
| December 17, 2010 | For the immediately preceding 65 day period |

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| December 24, 2010                            | For the immediately preceding 65 day period |
|----------------------------------------------|---------------------------------------------|
| December 31, 2010                            | For the immediately preceding 65 day period |
| January 7, 2010                              | For the immediately preceding 55 day period |
| January 14, 2010 and for each day thereafter | For the immediately preceding 55 day period |

|   | “Total Billings” mean, with respect to any period of measurement, Borrower’s consolidated total Accounts invoiced during such period. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | TELTRONICS, INC.,a Delaware corporation                                                         |                                    |
|--------|-------------------------------------------------------------------------------------------------|-----------------------------------------|
|   |                                                                                            |                                    |   |
|   | By:                                                                                             | /s/ Ewen R. Cameron                     |   |
|   | Name:                                                                                           |  Ewen R. Cameron    |   |
|   | Title:                                                                                          |  President & CEO               |   |
|   |                                                                                            |                                    |   |
|   |                                                                                            |                                    |   |
|   | WELLS FARGO CAPITAL FINANCE, INC.,a California corporation,as Agent, Lender and Required Lender |                                    |
|   |                                                                                            |                                    |   |
|   | By:                                                                                        |  /s/Tiffany Ormon             |   |
|   | Name:                                                                                           |  Tiffany Ormon      |   |
|   | Title:                                                                                          |  Director                          |   |

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