SEVENTH AMENDMENT TO EQUIPMENT LEASE

Exhibit 10(c)(1)(H)

      SEVENTH AMENDMENT TO EQUIPMENT LEASE

        SEVENTH AMENDMENT, dated as of June 17, 2003 (the “Sixth Amendment”), to Equipment Lease dated July 18, 1991 (the “Equipment Lease”) between PRC Leasing, Inc., a corporation organized and existing under the laws of the Commonwealth of Puerto Rico (herein called “Lessor”), and TII Network Technologies, Inc., a corporation organized and existing under the laws of the State of Delaware and authorized to do business in Puerto Rico (herein called “Lessee”).

        WHEREAS, Lessor and Lessee entered into an Equipment Lease dated July 18,1991, as amended by a First Amendment dated as of July 18, 1992, a Second Amendment dated as of February 25, 1993, a Restated Third Amendment dated as of December 14, 1993, a Fourth Amendment dated as of June 27, 2000, a Fifth Amendment dated as of July 18, 2001, and a Sixth Amendment dated as of June 5, 2002 (the “Sixth Amendment”) (as amended to date, the “Equipment Lease”); and

        WHEREAS, the term of the Equipment Lease is scheduled to expire on July 18, 2003; and

        WHEREAS, the parties wish to extend the term thereof;

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein as set forth, the parties agree hereto as follows:

    1.        Amendment to Equipment Lease.Section 2 of the Equipment Lease is hereby deleted in its entirety and new Section 2 is hereby inserted in its place:

2. Lease of Equipment. For and in consideration of the covenants and agreements hereinafter contained to be kept and performed by Lessee, Lessor has leased and does hereby lease to Lessee the personal property known and described in Exhibit “A” hereto, hereafter designated as “Equipment,” to have and to hold the same unto Lessee until July 18, 2004; provided, however, that this Equipment Lease shall be automatically renewed for additional one-year periods on each July 18 commencing July 18, 2004 and ending on the succeeding July 17 unless terminated at the end of any such year by either the Lessor or the Lessee on 180 days prior written notice.

    2.        Terms. All capitalized terms used, but not defined in this Seventh Amendment, herein shall be used as defined in the Equipment Lease.

    3.        Choice of Law. This Seventh Amendment shall be deemed to have been executed and entered into in the Commonwealth of Puerto Rico and shall be construed, enforced and performed in accordance with the laws thereof.

    4.        Exclusion of Oral Statements. This Seventh Amendment contains all of the agreements of the parties hereto with respect to the subject matter hereof. No oral or other statements, proposals or other agreements with respect to the subject matter hereof shall be binding on either of the parties hereto.

    5.        Agreement to Continue Equipment Lease as Amended. The Equipment Lease, as heretofore and hereby amended (including, without limitation, Exhibit A attached to the Fourth Amendment) shall remain and continue in full force and effect after the date hereof.

PRC Leasing, Inc.		TII Network technologies, Inc.
By: /s/ Xxxxxx X. Xxxxx		By: /s/ Xxxxxxx X. Xxxxx
Xxxxxx X. Xxxxx		Xxxxxxx X. Xxxxx
President		President