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

| Required Amount | Applicable Period                      |
|-----------------|----------------------------------------|
| $4,218,000      | For the 12 month period ending 5/31/10 |
| $2,750,000      | For the 12 month period ending 6/30/10 |
| $1,850,000      | For the 12 month period ending 7/31/10 |

----

| $900,000 | For the 12 month period ending 8/31/10  |
|----------|-----------------------------------------|
| $200,000 | For the 12 month period ending 9/30/10  |
| $100,000 | For the 12 month period ending 10/31/10 |
| $100,000 | For the 12 month period ending 11/30/10 |
| $100,000 | For the 12 month period ending 12/31/10 |

| Applicable Ratio | Month Ending                            |
|------------------|-----------------------------------------|
| Not Applicable   | For the 12 month period ending 5/31/10  |
| Not Applicable   | For the 12 month period ending 6/30/10  |
| Not Applicable   | For the 12 month period ending 7/31/10  |
| Not Applicable   | For the 12 month period ending 8/31/10  |
| Not Applicable   | For the 12 month period ending 9/30/10  |
| 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 |

| Required Amount | Month Ending                          |
|-----------------|---------------------------------------|
| $10,300,000     | For the 5 month period ending 5/31/10 |
| $12,000,000     | For the 6 month period ending 6/30/10 |
| $15,250,000     | For the 7 month period ending 7/31/10 |
| $17,000,000     | For the 8 month period ending 8/31/10 |

----

| $18,500,000 | For the 9 month period ending 9/30/10   |
|-------------|-----------------------------------------|
| $20,000,000 | For the 10 month period ending 10/31/10 |
| $22,250,000 | For the 11 month period ending 11/30/10 |
| $24,000,000 | For the 12 month period ending 12/31/10 |

----

----

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|    | TELTRONICS, INC.,a Delaware corporation                                               |
|--------------|-------------------------------------------------------------------------------------------------|
|         | By:                                                                                             | /s/ Angela L. Marvin |
|         | Name:                                                                                           | Angela L. Marvin |
|         | Title:                                                                                          | CFO |
|         |                                                                                  |   |
|         | 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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