Document:

Exhibit 10.3 Pledge Agreement

    Exhibit
      3

    

    PLEDGE
      AGREEMENT

    

    

    THIS
      PLEDGE AGREEMENT (this “Agreement”),
      dated
      March 29, 2007, is made by and between IHL
      INVESTMENTS, LLC,
      a
      Delaware limited liability company (“Pledgor”),
      in
      favor of HARRIS
      CORPORATION,
      a
      Delaware corporation (“Pledgee”).

     

    W I T N E S S E T H:

     

    WHEREAS,
      Pledgor, pursuant to a certain Stock Purchase Agreement of even date herewith
      (the “Stock
      Purchase Agreement”)
      by and
      among Pledgor and Pledgee, is purchasing FORTY THOUSAND (40,000) shares of
      Series C Preferred stock, par value $0.001 in Teltronics, Inc., a Delaware
      corporation (“Teltronics”)
      (the
“Series C Stock”);

     

    WHEREAS,
      Pledgor has executed a certain Secured Promissory Note of even date herewith,
      in
      the principal amount of $400,000 (as amended, supplemented or modified from
      time
      to time, the “Note”);

     

    WHEREAS,
      Pledgor acknowledges that, by reason of the foregoing, it will receive
      substantial economic and other benefits from Pledgee and acknowledges that
      without this Agreement, Pledgee would be unwilling to accept the Note;
      and

     

    WHEREAS,
      as consideration for the execution of this Agreement by the Pledgee, and to
      further secure the obligations of the Pledgee under the Note, Pledgor agrees
      to
      pledge and grant to Pledgee a security interest in (i)10,000 shares of the
      Series C Stock (the “Stock”), (ii) any other interest in Teltronics now owned or
      hereafter acquired by Pledgor, and (iii) Distributions (as defined below)
      to Pledgor of or from Teltronics (each, a “Pledged
      Interest”
and,
      collectively, the “Pledged
      Interests”).
      

     

    NOW
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein, and for other good and valuable consideration, the receipt and
      sufficiency whereof are hereby acknowledged, the parties hereto hereby covenant
      and agree as follows:

     

    Section
      1.    Pledge.

     

    (a)    Pledgor
      hereby pledges, assigns, hypothecates, delivers, sets over and grants to Pledgee
      a lien on and first priority security interest in and to all right, title and
      interest of Pledgor in the Pledged Interests, any certificates, instruments
      or
      documents representing the same, all options and other rights, contractual
      or
      otherwise, in respect thereof (including, without limitation, any registration
      rights) and all dividends, distributions, liquidation proceeds, cash,
      instruments and other property (including, without limitation, additional stock
      or securities distributed in respect of any Pledged Interests by way of stock
      splits, spin-offs, reclassification, combination, consolidation, merger or
      similar arrangement) to which Pledgor is entitled with respect to the Pledged
      Interests, whether or not received by or otherwise distributed to Pledgor,
      whether such dividends, distributions, liquidation proceeds, cash, instruments
      and other property are paid or distributed by Teltronics in respect of operating
      profits, sales, exchanges, refinancing,

     

    
      
        
        

      

      
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condemnations
        or insured losses of the assets of Teltronics, the liquidation of Teltronics’
assets and affairs, management fees, guaranteed payments, repayment of loans,
        reimbursement of expenses or otherwise (collectively, the “Distributions”)
        in
        respect of or in exchange for any or all of the Pledged Interests, and Pledgor’s
        rights, remedies and benefits under the Organizational Documents of Teltronics,
        all rights and powers of Pledgor arising under the Organizational Documents
        of
        Teltronics or under law, including, without limitation, all rights of Pledgor
        to
        vote on any matter specified therein or under law; all rights of Pledgor
        to
        cause an assignee to be substituted as shareholder, in Teltronics in the
        place
        and stead of Pledgor; all rights, remedies, powers, privileges, security
        interests, liens, and claims of Pledgor for damages arising out of or for
        breach
        of or default under the Organizational Documents of Teltronics; all rights
        of
        Pledgor to access to the books and records of Teltronics and to other
        information concerning or affecting Teltronics. The security interests, rights,
        remedies and benefits of Pledgee granted by this Section 1(a)
        and all
        proceeds thereof are hereinafter collectively referred to as the “Pledged
        Collateral.”
        Pledgor irrevocably and unconditionally waives all rights, if any, which
        may
        exist in its favor to purchase or acquire any of the Pledged Collateral to
        the
        extent the same may arise as a result of the pledge thereof effected hereby,
        or
        the acquisition or disposition thereof by Pledgee or any other Person pursuant
        to the rights and remedies afforded Pledgee hereunder or any exercise thereof.
        “Organizational
        Documents”
shall
        mean with respect to Teltronics, its Certificate of Incorporation and Bylaws,
        and with respect to Pledgor, its Certificate of Organization and Operating
        Agreement and any exhibits or schedules thereto (as amended, supplemented
        or
        modified from time to time).

    

     

    (b)    Concurrently
      herewith, Pledgor is receiving and will cause delivery to Pledgee an
“Agreement
      and Acknowledgment of Pledge”
in
      substantially in the form of Exhibit A
      hereto
      duly executed and delivered by Teltronics.

     

    Section
      2.    Security
      for Obligations.
      This
      Agreement secures (i) the full and prompt payment when due, whether at the
      respective stated maturity dates, by acceleration or otherwise, of all
      obligations and any other amounts due or to become due under the Note, whether
      for principal, interest, fees, expenses or otherwise, (ii) any and all
      obligations of Pledgor now or hereafter existing under this Agreement, and
      (iii)
      any and all other obligations of Pledgor to Pledgee now or hereafter existing
      (all such obligations being hereinafter collectively referred to as the
“Obligations”).

     

    Section
      3.    Delivery
      of Pledged Collateral. 

     

    (a) Concurrent
      with this Agreement: (i) the Pledged Interests shall be delivered, transferred
      to or placed under the control of the Pledgee by Pledgor by certificates,
      instruments, or other documents now or hereafter representing or evidencing
      the
      Pledged Collateral (“Certificates”)
      and, as
      appropriate, shall be accompanied by duly executed instruments of transfer
      or
      assignment in blank, all in form and substance reasonably satisfactory to
      Pledgee; (ii) Pledgor shall deliver to Pledgee such Uniform Commercial Code
      financing statements, executed by Pledgor and in a form ready for filing, as
      may
      be necessary or desirable to perfect and/or evidence the security interests
      in
      the Pledged Collateral granted to Pledgee pursuant to this Agreement; and
      (iii) Pledgor shall deliver satisfactory evidence to Pledgee in its sole
      discretion that all other filings, recordings, registrations and other actions
      Pledgee deems necessary or desirable to establish, preserve and perfect the
      security interests and other rights granted to Pledgee pursuant to this
      Agreement shall have been made.

     

     

    
      
        
        

      

      
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    (b)    If
      Pledgor shall acquire (by purchase, Distribution or otherwise) any additional
      securities or ownership interest of any kind or nature in, or rights to
      Distributions from, or relating to, Teltronics (collectively, “Securities”)
      at any
      time or from time to time after the date hereof, Pledgor will forthwith pledge
      and deliver such Securities (and all certificates or instruments representing
      such Securities) as collateral with Pledgee and deliver to Pledgee the other
      documents and evidence described in the preceding Section 3(a) to effect any
      transfer thereof as required hereby, together with a certificate executed by
      Pledgor describing such Securities and certifying that the same have been duly
      pledged with Pledgee hereunder.

     

    (c)    If
      Pledgor shall come into possession of any Distribution, including any dividends,
      distributions, liquidation proceeds, cash or other property paid or distributed
      with respect to the Stock at any time or from time to time after the date
      hereof, Pledgor shall surrender such Distributions to Pledgee who may apply
      any
      such Distributions to any portion of the Obligations then due or hold such
      Distributions as part of the Pledged Collateral. 

     

    (d)    Pledgee
      shall have the right to appoint one or more agents for the purpose of retaining
      physical possession of any of the Pledged Collateral, which may be held (in
      the
      discretion of Pledgee) in the name of Pledgor, or endorsed or assigned in blank
      or in favor of Pledgee or any nominee or nominees of Pledgee or any agent
      appointed by Pledgee in accordance herewith.

     

    Section
      4.    Voting
      Power, Etc.
      Notwithstanding anything to the contrary contained in Section 1
      hereof,
      provided that no Event of Default (as hereinafter defined) shall have occurred
      and be continuing, but subject in all respects to the terms, conditions,
      prohibitions or limitations on the actions of Pledgor as a shareholder of
      Teltronics provided in the Organizational Documents of Teltronics, Pledgor
      shall
      be entitled to exercise all voting, consensual and other powers of ownership
      pertaining to the Pledged Collateral (including, without limitation, to make
      determinations, to exercise any election (including, without limitation,
      election of remedies) or option, and to give or receive any notice, consent,
      amendment, waiver, approval or other rights described in Section 1
      hereof),
provided
      that no
      ratification shall be given, nor any power pertaining to the Pledged Collateral
      exercised, nor any other action taken, which would violate or be inconsistent
      with the terms of this Agreement or which would have the effect of impairing
      the
      position or interests of Pledgee, or, in each case, in such a manner as would
      reasonably be expected to have an adverse effect on the ability of Pledgor
      to
      perform its obligations hereunder. If any of the foregoing rights are exercised
      by Pledgor, Pledgor shall promptly give written notice to Pledgee of its
      exercise of such right. Upon the occurrence of any Event of Default and for
      so
      long as such Event of Default is continuing, Pledgee shall have the sole and
      exclusive right to exercise all voting, consensual and other powers of ownership
      pertaining to the Pledged Collateral.

     

    Section
      5.    No
      Assumption.
      Notwithstanding anything contained herein to the contrary, whether or not an
      Event of Default shall have occurred, and whether or not Pledgee elects to
      foreclose or otherwise realize on its security interest in the Pledged
      Collateral as set forth herein or exercise any of its rights under this
      Agreement or otherwise, neither this Agreement, receipt by Pledgee of any
      Distributions, the foreclosure or other realization by Pledgee of the security
      interest in the Pledged Collateral nor any exercise by Pledgee of any of its
      rights under this Agreement or otherwise, shall in any way be deemed to obligate
      Pledgee to assume any of Pledgor’s obligations, duties, expenses or liabilities
      with respect to the Pledged Collateral or any agreement relating

     

    
      
        
        

      

      
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thereto,
        and in the event of any such foreclosure, realization or other exercise of
        rights, Pledgor shall remain bound and obligated to perform such obligations
        and
        Pledgee shall not be deemed to have assumed any of such
        obligations.

    

     

    Section
      6.    Events
      of Default.
      The
      occurrence of any of the following events shall constitute an “Event
      of Default”
under
      this Agreement: (a) Pledgor shall at any time fail timely to perform or comply
      with any provision of this Agreement after Pledgor actually obtains knowledge
      of
      such default or after notice of such default and a cure period of ten (10)
      days
      during which to cure such default; (b) any of the representations or
      warranties made by Pledgor in this Agreement shall be, or at any time shall
      become, false or inaccurate in any material respect after Pledgor actually
      obtains knowledge of such default or after notice of such default and a cure
      period of ten (10) days during which to cure such default; or (c) if there
      shall
      occur any Event of Default under the Note.

     

    Section
      7.    Representations,
      Warranties and Covenants.
      Pledgor
      represents and warrants to, and agrees with, Pledgee as follows:

     

    (a)    Pledgor
      is a duly formed limited liability company under the laws of the State of
      Delaware, validly existing and in good standing under the laws of the State
      of
      Delaware, and has full power and authority to execute and deliver to Pledgee
      this Agreement, to own its properties and to perform the obligations and carry
      out the duties imposed upon Pledgor by this Agreement. Pledgor is not required
      by applicable law to be authorized to do business in any other
      jurisdiction.

     

    (b)    Pledgor
      is, and at all times will be, the only record and beneficial owner of the
      Pledged Collateral. Pledgor will defend Pledgee’s right, title and interest in
      and to the Pledged Collateral pledged by it pursuant hereto against the claims
      and demands of any third party. The costs and expenses incurred by Pledgor
      to
      defend Pledgee’s rights, title and interests in and to the Pledged Collateral,
      shall be borne solely and exclusively by Pledgor.

     

    (c)    Pledgor’s
      rights to Distributions, if any, under the Organizational Documents of
      Teltronics are not subject to any defense, offset, counterclaim or contingency
      whatsoever. Giving effect to the aforesaid grants and pledges to Pledgee and
      the
      deliveries required hereunder, Pledgee has, as of the date of this Agreement,
      and, as to any Pledged Collateral acquired from time to time after such date,
      shall have, a valid, perfected and continuing first priority lien upon and
      security interest in the Pledged Collateral; provided,
      however,
      that no
      representation or warranty is made with respect to the perfected status of
      the
      security interest of Pledgee in the proceeds of the Pledged Collateral
      consisting of “cash proceeds” or “non-cash proceeds” as defined in the Uniform
      Commercial Code in effect in the State of Delaware (the “Code”).

     

    (d)    Pledgor
      agrees to pay, and to save Pledgee harmless from, any and all liabilities with
      respect to, or resulting from any delay in paying, any and all stamps, excise,
      sales or other taxes which may be payable or determined to be payable with
      respect to any of the Pledged Collateral or in connection with any of the
      transactions contemplated by this Agreement or the exercise by Pledgee of any
      right or remedy granted to it.

     

    
      
        
        

      

      
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    (e)    Pledgor
      shall not transfer any of the Pledged Collateral until payment or satisfaction
      in full of the Obligations.

     

    (f)    This
      Agreement and each provision herein has been duly authorized, executed and
      delivered by Pledgor and constitutes the legal, valid and binding obligation
      of
      Pledgor, enforceable against Pledgor in accordance with its terms.

     

    (g)    The
      principal place of business and chief executive office of Pledgor and the
      principal place where Pledgor’s records concerning the Pledged Collateral are
      kept, is the Pledgor’s address provided in this Agreement. Pledgor will not
      change such principal place of business or remove such records nor will Pledgor
      move its principal place of business from such address unless it shall provide
      Pledgee with at least thirty (30) days’ prior written notice thereof and there
      shall have been taken such action, satisfactory to Pledgee, as may be necessary
      to maintain the security interest of Pledgee hereunder at all times fully
      perfected and in full force and effect. Pledgor shall not change its name unless
      it shall have given Pledgee at least thirty (30) days’ prior written notice of
      any such proposed change and shall have taken such action, satisfactory to
      Pledgee, as may be necessary to maintain the security interest of Pledgee in
      the
      Pledged Collateral at all times fully perfected and in full force and
      effect.

     

    (h)    Pledgor
      has delivered to Pledgee true, correct and complete copies of all of the
      Organizational Documents of Pledgor, and Pledgor shall not permit or consent
      to
      any amendments thereto without the prior written consent of Pledgee. The
      Organizational Documents of Pledgor have been duly executed and delivered by
      Pledgor and the shareholders, directors, members, managers, officers,
      incorporators, or organizers, as the case may be, of Pledgor and constitute
      the
      legal, valid and binding obligations of such parties enforceable in accordance
      with their respective terms. Pledgor has the full power and authority to own
      its
      property and to carry on its business as now being conducted, and has the power
      and authority to execute and deliver and to perform its Obligations hereunder
      and under any of the other documents to which it is a party.

     

    The
      representations, warranties and covenants set forth in this Section 7
      shall
      survive the execution and delivery of this Agreement.

     

    Section
      8.    Further
      Assurances.
      Pledgor
      agrees that at any time and from time to time Pledgor will promptly execute
      and
      deliver all further instruments and documents, and take all further action,
      that
      may be reasonably necessary or desirable, or that Pledgee may request, in order
      to perfect and protect any security interest granted or purported to be granted
      or to enable Pledgee to exercise and enforce its rights and remedies hereunder
      with respect to any Pledged Collateral.

     

    Section
      9.     Distributions.
      

     

    (a)    Upon
      the
      occurrence and continuation of an Event of Default:

     

    (i)    All
      rights of Pledgor to receive Distributions and any and all proceeds from the
      sale or other disposition of the Pledged Collateral (or any portion thereof)
      which Pledgor would otherwise be authorized to receive and retain shall cease,
      and all such rights shall thereupon become vested in Pledgee, who shall
      thereupon have the sole right to receive and hold as Pledged Collateral such
      Distributions and proceeds.

     

    
      
        
        

      

      
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    (ii)    All
      Distributions and proceeds which are received by Pledgor contrary to the
      provisions of paragraph (a) of this Section 9
      shall be
      received in trust for the benefit of Pledgee, shall be segregated from other
      funds of Pledgor and shall be forthwith paid over to Pledgee as Pledged
      Collateral in the same form as so received (with any necessary
      endorsement).

     

    (iii)    All
      Distributions received by Pledgor in a partial or total liquidation of
      Teltronics shall, in the event that any of the Obligations remain outstanding
      at
      the time of such partial or total liquidation, be paid to Pledgee and applied
      by
      Pledgee to such outstanding Obligations. 

     

    Section
      10.    Transfers
      and Other Liens; Additional Interests.
      Pledgor
      agrees, so long as any of the Obligations are outstanding, not to:

     

    (a)    sell,
      transfer or otherwise dispose of, or grant any option or similar right with
      respect to, any of the Pledged Collateral; or

     

    (b)    create
      or
      permit to exist any lien, security interest or other charge or encumbrance
      upon
      or with respect to any of the Pledged Collateral; or

     

    (c)    sell,
      transfer or otherwise dispose of, or grant an option or similar right with
      respect to, the thirty thousand shares of Series C Preferred Stock not
      constituting the Pledged Collateral until the Note is fully paid.  

     

    Section
      11.    Appointment
      of Attorney-in-Fact.
      Pledgor
      hereby appoints Pledgee the attorney-in-fact for Pledgor, with full authority
      in
      the place and stead of Pledgor and in the name of Pledgor or otherwise, from
      time to time in Pledgee’s discretion to take any action and to execute any
      instrument which Pledgee may deem necessary or advisable to accomplish the
      purposes of this Agreement, including, without limitation, to receive, endorse
      and collect all Distributions and any instruments made payable to Pledgor
      representing any dividend, interest payment or other Distributions in respect
      of
      the Pledged Collateral or any part thereof and to give full discharge for the
      same. Pledgor agrees that the foregoing power constitutes a power coupled with
      an interest which may not be revoked and which shall survive until all of the
      Obligations shall have been indefeasibly paid in full and satisfied, provided
      that except with respect to the execution and filing of the Uniform Commercial
      Code Financing Statements, this paragraph shall not be effective until the
      occurrence of an Event of Default.

     

    Section
      12.    Pledgee
      to Perform.
      If
      Pledgor fails to perform any agreement contained herein, Pledgee may itself
      perform, or cause performance of, such agreement, and the expenses of Pledgee
      incurred in connection therewith shall be payable by Pledgor in accordance
      with
Section 17
      hereof.

     

    Section
      13.    Remedies
      Upon Default.
      Upon the
      occurrence of any Event of Default:

     

    (a)    Pledgee
      may, without any notice to Pledgor of the occurrence of such Event of Default,
      except as otherwise expressly required under the Note, exercise in respect
      of
      the Pledged Collateral, in addition to the other rights and remedies provided
      for herein or otherwise available to Pledgee, all the rights and remedies of
      a
      secured party under the Code in 

     

    
      
        
        

      

      
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effect
        at
        that time, and Pledgee may also, without notice except as specified below,
        sell
        the Pledged Collateral or any part thereof in one or more parcels at public
        or
        private sale, at any exchange, broker’s board or at any of Pledgee’s offices or
        elsewhere, for cash, on credit or for future delivery, and upon such other
        terms
        as Pledgee may deem commercially reasonable. Pledgor agrees that, to the
        extent
        notice of sale shall be required by law, at least ten (10) business days
        notice
        to Pledgor of the time and place of any public sale or the time after which
        any
        private sale is to be made shall constitute reasonable notification. Pledgee
        shall not be obligated to make any sale of Pledged Collateral regardless
        of
        notice of sale having been given. Pledgee may adjourn any public or private
        sale
        from time to time by announcement at the time and place fixed therefor, and
        such
        sale may, without further notice, be made at the time and place to which
        it was
        so adjourned.

    

     

    (b)    Pledgee
      may transfer all or any part of the Pledged Collateral into Pledgee’s name or
      the name of its nominee or nominees, by endorsing the Certificates.

     

    (c)    Pledgee
      may vote all or any part of the Pledged Collateral (whether or not transferred
      into the name of Pledgee) and give all consents, waivers and ratifications
      in
      respect of the Pledged Collateral and otherwise act with respect thereto as
      though it were the outright owner thereof (Pledgor hereby irrevocably
      constituting and appointing Pledgee the proxy and attorney-in-fact of Pledgor,
      with full power of substitution to do so).

     

    (d)    Any
      Pledged Collateral or proceeds thereof held by Pledgee as Pledged Collateral
      and
      all proceeds thereof received by Pledgee in respect of any sale of, collection
      from or other realization upon all or any part of the Pledged Collateral may,
      in
      the discretion of Pledgee, be held by Pledgee as collateral for, and/or then
      or
      at any time thereafter, be applied (after payment of any amounts payable to
      Pledgee pursuant to Section 17
      hereof),
      in whole or in part by Pledgee for the benefit of Pledgor, against all or any
      part of the Obligations and in such order as Pledgee shall elect. Any surplus
      of
      such Pledged Collateral or proceeds thereof held by Pledgee and remaining after
      payment or satisfaction in full of all of the Obligations and the expenses
      referred to in Section 17
      hereof
      shall be delivered or paid over to Pledgor or to whomsoever may be lawfully
      entitled to receive such surplus.

     

    (e)    Each
      right, power and remedy of Pledgee provided for in this Agreement or now or
      hereafter existing at law or in equity or by statute shall be cumulative and
      concurrent and shall be in addition to every other such right, power or remedy.
      The exercise or beginning of the exercise by Pledgee of any one or more of
      the
      rights, powers or remedies provided for in this Agreement now or hereafter
      existing at law or in equity or by statute or otherwise shall not preclude
      the
      simultaneous or later exercise by Pledgee of all such other rights, powers
      or
      remedies, and no failure or delay on the part of Pledgee to exercise any such
      right, power or remedy shall operate as a waiver thereof.

     

    Section
      14.    Jurisdiction,
      Venue, Service of Process.
      ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL BE BROUGHT,
      AT
      PLEDGEE’S OPTION, ONLY IN THE COURTS OF THE STATE OF FLORIDA, BREVARD COUNTY OR
      THE MIDDLE DISTRICT OF FLORIDA. PLEDGOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT
      OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION
      OF THE AFORESAID COURTS. PLEDGOR 

     

     

    
      
        
        

      

      
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IRREVOCABLY
        CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS
        IN
        ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED
        OR
        CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT ITS ADDRESS AS SET FORTH ABOVE.
        PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
        HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS
        ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN THE COURTS
        REFERRED TO ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO
        PLEAD
        OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN
        ANY
        SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING CONTAINED HEREIN
        SHALL AFFECT THE RIGHT OF PLEDGEE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
        BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST PLEDGOR
        IN
        ANY OTHER JURISDICTION.

    

     

    Section
      15.    Jury
      Trial Waiver.
      EACH OF
      PLEDGOR AND PLEDGEE HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
      ANY
      AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
      BASED
      ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY
      COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
      OR
      ACTIONS OF PLEDGOR OR PLEDGEE RELATING TO THE NOTE, AND THE LENDING RELATIONSHIP
      WHICH IS THE SUBJECT OF THIS PLEDGE AGREEMENT. THIS PROVISION IS A MATERIAL
      INDUCEMENT FOR PLEDGEE ENTERING INTO THIS AGREEMENT.

     

    Section
      16.     Indemnity.
      The
      Pledgor agrees to indemnify and hold harmless the Pledgee from and against
      any
      and all claims, demands, losses, judgments and liabilities (including
      liabilities for penalties) of whatsoever kind or nature, and to reimburse the
      Pledgee for all costs and expenses, including reasonable attorneys' fees,
      growing out of or resulting from this Agreement or the exercise by the Pledgee
      of any right or remedy granted to it hereunder; provided,
      that
      the Pledgor shall not be required to indemnify the Pledgee in respect of any
      claims, demands, losses, judgments, liabilities, costs or expenses arising
      from
      the gross negligence or willful misconduct of the Pledgee. In no event shall
      the
      Pledgee be liable, in the absence of gross negligence or willful misconduct
      on
      its part, for any matter or thing in connection with this Agreement other than
      to account for moneys actually received by it in accordance with the terms
      hereof. If and to the extent that the obligations of the Pledgor under this
      Section
      16
      are
      unenforceable for any reason, the Pledgor hereby agrees to make the maximum
      contribution to the payment and satisfaction of such obligations which is
      permissible under applicable law. Notwith-standing any other provision of this
      Agreement, the Pledgee shall not be liable hereunder for any action or failure
      to act hereunder, except to the extent of its gross negligence or willful
      misconduct.

     

    Section
      17.    Expenses.
      Upon
      demand, Pledgor will pay to Pledgee the amount of any and all expenses,
      including the reasonable fees and expenses of Pledgee’s counsel and of any
      experts and agents, which Pledgee may incur in connection with (i) the sale
      of,
      collection from, or other realization upon, any of the Pledged Collateral,
      (ii)
      the exercise or enforcement of any of Pledgee’s rights hereunder, or (iii) the
      failure by Pledgor to perform or observe any of the provisions
      hereof.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Section
      18. Amendments,
      Waivers, Etc.
      No
      amendment or waiver of any provision of this Agreement, nor consent to any
      departure by Pledgor herefrom, shall in any event be effective unless the same
      shall be in writing and signed by Pledgee, and then such waiver or consent
      shall
      be effective only in the specific instance and for the specific purpose for
      which given.

     

    Section
      19. Notices.
      All
      notices, demands, instructions and other communications required or permitted
      to
      be given to or made upon any party hereto shall be given in the manner specified
      in the Note, and at the address of each party hereto set forth below its
      signature on the signature page hereto. The parties hereto may change the
      address at which they are to receive notices hereunder by notice in writing
      in
      the foregoing manner to all parties.

     

    Section
      20. Continuing
      Security Interest; Transfer.
      This
      Agreement shall create a continuing security interest in the Pledged Collateral
      and shall (i) remain in full force and effect until the indefeasible payment
      or
      satisfaction in full of the Obligations, (ii) be binding upon Pledgor, its
      permitted transferees, representatives, successors and assigns, and (iii) inure,
      together with the rights and remedies of Pledgee hereunder, to the benefit
      of
      Pledgee and its permitted transferees, representatives, successors and assigns.
      Without limiting the generality of the foregoing clause (iii), Pledgee, but
      not
      Pledgor, may assign or otherwise transfer this Agreement together with the
      Pledged Collateral, the Note and any other Obligations to any other Persons
      to
      the extent permitted by the Note, and such other Persons shall thereupon become
      vested with all the benefits in respect thereof granted to Pledgee herein or
      otherwise. Upon the indefeasible payment or satisfaction in full of the
      Obligations, (x) Pledgor shall be entitled to the return, upon its request
      and
      at its expense, of such portion of the Pledged Collateral as shall not have
      been
      sold or otherwise applied or forfeited pursuant to the terms hereof, and (y)
      this Agreement shall be of no further force or effect except for the provisions
      of Sections 5, 12 and 16, which shall survive.

     

    Section
      21. Severability.
      If for
      any reason any provision or provisions hereof are determined to be invalid
      and
      contrary to any existing or future law, such invalidity shall not impair the
      operation of or affect those portions of this Agreement which are
      valid.

     

    Section
      22. Governing
      Law; Terms.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of Delaware (without giving effect to principles of conflicts
      of law). Unless otherwise defined herein, terms defined in the Code are used
      herein as therein defined.

     

    Section
      23. Recitals.
      The
      Recitals at the beginning of this Agreement are hereby incorporated into the
      substantive provisions of this Agreement.

     

    Section
      24. Counterparts.
      This
      Agreement may be executed in one or more counterparts (including by means of
      facsimile or other non-alterable electronic transmission), and it shall not
      be
      necessary that the signature of, or on behalf of, each party, or that the
      signatures of all persons required to bind any party, appear on each
      counterpart, but it shall be sufficient that the signature of, or on behalf
      of,
      each party, or that the signatures of the persons required to bind any party,
      appear on one or more such counterparts. All counterparts shall constitute
      one
      and the same instrument. It shall not be necessary in making proof of this
      Agreement or any counterpart hereof to produce or account for any of the other
      counterparts.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Pledgor has caused this Pledge Agreement to be executed and
      delivered by its duly authorized representatives as of the date first set forth
      above.

     

    
      

        

        
          	
                  IHL
                    INVESTMENTS, LLC

                	
                  HARRIS
                    CORPORATION 

                
	 	 
	
                  By:
                    /s/
                    L. Balikowsky,
                    Mgr.                     

                  Name:
                    L. Bailkowsky

                  Title:
                    Manager

                	
                  By:
                    /s/
                    Charles J.
                    Greene                     

                  Name:
                    Charles J. Greene

                  Title:
                    V.P.-Tax & Treasurer

                

        

        

        
          	
                  Address:

                	
                  3402
                    Oak Grove, Suite 200

                  Dallas,
                    TX 75204

                  Attention:
                    Manager

                	
                  Address:

                	
                  1025
                    West NASA Blvd

                  Melbourne,
                    FL 32919

                  Attention:
                    Scott t. Mikuen

                

        

        

      

      
 

      PLEDGOR:

      *
        * * *
        *

      State
        of
        TEXAS

      County
        of
        DALLAS

      

      On
         March
        29, 2007 before
        me
        appeared L.
        Balikowsky          
        who is
personally
        known to me (or proved to me on the basis of satisfactory evidence) to be
        the
        person whose name is subscribed to within the instrument and acknowledged
        to me
        that he executed the same in his authorized capacity, and that by his signature
        on the instrument the person, or the entity upon behalf of which the person
        acted, executed the instrument.

      

      
        	
                Notary
                  Public, 

                Commission
                  No.   

                Expires
                   July
                  25. 2009   

              	
                 

                 

                 

                /s/
                  Patricia Stevens

              
	 	
                Notary

              

      

      

      

      PLEDGEE:

      *
        * * *
        *

      State
        of
        FLORIDA

      County
        of
        BREVARD

      

      On
         March
        29, 2007 
        before
        me appeared Charles
        J. Greene   
        who is
personally
        known to me (or proved to me on the basis of satisfactory evidence) to be
        the
        person whose name is subscribed to within the instrument and acknowledged
        to me
        that he executed the same in his authorized capacity, and that by his signature
        on the instrument the person, or the entity upon behalf of which the person
        acted, executed the instrument.

      

      

      

      
        	
                Notary
                  Public, 

                Commission
                  No. DD263331         

                Expires
                   
                  2/24/08   

              	
                 

                 

                 

                /s/
                  Vicki L. Calicchia

              
	 	
                Notary

              

      

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    AGREEMENT
      AND ACKNOWLEDGEMENT OF PLEDGE

     

    OF
      TELTRONICS, INC.

     

    Teltronics,
      Inc. (the “undersigned”
or
      “Teltronics”)
      hereby
      agrees, acknowledges and consents to the execution and delivery to HARRIS
      CORPORATION (“Pledgee”),
      of
      that certain Pledge Agreement by IHL INVESTMENTS, LLC (“Pledgor”)
      dated
      of even date herewith (the “Pledge”),
      as
      collateral security for the payment and performance by the Pledgor under the
      Note delivered to Pledgee and the assignment and pledge under the Pledge to
      Pledgee by Pledgor of all of Pledgor’s right, title and interest to the Pledged
      Collateral (as defined in the Pledge). All capitalized terms used herein not
      otherwise defined herein shall have the meanings ascribed to such terms in
      the
      Pledge.

     

    The
      undersigned shall cause all of its books and records to reflect the pledge
      of
      the Pledged Collateral to Pledgee and agrees not to consent to or to permit
      any
      transfer of the Pledged Collateral or any other action that may be taken by
      Pledgor that might constitute a breach of any term or condition of the Pledge
      or
      any Event of Default so long as any Obligations remain outstanding, except
      in
      accordance with and subject to the terms and conditions of the Pledge. The
      undersigned represents and warrants that (i) the execution and delivery of
      the
      Pledge does not violate any of the undersigned’s Organizational Documents
      (including without limitation Teltronics’ Certificate of Incorporation and
      Bylaws, as they may be amended) or any other agreement to which the undersigned
      is a party or by which any of the property of the undersigned is bound, (ii)
      Pledgor’s shares in the undersigned are as set forth in the Pledge and such
      shares in the undersigned are not subject to any claim, lien or encumbrance
      whatsoever of any kind or nature; and (iii) the undersigned does not have any
      claim, right of offset, or counterclaim against Pledgor under or with respect
      to
      the Pledged Collateral or otherwise under any of the undersigned’s
      Organizational Documents, and Pledgor is not in default to the undersigned
      or
      otherwise under or in respect of any of its obligations under any of the
      undersigned’s Organizational Documents. The undersigned agrees that Pledgee
      and/or its representatives may at any time during reasonable business hours
      inspect the books, records and properties of the undersigned, and the
      undersigned shall, so long as any Obligations remain outstanding, at least
      five
      (5) business days prior to the time any Distributions are proposed to be made,
      give written notice thereof to Pledgee at its address provided in the Pledge.
      The undersigned has issued a certificate representing Pledgor’s shares in the
      undersigned. The undersigned maintains books or records for or relating to
      the
      transfer of shares in the undersigned.

     

    Notwithstanding
      the security interests of Pledgee in the Pledged Collateral, Pledgee shall
      have
      no obligation or liability whatsoever to the undersigned, or any stockholder
      or
      director thereof, or any creditor or other person having any relationship,
      contractual or otherwise, with the undersigned, nor shall Pledgee be obligated
      to perform any of the obligations or duties of Pledgor under any of the
      undersigned’s Organizational Documents, or to take any action to collect or
      enforce any claim for payment due Pledgor arising thereunder. The undersigned
      acknowledges that the security interest of Pledgee in the Pledged Collateral
      and
      all of Pledgee’s rights and remedies under the Pledge may be freely transferred
      or assigned by Pledgee, as

     

     

    
      
        
        

      

      
        1

      

      
        
          

        

      

       

      permitted
        by the Note. In the event of any such transfer or assignment, all of the
        provisions of this Agreement and Acknowledgment of Pledge shall inure to
        the
        benefit of the transferees, successors and/or assigns of Pledgee. The provisions
        of this Agreement and Acknowledgment of Pledge shall likewise be binding
        upon
        any and all permitted transferees, successors and assigns of the
        undersigned.

    

     

    The
      undersigned hereby agrees that it will comply with all reasonable instructions
      concerning the Pledged Collateral originated by Pledgee without further consent
      of Pledgor and that: (i) all Distributions will be made directly to Pledgee
      until the Obligations have been paid in full, (ii) upon the occurrence of any
      Event of Default, Pledgee shall have the sole and exclusive right to exercise
      all voting, consensual and other powers of ownership pertaining to the Pledged
      Collateral, and (iii) Pledgee may take any reasonable action which Pledgee
      may
      deem necessary for the maintenance, preservation and protection of any of the
      Pledged Collateral or Pledgee’s security interests therein, including, without
      limitation, the right to declare any or all Obligations to be immediately due
      and payable without demand or notice and the right to transfer any of the
      Pledged Interests or other Pledged Collateral into Pledgee’s name or the name of
      any designee or nominee of Pledgee.

     

    The
      undersigned hereby acknowledges that on the date hereof, Pledgee sold to Pledgor
      40,000 shares of Series C Preferred stock of the undersigned but that only
      10,000 of such shares are part of the Pledged Collateral and that 30,000 of
      such
      shares are not pledged (such unpledged shares and any underlying common stock
      is
      referred to as the “Unpledged
      Shares”).
      The
      undersigned hereby acknowledges that it will not register or effect any transfer
      or sale of the Unpledged Shares on its books or otherwise, unless the
      Obligations have previously been paid in full or unless the proceeds of such
      sale or transfer shall have been applied to pay the Obligations under the Note.
      The undersigned also acknowledges that unless the Obligations have previously
      been paid in full, any dividends or other Distributions on the Unpledged Shares
      will be paid directly to Pledgee to be applied to the Obligations under the
      Note.

    

    The
      undersigned shall, from time to time, promptly execute and deliver such further
      instruments, documents and agreements, and perform such further acts as may
      be
      necessary or proper to carry out and effect the terms of the Pledge and this
      Agreement and Acknowledgment of Pledge.

    

    This
      Agreement and Acknowledgment of Pledge is being given to induce Pledgee to
      accept the Pledge and with the understanding that Pledgee will rely
      hereon.

     

    
      
        
        

      

      
        
        

        2
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned has caused this Agreement and Acknowledgment
      of
      Pledge to be duly executed and delivered.

     

    Dated
      this 29th day of March, 2007.

     

    

    
      	 	
              TELTRONICS,
                INC. 

               

               

               

               

              By:
                /s/ Ewen R.
                Cameron                                             
                

              Name:
                Ewen R. Cameron

              Title:
                President & CEO

            

    

    

     

     

     

     

     

     

     

     

    
      3Exhibit 10.4 Registration Rights Agreement

    Exhibit
      4

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    

    This
      Registration Rights Agreement (the "Agreement")
      dated
      this 27th
      day of
      March, 2002, is by and between Teltronics, Inc., a Delaware corporation the
      "Company")
      and
      HARRIS CORPORATION, a Delaware corporation ("Harris",
      which,
      together with any subsequent assignees subject to the provisions hereof, the
      "Holder").

    

    W I T N E S S E
      T H:

    

    WHEREAS,
      on the date hereof the Company has issued the Holder shares of Series C
      Preferred Stock (the "Preferred
      Shares")
      effective the date hereof which are initially convertible into an aggregate
      of
      1,454,545 shares of the Company's common stock, par value $.001 per share (the
      "Common
      Stock"),
      subject to the terms and conditions set forth in the Company's Certificate
      of
      Designations creating the Preferred Shares (such shares of Common Stock being
      the "Conversion
      Shares");

    

    WHEREAS,
      none of the Conversion Shares have been registered under the Securities Act
      (as
      defined below) and, as a inducement to Holder, the Company has agreed to grant
      to Holder certain registration rights with respect to the Conversion Shares
      as
      set forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and undertakings contained
      herein and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto agree as follows:

    

    1.    Demand
      Registration.

    

    (a)    Demand
      Right.
      If the
      Company shall receive from Initiating Holders (as defined in Section 10) at
      any
      time or times a written request that the Company effect any registration with
      respect to Registrable Securities (the "Demand
      Request"),
      in an
      offering to be firmly underwritten by underwriter(s) selected by the Initiating
      Holders (which underwriter(s) shall be reasonably acceptable to the Company)
      the
      Company shall:

    

    (i)    promptly
      give written notice of the proposed registration to all other holders
      of  Registrable
      Securities ("Notice
      of Demand Request");
      and

    

    (ii)    as
      soon
      as practicable, use its best efforts to file a registration statement covering
      the Registrable Securities so requested to be registered and to effect such
      registration including, without limitation, filing post-effective amendments,
      appropriate qualifications under applicable blue sky or other state securities
      laws, and appropriate compliance with the Securities Act of 1933 (the
      "Securities
      Act")
      and as
      would permit or facilitate the sale and distribution of all of such Registrable
      Securities as are specified in such request, together with all or such portion
      of the Registrable Securities of any other holders of Registrable Securities
      joining in such request as are specified in a written request received by the
      Company within twenty (20) days after the date of the Notice of Demand
      Request.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Company shall only be required to effect, pursuant to this Section 1, four
      (4)
      registrations of Registrable Securities. A requested registration shall not
      count for these purposes unless (A) such registration statement has been
      declared effective and an offering closed in which at least 90% of the
      Registrable Securities requested to be included in such registration by the
      Initiating Holders shall have been sold or (B) the registration has been
      withdrawn by the Initiating Holders and the Initiating Holders have not paid
      the
      Registration Expenses pursuant to Section 4 hereof in circumstances in which
      they were required to bear such expenses.

    

    The
      registration statement filed pursuant to the request of the Initiating Holders
      may, subject to the provisions of Sections 1(b) and (7) hereof and the prior
      written consent of the Initiating Holders, include other securities of the
      Company, with respect to which registration rights have been granted, and may
      include securities of the Company being sold for the account of the Company,
      provided
      that all
      the Registrable Securities for which the Initiating Holders have requested
      registration shall be covered by such registration statement before any such
      other securities are included.

    

    (b)    Proviso.
      The
      Company shall not be obligated to effect, or to take any action to effect,
      any
      such registration pursuant to this Section 1:

    

    (i)    in
      any
      particular jurisdiction in which the Company would be required to execute a
      general consent to service of process in effecting such registration,
      qualification, or compliance, unless the Company is already subject to service
      in such jurisdiction and except as may be required by the Securities
      Act;

    

    (ii)    during
      the period starting with the date thirty (30) days prior to the Company's good
      faith estimate of the date of filing of, and ending on a date seventy-five
      (75)
      days after the effective date of, a Company-initiated registration, provided
      that the Company is actively employing in good faith all reasonable efforts
      to
      cause such registration statement to become effective; or 

     

    (iii)    if
      the
      Initiating Holders propose to dispose of shares of Registrable
      Securities which
      may
      be immediately registered on Form S-3   
pursuant to a request made under Section
      3
      hereof.

     

         (c)    Deferral
      of Registration.
      If (i)
      in the good faith judgment of the Board of Directors of the Company, the filing
      of a registration statement as soon as practicable after receipt of the request
      of the Initiating Holders would be materially detrimental to the Company because
      there exist bona
      fide financing,
      acquisition or other activities of the Company and the Board of Directors of
      the
      Company concludes, as a result, that it is essential to defer the filing of
      such
      registration statement at such time, and (ii) the Company shall furnish to
      the
      Initiating Holders a certificate signed by the President of the Company stating
      that in the good faith judgment of the Board of Directors of the Company, it
      would be materially detrimental to the Company for such registration statement
      to be filed in the near future and that it is essential to defer the filing
      of
      such registration statement, then the Company shall have the right to
      defer

    

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    such
      filing (except as provided in Subsection (b)(ii) above) for a period of not
      more
      than ninety (90) days after receipt of the request of the Initiating Holders,
      provided
      that the
      Company shall not defer its obligation in this manner more than once in any
      twelve-month period, and provided
      further
      that the
      Initiating Holders shall be entitled to withdraw the request for registration
      and, if such request is withdrawn, such registration shall not count as a
      permitted requested registration hereunder and the Company shall pay all
      Registration Expenses incurred in connection with such withdrawn registration
      request.

    

    (d)    Underwriting.
      The
      right of any other holders of Registrable Securities joining in a request for
      registration as provided in Section 1(a)(ii) above to registration pursuant
      to
      this Section 1 shall be conditioned upon such holder's participation in such
      underwriting and the inclusion of such holder's Registrable Securities in the
      underwriting on the same terms as those of the Initiating Holders (unless
      otherwise mutually agreed by a majority in interest of the Initiating Holders
      and such holder with respect to such participation and inclusion).

    

    (e)    Procedures.
      In any
      registration pursuant to Section 1, if the Company shall request inclusion
      of
      securities to be sold for its own account, or if other persons entitled to
      incidental registrations shall request inclusion in such registration pursuant
      to Subsection (c) above, the Initiating Holders shall, on behalf of all holders
      of Registrable Securities, offer to include such securities in the underwriting
      and may condition such offer on the acceptance by the Company or such other
      persons of the further applicable provisions of this Section 1. The Company
      shall (together with all Holders and such other persons proposing to distribute
      their securities through such underwriting) enter into an underwriting agreement
      in customary form with the representative(s) of the underwriter(s) selected
      for
      such underwriting by a majority in interest of the Initiating Holders.
      Notwithstanding any other provision of this Section, if the representative
      of
      the underwriter(s) advises the Initiating Holders of the need for an
      Underwriter's Cutback (as defined in Section 10), the number of shares to be
      included in the underwriting or registration shall be allocated as set forth
      in
      Section 8 hereof. If a person who has requested inclusion in such registration
      as provided in this Subsection (e) does not agree to the terms of any such
      underwriting, such person shall be excluded therefrom by written notice from
      the
      Company, the underwriter or the Initiating Holders, and the securities owned
      by
      such person(s) shall be withdrawn from registration (the "Withdrawn
      Securities").
      If
      there are any Withdrawn Securities and if there was an Underwriter's Cutback,
      then the Company shall offer to all holders who have retained rights to include
      securities in the registration the right to include additional securities in
      the
      registration in an aggregate amount equal to the number of Withdrawn Securities
      that would have been included in the registration after giving effect to the
      Underwriter's Cutback had such securities not been withdrawn, with such shares
      to be allocated among such Holders requesting additional inclusion in accordance
      with Section 8. 

    

    2.    Piggyback
      Registration.

    

    (a)    Notice
      and Procedures.
      If the
      Company proposes to register any of its Common Stock either for its own account
      or the account of a security holder or holders exercising their respective
      demand registration rights (other than pursuant to Sections 1 or 3 hereof),
      the
      Company will:

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (i)    promptly
      give written notice thereof to the Holder or, if different, to each holder
      of
      Registrable Securities; and

    

    (ii)    use
      its
      best efforts to include in such registration (and any related qualification
      under blue sky laws or other compliance), except as set forth in Section 2(b)
      below, and in any underwriting involved therein, all the Registrable Securities
      specified in a written request or requests, made by any holder of Registrable
      Securities and received by the Company within fifteen (15) days after the
      written notice from the Company described in clause (i) above, which written
      request may specify the inclusion of all or a part of such holder's Registrable
      Securities.

    

    The
      provisions of this Section 2 shall not apply to any registration relating solely
      to employee benefit plans (as defined under Rule 405 of the Securities Act),
      or
      a registration relating solely to a Rule 145 transaction, or a registration
      on
      any registration form that does not permit secondary sales.

    

    (b)    Underwriting.
      If the
      registration of which the Company gives notice is for a registered public
      offering involving an underwriting, the Company shall so advise the holders
      of
      Registrable Securities as a part of the written notice given pursuant to Section
      2(a)(i). In such event, the right of any holders to registration pursuant to
      this Section shall be conditioned upon such holder's participation in such
      underwriting and the inclusion of such holder's Registrable Securities in the
      underwriting to the extent provided herein. All holders of Registrable
      Securities proposing to distribute their securities through such underwriting
      shall (together with the Company and the other holders of securities of the
      Company with registration rights to participate therein distributing their
      securities through such underwriting) enter into an underwriting agreement
      in
      customary form with the representative of the underwriter(s) selected by the
      Company.

    

    Notwithstanding
      any other provision of this Section 2, if the representative of the underwriters
      advises the Company of the need for an Underwriter's Cutback, the representative
      may (subject to the limitations set forth below) limit the number of Registrable
      Securities to be included in the registration and underwriting; provided,
      however,
      that
      Registrable Securities shall be included in any over-allotment option granted
      to
      the underwriters before inclusion of any shares from the Company. The Company
      shall advise all holders of securities requesting registration of the
      Underwriter's Cutback, and the number of shares of securities that are entitled
      to be included in the registration and underwriting shall be allocated first
      to
      the Company for securities being sold for its own account and thereafter as
      set
      forth in Section 9. If any person does not agree to the terms of any such
      underwriting, it shall be excluded therefrom by written notice from the Company
      or the underwriter and any securities so excluded or withdrawn from such
      underwriting shall be withdrawn from such registration ("Withdrawn
      Securities").

    

    If
      there
      are Withdrawn Securities and if there was an Underwriter's Cutback, the Company
      shall then offer to all persons who have retained the right to include
      securities in the registration the right to include additional securities in
      the
      registration in an aggregate amount equal to the number of shares of Withdrawn
      Securities that would have been included in the

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    registration
      after giving effect to the Underwriter's Cutback had such securities not been
      withdrawn, with such shares to be allocated among such holders requesting
      additional inclusion in accordance with Section 9.

    

        (c)    Lock
      Up Agreements.
      If
      requested in writing by the Company and an underwriter of Common Stock for
      the
      Company, the holders of Registrable Securities shall agree not to sell or
      otherwise transfer or dispose of any Common Stock of the Company held by such
      holder (other than those included in the registration statement) for a period
      not to exceed one hundred twenty (120) days following the effective date of
      a
      registration statement of the Company filed under the Securities Act,
provided
      that all
      officers and directors of the Company, all holders of Registrable Securities,
      and all other holders of rights to registration of any other security of the
      Company enter into similar agreements identical in terms to that of the holders
      of Registrable Securities. The terms of this Section 2(c) shall not apply to
      sales made pursuant to Rule 144 promulgated under the Securities
      Act.

    

    3.    Registration
      On Form S-3.

    

    (a)    After
      the
      Company has qualified for the use of Form S-3, in addition to the rights
      contained in the foregoing provisions of this Agreement, the holders of
      Registrable Securities shall have the right to request registrations on Form
      S-3
      or any comparable or successor form. Each such request shall be in writing
      and
      shall state the anticipated number of shares of Registrable Securities to be
      disposed of and the anticipated gross proceeds of such shares, and the intended
      methods of disposition of such shares by such holder or holders, including
      whether such resales are to be made on a delayed or continuous basis pursuant
      to
      Rule 415. The Company shall not be obligated to effect any registration pursuant
      to this Section 3 if (i) the holder of Registrable Securities, together with
      the
      holders of any other securities of the Company entitled to inclusion in such
      registration, propose to sell Registrable Securities and such other shares
      of
      Common Stock (if any) on Form S-3 at an aggregate price to the public of less
      than $500,000, or (ii) in the event that the Company shall furnish the
      certification described in Subsection 1(b)(ii) or Subsection 1(c) (but subject
      to the limitations set forth therein), or (iii) the Company will be required
      to
      obtain an audit (other than for its normal year-end audit) for such registration
      to become effective. The Company shall only be required to effect two (2)
      registrations of Registrable Securities pursuant to this Section 3 in each
      calendar year, provided,
      however,
      that if
      the offering is to be effected on a continuous or delayed basis pursuant to
      Rule
      415 (or any successor rule), and the registration statement is kept effective
      for a period in excess of 180-days, then the Company shall not be required
      to
      effect another registration in that calendar year.

    

    (b)    If
      a
      request complying with the requirements of Section 3(a) hereof is delivered
      to
      the Company, the provisions of Sections 1(a)(i) and (ii) and Section 1(b) hereof
      shall apply to such registration. If the registration is for an underwritten
      offering, the provisions of Sections 1(d) and 1(e) hereof shall also apply
      to
      such registration.

    

    4.    Expenses
      Of Registration.

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    All
      Registration Expenses incurred in connection with any registration,
      qualification or compliance pursuant to Sections 1, 2, and 3 hereof, shall
      be
      borne by the Company; provided,
      however, that a holder of Registrable Securities shall bear the Registration
      Expenses for any registration proceeding begun pursuant to Section 1 and
      subsequently withdrawn by that holder registering shares therein, unless such
      withdrawal is based upon (a) material adverse information relating to the
      Company that is different from the information known or available (upon request
      from the Company or otherwise) to the Initiating Holders at the time of their
      request for registration under Section 1, or (b) material adverse changes in
      the
      financial markets which result in a significant decline in the public market
      price for the Company's Common Stock of at least twenty percent (20%) from
      the
      date such registration proceeding is begun to the date of such withdrawal.
      All
      Selling Expenses relating to securities registered pursuant to Sections 1,
      2,
      and 3 hereof, shall be borne by the holders of such securities pro rata on
      the
      basis of the number of shares of securities so registered on their
      behalf.

    

    5.    Registration
      Procedures.

    

    In
      the
      case of each registration effected by the Company pursuant to this Agreement,
      the Company will use its best efforts to effect the registration and sale of
      Registrable Securities in accordance with the intended method of disposition
      thereof, and pursuant thereto the Company shall as expeditiously as
      possible:

    

    (a)    prepare
      and file with the SEC a registration statement with respect to the securities
      to
      be registered on such form as the Company deems appropriate and is permitted
      or
      qualified to use, and shall use all reasonable efforts to cause such
      registration statement to become and remain effective for a period of ninety
      (90) days or until the holders have completed the distribution described in
      the
      registration statement relating thereto, whichever first occurs or, in the
      case
      of any registration of Registrable Securities on Form S-3 which are intended
      to
      be offered on a continuous or delayed basis, for such period as shall be
      necessary to keep the registration statement effective until all such
      Registrable Securities are sold;

    

    (b)    prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement;

    

    (c)    furnish
      to the holders of Registrable Securities to be included in a registration
      statement, at a reasonable time prior to the filing thereof with the SEC, a
      copy
      of the registration statement (and each amendment or supplement thereto) in
      the
      form the Company proposes to file the same; and furnish such number of
      prospectuses and other documents incident thereto, including any amendment
      of or
      supplement to the prospectus, as such holder of Registrable Securities from
      time
      to time may reasonably request in order to facilitate the disposition of such
      Registrable Securities owned by such Seller;

    

    (d)    notify
      each seller of Registrable Securities covered by such registration statement,
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Securities Act, of the happening of any event as a result of which the
      prospectus included in such

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    registration
      statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in the light of the circumstances,
      and prepare and furnish to such seller a reasonable number of copies of a
      supplement to or an amendment of such prospectus as may be necessary so that,
      as
      thereafter delivered to the purchasers of such shares, such prospectus shall
      not
      include an untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading in the light of the circumstances then existing;

    

    (e)    cause
      all
      such Registrable Securities registered pursuant hereunder to be listed on each
      securities exchange on which similar securities issued by the Company are then
      listed; and provide a transfer agent and registrar and a CUSIP number for all
      such Registrable Securities, in each case not later than the effective date
      of
      such registration;

    

    (f)    otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      SEC, and make available to its security holders, as soon as reasonably
      practicable, an earnings statement covering the period of at least twelve
      months, but not more than eighteen (18) months, beginning with the first day
      of
      the Company's first full fiscal quarter after the effective date of the
      registration statement, which earnings statement shall satisfy the provisions
      of
      Section 11(a) of the Securities Act; and

    

    (g)    in
      connection with any underwritten offering pursuant to a registration statement
      filed pursuant to Section 1 or 3 hereof, enter into an underwriting agreement
      containing customary underwriting provisions so as to effect the offer and
      sale
      of the Registrable Securities.

    

    6.    Indemnification.

    

    (a)    The
      Company will indemnify each holder of Registrable Securities, each of its
      officers, directors and partners, and each person controlling such holder within
      the meaning of Section 15 of the Securities Act, with respect to which
      registration has been effected pursuant to this Agreement, and each underwriter,
      if any, and each person who controls within the meaning of Section 15 of the
      Securities Act any such underwriter, against all expenses, claims, losses,
      damages, and liabilities (or actions, proceedings, or settlements in respect
      thereof) arising out of or based on any untrue statement (or alleged untrue
      statement) of a material fact contained in any prospectus (including any related
      registration statement, notification, or the like) incident to any registration
      under this Agreement, or based on any omission (or alleged omission) to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, or any violation by the Company of the
      Securities Act or any rule or regulation thereunder applicable to the Company
      and relating to action or inaction required of the Company in connection with
      any such registration, and will reimburse each such holder, each of its
      officers, directors, partners, and each person controlling such holder, each
      such underwriter, and each person who controls any such underwriter, for any
      legal and any other expenses reasonably incurred in connection with
      investigating and defending or settling any such claim, loss, damage, liability,
      or action, provided that the Company will not be liable in any such case to
      the
      extent that any such claim, loss, damage, liability or expense arises out of
      or
      is based on any untrue statement or omission based upon written information
      furnished to the Company by such holder

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    or
      underwriter and stated to be specifically for use therein. It is agreed that
      the
      indemnity agreement contained in this Section shall not apply to amounts paid
      in
      settlement of any such loss, claim, damage, liability, or action if such
      settlement is effected without the consent of the Company (which consent shall
      not be unreasonably withheld).

    

    (b)    In
      connection with the registration or sale of shares of Registrable Securities
      pursuant to this Agreement, each holder whose Registrable Securities are
      included in such registration being effected under this Agreement, will
      indemnify the Company, each of its directors, officers, partners, and each
      underwriter, if any, of the Company's securities covered by such a registration
      statement, each person who controls the Company or such underwriter within
      the
      meaning of Section 15 of the Securities Act, against all claims, losses, damages
      and liabilities (or actions in respect thereof) arising out of or based on
      any
      untrue statement (or alleged untrue statement) of a material fact contained
      in
      any such registration statement or prospectus, or any omission (or alleged
      omission) to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, and will reimburse
      the
      Company and such directors, officers, partners, underwriters, or control person
      for any legal or any other expenses reasonably incurred in connection with
      investigating or defending any such claim, loss, damage, liability, or action,
      in each case to the extent, but only to the extent, that such untrue statement
      (or alleged untrue statement) or omission (or alleged omission) is made in
      such
      registration statement or prospectus, in reliance upon and in conformity with
      written information furnished to the Company by such holder of the Registrable
      Securities, and stated to be specifically for use therein; provided,
      however,
      that
      the obligations of such holder hereunder shall not apply to amounts paid in
      settlement of any such claims, losses, damages, or liabilities if such
      settlement is effected without the consent of such holder, which consent shall
      not be unreasonably withheld; and provided
      that in
      no event shall any indemnity under this Section exceed the net amount of
      proceeds from the offering received by such holder.

    

    (c)    Each
      party entitled to indemnification under this Section (the "Indemnified
      Party")
      shall
      give notice to the party or parties required to provide indemnification (the
      "Indemnifying
      Party")
      promptly after such Indemnified Party has actual knowledge of any claim as
      to
      which indemnity may be sought, and shall permit the Indemnifying Party to assume
      the defense of such claim or any litigation resulting therefrom, provided that
      counsel for the Indemnifying Party, who shall conduct the defense of such claim
      or any litigation resulting therefrom, shall be approved by the Indemnified
      Party (whose approval shall not be unreasonably withheld), and the Indemnified
      Party may participate in such defense at such party's expense, and provided
      further that the failure of any Indemnified Party to give notice as provided
      herein shall not relieve the Indemnifying Party of its obligations under this
      Section, to the extent such failure is not prejudicial. No Indemnifying Party,
      in the defense of any such claim or litigation, shall, except with the consent
      of each Indemnified Party, consent to entry of any judgment or enter into any
      settlement that does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to such Indemnified Party of a release from all
      liability in respect to such claim or litigation. Each Indemnified Party shall
      furnish such information regarding itself or the claim in question as an
      Indemnifying Party may reasonably request in writing and as shall be reasonably
      required in connection with defense of such claim and litigation resulting
      therefrom.

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d)    If
      the
      indemnification provided for in this Section is held by a court of competent
      jurisdiction to be unavailable to an Indemnified Party with respect to any
      loss,
      liability, claim, damage, or expense referred to therein, then the Indemnifying
      Party, in lieu of indemnifying such Indemnified Party hereunder, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such loss, liability, claim, damage, or expense in such proportion as is
      appropriate to reflect the relative fault of the Indemnifying Party on the
      one
      hand and of the Indemnified Party on the other in connection with the statements
      or omissions that resulted in such loss, liability, claim, damage, or expense
      as
      well as any other relevant equitable considerations. The relative fault of
      the
      Indemnifying Party and of the Indemnified Party shall be determined by reference
      to, among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission to state a material fact relates to information
      supplied by the Indemnifying Party or by the Indemnified Party and the parties'
      relative intent, knowledge, access to information, and opportunity to correct
      or
      prevent such statement or omission.

    

    (e)    Notwithstanding
      the foregoing, to the extent that the provisions on indemnification and
      contribution contained in the underwriting agreement entered into in connection
      with the underwritten public offering are in conflict with the foregoing
      provisions, the provisions in the underwriting agreement shall
      control.

    

    7.    Information
      By Holder.

    

    Each
      holder of Registrable Securities shall furnish to the Company in writing such
      information regarding such holder and the distribution proposed by such holder
      as the Company or underwriters may reasonably request in writing and as shall
      be
      reasonably required in connection with any registration, qualification, or
      compliance referred to in this Agreement.

    

    8.    Allocation
      Of Registration Opportunities.

    

    In
      any
      circumstance in which all of the Registrable Securities and other shares Common
      Stock of the Company with registration rights (the "Other
      Shares")
      requested to be included in a registration on behalf of the holders of
      Registrable Securities or other selling stockholders cannot be so included
      as a
      result of limitations of the aggregate number of shares of Registrable
      Securities and Other Shares that may be so included, the number of shares of
      Registrable Securities and Other Shares that may be so included shall be
      allocated among the holders of Registrable Securities and other selling
      stockholders requesting inclusion of shares pro rata on the basis of the number
      of shares of Registrable Securities and Other Shares that would be held by
      such
      holders and other selling stockholders. If any holder of Registrable Securities
      or other selling stockholder does not request inclusion of the maximum number
      of
      shares of Registrable Securities and Other Shares allocated to him pursuant
      to
      this procedure, the remaining portion of his allocation shall be reallocated
      among those requesting holders of Registrable Securities and other selling
      stockholders whose allocations did not satisfy their requests pro rata on the
      basis of the number of shares of Registrable Securities and Other Shares which
      would be held by such holders and other selling stockholders, and this procedure
      shall be repeated until all of the shares of Registrable Securities and Other
      Shares which may be included in the registration on behalf of the holders of
      Registrable Securities and other selling stockholders have been so allocated.
      The 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Company
      shall not limit the number of Registrable Securities to be included in a
      registration pursuant to this Agreement in order to include shares held by
      stockholders with no registration rights or to include in that registration
      shares of stock issued to employees, officers, directors, or consultants
      pursuant to the Company's stock option plan, or in order to include in such
      registration securities registered for the Company's own account.

    

    9.     Survival
      Of Rights; Termination Of Registration Rights.

    

    The
      provisions of this Agreement shall survive the conversion of the Preferred
      Shares. The right of any holder of Registrable Securities to request
      registration or inclusion in any registration pursuant to this Agreement shall
      terminate on such date as all shares of Registrable Securities held or entitled
      to be held upon conversion by such holder shall be freely tradable under Rule
      144(k).

    

    10.    Definitions.

    

    Unless
      the context otherwise requires, the terms hereinafter set forth when used herein
      shall have the following meanings:

    

    "Holder"
      shall
      mean any Person who holds Registrable Securities and any holder of Registrable
      Securities to whom the registration rights conferred by this Agreement have
      been
      transferred in compliance herewith.

    

    "Initiating
      Holders"
      shall
      mean holders of the Registrable Securities who in the aggregate hold not less
      than twenty five percent (25%) of the aggregate of the original Registrable
      Securities, and who exercise rights to request registration under Section
      1.

    

    "Person"
      shall
      mean an individual, corporation, partnership, limited liability company, joint
      venture, sole proprietorship, trust or other entity, business association or
      organization.

    

    "Register,"
      "registered"
      and
      "registration"
      shall
      refer to a registration effected by preparing and filing a registration
      statement in compliance with the Securities Act and applicable rules and
      regulations thereunder, and the declaration or ordering of the effectiveness
      of
      such registration statement and such other action as might be required with
      respect to registration, qualification or compliance under applicable state
      securities laws.

    

    "Registration
      Expenses"
      shall
      mean all expenses incurred in effecting any registration pursuant to this
      Agreement, including, without limitation, all registration, qualification,
      and
      filing fees, printing expenses, escrow fees, fees and disbursements of
      custodians, fees and disbursements of counsel for the Company and its
      independent certified public accountants, blue sky fees and expenses, and
      reasonable fees and disbursements of one counsel for the holders or selling
      stockholders, which counsel shall be chosen by the holders of a majority of
      the
      Registrable Securities included in such registration, but shall not include
      Selling Expenses.

    

    "Registrable
      Securities"
      shall
      mean (i) Conversion Shares issued upon conversion of the Preferred Shares,
      and
      (ii) any Common Stock issued as a dividend or other distribution
      with

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    respect
      to, or in exchange for, or in replacement of, the shares referred to in clause
      (i); provided,
      however,
      that
      Registrable Securities shall not include any securities which have been
      distributed to the public pursuant to an offering registered under the
      Securities Act, or sold to the public through a broker, dealer or market maker
      in compliance with Rule 144.

    

    "Rule
      144"
      shall
      mean Rule 144 as promulgated by the SEC under the Securities Act, as such Rule
      may be amended from time to time, or any similar successor rule that may be
      promulgated by the SEC.

    

    "Rule
      145"
      shall
      mean Rule 145 as promulgated by the SEC under the Securities Act, as such Rule
      may be amended from time to time, or any similar successor rule that may be
      promulgated by the SEC.

    

    "SEC"
      shall
      mean the Securities and Exchange Commission.

    

    "Security"
      shall
      have the same meaning as in Section 2(1) of the Securities Act of 1933, as
      amended.

    

    "Selling
      Expenses"
      shall
      mean all underwriting discounts, selling commissions and stock transfer taxes
      applicable to the sale of Registrable Securities and fees and disbursements
      of
      counsel for any stockholder (other than the fees and disbursements of one
      counsel for the holders of Registrable Securities, as selling stockholders,
      included in Registration Expenses).

    

    "Underwriter's
      Cutback"
      shall
      mean a reduction in the number of shares to be included in any underwritten
      offering as the result of receipt of written notice from the representative(s)
      of the underwriters to the effect that the number of shares requested to be
      included in such registration exceeds the number which can be sold in an orderly
      manner in such offering within a price range acceptable to either the Company
      (in a primary registration) or the majority of the holders initially requesting
      such registration (in a secondary registration).

    

    11.    Other
      Registration Rights.

    

    Except
      as
      provided in this Agreement, the Company shall not hereafter grant to any person
      the right to request the Company to register any equity securities of the
      Company, or any securities convertible or exchangeable into or exercisable
      for
      such securities, without the prior written consent of the holders of a majority
      of the Registrable Securities, provided that the Company may grant rights to
      other persons to participate in piggyback registrations as provided in Section
      2
      hereof so long as such rights are subordinate to the rights of the holders
      of
      Registrable Securities with respect to such piggyback
      registrations.

    

    12.    Notice.

    

    All
      notices, demands or other communications to be given or delivered under this
      Agreement shall be in writing, signed by the party giving such notice, demand
      or
      communication and shall be deemed to have been given (i) when delivered
      personally to the recipient, (ii) one (1) day after being sent to the recipient
      by a nationally recognized overnight courier service (charges

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    prepaid)
      or sent by facsimile transmission, or (iii) three (3) business days after being
      mailed to the recipient by certified or registered mail, return receipt
      requested and postage prepaid. Such notices, demands and other communications
      shall be sent to each party at the address set forth below, or at such other
      address as may have been previously supplied by written notice to the sending
      party:

    

    

    
      	
              Holder:

            	
              Harris
                Corporation

              1025
                NASA Boulevard

              Melbourne,
                Florida 32919

              Attention:
                Corporate Secretary

            
	 	 
	
              with
                a copy to:

            	
              Scott
                T. Mikuen, Esq.

              Vice
                President-Counsel,

              Corporate
                & Commercial Operations

              and
                Assistant Secretary

              1025
                NASA Boulevard

              Melbourne,
                Florida 32919

              Fax:
                (321) 727-9234

            
	 	 
	
              The
                Company:

            	
              Teltronics,
                Inc.

              2150
                Whitfield Industrial Way

              Sarasota,
                Florida 34243

              Fax:
                (941) 751-7724

              Attention:
                Ewen R. Cameron, President

            
	 	 
	
              with
                a copy to:

            	
              Blair
                & Roach

              2645
                Sheridan Drive

              Tonawanda,
                New York 14150

              Fax:
                (716) 834-9197

              Attention:
                John N. Blair, Esq.

            

    

    

    13.    Miscellaneous.

    

    (a)    Remedies.
      Any
      person having rights under any provision of this Agreement will be entitled
      to
      enforce such rights specifically to recover damages caused by reason of any
      breach of any provision of this Agreement and to exercise all other rights
      granted by law. The parties hereto agree and acknowledge that money damages
      may
      not be an adequate remedy for any breach of the provisions of this Agreement
      and
      that any party may at its sole discretion apply to any court of law or equity
      of
      competent jurisdiction (without posting any bond or other security) for specific
      performance and for other injunctive relief in order to enforce or prevent
      violation of the provisions of this Agreement.

    

    (b)    Amendments
      and Waivers.
      Except
      as otherwise provided herein, the provisions of this Agreement may be amended
      or
      waived only upon the prior written consent of the Company, the Holder (as long
      as the Holder holds any Registrable Securities) and holders of at least a
      majority of any other outstanding Registrable Securities and any such amendment
      or waiver shall

     

    
 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    be
      binding on all Holders, provided
      that in
      no event shall the obligation of any Holder hereunder be materially increased
      except with the written consent of such Holder.

    

    (c)    Successors
      and Assigns.
      All
      covenants and agreements in this Agreement by or on behalf of any of the parties
      hereto shall bind and inure to the benefit of the respective successors and
      assigns of the parties hereto whether so expressed or not. In addition, whether
      or not any express assignment has been made, provisions of this Agreement which
      are for the benefit of purchasers or holders of Registrable Securities are
      also
      for the benefit of, and enforceable by, any subsequent holder of Registrable
      Securities.

    

    (d)    Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement is held to be prohibited by or invalid under applicable law,
      such provision shall be in effect only to the extent that such prohibition
      or
      invalidity, without invalidating the remainder of this Agreement.

    

    (e)    Counterparts.
      This
      Agreement may be executed simultaneously in counterparts, any one of which
      need
      not contain the signatures of more than one party, but all such counterparts
      taken together will constitute one and the same Agreement.

    

    (f)    Descriptive
      Headings
      The
      section numbers and descriptive headings of this Agreement are inserted for
      convenience only and do not constitute a part of this Agreement.

    

    (g)    Governing
      Law.
      The
      Delaware General Corporation Law shall govern all issues and questions
      concerning the relative rights of the Company and its stockholders and all
      other
      issues and questions concerning the construction, validity, interpretation
      and
      enforcement of this Agreement without giving effect to any choice of law or
      conflict of law rules or provisions that would cause the application of the
      laws
      of any jurisdiction other than the state of Delaware.

    

    (h)    Jurisdiction
      and Venue.
      The
      Company and Holder hereby consent to the jurisdiction of the courts of Brevard
      County in the State of Florida and the United States District Court for the
      Middle District of Florida, as well as to the jurisdiction of all courts from
      which an appeal may be taken from such courts, for the purpose of any suit,
      action or other proceeding arising out of any of its obligations arising under
      this Agreement or with respect to the transactions contemplated hereby, and
      expressly waives any and all objections it may have as to venue in any of such
      courts.

    

    (i)    Notice
      of Transfer.
      The
      Holder and any other holder of Registrable Securities agrees to notify the
      Company of any transfers of Registrable Securities; provided,
      however,
      that
      any failure to give such notice shall not adversely effect the rights to which
      any holder or transferee of Registrable Securities would otherwise be entitled
      hereunder.

    

    

    

    

    [Remainder
      of page left intentionally blank.]

    

    

    

    
      
        
        

      

      
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    [SIGNATURE
      PAGE TO REGISTRATION RIGHTS AGREEMENT]

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Registration Rights
      Agreement to be executed by their duly authorized officers as of the date first
      above written.

    

    

    

    
      	 	
              COMPANY:

               

              TELTRONICS,
                INC.

            
	 	
               

               

              By: /s/
                Ewen R.
                Cameron                    

            
	 	
              Ewen
                R. Cameron

              President

            
	 	 
	 	
              HOLDER:

               

              HARRIS
                CORPORATION

            
	 	
               

               

              By: /s/
                Jeffrey P.
                Morrill                        

            
	 	
              Name:   
                 Jeffrey P. Morrill

              Its:        
                 Assistant Treasurer

            

    

    

    

    

    

    

    

    

    

     

    
      
        
        

      

      
        14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]