Document:

<PAGE>   1
                                                                   Exhibit 10.10

<TABLE>
<S>                                      <C>                                 <C>        <C>
===========================================================================================================
                                          1. THIS CONTRACT IS A RATED ORDER   RATING     PAGE OF PAGES
          AWARD/CONTRACT                     UNDER DPAS (15 CFR 350)                       1    2
===========================================================================================================
2. CONTRACT (Proc. Inst. Indent.) NO.     3. EFFECTIVE DATE     4. REQUISITION/PURCHASE REQUEST/PROJECT NO.
    GS-35F-4655H                               01/20/98
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5. ISSUED BY           CODE               6. ADMINISTERED BY (If other than Item 5)         CODE
                           -----------                                                          -----------

     GENERAL SERVICES ADMINISTRATION
     ADP ACQUISITION CENTER, FCI
     ROOM 1017

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7. NAME AND ADDRESS OF CONTRACTOR                                8. DELIVERY
   (No., street, city, country, State and ZIP Code)                                (X) FOB DESTINATION
                                                                    [ ] FOB ORIGIN    [ ] OTHER (See below)
     TELECOMMUNICATION SYSTEMS, INC.                            -------------------------------------------
     RICHARD A. YOUNG                                            9. DISCOUNT FOR PROMPT PAYMENT
     275 WEST STREET                                                00.000%-00 00.000%-00 NET-30
     SUITE 400                                                  -------------------------------------------
     ANNAPOLIS           MD 21401-                              10. SUBMIT INVOICES              ITEM
                                                                (4 copies unless other-
-------------------------------------------------------------   wise specified) TO THE           PER AGENCY
CODE                     FACILITY CODE                          ADDRESS SHOWN IN:                ORDER
===========================================================================================================
11. SHIP TO/MARK FOR   CODE                         12. PAYMENT WILL BE MADE BY             CODE
                           -----------                                                          -----------
PER AGENCY ORDER                                    PER AGENCY ORDER

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13. AUTHORITY FOR USING OTHER THAN FULL             14. ACCOUNTING AND APPROPRIATION DATA
    AND OPEN COMPETITION:                           PER AGENCY ORDER
[ ] 10 U.S.C. 2304(c) (      )
[X] 41 U.S.C. 253(C) (      )
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15A. ITEM NO.     15B. SUPPLIES/SERVICES        15C. QUANTITY    15D. UNIT    15E. UNIT PRICE   15F. AMOUNT
-----------------------------------------------------------------------------------------------------------
(1)               SEE PAGE TWO (2)
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                                                               15G. TOTAL AMOUNT OF CONTRACT    $ ESTIMATED
===========================================================================================================
                                           16. TABLE OF CONTENTS
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(check)    SEC.                     DESCRIPTION                        PAGE(S)
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                                           PART I - THE SCHEDULE
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X        A         SOLICITATION/CONTRACT FORM                           01-06
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X        B         SUPPLIES OR SERVICES AND PRICES/COSTS                07-07
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X        C         DESCRIPTION/SPECS./WORK STATEMENT                    12-17
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X        D         PACKAGING AND MARKING                                  18
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X        E         INSPECTION AND ACCEPTANCE                              19
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X        F         DELIVERIES OR PERFORMANCE                            20-21
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X        G         CONTRACT ADMINISTRATION DATA                         22-30
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X        H         SPECIAL CONTRACT REQUIREMENTS                        31-39
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                                         PART II - CONTRACT CLAUSES
X        I       CONTRACT CLAUSES                                       41-66
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                         PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.
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X        J       LIST OF ATTACHMENTS                                      68
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                                PART IV - REPRESENTATIONS AND INSTRUCTIONS
-----------------------------------------------------------------------------------------------------------
X        K REPRESENTATIONS, CERTIFICATIONS AND
           OTHER STATEMENTS OF OFFERORS                                 69-91
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X        L INSTRS., CONDS., AND NOTICES TO OFFERORS                     92-97
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X        M EVALUATION FACTORS FOR AWARD                                   99
===========================================================================================================
                       CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
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17. [ ] CONTRACTOR'S NEGOTIATED AGREEMENT (Contractor is required to sign this document and return         copies to issuing
office.) Contractor agrees to furnish and deliver all items or perform all the services set forth or otherwise identified above and
on any continuation sheets for the consideration stated herein. The rights and obligations of the parties to this contract shall be
subject to and governed by the following documents: (a) this award/contract, (b) the solicitation, if any, and (c) such provisions,
representations, certifications, and specifications, as are attached or incorporated by reference herein. (Attachments are listed
herein.)
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18. [X] AWARD (Contractor is not required to sign this document.) Your offer on Solicitation Number FCI-96-DL0001B, including the
additions or changes made by you which additions or changes are set forth in full above, is hereby accepted as to items listed above
and on any continuation sheets. This award consummates the contract which consists of the following documents: (a) the Government's
solicitation and your offer, and (b) this award/contract. No further contractual document is necessary.
-----------------------------------------------------------------------------------------------------------
19A. NAME AND TITLE OF SIGNER (Type or print)           20A. NAME OF CONTRACTING OFFICER
                                                                  THOMAS UBERTO
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19B. NAME OF CONTRACTOR        19C. DATE SIGNED         20B. UNITED STATES OF AMERICA      20C. DATE SIGNED
BY                                                      BY /s/ Thomas Uberto
   ----------------------------------------                --------------------------
   (Signature of person authorized to sign)             (Signature of Contracting Officer)         01/20/98
===========================================================================================================
</TABLE>

NSN 7540-01-152-8069                 26-107         STANDARD FORM 26 (REV. 4-85)
PREVIOUS EDITION UNUSABLE                           Prescribed by GSA
                                                    FAR (48 CFR) 53.214 (a)

<PAGE>   2
                                  GSA SCHEDULE

                       AUTHORIZED ADP SCHEDULE PRICELIST
                      FSC GROUP 70, PART I, SECTIONS B & C

        GENERAL PURPOSE COMMERCIAL AUTOMATIC DATA PROCESSING EQUIPMENT,
                  END USER COMPUTERS (NORMALLY MICROCOMPUTERS)
               AND EQUIPMENT USED PRIMARILY OFF-LINE, AND SOFTWARE

                            SPECIAL ITEM NO. 132-51

                                  ADP SERVICES

FSC CLASS                          DESCRIPTION                     CATEGORY CODE
--------------------------------------------------------------------------------
  D301                Resources and Facilities Management                 S
  D302                    Database Planning and Design                    S
  D306          Systems Analysis and Design Systems Installation          S
  D308                            Programming                             S
  D311               Conversion and Implementation Support                S
  D316                Network Services' Project Management                S
  D317                      Data/Records Management                       S

                  [TCS LOGO]   TELECOMMUNICATION
                               SYSTEMS, INC.
                               ------------------------------------
                               Enabling Convergent Technologies(TM)

                           275 WEST STREET, SUITE 400
                              ANNAPOLIS, MD 21401
                          PHONE NUMBER: (410) 263-7616
                           FAX NUMBER: (410) 263-7617
                        INTERNET: http://www.tcsnet.net

                         Contract Number: GS-35F-4655H
              Period Covered by Contract: January 20, 1998 - March 31, 1999

                        GENERAL SERVICES ADMINISTRATION

                             FEDERAL SUPPLY SERVICE

       Products and ordering information in this Authorized ADP Schedule
           Pricelist is also available on the GSA ADVANTAGE! System.

        Agencies can browse GSA ADVANTAGE! by accessing GSA's Home Page
                          via internet at www.gsa.gov.
<PAGE>   3

GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     2

                               TABLE OF CONTENTS
      PARAGRAPH TITLE                                                  PAGE
---------------------------------------------------------------------------
A. TCS Corporate Overview................................................ 3

B. Specific Category Code S Services Offered............................. 6

C. Information For Ordering Offices...................................... 7

D. Terms and Conditions ................................................. 12

E. Description Of ADP Service Offered Under SIN 132-51................... 12

F. Job Titles............................................................ 13

G. Pricing............................................................... 23

January 20, 1998                                                             TCS
<PAGE>   4
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     3

A.    TCS CORPORATE OVERVIEW

Achieving your goals in an age of shrinking budgets, reduced staff and rapidly
changing technology takes skill and creativity. It requires a knowledgeable
collaborator with the vision to help you navigate the management, financial and
technology choices you face every day.

TeleCommunication Systems, Inc. (TCS), an advanced technology firm, possesses
the management, systems engineering and integration skills to pilot you through
the most demanding challenges and help you attain your organizational goals.

Founded in 1987, TCS rapidly grew by delivering high quality, cost-competitive
communications solutions. Our success in this area, combined with customer
demand, propelled our expansion into complementary disciplines.

Today, TCS provides systems integration capabilities spanning communication,
information, and imaging technologies. We also provide systems engineering
services across a broad market, leveraging our experience in complex electronic
systems and large-scale facility relocation programs.

Our competitive advantage centers on a staff of technology experts,
professionals experienced in planning, managing and developing customer
solutions. Further, TCS personnel work to become valuable members of your team.
Their ultimate goal is to ensure your long-term success.

EXPERT HELP IN THE AGE OF INTEGRATION

Today's business environment requires a greater level of integration than ever
before. No matter how diverse the technology-voice, networking, imaging, video,
database, or electronic mail-users want their resources brought together into a
seamless, synergistic environment.

From the start, TCS has provided sophisticated connectivity and integration
solutions to our customers. We excel at blending distinct technologies into
innovative, coherent and practical systems that are tailored to you needs.

COMMUNICATIONS TECHNOLOGY

As voice, video, and data converge with wireline and wireless technologies, TCS
can deliver real-time, reliable and secure worldwide communications. Our breadth
of experience allows us to provide integrated solutions that truly fit your
unique requirements.

TCS connectivity services include design, installation, integration, test
operations and management for data, voice, and video networks.

For telephone systems, TCS Telecommunications Management Services help you
control this increasingly complex resource more effectively. TCS develops custom
software management tools and systems that enhance our services supporting
policy; planning; audit; traffic analysis/modeling; billing control; and Move,
Add, Change tasks.

TCS is a leader in the field of telecommunication asset audit, reconciliation,
and credit/refund negotiation, leveraging automated tools and years of
experience in both the corporate and Government environments.

TCS Computer Telephony Integration (CTI) systems allow organizations to
intelligently direct calls, provide 24-hour service, minimize wait times and,
overall, provide a more effective, content-rich phone response to customers.
Combining CTI with Interactive Voice Response, TCS provides more powerful
capabilities to improve customer service.

January 20, 1998                                                             TCS
<PAGE>   5
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     4

Advanced Intelligent Network (AIN) applications are developed by TCS on the
Lucent Technologies Service Node and Service Control Point to work within public
switched telephone networks or Wireless Intelligent Networks (WIN). TCS
applications create new "intelligent" services for phone companies, helping to
differentiate their offering in a highly competitive market.

INFORMATION TECHNOLOGY

From a desktop package to an enterprise-wide multimedia application, from
migration of legacy systems to a ground-up design effort, TCS implements office
automation and information technology solutions that fit your needs and exceed
you expectations.

Skilled TCS professionals leverage their in-depth knowledge of distributed
architecture; the Internet; database systems; software development; and voice,
video, and data networking to create applications that span your organization
and give you better access to information.

TCS systems integrators keep pace of the latest, most stable technologies for
you. Using an open architecture approach, TCS builds on industry-standard
products, client/server environments and object technologies. In this way, we
create applications that are easily sustained, expanded, and upgraded.

TCS is experienced in providing Y2K services, examining your entire
organization, identifying and prioritizing your potential points of failure, and
planning and managing the required corrective actions to ensure your continued
operation into the next century.

TCS services the life-cycle of your application from Business Process Analysis
(BPA) and integration to operation and maintenance. An on-staff team of software
developers ensures that your application is custom-tailored to your specific
needs.

IMAGING & WORKGROUP TECHNOLOGIES

TCS imaging systems bring diverse information into a single, readily accessible
electronic resource. Handwritten documents, photos, and drawings can be
accurately captured in digital form for virtually instantaneous information
access. TCS supports the conversion of your business processes to Electronic
Data Interchange (EDI) standardization, helping you to reduce costs and increase
responsiveness.

TCS workflow and workgroup systems automate document movement throughout the
organization and make it possible for dispersed members of any group to share
resources and information transparently.

TCS imaging and information systems engineers are experienced at integrating
diverse, legacy, imaging and workgroup systems into a cohesive, enterprise-wide,
system, providing data access across your entire WAN.

SYSTEMS ENGINEERING & MANAGEMENT

TCS Systems Engineering and Management capabilities incorporate the range of
today's technologies. With experienced managers and established methodologies,
TCS provides a total program strategy to meet your most sophisticated
requirements.

SYSTEMS ENGINEERING

TCS systems engineering services support complex platforms and associated
systems throughout their life-cycle. TCS provides acquisition, configuration
management, logistics, provisioning, cost analysis, and reliability and
maintainability capabilities for a variety of platforms.

January 20, 1998                                                             TCS
<PAGE>   6
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     5

FINANCIAL MANAGEMENT

The company's financial management capabilities include reporting, case
reconciliation and audit, life-cycle modeling, trend analysis, and risk
management to improve oversight of your complex programs.

FACILITY RELOCATION

TCS integrates advanced technology with expert management skills to provide
specialized relocation services for major office or industrial operations. TCS
offers detailed asset management, risk and environmental assessment, space
planning, cost and engineering analysis, systems certification and BPA. Whether
moving your current facility or establishing a new operational base, TCS will
help you keep costs down and disruption to a minimum.

THE BEST RESOURCES, THE BEST RESULTS

TCS delivers the best results because we provide the best talent. Our
professionals possess the highest qualifications in their disciplines, combining
advanced degrees with in-depth work experience. We seek out and hire high
caliber people then reinforce their skills through continued technical and
management training.

TCS technology resources include design and integration facilities. Our
technology laboratories provide an environment to test and implement
interoperability; object-oriented software development; imaging; and voice,
video and data integration.

CREATIVE APPROACHES, STANDARDIZED METHODOLOGY

TCS professional take innovative approaches to design customer solutions. To
safeguard the viability and appropriateness of their work, TCS uses a team
project development process.

The TCS process relies on established milestones, each with specific criteria
that must be met before a project can proceed to the next phase. TCS management,
the customer, and developers all participate in defining, tracking and reviewing
project development. The process focuses decision making and ensures that the
project stays true to your goals.

GUARANTEED SUCCESS

At TCS, our strategy is to succeed through long-term customer satisfaction. We
take every measure to exceed your expectations, helping you attain your goals in
today's demanding business environment.

January 20, 1998                                                             TCS
<PAGE>   7
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     6

B. SPECIFIC CATEGORY CODE S SERVICES OFFERED

FSC Class D301 - Resources and Facilities
        Management

-      Program Management
-      Operations & Maintenance
-      Automatic Call Distribution
-      Call Center Management
-      Interactive Voice Response
-      Advanced Intelligent Networks
-      Computer/Telephony Integration
-      Telecom Asset Audit, Reconciliation, & Credit
       Refund Negotiation
-      Help Desk
-      Video Teleconferencing
-      Traffic Analysis/Modeling
-      Move, Add, Change (MAC)
-      Cost/Financial Analysis
-      Systems Modeling, Analysis
-      Facility Planning
-      Acquisition Management
-      Integrated Logistics Support (ILS)
-      Reliability/Maintainability
-      Configuration Management
-      Energy Management
-      Life Cycle Support
-      Facility Relocation

FSC Class D302 - Database Planning and
          Design

-      Database Design/Management
-      Y2K Solutions
-      Internet Services
-      Test and Evaluation (T&E)
-      Training

FSC Class D306 - Systems Analysis and
      Design Systems Installation

-      System Integration & Installation
-      Business Process Analysis (BPA)
-      Technology Assessment
-      Y2K Solutions
-      Cost/Financial Analysis
-      Systems Modeling, Analysis
-      Integrated Logistics Support (ILS)
-      Reliability/Maintainability
-      Configuration Management
-      Life Cycle Support
-      Test and Evaluation (T&E)
-      Training

FSC Class D308 - Programming

-      Software Engineering
-      Software Testing & Validation
-      Y2K Solutions
-      Internet Services
-      Test and Evaluation (T&E)
-      Training

FSC Class D311 - Conversion and
Implementation Support

-      Program Management
-      Legacy Systems Migration
-      Y2K Solutions
-      Test and Evaluation (T&E)
-      Training

FSC Class D316 - Network Services' Project
     Management

-      Program Management
-      Network Design & Installation
-      Network Management
-      Operations & Maintenance
-      Help Desk
-      Internet Services
-      Systems Modeling, Analysis
-      Configuration Management
-      Test and Evaluation (T&E)
-      Training

FSC Class D317 - Data/Records
       Management

-      Electronic Document Management
-      Workflow Systems
-      Workgroup Systems
-      Enterprise Document Management
-      Training

January 20, 1998                                                           TCS
<PAGE>   8
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     7

C.     INFORMATION FOR ORDERING OFFICES

1.     GEOGRAPHIC SCOPE OF CONTRACT:

               48 contiguous states, and the District of Columbia, Alaska,
               Hawaii, and the Commonwealth of Puerto Rico.

2.     CONTRACTOR'S ORDERING ADDRESS AND PAYMENT INFORMATION:

(a)    For computer-to-computer EDI orders, the below named representative
       should be contact regarding establishment of an EDI interface:

               Drew Morin
               TeleCommunication Systems, Inc.
               275 West St., Suite 400
               Annapolis, MD 21401
               (410) 280-1203

(b)    For orders by facsimile transmission, orders should be forwarded to:

               410/263-7617

(c)    For mailed orders, paper form orders should be mailed to:

               TeleCommunication Systems, Inc.
               275 West St., Suite 400
               Annapolis, MD 21401

(d)    TCS is not marketing through dealers, and no dealers will be
       participating in this contract.

(e)    The payment address to which Government checks should be mailed for
       payment of proper invoices submitted under this contract is:

               TeleCommunication Systems, Inc.
               275 West St., Suite 400
               Annapolis, MID 21401

(f)    Government Commercial Credit Cards will not be acceptable for payment.

(g)    The telephone number(s) that can be used by ordering agencies to obtain
       technical and/or ordering assistance are:

               Technical Assistance Mr. D. Morin  (410) 280-1203

               Ordering Assistance Mr. B. White   (410) 280-1224

3.     RESERVED.

January 20, 1998                                                             TCS
<PAGE>   9
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     8

4.     STATISTICAL DATA FOR GOVERNMENT ORDERING OFFICE COMPLETION OF STANDARD
       FORM 279:

       Block 9:  G. Order/Modification Under Federal Schedule

       Block 16: Contractor Establishment Code (DUNS): 19-697-0503

       Block 30: Type of Contractor: A. Small Disadvantaged Business

       Block 31: Woman-Owned Small Business: No

       Block 34: RESERVED

       Block 36: Contractor's Taxpayer Identification Number (TIN): 52-1526369

4a.    CAGE CODE: OHAL7

5.     FOB: Destination

6.     COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULES)

(a)    Time Of Delivery. TCS shall deliver to destination within the number of
       calendar days after receipt of order (ARO), as set forth below:

       ITEMS OR GROUPS OF ITEMS                    DELIVERY TIME
         (SIN OR NOMENCLATURE)                      (DAYS ARO)
              132-51                     As negotiated per task/delivery order

(b)    Expedited Delivery Times. For those items that can be delivered quicker
       than the delivery times in paragraph (a), above, TCS can deliver, when
       expedited delivery is requested, as set forth below:

       ITEMS OR GROUPS OF ITEMS                  EXPEDITED DELIVERY TIME
         (SIN OR NOMENCLATURE                        (HOURS/DAYS ARO)
              132-51                      As negotiated per task/delivery order

(c)    Overnight and 2-Day Delivery Times. Not Applicable

(d)    Urgent Requirements. When the Federal Supply Schedule contract delivery
       period does not meet the bona fide urgent delivery requirements of an
       ordering agency, agencies are encouraged, if time permits, to contact the
       contractor for the purpose of obtaining accelerated delivery. The
       contractor shall replay to the inquiry within 3 workdays after receipt.
       (Telephonic replies shall be confirmed by the contractor in writing.) If
       the contractor offers an accelerated delivery time acceptable to the
       ordering agency, any order(s) placed pursuant to the agreed upon
       accelerated delivery time frame shall be delivered within this shorter
       delivery time and in accordance with all other terms and conditions of
       the contract.

7.     DISCOUNTS:

       a.     Prompt Payment: 0% - N/A days from receipt of invoice or date of
              acceptance, whichever is later.

       b.     Quantity: None

       c.     Dollar Volume: None

       d.     Government Educational Institutions: None

       e.     Discount for use of Government Commercial Credit Card: None

       f.     Other: As negotiated per task/delivery order

January 20, 1998                                                             TCS
<PAGE>   10
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     9

8.     PRODUCTION POINTS AND STATEMENT CONCERNING FOREIGN PRODUCED ITEMS:

               Not Applicable

9.     STATEMENT CONCERNING AVAILABILITY OF EXPORT PACKING: Not Applicable

10.    SMALL REQUIREMENTS: THE MINIMUM DOLLAR VALUE OF ORDERS TO BE ISSUED IS:
               $2,500.

11a.   MAXIMUM ORDER: (ALL DOLLAR AMOUNTS ARE EXCLUSIVE OF ANY DISCOUNT FOR
       PROMPT PAYMENT.)

f.     SPECIAL ITEM 132-51 - ADP SERVICES

       The maximum dollar value per order will be $500,000 for all ADP Services.

1lb.   ORDERS THAT EXCEED THE MAXIMUM ORDER (L-FSS-125)(AUG 1995)

(a)    In accordance with FAR 8.404 there may be circumstances where an ordering
       activity finds it advantageous to request a price reduction such as where
       a quantity of an individual order clearly indicates the potential for
       obtaining a reduced price.

       To assist the customer agencies to determine when they should seek a
       price decrease a level called a maximum order has been established under
       the contract. When an agency order exceeds this amount it is recommended
       that the ordering activity contact the contractor for a reduced price.

(b)    Contractor may:

       (1)    offer a new lower price for this requirement (the Price Reduction
       clause is not applicable to orders placed over the Maximum Order in FAR
       52.216-19.)

       (2)    offer the lowest price available under the contract; or

       (3)    decline the order, orders must be returned in accordance with FAR
       52.216-19.

(c)    A delivery order for quantities that exceed the maximum order may be
       placed with the contractor selected in accordance with Far 8.404. The
       order will be placed under the current contract.

(d)    Sales for orders that exceeds the Maximum Order shall be reported in
       accordance with GSAR 552.238-72.

12.    FEDERAL ADP/TELECOMMUNICATION STANDARDS REQUIREMENTS:

       Federal departments and agencies acquiring products from this Schedule
       must comply with the provisions of the Federal Standards Program, as
       appropriate (reference: NIST Federal Standards Index). Inquiries to
       determine whether or not specific products listed herein comply with
       Federal Information Processing Standards (FIPS) or Federal
       Telecommunication Standards (FED-STDS), which are cited by ordering
       offices, shall be responded to promptly by the Contractor.

12.1   FEDERAL INFORMATION PROCESSING STANDARDS PUBLICATIONS (FIPS PUBS):

       ADP products under this Schedule that do not conform to Federal
       Information Processing Standards (FIPS) should not be acquired unless a
       waiver has been granted in accordance with the applicable "FIPS
       Publication." Federal Information Processing Standards Publications (FIPS
       PUBS) are issued by the U.S. Department of Commerce, National Institute
       of Standards and Technology (NIST), pursuant to National Security Act.
       Information concerning their availability and applicability should be
       obtained from the National Technical Information Service (NTIS), 5285
       Port Royal Road, Springfield, Virginia 22161. FIPS PUBS include voluntary
       standards

January 20, 1998                                                             TCS
<PAGE>   11
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    10

       when these are adopted for Federal use. Individual orders for FIPS PUBS
       should be referred to the NTIS Sales Office, and orders for subscription
       service should be referred to the NTIS Subscription Officer, both at the
       above address, or telephone number (703) 487-4650.

12.2   FEDERAL TELECOMMUNICATION STANDARDS (FED-STDS):

       Telecommunication products under this Schedule that do not conform to
       Federal Telecommunication Standards (FED-STDS) should not be acquired
       unless a waiver has been granted in accordance with the applicable
       "FED-STD." Federal Telecommunication Standards are issued by the U.S.
       Department of Commerce, National Institute of Standards and Technology
       (NIST), pursuant to National Security Act. Ordering information and
       information concerning the availability of FED-STDS should be obtained
       from the GSA Specification Sales Office, Room 6654, 7th & D Streets, SW,
       Washington, DC 20407, telephone number (202) 708- 9205. Please include a
       self-addressed mailing label when requesting information by mail.
       Information concerning their applicability can be obtained by writing or
       calling the U.S. Department of Commerce, National Institute of Standards
       and Technology, Gaithersburg, MD 20899, telephone number 301/975-2833.

13.    SECURITY REQUIREMENTS:

       In the event security requirements are necessary, the ordering activities
       may incorporate, in their delivery order(s), a security clause in
       accordance with current laws, regulations, and individual agency policy;
       however, the burden of administering the security requirements shall be
       with the ordering agency. If any costs are incurred as a result of the
       inclusion of security requirements, such costs will be negotiated with
       the Schedule Contractor on an open market basis, outside the scope of the
       contract.

14.    CONTRACT ADMINISTRATION FOR ORDERING OFFICES:

       Any ordering office, with respect to any one or more delivery orders
       placed by it under this contract, may exercise the same rights of
       termination as might the GSA Contracting Officer under provisions of FAR
       52.249-1, 52.249-2, and 52.249-8.

15.    GSA ADVANTAGE! (REPLACES THE OSS ITS ON-LINE SCHEDULE SYSTEM)

       The GSA Advantage! is an on-line, interactive electronic information and
       ordering system that provides on-line access to vendors' schedule
       pricelists with ordering information, terms and conditions, and
       up-to-date pricing that will aid Schedule users in acquisitions. The GSA
       Advantage! will allow the user to:

a.     Search by Vendor's Name or Contract Number to view or download the
       vendor's complete GSA-approved pricelist with terms, conditions, and
       up-to-date pricing.

b.     Perform various searches across all contracts including, but not limited
       to:

       (1)     Manufacturer;

       (2)     Manufacturer's Part Number; and

       (3)     Product category(ies).

       Agencies can browse GSA Advantage! by accessing the Internet World Wide
       Web utilizing a browser (ex.: NetScape). The Internet address is
       http://www.gsa.gov.

16. USE OF GROUP 70 SCHEDULES CONTRACTS.

       In accordance with FAR 8.404:

January 20, 1998                                                             TCS
<PAGE>   12
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    11

a.     Ordering activities can place orders of $2,500 or less with any GSA
       Federal Supply Schedule contractor. GSA has already determined the prices
       of items under these contracts to be fair and reasonable.

b.     To reasonably ensure that a selection represents the best value and meets
       the agency's needs at the lowest overall cost, before placing an order of
       more than $2,500, an ordering activity should--

       (1)     Consider reasonably available information about products offered
               under Multiple Award Schedule (MAS) contracts; this standard is
               met if the ordering activity does the following:

               (i)    Considers products and prices contained in any GSA MAS
                      automated information system (e.g., GSA Advantage!); or

               (ii)   If automated information is not available, reviews at
                      least three (3) pricelists.

       (2)     In selecting the best value item at the lowest overall cost (the
               price of the item plus administrative costs), the ordering
               activity may consider such factors as--

               (i)    Special features of one item not provided by comparable
                      items which are required in effective program performance;

               (ii)   Trade-in considerations;

               (iii)  Probable life of the item selected as compared with that
                      of a comparable item;

               (iv)   Warranty conditions; and

               (v)    Maintenance availability.

       (3)     Give preference to the items of small business concerns when two
               or more items at the same delivered price will meet an ordering
               activity's needs.

c.     MAS contractors will not be required to pass on to all schedule users a
       price reduction extended only to an individual agency for a specific
       order. There may be circumstances where an ordering activity finds it
       advantageous to request a price reduction, such as where the ordering
       activity finds that a schedule product is available elsewhere at a lower
       price, or where the quantity of an individual order clearly indicates the
       potential for obtaining a reduced price.

d.     Ordering activities should document orders of $2,500 or less by
       identifying the contractor the item was purchased from, the item
       purchased, and the amount paid. For orders over $2,500, MAS ordering
       files should be documented in accordance with internal agency practices.
       Agencies are encouraged to keep documentation to a minimum.

January 20, 1998                                                             TCS
<PAGE>   13
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    12

D.     TERMS AND CONDITIONS

                           Applicable to ADP Services
       for General Purpose Commercial Automatic Data Processing Equipment
                              (Special Item 132-51)

1.     ORDER

       Agencies may use written orders, EDI orders, credit card orders, blanket
       purchase orders, individual purchase orders, or task orders for ordering
       services under this contract. Blanket Purchase Orders shall not extend
       beyond the end of the contract period.

2.     INVOICES AND PAYMENT

       Invoices for ADP Services shall be submitted by the contractor as soon as
       possible after completion of the work. Payment under blanket purchase
       orders will be made quarterly or monthly, except where cash payment
       procedures are used. Invoices shall be submitted separately to each
       Government office ordering services under the contract. PROMPT PAYMENT
       DISCOUNT, IF APPLICABLE, SHALL BE SHOWN ON THE INVOICE.

3.     ADP SERVICE OFFERED UNDER SIN 132-51

       TCS is providing hourly rates for ADP Service offered under SIN 132-51.
       These ADP Services are presented in the same manner as TCS sells to its
       commercial and other government customers. A description of all
       corresponding commercial job titles for those individuals who will
       perform the service is provided.

       Pricing for such services are in accordance with TCS's customary
       commercial hourly rates practices.

       Following are the descriptions of commercial job titles for hourly rates
       offered by TCS for ADP Services offered under SIN 132-51:

       Resumes shall be provided to the GSA Contacting Officer or user Agency
       upon request.

E.     DESCRIPTION OF ADP SERVICE OFFERED UNDER
       SIN 132-51

<TABLE>
<CAPTION>
     FSC Class                           Description                                Category Code
     ---------                           -----------                                -------------
<S>                       <C>                                                       <C>
       D306               Systems Analysis and Design Systems Installation               S
       D308               Programming                                                    S
       D311               Conversion and Implementation Support                          S
       D316               Network Services' Project Management                           S
       D317               Data/Records Management                                        S
       D301               Resources and Facilities Management                            S
       D302               Database Planning and Design                                   S
</TABLE>

January 20, 1998                                                             TCS
<PAGE>   14
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    13

E.     JOB TITLES

JOB TITLE: PROGRAM MANAGER. TCS-O1

MINIMUM/GENERAL EXPERIENCE: Ten (10) years of progressive experience in large
scale computer/communications support activities such as computer operations,
data communications, network design, or maintenance activities. Specialized
experience includes Five (5) years of specific experience in managing the
overall operating functions of modem medium or large-scale computer environments
including responsibility for such activities as computer network operations,
hardware and software maintenance, customer support, and production control.
Must have proven expertise in the management and control of costs and resources
and demonstrated capability in managing multi-task delivery orders of this type
and complexity.

FUNCTIONAL RESPONSIBILITY: Organizes, directs and manages the contract's
operation and maintenance function. Manages the LAN/WAN computer support
operations such as network operations, system software maintenance, production
control, data entry, remote job entry, tape library, etc. Must have demonstrated
capability for oral and written communications with all levels of management.
Must have a thorough knowledge of the capabilities of applicable computer and
communications configurations. Meets with Government personnel and contractor
personnel to formulate and review delivery order plans and deliverable items.
Ensures conformance with delivery order schedules and costs.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline. A Master's Degree is
preferred.

JOB TITLE: SYSTEMS MANAGER. TCS-02

MINIMUM/GENERAL EXPERIENCE: Ten (10) years progressive experience in the
evaluation, design, and analysis of business or scientific applications using
database management systems or high level programming languages. Specialized
experience includes Five (5) years of specific experience managing business and
systems applications including requirements definition to ensure systems
integrity.

FUNCTIONAL RESPONSIBILITY: Performs and is responsible for overall systems
analysis, design, programming, documentation, performance evaluation, or
implementation of complex system applications and related Management Information
Systems/Automated Data Processing (MIS/ADP) systems concepts. Must have
demonstrated capability for oral and written communications with other levels of
management. Oversees all phases of the software development life cycle with
emphasis on the planning, analysis, testing and acceptance phases. Provides
management directions and solutions to integrate network management solutions
across communications forms, multi-network architectures, processing systems,
and network elements. This job title category may serve as a Delivery Order
Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individual's ability to accomplish projects/tasks through others.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems Engineering, or a related
scientific or technical discipline. A master's degree in one of the above
disciplines equals one year specialized and two years general experience.

January 20, 1998                                                             TCS
<PAGE>   15
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    14

JOB TITLE: SENIOR SYSTEMS ANALYST. TCS-03

MINIMUM/GENERAL EXPERIENCE: Seven (7) years progressive experience in the
analysis and design of business or scientific applications using database
management systems or high level programming languages. This job title category
may serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individuals ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Performs systems analysis, design, programming,
documentation, performance evaluation, or implementation of complex system
applications and related Management Information Systems/Automated Data
Processing (MIS/ADP) systems concepts for effective implementation. Participates
in all phases of the software development life cycle with emphasis on the
planning, analysis, testing and acceptance phases. Designs and prepares
technical reports and related documentation, and makes charts and graphs to
record results. Prepares and delivers presentations and briefings as required.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, or a related
scientific or technical discipline.

JOB TITLE: JUNIOR SYSTEMS ANALYST. TCS-04

MINIMUM/GENERAL EXPERIENCE: Three (3) years progressive experience in the
analysis and design of business or scientific applications using database
management systems or high level programming languages.

FUNCTIONAL RESPONSIBILITY: Perform duties assigned by the Senior Systems Analyst
on simple to moderately complex systems.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
in a related field.

JOB TITLE: SYSTEMS ADMINISTRATOR. TCS-05

MINIMUM/GENERAL EXPERIENCE: One (1) year experience administering multi-user,
shared-processor systems and data communications networks.

FUNCTIONAL RESPONSIBILITY: Monitor and coordinate all data system operations,
including security procedures, and liaison with end users. Ensure that necessary
system backups are performed and storage and rotation of backups is
accomplished. Monitor and maintain records of system performance and capacity to
arrange vendor services or other actions for reconfiguration and anticipate
requirements for system expansion. Assist managers to monitor and comply with
Government data requirements. Perform software development, user training,
network management and minor installation and repair of equipment.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
in a related field.

JOB TITLE: NETWORK MANAGER. TCS-06

MINIMUM/GENERAL EXPERIENCE: Ten (10) years experience in one or more of the
following areas: data communications engineering, data communications hardware
or software analysis, network administration or management, or data
communication equipment installation and maintenance. Knowledge of cable
including FDDI, FOLRL, and 10-Base T. Particularly desirable is experience
working with IBM's SNA with knowledge of the MVS operating system and SNA
protocols. Needs a good understanding of several of the following
protocols/technologies: X.25 and TCP/IP, SNA, Internet

January 20, 1998                                                             TCS
<PAGE>   16
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    15

Packet Exchange (IPX), SMDS, Frame Relay, ATM, SONET, Integrated Services
Digital Network (ISDN), Unisys DCA, Appletalk. This job title category may serve
as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Performs a variety of network management functions in
support of MIS services related to the operation, performance or availability of
data communications networks. Modifies command language programs, network start
up files, assigns/re-assigns network device logicals, analyzes network
performance and recommends adjustments to wide variety of complex network
management functions with responsibility for overall performance and
availability of networks. LAN/WAN consultant skilled in network analysis,
integration and tuning. Experience with cable/LAN meters, protocol analyzers,
Simple Network Management Protocol (SNMP) and Remote Monitoring (RMON) based
software products. Knowledge of Ethernet, FDDI and high speed WANs , routers,
bridges, and switches. Analyze client LANs/WANs, isolate source of problems,
recommend reconfiguration and implementation of new network hardware to increase
performance. Working knowledge of network operating systems. Modifies command
language programs, network start up files, assigns/re-assigns network device
logicals. Conducts load balancing efforts to achieve optimum device utilization
and network performance. Manages network E-mail functions. Establishes mail
boxes and monitors mail performance on the network. Coordinates with
communications engineering to resolve hardware problems. Works with customer and
operations staff in scheduling preventative and emergency maintenance
activities. May serve as Delivery Order Manager on one or more delivery orders.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Technology, Engineering, or a
related discipline. A Master's Degree is preferred. If applicable, shall be
certified as a network engineer for the specific network operating system as
defined in the Government delivery order request. The certification criteria are
determined by the network operating system vendor.

JOB TITLE: SENIOR NETWORK ENGINEER. TCS-07

MINIMUM/GENERAL EXPERIENCE: Seven (7) years of progressive experience in
planning, designing, implementation, and analyzing data or telecommunications
networks. This experience must have demonstrated knowledge of Ethernet, Fiber
Distributed Data Interface (FDDI) and a working knowledge of operating systems
including the MVS operating system and protocols such as Novell, NT, UNIX,
VINES, System Network Architecture (SNA) and Transmission Control
Protocol/Internet Protocol (TCP/IP). Must have experience with network
analysis/management tools and techniques and be familiar with Personal Computers
(PCs) in a client/server environment. Experience must include at least three
years experience with fiber optics, including Synchronous Optical Network
(SONET) - based architectures, and broadband networks using Switched
Multimegabit Data Service (SMDS) and Asynchronous Transfer Mode (ATM)
technologies. Must be familiar with IT technology and long distance and local
carrier management. This job title category may serve as a Delivery Order
Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individual's ability to accomplish projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Responsible for the design and implementation of
large data communications or telecommunications networks. Plans and monitors the
installation of communications circuits. Manage and monitor local area networks
and associated equipment (e.g.,

January 20, 1998                                                             TCS
<PAGE>   17
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    16

bridges, routers, modem pools, gateways, etc.) Conducts short and long-term
planning to meet communications requirements. Responsible for the design and
implementation of LAN/WANs using hub switching and router technology. Performs
hardware/software analyses to provide comparative data of performance
characteristics and suitability within the existing systems environment.
Prepares trade-off studies and evaluations for vendor equipment. Generates
network monitoring/performance reports for LAN/WAN utilization studies.
Recommends network design changes/enhancements for improved system availability
and performance.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering or other
related scientific or technical discipline.
A Master's Degree is preferred.

JOB TITLE: JUNIOR NETWORK ENGINEER. TCS-08

MINIMUM/GENERAL EXPERIENCE: Three (3) years of progressive experience in
planning, designing, implementation, and analyzing data or telecommunications
networks. Knowledge of the following protocols/technologies: X.25 and TCP/IP,
SNA, Internet Packet Exchange (IPX), SMDS, Frame Relay, ATM, SONET, Integrated
Services Digital Network (ISDN), Unisys DCA, Appletalk.

FUNCTIONAL RESPONSIBILITY: Perform similar duties as directed or instructed by
the senior network engineer. Conduct studies pertaining to network configuration
and monitor traffic patterns, protocols, peak usage, etc. Stays current with
technological changes.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering or other
related scientific or technical discipline.

JOB TITLE: NETWORK ADMINISTRATOR. TCS-09

MINIMUM/GENERAL EXPERIENCE: One (1) year of experience in one or more of the
following areas: data communications engineering, data communications hardware
or software analysis, network administration or management, data communication
equipment installation and maintenance, or computer systems administration and
management.

FUNCTIONAL RESPONSIBILITY: Performs a variety of network management functions
related to the operation, performance or availability of data communications
networks. Experience with cable/LAN meters, protocol analyzers, SNMP and RMON
based software products. Knowledge of Ethernet, FDDI and high speed WANs and
routers. Analyze client LANs/WANs, isolate source of problems, recommend
reconfiguration and implementation of new network hardware to increase
performance. Advanced knowledge of network operating systems. Modifies command
language programs, network start up files, assigns/re-assigns network device
logicals, participates in load balancing efforts throughout the network to
achieve optimum device utilization and performance. Establishes new user
accounts on the network granting access to required network files and programs.
Manages network E-mail functions. Establishes mail boxes and monitors mail
performance on the network. Troubleshoots network/user problems, presents
resolutions for implementation. Prepares a variety of network resource reports.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field, or two (2) years of college or university study
in a related field. If applicable, should be certified as a network
administrator for a specific network operating system as defined in the
Government delivery order request. Certification criteria are determined by the
network operating system vendor.

JOB TITLE: SENIOR NETWORK TECHNICIAN. TCS-lO

MINIMUM/GENERAL EXPERIENCE: Five (5) years experience in the following areas:
Installation, operation, and maintenance of data communication networks and
devices. This job title category may

January 20, 1998                                                             TCS
<PAGE>   18
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    17

serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Adds or exchanges externally connected PC accessories
and data communications equipment. Troubleshoots LANs/WANs and provides problem
resolution for PC and data communications hardware. Adds or replaces boards,
batteries, disks drives, and other PC components. Installs cabling for LANs,
WANs, etc. Attaches, detaches, or exchanges LAN cabling to workstations,
servers, network devices, telecommunications and data communications equipment.
Works independently, may provide supervision and guidance to 2 or more network
technicians.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field; or Technical School certificate of completion in
the data communications field including cable installation; or the equivalent
military training.

JOB TITLE: JUNIOR NETWORK TECHNICIAN. TCS-l1

MINIMUM/GENERAL EXPERIENCE: A minimum of two (2) years of experience installing
and maintaining shared resources for communication networks and devices.

FUNCTIONAL RESPONSIBILITY: Perform similar duties as directed or instructed by
the senior network engineer. Adds or exchanges externally connected PC
accessories and data communications equipment including cables, boards,
batteries, disks drives, and other PC components. Attaches, detaches, or
exchanges LAN cabling to workstations, servers, network devices,
telecommunications and data communications equipment.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field; or Technical School certificate of completion in
the data communications field including cable installation; or the equivalent
military training.

JOB TITLE: COMPUTER REPAIR TECHNICIAN. TCS-12

MINIMUM/GENERAL EXPERIENCE: Five (5) years experience in the area of
troubleshooting and maintenance of ADP equipment (e.g., personal computers,
laptops, minicomputers, printers, monitors, modems, etc.). This job title
category may serve as a Delivery Order Manager on one or more delivery orders.
Management experience is required. Delivery Order Managers must have supervisory
or project leader experience. This experience is not in addition to the
experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Responds to user help calls referred by the Help
Desk. Diagnoses end-user equipment problems. Installs and relocates end-user
devices. Repairs and services end-user equipment. Performs board-level
maintenance and swap out of component parts for Automated Data Processing
Equipment (ADPE), including PCs, printers, plotters, etc. Performs tests to
locate problems using diagnostic software and electronic test equipment.
Resolves I/O errors and conflicts, and ensures compatibility between components.
Repairs/replaces broken or non-functional parts that prevent proper operation of
mechanical devices. Tests ADPE to validate functionality. Installs/relocates
hardware and software at a designated location and assists users with initial
operating instructions. Works independently.

MINIMUM EDUCATION: High school diploma. Two (2) years technical training in
electronic equipment repair or a related field.

January 20, 1998                                                             TCS
<PAGE>   19
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    18

JOB TITLE: COMPUTER RESOURCES ADMINISTRATOR. TCS-13

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in managing and
controlling the configuration of computer equipment.

FUNCTIONAL RESPONSIBILITY: Performs a wide variety of computer resource
management functions in support of computer operations including monitoring and
maintaining the configurations of PC's. Manages system accounts, diagnoses
system problems, analyzes system performance, and performs system tuning.
Coordinates with the Help Desk to resolve user problems. Performs account
maintenance functions including the establishment of new user accounts. Helps
minimize the impact of service interruptions by initiating recovery processes.
Monitors and records hardware, software, and communications performance
utilization statistics. Projects plans for increases/decreases in resources
requirements and prepares a variety of computer resource reports.

MINIMUM EDUCATION: An Associate's degree from an accredited college in a related
field.

JOB TITLE: DATA BASE MANAGEMENT SPECIALIST. TCS-14

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Specifies proper types of files organization, indexing methods, and
security procedures. Advises contractor project teams on the design of complex
data bases (e.g., schema and subschema details). Defines specialized aspects of
user's data base administrator documentation. Performs detailed comparisons of
various data base systems. Performs duties in a complex, distributed,
heterogeneous computing environment, which may involve different types of
hardware platforms, operating systems applications, and network environments.
Provides expertise in data storage systems. Develops backup and archival
policies and procedures. Configures storage systems software to meet
requirements. Performs administration tasks (installing, maintaining,
monitoring, recovering, rebuilding, upgrading, patching and performance tuning).
Implements software solutions for performance enhancement, operator interface,
and increased user capability. Must have experience in DB2, Oracle, Informix, or
Sybase.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: OFFICE AUTOMATION SPECIALIST. TCS-15

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders.

January 20, 1998                                                             TCS
<PAGE>   20
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    19

Management experience is required. Delivery Order Managers must have supervisory
or project leader experience. This experience is not in addition to the
experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Applies current technology in providing MIS solutions. Provides highly
technical expertise in providing business application solutions. Must have a
comprehensive understanding of hardware/software and communication environments
to include: client/server technology, host/mainframe technology, IS, and related
peripheral equipment.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: CONFIGURATION MANAGEMENT SPECIALIST. TCS-16

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Establishes and enforces procedures to ensure that software products
are reviewed, approved, and baselined at the appropriate points in their life
cycles. Ensures that the proper documentation is available to deploy and
maintain each version of a software product. Responsible for data management
integrity.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: COMPUTER GRAPHICS SPECIALIST. TCS-17

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category.

January 20, 1998                                                             TCS
<PAGE>   21
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    20

Project leader experience is experience that demonstrates an individual's
ability to accomplish projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Provides expertise on the use of graphics software and hardware
capabilities. Evaluates and recommends new graphics products and techniques.
Provides technical support to programmers and users on the maintenance,
operations, integration, use, and generation of graphics and graphic tools.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: SYSTEMS SOFTWARE SPECIALIST. TCS-18

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders.
 Management experience is required. Delivery Order Managers must have
supervisory or project leader experience. This experience is not in addition to
the experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Evaluates systems software and recommends specific changes in
procedures. Reviews computer software systems communications and response needs
and determines operating systems and languages needed to support them. Performs
systems software "fine-tuning", workload analysis, load balancing, etc. Performs
authorized maintenance of a highly specialized nature on systems software,
compilers, assemblers, and utility systems. Oversees total data
processing/communications system restoration following significant system
crashes. Determines system performance capabilities, diagnoses system failures
and degradation's and isolates the failure or degradation as to cause.
Integrates various types of software (general applications, scientific and
special-purpose applications, operating systems, compilers) into distributed
computing environment. Acts as the system manager for the computing environment
including server system administration. Develops systems software (scripts and
tools) to assist in management of computing environment. Monitors software usage
and provides statistics on such. Must have experience in CICS, MVS, JES2, TSO,
AIX, or UNIX.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

January 20, 1998                                                             TCS
<PAGE>   22
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    21

JOB TITLE: ADP HARDWARE SPECIALIST. TCS-19

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders.
 Management experience is required. Delivery Order Managers must have
supervisory or project leader experience. This experience is not in addition to
the experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Determines feasible hardware alternatives in client server
environments. Reviews computer systems in terms of capabilities and makes
recommendations for improved utilization. Prepares or directs preparation of
reports concerning hardware. Prepares or participates in preparing functional
requirements and specification for hardware acquisitions.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: HELP DESK COORDINATOR. TCS-20

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in a business ADP
environment with emphasis on microcomputer hardware and applications.
Specialized experience includes One (1) year of specific experience in one or
more of the following areas: applications support, hardware/software analysis,
network administration, computer systems administration, diagnostic
troubleshooting of computer systems peripherals and associated devices or
communication media as specified in the delivery order. This job title category
may serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Staffs the Help Desk. Answers user's calls and
records all necessary information. Offers assistance over the phone and follows
the problem through to resolution. Assigns problems to the appropriate area for
resolution. Logs and reports data on the number and types of calls received.

MINIMUM EDUCATION: High school diploma.

JOB TITLE: TECHNICAL WRITER. TCS-21

MINIMUM/GENERAL EXPERIENCE: Three (3) years of technical writing or
documentation experience. Specialized experience includes One (1) year of
specialized ADP technical documentation experience.

FUNCTIONAL RESPONSIBILITY: Prepares and edits IT/ADP documentation incorporating
information provided by user, specialist, analyst, programmer, and operations
personnel. Must have a substantial knowledge of the capabilities of computer
systems. Duties include writing, editing, and graphic presentation of technical
information for both technical and non-technical personnel. Interprets technical

January 20, 1998                                                             TCS
<PAGE>   23
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    22

documentation standards and prepares documentation according to standards. Must
be capable of working independently. This category provides incidental support
for other approved requirements.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university or two (2) years of college or university study in a related
discipline.

JOB TITLE: COMPUTER GRAPHICS ILLUSTRATOR. TCS-22

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in creating and
generating graphics using computer graphics software.

FUNCTIONAL RESPONSIBILITY: Duties will include recommending various methods of
portraying ideas and the design, layout, and generation of a variety of
graphical presentation products from rough drafts or outlines. Must possess
skill in the preparation of graphs, charts and text data for visual
presentations. Duties will be performed using complex automated color graphic
equipment and PC software packages. A basic knowledge of graphic equipment,
graphic software, file formats and graphic terms is required.

MINIMUM EDUCATION: High school diploma.

JOB TITLE: SENIOR PROGRAMMER. TCS-23

MINIMUM/GENERAL EXPERIENCE: Must have a minimum of fours years of experience in
one or more of the following COBOL II, C, C++, Customer Information Control
System (CICS), and HTML/JAVA. This job title category may serve as a Delivery
Order Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individuals ability to accomplish projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Participates in all phases of software development with emphasis on
the programming, testing and documentation acceptance phases. Designs and
prepares technical reports and related documentation.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

JOB TITLE: CLERK. TCS-24

MINIMUM/GENERAL EXPERIENCE: Two (2) years experience in support administrative
position requiring PC skills; telephone skills; and administrative, typing, and
reproduction tasks.

FUNCTIONAL RESPONSIBILITY: Responsible for typing, duplication, binding, and
delivery of documentation and briefing material for delivery to the Government.

MINIMUM EDUCATION: High School Diploma

January 20, 1998                                                            TCS

<PAGE>   24
GSA Schedule Contract Number GS-35F-4655H                                     24
--------------------------------------------------------------------------------

                           TeleCommunication Systems            20 January, 1998

                   GSA Schedule Contract Number GS-35F-4655H
                      GSA Multiple Award Schedule Program
                                  FSC Group 70
                       Support Data for Labor Categories
                       On-Site (Government Facility) Rate

<TABLE>
                                                      Burdened
Order                                                  Hourly
Number         Labor Category                           Rate
--------------------------------------------------------------
<S>            <C>                                   <C>
TCS-01 ON      Program Manager                         $72.71
TCS-02 ON      Systems Manager                         $71.84
TCS-03 ON      Sr. Systems Analyst                     $51.28
TCS-04 ON      Jr. Systems Analyst                     $29.62
TCS-05 ON      Systems Administrator                   $52.24
TCS-06 ON      Network Manager                         $75.86
TCS-07 ON      Sr. Network Engineer                    $58.60
TCS-08 ON      Jr. Network Engineer                    $33.26
TCS-09 ON      Network Administrator                   $47.89
TCS-10 ON      Sr. Network Technician                  $44.87
TCS-11 ON      Jr. Network Technician                  $22.18
TCS-12 ON      Computer Repair Technician              $19.36
TCS-13 ON      Computer Resources Administrator        $48.76
TCS-14 ON      Data Base Management Specialist         $68.03
TCS-15 ON      Office Automation Specialist            $51.21
TCS-16 ON      Configuration Management Specialist     $48.76
TCS-17 ON      Computer Graphics Specialist            $35.47
TCS-18 ON      Systems Software Specialist             $53.22
TCS-19 ON      ADP Hardware Specialist                 $53.26
TCS-20 ON      Help Desk Coordinator                   $39.36
TCS-21 ON      Technical Writer                        $38.09
TCS-22 ON      Computer Graphics Illustrator           $22.65
TCS-23 ON      Sr. Programmer                          $46.99
TCS-24 ON      Clerk                                   $24.84
</TABLE>

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   25
GSA Schedule Contract Number GS-35F-4655H                                    23
-------------------------------------------------------------------------------

F. PRICING

                           TeleCommunication Systems           20 January, 1998

                   GSA Schedule Contract Number GS-35F-4655H
                      GSA Multiple Award Schedule Program
                                  FSC Group 70
                       Support Data For Labor Categories
                      Off-Site (Contractor Facility) Rate

<TABLE>
<CAPTION>
                                                                      Burdened
 Order                                                                 Hourly
Number         Labor Category                                           Rate
-------------------------------------------------------------------------------
<S>            <C>                                                    <C>
TCS-01 OFF     Program Manager                                          $88.10
TCS-02 OFF     Systems Manager                                          $87.04
TCS-03 OFF     Sr. Systems Analyst                                      $61.28
TCS-04 OFF     Jr. Systems Analyst                                      $35.51
TCS-05 OFF     Systems Administrator                                    $63.31
TCS-06 OFF     Network Manager                                          $91.92
TCS-07 OFF     Sr. Network Engineer                                     $70.03
TCS-08 OFF     Jr. Network Engineer                                     $40.30
TCS-09 OFF     Network Administrator                                    $58.03
TCS-10 OFF     Sr. Network Technician                                   $54.37
TCS-11 OFF     Jr. Network Technician                                   $26.88
TCS-12 OFF     Computer Repair Technician                               $23.47
TCS-13 OFF     Computer Resources Administrator                         $59.09
TCS-14 OFF     Data Base Management Specialist                          $68.03
TCS-15 OFF     Office Automation Specialist                             $62.04
TCS-16 OFF     Configuration Management Specialist                      $59.09
TCS-17 OFF     Computer Graphics Specialist                             $42.98
TCS-18 OFF     Systems Software Specialist                              $64.84
TCS-19 OFF     ADP Hardware Specialist                                  $64.53
TCS-20 OFF     Help Desk Coordinator                                    $47.68
TCS-21 OFF     Technical Writer                                         $45.52
TCS-22 OFF     Computer Graphics Illustrator                            $26.27
TCS-23 OFF     Sr. Programmer                                           $56.94
TCS-24 OFF     Clerk                                                    $29.78

</TABLE>

-------------------------------------------------------------------------------
January 20, 1998                                                            TCS
<PAGE>   26
            TELECOMMUNICATION SYSTEMS, INC. PRICE LIST - LABOR RATES

<TABLE>
<CAPTION>

1998 OFF-SITE
-------------------------------------------------------------------------------
               FSC GROUP 70                   IFF         SCHEDULE 70
          LABOR CATEGORY                           1%        RATE
<S>                                     <C>       <C>     <C>
Program Manager                         $87.23    $0.87     $88.10
Systems Manager                         $86.18    $0.86     $87.04
Sr. Systems Analyst                     $60.67    $0.61     $61.28
Jr. Systems Analyst                     $35.16    $0.35     $35.51
Systems Administrator                   $62.68    $0.63     $63.31
Network Manager                         $91.01    $0.91     $91.92
Sr. Network Engineer                    $69.34    $0.69     $70.03
Jr. Network Engineer                    $39.90    $0.40     $40.30
Network Administrator                   $57.46    $0.57     $58.03
Sr. Network Technician                  $53.83    $0.54     $54.37
Jr. Network Technician                  $26.61    $0.27     $26.88
Computer Repair Technician              $23.24    $0.23     $23.47
Computer Resources Administrator        $58.50    $0.59     $59.09
Data Base Management Specialist         $67.36    $0.67     $68.03
Office Automation Specialist            $61.43    $0.61     $62.04
Configuration Management Specialist     $58.50    $0.59     $59.09
Computer Graphics Specialist            $42.55    $0.43     $42.98
Systems Software Specialist             $63.84    $0.64     $64.48
ADP Hardware Specialist                 $63.89    $0.64     $64.53
Help Desk Coordinator                   $47.21    $0.47     $47.68
Technical Writer                        $45.07    $0.45     $45.52
Computer Graphics Illustrator           $26.01    $0.26     $26.27
Sr. Programmer                          $56.38    $0.56     $56.94
Clerk                                   $29.49    $0.29     $29.78

</TABLE>
<PAGE>   27
            TeleCommunication Systems, Inc. Price List - Labor Rates

<TABLE>
<CAPTION>
1998 On-Site
-------------------------------------------------------------------------
                      FSC Group 70                 IFF    Schedule 70
         Labor Category                             1%       Rate
<S>                                     <C>       <C>       <C>
Program Manager                         $ 71.99   $ 0.72    $ 72.71
Systems Manager                         $ 71.13   $ 0.71    $ 71.84
Sr. Systems Analyst                     $ 50.77   $ 0.51    $ 51.28
Jr. Systems Analyst                     $ 29.33   $ 0.29    $ 29.62
Systems Administrator                   $ 51.72   $ 0.52    $ 52.24
Network Manager                         $ 75.11   $ 0.75    $ 75.86
Sr. Network Engineer                    $ 58.02   $ 0.58    $ 58.60
Jr. Network Engineer                    $ 32.93   $ 0.33    $ 33.26
Network Administrator                   $ 47.42   $ 0.47    $ 47.89
Sr. Network Technician                  $ 44.43   $ 0.44    $ 44.87
Jr. Network Technician                  $ 21.96   $ 0.22    $ 22.18
Computer Repair Technician              $ 19.17   $ 0.19    $ 19.36
Computer Resources Administrator        $ 48.28   $ 0.48    $ 48.76
Data Base Management Specialist         $ 67.36   $ 0.67    $ 68.03
Office Automation Specialist            $ 50.70   $ 0.51    $ 51.21
Configuration Management Specialist     $ 48.28   $ 0.48    $ 48.76
Computer Graphics Specialist            $ 35.12   $ 0.35    $ 35.47
Systems Software Specialist             $ 52.69   $ 0.53    $ 53.22
ADP Hardware Specialist                 $ 52.73   $ 0.53    $ 53.26
Help Desk Coordinator                   $ 38.97   $ 0.39    $ 39.36
Technical Writer                        $ 37.71   $ 0.38    $ 38.09
Computer Graphics Illustrator           $ 22.43   $ 0.22    $ 22.65
Sr. Programmer                          $ 46.52   $ 0.47    $ 46.99
Clerk                                   $ 24.59   $ 0.25    $ 24.84
</TABLE>

                                       2
<PAGE>   28
                                  GSA SCHEDULE

                       AUTHORIZED FEDERAL SUPPLY SERVICE
                   INFORMATION TECHNOLOGY SCHEDULE PRICELIST
                     GENERAL PURPOSE COMMERCIAL INFORMATION
                  TECHNOLOGY EQUIPMENT, SOFTWARE AND SERVICES

                            SPECIAL ITEM NO. 132-51

                                  IT SERVICES

FPDS CODE                          DESCRIPTION
____________________________________________________________________________
  D301           IT Facility Operation and Maintenance
  D302              IT Systems Development Services
  D306                IT Systems Analysis Services
  D308                    Programming Services
  D311                 IT Data Conversion Services
  D316                It Network Management Services
  D317  Automated News Services, Data Services, or Other Information Services

                   [TCS TELECOMMUNICATION SYSTEMS, INC. Logo]
                      Enabling Convergent Technologies(TM)

                           275 WEST STREET, SUITE 400
                              ANNAPOLIS, MD 21401
                          PHONE NUMBER: (410) 263-7616
                           FAX NUMBER: (410) 263-7616
                        INTERNET: http://www.tcsnet.net

                         Contract Number: GS-35F-4655H

        Period Covered by Contract: January 20, 1998 - January 19, 2003

    Pricelist current through Modification #PCO-03, dated December 19, 1998

                        GENERAL SERVICES ADMINISTRATION

                             FEDERAL SUPPLY SERVICE

  Products and ordering information in this Authorized ADP Schedule Pricelist
          is also available on the GSA ADVANTAGE! System. Agencies can
browse GSA ADVANTAGE! by accessing GSA's Home Page via Internet at www.gsa.gov.
<PAGE>   29
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
      PARAGRAPH TITLE                                                          PAGE
      ---------------                                                          ----
<S>                                                                             <C>
A. TCS Corporate Overview ..................................................... 3

B. Specific Category Code S Services Offered .................................. 6

C. Information For Ordering Offices ........................................... 7

D. Terms and Conditions Applicable to SIN 132-51 .............................. 15

E. Job Titles ................................................................. 23

F. Pricing .................................................................... 34

G. Small Business Participation ............................................... 36

H. BPA Format ................................................................. 37

I. Teaming Arrangements ....................................................... 40
</TABLE>

January 20, 1998                                                            TCS
<PAGE>   30
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      3

A.    TCS CORPORATE OVERVIEW

Achieving your goals in an age of shrinking budgets, reduced staff and rapidly
changing technology takes skill and creativity. It requires a knowledgeable
collaborator with the vision to help you navigate the management, financial and
technology choices you face every day.

TeleCommunication Systems, Inc. (TCS), an advanced technology firm, possesses
the management, systems engineering and integration skills to pilot you through
the most demanding challenges and help you attain your organizational goals.

Founded in 1987, TCS rapidly grew by delivering high quality, cost-competitive
communications solutions. Our success in this area, combined with customer
demand, propelled our expansion into complementary disciplines.

Today, TCS provides systems integration capabilities spanning communication,
information, and imaging technologies. We also provide systems engineering
services across a broad market, leveraging our experience in complex electronic
systems and large-scale facility relocation programs.

Our competitive advantage centers on a staff of technology experts,
professionals experienced in planning, managing and developing customer
solutions. Further, TCS personnel work to become valuable members of your team.
Their ultimate goal is to ensure your long-term success.

EXPERT HELP IN THE AGE OF INTEGRATION

Today's business environment requires a greater level of integration than ever
before. No matter how diverse the technology-voice, networking, imaging, video,
database, or electronic mail-users want their resources brought together into a
seamless, synergistic environment.

From the start, TCS has provided sophisticated connectivity and integration
solutions to our customers. We excel at blending distinct technologies into
innovative, coherent and practical systems that are tailored to you needs.

COMMUNICATIONS TECHNOLOGY

As voice, video, and data converge with wireline and wireless technologies, TCS
can deliver real-time, reliable and secure worldwide communications. Our breadth
of experience allows us to provide integrated solutions that truly fit your
unique requirements.

TCS connectivity services include design, installation, integration, test
operations and management for data, voice, and video networks.

For telephone systems, TCS Telecommunications Management Services help you
control this increasingly complex resource more effectively. TCS develops custom
software management tools and systems that enhance our services supporting
policy; planning; audit; traffic analysis/modeling; billing control; and Move,
Add, Change tasks.

TCS is a leader in the field of telecommunication asset audit, reconciliation,
and credit/refund negotiation, leveraging automated tools and years of
experience in both the corporate and Government environments.

TCS Computer Telephony Integration (CTI) systems allow organizations to
intelligently direct calls, provide 24-hour service, minimize wait times and,
overall, provide a more effective, content-rich phone response to customers.
Combining CTI with Interactive Voice Response, TCS provides more powerful
capabilities to improve customer service.

January 20, 1998                                                             TCS
<PAGE>   31
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      4

Advanced Intelligent Network (AIN) applications are developed by TCS on the
Lucent Technologies Service Node and Service Control Point to work within public
switched telephone networks or Wireless Intelligent Networks (WIN). TCS
applications create new "intelligent" services for phone companies, helping to
differentiate their offering in a highly competitive market.

INFORMATION TECHNOLOGY

From a desktop package to an enterprise-wide multimedia application, from
migration of legacy systems to a ground-up design effort, TCS implements office
automation and information technology solutions that fit your needs and exceed
you expectations.

Skilled TCS professionals leverage their in-depth knowledge of distributed
architecture; the Internet; database systems; software development; and voice,
video, and data networking to create applications that span your organization
and give you better access to information.

TCS systems integrators keep pace of the latest, most stable technologies for
you. Using an open architecture approach, TCS builds on industry-standard
products, client/server environments and object technologies. In this way, we
create applications that are easily sustained, expanded, and upgraded.

TCS is experienced in providing Y2K services, examining your entire
organization, identifying and prioritizing your potential points of failure, and
planning and managing the required corrective actions to ensure your continued
operation into the next century.

TCS services the life-cycle of your application from Business Process Analysis
(BPA) and integration to operation and maintenance. An on-staff team of software
developers ensures that your application is custom-tailored to your specific
needs.

IMAGING & WORKGROUP TECHNOLOGIES

TCS imaging systems bring diverse information into a single, readily accessible
electronic resource. Handwritten documents, photos, and drawings can be
accurately captured in digital form for virtually instantaneous information
access. TCS supports the conversion of your business processes to Electronic
Data Interchange (EDI) standardization, helping you to reduce costs and increase
responsiveness.

TCS workflow and workgroup systems automate document movement throughout the
organization and make it possible for dispersed members of any group to share
resources and information transparently.

TCS imaging and information systems engineers are experienced at integrating
diverse, legacy, imaging and workgroup systems into a cohesive, enterprise-wide,
system, providing data access across your entire WAN.

SYSTEMS ENGINEERING & MANAGEMENT

TCS Systems Engineering and Management capabilities incorporate the range of
today's technologies. With experienced managers and established methodologies,
TCS provides a total program strategy to meet your most sophisticated
requirements.

SYSTEMS ENGINEERING

TCS systems engineering services support complex platforms and associated
systems throughout their life-cycle. TCS provides acquisition, configuration
management, logistics, provisioning, cost analysis, and reliability and
maintainability capabilities for a variety of platforms.

January 20, 1998                                                             TCS
<PAGE>   32
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      5

FINANCIAL MANAGEMENT

The company's financial management capabilities include reporting, case
reconciliation and audit, life-cycle modeling, trend analysis, and risk
management to improve oversight of your complex programs.

FACILITY RELOCATION

TCS integrates advanced technology with expert management skills to provide
specialized relocation services for major office or industrial operations. TCS
offers detailed asset management, risk and environmental assessment, space
planning, cost and engineering analysis, systems certification and BPA. Whether
moving your current facility or establishing a new operational base, TCS will
help you keep costs down and disruption to a minimum.

THE BEST RESOURCES, THE BEST RESULTS

TCS delivers the best results because we provide the best talent. Our
professionals possess the highest qualifications in their disciplines, combining
advanced degrees with in-depth work experience. We seek out and hire high
caliber people then reinforce their skills through continued technical and
management training.

TCS technology resources include design and integration facilities. Our
technology laboratories provide an environment to test and implement
interoperability; object-oriented software development; imaging; and voice,
video and data integration.

CREATIVE APPROACHES, STANDARDIZED METHODOLOGY

TCS professional take innovative approaches to design customer solutions. To
safeguard the viability and appropriateness of their work, TCS uses a team
project development process.

The TCS process relies on established milestones, each with specific criteria
that must be met before a project can proceed to the next phase. TCS management,
the customer, and developers all participate in defining, tracking and reviewing
project development. The process focuses decision making and ensures that the
project stays true to your goals.

GUARANTEED SUCCESS

At TCS, our strategy is to succeed through long-term customer satisfaction. We
take every measure to exceed your expectations, helping you attain your goals in
today's demanding business environment.

January 20, 1998                                                             TCS
<PAGE>   33
GSA Schedule Contract Number GS-35F-4655H                                      6
--------------------------------------------------------------------------------
B. Specific Category Services Offered

FPDS Class D301 -- IT Facility Operation and Maintenance
+    Program Management
+    Operations & Maintenance
+    Automatic Call Distribution
+    Call Center Management
+    Interactive Voice Response
+    Advanced Intelligent Networks
+    Computer/Telephony Integration
+    Telecom Asset Audit, Reconciliation, & Credit Refund Negotiation
+    Help Desk
+    Video Teleconferencing
+    Traffic Analysis/Modeling
+    Move, Add, Change (MAC)
+    Cost/Finance Analysis
+    Systems Modeling, Analysis
+    Facility Planning
+    Acquisition Management
+    Integrated Logistics Support (ILS)
+    Reliability/Maintainability
+    Configuration Management
+    Energy Management
+    Life Cycle Support
+    Facility Relocation

FPDS Class D302 -- IT Systems Development Services

+    Database Design/Management
+    Y2K Solutions
+    Internet Services
+    Test and Evaluation (T&E)
+    Training

FPDS Class D306 -- IT Systems Analysis Services

+    System Integration & Installation
+    Business Process Analysis (BPA)
+    Technology Assessment
+    Y2K Solutions
+    Cost/Financial Analysis
+    Systems Modeling, Analysis
+    Integrated Logistics Support (ILS)
+    Reliability/Maintainability
+    Configuration Management
+    Life Cycle Support
+    Test and Evaluation (T&E)
+    Training

FPDS Class D308 -- Programming Services

+    Software Engineering
+    Software Testing & Validation
+    Y2K Solutions
+    Internet Services
+    Test and Evaluation (T&E)
+    Training

FPDS Class D311 -- IT Data Conversion Services

+    Program Management
+    Legacy Systems Migration
+    Y2K Solutions
+    Test and Evaluation (T&E)
+    Training

FPDS Class D316 -- IT Network Management Services

+    Program Management
+    Network Design & Installation
+    Network Management
+    Operations & Maintenance
+    Help Desk
+    Internet Services
+    Systems Modeling, Analysis
+    Configuration Management
+    Test and Evaluation (T&E)
+    Training

FPDS Class D317 -- Automated News Services, Data Services, or Other Information
     Services
+    Electronic Document Management
+    Workflow Systems
+    Workgroup Systems
+    Enterprise Document Management
+    Training

-------------------------------------------------------------------------------
January 20, 1998                                                            TCS
<PAGE>   34
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      7
--------------------------------------------------------------------------------

C. INFORMATION FOR ORDERING OFFICES

SPECIAL NOTICE TO AGENCIES:

                          SMALL BUSINESS PARTICIPATION

SBA strongly supports the participation of small business concerns in the
Federal Supply Schedules Program. To enhance Small Business Participation SBA
policy allows agencies to include in their procurement base and goals, the
dollar value of orders expected to be placed against the Federal Supply
Schedules, and to report accomplishments against these goals.

For orders exceeding the micropurchase threshold, FAR 8.404 requires agencies to
consider the catalogs/pricelists of at least three schedule contractors or
consider reasonably available information by using the GSA Advantage! (TM)
on-line shopping service (www.fss.gsa.gov). The catalogs/pricelists, GSA
Advantage! (TM) and the Federal Supply Service Home Page (www.fss.gsa.gov)
contain information on a broad array of products and services offered by small
business concerns.

This information should be used as a tool to assist ordering activities in
meeting or exceeding established small business goals. It should also be used as
a tool to assist in including small, small disadvantaged, and women-owned small
businesses among those considered when selecting pricelists for a best value
determination.

For orders exceeding the micropurchase threshold, customers are to give
preference to small business concerns when two or more items at the same
delivered price will satisfy their requirement.

--------------------------------------------------------------------------------
1     GEOGRAPHIC SCOPE OF CONTRACT:

            48 contiguous states, and the District of Columbia, Alaska, Hawaii,
            and the Commonwealth of Puerto Rico.
--------------------------------------------------------------------------------

2.    CONTRACTORS ORDERING ADDRESS AND PAYMENT INFORMATION:

(a)   For computer-to-computer EDI orders, the below named representative should
      be contact regarding establishment of an EDI interface:
--------------------------------------------------------------------------------

            Drew Morin
            TeleCommunication Systems, Inc.
            275 West St., Suite 400
            Annapolis, MD 21401
            (410) 280-1203
--------------------------------------------------------------------------------
(b)   For orders by facsimile transmission, orders should be forwarded to:
--------------------------------------------------------------------------------
            410/263-7617
--------------------------------------------------------------------------------
(c)   For mailed-orders, paper form orders should be mailed to:
--------------------------------------------------------------------------------
            TeleCommunication Systems, Inc.
            275 West St., Suite 400
            Annapolis, MD 21401
--------------------------------------------------------------------------------
(d)   TCS is not marketing through dealers, and no dealers will be participating
      in this contract.
--------------------------------------------------------------------------------
(e)   The payment address to which Government checks should be mailed for
      payment of proper invoices submitted under this contract is:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   35
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      8
--------------------------------------------------------------------------------

            TeleCommunication Systems, Inc.
            275 West St., Suite 400
            Annapolis, MD 21401
--------------------------------------------------------------------------------

(f)   Contractors are required to accept the Government purchase card for
      payments equal to or less than the micro-purchase threshold for oral or
      written delivery orders. Government purchase cards will be acceptable for
      payment above the micro-purchase threshold. In addition, bank account
      information for wire transfer payments will be shown on the invoice
--------------------------------------------------------------------------------

(g)   The telephone number(s) that can be used by ordering agencies to obtain
      technical and/or ordering assistance are:
--------------------------------------------------------------------------------
            Technical Assistance    Mr. D.Morin   (410) 280-1203

            Ordering Assistance     Mr. B. White  (410) 280-1224
--------------------------------------------------------------------------------
3.    LIABILITY FOR INJURY OR DAMAGE

      The Contractor shall not be liable for any injury to Government personnel
      or damage to Government property arising from the use of equipment
      maintained by the Contractor, unless such injury or damage is due to the
      fault or negligence of the Contractor.
--------------------------------------------------------------------------------
4.    STATISTICAL DATA FOR GOVERNMENT ORDERING OFFICE COMPLETION OF STANDARD
      FORM 279:
--------------------------------------------------------------------------------
      Block 9: G. Order/Modification Under Federal Schedule

      Block 16: Contractor Establishment Code (DUNS): 19-697-0503

      Block 30: Type of Contractor: B. Other Small Business

      Block 31: Woman-Owned Small Business: No

      Block 36: Contractor's Taxpayer Identification Number (TIN):  52-1526369
--------------------------------------------------------------------------------
4a.   CAGE CODE: OHAL7
--------------------------------------------------------------------------------
5.    FOB: Destination
--------------------------------------------------------------------------------
6.    COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULES)
--------------------------------------------------------------------------------
(a)   Time Of Delivery. TCS shall deliver to destination within the number of
      calendar days after receipt of order (ARO), as set forth below:

<TABLE>
<CAPTION>
       ITEMS OR GROUPS OF ITEMS                           DELIVERY TIME
          (SIN OR NOMENCLATURE)                            (DAYS ARO)
<S>                                           <C>
                 132-51                       As negotiated per task/delivery order
</TABLE>
--------------------------------------------------------------------------------
(b)   Urgent Requirements. When the Federal Supply Schedule contract delivery
      period does not meet the bona fide urgent delivery requirements of an
      ordering agency, agencies are encouraged, if time permits, to contact the
      contractor for the purpose of obtaining accelerated delivery. The
      contractor shall replay to the inquiry within 3 workdays after receipt.
      (Telephonic replies shall be confirmed by the contractor in writing.) If
      the contractor offers an accelerated delivery time acceptable to the
      ordering agency, any order(s) placed pursuant to the agreed upon
      accelerated delivery time frame shall be delivered within this shorter
      delivery time and in accordance with all other terms and conditions of the
      contract.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   36
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                      9
--------------------------------------------------------------------------------

7.    DISCOUNTS:

      a.    Prompt Payment: 0 % - N/A days from receipt of invoice or date of
            acceptance, whichever is later.

      b.    Quantity: None

      c.    Dollar Volume: None

      d.    Government Educational Institutions: None

      e.    Discount for use of Government Commercial Credit Card: None

      f.    Other: As negotiated per task/delivery order
--------------------------------------------------------------------------------
8.    TRADE AGREEMENTS ACT OF 1979, AS AMENDED:

      All items are U.S. made end products, designated country end products,
      Caribbean Basin country end products, Canadian end products, or Mexican
      end products as defined in the Trade Agreements Act of 1979, as amended.
--------------------------------------------------------------------------------
9.    STATEMENT CONCERNING AVAILABILITY OF EXPORT PACKING: Not Applicable
--------------------------------------------------------------------------------
10.   SMALL REQUIREMENTS: THE MINIMUM DOLLAR VALUE OF ORDERS TO BE ISSUED IS:
      $2,500
--------------------------------------------------------------------------------
11.   MAXIMUM ORDER: (ALL DOLLAR AMOUNTS ARE EXCLUSIVE OF ANY DISCOUNT FOR
      PROMPT PAYMENT.)

a.    SPECIAL ITEM 132-51 - IT SERVICES

      The maximum dollar value per order will be $500,000 for all IT Services.

12.   USE OF FEDERAL SUPPLY SERVICE INFORMATION TECHNOLOGY SCHEDULE CONTRACTS.
IN ACCORDANCE WITH FAR 8.404:

      Orders placed pursuant to a Multiple Award Schedule (MAS), using the
      procedures in FAR 8.404, are considered to be issued pursuant to full and
      open competition. Therefore, when placing orders under Federal Supply
      Schedules, ordering offices need not seek further competition, synopsize
      the requirement, make a separate determination of fair and reasonable
      pricing, or consider small business set-asides in accordance with subpart
      19.5. GSA has already determined the prices of items under schedule
      contracts to be fair and reasonable. By placing an order against a
      schedule using the procedures outlined below, the ordering office has
      concluded that the order represents the best value and results in the
      lowest overall cost alternative (considering price, special features,
      administrative costs, etc.) to meet the Government's needs.

a.    ORDERS PLACED AT OR BELOW THE MICRO-PURCHASE THRESHOLD. Ordering offices
      can place orders at or below the micro-purchase threshold with any Federal
      Supply Schedule Contractor.

b.    ORDERS EXCEEDING THE MICRO-PURCHASE THRESHOLD BUT NOT EXCEEDING THE
      MAXIMUM ORDER THRESHOLD. Orders should be placed with the Schedule
      Contractor that can provide the supply or service that represents the best
      value. Before placing an order, ordering offices should consider
      reasonably available information about the supply or service offered under
      MAS contracts by using the "GSA Advantage!" on-line shopping service, or
      by reviewing the catalogs/pricelists of at least three Schedule
      Contractors and selecting the delivery and other options available under
      the schedule that meets the agency's needs. In selecting the supply or
      service representing the best value, the ordering office may consider-

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   37
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     10
--------------------------------------------------------------------------------

      (1)   Special features of the supply or service that are required in
            effective program performance and that are not provided by a
            comparable supply or service;

      (2)   Trade-in considerations,

      (3)   Probable life of the item selected as compared with that of a
            comparable item;

      (4)   Warranty considerations;

      (5)   Maintenance availability;

      (6)   Past performance; and

      (7)   Environmental and energy efficiency considerations.

c.    ORDERS EXCEEDING THE MAXIMUM ORDER THRESHOLD. Each schedule contract has
      an established maximum order threshold. This threshold represents the
      point where it is advantageous for the ordering office to seek a price
      reduction. In addition to following the procedures in paragraph b, above,
      and before placing an order that exceeds the maximum order threshold,
      ordering offices shall--

            (1) Review additional Schedule Contractors' catalogs/pricelists or
            use the "GSA Advantage!" on-line shopping service;

            (2) Based upon the initial evaluation, generally seek price
            reductions from the Schedule Contractor(s) appearing to provide the
            best value (considering price and other factors); and

            (3) After price reductions have been sought, place the order with
            the Schedule Contractor that provides the best value and results in
            the lowest overall cost alternative. If further price reductions are
            not offered, an order may still be placed, if the ordering office
            determines that it is appropriate.

      NOTE: For orders exceeding the maximum order threshold, the Contractor
      may:

            (1) Offer a new lower price for this requirement (the Price
            Reductions clause is not applicable to orders placed over the
            maximum order in FAR 52.216-19 Order Limitations);

            (2) Offer the lowest price available under the contract; or

            (3) Decline the order (orders must be returned in accordance with
            FAR 52.216-19).

d.    BLANKET PURCHASE AGREEMENTS (BPAs). The establishment of Federal Supply
      Schedule BPAs is permitted when following the ordering procedures in FAR
      8.404. All schedule contracts contain BPA provisions. Ordering offices may
      use BPAs to establish accounts with Contractors to fill

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   38
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     11
--------------------------------------------------------------------------------

      recurring requirements. BPAs should address the frequency of ordering and
      invoicing, discounts, and delivery locations and times.

e.    PRICE REDUCTIONS. In addition to the circumstances outlined in paragraph
      c, above, there may be instances when ordering offices will find it
      advantageous to request a price reduction. For example, when the ordering
      office finds a schedule supply or service elsewhere at a lower price or
      when a BPA is being established to fill recurring requirements, requesting
      a price reduction could be advantageous. The potential volume of orders
      under these agreements, regardless of the size of the individual order,
      may offer the ordering office the opportunity to secure greater discounts.
      Schedule Contractors are not required to pass on to all schedule users a
      price reduction extended only to an individual agency for a specific
      order.

f.    SMALL BUSINESS. For orders exceeding the micro-purchase threshold,
      ordering offices should give preference to the items of small business
      concerns when two or more items at the same delivered price will satisfy
      the requirement.

g.    DOCUMENTATION. Orders should be documented, at a minimum, by identifying
      the Contractor the item was purchased from, the item purchased, and the
      amount paid. If an agency requirement in excess of the micro-purchase
      threshold is defined so as to require a particular brand name, product, or
      feature of a product peculiar to one manufacturer, thereby precluding
      consideration of a product manufactured by another company, the ordering
      office shall include an explanation in the file as to why the particular
      brand name, product, or feature is essential to satisfy the agency's
      needs.
--------------------------------------------------------------------------------
13.   FEDERAL INFORMATION TECHNOLOGY/TELECOMMUNICATION STANDARDS REQUIREMENTS:
      Federal departments and agencies acquiring products from this Schedule
      must comply with the provisions of the Federal Standards Program, as
      appropriate (reference: NIST Federal Standards Index). Inquiries to
      determine whether or not specific products listed herein comply with
      Federal Information Processing Standards (FIPS) or Federal
      Telecommunication Standards (FED-STDS), which are cited by ordering
      offices, shall be responded to promptly by the Contractor.
--------------------------------------------------------------------------------
13.1  FEDERAL INFORMATION PROCESSING STANDARDS PUBLICATIONS (FIPS PUBS):
      Information Technology products under this Schedule that do not conform to
      Federal Information Processing Standards (FIPS) should not be acquired
      unless a waiver has been granted in accordance with the applicable "FIPS
      Publication." Federal Information Processing Standards Publications (FIPS
      PUBS) are issued by the U.S. Department of Commerce, National Institute of
      Standards and Technology (NIST), pursuant to National Security Act.
      Information concerning their availability and applicability should be
      obtained from the National Technical Information Service (NTIS), 5285 Port
      Royal Road, Springfield, Virginia 22161. FIPS PUBS include voluntary
      standards when these are adopted for Federal use. Individual orders for
      FIPS PUBS should be referred to the NTIS Sales Office, and orders for
      subscription service should be referred to the NTIS Subscription Officer,
      both at the above address, or telephone number (703) 487-4650.
--------------------------------------------------------------------------------
13.2  FEDERAL TELECOMMUNICATION STANDARDS (FED-STDS): Telecommunication products
      under this Schedule that do not conform to Federal Telecommunication
      Standards (FED-STDS) should not be acquired unless a waiver has been
      granted in accordance with the applicable "FED-STD." Federal
      Telecommunication Standards are issued by the U.S. Department of Commerce,
      National Institute of Standards and Technology (NIST), pursuant to

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   39
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     12
--------------------------------------------------------------------------------

      National Security Act. Ordering information and information concerning the
      availability of FED-STDS should be obtained from the GSA, Federal Supply
      Service, Specification Section, 470 East L'Enfant Plaza, Suite 8100, SW,
      Washington, DC 20407, telephone number (202)619-8925. Please include a
      self-addressed mailing label when requesting information by mail.
      Information concerning their applicability can be obtained by writing or
      calling the U.S. Department of Commerce, National Institute of Standards
      and Technology, Gaithersburg, MD 20899, telephone number (301)975-2833.
--------------------------------------------------------------------------------
14.   SECURITY REQUIREMENTS: In the event security requirements are necessary,
      the ordering activities may incorporate, in their delivery order(s), a
      security clause in accordance with current laws, regulations, and
      individual agency policy; however, the burden of administering the
      security requirements shall be with the ordering agency. If any costs are
      incurred as a result of the inclusion of security requirements, such costs
      will be negotiated with the Schedule Contractor on an open market basis,
      outside the scope of the contract.
--------------------------------------------------------------------------------
15.   CONTRACT ADMINISTRATION FOR ORDERING OFFICES: Any ordering office, with
      respect to any one or more delivery orders placed by it under this
      contract, may exercise the same rights of termination as might the GSA
      Contracting Officer under provisions of FAR 52.249-1, 52.249-2, and
      52.249-8.
--------------------------------------------------------------------------------
16.   GSA ADVANTAGE!: GSA Advantage! is an on-line, interactive electronic
      information and ordering system that provides on-line access to vendors'
      schedule prices with ordering information. GSA Advantage! Will allow the
      user to perform various searches across all contracts including, but not
      limited to:

      (a)   Manufacturer
      (b)   Manufacturer's Part Number; and
      (c)   Product category(ies).

      Agencies can browse GSA Advantage! by accessing the Internet World Wide
      Web utilizing a browser (ex: NetScape). The Internet address is
      http://www.gsa.gov.
--------------------------------------------------------------------------------
17.   PURCHASE OF INCIDENTAL, NON-SCHEDULE ITEMS

      For administrative convenience, open market (non-contract) items may be
      added to a Federal Supply Schedule Blanket Purchase Agreement (BPA) or an
      individual order, provided that the items are clearly labeled as such on
      the order, all applicable regulations have been followed, and price
      reasonableness has been determined by the ordering activity for the open
      market (non-contract) items.
--------------------------------------------------------------------------------
18.   CONTRACTOR COMMITMENTS, WARRANTIES AND REPRESENTATIONS:

      a.    For the purpose of this contract, commitments, warranties and
            representations include, in addition to those agreed to for the
            entire schedule contract:

            (1)   Time of delivery/installation quotations for individual
                  orders;

            (2)   Technical representations and/or warranties of products
                  concerning performance, total system performance and/or
                  configuration, physical, design and/or functional
                  characteristics and capabilities of a product/equipment/
                  service/software package submitted in response to requirements
                  which result in orders under this schedule contract.

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   40
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     13
--------------------------------------------------------------------------------

            (3)   Any representations and/or warranties concerning the products
                  made in any literature, description, drawings and/or
                  specifications furnished by the contractor.

      b.    The above is not intended to encompass items not currently covered
            by the GSA Schedule Contract.
--------------------------------------------------------------------------------
19.   OVERSEAS ACTIVITIES:

      The terms and conditions of this contract shall apply to all orders for
      installation, maintenance and repair of equipment in areas listed in the
      pricelist outside the 48 contiguous states and the District of Columbia,
      except as indicated below:

      None
--------------------------------------------------------------------------------

      Upon request of the contractor, the Government may provide the contractor
      with logistics support, as available, in accordance with all applicable
      Government regulations. Such Government support will be provided on a
      reimbursable basis, and will only be provided to the Contractor's
      technical personnel whose services are exclusively required for the
      fulfillment of the terms and conditions of this contract.

--------------------------------------------------------------------------------
20.   YEAR 2000 WARRANTY - COMMERCIAL SUPPLY ITEMS:

      "Year 2000 compliant", as used in this part, means, with respect to
      information technology, that the information technology accurately
      processes date/time data, (including, but not limited to, calculating,
      comparing, and sequencing) from, into, and between the twentieth and
      twenty-first centuries, and the years 1999 and 2000 and leap year
      calculations, to the extent that other information technology, used in
      combination with the information technology being acquired, properly
      exchanges date/time data with it.

      (a)   All currently awarded products that are not year 2000 compliant must
            be deleted from this contract no later than December 31, 1999.

      (b)   Any Contract modifications, adding new items under clause
            552.243-72, Modifications (Multiple Award Schedule), must meet the
            warranty requirement in paragraph c, below.

      (c)   The Contractor warrants that each hardware, software, and firmware
            product delivered under this contract shall be able to accurately
            process date data (including, but not limited to, calculating,
            comparing, and sequencing) from, into, and between the twentieth and
            twenty-first centuries, including leap year calculations, when used
            in accordance with the product documentation provided by the
            Contractor, provided that all listed or unlisted products (e.g.
            hardware, software, firmware) used in combination with such listed
            product properly exchange date data with it. If the contract
            requires that specific listed products must perform as a system in
            accordance with the foregoing warranty, then that warranty shall
            apply to those listed products as a system. The duration of this
            warranty and the remedies available to the Government for breach of
            this warranty shall be as defined in, and subject to, the terms and
            limitations of the Contractor's standard commercial warranty or
            warranties contained in this contract, provided that notwithstanding
            any provision to the contrary in such commercial warranty

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   41
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     14
--------------------------------------------------------------------------------

            or warranties, the remedies available to the Government under this
            warranty shall include repair or replacement of any listed product
            whose non-compliance is discovered and made known to the Contractor
            in writing within ninety (90) days after acceptance. Nothing in this
            warranty shall be construed to limit any rights or remedies the
            Government may otherwise have under this contract with respect to
            defects other than Year 2000 performance.
--------------------------------------------------------------------------------
21.   BLANKET PURCHASE AGREEMENTS (BPAs)

      Federal Acquisition Regulation (FAR) 13.201(a) defines Blanket Purchase
      Agreements (BPAs) as "...a simplified method of filling anticipated
      repetitive needs for supplies or services by establishing 'charge
      accounts' with qualified sources of supply." The use of Blanket Purchase
      Agreements under the Federal Supply Schedule Program is authorized in
      accordance with FAR 13.202(c)(3), which reads, in part, as follows:

      "BPAs may be established with Federal Supply Schedule Contractors, if not
      inconsistent with the errs of the applicable schedule contract."

      Federal Supply Schedule contracts contain BPA provisions to enable
      schedule users to maximize their administrative and purchasing savings.
      This feature permits schedule users to set up "accounts" with Schedule
      Contractors to fill recurring requirements. These accounts establish a
      period for the BPA and generally address issues such as the frequency of
      ordering and invoicing, authorized callers, discounts, delivery locations
      and times. Agencies may qualify for the best quantity/volume discounts
      available under the contract, based on the potential volume of business
      that may be generated through such an agreement, regardless of the size of
      the individual orders. In addition, agencies may be able to secure a
      discount higher than that available in the contract based on the aggregate
      volume of business possible under a BPA. Finally, Contractors may be open
      to a progressive type of discounting where the discount would increase
      once the sales accumulated under the BPA reach certain prescribed levels.
      Use of a BPA may be particularly useful with the new Maximum Order
      feature. See the Suggested Format, contained in this Schedule Pricelist,
      for customers to consider when using this purchasing tool.

--------------------------------------------------------------------------------
22.   CONTRACTOR TEAM ARRANGEMENTS

      Federal Supply Schedule Contractors may use "Contractor Team Arrangements"
      (see FAR 9.6) to provide solutions when responding to a customer agency
      requirements. The policy and procedures outlined in this part will provide
      more flexibility and allow innovative acquisition methods when using the
      Federal Supply Schedules. See the additional information regarding
      Contractor Team Arrangements in this Schedule Pricelist.

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   42
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     15
--------------------------------------------------------------------------------

D.    TERMS AND CONDITIONS

         Applicable to Information Technology (IT) Professional Services
                              (Special Item 132-51)

1     SCOPE

      a.    The prices, terms and conditions stated under Special Item Number
            132-51 Information Technology Professional Services apply
            exclusively to IT Services within the scope of this Information
            Technology Schedule.

      b.    The Contractor shall provide services at the Contractor's facility
            and/or at the Government location, as agreed to by the Contractor
            and the ordering office.

2.    ORDERING PROCEDURES

a.    Procedures for IT professional services priced on GSA schedule at hourly
      rates.

      (1) FAR 8.402 contemplates that GSA may occasionally find it necessary to
establish special ordering procedures for individual Federal Supply Schedules or
for some Special Item Numbers (SINs) within a Schedule. GSA has established
special ordering procedures for IT professional services (SIN 132-51) that are
priced on schedule at hourly rates. These special ordering procedures which are
outlined herein take precedence over the procedures in FAR 8.404.

      (2) The GSA has determined that the rates for IT professional services
contained in this pricelist are fair and reasonable. However, the ordering
office using this contract is responsible for considering the level of effort
and mix of labor proposed to perform a specific task being ordered and for
making a determination that the total firm-fixed price or ceiling price is fair
and reasonable.

      (3) When ordering IT professional services ordering offices shall -

            (i)   Prepare a Request for Quote:

                  (A) A performance-based statement of work that outlines, at a
minimum, the work to be performed, location of work, period of performance,
deliverable schedule, applicable standards, acceptance criteria, and any special
requirements (i.e., security clearances, travel, special knowledge, etc.) should
be prepared.

                  (B) A request for quote should be prepared which includes the
performance-based statement of work and requests the contractors submit either a
firm-fixed price or a ceiling price to provide the services outlined in the
statement of work. A firm-fixed price order shall be requested, unless the
ordering office makes a determination that it is not possible at the time of
placing the order to estimate accurately the extent or duration of the work or
to anticipate cost with any reasonable degree of confidence. When such a
determination is made, a labor hour or time-and-materials proposal may be
requested. The firm-fixed price shall be based on the hourly rates in the
schedule contract and shall consider the mix of labor categories and level of
effort required to perform the services described in the statement of work. The
firm-fixed price of the order should also include any travel costs or other
incidental costs related to performance of the services ordered, unless the
order provides for

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   43
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     16
--------------------------------------------------------------------------------

reimbursement of travel costs at the rates provided in the Federal Travel or
Joint Travel Regulations. A ceiling price must be established for labor hour and
time and material orders.

                  (C) The request for quote may request the contractors, if
necessary or appropriate, submit a project plan for performing the task and
information on the contractor's experience and/or past performance performing
similar tasks.

                  (D) The request for quote shall notify the contractors what
basis will be used for selecting the contractor to receive the order. The notice
shall include the basis for determining whether the contractors are technically
qualified and provide an explanation regarding the intended use of any
experience and/or past performance information in determining technical
acceptability of responses. If consideration will be limited to schedule
contractors who are small business concerns as permitted by paragraph (ii)(A)
below, the request for proposals shall notify the contractors that will be the
case.

            (ii)  Transmit the Request for Quote to Contractors:

                  (A) Based upon an initial evaluation of catalogs and
pricelists, the ordering office should identify the contractors that appear to
offer the best value (considering the scope of services offered, hourly rates
and other factors such as contractors' locations, as appropriate). When buying
IT professional services under SIN 132-51 ONLY, the ordering office, at its
discretion, may limit consideration to those schedule contractors that are small
business concerns. This limitation is not applicable when buying supplies and/or
services under other SINs as well as SIN 132-51. The limitation may only be used
when at least three (3) small businesses that appear to offer services that will
meet the agency's needs are available, if the order is estimated to exceed the
micro-purchase threshold.

                  (B) The request for quote should be to three (3) contractors
if the proposed order is estimated to exceed the micro-purchase threshold, but
not to exceed the maximum order threshold. For proposed orders exceeding the
maximum order threshold, the request for quote should be provided to additional
contractors that offer services that will meet the agency's needs. Ordering
offices should strive to minimize the contractors' costs associated with
responding to requests for quotes for specific orders. Requests should be
tailored to the minimum level necessary for adequate evaluation and selection
for order placement.

            (iii) Evaluate quotes and select the contractor to receive the
                  order:

                  After responses have been evaluated against the factors
identified in the request for quote, the order should be placed with the
schedule contractor that represents the best value and results in the lowest
overall cost alternative (considering price, special qualifications,
administrative costs, etc.) to meet the Government's needs.

      (4) The establishment of Federal Supply Schedule Blanket Purchase
Agreements (BPAS) for recurring services is permitted when the procedures
outlined herein are followed. All BPAs for services must define the services
that may be ordered under the BPA, along with delivery or performance time
frames, billing procedures, etc. The potential volume of orders under BPAs,
regardless of the size of individual orders, may offer the ordering office the
opportunity to secure volume discounts. When establishing BPAs ordering offices
shall -

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   44
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     17
--------------------------------------------------------------------------------

            (i) Inform contractors in the request for quote (based on the
agency's requirement) if a single BPA or multiple BPAs will be established, and
indicate the basis that will be used for selecting the contractors to be awarded
the BPAs.

                  (A) SINGLE BPA: Generally, a single BPA should be established
when the ordering office can define the tasks to be ordered under the BPA and
establish a firm-fixed price or ceiling price for individual tasks or services
to be ordered. When this occurs, authorized users may place the order directly
under the established BPA when the need for service arises. The schedule
contractor that represents the best value and results in the lowest overall cost
alternative to meet the agency's needs should be awarded the BPA.

                  (B) MULTIPLE BPAs: When the ordering office determines
multiple BPAs are needed to meet its requirements, the ordering office should
determine which contractors can meet any technical qualifications before
establishing the BPAs. When multiple BPAs are established, the authorized users
must follow the procedure in (3)(ii)(B) above, and then place the order with the
schedule contractor that represents the best value and results in the lowest
overall cost alternative to meet the agency's needs.

            (ii) Review BPAs periodically. Such reviews shall be conducted at
least annually. The purpose of the review is to determine whether the BPA still
represents the best value (considering price, special qualifications, etc.) and
results in the lowest overall cost alternative to meet the agency's needs.

      (5) The ordering office should give preference to small business concerns
when two or more contractors can provide the services at the same firm-fixed
price or ceiling price.

      (6) When the ordering office's requirement involves both products as well
as IT professional services, the ordering office should total the prices for the
products and the firm-fixed price for the services and select the contractor
that represents the greatest value in terms of meeting the agency's total needs.

      (7) The ordering office, at a minimum, should document orders by
identifying the contractor the services were purchased from, the services
purchased, and the amount paid. If other than a firm-fixed price order is
placed, such documentation should include the basis for the determination to use
a labor-hour or time-and-materials order. For agency requirements in excess of
the micro-purchase threshold, the order file should document the evaluation of
schedule contractors' quotes that formed the basis for the selection of the
contractor that received the order and the rationale for any trade-offs made in
making the selection.

b.    Ordering Procedures for other services available on schedule at fixed
prices for specifically defined services or tasks.

      Orders placed pursuant to a Multiple Award Schedule (MAS), using the
procedures in FAR 8.404, are considered to be issued pursuant to full and open
competition. Therefore, when placing orders under Federal Supply Schedules,
ordering offices need not seek further competition, synopsize the requirement,
make a separate determination of fair and reasonable pricing, or consider small
business set-asides in accordance with subpart 19.5. GSA has already determined
the prices of items under schedule contracts to be fair and reasonable. By
placing an order against a schedule using the procedures

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   45
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     18
--------------------------------------------------------------------------------

outlined below, the ordering office has concluded that the order represents the
best value and results in the lowest overall cost alternative (considering
price, special features, administrative costs, etc.) to meet the Government's
needs.

      (1) ORDERS PLACED AT OR BELOW THE MICRO-PURCHASE THRESHOLD. Ordering
offices can place orders at or below the micro-purchase threshold with any
Federal Supply Schedule Contractor.

      (2) ORDERS EXCEEDING THE MICRO-PURCHASE THRESHOLD BUT NOT EXCEEDING THE
MAXIMUM ORDER THRESHOLD. Orders should be placed with the Schedule Contractor
that can provide the supply or service that represents the best value. Before
placing an order, ordering offices should consider reasonably available
information about the service offered under MAS contracts by using the "GSA
Advantage!" on-line shopping service, or by reviewing the catalogs/pricelists of
at least three Schedule Contractors and selecting the delivery and other options
available under the schedule that meets the agency's needs. In selecting the
service representing the best value, the ordering office may consider - (i)
special features of the service that are required in effective program
performance and that are not provided by a comparable service; and (ii) past
performance.

      (3) ORDERS EXCEEDING THE MAXIMUM ORDER THRESHOLD. Each schedule contract
has an established maximum order threshold. This threshold represents the point
where it is advantageous for the ordering office to seek a price reduction. In
addition to following the procedures in paragraph b, above, and before placing
an order that exceeds the maximum order threshold, ordering offices shall -

            (i) Review additional Schedule Contractors' catalogs/pricelists or
use the "GSA Advantage!" on-line shopping service;

            (ii) Based upon the initial evaluation, generally seek price
reductions from the Schedule Contractor(s) appearing to provide the best value
(considering price and other factors); and

            (iii) After price reductions have been sought, place the order with
the Schedule Contractor that provides the best value and results in the lowest
overall cost alternative. If further price reductions are not offered, an order
may still be placed, if the ordering office determines that it is appropriate.

            NOTE: For orders exceeding the maximum order threshold, the
                  Contractor may:

                  (A)   Offer a new lower price for this requirement (the Price
                        Reductions clause is not applicable to orders placed
                        over the maximum order in FAR 52.216-19 Order
                        Limitations);

                  (B)   Offer the lowest price available under the contract; or

                  (C)   Decline the order (orders must be returned in accordance
                        with FAR 52.216-19).

      (4) BLANKET PURCHASE AGREEMENTS (BPAS). The establishment of Federal
Supply Schedule BPAs is permitted when following the ordering procedures in FAR
8.404. All schedule contracts contain BPA provisions. Ordering offices may use
BPAs to establish accounts with Contractors to fill recurring

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January 20, 1998                                                             TCS
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GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     19
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requirements. BPAs should address the frequency of ordering and invoicing,
discounts, and delivery locations and times.

      (5) PRICE REDUCTIONS. In addition to the circumstances outlined in
paragraph (3), above, there may be instances when ordering offices will find it
advantageous to request a price reduction. For example, when the ordering office
finds a schedule service elsewhere at a lower price or when a BPA is being
established to fill recurring requirements, requesting a price reduction could
be advantageous. The potential volume of orders under these agreements,
regardless of the size of the individual order, may offer the ordering office
the opportunity to secure greater discounts. Schedule Contractors are not
required to pass on to all schedule users a price reduction extended only to an
individual agency for a specific order.

      (6) SMALL BUSINESS. For orders exceeding the micro-purchase threshold,
ordering offices should give preference to the items of small business concerns
when two or more items at the same delivered price will satisfy the requirement.

      (7) DOCUMENTATION. Orders should be documented, at a minimum, by
identifying the Contractor the item was purchased from, the item purchased, and
the amount paid. If an agency requirement in excess of the micro-purchase
threshold is defined so as to require a particular brand name, product, or
feature of a product peculiar to one manufacturer, thereby precluding
consideration of a product manufactured by another company, the ordering office
shall include an explanation in the file as to why the particular brand name,
product, or feature is essential to satisfy the agency's needs.

3.    ORDER

      a.    Agencies may use written orders, EDI orders, blanket purchase
            agreements, individual purchase orders, or task orders for ordering
            services under this contract. Blanket Purchase Agreements shall not
            extend beyond the end of the contract period; all services and
            delivery shall be made and the contract terms and conditions shall
            continue in effect until the completion of the order. Orders for
            tasks which extend beyond the fiscal year for which funds are
            available shall include FAR 52.232-19 Availability of Funds for the
            Next Fiscal Year. The purchase order shall specify the availability
            of funds and the period for which funds are available.

      b.    All task orders are subject to the terms and conditions of the
            contract. In the event of conflict between a task order and the
            contract, the contract will take precedence.

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4.    PERFORMANCE OF SERVICES

      a.    The Contractor shall commence performance of services on the date
            agreed to by the Contractor and the ordering office.

      b.    The Contractor agrees to render services only during normal working
            hours, unless otherwise agreed to by the Contractor and the ordering
            office.

      c.    The Agency should include the criteria for satisfactory completion
            for each task in the Statement of Work or Delivery Order. Services
            shall be completed in a good and workmanlike manner.

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January 20, 1998                                                             TCS
<PAGE>   47
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     20
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      d.    Any Contractor travel required in the performance of IT Services
            must comply with the Federal Travel Regulation or Joint Travel
            Regulations, as applicable, in effect on the date(s) the travel is
            performed. Established Federal Government per diem rates will apply
            to all Contractor travel. Contractors cannot use GSA city pair
            contracts.
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5.    INSPECTION OF SERVICES

      The Inspection of Services-Fixed Price (AUG 1996) clause at FAR 52.246-4
      applies to firm-fixed price orders placed under this contract. The
      Inspection-Time-and-Materials and Labor-Hour (JAN 1986) clause at FAR
      52.246-6 applies to time-and-materials and labor-hour orders placed under
      this contract.
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6.    RESPONSIBILITIES OF THE CONTRACTOR

      The Contractor shall comply with all laws, ordinances, and regulations
      (Federal, State, City or otherwise) covering work of this character.
--------------------------------------------------------------------------------
7.    RESPONSIBILITIES OF THE GOVERNMENT

      Subject to security regulations, the ordering office shall permit
      Contractor access to all facilities necessary to perform the requisite IT
      Services.
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8.    INDEPENDENT CONTRACTOR

      All IT Services performed by the Contractor under the terms of this
      contract shall be as an independent Contractor, and not as an agent or
      employee of the Government.
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9.    ORGANIZATIONAL CONFLICTS OF INTEREST

      a.    Definitions.

            "Contractor" means the person, firm, unincorporated association,
            joint venture, partnership, or corporation that is a party to this
            contract.

            "Contractor and its affiliates" and "Contractor or its affiliates"
            refers to the Contractor, its chief executives, directors, officers,
            subsidiaries, affiliates, subcontractors at any tier, and
            consultants and any joint venture involving the Contractor, any
            entity into or with which the Contractor subsequently merges or
            affiliates, or any other successor or assignee of the Contractor.

            An "Organizational conflict of interest" exists when the nature of
            the work to be performed under a proposed Government contract,
            without some restriction on activities by the Contractor and its
            affiliates, may either (i) result in an unfair competitive advantage
            to the Contractor or its affiliates or (ii) impair the Contractor's
            or its affiliates' objectivity in performing contract work.

      b.    To avoid an organizational or financial conflict of interest and to
            avoid prejudicing the best interests of the Government, ordering
            offices may place restrictions on the

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January 20, 1998                                                             TCS
<PAGE>   48

GSA Schedule Contract Number GS-35F-4655H                                     21
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            Contractors, its affiliates, chief executives, directors,
            subsidiaries and subcontractors at any tier when placing orders
            against schedule contracts. Such restrictions shall be consistent
            with FAR 9.505 and shall be designed to avoid, neutralize, or
            mitigate organizational conflicts of interest that might otherwise
            exist in situations related to individual orders placed against
            the schedule contract. Examples of situations, which may require
            restrictions, are provided at FAR 9.508.

--------------------------------------------------------------------------------
10.   INVOICES

      The Contractor, upon completion of the work ordered, shall submit invoices
      for IT services. Progress payments may be authorized by the ordering
      office on individual orders if appropriate. Progress payments shall be
      based upon completion of defined milestones or interim products. Invoices
      shall be submitted monthly for recurring services performed during the
      preceding month.

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11    PAYMENTS

      For firm-fixed price orders the Government shall pay the Contractor, upon
      submission of proper invoices or vouchers, the prices stipulated in this
      contract for service rendered and accepted. Progress payments shall be
      made only when authorized by the order. For time-and-materials orders,
      the Payments under Time-and-Materials and Labor-Hour Contracts
      (Alternate I (APR 1984)) at FAR 52.232-7 applies to time-and-materials
      orders placed under this contract. For labor-hour orders, the Payment
      under Time-and-Materials and Labor-Hour Contracts (FEB 1997) (Alternate II
      (JAN 1986)) at FAR 52.232-7 applies to labor-hour orders placed under this
      contract.

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12.   RESUMES

      Resumes shall be provided to the GSA Contracting Officer or the user
      agency upon request.

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13.   INCIDENTAL SUPPORT COSTS

      Incidental support costs are available outside the scope of this contract.
      The costs will be negotiated separately with the ordering agency in
      accordance with the guidelines set forth in the FAR.

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14.   APPROVAL OF SUBCONTRACTS

      The ordering activity may require that the Contractor receive, from the
      ordering activity's Contracting Officer, written consent before placing
      any subcontract for furnishing any of the work called for in a task order.

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15.   DESCRIPTION OF IT SERVICES AND PRICING

      a.    The Contractor shall provide a description of each type of IT
            Service offered under Special Item Number 132-51. IT Services
            should be presented in the same manner as the Contractor sells to
            its commercial and other Government customers. If the Contractor is
            proposing hourly rates, a

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January 20, 1998                                                             TCS
<PAGE>   49
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     22

--------------------------------------------------------------------------------

            description of all corresponding commercial job titles (labor
            categories) for those individuals who will perform the service
            should be provided.

      b.    Pricing for all IT Services shall be in accordance with the
            Contractor's customary commercial practices; e.g., hourly rates,
            monthly rates, term rates, and/or fixed prices.

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January 20, 1998                                                             TCS
<PAGE>   50
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     23
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E. JOB TITLES
--------------------------------------------------------------------------------
JOB TITLE: PROGRAM MANAGER. TCS-01

MINIMUM/GENERAL EXPERIENCE: Ten (10) years of progressive experience in large
scale computer/communications support activities such as computer operations,
data communications, network design, or maintenance activities. Specialized
experience includes Five (5) years of specific experience in managing the
overall operating functions of modern medium or large-scale computer
environments including responsibility for such activities as computer network
operations, hardware and software maintenance, customer support, and production
control. Must have proven expertise in the management and control of costs and
resources and demonstrated capability in managing multi-task delivery orders of
this type and complexity.

FUNCTIONAL RESPONSIBILITY: Organizes, directs and manages the contract's
operation and maintenance function. Manages the LAN/WAN computer support
operations such as network operations, system software maintenance, production
control, data entry, remote job entry, tape library, etc. Must have demonstrated
capability for oral and written communications with all levels of management.
Must have a thorough knowledge of the capabilities of applicable computer and
communications configurations. Meets with Government personnel and contractor
personnel to formulate and review delivery order plans and deliverable items.
Ensures conformance with delivery order schedules and costs.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline. A Master's Degree is
preferred.

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JOB TITLE: SYSTEMS MANAGER. TCS-02

MINIMUM/GENERAL EXPERIENCE: Ten (10) years progressive experience in the
evaluation, design, and analysis of business or scientific applications using
database management systems or high level programming languages. Specialized
experience includes Five (5) years of specific experience managing business and
systems applications including requirements definition to ensure systems
integrity.

FUNCTIONAL RESPONSIBILITY: Performs and is responsible for overall systems
analysis, design, programming, documentation, performance evaluation, or
implementation of complex system applications and related Management Information
Systems/Automated Data Processing (MIS/ADP) systems concepts. Must have
demonstrated capability for oral and written communications with other levels of
management. Oversees all phases of the software development life cycle with
emphasis on the planning, analysis, testing and acceptance phases. Provides
management directions and solutions to integrate network management solutions
across communications forms, multi-network architectures, processing systems,
and network elements. This job title category may serve as a Delivery Order
Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individual's ability to accomplish projects/tasks through others.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems Engineering, or a related
scientific or technical discipline. A master's degree in one of the above
disciplines equals one year specialized and two years general experience.
--------------------------------------------------------------------------------

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January 20, 1998                                                             TCS
<PAGE>   51
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     24
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JOB TITLE: SENIOR SYSTEMS ANALYST. TCS-03

MINIMUM/GENERAL EXPERIENCE: Seven (7) years progressive experience in the
analysis and design of business or scientific applications using database
management systems or high level programming languages. This job title category
may serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Performs systems analysis, design, programming,
documentation, performance evaluation, or implementation of complex system
applications and related Management Information Systems/Automated Data
Processing (MIS/ADP) systems concepts for effective implementation. Participates
in all phases of the software development life cycle with emphasis on the
planning, analysis, testing and acceptance phases. Designs and prepares
technical reports and related documentation, and makes charts and graphs to
record results. Prepares and delivers presentations and briefings as required.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, or a related
scientific or technical discipline.

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JOB TITLE: JUNIOR SYSTEMS ANALYST. TCS-04

MINIMUM/GENERAL EXPERIENCE: Three (3) years progressive experience in the
analysis and design of business or scientific applications using database
management systems or high level programming languages.

FUNCTIONAL RESPONSIBILITY: Perform duties assigned by the Senior Systems Analyst
on simple to moderately complex systems.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
in a related field.

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JOB TITLE: SYSTEMS ADMINISTRATOR. TCS-05

MINIMUM/GENERAL EXPERIENCE: One (1) year experience administering multi-user,
shared-processor systems and data communications networks.

FUNCTIONAL RESPONSIBILITY: Monitor and coordinate all data system operations,
including security procedures, and liaison with end users. Ensure that necessary
system backups are performed and storage and rotation of backups is
accomplished. Monitor and maintain records of system performance and capacity to
arrange vendor services or other actions for reconfiguration and anticipate
requirements for system expansion. Assist managers to monitor and comply with
Government data requirements. Perform software development, user training,
network management and minor installation and repair of equipment.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
in a related field.

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JOB TITLE: NETWORK MANAGER. TCS-06

MINIMUM/GENERAL EXPERIENCE: Ten (10) years experience in one or more of the
following areas: data communications engineering, data communications hardware
or software analysis, network administration or management, or data
communication equipment installation and maintenance. Knowledge of cable
including FDDI, FOIRL, and 10-Base T. Particularly desirable is experience
working with IBM's SNA with knowledge of the MVS operating system and SNA
protocols. Needs a

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January 20, 1998                                                             TCS
<PAGE>   52
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     25
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good understanding of several of the following protocols/technologies: X.25 and
TCP/IP, SNA, Internet Packet Exchange (IPX), SMDS, Frame Relay, ATM, SONET,
Integrated Services Digital Network (ISDN), Unisys DCA, Appletalk. This job
title category may serve as a Delivery Order Manager on one or more delivery
orders. Management experience is required. Delivery Order Managers must have
supervisory or project leader experience. This experience is not in addition to
the experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Performs a variety of network management functions in
support of MIS services related to the operation, performance or availability of
data communications networks. Modifies command language programs, network start
up files, assigns/re-assigns network device logicals, analyzes network
performance and recommends adjustments to wide variety of complex network
management functions with responsibility for overall performance and
availability of networks. LAN/WAN consultant skilled in network analysis,
integration and tuning. Experience with cable/LAN meters, protocol analyzers,
Simple Network Management Protocol (SNMP) and Remote Monitoring (RMON) based
software products. Knowledge of Ethernet, FDDI and high speed WANs, routers,
bridges, and switches. Analyze client LANs/WANs, isolate source of problems,
recommend reconfiguration and implementation of new network hardware to increase
performance. Working knowledge of network operating systems. Modifies command
language programs, network start up files, assigns/re-assigns network device
logicals. Conducts load balancing efforts to achieve optimum device utilization
and network performance. Manages network E-mail functions. Establishes mail
boxes and monitors mail performance on the network. Coordinates with
communications engineering to resolve hardware problems. Works with customer and
operations staff in scheduling preventative and emergency maintenance
activities. May serve as Delivery Order Manager on one or more delivery orders.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Technology, Engineering, or a
related discipline. A Master's Degree is preferred. If applicable, shall be
certified as a network engineer for the specific network operating system as
defined in the Government delivery order request. The certification criteria are
determined by the network operating system vendor.

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JOB TITLE: SENIOR NETWORK ENGINEER. TCS-07

MINIMUM/GENERAL EXPERIENCE: Seven (7) years of progressive experience in
planning, designing, implementation, and analyzing data or telecommunications
networks. This experience must have demonstrated knowledge of Ethernet, Fiber
Distributed Data Interface (FDDI) and a working knowledge of operating systems
including the MVS operating system and protocols such as Novell, NT, UNIX,
VINES, System Network Architecture (SNA) and Transmission Control
Protocol/Internet Protocol (TCP/IP). Must have experience with network
analysis/management tools and techniques and be familiar with Personal Computers
(PCs) in a client/server environment. Experience must include at least three
years experience with fiber optics, including Synchronous Optical Network
(SONET) - based architectures, and broadband networks using Switched
Multimegabit Data Service (SMDS) and Asynchronous Transfer Mode (ATM)
technologies. Must be familiar with IT technology and long distance and local
carrier management. This job title category may serve as a Delivery Order
Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individual's ability to accomplish projects/tasks through others.

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January 20, 1998                                                             TCS
<PAGE>   53
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     26
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FUNCTIONAL RESPONSIBILITY: Responsible for the design and implementation of
large data communications or telecommunications networks. Plans and monitors the
installation of communications circuits. Manage and monitor local area networks
and associated equipment (e.g., bridges, routers, modem pools, gateways, etc.)
Conducts short and long-term planning to meet communications requirements,
Responsible for the design and implementation of LAN/WANs using hub switching
and router technology. Performs hardware/software analyses to provide
comparative data of performance characteristics and suitability within the
existing systems environment. Prepares trade-off studies and evaluations for
vendor equipment. Generates network monitoring/performance reports for LAN/WAN
utilization studies. Recommends network design changes/enhancements for improved
system availability and performance.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering or other
related scientific or technical discipline. A Master's Degree is preferred.

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JOB TITLE: JUNIOR NETWORK ENGINEER. TCS-08

MINIMUM/GENERAL EXPERIENCE: Three (3) years of progressive experience in
planning, designing, implementation, and analyzing data or telecommunications
networks. Knowledge of the following protocols/technologies: X.25 and TCP/IP,
SNA, Internet Packet Exchange (IPX), SMDS, Frame Relay, ATM, SONET, Integrated
Services Digital Network (ISDN), Unisys DCA, Appletalk.

FUNCTIONAL RESPONSIBILITY: Perform similar duties as directed or instructed by
the senior network engineer. Conduct studies pertaining to network configuration
and monitor traffic patterns, protocols, peak usage, etc. Stays current with
technological changes.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering or other
related scientific or technical discipline.

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JOB TITLE: NETWORK ADMINISTRATOR. TCS-09

MINIMUM/GENERAL EXPERIENCE: One (1) year of experience in one or more of the
following areas: data communications engineering, data communications hardware
or software analysis, network administration or management, data communication
equipment installation and maintenance, or computer systems administration and
management.

FUNCTIONAL RESPONSIBILITY: Performs a variety of network management functions
related to the operation, performance or availability of data communications
networks. Experience with cable/LAN meters, protocol analyzers, SNMP and RMON
based software products. Knowledge of Ethernet, FDDI and high speed WANs and
routers. Analyze client LANs/WANs, isolate source of problems, recommend
reconfiguration and implementation of new network hardware to increase
performance. Advanced knowledge of network operating systems. Modifies command
language programs, network start up files, assigns/re-assigns network device
logicals, participates in load balancing efforts throughout the network to
achieve optimum device utilization and performance. Establishes new user
accounts on the network granting access to required network files and programs.
Manages network E-mail functions. Establishes mail boxes and monitors mail
performance on the network. Troubleshoots network/user problems, presents
resolutions for implementation. Prepares a variety of network resource reports.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field, or two (2) years of college or university study
in a related field. If applicable, should be certified as a network
administrator for a specific network operating system as defined in the
Government delivery order request. Certification criteria are determined by the
network operating system vendor.

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January 20, 1998                                                             TCS
<PAGE>   54
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     27
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JOB TITLE: SENIOR NETWORK TECHNICIAN. TCS-10

MINIMUM/GENERAL EXPERIENCE: Five (5) years experience in the following areas:
Installation, operation, and maintenance of data communication networks and
devices. This job title category may serve as a Delivery Order Manager on one or
more delivery orders. Management experience is required. Delivery Order
Managers must have supervisory or project leader experience. This experience is
not in addition to the experience requirements for the skill category. Project
leader experience is experience that demonstrates an individual's ability to
accomplish projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Adds or exchanges externally connected PC accessories
and data communications equipment. Troubleshoots LANs/WANs and provides problem
resolution for PC and data communications hardware. Adds or replaces boards,
batteries, disks drives, and other PC components. Installs cabling for LANs,
WANs, etc. Attaches, detaches, or exchanges LAN cabling to workstations,
servers, network devices, telecommunications and data communications equipment.
Works independently, may provide supervision and guidance to 2 or more network
technicians.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field; or Technical School certificate of completion in
the data communications field including cable installation; or the equivalent
military training.

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JOB TITLE: JUNIOR NETWORK TECHNICIAN. TCS-11

MINIMUM/GENERAL EXPERIENCE: A minimum of two (2) years of experience installing
and maintaining shared resources for communication networks and devices.

FUNCTIONAL RESPONSIBILITY: Perform similar duties as directed or instructed by
the senior network engineer. Adds or exchanges externally connected PC
accessories and data communications equipment including cables, boards,
batteries, disks drives, and other PC components. Attaches, detaches, or
exchanges LAN cabling to workstations, servers, network devices,
telecommunications and data communications equipment.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university in a related field; or Technical School certificate of completion in
the data communications field including cable installation; or the equivalent
military training.

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JOB TITLE: COMPUTER REPAIR TECHNICIAN. TCS-12

MINIMUM/GENERAL EXPERIENCE: Five (5) years experience in the area of
troubleshooting and maintenance of ADP equipment (e.g., personal computers,
laptops, minicomputers, printers, monitors, modems, etc.). This job title
category may serve as a Delivery Order Manager on one or more delivery orders.
Management experience is required. Delivery Order Managers must have supervisory
or project leader experience. This experience is not in addition to the
experience requirements for the skill category. Project leader experience is
experience that demonstrates an individual's ability to accomplish
projects/tasks through others.

FUNCTIONAL RESPONSIBILITY: Responds to user help calls referred by the Help
Desk. Diagnoses end-user equipment problems. Installs and relocates end-user
devices. Repairs and services end-user equipment. Performs board-level
maintenance and swap out of component parts for Automated Data Processing
Equipment (ADPE), including PCs, printers, plotters, etc. Performs tests to
locate problems using diagnostic software and electronic test equipment.
Resolves I/O errors and conflicts, and ensures compatibility between components.
Repairs/replaces broken or non-functional parts that prevent proper operation
of mechanical devices. Tests ADPE to validate functionality. Installs/relocates
hardware and

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January 20, 1998                                                             TCS
<PAGE>   55
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     28
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software at a designated location and assists users with initial operating
instructions. Works independently.

MINIMUM EDUCATION: High school diploma. Two (2) years technical training in
electronic equipment repair or a related field.

--------------------------------------------------------------------------------

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JOB TITLE: COMPUTER RESOURCES ADMINISTRATOR. TCS- 13

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in managing and
controlling the configuration of computer equipment.

FUNCTIONAL RESPONSIBILITY: Performs a wide variety of computer resource
management functions in support of computer operations including monitoring and
maintaining the configurations of PC's. Manages system accounts, diagnoses
system problems, analyzes system performance, and performs system tuning.
Coordinates with the Help Desk to resolve user problems. Performs account
maintenance functions including the establishment of new user accounts. Helps
minimize the impact of service interruptions by initiating recovery processes.
Monitors and records hardware, software, and communications performance
utilization statistics. Projects plans for increases/decreases in resources
requirements and prepares a variety of computer resource reports.

MINIMUM EDUCATION: An Associate's degree from an accredited college in a related
field.

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JOB TITLE: DATA BASE MANAGEMENT SPECIALIST. TCS-14

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Specifies proper types of files organization, indexing methods, and
security procedures. Advises contractor project teams on the design of complex
data bases (e.g., schema and subschema details). Defines specialized aspects of
user's data base administrator documentation. Performs detailed comparisons of
various data base systems. Performs duties in a complex, distributed,
heterogeneous computing environment, which may involve different types of
hardware platforms, operating systems applications, and network environments.
Provides expertise in data storage systems. Develops backup and archival
policies and procedures. Configures storage systems software to meet
requirements. Performs administration tasks (installing, maintaining,
monitoring, recovering, rebuilding, upgrading, patching and performance tuning).
Implements software solutions for performance enhancement, operator interface,
and increased user capability. Must have experience in DB2, Oracle, Informix, or
Sybase.

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January 20, 1998                                                             TCS
<PAGE>   56
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     29
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MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

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JOB TITLE: OFFICE AUTOMATION SPECIALIST. TCS-15

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Applies current technology in providing MIS solutions. Provides highly
technical expertise in providing business application solutions. Must have a
comprehensive understanding of hardware/software and communication environments
to include: client/server technology, host/mainframe technology, IS, and related
peripheral equipment.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

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JOB TITLE: CONFIGURATION MANAGEMENT SPECIALIST. TCS-16

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Establishes and enforces procedures to ensure that software products
are reviewed, approved, and baselined at the appropriate points in their life
cycles. Ensures that the proper documentation is available to deploy and
maintain each version of a software product. Responsible for data management
integrity.

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   57
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     30
--------------------------------------------------------------------------------

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering,
Business, or other related scientific or technical discipline.

--------------------------------------------------------------------------------
JOB TITLE: COMPUTER GRAPHICS SPECIALIST. TCS-17

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Provides expertise on the use of graphics software and hardware
capabilities. Evaluates and recommends new graphics products and techniques.
Provides technical support to programmers and users on the maintenance,
operations, integration, use, and generation of graphics and graphic tools.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

--------------------------------------------------------------------------------
JOB TITLE: SYSTEMS SOFTWARE SPECIALIST. TCS-18

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Evaluates systems software and recommends specific changes in
procedures. Reviews computer software systems communications and response needs
and determines operating systems and languages needed to support them. Performs
systems software "fine-tuning", workload analysis, load balancing, etc. Performs
authorized maintenance of a highly specialized nature on systems software,
compilers, assemblers, and utility systems. Oversees total data processing/
communications system restoration following significant system crashes.
Determines system performance capabilities,

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   58
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     31
--------------------------------------------------------------------------------

diagnoses system failures and degradation's and isolates the failure or
degradation as to cause. Integrates various types of software (general
applications, scientific and special-purpose applications, operating systems,
compilers) into distributed computing environment. Acts as the system manager
for the computing environment including server system administration. Develops
systems software (scripts and tools) to assist in management of computing
environment. Monitors software usage and provides statistics on such. Must have
experience in CICS, MVS, JES2, TSO, AIX, or UNIX.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
JOB TITLE: ADP HARDWARE SPECIALIST. TCS-19

MINIMUM/GENERAL EXPERIENCE: Five (5) years progressive experience in IS/ADP
systems analysis. Specialized experience includes Three (3) years intensive and
progressive specific experience in the specialty. This job title category may
serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Determines feasible hardware alternatives in client server
environments. Reviews computer systems in terms of capabilities and makes
recommendations for improved utilization. Prepares or directs preparation of
reports concerning hardware. Prepares or participates in preparing functional
requirements and specification for hardware acquisitions.

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

--------------------------------------------------------------------------------
JOB TITLE: HELP DESK COORDINATOR. TCS-20

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in a business ADP
environment with emphasis on microcomputer hardware and applications.
Specialized experience includes One (1) year of specific experience in one or
more of the following areas: applications support, hardware/software analysis,
network administration, computer systems administration, diagnostic
troubleshooting of computer systems peripherals and associated devices or
communication media as specified in the delivery order. This job title category
may serve as a Delivery Order Manager on one or more delivery orders. Management
experience is required. Delivery Order Managers must have supervisory or project
leader experience. This experience is not in addition to the experience
requirements for the skill category. Project leader experience is experience
that demonstrates an individual's ability to accomplish projects/tasks through
others.

FUNCTIONAL RESPONSIBILITY: Staffs the Help Desk. Answers user's calls and
records all necessary information. Offers assistance over the phone and follows
the problem through to resolution. Assigns

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   59
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     32
--------------------------------------------------------------------------------

problems to the appropriate area for resolution. Logs and reports data on the
number and types of calls received.

MINIMUM EDUCATION: High school diploma.

--------------------------------------------------------------------------------
JOB TITLE: TECHNICAL WRITER. TCS-21

MINIMUM/GENERAL EXPERIENCE: Three (3) years of technical writing or
documentation experience. Specialized experience includes One (1) year of
specialized ADP technical documentation experience.

FUNCTIONAL RESPONSIBILITY: Prepares and edits IT/ADP documentation incorporating
information provided by user, specialist, analyst, programmer, and operations
personnel. Must have a substantial knowledge of the capabilities of computer
systems. Duties include writing, editing, and graphic presentation of technical
information for both technical and non-technical personnel. Interprets technical
documentation standards and prepares documentation according to standards. Must
be capable of working independently. This category provides incidental support
for other approved requirements.

MINIMUM EDUCATION: An Associate's degree from an accredited college or
university or two (2) years of college or university study in a related
discipline.

--------------------------------------------------------------------------------
JOB TITLE: COMPUTER GRAPHICS ILLUSTRATOR. TCS-22

MINIMUM/GENERAL EXPERIENCE: Three (3) years experience in creating and
generating graphics using computer graphics software.

FUNCTIONAL RESPONSIBILITY: Duties will include recommending various methods of
portraying ideas and the design, layout, and generation of a variety of
graphical presentation products from rough drafts or outlines. Must possess
skill in the preparation of graphs, charts and text data for visual
presentations. Duties will be performed using complex automated color graphic
equipment and PC software packages. A basic knowledge of graphic equipment,
graphic software, file formats and graphic terms is required.

MINIMUM EDUCATION: High school diploma.

--------------------------------------------------------------------------------
JOB TITLE: SENIOR PROGRAMMER. TCS-23

MINIMUM/GENERAL EXPERIENCE: Must have a minimum of fours years of experience in
one or more of the following COBOL II, C, C++, Customer Information Control
System (CICS), and HTML/JAVA. This Job title category may serve as a Delivery
Order Manager on one or more delivery orders. Management experience is required.
Delivery Order Managers must have supervisory or project leader experience. This
experience is not in addition to the experience requirements for the skill
category. Project leader experience is experience that demonstrates an
individual's ability to accomplish projects/tasks through others.

FUNCTIONAL RESPONSIBILITY- Augments other skill categories by providing unique
IS/ADP systems knowledge in areas that require in-depth current knowledge of a
specialized IS discipline. Such specialized knowledge can only be achieved
through intensive, extensive, and continuous application of the specialty at a
level exceeding that of the more general and broad based IS requirements of the
skill category series. May participate in all phases of delivery order
performance with emphasis on the planning, analysis, testing, documentation, and
acceptance phases. Prepares and delivers presentations and briefings as
required. Participates in all phases of software development with emphasis on
the programming, testing and documentation acceptance phases. Designs and
prepares technical reports and related documentation.

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS
<PAGE>   60
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    33
--------------------------------------------------------------------------------

MINIMUM EDUCATION: A Bachelor's degree from an accredited college or university
with a major in Computer Science, Information Systems, Engineering, Business, or
other related scientific or technical discipline.

--------------------------------------------------------------------------------
JOB TITLE: CLERK. TCS-24

MINIMUM/GENERAL EXPERIENCE: Two (2) years experience in support administrative
position requiring PC skills; telephone skills; and administrative, typing, and
reproduction tasks.

FUNCTIONAL RESPONSIBILITY: Responsible for typing, duplication, binding, and
delivery of documentation and briefing material for delivery to the Government.

MINIMUM EDUCATION: High School Diploma

--------------------------------------------------------------------------------
JANUARY 20, 1998                                                             TCS
<PAGE>   61

GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                    34

--------------------------------------------------------------------------------
F.  PRICING

                           TELECOMMUNICATION SYSTEMS          20 JANUARY, 1998

                   GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H
                      GSA MULTIPLE AWARD SCHEDULE PROGRAM
                                  FSC GROUP 70
                       SUPPORT DATA FOR LABOR CATEGORIES
                      OFF-SITE (CONTRACTOR FACILITY) RATE

<TABLE>
<CAPTION>
                                                           BURDENED
 ORDER                                                      HOURLY
NUMBER         LABOR CATEGORY                                RATE
-------------------------------------------------------------------
<S>            <C>                                          <C>
TCS-01 OFF     Program Manager                              $88.10
TCS-02 OFF     Systems Manager                              $87.04
TCS-03 OFF     Sr. Systems Analyst                          $61.28
TCS-04 OFF     Jr. Systems Analyst                          $35.51
TCS-05 OFF     Systems Administrator                        $63.31
TCS-06 OFF     Network Manager                              $91.92
TCS-07 OFF     Sr. Network Engineer                         $70.03
TCS-08 OFF     Jr. Network Engineer                         $40.30
TCS-09 OFF     Network Administrator                        $58.03
TCS-10 OFF     Sr. Network Technician                       $54.37
TCS-11 OFF     Jr. Network Technician                       $26.88
TCS-12 OFF     Computer Repair Technician                   $23.47
TCS-13 OFF     Computer Resources Administrator             $59.09
TCS-14 OFF     Data Base Management Specialist              $68.03
TCS-15 OFF     Office Automation Specialist                 $62.04
TCS-16 OFF     Configuration Management Specialist          $59.09
TCS-17 OFF     Computer Graphics Specialist                 $42.98
TCS-18 OFF     Systems Software Specialist                  $64.84
TCS-19 OFF     ADP Hardware Specialist                      $64.53
TCS-20 OFF     Help Desk Coordinator                        $47.68
TCS-21 OFF     Technical Writer                             $45.52
TCS-22 OFF     Computer Graphics Illustrator                $26.27
TCS-23 OFF     Sr. Programmer                               $56.94
TCS-24 OFF     Clerk                                        $29.78
</TABLE>

--------------------------------------------------------------------------------
January 20, 1998                                                            TCS

<PAGE>   62
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                     35
--------------------------------------------------------------------------------

                           TELECOMMUNICATION SYSTEMS            20 JANUARY, 1998

                   GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H
                      GSA MULTIPLE AWARD SCHEDULE PROGRAM
                                  FSC GROUP 70
                       SUPPORT DATA FOR LABOR CATEGORIES
                       ON-SITE (GOVERNMENT FACILITY) RATE

<TABLE>
<CAPTION>
                                                                     BURDENED
  ORDER                                                               HOURLY
 NUMBER     LABOR CATEGORY                                             RATE
-------------------------------------------------------------------------------
<S>         <C>                                                      <C>
TCS-01 ON   Program Manager                                           $72.71
TCS-02 ON   Systems Manager                                           $71.84
TCS-03 ON   Sr. Systems Analyst                                       $51.28
TCS-04 ON   Jr. Systems Analyst                                       $29.62
TCS-05 ON   Systems Administrator                                     $52.24
TCS-06 ON   Network Manager                                           $75.86
TCS-07 ON   Sr. Network Engineer                                      $58.60
TCS-08 ON   Jr. Network Engineer                                      $33.26
TCS-09 ON   Network Administrator                                     $47.89
TCS-10 ON   Sr. Network Technician                                    $44.87
TCS-11 ON   Jr. Network Technician                                    $22.18
TCS-12 ON   Computer Repair Technician                                $19.36
TCS-13 ON   Computer Resources Administrator                          $48.76
TCS-14 ON   Data Base Management Specialist                           $68.03
TCS-15 ON   Office Automation Specialist                              $51.21
TCS-16 ON   Configuration Management Specialist                       $48.76
TCS-17 ON   Computer Graphics Specialist                              $35.47
TCS-18 ON   Systems Software Specialist                               $53.22
TCS-19 ON   ADP Hardware Specialist                                   $53.26
TCS-20 ON   Help Desk Coordinator                                     $39.36
TCS-21 ON   Technical Writer                                          $38.09
TCS-22 ON   Computer Graphics Illustrator                             $22.65
TCS-23 ON   Sr. Programmer                                            $46.99
TCS-24 ON   Clerk                                                     $24.84
</TABLE>

--------------------------------------------------------------------------------
January 20, 1998                                                             TCS

<PAGE>   63
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                               36
--------------------------------------------------------------------------------

G. SMALL BUSINESS

                            USA COMMITMENT TO PROMOTE
                          SMALL BUSINESS PARTICIPATION
                              PROCUREMENT PROGRAMS
PREAMBLE

TeleCommunication Systems,Inc. provides commercial products and services to the
Federal Government. We are committed to promoting participation of small, small
disadvantaged and women-owned small businesses in our contracts. We pledge to
provide opportunities to the small business community through reselling
opportunities, mentor-protege programs, joint ventures, teaming arrangements,
and subcontracting.

COMMITMENT

To actively seek and partner with small businesses.

To identify, qualify, mentor and develop small, small disadvantaged and
women-owned small businesses by purchasing from these businesses whenever
practical.

To develop and promote company policy initiatives that demonstrate our support
for awarding contracts and subcontracts to small business concerns.

To undertake significant efforts to determine the potential of small, small
disadvantaged and women-owned small business to supply products and services to
our company.

To insure procurement opportunities are designed to permit the maximum possible
participation of small, small disadvantaged, and women-owned small businesses.

To attend business opportunity workshops, minority business enterprise seminars,
trade fairs, procurement conferences, etc., to identify and increase small
businesses with whom to partner.

To publicize in our marketing publications our interest in meeting small
businesses that may be interested in subcontracting opportunities.

WE SIGNIFY OUR COMMITMENT TO WORK IN PARTNERSHIP WITH SMALL, SMALL DISADVANTAGED
AND WOMEN-OWNED SMALL BUSINESSES TO PROMOTE AND INCREASE THEIR PARTICIPATION IN
FEDERAL GOVERNMENT CONTRACTS. TO ACCELERATE POTENTIAL OPPORTUNITIES PLEASE
CONTACT JEFFREY MOGELINSKI AT (410) 280-1236, FAX: (410) 263-7617.

--------------------------------------------------------------------------------

January 20, 1998                                                      TCS
<PAGE>   64
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                           37
--------------------------------------------------------------------------------

H. BPA FORMAT

SUGGESTED BLANKET PURCHASE AGREEMENT (BPA) FORMAT IN THE PROPOSED FEED IT,
SCHEDULE PRICELIST.

                                   BEST VALUE
                           BLANKET PURCHASE AGREEMENT
                             FEDERAL SUPPLY SCHEDULE
                           (INTERNET CUSTOMER NAME)

In the spirit of the Federal Acquisition Streamlining Act
 (Agency) and (Contractor) enter into a cooperative agreement to further reduce
---------     ------------
the administrative costs of acquiring commercial items from the General Services
Administration (GSA) Federal Supply Schedule Contract(s)
                                                        ----------------------
Federal Supply Schedule contract BPAs eliminate contracting and open market
costs such as: search for sources; the development of technical documents,
solicitations and the evaluation of offers. Teaming Arrangements are permitted
with Federal Supply Schedule Contractors in accordance with Federal Acquisition
Regulation (FAR) 9.6.

This BPA will further decrease costs, reduce paperwork, and save time by
eliminating the need for repetitive, individual purchases from the schedule
contract. The end result is to create a purchasing mechanism for the GOVERNMENT
THAT WORKS BETTER AND COSTS LESS.

SIGNATURES

-----------------------------------             --------------------------------
AGENCY                         DATE              CONTRACTOR                DATE

--------------------------------------------------------------------------------
January 20, 1998                                                           TCS

<PAGE>   65
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                                  38
--------------------------------------------------------------------------------
                                                            BPA NUMBER
                                                                      ----------

                                 (CUSTOMER NAME)
                          BLANKET PURCHASE AGREEMENT

Pursuant to GSA Federal Supply Schedule Contract Number(s)_________, Blanket
Purchase Agreements, the Contractor agrees to the following terms of a Blanket
Purchase Agreement (BPA) EXCLUSIVELY WITH (Ordering Agency):

(1) The following contract items can be ordered under this BPA. All orders
placed against this BPA are subject to the terms and conditions of the contract,
except as noted below:

MODEL NUMBER/PART NUMBER                 *SPECIAL BPA DISCOUNT/PRICE

--------------------------              --------------------------------

--------------------------              --------------------------------

(2) Delivery:

DESTINATION                              DELIVERY SCHEDULE/DATES

--------------------------              --------------------------------

--------------------------              --------------------------------

(3) The Government estimates, but does not guarantee, that the volume of
purchases through this agreement will be _______________.

(4) This BPA does not obligate any funds.

(5) This BPA expires on ___________________ or at the end of the contract
period, whichever is earlier.

(6) The following office(s) is hereby authorized to place orders under this BPA:

OFFICE                                   POINT OF CONTACT

--------------------------              --------------------------------

--------------------------              --------------------------------

(7) Orders will be placed against this BPA via Electronic Data Interchange
(EDI), FAX, or paper.

(8) Unless otherwise agreed to, all deliveries under this BPA must be
accompanied by delivery tickets or sales slips that must contain the following
information as a minimum:

      (a) Name of Contractor;

      (b) Contract Number;

      (c) BPA Number;

--------------------------------------------------------------------------------
January 20, 1998                                                 TCS

<PAGE>   66
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                              39
--------------------------------------------------------------------------------

      (d) Model Number or National Stock Number (NSN);

      (e) Purchase Order Number;

      (f) Date of Purchase;

      (g) Quantity, Unit Price, and Extension of Each Item (unit prices and
      extensions need not be shown when incompatible with the use of automated
      systems; provided, that the invoice is itemized to show the information);
      and

      (h) Date of Shipment.

(9) The requirements of a proper invoice are specified in the Federal Supply
Schedule contract. Invoices will he submitted to the address specified within
the purchase order transmission issued against this BPA.

(10) The terms and conditions included in this BPA apply to all purchases made
pursuant to it. In the event of an inconsistency between the provisions of this
BPA and the Contractor's invoice, the provisions of this BPA will take
precedence.

--------------------------------------------------------------------------------

January 20, 1998                                                        TCS
<PAGE>   67
GSA SCHEDULE CONTRACT NUMBER GS-35F-4655H                              40
--------------------------------------------------------------------------------

I.    TEAMING ARRANGEMENTS
                           BASIC GUIDELINES FOR USING
                         "CONTRACTOR TEAM ARRANGEMENTS"

Federal Supply Schedule Contractors may use "Contractor Team Arrangements" (see
FAR 9.6) to provide solutions when responding to a customer agency requirements.

These Team Arrangements can be included under a Blanket Purchase Agreement
(BPA). BPAs are permitted under all Federal Supply Schedule contracts.

Orders under a Team Arrangement are subject to termsand conditions or the
Federal Supply Schedule Contract.

Participation in a Team Arrangement is limited to Federal Supply Schedule
Contractors.

Customers should refer to FAR 9.6 for specific details on Team Arrangements.

Here is a general outline on how it works:

   -  The customer identifies their requirements.

   -  Federal Supply Schedule Contractors may individually meet the customers
      needs, or -

   -  Federal Supply Schedule Contractors may individually submit a Schedules
      "Team Solution" to meet the customer's requirement.

   -  Customers make a best value selection.

---------------------------------------------------------------------------

January 20, 1998                                                  TCS

<PAGE>   68

<TABLE>
<S>                           <C>                 <C>           <C>      <C>             <C>       <C>      <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
                                                                1. CONTRACT ID CODE                         PAGE OF PAGES
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                             1   |    5
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT/MODIFICATION NO.    3. EFFECTIVE DATE   4. REQUISITION/PURCHASE REQ. NO.                  5. PROJECT NO. (If applicable)
             PCO 01                see 16c
------------------------------------------------------------------------------------------------------------------------------------
ISSUED BY               CODE   issued 98169       7. ADMINISTERED BY (If other than Item 6)               CODE
                              -----------------                                                                 --------------------
GENERAL SERVICES ADMINISTRATION
  ADP ACQUISITION CENTER (FCI)
 1941 JEFFERSON DAVIS HIGHWAY
     ARLINGTON, VA 22202
------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF CONTRACTOR (No., street, country, State and ZIP Code)                ( )  9A. AMENDMENT OF SOLICITATION NO.
                                                                                         ---

TeleCommunication Systems, Inc.                 2000-000                                      --------------------------------------
275 West Street, Suite 400                                                                    9B. DATED (SEE ITEM 11)
Annapolis, MD 21401                       Accounting
                                          Commerce                                            --------------------------------------
                                                                                              10A. MODIFICATION OF CONTRACT/ORDER
                                                                                                   NO.
                                                                                                   GS-35F-4655H
                                                                                              --------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------
CODE                          FACILITY CODE                                                          1/20/98
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
                                                                                     [ ] is extended.           [ ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning          __________ copies of the amendment; (b) By acknowledging receipt of this
amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation
and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE
HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already
submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.

------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)

------------------------------------------------------------------------------------------------------------------------------------
                             13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                               IT MODIFIES THE CONTRACTOR/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
( ) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CON-
       TRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office,
       appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
------------------------------------------------------------------------------------------------------------------------------------
X   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
           CLAUSE G.1, MODIFICATIONS
------------------------------------------------------------------------------------------------------------------------------------
    D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT: Contractor      [ ] is not    [X] is required to sign this document and return         2    copies to the issuing office.
                                                                                               -------
------------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

          The above referenced contract under FSC Group 70, Information
          Technology Multiple Award Schedule, is hereby modified.

          All other Terms and Conditions remain the same, except as indicated
          below:

          (NOTE: By signing this modification, Contractor has incorporated all the changes into the contract.)

------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
     Jeffrey Mogelinski                                                       /s/ BENN A. REED, Contracting Officer
     Contracts Manager
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                           15C. DATE SIGNED       16B. UNITED STATES OF AMERICA             16C. DATE SIGNED

     /s/ JEFFREY MOGELINSKI                             6/22/98           BY  /s/ BEN A. REED                             6/30/98
----------------------------------------                                     ---------------------------------
(Signature of Person authorized to sign)                                     (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8070                                        30-105                                     STANDARD FORM 30 (REV. 10-83)
PREVIOUS EDITION UNUSABLE                                                                                          Prescribed by GSA
</TABLE>
<PAGE>   69

Modification to Contracts Awarded Under FCI-96-DL0001B         Page 2 of 5 Pages

1.     DELETE paragraph I.15 Economic Price Adjustment in its entirety and
       REPLACE it with the following:

I.15   ECONOMIC PRICE ADJUSTMENT (GSAR 552.216-71) (FEB 1996) (ALTERNATE I--JAN
       1989) (FCI DEVIATION-JUN 1998)

Price adjustments include price increases and price decreases. Adjustments will
be considered as follows:

(a)    Contractors shall submit price decreases anytime during the contract
period in which they occur. Price decreases will be handled in accordance with
the provisions of the Price Reductions Clause.

(b)    Contractors may request price increases to be effective on or after the
first 12-months of the contract period providing all of the following conditions
are met:

              (1)    Increases result from a reissue or other modification of
the Contractor's commercial catalog/pricelist that was used as the basis for the
contract award or from a change in the Contractor's market prices that were the
Basis of Negotiation.

              (2)    No more than three increases will be considered during each
succeeding 12-month period of the contract. (For succeeding contract periods of
less than 12 months, up to three increases will be considered subject to the
other conditions of this subparagraph (b).)

              (3)    Increases are requested before the last 60 days of the
contract period.

              (4)    At least 30 days elapse between requested increases.

(c)    In any contract period during which price increases will be considered,
the aggregate of the increases during any 12-month period shall not exceed ten
percent (10%) of the contract unit price in effect at the end of the preceding
12-month period. The Government reserves the right to raise the ceiling when
market conditions during the contract period support such a change.

<PAGE>   70

Modification to Contracts Awarded Under FCI-96-DL0001B         Page 3 of 5 Pages

(d)    The following material shall be submitted with the request for a price
increase:

       (1)    A copy of the commercial catalog/pricelist showing the price
increase and the effective date for commercial customers or evidence that the
Contractor's market prices that were the Basis of Negotiation have increased.

       (2)    Commercial Sales Practice format regarding the Contractor's
commercial pricing practice relating to the reissued or modified
catalog/pricelist, or a certification that no change has occurred in the data
since completion of the initial negotiation or a subsequent submission.

       (3)    Documentation supporting the reasonableness of the price increase.

(e)    The Government reserves the right to exercise one of the following
options:

       (1)    Accept the Contractor's price increases as requested when all
conditions of (b), (c), and (d) of this clause are satisfied;

       (2)    Negotiate more favorable discounts from the new commercial prices
when the total increase requested is not supported; or,

       (3)    Remove the product(s) from contract involved pursuant to the
Cancellation Clause of this contract, when the increase requested is not
supported.

(f)    The contract modification reflecting the price adjustment shall be
effective upon approval by the Contracting Officer, or on the effective date of
the commercial pricelist, whichever is later. The increased contract prices
shall apply to delivery orders issued to the Contractor on or after the
effective date of the contract modification.

<PAGE>   71

Modification to Contracts Awarded Under FCI-96-DL0001B         Page 4 of 5 Pages

2.     DELETE THE TITLE AND FIRST PARAGRAPH OF PARAGRAPH H.9 YEAR 2000
       WARRANTY-COMMERCIAL SUPPLY ITEM AND REPLACE IT WITH THE FOLLOWING. THE
       REMAINDER OF THE CLAUSE IS UNCHANGED.

       H.9    YEAR 2000 WARRANTY--COMMERCIAL SUPPLY ITEMS (I-FCI-550-B)
              (JUN 1998)

       "Year 2000 compliant," as used in this part, means, with respect to
       information technology, that the information technology accurately
       processes date/time data, (including, but not limited to, calculating,
       comparing, and sequencing) from, into, and between the twentieth and
       twenty-first centuries, and the years 1999 and 2000 and leap year
       calculations, to the extent that other information technology, used in
       combination with the information technology being acquired, properly
       exchanges date/time data with it.

3.     ATTACHMENT I GUIDELINES FOR FORMAT AND CONTENT OF FSS IT SCHEDULE
       PRICELIST, MAKE THE FOLLOWING CHANGES TO THE:

       A.     Information for Ordering Offices, DELETE the first paragraph from
       item 20. Year 2000 Warranty-Commercial Supply Items and REPLACE with the
       following: The remainder of the clause is unchanged.

              20.    YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS

              "Year 2000 compliant," as used in this part, means, with respect
              to information technology, that the information technology
              accurately processes date/time data, (including, but not limited
              to, calculating, comparing, and sequencing) from, into, and
              between the twentieth and twenty-first centuries, and the years
              1999 and 2000 and leap year calculations, to the extent that other
              information technology, used in combination with the information
              technology being acquired, properly exchanges date/time data with
              it.

<PAGE>   72

Modification to Contracts Awarded Under FCI-96-DL0001B         Page 5 of 5 Pages

       B.     Terms and Conditions Applicable to Term Software Licenses (SIN
       132-32), Perpetual Software Licenses (SIN 132-33), and Maintenance (SIN
       132-34) of General Purpose Commercial Information Technology Software,
       page 133, DELETE item 8.a. Utilization Limitations; Definition of
       Commercial Computer Software and REPLACE with the following: **NOTE: THE
       REMAINDER OF THE CLAUSE DOES NOT CHANGE.**

              8.a.   Software acquisition is limited to Commercial Computer
              Software defined in FAR Part 2.101.

       C.     Terms and Conditions Applicable to IT Professional Services (SIN
       132-51) and EC Services (SIN 132-52), page 145, DELETE item 4.c.
       Performance of Services; Guarantee of Satisfactory Completion and
       REPLACE with the following:

              4.c.   The Agency should include the criteria for satisfactory
              completion for each task in the Statement of Work or Delivery
              Order. Services shall be completed in a good and workmanlike
              manner.

<PAGE>   73
<TABLE>
<S>                           <C>                 <C>           <C>      <C>             <C>       <C>      <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
                                                                1. CONTRACT ID CODE                         PAGE OF PAGES
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                             1   |    5
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT/MODIFICATION NO.    3. EFFECTIVE DATE   4. REQUISITION/PURCHASE REQ. NO.                  5. PROJECT NO. (If applicable)
    (issued 98169)PCO 02           see 16c
------------------------------------------------------------------------------------------------------------------------------------
ISSUED BY               CODE                      7. ADMINISTERED BY (If other than Item 6)               CODE
                              -----------------                                                                 --------------------
GENERAL SERVICES ADMINISTRATION
  ADP ACQUISITION CENTER (FCI)
  1941 JEFFERSON DAVIS HIGHWAY
       ARLINGTON, VA 22202
------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF CONTRACTOR (No. street, country, State and ZIP Code)                 ( )  9A. AMENDMENT OF SOLICITATION NO.
                                                                                         ---       FCIS-JB-980001B
                                                                                          X
TeleCommunication Systems, Inc.                                                               --------------------------------------
275 West Street                                                                               9B. DATED (SEE ITEM 11)
Suite 400                                                                                          98082
Annapolis, MD 21401                                                                      -------------------------------------------
                                                                                              10A. MODIFICATION OF CONTRACT/ORDER
                                                                                                    NO.
                                                                                                       GS-35F-4655H
                                                                                              --------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------
CODE                          FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
[ ] is extended.   [ ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment
on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and
amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR
AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already
submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
------------------------------------------------------------------------------------------------------------------------------------
                13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE
                                    CONTRACTOR/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
( ) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE
   CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH
   IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
------------------------------------------------------------------------------------------------------------------------------------
X  C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
           CLAUSE G.1, MODIFICATIONS
------------------------------------------------------------------------------------------------------------------------------------
D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return  2  copies to the issuing office.
                                                                                       ---
------------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

          The above referenced solicitation under FSC Group 70, Information
          Technology Multiple Award Schedule, is hereby amended.

          All other Terms and Conditions remain the same, except as indicated
          below:

          (NOTE: By signing this amendment, Contractor has incorporated all the changes into the
          solicitation.)

------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
          Jeffrey Mogelinski
          Manager, Contracts
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                           16C. DATE SIGNED       16B. UNITED STATES OF AMERICA             16C. DATE SIGNED

            /s/ Jeffrey Mogelinski                     12/14/98          BY  /s/ Ben A. Reed                            12/18/98
----------------------------------------                                     ---------------------------------
(Signature of Person authorized to sign)                                     (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8070                                        30-105                                     STANDARD FORM 30 (REV. 10-83)
PREVIOUS EDITION UNUSABLE                                                                                          Prescribed by GSA
</TABLE>
<PAGE>   74
Modification to Contracts Awarded Under FCI-96-DL0001B       Page 2 of 5 Pages

1.   DELETE paragraph I.15 Economic Price Adjustment in its entirety and
     REPLACE it with the following:

I-15 ECONOMIC PRICE ADJUSTMENT (GSAR 552.216-71) (FEB 1996)
     (alternate I-JAN 1989) (FCI DEVIATION-JUN 1998)

Price adjustments include price increases and price decreases. Adjustments will
be considered as follows:

(a)  Contractors shall submit price decreases anytime during the contract
period in which they occur. Price decreases will be handled in accordance with
the provisions of the Price Reductions Clause.

(b)  Contractors may request price increases to be effective on or after the
first 12-months of the contract period providing all of the following conditions
are met:

          (1)  Increases result from a reissue or other modification of the
Contractor's commercial catalog/pricelist that was used as the basis for the
contract award or from a change in the Contractor's market prices that were the
Basis of Negotiation.

          (2)  No more than three increases will be considered during each
succeeding 12-month period of the contract. (For succeeding contract periods of
less than 12 months, up to three increases will be considered subject to the
other conditions of this subparagraph (b).)

          (3)  Increases are requested before the last 60 days of the contract
period.

          (4)  At least 30 days elapse between requested increases.

(c)  In any contract period during which price increases will be considered,
the aggregate of the increases during any 12-month period shall not exceed ten
percent (10%) of the contract unit price in effect at the end of the preceding
12-month period. The Government reserves the right to raise the ceiling when
market conditions during the contract period support such a change.

<PAGE>   75
Modification to Contracts Awarded Under FCI-96-DL0001B         Page 3 of 5 Pages

(d)  The following material shall be submitted with the request for a price
increase:

     (1)  A copy of the commercial catalog/pricelist showing the price increase
and the effective date for commercial customers or evidence that the
Contractor's market prices that were the Basis of Negotiation have increased.

     (2)  Commercial Sales Practice format regarding the Contractor's
commercial pricing practice relating to the reissued or modified
catalog/pricelist, or a certification that no change has occurred in the data
since completion of the initial negotiation or a subsequent submission.

     (3)  Documentation supporting the reasonableness of the price increase.

(e)  The Government reserves the right to exercise one of the following options:

     (1)  Accept the Contractor's price increases as requested when all
conditions of (b), (c), and (d) of this clause are satisfied;

     (2)  Negotiate more favorable discounts from the new commercial prices
when the total increase requested is not supported; or,

     (3)  Remove the product(s) from contract involved pursuant to the
Cancellation Clause of this contract, when the increase requested is not
supported.

(f)  The contract modification reflecting the price adjustment shall be
effective upon approval by the Contracting Officer, or on the effective date of
the commercial pricelist, whichever is later. The increased contract prices
shall apply to delivery orders issued to the Contractor on or after the
effective date of the contract modification.
<PAGE>   76
Modification to Contracts Awarded Under FCI-96-DL0001B        Page 4 of 5 Pages

2. DELETE the title and first paragraph of paragraph H.9 YEAR 2000
   WARRANTY-COMMERCIAL SUPPLY ITEM and REPLACE it with the following. The
   remainder of the clause is unchanged.

   H.9  YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS (I-FCI-550-B) (JUN 1998)

   "Year 2000 compliant," as used in this part, means, with respect to
   information technology, that the information technology accurately processes
   date/time data, (including, but not limited to, calculating, comparing, and
   sequencing) from, into, and between the twentieth and twenty-first centuries,
   and the years 1999 and 2000 and leap year calculations, to the extent that
   other information technology, used in combination with the information
   technology being acquired, properly exchanges date/time data with it.

3. Attachment I GUIDELINES FOR FORMAT AND CONTENT OF FSS IT SCHEDULE PRICELIST,
   make the following changes to the:

   A.   Information for Ordering Offices, DELETE the first paragraph from item
   20. Year 2000 Warranty-Commercial Supply Items and REPLACE with the
   following: The remainder of the clause is unchanged.

        20.  YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS

        "Year 2000 compliant," as used in this part, means, with respect to
        information technology, that the information technology accurately
        processes date/time data, (including, but not limited to, calculating,
        comparing, and sequencing) from, into, and between the twentieth and
        twenty-first centuries, and the years 1999 and 2000 and leap year
        calculations, to the extent that other information technology, used in
        combination with the information technology being acquired, properly
        exchanges date/time data with it.
<PAGE>   77
Modification to Contracts Awarded Under FCI-96-DL0001B         Page 5 of 5 Pages

B.   Terms and Conditions Applicable to Term Software Licenses (SIN 132-32),
Perpetual Software Licenses (SIN 132-33), and Maintenance (SIN 132-34) of
General Purpose Commercial Information Technology Software, page 133, DELETE
item 8.a. Utilization Limitations; Definition of Commercial Computer Software
and REPLACE with the following: **NOTE: The remainder of the clause does NOT
change.**

     8.a. Software acquisition is limited to Commercial Computer Software
          defined in FAR Part 2.101.

C.   Terms and Conditions Applicable to IT Professional Services (SIN 132-51)
and EC Services (SIN 132-52), page 145, DELETE item 4.c. Performance of
Services; Guarantee of Satisfactory Completion and REPLACE with the following:

     4.c. The Agency should include the criteria for satisfactory completion for
          each task in the Statement of Work or Delivery Order. Services shall
          be completed in a good and workmanlike manner.
<PAGE>   78
<TABLE>
<S>                           <C>                 <C>           <C>      <C>             <C>       <C>      <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
                                                                1. CONTRACT ID CODE                         PAGE OF PAGES
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                             1   |    53
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT/MODIFICATION NO.    3. EFFECTIVE DATE   4. REQUISITION/PURCHASE REQ. NO.                  5. PROJECT NO. (If applicable)
      MODIFICATION # PCO-03
------------------------------------------------------------------------------------------------------------------------------------
ISSUED BY               CODE                      7. ADMINISTERED BY (If other than Item 6)               CODE
                              -----------------                                                                 --------------------
GSA/FSS/FCI
CRYSTAL MALL #4, ROOM 1017
1941 JEFFERSON DAVIS HIGHWAY
ARLINGTON, VA 22202
------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF CONTRACTOR (No., street, country, State and ZIP Code)                (X)  9A. AMENDMENT OF SOLICITATION NO.
                                                                                         ---

TeleCommunication Systems, Inc.                                                                -------------------------------------
275 West Street,                                                                              9B. DATED (SEE ITEM 11)
Suite 400
Annapolis, MD 21401                                                                      -------------------------------------------
                                                                                              10A. MODIFICATION OF CONTRACT/ORDER
                                                                                          X          NO. GS-35F-4655H
                                                                                              --------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------
CODE                          FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
                                                                                             [ ] is extended.   [ ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment
on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and
amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR
AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already
submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
------------------------------------------------------------------------------------------------------------------------------------
                       13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE
                                      CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
( ) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE
       CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH
       IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (B).
------------------------------------------------------------------------------------------------------------------------------------
    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
------------------------------------------------------------------------------------------------------------------------------------
 X  D. OTHER (Specify type of modification and authority)  PER SECTION G.1

------------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return  2  copies to the issuing office.
                                                                                       ---
------------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

The above referenced contract under FSC Group 70, Information Technology Multiple Award Schedule, is hereby modified as follows:

Extend end date of contract to 1/19/2003

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

Jeffrey Mogelinski
Manager, Contracts
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                           16C. DATE SIGNED       16B. UNITED STATES OF AMERICA             16C. DATE SIGNED

         /s/ Jeffrey Mogelinski                        12/14/98           BY  /s/ Ben A. Reed                           12/18/98
----------------------------------------                                     ---------------------------------
(Signature of Person authorized to sign)                                     (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8070                                        30-105                                     STANDARD FORM 30 (REV. 10-83)
PREVIOUS EDITION UNUSABLE                                                                              Prescribed by GSA

                                                                                                       FAR (48 CFR) 53.243
 </TABLE>
<PAGE>   79
Modification                                                Page 3 of 53 Pages

___ Microwave Radio Equipment/Antennas and Waveguides

___ Satellite Communications Equipment

    FSC CLASS 5826 - RADIO NAVIGATION EQUIPMENT, AIRBORNE

___ Airborne Radio Navigation Equipment

    FSC CLASS 5830 - INTERCOMMUNICATION AND PUBLIC ADDRESS
    SYSTEMS, EXCEPT AIRBORNE

___ Pagers and Public Address Systems (wired and wireless
    transmission, including background music systems)
    (NOTE: Pager Transmissions Services are excluded from this
    solicitation.)

    FSC CLASS 5841 - RADAR EQUIPMENT, AIRBORNE

___ Airborne Radar Equipment

    FSC CLASS 5895 - MISCELLANEOUS COMMUNICATION EQUIPMENT

___ Miscellaneous Communications Equipment

Indicate if the following is being offered in support of SIN
132-8 PURCHASE OF EQUIPMENT

___ Installation for equipment offered under SIN 132-8
    (FPDS Code N070)

___ Deinstallation for equipment offered under SIN 132-8
    (FPDS Code N070)

___ Reinstallation for equipment offered under SIN 132-8
    (FPDS Code N070)

NOTE: INSTALLATION MUST BE INCIDENTAL TO, IN CONJUNCTION WITH
AND IN DIRECT SUPPORT OF THE PRODUCTS SOLD UNDER SIN 132-8 ON
THIS CONTRACT AND CANNOT BE PURCHASED SEPARATELY.
<PAGE>   80
Modification                                                  Page 5 of 53 Pages

i. Radar Equipment (except airborne radar equipment). Offers for radar equipment
(other than airborne radar equipment) must be made to the GSA Federal Supply
Service under FSC Group 58, Part IX. Contact Mr. William Glacken on
(215)656-3835.

ii. Electrical Equipment - e.g., Uninterruptible Power Supplies, Computer
Back-Up Power Systems, Surge Suppressers, Power Line Conditioners, Surge
Absorbers, etc. may be offered under this solicitation only in conjunction with
the IT equipment these devices support. Offers which are limited to the
electrical equipment cited above should be made to the GSA Federal Supply
Service under FSC Group 61, Part V, Section B. Contact Mr. Dwight Young on
(817)978-8372.

iii. Training Courses for products which are outside the scope of this Schedule.

iv. Diskettes, Disk Cartridges, Disk Packs, Tape Cartridges, Tapes, and Optical
Disks, may be offered only in conjunction with the hardware devices which
utilize these supply items. Offers which do not include the hardware devices may
be made under Federal Supply Schedule FSC Group 58, Part V. Contact
(212)264-2692.

v. Carrying cases, except one per portable CPU purchase.

vi. Financial Management Software that specifically covers complete primary
accounting systems that meet Joint Financial Management Improvement Program
(JFMIP) Core Financial System Requirements. Contact Ms. Kathy Wood, GSA, Federal
Technology Service, on (703)756-4214.

vii. Subscription services for databases on magnetic media and/or on optical
disk. Contact Ms. Mary Ann DeFeo on (212)264-2306.

viii. Any products which are not U.S. Made End Products, Designated Country End
Products, Caribbean Basin Country End Products, Canadian End Products, or
Mexican End Products in accordance with FAR 25.402(c) and General Services
Administration Acquisition Regulation (GSAR) 525.402(a).

ix. Any products or services that are not "commercial" as defined in accordance
with FAR 52.202-1(c).
<PAGE>   81
Modification                                                  Page 6 of 53 Pages

4.    ADD THE FOLLOWING NEW PARAGRAPH TO THE END OF SECTION F:

F.5   DELIVERY PRICES (F-FCI-202-G) (DEC 1997)

(a) Prices offered must cover delivery as provided below to destinations located
within the 48 contiguous States and the District of Columbia.

(b) The Offeror is requested to indicate below whether or not prices submitted
cover delivery f.o.b. destination in Alaska, Hawaii, the Commonwealth of Puerto
Rico, and such overseas locations as specified:

                                          (Yes)     (No)
      Alaska                             ______      X
      Hawaii                             ______      X
      Puerto Rico                        ______
      Overseas Locations                 ______     ______
            Specify: _________________________________

(c) When deliveries are made to destinations outside the 48 contiguous States;
i.e., Alaska, Hawaii, the Commonwealth of Puerto Rico, and such overseas
locations as specified, and are not covered by paragraph (b), above, the
following conditions will apply:

      (1) Delivery will be f.o.b. inland carrier, point of exportation (FAR
52.247-38), with the transportation charges to be paid by the Government from
point of exportation to destination in Alaska, Hawaii, the Commonwealth of
Puerto Rico, and such overseas locations specified, as designated by the
ordering office. The Contractor shall add the actual cost of transportation to
destination from the point of exportation in the 48 contiguous States nearest to
the designated destination. Such costs will, in all cases, be based upon the
lowest regularly established rates on file with the Interstate Commerce
Commission, the U.S. Maritime Commission (if shipped by water), or any State
regulatory body, or those published by the U.S. Postal Service; and must be
supported by paid freight or express receipt or by a statement of parcel post
charges including weight of shipment.

      (2) The right is reserved to ordering agencies to furnish Government bills
of lading.

(d) Ordering offices will be required to pay differential between freight
charges and express charges where express deliveries are desired by the
Government.
<PAGE>   82
Modification                                                  Page 7 of 53 Pages

5.    DELETE SECTION G.1 MODIFICATIONS IN ITS ENTIRETY AND REPLACE WITH THE
      FOLLOWING:

G.1.A    MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (GSAR 552.243-72) (AUG 1997)
         (FCI DEVIATION-DEC 1997)

(a) GENERAL. The Contractor may request a contract modification by submitting a
request to the Contracting Officer for approval, except as noted in paragraph
(d) of this clause. At a minimum, every request shall describe the proposed
change(s) and provide the rationale for the requested change(s)

(b) TYPES OF MODIFICATIONS.

      (1) Additional items/additional SINs. When requesting additions, the
following information must be submitted:

            (i) Information requested in paragraphs (1) and (2) of the
Commercial Sales Practice Format to add SINs.

            (ii) Discount information for the new items(s) or new SIN(s).
Specifically, submit the information requested in paragraphs 3 through 5 of the
Commercial Sales Practice Format. If this information is the same as the initial
award, a statement to that effect may be submitted instead.

NOTE: THE FORMAT FOR THE COMMERCIAL SALES PRACTICES IS FOUND IN ITEM G.1.B.

            (iii) Information about the new item(s) or new SIN(s) as described
in 552.212-70, Preparation of Offer (Multiple Award Schedule) is required.

NOTE: PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE) PARAGRAPH IS ITEM G.1.C.

            (iv) Delivery time(s) for the new item(s) or the item(s) under the
new SIN(s) must be submitted in accordance with 552.211-78, Commercial Delivery
Schedule (Multiple Award Schedules)

NOTE: THE COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULES) REFERENCE IS
F-FSS-265, APRIL 1995 FOR THIS CONTRACT.
<PAGE>   83
Modification                                                  Page 8 of 53 Pages

            (v) Production point(s) for the new item(s) or the item(s) under the
new SIN(s) must be submitted if required by 52.215-6, Place of Performance.

NOTE: THE PLACE OF PERFORMANCE REFERENCE IS 52.215-20 FOR THIS CONTRACT.

            (vi) Any information requested by 52.212-3(f), Offerors
Representations and Certifications - Commercial Items, that may be necessary to
assure compliance with 552.225-9, Trade
Agreements Act   (1.2)

      (2) Deletions. The Contractors shall provide an explanation for the
deletion. The Government reserves the right to reject any subsequent offer of
the same item or a substantially equal item at a higher price during the same
contract period, if the Contracting Officer finds the higher price to be
unreasonable when compared with the deleted item.

      (3) Price Reduction. The Contractor shall indicate whether the price
reduction falls under the item (i), (ii), or (iii) of subparagraph (c)(1) of
the Price Reductions clause at 552.238-76 (1.14). If the price reduction falls
under item (i), the Contractor shall submit a copy of the dated commercial
pricelist. If the price reduction falls under item (ii) or (iii), the
Contractor shall submit a copy of the applicable pricelist(s), bulletins or
letters or customer agreements which outline the effective date, duration, terms
and conditions of the price reduction.

(c) EFFECTIVE DATES. The effective date of any modification is the date
specified in the modification, except as otherwise provided in the Price
Reductions clause at 552.238-76 (1.14)

(d) ELECTRONIC FILE UPDATES. The Contractor shall update electronic file
submissions to reflect all modifications. Except for price reductions and
corrections, the Contractor shall obtain the Contracting Officer's approval
before transmitting changes. Price reductions and correction may be transmitted
without prior approval. However, the Contracting Officer shall be notified as
set forth in the Price Reductions clause at 552.238-76 (1.14)

(e) AMENDMENTS TO PAPER FEDERAL SUPPLY SCHEDULE PRICELISTS. The Contractor shall
distribute a supplemental paper Federal Supply Schedule Pricelist reflecting
accepted changes within 15 days after the effective date of the modification. At
a minimum, distribution shall be made to these ordering activities that
previously received the basic document. In addition, two copies of the
supplemental pricelist shall be submitted to the contracting officer, and two
copies shall be submitted to the FSS Schedule Information Center.
<PAGE>   84
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G.1.B COMMERCIAL SALES PRACTICES FORMAT (CSP-1)

Name of Offeror: TeleCommunication Systems, Inc.
                 ------------------------------------------------------------
SIN(s): 132-51
        ---------------------------------------------------------------------

NOTE: Please refer to clause 552.212-70, PREPARATION OF OFFER (MULTIPLE AWARD
SCHEDULE), for additional information concerning your offer. Provide the
following information for each SIN (or group of SINs or SubSIN) for which
information is the same.

(1) Provide the dollar value of sales to the general public at or based on an
established catalog or market price during the previous 12 month period or the
Offeror's last fiscal year. $ 27,824,002. State beginning and ending of the 12
month period. Beginning 1/1/97 Ending 12/31/97. In the event that a dollar value
is not an appropriate measure of the sales, provide and describe your own
measure of the sales of the item(s).

(2) Show your total projected annual sales to the Government under this contract
for the contract term, excluding options, for each SIN offered. If you currently
hold a Federal Supply Schedule contract for the SIN the total projected annual
sales should be based on your most recent 12 months of sales under that
contract. SIN 132-51 $ 400,000; SIN______________ $__________________,
SIN___________________ $_____________________

(3) Based on your written discounting policies (standard commercial sales
practices in the event you do not have written discounting policies), are the
discounts and any concessions which you offer the Government equal to or better
than your best price (discount and concessions in any combination) offered to
any customer acquiring the same items regardless of quantity or terms and
conditions? YES X NO ______. (See definition of "concession" and "discount" in
552.212-70.)

(4) (a) Based on your written discounting policies (standard commercial sales
practices in the event you do not have written discounting policies), provide
information as requested for each SIN (or group of SINs for which the
information is the same) in accordance with the instructions at Table 515-1
which is provided in this solicitation for your convenience. The information
should be provided in the chart below or in an equivalent format developed by
the Offeror. Rows should be added to accommodate as many customers as required.
See definition of "concession" and "discount" in 552.212-70.
<PAGE>   85
Modification                                                 Page 10 of 53 Pages

<TABLE>
<CAPTION>
Column 1     Column 2      Column 3          Column 4       Column 5
<S>          <C>        <C>                 <C>            <C>
Customer     Discount   Quantity/Volume      FOB Term      Concessions
Federal         0            None           Destination       None
</TABLE>

      (b) Do any deviations from your written policies or standard commercial
sales practices disclosed in the above chart ever result in better discounts
(lower prices) or concessions than indicated? YES NO X If YES, explain
deviations in accordance with the instructions at Table 515-1 which is provided
in this solicitation for your convenience

(5) If you are a dealer/reseller without significant sales to the general
public, you should provide manufacturers' information required by paragraphs (1)
through (4) above for each item/SIN offered, if the manufacturer's sales under
any resulting contract are expected to exceed $500,000. You must also obtain
written authorization from the manufacturer(s) for Government access, at any
time before award or before agreeing to a modification, to the manufacturer's
sales records for the purpose of verifying the information submitted by the
manufacturer. The information is required in order to enable the Government to
make a determination that the offered price is fair and reasonable. To expedite
the review and processing of offers, you should advise the manufacturer(s) of
this requirement. The Contracting Officer may require the information be
submitted on electronic media with commercially available spreadsheet(s). The
information may be provided by the manufacturer directly to the Government. If
the manufacturer's item(s) is being offered by multiple dealers/resellers, only
one copy of the requested information should be submitted to the Government. In
addition, you must submit the following information along with a listing of
contact information regarding each of the manufacturers whose products and/or
services are included in the offer (include the manufacturer's name, address,
the manufacturer's contact point, telephone number, and FAX number) for each
model offered by SIN:

      (a)  Manufacturer's Name
      (b)  Manufacturer's Part Number
      (c)  Dealer's/Reseller's Part Number
      (d)  Product Description
      (e)  Manufacturer's List Price
      (f)  Dealer's/Reseller's percentage discount from List Price or net prices
<PAGE>   86
Modification                                                 Page 11 of 53 Pages

                                   TABLE 515-1
               INSTRUCTIONS FOR COMMERCIAL SALES PRACTICES FORMAT

If you responded "YES" to question (3), on the COMMERCIAL SALES PRACTICES
FORMAT, complete the chart in question (4) (a) for the customer(s) who receive
your best discount. If you responded "NO" complete the chart in question (4) (a)
showing your written policies or standard sales practices for all customers or
customer categories to whom you sell at a price (discounts and concessions in
combination) that is equal to or better than the price(s) offered to the
Government under this solicitation or with which the Offeror has a current
agreement to sell at a discount which equals or exceeds the discount(s) offered
under this solicitation. Such agreement shall be in effect on the date the offer
is submitted or contain an effective date during the proposed multiple award
schedule contract period. If your offer is lower than your price to other
customers or customer categories you will be aligned with the customer or
category of customer that receives your best price for purposes of the Price
Reductions clause at 552.238-76. The Government expects you to provide
information required by the format in accordance with these instructions that
is, to the best of your knowledge and belief, current, accurate, and complete
as of 14 calendar days prior to its submission. You must also disclose any
changes in your pricelist(s), discounts and/or discounting policies which occur
after the offer is submitted, but before the close of negotiations. If your
discount practices vary by model or product line, the discount information
should be by model or product line as appropriate. You may limit the number of
models or product lines reported to those which exceed 75% of actual historical
Government sales (commercial sales may be substituted if Government sales are
unavailable) value of the special item number (SIN).

COLUMN 1-IDENTIFY THE APPLICABLE CUSTOMER OR CATEGORY OF CUSTOMER. A "customer"
is any entity, except the Federal Government, which acquires supplies or
services from the Offeror. The term customer includes, but is not limited to
original equipment manufacturers, value added resellers, state and local
governments, distributors, educational institutions (an elementary, junior high,
or degree granting school which maintains a regular faculty and established
curriculum and an organized body of students), dealers, national accounts, and
end users. In any instance where the Offeror is asked to disclose information
for a customer, the Offeror may disclose information by category of customer if
the Offeror's discount policies or practices are the same for all customers in
the category. (Use a separate line for each customer or category of customer.)
<PAGE>   87
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COLUMN 2-IDENTIFY THE DISCOUNT. The term "discount" is as defined in
solicitation clause 552.212-70 Preparation of Offer (Multiple Award Schedule).
Indicate the best discount (based on your written discounting policies or
standard commercial discounting practices if you do not have written discounting
policies) at which you sell to the customer or category of customer identified
in column 1, without regard to quantity; terms and conditions of the agreements
under which the discounts are given; and whether the agreements are written or
oral. Net prices or discounts off of other pricelists should be expressed as
percentage discounts from the pricelist which is the basis for your offer. If
the discount disclosed is a combination of various discounts (prompt payment,
quantity, etc.), the percentage should be broken out for each type of discount.
If the pricelists which are the basis of the discounts given to the customers
identified in the chart are different than the pricelist submitted upon which
your offer is based, identify the type or title and date of each pricelist. The
Contracting Officer may require submission of these pricelists. To expedite
evaluation, Offerors may provide these pricelists at the time of submission.

COLUMN 3-IDENTIFY THE QUANTITY OR VOLUME OF SALES. Insert the minimum quantity
or sales volume which the identified customer or category of customer must
either purchase/order, per order or within a specified period, to earn the
discount. When purchases/orders must be placed within a specified period to earn
a discount indicate the time period.

COLUMN 4-INDICATE THE FOB DELIVERY TERM FOR EACH IDENTIFIED CUSTOMER. (See FAR
47.3 for an explanation of FOB delivery terms.)

COLUMN 5-INDICATE CONCESSIONS REGARDLESS OF QUANTITY GRANTED TO THE IDENTIFIED
CUSTOMER OR CATEGORY OF CUSTOMER. Concessions are defined in solicitation clause
552.212-70 Preparation of Offers (Multiple Award Schedule). If the space
provided is inadequate, the disclosure should be made on a separate sheet by
reference.

If you respond "YES" to question 4 (b) in the Commercial Sales Practices Format,
provide an explanation of the circumstances under which you deviate from your
written policies or standard commercial sales practices disclosed in the chart
on the Commercial Sales Practices Format and explain how often they occur. Your
explanation should include a discussion of situations that lead to deviations
from standard practice, an explanation of how often they occur, and the controls
you employ to assure the integrity of your pricing. Examples of typical
<PAGE>   88
Modification                                                 Page 13 of 53 Pages

deviations may include, but are not limited to, one time goodwill discounts to
charity organizations or to compensate an otherwise disgruntled customer; a
limited sale of obsolete or damaged goods; the sale of sample goods to a new
customer; or the sales of prototype goods for testing purposes.

If deviations from your written policies or standard commercial sales practices
disclosed in the chart on the Commercial Sales Practices Format are so
significant and/or frequent that the Contracting Officer cannot establish
whether the price(s) offered is fair and reasonable, then you may be asked to
provide additional information. The Contracting Officer may ask for information
to demonstrate that you have made substantial sales of the item(s) in the
commercial market consistent with the information reflected on the chart on the
Commercial Sales Practices Format, a description of the conditions surrounding
those sales deviations, or other information that may be necessary in order for
the Contracting Officer to determine whether your offered price(s) is fair and
reasonable. In cases where additional information is requested, the Contracting
Officer will target the request in order to limit the submission of data to that
needed to establish the reasonableness of the offered price.

G.1.C    PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE) (GSAR 552.212-70) (AUG
         1997)

(a) Definitions. CONCESSION, as used in this solicitation, means a benefit,
enhancement or privilege (other than a discount), which either reduces the
overall cost of a customer's acquisition or encourages a customer to consummate
a purchase. Concessions include, but are not limited to, freight allowance,
extended warranty, extended price guarantees, free installation and bonus goods.

      DISCOUNT, as used in this solicitation, means a reduction to catalog
prices (published or unpublished). Discounts include, but are not limited to,
rebates, quantity discounts, purchase option credits, and any other terms or
conditions other than concessions which reduce the amount of money a customer
ultimately pays for goods or services ordered or received. Any net price lower
than the list price is considered a "discount" by the percentage difference from
the list price to the net price.

(b) For each Special Item Number (SIN) included in an offer, the Offeror shall
provide the information outlined in paragraph (c). Offerors may provide a single
response covering more than one SIN, if the information disclosed is the same
for all products
<PAGE>   89
Modification                                                 Page 14 of 53 Pages

under each SIN. If discounts and concessions vary by model or product line,
Offerors shall ensure that information is clearly annotated as to item or items
referenced.

(c) Provide information described below for each SIN:

      (1) Two copies of the Offeror's current published (dated or otherwise
identified) commercial descriptive catalogs and/or pricelists from which
discounts are offered. If special catalogs or pricelists are printed for the
purpose of this offer, such descriptive catalogs or pricelists shall include a
statement indicating the special catalogs or pricelists represent a verbatim
extract from the Offeror's commercial catalogs and/or pricelists and identify
the descriptive catalogs and/or pricelists from which the information has been
extracted.

      (2) Next to each offered item in the commercial catalog and/or pricelist,
the Offeror shall write the special item number (SIN) under which the item is
being offered. Unless a special catalog or pricelist is submitted, all other
items shall be marked "excluded," lined out, and initialed by the Offeror.

      (3) The discount(s) offered under this solicitation. The description of
discounts offered shall include all discounts, such as prompt payment discounts,
quantity/dollar volume discounts (indicate whether models/products can be
combined within the SIN or whether SINs can be combined to earn discounts),
blanket purchase agreement discounts, or purchase option credits. If the terms
of sale appearing in the commercial catalogs or pricelist on which an offer is
based are in conflict with the terms of this solicitation, the latter shall
govern.

      (4) A description of concessions offered under this solicitation which are
not granted to other customers. Such concessions may include, but are not
limited to, an extended warranty, a return/exchange goods policy, or enhanced or
additional services.

      (5) If the Offeror is a dealer/reseller or the Offeror will use dealers to
perform any aspect of contract awarded under this solicitation, describe the
functions, if any, that the dealer/reseller will perform.
<PAGE>   90
Modification                                                 Page 15 of 53 Pages

G.1.D    REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR
         PRICING DATA-MODIFICATIONS (FAR 52.215-21) (OCT 1997) (ALTERNATE IV-OCT
         1997) (VARIATION I-AUG 1997)

(a) Submission of cost or pricing data is not required.

(b) Provide information described below.

      (1) Information required by the clause at 552.243-72, Modifications
(Multiple Award Schedule);

      (2) Any additional supporting information requested by the Contracting
Officer. The Contracting Officer may require additional supporting information,
but only to the extent necessary to determine whether the price(s) offered is
fair and reasonable.

      (3) By submitting a request for modification, the Contractor grants the
Contracting Officer or an authorized representative the right to examine, at any
time before agreeing to a modification, books, records, documents, papers, and
other directly pertinent records to verify the pricing, sales and other data
related to the supplies or services proposed in order to determine the
reasonableness of price(s). Access does not extend to Contractor's cost or
profit information or other data relevant solely to the Contractor's
determination of the prices to be offered in the catalog or marketplace.

6.    DELETE SECTION G.3 CONTRACTOR'S REPORT OF SALES IN ITS ENTIRETY AND
      REPLACE WITH THE FOLLOWING:

G.3   CONTRACTOR'S REPORT OF SALES (GSAR 552.239-72) (FEB 1998) (FCI
      DEVIATION-DEC 1997)

(a) The Contractor must report the quarterly dollar value (in U.S. dollars and
rounded to the nearest whole dollar) of sales under the contract by calendar
quarter (i.e., January-March, April-June, July-September, and October-December)
The dollar value of a sale is the price paid by the schedule user for products
and services on a schedule contract delivery order, as recorded by the
Contractor. The reported contract sales value must include the Industrial
Funding Fee (see Clause 552.238-77).
<PAGE>   91
Modification                                                 Page 16 of 53 Pages

(b) The Contractor must report the quarterly dollar value of sales on electronic
GSA Form 72A, Contractor's Report of Sales, to the FSS Vendor. Support Center
(VSC) Website at Internet, http://VSC.gsa.gov. Sales shall be reported
separately for each National Stock Number (NSN), Special Item Number (SIN), or
subitem. If no sales occur, the Contractor shall show zero on the report for
each separate National Stock Number (NSN), Special Item Number (SIN), or
subitem.

(c) The Contractor must register with the FSS Vendor Support Center (VSC) before
using the automated reporting system. To register, the Contractor (or his
authorized representative) must call the VSC at (703) 305-6235 and provide the
necessary information regarding the company, contact name(s), and telephone
number(s). The VSC will then issue a 72A specific password and provide other
information needed to access the reporting system. Instructions for electronic
reporting are available at the VSC Website or by calling the above phone number.

(d) The Contractor must convert the total value of any sales made in foreign
currency to U.S. dollars using the "Treasury Reporting Rates of Exchange,"
issued by the U.S. Department of Treasury, Financial Management Service. The
contractor must use the issue of the Treasury report in effect on the last day
of the reporting quarter. The report is available from:

      Department of the Treasury
      Financial Management Service
      International Funds Branch
      3700 East-West Highway
      PGCII, Room 5A19
      Hyattsville,  MD  20782
      Telephone: (202-874-7994)
      Internet: http://www.ustreas.gov/treasury/bureaus/finman/intn.html

(e) The report is due 30 days following the completion of the reporting period.
The Contractor must provide a close-out report within 120 days after the
expiration date of the contract. This close-out report must cover all sales not
shown in the final quarterly report and reconcile all errors and credits. If all
contract sales are reported and all errors and credits on the final quarterly
report are reconciled, then the Contractor shall show zero sales in the
close-out report.

(f) The Government reserves the right to inspect without further notice, such
records of the Contractor as pertain to sales under this contract. Willful
failure or refusal to submit the required
<PAGE>   92
Modification                                                 Page 17 of 53 Pages

reports, or falsification thereof, constitutes sufficient cause for terminating
the contract for cause under the termination provisions of this contract.

7.    DELETE SECTION H.1 OPTION TO EXTEND IN ITS ENTIRETY AND REPLACE WITH THE
      FOLLOWING:

H.1.A OPTION TO EXTEND THE TERM OF THE CONTRACT (I-FSS-164-A) (AUG 1995)

The Government may require continued performance of this contract for an
additional 5 year period. The option clause may not be exercised more than one
time. When the option to extend the term of this contract is exercised the
following conditions are applicable:

(a) The Contracting Officer may exercise the option by providing a written
notice to the Contractor ten (10) months before expiration of the contract.

(b) When the Government exercises its option to extend the term of this
contract, prices in effect at the time the option is exercised will remain in
effect during the option period, unless an adjustment is made in accordance with
another contract clause (e.g., Economic Price Adjustment Clause or Price
Reductions Clause).

H.1.B NOTICE REGARDING OPTION(S) (GSAR 552.217-71) (NOV 1992)

The General Services Administration (GSA) has included an option to extend the
term of the contract in order to demonstrate the value it places on quality
performance by providing a mechanism for continuing a contractual relationship
with a successful Offeror that performs at a level which meets or exceeds GSA's
quality performance expectations as communicated to the Contractor, in writing,
by the Contracting Officer or designated representative. When deciding whether
to exercise the option, the Contracting Officer will consider the quality of the
Contractor's past performance under this contract in accordance with 48 CFR
517.207.
<PAGE>   93
Modification                                                 Page 18 of 53 Pages

8.    DELETE SECTION H.9 YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS IN ITS
      ENTIRETY AND REPLACE WITH THE FOLLOWING:

H.9   YEAR 2000 WARRANTY COMMERCIAL SUPPLY ITEMS (I-FSS-550-A) (AUG 1997)

As used in this clause, "Year 2000 compliant" means information technology that
accurately processes date/time data (including, but not limited to, calculating,
comparing, and sequencing) from, into, and between the twentieth and
twenty-first centuries, and the years 1999 and 2000 and leap year calculations.
Furthermore, Year 2000 compliant information technology, when used in
combination with other information technology, shall accurately process
date/time if the other information technology properly exchanges date/time data
with it.

(a) All currently awarded products that are not Year 2000 compliant must be
deleted from this contract no later than December 31, 1999.

(b) Any contract modifications, adding new items under clause 552.243-72,
Modifications (Multiple Award Schedule), must meet the warranty requirement in
paragraph c, below.

(c) The Contractor warrants that each hardware, software, and firmware product
delivered under this contract shall be able to accurately process date data
(including, but not limited to, calculating, comparing, and sequencing) from,
into, and between the twentieth and twenty-first centuries, including leap year
calculations, when used in accordance with the product documentation provided by
the Contractor, provided that all listed or unlisted products (e.g. hardware,
software, firmware) used in combination with such listed product properly
exchange date data with it. If the contract requires that specific listed
products must perform as a system in accordance with the foregoing warranty,
then that warranty shall apply to those listed products as a system. The
duration of this warranty and the remedies available to the Government for
breach of this warranty shall be as defined in, and subject to, the terms and
limitations of the Contractor's standard commercial warranty or warranties
contained in this contract, provided that notwithstanding any provision to the
contrary in such commercial warranty or warranties, the remedies available to
the Government under this warranty shall include repair or replacement of any
listed product whose non-compliance is discovered and made known to the
Contractor in writing within ninety (90) days after acceptance. Nothing in this
warranty shall be construed to limit
<PAGE>   94
Modification                                                 Page 19 of 53 Pages

any rights or remedies the Government may otherwise have under this contract
with respect to defects other than Year 2000 performance.

9.    DELETE SECTION I.4 EXAMINATION OF RECORDS BY GSA IN ITS ENTIRETY AND
      REPLACE WITH THE FOLLOWING:

I.4   EXAMINATION OF RECORDS BY GSA (MULTIPLE AWARD SCHEDULE) (GSAR 552.215-71)
      (AUG 1997)

The Contractor agrees that the Administrator of General Services or any duly
authorized representative shall have access to and the right to examine any
books, documents, papers and records of the Contractor involving transactions
related to this contract for overbillings, billing errors, compliance with the
Price Reductions clause and compliance with the Industrial Funding Fee clause of
this contract. This authority shall expire 3 years after final payment. The
basic contract and each option shall be treated as separate contracts for
purposes of applying this clause.

10.   DELETE SECTION I.6 PAYMENTS BY ELECTRONIC FUNDS TRANSFER IN ITS ENTIRETY
      AND REPLACE WITH THE FOLLOWING:

I.6   INVOICE PAYMENTS (GSAR 552.232-70) (MAR 1998)

(a) The due date for making invoice payments by the designated payment office
is:

      (1) For orders placed electronically by the General Services
Administration (GSA) Federal Supply Service (FSS), and to be paid by GSA
through electronic funds transfer (EFT), the later of the following two events:

            (i) The lOth day after the designated billing office receives a
proper invoice from the contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt, the
invoice payment payment due date shall be the 10th day after the date of the
Contractor's invoice; provided the Contractor submitted a proper invoice and no
disagreements exists over quantity, quality, or Contractor compliance with
contract requirements.

            (ii) The 10th day after Government acceptance of supplies delivered
or services performed by the Contractor.
<PAGE>   95
Modification                                                 Page 20 of 53 Pages

      (2) For all other orders, the later of the following two events:

            (i) The 30th day after the designated billing office receives a
proper invoice from the Contractor. If the designated billing office fails to
annotate the invoice with the date of receipt at the time of receipt, the
invoice payment due date shall be the 30~ day after the date of the Contractor's
invoice; provided the Contractor submitted a proper invoice and no disagreement
exists over quantity, quality, or Contractor compliance with contract
requirements.

            (ii) The 30th day after Government acceptance of supplies delivered
or services performed by the Contractor.

      (3) On a final invoice, if the payment amount is subject to contract
settlement actions, acceptance occurs on the effective date of the contract
settlement.

(b) The General Services Administration will issue payment on the due date in
(a) (1) above if the Contractor complies with full cycle electronic commerce.
Full cycle electronic commerce includes all the following elements:

      (1) The Contractor must receive and fulfill electronic data interchange
(EDI) purchase orders (transaction set 850)

      (2) The Contractor must generate and submit to the Government valid EDI
invoices (transaction set 810)

      (3) The Contractor's financial institution must receive and process, on
behalf of the Contractor, EFT payments through the Automated Clearing House
(ACH) system.

      (4) The EDI transaction sets in (b) (1) through (b) (3) above must adhere
to implementation conventions provided by GSA.

(c) If any of the conditions in (b) above do not occur, the 10 day payment due
dates in (a) (1) become 30 day payment due dates.

(d) All other provisions of the Prompt Payment Act (31 U.S.C. 3901 et seq.) and
Office of Management and Budget (0MB) Circular A-125, Prompt Payment, apply.
<PAGE>   96
Modification                                                 Page 21 of 53 Pages

11.   DELETE SECTION I.7 PAYMENT BY CREDIT CARD IN ITS ENTIRETY AND REPLACE WITH
      THE FOLLOWING:

I.7   PAYMENT BY PURCHASE CARD (GSAR 552.232-80) (DEC 1989) (VARIATION I) (MAR
      1998)

(a) Definitions: "Government purchase card" means the uniquely numbered credit
card issued to named individual Government employees or entities to pay for
official Government purchases. "Oral delivery order" means an order placed
orally either in person or by telephone, which is paid for by Government
purchase card.

(b) Contractors are required to accept the Government purchase card for payments
equal to or less than the micro-purchase threshold for oral or written delivery
orders. This is not intended to limit the acceptance of the Government purchase
card under this contract for dollar amounts that exceed this threshold if
otherwise agreeable between the Contractor and the customer; therefore,
Contractors are encouraged to accept payment by the Government purchase card for
all orders. If the Contractor is unwilling to accept payment by the Government
purchase card for a delivery order, the Contractor must so advise the ordering
agency within 24 hours of receipt of order.

(c) The Contractor shall not process a transaction for payment through the
credit card clearinghouse until the purchased supplies have been shipped or
services performed. Unless the cardholder requests correction or replacement of
a defective or faulty item in accordance with other contract requirements, the
Contractor shall immediately credit a cardholder's account for items returned as
defective or faulty.

12.   DELETE SECTION I.13 INVOICE REQUIREMENTS IN ITS ENTIRETY AND REPLACE WITH
      THE FOLLOWING:

I.13  INVOICE

The Contractor shall submit an original invoice and three copies (or electronic
invoice, if authorized,) to the address designated in the delivery or task order
to receive invoices. An invoice must include-

      (1) Name and address of the Contractor;
      (2) Invoice date;
      (3) Contract number, contract line item number and, if applicable, the
      order number;
<PAGE>   97
Modification                                                 Page 22 of 53 Pages

      (4) Description, quantity, unit of measure, unit price and extended price
      of the items delivered;
      (5) shipping number and date of shipment including the bill of lading
      number and weight of shipment if shipped on Government bill of lading;
      (6) Terms of any prompt payment discount offered;
      (7) Name and address of official to whom payment is to be sent; and
      (8) Name, title, and phone number of person to be notified in event of
      defective invoice.

Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C.
3903) and Office of Management and Budget (0MB) Circular A-125, Prompt Payment.
Contractors are encouraged to assign an identification number to each invoice.

13.   DELETE SECTION 1.25 INDUSTRIAL FUNDING FEE IN ITS ENTIRETY AND REPLACE
      WITH THE FOLLOWING:

1.25  INDUSTRIAL FUNDING FEE (GSAR 552.238-77) (FEB 1998) (FCI DEVIATION--DEC
      1997)

(a) The Contractor must pay the Federal Supply Service, GSA, an Industrial
Funding Fee (1FF). The Contractor must remit the 1FF in U.S. dollars within 30
days after the end of each quarterly reporting period as established in clause
552.238-72, Contractor's Report of Sales. The 1FF equals one percent (1%) of the
total quarterly sales reported. The 1FF reimburses the GSA Federal Supply
Service for the costs of operating the Federal Supply Schedules Program.
Offerors should include the 1FF in the prices submitted with their offer. The
fee is included in the award price(s) and reflected in the total amount charged
to ordering activities; consequently, GSA's costs are recouped from these
ordering activities.

(b) The Contractor must remit any monies due as a result of the close-out report
required by Clause 552.238-72 at the time the close-out report is submitted to
GSA.

(c) The 1FF amount due must be paid by check, or electronic funds transfer
through the Automated Clearing House (ACH), to the "General Services
Administration." If the payment involves multiple special item numbers or
contracts, the Contractor may consolidate the IFFs into one payment. To ensure
that the payment is credited properly, the Contractor shall identify the check
or electronic transmission as an "Industrial Funding Fee" and include the
following information: contract number(s);
<PAGE>   98
Modification                                                 Page 23 of 53 Pages

report amount(s); and report period(s). If the Contractor makes payment by
check, provide this information on either the check, check stub, or other
remittance material.

      (1) If the payment is made by check, it shall be forwarded to the
following address:

      General Services Administration
      Accounts Receivable Branch (6BCR)
      P.O. Box 70500
      Chicago, IL 60673-0500

      (2) If the IFF payment is made by electronic funds transfer through ACH,
the Contractor must call GSA, Financial Information Control Branch, Receivables,
Collections and Sales Section (6BCDR) at (contracting officer to insert phone
number) to make arrangements.

(d) If the full amount of the IFF is not paid within 30 calendar days after the
end of the applicable reporting period, it shall constitute a contract debt to
the United States Government under the terms of FAR 32.6. The Government may
exercise all rights under the Debt Collection Act of 1982, including withholding
or setting off payments and interest on the debt (see FAR 52.232-17, Interest).

(e) Failure to submit sales reports, falsification of sales reports, and/or
failure to pay the IFF in a timely manner may result in termination or
cancellation of this contract. Willful failure or refusal to furnish the
required reports, falsification of sales reports, or failure to make timely
payment of the IFF constitutes sufficient cause for terminating the contract for
cause under the termination provisions of this contract.

14.   ADD TO THE END OF SECTION I - CONTRACT CLAUSES THE FOLLOWING CLAUSES:

I.28  PLACEMENT OF ORDERS (GSAR 552.216-73) (JUN 1994) (ALTERNATE II-JUN 1994)
      (DEVIATION)

(a) Delivery orders under this contract may be placed by entities authorized to
do so by the Scope of Contract clause (see C.2).

(b) Orders may be placed through Electronic Data Interchange (EDI) or mailed in
paper form. EDI orders shall be placed using the American National Standards
Institute (ANSI) X12 Standard for Electronic Data Interchange (EDI) format.
<PAGE>   99
Modification                                                 Page 24 of 53 Pages

(c) If the Contractor agrees, GSA's Federal Supply Service (FSS) will place all
orders by EDI using computer-to-computer EDI. If computer-to-computer EDI is not
possible, FSS will use an alternative EDI method allowing the Contractor to
receive orders by facsimile transmission. Subject to the Contractor's agreement,
other agencies may place orders by EDI.

(d) When computer-to-computer EDI procedures will be used to place orders, the
Contractor shall enter into one or more Trading Partner Agreements (TPA) with
each Federal agency placing orders electronically in order to ensure mutual
understanding by the parties of certain electronic transaction conventions and
to recognize the rights and responsibilities of the parties as they apply to
this method of placing orders. The TPA must identify, among other things, the
third party provider(s) through which electronic orders are placed, the
transaction sets used, security procedures, and guidelines for implementation.
Federal agencies may obtain a sample format to customize as needed from the
office specified in (g) below.

(e) The Contractor shall be responsible for providing its own hardware and
software necessary to transmit and receive data electronically. Additionally,
each party to the TPA shall be responsible for the costs associated with its use
of third party provider services.

(f) Nothing in the TPA will invalidate any part of this contract between the
Contractor and the General Services Administration. All terms and conditions of
this contract that otherwise would be applicable to a mailed order shall apply
to the electronic order.

(g) The basic content and format of the TPA will be provided by:

         General Services Administration
         Systems Inventory and Operations Management Center (FCS)
         Washington, DC 20406

         Telephone:    (703) 305-7741
         FAX:          (703) 305-7720

I.29  CONTRACT SALES CRITERIA (I-FSS-639) (MAR 1998)

A contract will not be awarded unless anticipated sales are expected to exceed
$25,000 for a 1-year period. Resultant contracts will be canceled in accordance
with the cancellation clause unless reported sales are $25,000 for each 12 month
period from date of award and every 12 month period thereafter.
<PAGE>   100
Modification                                                 Page 25 of 53 Pages

15.   DELETE SECTION K.16 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION
      AND REPLACE WITH THE FOLLOWING:

K.16  RESERVED

16.   DELETE SECTION L.10 SIC CODES AND SMALL BUSINESS SIZE STANDARD IN ITS
      ENTIRETY AND REPLACE WITH THE FOLLOWING:

L.10  STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODE AND SMALL BUSINESS SIZE
      STANDARD (BLOCK 10, STANDARD FORM 1449)

(a) The standard industrial classification (SIC) codes for this acquisition and
the small business size standards per FAR 19.102, are as follows:

<TABLE>
<CAPTION>
      SIC          DESCRIPTION                                                    SIZE
---------------------------------------------------------------------------------------
<S>                <C>                                                           <C>
DIVISION D     -   MANUFACTURING
--------------------------------

MAJOR GROUP 27 -   PRINTING, PUBLISHING, AND ALLIED INDUSTRIES

      2741         MISCELLANEOUS PUBLISHING                                         500

MAJOR GROUP 35 -   INDUSTRIAL AND COMMERCIAL MACHINERY AND
                   COMPUTER EQUIPMENT
      3571         ELECTRONIC COMPUTERS                                           1,000
      3572         COMPUTER STORAGE DEVICES                                       1,000
      3575         COMPUTER TERMINALS                                             1,000
      3577         COMPUTER PERIPHERAL EQUIPMENT, N.E.C.                          1,000

MAJOR GROUP 36 -   ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT AND
                   COMPONENTS
      3643         CURRENT-CARRYING WIRING DEVICES                                  500
      3644         NONCURRENT-CARRYING WIRING DEVICES                               500
      3651         HOUSEHOLD AUDIO AND VIDEO EQUIPMENT                              750
      3661         TELEPHONE AND TELEGRAPH APPARATUS                              1,000
      3663         RADIO AND TELEVISION BROADCASTING AND
                   COMMUNICATIONS EQUIPMENT                                         750
      3669         OTHER COMMUNICATIONS EQUIPMENT, N.E.C.                           750
</TABLE>
<PAGE>   101
Modification                                                 Page 26 of 53 Pages

<TABLE>
<S>                <C>                                                           <C>
DIVISION E     -   TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY
                   SERVICES

MAJOR GROUP 48 -   COMMUNICATIONS
      4812         RADIOTELEPHONE COMMUNICATIONS                                  1,500
      4813         TELEPHONE COMMUNICATIONS, EXCEPT RADIOTELEPHONE                1,500
      4822         TELEGRAPH AND OTHER MESSAGE COMMUNICATIONS                    $  5.0
      4899         COMMUNICATIONS SERVICES, N.E.C.                               $ 11.0

DIVISION F     -   WHOLESALE TRADE

MAJOR GROUP 50 -   DURABLE GOODS
      5045         COMPUTERS AND COMPUTER PERIPHERAL
                   EQUIPMENT AND SOFTWARE                                           500

DIVISION I     -   SERVICES

MAJOR GROUP 73 -   BUSINESS SERVICES
      7359         EQUIPMENT RENTAL AND LEASING, N.E.C.                          $  5.0
      7371         COMPUTER PROGRAMMING SERVICES                                 $ 18.0
      7372         PREPACKAGED SOFTWARE                                          $ 18.0
      7373         COMPUTER INTEGRATED SYSTEMS DESIGN                            $ 18.0
      7374         COMPUTER PROCESSING AND DATA PREPARATION
                   AND PROCESSING SERVICES                                       $ 18.0
      7375         INFORMATION RETRIEVAL SERVICES                                $ 18.0
      7376         COMPUTER FACILITIES MANAGEMENT SERVICES                       $ 18.0
      7377         COMPUTER RENTAL AND LEASING                                   $ 18.0
      7378         COMPUTER MAINTENANCE AND REPAIR                               $ 18.0
      7379         COMPUTER RELATED SERVICES, N.E.C.                             $ 18.0
      7389         BUSINESS SERVICES, N.E.C.                                     $  5.0
</TABLE>

NOTES: SIZE STANDARDS PRECEDED BY A DOLLAR SIGN ($) ARE IN MILLIONS OF DOLLARS.
ALL OTHERS ARE IN NUMBER OF EMPLOYEES UNLESS SPECIFIED OTHERWISE. N.E.C.: NOT
ELSEWHERE CLASSIFIED.

(b) The small business size standard for a concern which submits an offer in its
own name, other than on a construction or service contract, but which proposes
to furnish a product which it did not itself manufacture, is 500 employees.

(c) If the Offeror represents different business sizes than indicated in
paragraph G.1(c) for any proposed SIN, indicate below the SIC code and the
business size.
<PAGE>   102
Modification                                                 Page 27 of 53 Pages

<TABLE>
<CAPTION>
--------------------------------------------------------------------
Special Item Number         Standard Industry          Business Size
(SIN)                       Classification (SIC)
--------------------------------------------------------------------
<S>                         <C>                        <C>
132-3 Leasing of
Equipment
--------------------------------------------------------------------
132-8 Purchase of
Equipment
--------------------------------------------------------------------
132-12 Maintenance of
Equipment, Repair
Service and/or
Repair/Spare Parts
--------------------------------------------------------------------
132-32 Term Software
License
--------------------------------------------------------------------
132-33 Perpetual
Software License
--------------------------------------------------------------------
132-34 Maintenance of
Software
--------------------------------------------------------------------
132-50 Training Courses
--------------------------------------------------------------------
132-51 Professional             4813                      Small
Information Technology
Services
--------------------------------------------------------------------
132-52 Electronic
Commerce Services
--------------------------------------------------------------------
</TABLE>

17.   DELETE FROM ATTACHMENT I THE SECTION ENTITLED INFORMATION FOR ORDERING
      OFFICES AND REPLACE WITH THE FOLLOWING:

                        INFORMATION FOR ORDERING OFFICES

SPECIAL NOTICE TO AGENCIES:

                          SMALL BUSINESS PARTICIPATION

SBA strongly supports the participation of small business concerns in the
Federal Supply Schedules Program. To enhance Small Business Participation SBA
policy allows agencies to include in their procurement base and goals, the
dollar value of orders expected to be placed against the Federal Supply
Schedules, and to report accomplishments against these goals.

For orders exceeding the micropurchase threshold, FAR 8.404 requires agencies to
consider the catalogs/pricelists of at least three schedule contractors or
consider reasonably available
<PAGE>   103
Modification                                     Page 28 of 53 Pages

information by using the GSA Advantage!(TM) on-line shopping service
(www.fss.gsa.gov). The catalogs/pricelists, GSA Advantage!(TM) and the Federal
Supply Service Home Page (www.fss.gsa.gov) contain information on a broad array
of products and services offered by small business concerns.

This information should be used as a tool to assist ordering activities in
meeting or exceeding established small business goals. It should also be used as
a tool to assist in including small, small disadvantaged, and women-owned small
businesses among those considered when selecting pricelists for a best value
determination.

For orders exceeding the micropurchase threshold, customers are to give
preference to small business concerns when two or more items at the same
delivered price will satisfy their requirement.

1.    GEOGRAPHIC SCOPE OF CONTRACT:

**THE MINIMUM ACCEPTABLE GEOGRAPHIC SCOPE OF CONTRACT IS THE 48 CONTIGUOUS
STATES AND THE DISTRICT OF COLUMBIA. IF THE SCOPE INCLUDES ALASKA, HAWAII, OR
THE COMMONWEALTH OF PUERTO RICO, IDENTIFY THESE LOCATIONS. ANY OVERSEAS
LOCATIONS MUST ALSO BE SPECIFICALLY IDENTIFIED. **

2.    CONTRACTOR'S ORDERING ADDRESS AND PAYMENT INFORMATION:

**THE CONTRACTOR SHOULD INSERT THE COMPLETE ADDRESS(ES) FOR ORDERING (SEE
PARAGRAPH G.8) AND PAYMENT (SEE PARAGRAPH G.1O).**

Contractors are required to accept the Government purchase card for payments
equal to or less than the micro-purchase threshold for oral or written delivery
orders. Government purchase cards WILL/WILL NOT be acceptable for payment above
the micro-purchase threshold. In addition, bank account information for wire
transfer payments will be shown on the invoice.

**CHOOSE THE APPROPRIATE LANGUAGE--'WILL" OR "WILL NOT"--IN THE SECOND SENTENCE.
COPY THE FIRST AND THIRD SENTENCE.**

The following telephone number(s) can be used by ordering agencies to obtain
technical and/or ordering assistance:

**INSERT THE TELEPHONE NUMBERS.**

<PAGE>   104
Modification                                                 Page 29 of 53 Pages

3.    LIABILITY FOR INJURY OR DAMAGE

The Contractor shall not be liable for any injury to Government personnel or
damage to Government property arising from the use of equipment maintained by
the Contractor, unless such injury or damage is due to the fault or negligence
of the Contractor.

4.    STATISTICAL DATA FOR GOVERNMENT ORDERING OFFICE COMPLETION OF STANDARD
      FORM 279:

      Block 9:  G. Order/Modification Under Federal Schedule
      Block 16:  Data Universal Numbering System (DUNS)
                 Number: _______________
      Block 30:  Type of Contractor -_________________________________

**COPY THE APPLICABLE LETTER AND CORRESPONDING LANGUAGE FROM THE FOLLOWING
LIST**

           A.   Small Disadvantaged Business
           B.   Other Small Business
           C.   Large Business
           G.   Other Nonprofit Organization
           L.   Foreign Contractor

      Block 31:  Woman-Owned Small Business -  _______________________
                                                **YES OR NO**
      Block 36:  Contractor's Taxpayer Identification Number (TIN)
      _______________

4a.   CAGE Code:  _____________

**CAGE CODES ARE ASSIGNED BY THE DEFENSE LOGISTICS AGENCY. IF YOU DO NOT
CURRENTLY HAVE A CAGE CODE, GSA WILL SUPPLY YOU WITH THE FORM NECESSARY TO
OBTAIN A CAGE CODE AT A LATER DATE.**

5.    FOB DESTINATION

6.    DELIVERY SCHEDULE

      a. TIME OF DELIVERY: The Contractor shall deliver to destination within
the number of calendar days after receipt of order (ARO), as set forth below:

<TABLE>
<CAPTION>
      SPECIAL ITEM NUMBER            DELIVERY TIME (Days ARO)
<S>                                  <C>
          _________                          ______
          _________                          ______
</TABLE>
<PAGE>   105
Modification                                                 Page 30 of 53 Pages

**NOTE: THE TIME OF DELIVERY STATED SHOULD BE IDENTICAL TO THAT SHOWN UNDER
PARAGRAPH B.2, PRODUCTS AND SERVICES OFFERED/SCHEDULE OF ITEMS. IF EXPEDITED
DELIVERY AND/OR OVERNIGHT AND 2-DAY DELIVERY ARE OFFERED UNDER PARAGRAPH C.12,
COMMERCIAL DELIVERY SCHEDULE (MULTIPLE AWARD SCHEDULE), PROVIDE INFORMATION IN
THIS SECTION OF THE PRICELIST.**

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

      b. URGENT REQUIREMENTS: When the Federal Supply Schedule contract delivery
period does not meet the bona fide urgent delivery requirements of an ordering
agency, agencies are encouraged, if time permits, to contact the Contractor for
the purpose of obtaining accelerated delivery. The Contractor shall replay to
the inquiry within 3 workdays after receipt. (Telephonic replies shall be
confirmed by the Contractor in writing.) If the Contractor offers an accelerated
delivery time acceptable to the ordering agency, any order(s) placed pursuant to
the agreed upon accelerated delivery time frame shall be delivered within this
shorter delivery time and in accordance with all other terms and conditions of
the contract.

7. DISCOUNTS: Prices shown are NET Prices; Basic Discounts have been deducted.

      a.   Prompt Payment:   ___% - ___ days from receipt of invoice or date of
           acceptance, whichever is later.
      b.   Quantity
      c.   Dollar Volume
      d.   Government Educational Institutions

**IF GOVERNMENT EDUCATIONAL INSTITUTIONS ARE OFFERED SPECIAL DISCOUNTS, WHICH
ARE GREATER THAN THE DISCOUNTS OFFERED TO OTHER GOVERNMENT CUSTOMERS, SPECIFY
SUCH DISCOUNTS. OTHERWISE, STATE THAT GOVERNMENT EDUCATIONAL INSTITUTIONS ARE
OFFERED THE SAME DISCOUNTS AS ALL OTHER GOVERNMENT CUSTOMERS.**

      e.   Other

**PROVIDE COMPLETE INFORMATION TO EXPLAIN ALL OF THE DISCOUNTS OFFERED. COPY THE
LANGUAGE IN PARAGRAPHS "a" THROUGH "f" AS APPLICABLE TO YOUR PROPOSAL.**
<PAGE>   106
Modification                                                 Page 31 of 53 Pages

8.    TRADE AGREEMENTS ACT OF 1979, AS AMENDED:

All items are U.S. made end products, designated country end products, Caribbean
Basin country end products, Canadian end products, or Mexican end products as
defined in the Trade Agreements Act of 1979, as amended.

9.    STATEMENT CONCERNING AVAILABILITY OF EXPORT PACKING:

--------------------------------------------------------------------------------

10.   SMALL REQUIREMENTS: The minimum dollar value of orders to be issued is
$______

**SEE C.9, ORDER LIMITATIONS, PARAGRAPH (a) MINIMUM ORDER.**

11.   MAXIMUM ORDER: (All dollar amounts are exclusive of any discount for
prompt payment.)

      a. Special Item Number 132-3 - Leasing of Equipment

The maximum dollar value per order for all leased equipment will be $500,000.

      b. Special Item Number 132-8 - Purchase of Equipment

The maximum dollar value per order for all purchased equipment will be $500,000.

      c. Special Item Number 132-12 - Repair Parts/Spare Parts

The maximum dollar value per order for all repair parts/spare parts will be
$10,000.

      d. Special Item Number 132-32 - Term Software Licenses

The maximum dollar value per order for all term software licenses will be
$50,000 or $500,000.

      e. Special Item Number 132-33 - Perpetual Software Licenses

The maximum dollar value per order for all perpetual software licenses will be
$50,000 or $500,000.

      f. Special Item Number 132-50 - Training Courses

The maximum dollar value per order for all training courses will be $25,000.
<PAGE>   107
Modification                                                 Page 32 of 53 Pages

      g. Special Item Number 132-51 - Information Technology (IT) professional
Services

The maximum dollar value per order for all IT Professional services will be
$500,000.

      h. Special Item Number 132-52 - Electronic Commerce (EC) Services

The maximum dollar value per order for all EC services will be $500, 000.

Note: Maximum Orders do not apply to Special Item Numbers 132-12 Maintenance and
Repair Service (except for Repair Parts/Spare Parts) or 132-34 Maintenance of
Software.

12.   USE OF FEDERAL SUPPLY SERVICE INFORMATION TECHNOLOGY SCHEDULE CONTRACTS.
      In accordance with FAR 8.404:

(NOTE: Special ordering procedures have been established for Special Item
Numbers (SINs) 132-51 IT Professional Services and 132-52 EC Services; refer to
the terms and conditions for those SINs.]

Orders placed pursuant to a Multiple Award Schedule (MAS), using the procedures
in FAR 8.404, are considered to be issued pursuant to full and open competition.
Therefore, when placing orders under Federal Supply Schedules, ordering offices
need not seek further competition, synopsize the requirement, make a separate
determination of fair and reasonable pricing, or consider small business
set-asides in accordance with subpart 19.5. GSA has already determined the
prices of items under schedule contracts to be fair and reasonable. By placing
an order against a schedule using the procedures outlined below, the ordering
office has concluded that the order represents the best value and results in the
lowest overall cost alternative (considering price, special features,
administrative costs, etc.) to meet the Government' s needs.

      a. ORDERS PLACED AT OR BELOW THE MICRO-PURCHASE THRESHOLD. Ordering
offices can place orders at or below the micro-purchase threshold with any
Federal Supply Schedule Contractor.

      b. ORDERS EXCEEDING THE MICRO-PURCHASE THRESHOLD BUT NOT EXCEEDING THE
MAXIMUM ORDER THRESHOLD. Orders should be placed with the Schedule Contractor
that can provide the supply or service that represents the best value. Before
placing an order, ordering offices should consider reasonably available
information
<PAGE>   108
Modification                                                 Page 33 of 53 Pages

about the supply or service offered under MAS contracts by using the "GSA
Advantage!" on-line shopping service, or by reviewing the catalogs/pricelists of
at least three Schedule Contractors and selecting the delivery and other options
available under the schedule that meets the agency's needs. In selecting the
supply or service representing the best value, the ordering office may
consider--

            (1) Special features of the supply or service that are required in
effective program performance and that are not provided by a comparable supply
or service;

            (2) Trade-in considerations;

            (3) Probable life of the item selected as compared with that of a
comparable item;

            (4) Warranty considerations;

            (5) Maintenance availability;

            (6) Past performance; and

            (7) Environmental and energy efficiency considerations.

     c. ORDERS EXCEEDING THE MAXIMUM ORDER THRESHOLD. Each schedule contract has
an established maximum order threshold. This threshold represents the point
where it is advantageous for the ordering office to seek a price reduction. In
addition to following the procedures in paragraph b, above, and before placing
an order that exceeds the maximum order threshold, ordering offices shall--

            (1) Review additional Schedule Contractors' catalogs/pricelists or
use the "GSA Advantage!" on-line shopping service;

            (2) Based upon the initial evaluation, generally seek price
reductions from the Schedule Contractor(s) appearing to provide the best value
(considering price and other factors); and

            (3) After price reductions have been sought, place the order with
the Schedule Contractor that provides the best value and results in the lowest
overall cost alternative. If further price reductions are not offered, an order
may still be placed, if the ordering office determines that it is appropriate.
<PAGE>   109
Modification                                                 Page 34 of 53 Pages

      NOTE: For orders exceeding the maximum order threshold, the Contractor
may:

            (1) Offer a new lower price for this requirement (the Price
Reductions clause is not applicable to orders placed over the maximum order in
FAR 52.216-19 Order Limitations);

            (2) Offer the lowest price available under the contract; or

            (3) Decline the order (orders must be returned in accordance with
FAR 52.216-19)

      d. BLANKET PURCHASE AGREEMENTS (BPAs). The establishment of Federal Supply
Schedule BPAs is permitted when following the ordering procedures in FAR 8.404.
All schedule contracts contain BPA provisions. Ordering offices may use BPAs to
establish accounts with Contractors to fill recurring requirements. BPAs should
address the frequency of ordering and invoicing, discounts, and delivery
locations and times.

      e. PRICE REDUCTIONS. In addition to the circumstances outlined in
paragraph c, above, there may be instances when ordering offices will find it
advantageous to request a price reduction. For example, when the ordering office
finds a schedule supply or service elsewhere at a lower price or when a BPA is
being established to fill recurring requirements, requesting a price reduction
could be advantageous. The potential volume of orders under these agreements,
regardless of the size of the individual order, may offer the ordering office
the opportunity to secure greater discounts. Schedule Contractors are not
required to pass on to all schedule users a price reduction extended only to an
individual agency for a specific order.

      f. SMALL BUSINESS. For orders exceeding the micro-purchase threshold,
ordering offices should give preference to the items of small business concerns
when two or more items at the same delivered price will satisfy the requirement.

      g. DOCUMENTATION. Orders should be documented, at a minimum, by
identifying the Contractor the item was purchased from, the item purchased, and
the amount paid. If an agency requirement in excess of the micro-purchase
threshold is defined so as to require a particular brand name, product, or
feature of a product peculiar to one manufacturer, thereby precluding
consideration of a product manufactured by another company, the
<PAGE>   110
Modification                                                 Page 35 of 53 Pages

ordering office shall include an explanation in the file as to why the
particular brand name, product, or feature is essential to satisfy the agency's
needs.

13. FEDERAL INFORMATION TECHNOLOGY/TELECOMMUNICATION STANDARDS REQUIREMENTS:
Federal departments and agencies acquiring products from this Schedule must
comply with the provisions of the Federal Standards Program, as appropriate
(reference: NIST Federal Standards Index). Inquiries to determine whether or
not specific products listed herein comply with Federal Information Processing
Standards (FIPS) or Federal Telecommunication Standards (FED-STDS), which are
cited by ordering offices, shall be responded to promptly by the Contractor.

13.1 FEDERAL INFORMATION PROCESSING STANDARDS PUBLICATIONS (FIPS PUBS):
Information Technology products under this Schedule that do not conform to
Federal Information Processing Standards (FIPS) should not be acquired unless a
waiver has been granted in accordance with the applicable "FIPS Publication."
Federal Information Processing Standards Publications (FIPS PUBS) are issued by
the U.S. Department of Commerce, National Institute of Standards and Technology
(NIST), pursuant to National Security Act. Information concerning their
availability and applicability should be obtained from the National Technical
Information Service (NTIS), 5285 Port Royal Road, Springfield, Virginia 22161.
FIPS PUBS include voluntary standards when these are adopted for Federal use.
Individual orders for FIPS PUBS should be referred to the NTIS Sales Office, and
orders for subscription service should be referred to the NTIS Subscription
Officer, both at the above address, or telephone number (703) 487-4650.

13.2 FEDERAL TELECOMMUNICATION STANDARDS (FED-STDS): Telecommunication products
under this Schedule that do not conform to Federal Telecommunication Standards
(FED-STDS) should not be acquired unless a waiver has been granted in accordance
with the applicable "FED-STD." Federal Telecommunication Standards are issued by
the U.S. Department of Commerce, National Institute of Standards and Technology
(NIST), pursuant to National Security Act. Ordering information and information
concerning the availability of FED-STDS should be obtained from the GSA, Federal
Supply Service, Specification Section, 470 East L'Enfant Plaza, Suite 8100, SW,
Washington, DC 20407, telephone number (202)619-8925. Please include a
self-addressed mailing label when requesting information by mail. Information
concerning their applicability can be obtained by writing or calling the U.S.
Department of Commerce, National Institute of Standards and Technology,
Gaithersburg, MD 20899, telephone number (301)975-2833.
<PAGE>   111
Modification                                                 Page 36 of 53 Pages

14. SECURITY REQUIREMENTS. In the event security requirements are necessary, the
ordering activities may incorporate, in their delivery orders, a security clause
in accordance with current laws, regulations, and individual agency policy;
however, the burden of administering the security requirements shall be with the
ordering agency. If any costs are incurred as a result of the inclusion of
security requirements, such costs will not exceed ten percent (10%) or $100,000,
of the total dollar value of the order, whichever is lessor.

15. CONTRACT ADMINISTRATION FOR ORDERING OFFICES: Any ordering office, with
respect to any one or more delivery orders placed by it under this contract, may
exercise the same rights of termination as might the GSA Contracting Officer
under provisions of FAR 52.212-4.. paragraphs (1) Termination for the
Government's convenience, and (in) Termination for Cause (See C.1.)

16. GSA ADVANTAGE!

GSA Advantage! is an on-line, interactive electronic information and ordering
system that provides on-line access to vendors' schedule prices with ordering
information. GSA Advantage! will allow the user to perform various searches
across all contracts including, but not limited to:

      (1) Manufacturer;
      (2) Manufacturer's Part Number; and
      (3) Product categories.

Agencies can browse GSA Advantage! by accessing the Internet World Wide Web
utilizing a browser (ex.: NetScape) The Internet address is
http://www.fss.gsa.gov/.

17. PURCHASE OF INCIDENTAL, NON-SCHEDULE ITEMS

For administrative convenience, open market (non-contract) items may be added to
a Federal Supply Schedule Blanket Purchase Agreement (BPA) or an individual
order, provided that the items are clearly labeled as such on the order, all
applicable regulations have been followed, and price reasonableness has been
determined by the ordering activity for the open market (non-contract) items.

18. CONTRACTOR COMMITMENTS, WARRANTIES AND REPRESENTATIONS

      a. For the purpose of this contract, commitments, warranties and
representations include, in addition to those agreed to for the entire schedule
contract:
<PAGE>   112
Modification                                                 Page 37 of 53 Pages

            (1) Time of delivery/installation quotations for individual orders;

            (2) Technical representations and/or warranties of products
concerning performance, total system performance and/or configuration, physical,
design and/or functional characteristics and capabilities of a
product/equipment/service/software package submitted in response to requirements
which result in orders under this schedule contract.

            (3) Any representations and/or warranties concerning the products
made in any literature, description, drawings and/or specifications furnished by
the Contractor.

      b. The above is not intended to encompass items not currently covered by
the GSA Schedule contract.

19. OVERSEAS ACTIVITIES

The terms and conditions of this contract shall apply to all orders for
installation, maintenance and repair of equipment in areas listed in the
pricelist outside the 48 contiguous states and the District of Columbia, except
as indicated below:

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Upon request of the Contractor, the Government may provide the Contractor with
logistics support, as available, in accordance with all applicable Government
regulations. Such Government support will be provided on a reimbursable basis,
and will only be provided to the Contractor's technical personnel whose services
are exclusively required for the fulfillment of the terms and conditions of this
contract.

20. YEAR 2000 WARRANTY - COMMERCIAL SUPPLY ITEMS (I-FSS-550-A) (AUG 1997)

As used in this clause, "Year 2000 compliant" means information technology that
accurately processes date/time data (including, but not limited to, calculating,
comparing, and sequencing) from, into, and between the twentieth and
twenty-first centuries, and the years 1999 and 2000 and leap year calculations.
Furthermore, Year 2000 compliant information technology, when used in
combination with other information technology, shall accurately process
date/time if the other information technology properly exchanges date/time data
with it.
<PAGE>   113
Modification                                                 Page 38 of 53 Pages

(a) All currently awarded products that are not Year 2000 compliant must be
deleted from this contract no later than December 31, 1999.

(b) Any contract modifications, adding new items under clause 552.243-72,
Modifications (Multiple Award Schedule), must meet the warranty requirement in
paragraph c, below.

(c) The Contractor warrants that each hardware, software, and firmware product
delivered under this contract shall be able to accurately process date data
(including, but not limited to, calculating, comparing, and sequencing) from,
into, and between the twentieth and twenty-first centuries, including leap year
calculations, when used in accordance with the product documentation provided by
the Contractor, provided that all listed or unlisted products (e.g. hardware,
software, firmware) used in combination with such listed product properly
exchange date data with it. If the contract requires that specific listed
products must perform as a system in accordance with the foregoing warranty,
then that warranty shall apply to those listed products as a system. The
duration of this warranty and the remedies available to the Government for
breach of this warranty shall be as defined in, and subject to, the terms and
limitations of the Contractor's standard commercial warranty or warranties
contained in this contract, provided that notwithstanding any provision to the
contrary in such commercial warranty or warranties, the remedies available to
the Government under this warranty shall include repair or replacement of any
listed product whose non-compliance is discovered and made known to the
Contractor in writing within ninety (90) days after acceptance. Nothing in this
warranty shall be construed to limit any rights or remedies the Government may
otherwise have under this contract with respect to defects other than Year 2000
performance.

21. BLANKET PURCHASE AGREEMENTS (BPAs)

Federal Acquisition Regulation (FAR) 13.201(a) defines Blanket Purchase
Agreements (BPAs) as "...a simplified method of filling anticipated repetitive
needs for supplies or services by establishing `charge accounts' with qualified
sources of supply." The use of Blanket Purchase Agreements under the Federal
Supply Schedule Program is authorized in accordance with FAR 13.202(c) (3),
which reads, in part, as follows:

"BPAs may be established with Federal Supply Schedule Contractors, if not
inconsistent with the terms of the applicable schedule contract."
<PAGE>   114
Modification                                                 Page 39 of 53 Pages

Federal Supply Schedule contracts contain BPA provisions to enable schedule
users to maximize their administrative and purchasing savings. This feature
permits schedule users to set up "accounts" with Schedule Contractors to fill
recurring requirements. These accounts establish a period for the BPA and
generally address issues such as the frequency of ordering and invoicing,
authorized callers, discounts, delivery locations and times. Agencies may
qualify for the best quantity/volume discounts available under the contract,
based on the potential volume of business that may be generated through such an
agreement, regardless of the size of the individual orders. In addition,
agencies may be able to secure a discount higher than that available in the
contract based on the aggregate volume of business possible under a BPA.
Finally, Contractors may be open to a progressive type of discounting where the
discount would increase once the sales accumulated under the BPA reach certain
prescribed levels. Use of a BPA may be particularly useful with the new Maximum
Order feature. See the Suggested Format, contained in this Schedule Pricelist,
for customers to consider when using this purchasing tool.

22. CONTRACTOR TEAM ARRANGEMENTS

Federal Supply Schedule Contractors may use "Contractor Team Arrangements" (see
FAR 9.6) to provide solutions when responding to a customer agency requirements.
The policy and procedures outlined in this part will provide more flexibility
and allow innovative acquisition methods when using the Federal Supply
Schedules. See the additional information regarding Contractor Team Arrangements
in this Schedule Pricelist.
<PAGE>   115
Modification                                                 Page 40 of 53 Pages

18.   DELETE FROM ATTACHMENT I THE SECTION ENTITLED TERMS AND CONDITIONS
      APPLICABLE TO INFORMATION TECHNOLOGY PROFESSIONAL SERVICES (SPECIAL ITEM
      132-51) AND ELECTRONIC COMMERCE SERVICES (SPECIAL ITEM 132-52) FOR GENERAL
      PURPOSE INFORMATION TECHNOLOGY SERVICES AND REPLACE WITH THE FOLLOWING:

         TERMS AND CONDITIONS APPLICABLE TO INFORMATION TECHNOLOGY (IT)
             PROFESSIONAL SERVICES (SPECIAL ITEM NUMBER 132-51) AND
         ELECTRONIC COMMERCE (EC) SERVICES (SPECIAL ITEM NUMBER 132-52)

**THE PHRASE, "INFORMATION TECHNOLOGY (IT) PROFESSIONAL SERVICES/ELECTRONIC
COMMERCE (EC) SERVICES" IN THE FOLLOWING PARAGRAPHS MAY NEED TO BE REVISED IN
ORDER TO BE CONSISTENT WITH THE OFFEROR'S PROPOSAL; E.G., IF ONLY IT
PROFESSIONAL SERVICES ARE OFFERED, ALL REFERENCES TO EC SERVICES SHOULD BE
DELETED.**

1.    SCOPE

      a. The prices, terms and conditions stated under Special Item Number
132-51 Information Technology Professional Services and Special Item Number
132-52 Electronic Commerce Services apply exclusively to IT/EC Services within
the scope of this
Information Technology Schedule.

      b. The Contractor shall provide services at the Contractor's facility
and/or at the Government location, as agreed to by the Contractor and the
ordering office.

**NOTE: INCLUDE PARAGRAPH 2, ONLY IF HOURLY RATES FOR IT PROFESSIONAL SERVICES
ARE OFFERED.**

2.    ORDERING PROCEDURES

a. Procedures for IT professional services priced on GSA schedule at hourly
rates.

      (1) FAR 8.402 contemplates that GSA may occasionally find it necessary to
establish special ordering procedures for individual Federal Supply Schedules or
for some Special Item Numbers (SINs) within a Schedule. GSA has established
special ordering procedures for IT professional services (SIN 132-51)
<PAGE>   116
Modification                                                 Page 41 of 53 Pages

that are priced on schedule at hourly rates. These special ordering procedures
which are outlined herein take precedence over the procedures in FAR 8.404.

      (2) The GSA has determined that the rates for IT professional services
contained in this pricelist are fair and reasonable. However, the ordering
office using this contract is responsible for considering the level of effort
and mix of labor proposed to perform a specific task being ordered and for
making a determination that the total firm-fixed price or ceiling price is fair
and reasonable.

      (3) When ordering IT professional services ordering offices shall -

            (i) Prepare a Request for quotation:

                 (A) A performance-based statement of work that outlines, at a
minimum, the work to be performed, location of work, period of performance,
deliverable schedule, applicable standards, acceptance criteria, and any special
requirements (i.e., security clearances, travel, special knowledge, etc.)
should be prepared.

                 (B) A request for quotation should be prepared which includes
the performance-based statement of work and requests the contractors submit
either a firm-fixed price or a ceiling price to provide the services outlined in
the statement of work. A firm-fixed price order shall be requested, unless the
ordering office makes a determination that it is not possible at the time of
placing the order to estimate accurately the extent or duration of the work or
to anticipate cost with any reasonable degree of confidence. When such a
determination is made, a labor hour or time-and-materials proposal may be
requested. The firm-fixed price shall be based on the hourly rates in the
schedule contract and shall consider the mix of labor categories and level of
effort required to perform the services described in the statement of work. The
firm-fixed price of the order should also include any travel costs or other
incidental costs related to performance of the services ordered, unless the
order provides for reimbursement of travel costs at the rates provided in the
Federal Travel or Joint Travel Regulations. A ceiling price must be established
for labor hour and time and material orders.

                 (C) The request for quotation may request the contractors, if
necessary or appropriate, submit a project plan for performing the task and
information on the contractor's experience and/or past performance performing
similar tasks.
<PAGE>   117
Modification                                                 Page 42 of 53 Pages

                 (D) The request for quotation shall notify the contractors what
basis will be used for selecting the contractor to receive the order. The notice
shall include the basis for determining whether the contractors are technically
qualified and provide an explanation regarding the intended use of any
experience and/or past performance information in determining technical
acceptability of responses. If consideration will be limited to schedule
contractors who are small business concerns as permitted by paragraph (ii) (A)
below, the request for quotations shall notify the contractors that will be the
case.

            (ii) Transmit the Request for quotation to Contractors:

                 (A) Based upon an initial evaluation of catalogs and
pricelists, the ordering office should identify the contractors that appear to
offer the best value (considering the scope of services offered, hourly rates
and other factors such as contractors' locations, as appropriate) When buying IT
professional services under SIN 132-51 ONLY, the ordering office, at its
discretion, may limit consideration to those schedule contractors that are small
business concerns. This limitation is not applicable when buying supplies and/or
services under other SINs as well as SIN 132-51. The limitation may only be used
when at least three (3) small businesses that appear to offer services that will
meet the agency's needs are available, if the order is estimated to exceed the
micro-purchase threshold.

                 (B) The request for quotation should be to three (3)
contractors if the proposed order is estimated to exceed the micro-purchase
threshold, but not to exceed the maximum order threshold. For proposed orders
exceeding the maximum order threshold, the request for quotation should be
provided to additional contractors that offer services that will meet the
agency's needs. Ordering offices should strive to minimize the contractors'
costs associated with responding to requests for proposals for specific orders.
Requests should be tailored to the minimum level necessary for adequate
evaluation and selection for order placement.

            (iii) Evaluate proposals and select the contractor to receive the
order:

                 After responses have been evaluated against the factors
identified in the request for quotation, the order should be placed with the
schedule contractor that represents the best value and results in the lowest
overall cost alternative (considering price, special qualifications,
administrative costs, etc.) to meet the Government's needs.
<PAGE>   118
Modification                                                 Page 43 of 53 Pages

      (4) The establishment of Federal Supply Schedule Blanket Purchase
Agreements (BPAs) for recurring services is permitted when the procedures
outlined herein are followed. All BPAs for services must define the services
that may be ordered under the BPA, along with delivery or performance time
frames, billing procedures, etc. The potential volume of orders under BPAs,
regardless of the size of individual orders, may offer the ordering office the
opportunity to secure volume discounts. When establishing BPAs ordering offices
shall -

            (i) Inform contractors in the request for quotation (based on the
agency's requirement) if a single BPA or multiple BPAs will be established, and
indicate the basis that will be used for selecting the contractors to be awarded
the BPAs.

                 (A) SINGLE BPA: Generally, a single BPA should be established
when the ordering office can define the tasks to be ordered under the BPA and
establish a firm-fixed price or ceiling price for individual tasks or services
to be ordered. When this occurs, authorized users may place the order directly
under the established BPA when the need for service arises. The schedule
contractor that represents the best value and results in the lowest overall cost
alternative to meet the agency's needs should be awarded the BPA.

                 (B) MULTIPLE BPAs: When the ordering office determines multiple
BPAs are needed to meet its requirements, the ordering office should determine
which contractors can meet any technical qualifications before establishing the
BPAs. When multiple BPAs are established, the authorized users must follow the
procedure in (3) (ii) (B) above, and then place the order with the schedule
contractor that represents the best value and results in the lowest overall cost
alternative to meet the agency's needs.

            (ii) Review BPAs periodically. Such reviews shall be conducted at
least annually. The purpose of the review is to determine whether the BPA still
represents the best value (considering price, special qualifications, etc.) and
results in the lowest overall cost alternative to meet the agency's needs.

      (5) The ordering office should give preference to small business concerns
when two or more contractors can provide the services at the same firm-fixed
price or ceiling price.
<PAGE>   119
Modification                                                 Page 44 of 53 Pages

      (6) When the ordering office's requirement involves both products as well
as IT professional services, the ordering office should total the prices for the
products and the firm-fixed price for the services and select the contractor
that represents the greatest value in terms of meeting the agency's total needs.

      (7) The ordering office, at a minimum, should document orders by
identifying the contractor the services were purchased from, the services
purchased, and the amount paid. If other than a firm-fixed price order is
placed, such documentation should include the basis for the determination to use
a labor-hour or time-and-materials order. For agency requirements in excess of
the micro-purchase threshold, the order file should document the evaluation of
schedule contractors' proposals that formed the basis for the selection of the
contractor that received the order and the rationale for any trade-offs made in
making the selection.

b. Ordering Procedures for other services available on schedule at fixed prices
for specifically defined services or tasks.

      Orders placed pursuant to a Multiple Award Schedule (MAS), using the
procedures in FAR 8.404, are considered to be issued pursuant to full and open
competition. Therefore, when placing orders under Federal Supply Schedules,
ordering offices need not seek further competition, synopsize the requirement,
make a separate determination of fair and reasonable pricing, or consider small
business set-asides in accordance with subpart 19.5. GSA has already determined
the prices of items under schedule contracts to be fair and reasonable. By
placing an order against a schedule using the procedures outlined below, the
ordering office has concluded that the order represents the best value and
results in the lowest overall cost alternative (considering price, special
features, administrative costs, etc.) to meet the Government's needs.

      (1) ORDERS PLACED AT OR BELOW THE MICRO-PURCHASE THRESHOLD. Ordering
offices can place orders at or below the micro-purchase threshold with any
Federal Supply Schedule Contractor.

      (2) ORDERS EXCEEDING THE MICRO-PURCHASE THRESHOLD BUT NOT EXCEEDING THE
MAXIMUM ORDER THRESHOLD. Orders should be placed with the Schedule Contractor
that can provide the supply or service that represents the best value. Before
placing an order, ordering offices should consider reasonably available
information about the service offered under MAS contracts by using the "GSA
Advantage!" on-line shopping service, or by reviewing the catalogs/pricelists of
at least three Schedule Contractors and selecting the delivery and other options
available under the
<PAGE>   120
Modification                                                 Page 45 of 53 Pages

schedule that meets the agency's needs. In selecting the service representing
the best value, the ordering office may consider- (i) special features of the
service that are required in effective program performance and that are not
provided by a comparable service; and (ii) past performance.

      (3) ORDERS EXCEEDING THE MAXIMUM ORDER THRESHOLD. Each schedule contract
has an established maximum order threshold. This threshold represents the point
where it is advantageous for the ordering office to seek a price reduction. In
addition to following the procedures in paragraph b, above, and before placing
an order that exceeds the maximum order threshold, ordering offices shall--

            (i) Review additional Schedule Contractors' catalogs/pricelists or
use the "GSA Advantage!" on-line shopping service;

            (ii) Based upon the initial evaluation, generally seek price
reductions from the Schedule Contractor(s) appearing to provide the best value
(considering price and other factors); and

            (iii) After price reductions have been sought, place the order with
the Schedule Contractor that provides the best value and results in the lowest
overall cost alternative. If further price reductions are not offered, an order
may still be placed, if the ordering office determines that it is appropriate.

            NOTE: For orders exceeding the maximum order threshold, the
Contractor may:

                 (A) Offer a new lower price for this requirement (the Price
Reductions clause is not applicable to orders placed over the maximum order in
FAR 52.216-19 Order Limitations);

                 (B) Offer the lowest price available under the contract; or

                 (C) Decline the order (orders must be returned in accordance
with FAR 52.216-19).

      (4) BLANKET PURCHASE AGREEMENTS (BPAs). The establishment of Federal
Supply Schedule BPAs is permitted when following the ordering procedures in FAR
8.404. All schedule contracts contain BPA provisions. Ordering offices may use
BPAs to establish accounts with Contractors to fill recurring requirements. BPAs
should address the frequency of ordering and invoicing, discounts, and delivery
locations and times.
<PAGE>   121
Modification                                                 Page 46 of 53 Pages

      (5) PRICE REDUCTIONS. In addition to the circumstances outlined in
paragraph (3), above, there may be instances when ordering offices will find it
advantageous to request a price reduction. For example, when the ordering office
finds a schedule service ~elsewhere at a lower price or when a BPA is being
established to fill recurring requirements, requesting a price reduction could
be advantageous. The potential volume of orders under these agreements,
regardless of the size of the individual order, may offer the ordering office
the opportunity to secure greater discounts. Schedule Contractors are not
required to pass on to all schedule users a price reduction extended only to an
individual agency for a specific order.

      (6) SMALL BUSINESS. For orders exceeding the micro- purchase threshold,
ordering offices should give preference to the items of small business concerns
when two or more items at the same delivered price will satisfy the requirement.

      (7) DOCUMENTATION. Orders should be documented, at a minimum, by
identifying the Contractor the item was purchased from, the item purchased, and
the amount paid. If an agency requirement in excess of the micro-purchase
threshold is defined so as to require a particular brand name, product, or
feature of a product peculiar to one manufacturer, thereby precluding
consideration of a product manufactured by another company, the ordering office
shall include an explanation in the file as to why the particular brand name,
product, or feature is essential to satisfy the agency's needs.

3.    ORDER

      a. Agencies may use written orders, EDI orders, blanket purchase
agreements, individual purchase orders, or task orders for ordering services
under this contract. Blanket Purchase Agreements shall not extend beyond the end
of the contract period; all services and delivery shall be made and the contract
terms and conditions shall continue in effect until the completion of the order.
Orders for tasks which extend beyond the fiscal year for which funds are
available shall include FAR 52.232-19 Availability of Funds for the Next Fiscal
Year. The purchase order shall specify the availability of funds and the period
for which funds are available.

      b. All task orders are subject to the terms and conditions of the
contract. In the event of conflict between a task order and the contract, the
contract will take precedence.
<PAGE>   122
Modification                                                 Page 47 of 53 Pages

4.    PERFORMANCE OF SERVICES

      a. The Contractor shall commence performance of services on the date
agreed to by the Contractor and the ordering office.

      b. The Contractor agrees to render services only during normal working
hours, unless otherwise agreed to by the Contractor and the ordering office.

      c. The Contractor guarantees the satisfactory completion of the IT/EC
Services performed under the task order and that all contract personnel utilized
in the performance of IT/EC services under the task order shall have the
education, experience, and expertise as stated in the task order.

      d. Any Contractor travel required in the performance of IT/EC Services
must comply with the Federal Travel Regulation or Joint Travel Regulations, as
applicable, in effect on the date(s) the travel is performed. Established
Federal Government per diem rates will apply to all Contractor travel.
Contractors cannot use GSA city pair contracts.

5.    INSPECTION OF SERVICES

The Inspection of Services-Fixed Price (AUG 1996) clause at FAR 52.246-4 applies
to firm-fixed price orders placed under this contract. The
Inspection-Time-and-Materials and Labor-Hour (JAN 1986) clause at FAR 52.246-6
applies to time-and-materials and labor-hour orders placed under this contract.

6.    RESPONSIBILITIES OF THE CONTRACTOR

The Contractor shall comply with all laws, ordinances, and regulations (Federal,
State, City, or otherwise) covering work of this character.

7.    RESPONSIBILITIES OF THE GOVERNMENT

Subject to security regulations, the ordering office shall permit Contractor
access to all facilities necessary to perform the requisite IT/EC Services.

8.    INDEPENDENT CONTRACTOR

All IT/EC Services performed by the Contractor under the terms of this contract
shall be as an independent Contractor, and not as an agent or employee of the
Government.
<PAGE>   123
Modification                                                 Page 48 of 53 Pages

9.    ORGANIZATIONAL CONFLICTS OF INTEREST

a.    Definitions.

"Contractor" means the person, firm, unincorporated association, joint venture,
partnership, or corporation that is a party to this contract.

"Contractor and its affiliates" and "Contractor or its affiliates" refers to the
Contractor, its chief executives, directors, officers, subsidiaries, affiliates,
subcontractors at any tier, and consultants and any joint venture involving the
Contractor, any entity into or with which the Contractor subsequently merges or
affiliates, or any other successor or assignee of the Contractor.

An "Organizational conflict of interest" exists when the nature of the work to
be performed under a proposed Government contract, without some restriction on
activities by the Contractor and its affiliates, may either (i) result in an
unfair competitive advantage to the Contractor or its affiliates or (ii) impair
the Contractor's or its affiliates' objectivity in performing contract work.

b. To avoid an organizational or financial conflict of interest and to avoid
prejudicing the best interests of the Government, ordering offices may place
restrictions on the Contractors, its affiliates, chief executives, directors,
subsidiaries and subcontractors at any tier when placing orders against schedule
contracts. Such restrictions shall be consistent with FAR 9.505 and shall be
designed to avoid, neutralize, or mitigate organizational conflicts of interest
that might otherwise exist in situations related to individual orders placed
against the schedule contract. Examples of situations, which may require
restrictions, are provided at FAR 9.508.

10.   INVOICES

The Contractor, upon completion of the work ordered, shall submit invoices for
IT/EC services. Progress payments may be authorized by the ordering office on
individual orders if appropriate. Progress payments shall be based upon
completion of defined milestones or interim products. Invoices shall be
submitted monthly for recurring services performed during the preceding month.
<PAGE>   124
Modification                                                 Page 49 of 53 Pages

11.   PAYMENTS

For firm-fixed price orders the Government shall pay the Contractor, upon
submission of proper invoices or vouchers, the prices stipulated in this
contract for service rendered and accepted. Progress payments shall be made only
when authorized by the order. For time-and-materials orders, the Payments under
Time-and-Materials and Labor-Hour Contracts (Alternate I (APR 1984)) at FAR
52.232-7 applies to time-and-materials orders placed under this contract. For
labor-hour orders, the Payment under Time-and-Materials and Labor-Hour Contracts
(FEB 1997) (Alternate II (JAN 1986)) at FAR 52.232-7 applies to labor-hour
orders placed under this contract.

12.   RESUMES

Resumes shall be provided to the GSA Contracting Officer or the user agency upon
request.

13.   INCIDENTAL SUPPORT COSTS

Incidental support costs are available outside the scope of this contract. The
costs will be negotiated separately with the ordering agency in accordance with
the guidelines set forth in the FAR.

14.   APPROVAL OF SUBCONTRACTS

The ordering activity may require that the Contractor receive, from the ordering
activity's Contracting Officer, written consent before placing any subcontract
for furnishing any of the work called for in a task order.

15.   DESCRIPTION OF IT/EC SERVICES AND PRICING

**NOTE TO CONTRACTORS: The information provided below is designed to assist
Contractors in providing complete descriptions and pricing information for the
IT/EC Services offered. This language should NOT be printed as part of the
Information Technology Schedule Pricelist; instead, Contractors should provide
the same type of information as it relates to the IT/EC Services offered under
the contract.**

      a. The Contractor shall provide a description of each type of IT/EC
Service offered under Special Item Numbers 132-51 and 132-52. IT/EC Services
should be presented in the same manner as the Contractor sells to its commercial
and other Government customers. If
<PAGE>   125
Modification                                                 Page 50 of 53 Pages

the Contractor is proposing hourly rates, a description of all corresponding
commercial job titles (labor categories) for those individuals who will perform
the service should be provided.

      b. Pricing for all IT/EC Services shall be in accordance with the
Contractor's customary commercial practices; e.g., hourly rates, monthly rates,
term rates, and/or fixed prices.

The following is an EXAMPLE of the manner in which the description of a
commercial job title should be presented:

EXAMPLE:

COMMERCIAL JOB TITLE: System Engineer

MINIMUM/GENERAL EXPERIENCE: Three (3) years of technical experience which
applies to systems analysis and design techniques for complex computer systems.
Requires competence in all phases of systems analysis techniques, concepts and
methods; also requires knowledge of available hardware, system software,
input/output devices, structure and management practices.

FUNCTIONAL RESPONSIBILITY: Guides users in formulating requirements, advises
alternative approaches, conducts feasibility studies.

MINIMUM EDUCATION: Bachelor's Degree in Computer Science

19.   ADD THE FOLLOWING TO THE END OF THE TERMS AND CONDITIONS AND PRIOR TO THE
      PRICES OF THE FEDERAL SUPPLY SERVICE AUTHORIZED INFORMATION TECHNOLOGY
      SCHEDULE PRICELIST (FORMERLY KNOWN AS ATTACHMENT I OF THE SOLICITATION).

**INCLUDE THE FOLLOWING IN THE PROPOSED FSS IT SCHEDULE PRICELIST. **

                            USA COMMITMENT TO PROMOTE
                          SMALL BUSINESS PARTICIPATION
                              PROCUREMENT PROGRAMS

PREAMBLE

(Name of Company) provides commercial products and services to the Federal
Government. We are committed to promoting participation of small, small
disadvantaged and women-owned small businesses in our contracts. We pledge to
provide opportunities to the small business community through reselling
opportunities, mentor-protege programs, joint ventures, teaming arrangements,
and subcontracting.
<PAGE>   126
Modification                                                 Page 51 of 53 Pages

COMMITMENT

To actively seek and partner with small businesses.

To identify, qualify, mentor and develop small, small disadvantaged and
women-owned small businesses by purchasing from these businesses whenever
practical.

To develop and promote company policy initiatives that demonstrate our support
for awarding contracts and subcontracts to small business concerns.

To undertake significant efforts to determine the potential of small, small
disadvantaged and women-owned small business to supply products and services to
our company.

To insure procurement opportunities are designed to permit the maximum possible
participation of small, small disadvantaged, and women-owned small businesses.

To attend business opportunity workshops, minority business enterprise seminars,
trade fairs, procurement conferences, etc., to identify and increase small
businesses with whom to partner.

To publicize in our marketing publications our interest in meeting small
businesses that may be interested in subcontracting opportunities.

We signify our commitment to work in partnership with small, small disadvantaged
and women-owned small businesses to promote and increase their participation in
Federal Government contracts. To accelerate potential opportunities please
contact (Insert Company Point of contact, phone number, e-mail address, fax
number).
<PAGE>   127
Modification                                                 Page 52 of 53 Pages

20.   IN ORDER TO ASSIST GSA/FSS IN UPDATING OUR DATABASE, PLEASE PROVIDE/UP
      DATE THE FOLLOWING INFORMATION:

(a)   Offerors are to insert the ordering information below:

ORDERING ADDRESS:          275 West Street, Suite 400
                 ---------------------------------------------------------------
   Annapolis, Maryland                      ZIP CODE:    21401
-----------------------------------------            ---------------------------

ORDERING FACSIMILE:         410-263-7617
                   -------------------------------------------------------------

(b) Offerors are required to designate a person to be contacted for prompt
contract administration.

NAME:      Jeffrey Mogelinski
     ---------------------------------------------------------------------------
TITLE:     Contracts Manager
      --------------------------------------------------------------------------
ADDRESS:    275 West Street, Suite 400
        ------------------------------------------------------------------------
        Annapolis, Maryland                 ZIP CODE:    21401
------------------------------------------           ---------------------------

TELEPHONE NO.: (410) 280-1236               FAX NO.:  (410) 263-7617
              ----------------------------          ----------------------------
E-MAIL ADDRESS:   mogelinj@pobox.tcs-inc.com
               -----------------------------------------------------------------

(c) Contractor compliance with the GSA Form 72A reporting requirements and the
Industrial Funding Fee will be delegated to a GSA Administrative Contracting
Officer. The Contract Management Zone will be determined based upon the location
of the individual designated by the Contractor for administration of the
contract's GSA Form 72A reporting. The name of this individual, along with the
person responsible for questions concerning the Industrial Funding Fee, must be
provided by the Contractor prior to the award of a contract.

GSA FORM 72A:

NAME:       Jeffrey Mogelinski
     ---------------------------------------------------------------------------
ADDRESS:        275 West Street, Suite 400
        ------------------------------------------------------------------------
        Annapolis, Maryland                 ZIP CODE:   21401
-----------------------------------------            ---------------------------
TELEPHONE NO.:   (410) 280-1236             FAX NO.:  (410) 263-7617
              ---------------------------            ---------------------------
E-MAIL ADDRESS:   mogelinj@pobox.tcs-inc.com
               -----------------------------------------------------------------
<PAGE>   128
Modification                                                 Page 53 of 53 Pages

INDUSTRIAL FUNDING FEE:

NAME:           Jeffrey Mogelinski
     ---------------------------------------------------------------------------
ADDRESS:        275 West Street, Suite 400
        ------------------------------------------------------------------------
      Annapolis, Maryland                      ZIP CODE:    21401
---------------------------------------------           ------------------------
TELEPHONE NO.:    (410) 280-1236               FAX NO.:   (410) 263-7617
              -------------------------------          -------------------------
E-MAIL ADDRESS:   mogelinj@pobox.tcs-inc.com
               -----------------------------------------------------------------
<PAGE>   129
<TABLE>
<S>                           <C>                 <C>           <C>      <C>             <C>       <C>      <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
                                                                1. CONTRACT ID CODE                         PAGE OF PAGES
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                             1   |    5
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT/MODIFICATION NO.    3. EFFECTIVE DATE   4. REQUISITION/PURCHASE REQ. NO.                  5. PROJECT NO. (If applicable)
        MOD PCO # 04               1-25-99
------------------------------------------------------------------------------------------------------------------------------------
ISSUED BY               CODE                      7. ADMINISTERED BY (If other than Item 6)               CODE
                              -----------------                                                                 --------------------
GENERAL SERVICES ADMINISTRATION, FSS
IT ACQUISITION CENTER
WASHINGTON, DC

------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF CONTRACTOR (No. street, country, State and ZIP Code)                 (X)  9A. AMENDMENT OF SOLICITATION NO.
                                                                                         ---

TELECOMMUNICATION SYSTEMS INC.                                                                --------------------------------------
275 WEST STREET, SUITE 400                                                                    9B. DATED (SEE ITEM 11)
ANNAPOLIS, MD. 21401
                                                                                         -------------------------------------------
                                                                                              10A. MODIFICATION OF CONTRACT/ORDER
                                                                                                    NO. GS-35F-4655H
                                                                                          X
                                                                                              --------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------
CODE                          FACILITY CODE                                                                  01/20/98
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
                                                                                             [ ] is extended.   [ ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment
on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and
amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR
AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already
submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
------------------------------------------------------------------------------------------------------------------------------------
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE
CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
( ) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE
   CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH
   IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
------------------------------------------------------------------------------------------------------------------------------------
X  C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
      MUTUAL AGREEMENT
------------------------------------------------------------------------------------------------------------------------------------
D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor [X] is not,  [ ] is required to sign this document and return     copies to the issuing office.
                                                                                       ---
------------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

    The above numbered contract is hereby modified as follows:

               1. A 3.7% price increase is granted under clause I.15 Economic Price Adjustment.

               2. Clause I.15 Economic Price Adjustment is modified as attached, and incorporated into the contract.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

                                                                         BEN A. REED, Contracting Officer, FCIS
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                           16C. DATE SIGNED       16B. UNITED STATES OF AMERICA             16C. DATE SIGNED

                                                                         BY  /s/ BEN A. REED                           1-25-99
----------------------------------------                                     ---------------------------------
(Signature of Person authorized to sign)                                     (Signature of Contracting Officer
------------------------------------------------------------------------------------------------------------------------------------
NSN 7640-01-162-8070                                        30-105                                     STANDARD FORM 30 (REV. 10-83)
PREVIOUS EDITION UNUSABLE                                                                                          Prescribed by GSA
                                                                                                                 FAR (48 CFR) 53.243
</TABLE>
<PAGE>   130
I.15 (REVISED 7/98)      ECONOMIC PRICE ADJUSTMENT

Price adjustments include price increases and price decreases. Adjustments will
be considered as follows:

(a)  Contractors shall submit price decreases anytime during the contract period
     in which they occur. Price decreases will be handled in accordance with the
     provisions of the Price Reduction Clause.

(b)  Contractors may request price increases to be effective on or after the
     12-months of the contract period providing all of the following conditions
     are met:

          (1) Increases have resulted from a reissue or other modification of
the Contractor's commercial catalog/pricelist that was used as the basis for
contract award, or increases that are based on the below items.

          If no commercial catalog/pricelist was used as the basis for contract
award, then requested increase will be evaluated against either of the
following methods:

     a.   The year over year percentage increase of the Department of Labor
          Employment Cost Index for Professional, Technical and Specialty
          Workers.

     b.   Increases resulting from a change in the contractor's market prices
          that were the basis of negotiation.

     (2)  No more than three increases will be considered during each
          succeeding 12-month period of the contract, (For succeeding contract
          periods of less than 12 months, up to three increases will be
          considered subject to the other conditions of this subparagraph (b)).

     (3)  Increases are requested before the last 60 days of the contract
          period.

     (4)  At least 30 days elapse between requested increases.

(c)  In any contract period during which price increases will be considered, the
     aggregate of the increases during any 12-month period shall not exceed 10
     percent of the contract unit price in effect at the end of the preceding
     12-month period. The Government reserves the right to raise the ceiling
     when market conditions during the contract period support such a change.

(d)  The following material shall be submitted with the request for a price
     increase:

     (1)  A copy of the commercial catalog/pricelist showing the price increase
          and the effective date for commercial customers.

     (2)  Commercial Sales Practice format regarding the Contractor's commercial
          pricing practice relating to the reissued or modified
          catalog/pricelist, or a certification that no change has occurred in
          the data since completion of the initial negotiation or a subsequent
          submission.

     (3)  Documentation supporting the reasonableness of the price increase
          (copies of the appropriate indices, etc.)

(e)  The Government reserves the right to exercise one of the following options:

     (1)  Accept the Contractor's price increases as requested when all
          conditions of (b), (c), and (d), above, are satisfied;

     (2)  Negotiate more favorable discounts from the new commercial prices when
          the total increase requested is not supported; or,

     (3)  Remove the product(s) from contract involved pursuant to the
          Cancellation Clause of this contract, when the increase requested is
          not supported.

The contract modification reflecting the price adjustment shall be signed by
the Government and made effective upon receipt of notification from the
Contractor that the new catalogs/pricelist have been mailed to the addresses
previously furnished by the Contracting Officer, provided that in no event
shall such price adjustment be effective prior to the effective date of the
commercial price increases. The increased contract prices shall apply to
delivery orders issued to the Contractor on or after the effective date of the
contract modification.

Telecommunication Systems Inc.          GS-35F-4655H           Page 2 of 2 pages
<PAGE>   131
                        TELECOMMUNICATIONS SYSTEMS, INC.
                                  GS-35F-4655H
                   MODIFICATION #__-ECONOMIC PRICE ADJUSTMENT

                      Off-Site (Contractor Facility) Rate

<TABLE>
------------------------------------------------------------------------------------------------
                                                          BURDENED       BURDENED       BURDENED
ORDER                                                      HOURLY       PERCENTAGE       HOURLY
NUMBER              LABOR CATEGORY                          RATE         INCREASE         RATE
------------------------------------------------------------------------------------------------
<S>                <C>                                   <C>            <C>            <C>
TCS-01 OFF          Program Manager                         $88.10         3.7%           $91.36
TCS-02 OFF          Systems Manager                         $87.04         3.7%           $90.26
TCS-03 OFF          Sr. Systems Manager                     $61.28         3.7%           $63.55
TCS-04 OFF          Jr. Systems Manager                     $35.51         3.7%           $36.82
TCS-05 OFF          Systems Administrator                   $63.31         3.7%           $65.65
TCS-06 OFF          Network Manager                         $91.92         3.7%           $95.32
TCS-07 OFF          Sr. Network Engineer                    $70.03         3.7%           $72.62
TCS-08 OFF          Jr. Network Engineer                    $40.30         3.7%           $41.79
TCS-09 OFF          Network Administrator                   $58.03         3.7%           $60.18
TCS-10 OFF          Sr. Network Technician                  $54.37         3.7%           $56.38
TCS-11 OFF          Jr. Network Technician                  $26.88         3.7%           $27.87
TCS-12 OFF          Computer Repair Technician              $23.47         3.7%           $24.34
TCS-13 OFF          Computer Resources Administrator        $59.09         3.7%           $61.28
TCS-14 OFF          Data Base Management Specialist         $68.03         3.7%           $70.55
TCS-15 OFF          Office Automation Specialist            $62.04         3.7%           $64.34
TCS-16 OFF          Configuration Management Specialist     $59.09         3.7%           $61.28
TCS-17 OFF          Computer Graphics Specialist            $42.98         3.7%           $44.57
TCS-18 OFF          Systems Software Specialist             $64.84         3.7%           $67.24
TCS-19 OFF          ADP Hardware Specialist                 $64.53         3.7%           $66.92
TCS-20 OFF          Help Desk Coordinator                   $47.68         3.7%           $49.44
TCS-21 OFF          Technical Writer                        $45.52         3.7%           $47.20
TCS-22 OFF          Computer Graphics Illustrator           $26.27         3.7%           $27.24
TCS-23 OFF          Sr. Programmer                          $56.94         3.7%           $59.05
TCS-24 OFF          Clerk                                   $29.78         3.7%           $30.88
</TABLE>

TeleCommunication Systems, Inc.         GS-35F-4655HG
<PAGE>   132
                        TELECOMMUNICATION SYSTEMS, INC.
                                  GS-35F-4655H
                 MODIFICATION #      -ECONOMIC PRICE ADJUSTMENT

                       ON-SITE (GOVERNMENT FACILITY) RATE

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------
                                                      BURDENED       BURDENED      BURDENED
ORDER                                                  HOURLY       PERCENTAGE      HOURLY
NUMBER         LABOR CATEGORY                           RATE         INCREASE        RATE
-------------------------------------------------------------------------------------------
<S>           <C>                                    <C>           <C>              <C>
TCS-01 ON      Program Manager                         $72.71          3.7%          $75.40
TCS-02 ON      Systems Manager                         $71.84          3.7%          $74.50
TCS-03 ON      Sr. Systems Manager                     $51.28          3.7%          $53.18
TCS-04 ON      Jr. Systems Manager                     $29.62          3.7%          $30.72
TCS-05 ON      Systems Administrator                   $52.24          3.7%          $54.17
TCS-06 ON      Network Manager                         $75.86          3.7%          $78.67
TCS-07 ON      Sr. Network Engineer                    $58.60          3.7%          $60.77
TCS-08 ON      Jr. Network Engineer                    $33.26          3.7%          $34.49
TCS-09 ON      Network Administrator                   $47.89          3.7%          $49.66
TCS-10 ON      Sr. Network Technician                  $44.87          3.7%          $46.53
TCS-11 ON      Jr. Network Technician                  $22.18          3.7%          $23.00
TCS-12 ON      Computer Repair Technician              $19.36          3.7%          $20.08
TCS-13 ON      Computer Resources Administrator        $48.76          3.7%          $50.56
TCS-14 ON      Data Base Management Specialist         $68.03          3.7%          $70.55
TCS-15 ON      Office Automation Specialist            $51.21          3.7%          $53.10
TCS-16 ON      Configuration Management Specialist     $48.76          3.7%          $50.56
TCS-17 ON      Computer Graphics Specialist            $35.47          3.7%          $36.78
TCS-18 ON      Systems Software Specialist             $53.22          3.7%          $55.19
TCS-19 ON      ADP Hardware Specialist                 $53.26          3.7%          $55.23
TCS-20 ON      Help Desk Coordinator                   $39.36          3.7%          $40.82
TCS-21 ON      Technical Writer                        $38.09          3.7%          $39.50
TCS-22 ON      Computer Graphics Illustrator           $22.65          3.7%          $23.49
TCS-23 ON      Sr. Programmer                          $46.99          3.7%          $48.73
TCS-24 ON      Clerk                                   $24.84          3.7%          $25.76
</TABLE>

TeleCommunication systems, Inc.         GS-35F4465H

<PAGE>   133
<TABLE>
<S>                           <C>                 <C>           <C>      <C>             <C>       <C>      <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
                                                                1. CONTRACT ID CODE                         PAGE OF PAGES
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                             1   |   14
------------------------------------------------------------------------------------------------------------------------------------
2. AMENDMENT/MODIFICATION NO.    3. EFFECTIVE DATE   4. REQUISITION/PURCHASE REQ. NO.                 5. PROJECT NO. (If applicable)
   MODIFICATION PCO-05
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY               CODE                      7. ADMINISTERED BY (If other than Item 6)               CODE
                              -----------------                                                                 --------------------
GENERAL SERVICES ADMINISTRATION
  IT ACQUISITION CENTER (FCI)
 1941 JEFFERSON DAVIS HIGHWAY
       ARLINGTON, VA 22202
------------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, country, State and ZIP Code)              ( )  9A. AMENDMENT OF SOLICITATION NO.
                                                                                         ---

TeleCommunication Systems, Inc.                                                               --------------------------------------
275 West Street                                                                               9B. DATED (SEE ITEM 11)
Suite 400
Annapolis, MD 21401                                                                      -------------------------------------------
                                                                                              10A. MODIFICATION OF CONTRACT/ORDER
                                                                                                   NO. GS-35F-4655H

                                                                                              --------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------------
CODE                          FACILITY CODE
------------------------------------------------------------------------------------------------------------------------------------
                                            11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
------------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
                                                                                             [ ] is extended.   [ ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment
on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and
amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR
AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already
submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)
------------------------------------------------------------------------------------------------------------------------------------
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE
CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
( ) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
------------------------------------------------------------------------------------------------------------------------------------
    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE
       CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH
       IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
------------------------------------------------------------------------------------------------------------------------------------
    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

------------------------------------------------------------------------------------------------------------------------------------
    D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return  2 (TWO)  copies to the issuing office.
                                                                                       ---------
------------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

     THE ABOVE REFERENCED CONTRACT UNDER FSC GROUP 70, INFORMATION TECHNOLOGY MULTIPLE AWARD SCHEDULE, IS HEREBY MODIFIED.

     ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME, EXCEPT AS INDICATED BELOW:

     (NOTE: BY SIGNING THIS MODIFICATION, CONTRACTOR HAS INCORPORATED ALL THE CHANGES INTO THE CONTRACT.)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
Jeffrey Mogelinski
Manager, Contracts
------------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                           15C. DATE SIGNED       16B. UNITED STATES OF AMERICA             16C. DATE SIGNED

            /s/ JEFFREY MOGELINSKI                    3-18-99             BY  /s/ BEN A. REED                                3-23-99
----------------------------------------                                     ---------------------------------
(Signature of person authorized to sign)                                     (Signature of Contracting Officer
------------------------------------------------------------------------------------------------------------------------------------
NSN 7540-01-152-8070                                        30-105                                     STANDARD FORM 30 (REV. 10-83)
PREVIOUS EDITION UNUSABLE                                                                                          Prescribed by GSA
</TABLE>
<PAGE>   134
Modification                                                  Page 3 of 14 Pages

2. DELETE PARAGRAPH C.5 GUARANTEED MINIMUM IN ITS ENTIRETY AND REPLACE WITH THE
FOLLOWING:

C. 5 GUARANTEED MINIMUM (I-FSS-106) (JAN 1999)

The minimum quantity of supplies that the Government agrees to order during the
period of this contract is $100. If the Contractor receives total orders for
less than $100 during the term of the contract, the Government will pay the
difference between the amount ordered and $100.

         (a) Payment of any amount due under this clause shall be
contingent upon the Contractor's timely submission of GSA Form 72A reports (see
GSAR 552.238-72 "Contractor's Report of Sales") during the period of the
contract and receipt of the close-out sales report pursuant to GSAR 552.238-72.

         (b) The guaranteed minimum applies only if the contract expires or
contract cancellation is initiated by the Government. The guaranteed minimum
does not apply if the contract is terminated for cause or if the contract is
canceled at the request of the Contractor.

3. DELETE PARAGRAPH C.7 PLACEMENT OF ORDERS IN ITS ENTIRETY AND REPLACE WITH THE
FOLLOWING:

C. 7 PLACEMENT OF ORDERS (552.216-73) (JUN 1994) (ALTERNATE II-FEB 1999)

(a) The organizations listed below may place orders under this contract.
Questions regarding organizations authorized to use this schedule should be
directed to the Contracting Officer.

         (1)      Executive agencies.

         (2)      Other Federal Agencies.

         (3)      Mixed-ownership Government corporations.

         (4)      The District of Columbia.

         (5)      Government Contractors authorized in writing by a Federal
                  agency pursuant to 48 CFR 51.1.

         (6)      Other activities and organizations authorized by statute or
                  regulation to use GSA as a source of supply.

(b) Orders may be placed through Electronic Data Interchange (EDI) or mailed in
paper form. EDI orders shall be placed using the American National Standards
Institute (ANSI) X12 Standard for Electronic Data Interchange (EDI) format.

(c) If the Contractor agrees, GSA's Federal Supply Service (FSS) will place all
orders by EDI using computer-to-computer EDI. If computer-to-computer EDI is not
possible, FSS will use an alternative EDI method allowing the Contractor to
receive orders by facsimile transmission. Subject to the Contractor's agreement,
other agencies may place orders by EDI.

                                        3

<PAGE>   135

MODIFICATION                                                 PAGE 4 OF 14 PAGES

(d). When computer-to-computer EDI procedures will be used to place orders, the
Contractor shall enter into one or more Trading Partner Agreements (TPA) with
each Federal agency placing orders electronically in order to ensure mutual
understanding by the parties of certain electronic transaction conventions and
to recognize the rights and responsibilities of the parties as they apply to
this method of placing orders. The TPA must identify, among other things, the
third party provider(s) through which electronic orders are placed, the
transaction sets used, security procedures, and guidelines for implementation.
Federal agencies may obtain a sample format to customize as needed from the
office specified in (g) below.

(e) The Contractor shall be responsible for providing its own hardware and
software necessary to transmit and receive data electronically. Additionally,
each party to the TPA shall be responsible for the costs associated with its use
of third party provider services.

(f) Nothing in the TPA will invalidate any part of this contract between the
Contractor and the General Services Administration. All terms and conditions of
this contract that otherwise would be applicable to a mailed order shall apply
to the electronic order.

(g) The basic content and format of the TPA will be provided by:

             General Services Administration
             Systems Inventory and Operations Management Center (FCS),
             Washington, DC 20406
             Telephone: (703) 305-7741
             FAX: (703) 305-7720

4. DELETE PARAGRAPH C.22 CONTRACTOR'S REPORT OF SALES IN ITS ENTIRETY AND
REPLACE WITH THE FOLLOWING:

C.22 CONTRACTOR'S REPORT OF SALES (552.238-72) (FEB 1999)

(a) The Contractor must report the quarterly dollar value (in U.S. dollars and
rounded to the nearest whole dollar) of all sales under this contract by
calendar quarter (i.e., January-March, April-June, July-September, and
October-December). The dollar value of a sale is the price paid by the schedule
user for products and services on a schedule contract delivery order, as
recorded by the Contractor. The reported contract sales value must include the
industrial funding fee (see Clause 552.238-77).

(b) The Contractor must report the quarterly dollar value of sales on electronic
GSA Form 72A, Contractor's Report of Sales, to the FSS Vendor Support Center
(VSC) Website at Internet, http://VSC.gsa-gov. The Contractor must report sales
separately for each National Stock Number (NSN), Special Item Number (SIN), or
subitem. If no sales occur, the Contractor must show zero on the report for each
separate NSN, SIN, or subitem.

                                        4

<PAGE>   136

Modification                                                  Page 5 of 14 Pages

(c) The Contractor must register with the VSC before using the automated
reporting system. To register, the Contractor (or its authorized representative)
must call the VSC at (703) 305-6235 and provide the necessary information
regarding the company, contact name(s), and telephone number(s). The VSC will
then issue a 72A specific password and provide other information needed to
access the reporting system. Instructions for electronic reporting are available
at the VSC Website or by calling the above phone number.

(d) The Contractor must convert the total value of sales made in foreign
currency to U.S. dollars using the "Treasury Reporting Rates of Exchange,"
issued by the U.S. Department of Treasury, Financial Management Service. The
Contractor must use the issue of the Treasury report in effect on the last day
of the calendar quarter. The report is available from: Department of the
Treasury, Financial Management Service, International Funds Branch, 3700
East-West Highway, PGCII, Room 5A19, Hyattsville, MD 20782, Telephone: (202)
874-7994, Internet: http://www.fms.treas.gov/intn.html

(e) The report is due 30 days following the completion of the reporting period.
The Contractor must also provide a close-out report within 120 days after the
expiration of the contract. The contract expires upon physical completion of the
last, outstanding task or delivery order of the contract. This close-out report
must cover all sales not shown in the final quarterly report and reconcile all
errors and credits. If the Contractor reported all contract sales and reconciled
all errors and credits on the final quarterly report, then show zero sales in
the close-out report.

5. DELETE PARAGRAPH C.28 PRICE REDUCTION IN ITS ENTIRETY AND REPLACE WITH THE
FOLLOWING:

C.28 PRICE REDUCTIONS (552.238-76) (FEB 1999)

(a) Before award of a contract, the Contracting Officer and the Offeror will
agree upon (1) the customer (or category of customers) which will be the basis
of award, and (2) the Government's price or discount relationship to the
identified customer (or category of customers). This relationship shall be
maintained throughout the contract period. Any change in the Contractor's
commercial pricing or discount arrangement applicable to the identified customer
(or category of customers) which disturbs this relationship shall constitute a
price reduction.

(b) During the contract period, the Contractor shall report to the Contracting
Officer all price reductions to the customer (or category of customers) that was
the basis of award. The Contractor's report shall include an explanation of the
conditions under which the reductions were made.

                                        5

<PAGE>   137

MODIFICATION                                                  PAGE 6 OF 14 PAGES

(c) (1)A price reduction shall apply to purchases under this contract if, after
the date negotiations conclude, the Contractor -

                  (i) Revises the commercial catalog, pricelist, schedule or
other document upon which contract award was predicated to reduce prices;

                  (ii) Grants more favorable discounts or terms and conditions
than those contained in the commercial catalog, pricelist, schedule or other
documents upon which contract award was predicated; or

                  (iii) Grants special discounts to the customer (or category of
customers) that was the basis of award, and the change disturbs the
price/discount relationship of the Government to the customer (or category of
customers) that was the basis of award.

         (2) The Contractor shall offer the price reduction to the Government
with the same effective date, and for the same time period, as extended to the
commercial customer (or category of customers).

(d) There shall be no price reduction for sales

         (1) To commercial customers under firm, fixed-price definite quantity
contracts with specified delivery in excess of the maximum order threshold
specified in this contract;

         (2) To Federal agencies; or

         (3) Caused by an error in quotation or billing, provided adequate
documentation is furnished by the Contractor to the Contracting Officer.

(e) The Contractor may offer the Contracting Officer a voluntary Governmentwide
price reduction at any time during the contract period.

(f) The Contractor shall notify the Contracting Officer of any price reduction
subject to this clause as soon as possible, but not later than 15 calendar days
after its effective date.

(g) The contract will be modified to reflect any price reduction which becomes
applicable in accordance with this clause.

6. DELETE PARAGRAPH C.29 MODIFICATIONS IN ITS ENTIRETY AND REPLACE WITH THE
FOLLOWING:

C.29 MODIFICATIONS (MULTIPLE AWARD SCHEDULE)
     (GSAR 552.243-72) (FEB 1999) (FCI DEVIATION-FEB 1999)

(a) General. The Contractor may request a contract modification by submitting a
request to the Contracting Officer for approval, except as noted in paragraph
(d) of this clause. At a minimum, every request shall describe the proposed
change(s) and provide the rationale for the requested change(s).

                                        6

<PAGE>   138

Modification                                                  Page 7 of 14 Pages

(b) Types of Modifications.

         (1) Additional items/additional SIN's. When requesting additions, the
following information must be submitted:

                  (i) Information requested in paragraphs (1) and (2) of the
Commercial Sales Practice Format to add SIN'S.

                  (ii) Discount information for the new items(s) or new SIN(S).
Specifically, submit the information requested in paragraphs 3 through 5 of the
Commercial Sales Practice Format. If this information is the same as the initial
award, a statement to that effect may be submitted instead.

                  (iii) Information about the new item(s) or new SIN(s) as
described in 552.212-70, Preparation of Offer (Multiple Award Schedule) is
required.

                  (iv) Delivery time(s) for the new item(s) or the item(s) under
the new SIN(s) must be submitted in accordance with 552.211-78, Commercial
Delivery Schedule (Multiple Award Schedules).

                  (v) Production point(s) for the new item(s) or the item(s)
under the new SIN(s) must be submitted if required by 52.215-6, Place of
Performance.

                  (vi) Any information requested by 52.212-3(d), Offerors
Representations and Certifications - Commercial Items, that may be necessary to
assure compliance with 552.225-9, Trade Agreements Act.

         (2) Deletions. The Contractors shall provide an explanation for the
deletion. The Government reserves the right to reject any subsequent offer of
the same item or a substantially equal item at a higher price during the same
contract period, if the contracting officer finds the higher price to be
unreasonable when compared with the deleted item.

         (3) Price Reduction. The Contractor shall indicate whether the price
reduction falls under the item (i), (ii), or (iii) of paragraph (c)(1) of the
Price Reductions clause at 552.238-76. If the Price reduction falls under item
(i), the Contractor shall submit a copy of the dated commercial price list. If
the price reduction falls under item (ii) or (iii), the Contractor shall submit
a copy of the applicable price list(s), bulletins or letters or customer
agreements which outline the effective date, duration, terms and conditions of
the price reduction.

(c) Effective dates. The effective date of any modification is the date
specified in the modification, except as otherwise provided in the Price
Reductions clause at 552-238-76.

(d) Electronic File Updates. The Contractor shall update electronic file
submissions to reflect all modifications. For additional items or SINs, the
Contractor shall obtain the Contracting Officer's approval before transmitting
changes. Contract modifications will not be made

                                        7

<PAGE>   139

MODIFICATION                                                  PAGE 8 OF 14 PAGES

effective until the Government receives the electronic file updates. The
Contractor may transmit price reductions, item deletions, and corrections
without prior approval. However, the Contractor shall notify the Contracting
Officer as set forth in the Price Reductions clause at 552.238-76.

(e)  Amendments to Paper Federal Supply Schedule Price Lists.

         (1) The Contractor must provide supplements to its paper price lists,
reflecting the most current changes. The Contractor may either:

                  (i) Distribute a supplemental paper Federal Supply Schedule
Price List within 15 days after the effective date of each modification.

                  (ii) Distribute cumulative supplements. The period covered by
a accumulative supplement is at the discretion of the Contractor, but may not
exceed three months from the effective date of the earliest modification. The
Contractor must distribute each cumulative supplement within 15 days from the
date of the latest modification covered.

         (2) At a minimum, the Contractor shall distribute each supplement to
those ordering activities that previously received the basic document. In
addition, the Contractor shall submit two copies of each supplement to the
contracting officer and one copy to the FSS Schedule Information Center.

7. DELETE PARAGRAPH C.31 SUBMISSION AND DISTRIBUTION OF AUTHORIZED FEDERAL
SUPPLY SERVICE (FSS) INFORMATION TECHNOLOGY SCHEDULE PRICELISTS IN ITS ENTIRETY
AND REPLACE WITH THE FOLLOWING:

C. 31    SUBMISSION AND DISTRIBUTION OF AUTHORIZED FEDERAL SUPPLY
         SERVICE (FSS) INFORMATION TECHNOLOGY SCHEDULE PRICELISTS
        (I-FCI-600)(FEB 1999)

(a) ELECTRONIC CONTRACT DATA

         (1) The Contracting Officer will provide a vendor start-up kit with
instructions for submitting electronic contract data in a prescribed electronic
format as required by GSAR clause 552.238-74, Submission and Distribution of
Authorized FSS Schedule pricelists [DEVIATION-FEB 19981.

         (2) The Contractor will have a choice to transmit its file submissions
electronically through Electronic Data Interchange (EDI) in accordance with the
Federal Implementation Convention (IC) or use the application provided on a
diskette. -e Contractor's electronic files shall be complete; correct; readable
virus-free; and contain only those products, prices, and terms and conditions
that were accepted by the Government. They will be added to GSA's electronic
ordering system known as GSA Advantage! (tm) a menu-driven database system that
provides

                                        8

<PAGE>   140

Modification                                                  Page 9 of 14 Pages

on-line access to contract ordering information, terms and conditions,
up-to-date pricing, and the option to create an electronic delivery order. The
Contractor's electronic files must be received no later than 45 days after
receipt of the vendor start-up kit.

         (3) Further details on EDI, IC's, and GSA Advantage!(TM) be found in
I-FSS-599, Electronic Commerce-FACNET.

(b) PAPER FEDERAL SUPPLY SCHEDULE PRICELISTS

         (1) The Contractor shall prepare a paper FSS Information Technology
Schedule pricelist in accordance with Attachment I, Guidelines For Format and
Content of Authorized Federal Supply Service Information Technology Schedule
pricelist. Two (2) copies of the FSS Information Technology Schedule pricelist
shall be submitted with the Offeror's proposal.

         (2) The Contracting Officer will return one copy of the Authorized FSS
Information Technology Schedule pricelist to the Contractor with the
notification of contract award. In accordance with GSAR clause 552.238-74 (see
C.30), the Contractor may print and distribute the awarded pricelist without
written approval from the Contracting Officer. The pricelist must include all
applicable terms and conditions of the cited contract. The Contractor will be
responsible for the accuracy of the pricelist.

         (3) Modifications to FSS Information Technology Schedule pricelists
shall include on the cover page the same information as the basic document plus
the title "Modification No." and the effective date(s) of such modifications.

         (4) The Contractor may provide two (2) copies (including cover letter)
of the Federal Supply Schedule pricelist to the Contracting Officer for review.
Accuracy of information and computation of prices is the responsibility of the
Contractor.

         (5) An address list of customers who are interested in the FSS
Information Technology Schedule will only be furnished upon request from the
Contractor. The list of customer addresses is available in one of the following
formats (as specified by the Contractor):

          ____________   Cheshire Label
          ____________   Gummed Label
          ____________   Diskette-Mailing lists on diskette are available in
          ASCII and in the following record format only:

<TABLE>
<CAPTION>
Field Name                               Field Size
<S>                                      <C>
1. Customer ID No.                            12
2. Agency Name                                35
3. Address Line 1                             35
4. Address Line 2                             35
5. City                                       20
6. State                                      2
7. Zip Code                                   9
</TABLE>

Use of the mailing list for any purpose other than the distribution of the
Authorized FSS Information Technology Schedule pricelist is not authorized.

                                       9

<PAGE>   141

MODIFICATION                                                 PAGE 10 OF 14 PAGES

         (6) The CONTRACTOR MAY FORMALLY print and distribute a Federal Supply
Schedule pricelist. Inclusion of incorrect information will cause the Contractor
to reprint and redistribute the Federal Supply Schedule pricelist, and may
constitute sufficient cause for Cancellation, applying the provisions of
52.212-4, Contract Terms and Conditions (paragraph (m), Termination for Cause),
and application of any other remedies as provided by law-including monetary
recovery.

         (7) Distribution to the customer mailing list shall be made as set
forth GSAR clause 552.238-74, Submission and Distribution of Authorized FSS
Schedule pricelists (See C.30). In addition, two (2) copies of the Federal
Supply Schedule pricelist shall be submitted to the FSS Information Center at
the address listed below. The Contractor may also send Federal Supply Schedule
pricelists to agencies not on the GSA listing when there is reasonable
expectation that sales to these agencies will be made.

                   General Services Administration
                   Federal Supply Service
                   FSS Information Center (FMLI)
                   Crystal Mall Building 4, Room L-104
                   Washington, DC 20406

8. DELETE PARAGRAPH C.33 YEAR 2000 WARRANTY COMMERCIAL SUPPLY ITEMS IN ITS
ENTIRETY AND REPLACE WITH THE FOLLOWING:

C.33  YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS
      (I-FSS-550-B)(JAN 1999)

(a) As used in this clause, "Year 2000 compliant" means, with respect to
information technology, that the information technology accurately processes
date/time data (including, but not limited to, calculating, comparing and
sequencing) from, into, and between the twentieth and twenty-first centuries,
and the years 1999 and 2000, and leap year calculations, to the extent that
other information technology used in combination with the information technology
being acquired, properly exchanges date/time data with it.

(b) The Contractor shall warrant that each hardware, software, and firmware
product delivered under this contract shall be able to accurately process date
time data (including, but not limited to, calculating, comparing, and
sequencing) from, into, and between the twentieth and twenty-first centuries,
including leap year calculations, when used in accordance with the product
documentation provided by the Contractor, provided that all products (e.g.
hardware, software, firmware) used in combination with products properly
exchange date time data with it. If the contract requires that specific listed
products must perform as a system in accordance with the foregoing warranty,
then that warranty shall apply to those products as a system. The duration of
this warranty and the remedies available under this warranty shall include
repair or replacement of any product whose non

                                       10

<PAGE>   142

Modification                                                 Page 11 of 14 Pages

compliance is discovered and made known to the Contractor in writing within
ninety (90) days after acceptance (installation is considered acceptance). The
Contractor may offer an extended warranty to the Government to include repair or
replacement of any product whose non-compliance is discovered and made known to
the Contractor in writing at any time prior to June 1, 2000, or for a period of
6 months following acceptance (installation is considered acceptance) whichever
is later. Nothing in this warranty shall be construed to limit any rights or
remedies the Government may otherwise have under this contract with respect to
defects other than Year 2000 performance.

9. ADD THE FOLLOWING PARAGRAPHS TO THE END OF SECTION C.

C.43 CENTRAL CONTRACTOR REGISTRATION (CCR) (I-FCI-598) (DEC 1998)

To receive orders from the Department of Defense (DoD) contractors must be
registered in the DoD CCR database (registration information is available at
http://ccr.edi.disa.mil). The CCR database is DoD's primary repository for
contractor information required for the conduct of business with DoD. This
requirement does not apply to purchases made with a Governmentwide commercial
purchase card. (Refer to clause I-FCI-600, SUBMISSION AND DISTRIBUTION OF
AUTHORIZED FEDERAL SUPPLY SERVICE (FSS) INFORMATION TECHNOLOGY SCHEDULE
PRICELISTS, for additional information regarding CCR.)

C.44 VENDOR MANAGED INVENTORY (VMI) PROGRAM (MAS)
      (G-FSS-906) (JAN 1999)

(a) The term "Vendor Managed Inventory" describes a system in which the
Contractor monitors and maintains specified inventory levels for selected items
at designated stocking points. VMI enables the Contractor to plan production and
shipping more efficiently. Stocking points benefit from reduced inventory but
steady stock levels.

(b) Contractors that commercially provide a VMI-type system may enter into
similar partnerships with customers under a Blanket Purchase Agreement.

10. PARAGRAPH D.1(b) (8) ; DELETE THE FAR 52.227-37 INCORPORATED BY REFERENCE
AND REPLACE WITH THE FOLLOWING:

(8) 52.222-37, Employment Reports on Special Disabled Veterans and Veterans of
the Vietnam Era (JAN 1999) (38 U.S.C. 4212).

                                       11

<PAGE>   143

MODIFICATION:                                                PAGE 12 OF 14 PAGES

NOTE: FAR 52.227-37 HAS BEEN UPDATED THE NEW CLAUSE READS AS FOLLOWS:

52.222-37 EMPLOYMENT REPORTS ON SPECIAL DISA13LED VETERANS AND
          VETERANS OF THE VIETNAM ERA (JAN 1999)

(a) Unless the Contractor is a State or local government agency, the Contractor
shall report at least annually, as required by the Secretary of Labor, on

         (1) The number of special disabled veterans and the number of veterans
of the Vietnam era in the workforce of the Contractor by job category and hiring
location; and

         (2) The total number of new employees hired during the period covered
by the report, and of that total, the numbered of special disabled veterans, and
the number of veterans of the Vietnam era.

(b) The above items shall be reported by completing the form entitled "Federal
Contractor Veterans' Employment Report VETS-100."

(c) Reports shall be submitted no later than September 30 of each year beginning
September 30, 1988.

(d) The employment activity report required by paragraph (a)(2) of this clause
shall reflect total hires during the most recent 12-month period as of the
ending date selected for the employment profile report required by paragraph
(a)(1) of this clause. Contractors may select an ending date: (1) As of the end
of any pay period during the period January through March lst of the year the
report is due, or (2) as of December 31, if the Contractor has previous written
approval from the Equal Employment Opportunity Commission to do so for purposes
of submitting the Employer Information Report EEO-l (Standard Form 100).

(e) The count of veterans reported according to paragraph (a) of this clause
shall be based on voluntary disclosure. Each Contractor subject to the reporting
requirements at 38 U.S.C. 4212 shall invite all disabled veterans and veterans
of the Vietnam era who wish to benefit under the affirmative action program at
38 U.S.C. 4212 to identify themselves to the Contractor. The invitation shall
state that the information is voluntarily provided; that the information will be
kept confidential; that disclosure or refusal to provide the information will
not subject the applicant or employee to any adverse treatment; and that the
information will be used only in accordance with the regulations promulgated
under 38 U.S.C. 4212.

(f) Subcontracts. The Contractor shall include the terms of this clause in every
subcontract or purchase order of $10,000 or more unless exempted by rules,
regulations, or orders of the Secretary. If you have any questions, please
contact your contracting officer.

                                       12

<PAGE>   144

Modification                                                 Page 13 of 14 Pages

11. ADD the following paragraph to the end of Section G.

G.13 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING REQUIREMENTS

(a) The Offeror represents that, if it is subject to the reporting requirements
of 38 U.S.C. 4212(d) (i.e. the VETS-100 report required by the Federal
Acquisition Regulation clause 52.222-37, Employment Reports on Disabled Veterans
and Veterans of the Vietnam Era), it has [ ], has not [ ] submitted the most
recent report required by 38 U.S.C. 4212(d).

(b) An Offeror who checks "has not" may not be awarded a contract until the
required reports are filed (31 U.S.C. 1354).

12. CHANGES IN ATTACHMENT I - GUIDELINES FOR FORMAT AND CONTENT OF FEDERAL
SUPPLY SERVICE INFORMATION TECHNOLOGY SCHEDULE PRICELIST:

A. COVER PAGE - ADD the following under Special Item Numbers (SINs) 132-33 Term
Software Licenses and 132-33 Perpetual Software Licenses:

SPECIAL ITEM NO. 132-32 TERM SOFTWARE LICENSES

Large Scale Computers
      Core Financial Management Software
      Ancillary Financial Systems Software

Microcomputers
      Core Financial Management Software
      Ancillary Financial Systems Software

SPECIAL ITEM NO. 132-33 PERPETUAL SOFTWARE LICENSES

Large Scale Computers
      Core Financial Management Software
      Ancillary Financial Systems Software

Microcomputers
      Core Financial Management Software
      Ancillary Financial Systems Software

B. Information for Ordering Offices - ADD the following after "4a. CAGE Code:"

4b. Contractor has/has not registered with the Central Contractor Registration
Database.

**Choose the appropriate language - has/has not - in the above
sentence. (See C.43).**

                                       13

<PAGE>   145

MODIFICATION                                                PAGE 14 OF 14 PAGES

C. INFORMATION FOR ORDERING OFFICES - DELETE paragraph "20. Year 2000 Warranty
- Commercial Supply Items" and REPLACE with the following:

20. YEAR 2000 WARRANTY-COMMERCIAL SUPPLY ITEMS

(a) AS used in this clause, "Year 2000 compliant" means, with respect to
information technology, that the information technology accurately processes
date/time data (including, but not limited to, calculating, comparing and
sequencing) from, into, and between the twentieth and twenty-first centuries,
and the years 1999 and 2000, and leap year calculations, to the extent that
other information technology used in combination with the information technology
being acquired, properly exchanges date/time data with it.

(b) The Contractor shall warrant that each hardware, software, and firmware
product delivered under this contract shall be able to accurately process date
time data (including, but not limited to, calculating, comparing, and
sequencing) from, into, and between the twentieth and twenty-first centuries,
including leap year calculations, when used in accordance with the product
documentation provided by the Contractor, provided that all products (e.g.
hardware, software, firmware) used in combination with products properly
exchange date time data with it. If the contract requires that specific listed
products must perform as a system in accordance with the foregoing warranty,
then that warranty shall apply to those products as a system. The duration of
this warranty and the remedies available under this warranty shall include
repair or replacement of any product whose non compliance is discovered and made
known to the Contractor in writing within ninety (90) days after acceptance
(installation is considered acceptance). The Contractor may offer an extended
warranty to the Government to include repair or replacement of any product whose
non compliance is discovered and made known to the Contractor in writing at any
time prior to June 1, 2000, or for a period of 6 months following acceptance
(installation is considered acceptance) whichever is later. Nothing in this
warranty shall be construed to limit any rights or remedies the Government may
otherwise have under this contract with respect to defects other than Year 2000
performance.

                                       14<PAGE>   1
                                                                EXHIBIT 10.10(a)

<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 7
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E028                   | 1999 SEP 30       | N65236-9271-8F31                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-028                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING MORGAN                             |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |662400|
                                          --------------                                              --------       MARK ALL
    US SPECIAL OPERATIONS COMMAND                      |     DFAS ORLANDO, CODE FPV                          |     PACKAGES AND
    7701 TAMPA POINT BLVD                              |     PO BOX 934501                                   |      PAPERS WITH
    MACDILL AFB, FL 33621-5323                         |     2500 LEAHY AVENUE                               |      CONTRACT OR
    MARK FOR: SOIO-Y2K                                 |     ORLANDO, FL 32893-4501             EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 9790100.5600 X49 52SF 1SC1YK 11 592 N99761 662400                                                            $1,860,894.39
JOB ORDER: BMU93X9W54 (HQ030199N99761/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL     | $1,860,894.39
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29.           |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      | DIFFERENCES   |--------------
                                             |                                                       |               |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS  |
                                                                |              |                     |               |--------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |               |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|------------------------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   2

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E028                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR, MATERIAL AND TRAVEL TO PROVIDE SUPPORT FOR FY00 YEAR 2000 PROGRAM,
INTEGRATION TESTING, AND POST OPERATIONAL EVALUATION SUPPORT TO THE UNITED
STATES SPECIAL OPERATIONS COMMAND (USSOCOM) IN ACCORDANCE WITH THE ATTACHED
STATEMENT OF WORK.

FIRM FIXED PRICE LEVEL OF EFFORT: $1,860,894.39

THE PERIOD OF PERFORMANCE IS 30 SEPTEMBER 1999 THROUGH 31 MARCH 2000

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE
GOVERNMENT IS HARVEY BERMAN, CODE 3OHB, TELEPHONE (843) 974-4083.

<PAGE>   3

                                STATEMENT OF WORK
                                       FOR
                      CONTRACTOR SUPPORT FOR FY00 YEAR 2000
          PROGRAM, INTEGRATION TESTING, AND POST OPERATIONAL EVALUATION
        SUPPORT TO THE UNITED STATES SPECIAL OPERATIONS COMMAND (USSOCOM)

1.       SCOPE

1.1.     The USSOCOM Y2K Task Force requires continued efforts to maintain
         oversight of its mission critical Information Technology (IT) systems
         and its mission essential supporting systems throughout the USSOCOM
         enterprise. The period of performance is to commence on 30 September
         1999 through 31 March 2000. A review of taskings will be conducted on
         or about 15 January 2000 to determine any required modifications to
         this Statement of Work (SOW). This SOW includes requirements to manage
         information on USSOCOM-managed mission critical systems and contingency
         plans, conduct configuration management, residual integration testing,
         and to document and provide reports to USSOCOM, the Joint Staff Y2K
         Task Force and the Department of Defense (DoD).

1.2.     This continuing effort will consolidate all FY00 Y2K support under a
         single contractor. This will be a Level of Effort support contract.
         The SOW is intended to accomplish USSOCOM objectives as described in
         Section 4 during the time period 30 September 1999 through 31 March
         2000. The contract will be executed in two phases: 30 September 1999
         through 15 January 2000 (Risk Management, Millennium Rollover and
         Aggressive Triage); and 16 January 2000 through 31 March 2000
         (Consequence Management, Triage, Leap Year Rollover. The Government
         will provide a contractor-managed travel budget and an ODC budget.

1.3.     The SOW requires a combination of Y2K skills; exercise planning,
         coordination, execution, problem resolution, reporting, communication
         engineering and analysis. The tasks include providing technical
         information to the Government in support of USSOCOM Y2K
         interoperability exercises, configuration management, reporting, and
         consequence management. The work also includes web site maintenance,
         operating and maintaining Y2K systems and operational evaluation
         databases to collect and analyze Y2K results. The Commanders-in-Chief
         (CINCs) and his staff will then use these results to make sound mission
         readiness assessments. Specific requirements are listed in paragraph 4.
         This SOW requires an adequate source of commercial expertise to bring
         the required assistance to the USSOCOM Y2K Task Force to manage and
         mitigate the potential risks associated with the Y2K critical crossover
         dates, and respond should Y2K problems develop during the year 2000.

1.4.     The contractor may be requested to conduct exploratory work to develop
         teaching, training and other innovative products and services, based on
         lessons learned from the Y2K effort. In the event that these tasks
         exceed current resources, this contract may be modified to reflect the
         required level of effort.

<PAGE>   4

2.       BACKGROUND

2.1.     USSOCOM IT systems operate across multiple platforms and have many
         associated interdependencies, such as software interfaces with other
         systems, communications software, hardware, commercial products,
         satellites, and other peripheral systems.

2.2.     With only three months remaining until the year 2000, USSOCOM must
         ensure that the most critical IT systems are Y2K ready. USSOCOM must
         also be ready to conduct its mission should various systems fail. To
         accomplish this, USSOCOM, in accordance with the DoD guidance, will
         continue to conduct integration tests to evaluate its Thin Line systems
         until all system anomalies are identified, corrected, or suitable
         contingency plans put in place, to meet the year 2000 challenge. Also,
         Consequence Management methods will be prepared and employed to
         mitigate unanticipated events.

2.3.     The Y2K Task Force identified the USSOCOM: Thin Line" systems and
         mission essential systems that support SOF units. Although the Thin
         Line systems have been operationally evaluated in simulated Y2K
         environments, their current baseline configuration requires management
         for modification and expansion without corruption. Additionally, the
         Office of the Secretary of Defense has escalated its emphasis on "Host
         Nation" (HNS) Y2K support and Consequence Management, thus causing
         on-going and increased efforts from the unified Commanders-in-Chief
         (CINCs) to conduct local and Host Nation Support analysis of potential
         Y2K challenges from a force protection and crisis response standpoint.

3.       APPLICABLE DOCUMENTS

3.1.     Department of Defense Year 2000 Management Plan, Version 2.0 (December
         1998)

3.2.     Joint Chiefs of Staff Year 2000 Action Plan, Version 3.0 (February
         1999)

3.3.     USSOCOM Year 2000 Validation Strategy, Draft (April 1998)

3.4.     USSOCOM Year 2000 Compliance Certification Plan (December 1997)

3.5.     USSOCOM Year 2000 Management Plan, Draft (19 November 1998)

3.6.     USSOCOM Year 2000 Consequence Management Action Plan, Draft

3.7.     Joint Staff Year 2000 Operational Evaluation Guide, Version 3.0 (1
         April 1999)

3.8.     DoD Year 2000 Consequence Management Action Plan (May 1999)

3.9.     Deputy Secretary of Defense Memorandum, Subject: DoD Year 2000 (Y2K)
         Support to Civil Authorities, 23 February 1999

<PAGE>   5

4.       REQUIREMENTS

4.1.     Integration Testing: The contractor will provide the planning,
         coordination execution, problem resolution, reporting and support
         necessary for effective and efficient testing of systems as follows:

4.1.1.   Test the remaining USSOCOM-Managed Mission Critical systems by 31
         October 1999.

4.1.2.   Test the remaining Thin Line systems by 1 December 1999.

4.1.3.   Plan and coordinate Table Top Contingency Exercises by 31 December
         1999.

4.1.4.   Assist the Command in planning and implementing a millennium
         communications system to ensure connectivity with the NCA, theater
         SOCs, and continuity of command and control of assigned forces.

4.2.     Create (if not already created in FY99), maintain and update plans and
         briefings:

4.2.1.   CINC's Y2K Risk Management Plan

4.2.2.   CINC's Y2K Consequence Management Plan

4.2.3.   CINC's Y2K Configuration Management Plan

4.3.     Y2K Staff Augmentation:

4.3.1.   Maintain an on-call cadre of three (3) individuals whenever the DoD
         Posture Level rises to 1 or 2. These on-call personnel may be required
         to report to Bldg. 501 within three (3) hours upon notification and
         remain on station.

4.3.2.   Advise USSOCOM Command Center personnel on the various aspects of
         Consequence Management and DoD posture.

4.4.     Review, Assessment, and Reporting Tasks:

4.4.1.   Support SOC readiness efforts and on-site assistance.

4.4.2.   Continue to provide tailored support to Special Access Programs with
         not more than 4 personnel.

4.5.     Provide staff support and hosting, briefing materials, administrative
         support, and answer requests for information:

4.5.1.   Monthly Y2K Steering Group Meetings.

4.5.2.   CINC Y2K updates.

4.5.3.   Joint Staff Y2K VTC and reporting requirements.

4.5.4.   One Off-Site conference.

4.5.5.   One On-Site conference.

4.5.6.   JCS Y2K visits.

4.5.7.   DoD IG visits.

4.5.8.   GAO audits.

<PAGE>   6

4.6.     PROJECT MANAGEMENT TASKS

4.6.1.   Manage the project in accordance with the Contractor's current project
         management standard tailored to meet the requirements of USSOCOM and
         this SOW. Manage staffing levels within the Direct Labor ceiling for a
         maximum of 23 personnel.

4.6.2.   Assume control of all Government Furnished Property (GFP), hardware,
         software, and Data (GFD) used by previous contractors performing Y2K
         work from the government. Return to inventory all GFP not required for
         the performance of this contract.

4.6.3.   Provide Monthly IPRs in the current format. Include actual and
         projected funding overview.

4.6.4.   Provide Weekly Activity Reports in the current format.

4.6.5.   The contractor will ensure familiarity with DoD and USSOCOM security
         regulations.

4.6.6.   The contractor will travel to designated locations in order to perform
         Y2K support. The contractor will arrange and manage employee travel in
         accordance with accepted good business practices and Federal Travel
         Regulation (FTR).

4.6.7.   The contractor will provide the government with a staffing plan,
         funding requirements, and metrics for the evaluation of products and
         services received in accordance with the Contractor's Project
         Management standards.

4.7.     Manage, maintain, and update the following information and databases:

4.7.1.   HNS Briefing by formatting information from USSOCOM members of the
         HNS Working Group.

4.7.2.   The USSOCOM System Y2K Database (formerly maintained by CCI) with
         respect to the records that belong to the USSOCOM Thin Line Systems and
         the 33 USSOCOM-managed mission critical systems using the current
         database schema.

4.7.3.   USSOCOM Y2K Web Site.

4.8.     Systems Engineering Support

4.8.1.   Provide technical engineering analyses and systems architecture
         support.

4.8.2.   Provide Thin Line architecture support.

4.9.     Component Command Support. Continue to provide site managers and LNO
         support (up to a maximum of 11 personnel) to Component and Sub-Unified
         Commands.

4.9.1.   AFSOC: Four (4)

4.9.2.   USASOC: Three (3)

4.9.3.   NSWC: Three (3)

4.9.4.   JSOC: One (l)

<PAGE>   7

4.10.    CLOSE-OUT TASKS

4.10.1.  Archive Y2K-related products and testing information to CD and deliver
         to the Command Histonan.

4.10.2.  Turn in all GFP and GFD.

4.10.3.  Provide End of Mission Report.

4.11.    Deliverables will be in accordance with paragraph 3, as applicable.

5.       GOVERNMENT FURNISHED EQUIPMENT (GFE) AND FACILITIES

5.1.     The government will promptly furnish all connectivity, equipment,
         facilities, access and entree to all necessary DoD commands and
         supporting agencies necessary to accomplish the task. The contractor
         will obtain written authorization from a military Y2K Task Force
         representative prior to removing any GFE from a government facility.
         The contractor will coordinate with the requiring activity officer
         (RAG) or a designated representative to ensure all GFE is returned to
         the government prior to departure/termination of services.

5.2.     The government will promptly furnish all essential hardware, software,
         and data from previous Y2K contractors in order to accomplish the work
         in this SOW.

6.       TRAINING AND TRANSITION: For systems and processes to be transitioned
         between contractors, the government will ensure that the gaining
         contractor receives sufficient training and support during the
         transition period to hilly operate the systems/processes.

7.       PERIOD OF PERFORMANCE: The period of performance for this task is from
         30 September 1999 through 31 March 2000.

8.       ACCEPTANCE: Acceptance of this SOW will be made by the Y2K Contracting
         Officer's Representative (COR). All applicable deliveries will be
         provided by the contractor in accordance with the appropriate DoD
         documentation. The COR, in conjunction with the RAO. will evaluate the
         products and services for accuracy, completeness, sufficiency and
         compliance with acceptable specifications and standards referenced in
         applicable tasks.

9.       RELEASE OF INFORMATION: All technical data provide to the contractor by
         the government will be protected from public disclosure LAW the
         markings contained thereon and the limitation on release contained in
         the Federal Acquisition Regulation (FAR). Information related to the
         items delivered or the services performed under this Task Order will
         not be disclosed by any means without prior approval of the authorized
         representative of the Contracting Officer.

<PAGE>   8
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 4
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E027                   | 1999 SEP 23       | N65236-9264-8F17                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-027                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |068688|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS-SD OPLOC                                   |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     CODE FPV        .                               |      PAPERS WITH
    TAMPA, FL 33607                                    |     PO BOX 429100                                   |      CONTRACT OR
    M/F: N65236-99-A-7920/E027                         |     SAN DIEGO, CA 92142-9100           EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 97X4930.NH3S 000 77777 0 065236 2F 000000 B92648F17AAN                                                          $32,988.76
JOB ORDER: BMU93M9U52 (FD2060999970357/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $32,988.76
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   9

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E027                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

SPECIAL ENGINEERING SERVICES FOR 6000 LB CRANE LOADS ANALYSIS IN ACCORDANCE
WITH THE ATTACHED STATEMENT OF WORK

FIRM FIXED PRICE: $32,988.76

THE PERIOD OF PERFORMANCE IS 23 SEPTEMBER 1999 THROUGH 31 JANUARY 2000

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS HARVEY BERMAN, CODE 3OHB, TELEPHONE (843) 974-4083.

THIS IS A COMPLETION ORDER

<PAGE>   10

                                STATEMENT OF WORK
                          SPECIAL ENGINEERING SERVICES
                        FOR 6000-LB CRANE LOADS ANALYSIS

                  I. SCOPE

                  This effort involves determining stresses in a portable crane
                  interface plate by strain gaging one of the production units
                  to determine what conditions cause the deformation to occur,
                  and make recommendations as to possible changes in design or
                  operation.

                  2. BACKGROUND

                  WR-ALC/LE has received 6000-pound capacity cranes from the
                  manufacturer. Usage of these cranes by various users has
                  resulted in the deformation of an interface plate on the
                  crane. Previous testing of a first article unit did not
                  indicate the presence of stresses high enough to cause
                  yielding of this interface plate. WR-ALC/LE requires strain
                  gaging of a production unit, considering all possible modes
                  of operation which might cause the deformation of the
                  interface plate.

                  3. GOVERNMENT FURNISHED MATERIAL

                  The Government will furnish to the contractor the following
                  information/equipment to be used for this task:

                           o   Report STR-97-01, "Test Report to Determine
                               Stresses in 6000-pound capacity Crane Interface
                               Plate"

                           o   Report AT-95-38, "Structural Substantiation of
                               Portable Hoist"

                           o   Access to a production 6000-lb portable crane
                               (NSN 3950-01-394-1256) at WR-ALC which is to be
                               tested with strain gages

                  4. REQUIREMENTS

                  The Contractor shall perform specialized engineering services
                  to investigate the stresses in the interface plate in the
                  6000-pound portable crane (NSN 3950-01-394-1256) for the
                  Support Equipment and Vehicles Management Directorate
                  (WR-ALC/LE) in accordance with the following approach.
                  Changes, substitutions, deletions, revisions, etc., shall not
                  be made without prior approval of the Government technical
                  point of contact.

                           o   The Contractor shall develop a test plan which
                               describes the planned strain gaging/testing of
                               the 6000-lb crane at WR-ALC. This plan will be
                               reviewed by WR-ALC/LECF prior to execution.

                           o   The Contractor shall test the crane in accordance
                               with the test plan. Any necessary changes to the
                               test procedure shall be documented

                           o   The Contractor shall prepare a test report to
                               document results of the test, as well as
                               recommendations as to possible design and/or
                               operation changes to eliminate interface plate
                               deformations.

<PAGE>   11

                  4.1. EXCHANGE OF INFORMATION AND RESOURCES. This project is
                  unclassified and the Government may place the final technical
                  data and reports in the public domain. However, the Contractor
                  shall not release any information pertaining to this project
                  nor present interim results to any parties outside WR-ALC/LE
                  without first obtaining permission from the Government
                  technical point of contact through the Procuring Contracting
                  Officer (PCO). No data developed in part or in whole by
                  resources obtained from this project shall be used on any
                  other contract or task without obtaining written permission
                  from WR-ALC/JLE through the PCO.

                  4.2. RESTRICTION ON DEVELOPMENT OR USE OF PROPRIETARY
                  MATERIAL. The Contractor shall not develop or use any
                  contractor-proprietary software, firmware, hardware, drawings,
                  or data in performance of the actions required by this task.
                  Any hardware, firmware, or software purchased or developed
                  internally to contribute to the completion of this task shall
                  become the property of the Government, and shall be documented
                  and delivered to the procuring agency within ten (10) days of
                  a specific written request from the PCO.

                  5.  GOVERNMENT POINTS OF CONTACT

                  Don Waddell, Project Engineer, WR-ALC/LECF, 225 Ocmulgee Ct.,
                  Robins AFB, GA 31098-1647, (912) 926-6488 ext. 137,
                  donald.waddell@robins.af.mil and Stephen Gibbs, Project
                  Engineer, WR-ALC/LECF, 225 Ocmulgee Ct., Robins AFB, GA
                  31098-1647, (912) 926-6488 ext. 136,
                  stephen.gibbs(@)robins.af.mil.

                  6. TRAVEL

                  The Contractor shall be responsible for any travel incurred to
                  successfully complete this effort.

                  These visits shall be coordinated through the Government
                  Points of Contact.

                  7. SCHEDULE

                  The Contractor shall complete this effort no later than
                  one-hundred twenty (120) days after contract award.

                  8 DELIVERABLES

                  The Contractor shall provide the following in the Contractor's
                  own format.

                           o    Test Report -- The report shall provide the
                                results of the stress survey and provide
                                recommendations for the Support Equipment &
                                Vehicles Management Directorate with respect to
                                design improvements and/or crane operation to
                                eliminate plate deformation. Two paper copies of
                                the report shall be provided along with an
                                electronic copy compatible with Word 6.0.
<PAGE>   12
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 5
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E026                   | 1999 SEP 17       | N65236-9252-8F18                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-026                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |068688|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS-SD OPLOC                                   |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     CODE FPV                                        |      PAPERS WITH
    TAMPA, FL 33607                                    |     PO BOX 429100                                   |      CONTRACT OR
    M/F: N65236-99-A-7920/E026                         |     SAN DIEGO, CA 92142-9100           EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 97X4930.NH3S 000 77777 0 065236 2F 000000 B92528F18AAN                                                         $123,000.00
JOB ORDER: BMU93P9T47 (W801TU990M04926)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $123,000.00
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   13
CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E026                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR. MATERIAL AND TRAVEL TO PROVIDE TECHNICAL SUPPORT TO PM-CISS UHF PACKAGE
DESIGN AND IMPLEMENTATION IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK

FIRM FIXED PRICE: $123,000.00

THE PERIOD OF PERFORMANCE IS 17 SEPTEMBER 1999 THROUGH 30 NOVEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS HARVEY BERMAN, CODE 30HB, TELEPHONE (843) 974-4083.

THIS IS A COMPLETION ORDER

<PAGE>   14

                                STATEMENT OF WORK
                                     PM-CISS
                                   UHF PACKAGE
                            DESIGN AND IMPLEMENTATION

 1. BACKGROUND

 The PM-CISS has a requirement to connect multiple users and sites to a
 Headquarters Local Area Network (LAN). This connectivity entails the Local Area
 and Wide Area Hardware, Software, Communications Links and the appropriate
 procedures to ensure seamless interoperability.

 2.  SCOPE/OBJECTIVE

 The purpose of this Statement of Work (SOW) is to provide for

         a.   Engineering to determine the method of packaging remote Site
              rack-mounted UHF communications suites.

         b.   Integration of Government Furnished Equipment and custom
              engineered equipment for the remote site suite of UHF
              communications equipment.

         c.   Training on the setup and utilization of all remote site
              equipment in conjunction with, and culminating in, system
              accreditation.

 3.  REQUIREMENTS/TASKS TO BE PERFORMED

 TeleCommunications System shall perform:

         a.  A design of seven (7) remote site suites of UHF equipment. The
             remote site suite shall contain the following:

             1.   (3) LST-5E UHF radios with LSAD 100 power supplies (GFE)

             2.   (2) VDC-200 Data Controllers (GFE)

             3.   (2) KY-57 Crypto Units (GFE)

             4.   (1) Mega Pack AC/DC Power Converters (GFE)

             5.   (1) UPS sized according to total power requirements
                  (TCS provided)

             6.   (1) Power Strip (GFE)

             7.   (2) SKB Transport Cases (TCS provided)

 The design of the remote site suite of equipment shall provide for:

 o Simultaneous, independent operation of two LST-5E radios

 o The ability to monitor (2) radio transmissions using an external speaker

 o The ability to power all Internet equipment from the Mega Pack

 o All equipment shall be configured in such a way as to provide minimal, if
   any, user intervention to accomplish these tasks.

<PAGE>   15

          b.  A design of two (2) remote site suites of UHF equipment with
              re-transmission capability. The remote site suite shall contain:

              1. (3) LST-5E UHF radios with LSAD 100 power supplies (GFE)

              2. (2) VDC-200 Data Controllers (GFE)

              3. (2) KY-57 Crypto Units (GFE)

              4. (1) Mega Pack AC/DC Power Converter (GFE)

              5. (1) UPS sized according to total power requirements
                 (TCS provided)

              6. (1) Laptop Computer (TCS provided)

              7. (1) Power Strip (GFE)

              8. (2) SKB Transport Cases (TCS provided)

  The design of the remote site suite of equipment shall provide for:

  o Simultaneous, independent operation of two LST-5E radios

  o The ability to monitor (2) radio transmissions using an external speaker
    panel

  o The ability for re-transmission of a received signal

  o The ability to power all internal equipment from a Mega Pack

  o All equipment shall be configured in such a way as to provide minimal, if
    any, user intervention to accomplish these tasks.

          c.   Upon acceptance, TeleCommunications Systems shall configure and
               deliver the equipment to PM-CISS headquarters, train users on the
               setup and operation procedures and be available for additional
               assistance during the accreditation process.

          d.   TeleCommunications Systems shall provide nine (9) total
               configured suites of equipment to PM-CISS for deployment.

  4.  DELIVERABLES

          a.   The Implementation Plan. This plan will be created using
               Microsoft Project. It will provide a timeline for the
               procurement, installation and integration of all equipment
               associated with this project.

          b.   Engineering Design for the UHF and UHF with Re-transmission
               Package. This report will graphically and narratively detail:

               1.   Equipment Components

               2.   Equipment Connectivity

          c.   A UHF Package Operations Manual. This manual will detail the
               setup and installation of the UHF suite of equipment

          d.   A UHF with Re-Transmission Package Operations Manual. This manual
               will detail the setup and installation of the UHF with
               Re-Transmission suite of equipment.

<PAGE>   16

          e.   Test and Acceptance Plan. This plan will provide for a thorough
               test of all components of each system. Testing will be
               accomplished with TeleCommunications Systems and Government
               personnel.

          f.   Budget. This budget will delineate all costs for labor, travel
               and equipment associated with this project.

 5.   SECURITY.

 All TeleCommunications Systems personnel shall possess a TS clearance. A list
 of all personnel associated with this project shall be submitted to PM-CISS
 for acceptance prior to commencement of work.

<PAGE>   17
<TABLE>
<S>                 <C>           <C>                                 <C>                        <C>      <C>           <C>
-----------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                    | 1. CONTRACT NO. CODE   |   PAGE    OF PAGE
                                                                      |                        |    1         1
-----------------------------------------------------------------------------------------------------------------------------------
2. AMENDMENT/MODIFICATION NO.     |      3. EFFECTIVE DATE     |      4. REQUISITION/PURCHASE REQ. NO.    |  5. PROJECT NO.
01                                |      1999 SEP 08           |      N65236-9238-8F17                    |
-----------------------------------------------------------------------------------------------------------------------------------
4. ISSUED BY        CODE          |      N65236                |      7. ADMINISTERED BY (If other that Item 6)     CODE |
                                  -----------------------------|                                                         ----------
SPACE AND NAVAL WARFARE SYSTEMS CENTER                         |
P.O. BOX 190022                                                |
NORTH CHARLESTON, SC 29419-9022                                |      SAME AS BLOCK 6
POC: NANCY GARTNER    CODE: 1113NG                             |
EMAIL: gartner@spawar.navy.mil                                 |
TELEPHONE: (843) 974-5921                                      |
-----------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No, Street, County, State and ZIP code)         | (X) | 9A. AMENDMENT OF SOLICITATION NO.
                                                                                   |-----|
           TELECOMMUNICATION SYSTEMS, INC.                                         | [ ] |
           275 WEST STREET                                                         |     |-----------------------------------------
           SUITE 400                                                               |     | 9B. DATED (SEE ITEM 11)
           ANNAPOLIS, MD 21401                                                     |     |
                                                                                   ------------------------------------------------
                                                                                   |     | 10A. MODIFICATION OF CONTRACT/ORDER
                                                                                   |     |      NO.
                                                                                   | [X] | N65236-99-A-7920/EO25
                                                                                   |     | -----------------------------------------
                                                                                   |     | 10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------|     |
CODE                   OHAL7              | FACILITY CODE                          |     | 1999 AUG 27
-----------------------------------------------------------------------------------------------------------------------------------
                                    11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ]  The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods: (a) By completing Items 11 and 15, and returning copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (a) by separate letter or telegram which includes a reference in the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an
offer already submitted, such change may be made by telegram or letter, provided such telegram or letter makes reference to the
submission and this amendment, and is received prior to the opening hour and date specified.

-----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)                             NO CHANGE

-----------------------------------------------------------------------------------------------------------------------------------
                         13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                             IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
-----------------------------------------------------------------------------------------------------------------------------------
(X)  |  A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGE SET FORTH IN ITEM 14 ARE MADE IN THE
     |  CONTRACT/ORDER NO. IN ITEM 10A.
-----|
 [ ] |
-----------------------------------------------------------------------------------------------------------------------------------
 [ ] |  B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATION CHANGES (such as changes in paying office,
     |     appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)
-----------------------------------------------------------------------------------------------------------------------------------
 [X] |  C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
     |  MUTUAL AGREEMENT OF THE PARTIES
-----------------------------------------------------------------------------------------------------------------------------------
 [ ] |  D. OTHER (Specify types of modifications and authority)
     |
-----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor     [ ] is not,   [X] is required to sign this document and return ORIGINAL copies to the issuing office.
-----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

    THE PERIOD OF PERFORMANCE IS HEREBY CHANGED FROM 30 SEP 1999 TO 31 DEC 1999.

    AS A RESULT OF THE ABOVE, THE TOTAL NOT TO EXCEED AMOUNT OF THE DELIVERY ORDER REMAINS UNCHANGED.

    Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A as heretofore changed,
remains unchanged and is full force and effect.
-----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER  (Type or print)                    |  16. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
                                                                  |
JEFFREY C. JOCKEL, CONTRACTS MANAGER                              |  NANCY GARTNER
-----------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                       | 15C. DATE SIGNED  |  16B. UNITED STATES OF AMERICA            | INC. DATE SIGNED
                                              |                   |  BY                                       |
/s/ Jeffrey C. Jockel                         |    8 SEP 99       |  /s/ Nancy Gartner                        |
----------------------------------------------|                   |-------------------------------------------| 99 SEP 09
(Signature of person authorized to sign)      |                   | (Signature of Contracting Officer)        |
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                      STANDARD FORM 30 (REV. 10-83)
</TABLE>

<PAGE>   18
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 4
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E025                   | 1999 AUG 27       | N65236-9238-8F17                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-025                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |      |
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS ST LOUIS                                   |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     ATTN: DFAS-SL-FPV                               |      PAPERS WITH
    TAMPA, FL 33607                                    |     PO BOX 200009, BLDG 110                         |      CONTRACT OR
    M/F: N65236-99-A-7920/E025                         |     ST LOUIS, MO 63120-0009            EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 219035 62 7510 52122930 252G S28043 MIPR9ESPARC004                                                              $59,726.40
JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $59,726.40
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   19

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E025                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES AND MATERIAL FOR JOTC C41 SYSTEMS ANALYST IN ACCORDANCE WITH THE
ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $59,726.40

THE PERIOD OF PERFORMANCE IS 27 AUGUST 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS HARVEY BERMAN, CODE 3OHB, TELEPHONE (843) 974-4083.

THIS IS A COMPLETION ORDER

<PAGE>   20
N65236-99-A-7920/E025                                                PAGE 3 OF 4

                                STATEMENT OF WORK
                            JOTC C41 SYSTEMS ANALYST

1. BACKGROUND: The Joint Operations Technology Center (JOTC) oversees a myriad
of network projects to include component integration into deployable systems and
garrison systems, Y2K testing, systems engineering, and various other
engineering tasks for Department of Defense organizations.

2. SCOPE/OBJECTIVE: The purpose of this Statement of Work (SOW) is to provide a
Systems Analyst to ensure successful technical oversight on JOTC projects with
the Joint Communication Support Element (JCSE), the United States Central
Command (USCENTCOM), and the United States Special Operations Command
(USSOCOM).

3. REQUIREMENTS: The Systems analyst shall provide technical and programmatic
assistance to the Space and Naval Warfare (SPAWAR) System Center, Charleston,
JOTC, Tampa, Florida. This position requires the identification and analysis of
technology projects that directly support Command, Control, Communications,
Computers and intelligence (C41) for the JCSE, USCENTCOM and USSOCOM. As a
Systems Analyst, duties shall include:

a. Project analysis (budgeting/SOW review, indoctrination, staffing, time-
   lines).
b. Project performance (In-progress reviews, budget and schedule, quality
   assurance).
c. Project close-out (Deliverable completion, as-built documentation
   submission).
d. Y2K project compliance support to the JCSE, USCENTCOM and USSOCOM.

4. SUPPLEMENTAL:

a. Due to the criticality of communications between the JOTC and this Systems
   Analyst, the contractor is required to have a cellular phone and a pager at
   all times.
b. The sensitive issues and systems associated with this position requires the
   Systems Analyst to possess a Top Secret/SSBI clearance.
c. This Systems Analyst will be the primary liaison with the JCSE, USCENTCOM,
   and USSOCOM. In this capacity, the contractor shall act as a constant agent
   to articulate the capabilities of the JOTC Team.

5. KNOWLEDGE, SKILLS AND ABILITIES REQUIRED: The Systems Analyst will be rated
on possession of the necessary knowledge, skills and abilities required to
perform successfully in this position. Selective KSA factors are the following:

o  Provide services necessary to implement the design, acquisition, installation
   and operation of the following systems. Analyze and evaluate the
   maintainability and reliability of these systems and provide technical
   reports and advice.

          a. Mobile Subscriber Equipment/TriServices Tactical Communication
             Systems (MSE/TRITAC).
          b. Tactical Communications Long Haul Transmission (LHT) Systems
             (Multichannel TACSAT).
          c. Tactical Local Area Network/Wide Area Network Systems (TACLAN/WAN).
          d. Video Teleconferencing Systems (VTC).
          e. Joint Warfare Intelligence Communications Systems (JWICS).
          f. Multifunctional Secure Gateway Switch Systems (MSGS).
          g. Integrated Digital Network Exchange Systems (IDNX).
          h. New and replacement equipment and systems as acquired.

o  Demonstrate operation of special tools and test equipment.

o  Research, develop and publish project technical instructions and wiring
   diagrams.

<PAGE>   21

N65236-99-A-7920/E025                                                PAGE 4 OF 4

o  Communicate orally and in writing by providing briefings, instructional
   classes, and status reports to various echelons of senior and subordinate
   personnel, including co-workers, contractors and field deployed personnel.

o  Represent the JOTC at Army, Navy and Air Force Service level meetings for the
   development, design, testing, training, logistics and acquisition of new
   communications systems.

o  Evaluate system requirements and prepare technical specifications for
   incorporation of Commercial-Off-The-Shelf (COTS) products into tactical and
   fixed communications environments.

o  Provide technical risk assessments for C41 systems.

o  Provide services necessary to implement the acquisition, logistics,
   engineering and integration support associated with small computer systems
   and Automated Data Processing (ADP) equipment.

o  Provide annual inputs to the Program Objective Memorandum (POM) for DoD
   funding.

o  Interface with industry manufacturers to evaluate new products, technologies
   and assess new R&D efforts for applicability to operational objectives.

o  Provide on-site engineering, installation and acceptance testing as required
   during new systems integration.

o  Contract Officer Technical Representative certification is required.

o  Travel in the United States and overseas may be required up to 180 days per
   year.

<PAGE>   22
<TABLE>
<S>                 <C>           <C>                                 <C>                        <C>      <C>           <C>
-----------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                    | 1. CONTRACT NO. CODE   |   PAGE    OF PAGE
                                                                      |                        |    1         1
-----------------------------------------------------------------------------------------------------------------------------------
2. AMENDMENT/MODIFICATION NO.     |      3. EFFECTIVE DATE     |      4. REQUISITION/PURCHASE REQ. NO.    |  5. PROJECT NO.
01                                |      1999 SEP O8           |      N65236-9225-8F01                    |
-----------------------------------------------------------------------------------------------------------------------------------
4. ISSUED BY        CODE          |      N65236                |      7. ADMINISTERED BY (If other that Item 6)     CODE |
                                  -----------------------------|                                                         ----------
SPACE AND NAVAL WARFARE SYSTEMS CENTER                         |
P.O. BOX 190022                                                |
NORTH CHARLESTON, SC 29419-9022                                |      SAME AS BLOCK 6
POC: NANCY GARTNER    CODE: 1113NG                             |
EMAIL: gartner@spawar.navy.mil                                 |
TELEPHONE: (843) 974-5921                                      |
-----------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No, Street, County, State and ZIP code)         | (X) | 9A. AMENDMENT OF SOLICITATION NO.
                                                                                   |-----|
           TELECOMMUNICATION SYSTEMS, INC.                                         | [ ] |
           275 WEST STREET                                                         |     |-----------------------------------------
           SUITE 400                                                               |     | 9B. DATED (SEE ITEM 11)
           ANNAPOLIS, MD 21401                                                     |     |
                                                                                   ------------------------------------------------
                                                                                   |     | 10A. MODIFICATION OF CONTRACT/ORDER
                                                                                   |     |      NO.
                                                                                   | [X] | N65236-99-A-7920/EO24
                                                                                   |     | -----------------------------------------
                                                                                   |     | 10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------|     |
CODE                   OHAL7              | FACILITY CODE                          |     | 1999 AUG 25
-----------------------------------------------------------------------------------------------------------------------------------
                                    11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ]  The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods: (a) By completing Items 11 and 15, and returning copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (a) by separate letter or telegram which includes a reference in the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an
offer already submitted, such change may be made by telegram or letter, provided such telegram or letter makes reference to the
submission and this amendment, and is received prior to the opening hour and date specified.

-----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)                             NO CHANGE

-----------------------------------------------------------------------------------------------------------------------------------
                         13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                             IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
-----------------------------------------------------------------------------------------------------------------------------------
(X)  |  A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGE SET FORTH IN ITEM 14 ARE MADE IN THE
     |  CONTRACT/ORDER NO. IN ITEM 10A.
-----|
 [ ] |
-----------------------------------------------------------------------------------------------------------------------------------
 [ ] |  B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATION CHANGES (such as changes in paying office,
     |     appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)
-----------------------------------------------------------------------------------------------------------------------------------
 [X] |  C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
     |  MUTUAL AGREEMENT OF THE PARTIES
-----------------------------------------------------------------------------------------------------------------------------------
 [ ] |  D. OTHER (Specify types of modifications and authority)
     |
-----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor     [ ] is not,   [X] is required to sign this document and return ORIGINAL copies to the issuing office.
-----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
    feasible.)

    THE PERIOD OF PERFORMANCE IS HEREBY CHANGED FROM 30 SEP 1999 TO 31 DEC 1999.

    AS A RESULT OF THE ABOVE, THE TOTAL NOT TO EXCEED AMOUNT OF THE DELIVERY ORDER REMAINS UNCHANGED.

    Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A as heretofore changed,
remains unchanged and is full force and effect.
-----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER  (Type or print)                    |  16. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
                                                                  |
JEFFREY C. JOCKEL, CONTRACTS MANAGER                              |  NANCY GARTNER
-----------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                       | 15C. DATE SIGNED  |  16B. UNITED STATES OF AMERICA            | INC. DATE SIGNED
                                              |                   |  BY                                       |
/s/ Jeffrey C. Jockel                         |    8 SEP 99       |  /s/ Nancy Gartner                        |
----------------------------------------------|                   |-------------------------------------------| 99 SEP 09
(Signature of person authorized to sign)      |                   | (Signature of Contracting Officer)        |
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                      STANDARD FORM 30 (REV. 10-83)
</TABLE>

<PAGE>   23
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 3
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E024                   | 1999 AUG 25       | N65236-9225-8F01                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-024                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |      |
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS-SL-AOD                                     |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     4300 GOODFELLOW BLVD., BLDG. 110                |      PAPERS WITH
    TAMPA, FL 33607                                    |     PO BOX 2000009                                  |      CONTRACT OR
    M/F: N65236-99-A-7920/E024                         |     ST LOUIS, MO 63120-0009            EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 2192035 62 7510 52122930 252G S28043 MIPR9ESPARC004                                                              $5,327.48
JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       |  $5,327.48
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   24

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E024                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES AND MATERIAL FOR CISCO UPGRADE IN ACCORDANCE WITH THE ATTACHED
STATEMENT OF WORK.

FIRM FIXED PRICE: $5,327.48

THE PERIOD OF PERFORMANCE IS 25 AUGUST 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS HARVEY BERMAN, CODE 30HB, TELEPHONE (843) 974-4083.

THIS IS A COMPLETION ORDER

<PAGE>   25
N65236-99-A-7920/E024                                                PAGE 3 OF 3

                                STATEMENT OF WORK
                         LABOR FOR INSTALLING MEMORY AND
                SOFTWARE REVISION UPGRADES FOR JCSE CISCO ROUTERS

1.   SCOPE. Statement of Work (SOW) defines the labor estimates to upgrading the
     DRAM and flash memory cards in all JCSE contracted CISCO routers. These
     cards, which increase the memory in the routers, must be installed in order
     to perform downloading and installation of software revision 12.0.4 for
     maximum power performance. The Smartnet maintenance contracts, already in
     place with Cisco for the JCSE, allow the software to load the function. The
     direct cost of the labor was not included in the previous SOW defining the
     needs and requirements to procure the memory cards.

2.   BACKGROUND. Joint Communications Support Element (JCSE) is tasked by the
     Joint Chief of Staff (JCS) to support in deployed JTF and JSOTF
     headquarters with a maintenance and technical team during both real world
     and deployment exercises. The JCSE is capable of deploying anywhere is the
     world within hours of notification and is responsible for providing
     communications support to Commanders, Joint Task Forces and/or Joint
     Special Operations Task Forces Headquarters. JCSE is equipped with state of
     the art equipment and highly specialized personnel, giving this unit the
     capability to maintain a high state of readiness.

3.   REQUIREMENTS. SPAWARSYSCEN CHASN-JOTC shall ensure that the JCSE routers
     are upgraded and standardized to their maximum allowable performance level.
     3.1  SPAWARSYSCEN CHASN-JOTC shall do install the memory cards in the
          routers and replace them with the new expanded memory cards.
     3.2  SPAWARSYSCEN CHASN-JOTC and user section operators of the JCSE
          Squadrons, the 290th JCSS, and JNOC shall jointly participate in
          downloading the latest software version of IOS.

4.   TESTING SPAWARSYSCEN CHASN-JOTC and the user sections noted in paragraph
     3.3 above will be responsible for inspection and testing of the upgraded
     Routers.

5.   LOGISTICS SUPPORT: N/A

6.   GOVERNMENT FURNISHED EQUIPMENT (GFE). The user noted in paragraph 2.3 above
     shall provide any and all equipment that may be needed for testing the
     routers once they are loaded with the revised software. The memory cards
     will be in the possession of the JCSE and issued to the installer.

7.   DELIVERY. The estimated completion date is no later than 30 September 1999.
     The actual completion date is dependent on the arrival and installation of
     the memory cards. Also, availability of the routers may be a factor if
     systems are currently deployed. SPAWARSYSCEN CHASN-JOTC is not responsible
     for the procurement and delivery or delay of GFE.

<PAGE>   26
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 3
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E023                   | 1999 JUL 27       | N65236-9207-8F23                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-023                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |068688|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS-SD OPLOC                                   |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     CODE FPV                                        |      PAPERS WITH
    TAMPA, FL 33607                                    |     PO BOX 429100                                   |      CONTRACT OR
    M/F: N65236-99-A-7920/E023                         |     SAN DIEGO, CA 92142-9100           EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 97X4930.NH3S 000 77777 0 065236 2F 000000 B92078F23AAN                                                          $11,818.99
JOB ORDER: BSG93M9M45 (W45VAA99HB01034)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $11,818.99
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   27
N65236-99-A-7920/E023                                                PAGE 3 OF 3

                                STATEMENT OF WORK
        Technical Support to USASOC for USSOCOM Y2K Operations Evaluation

1. SCOPE. This Statement of Work (SOW) defines the requirement pertaining to
the Technical support requirement to United States Army Special Operations
Command (USASOC) during the United States Special Operations Command (USSOCOM)
Y2K operation evaluation (Op Eval).

2. BACKGROUND. In compliance with DOD directives USSOCOM is performing Y2K Op
Eval on communications equipment within a normal Joint Special Operations Task
Force (JSOTF) communications infrastructure.

3. REQUIREMENTS: SPAWAR System Center Charleston-JOTC shall provide technical
support to Y2K evaluators as it pertains to the Message Gateway System (MGS).

   3.1. A technical support representative (TechRep) will arrive in Norfolk,
VA, 26 July 1999.

   3.2. The TechRep will be available to USSOCOM Y2K evaluators upon arrival
through 20 August 1999, or until test is terminated by USSOCOM.

   3.3. The TechRep while knowledgeable in all aspects of tactical
communications and JSOTF support is on-site primarily for support on the Message
Gateway System.

   3.4. The TechRep while flexible will only provide assistance in other areas
as time permits.

   3.5. No documentation is required from the TechRep as to test results and Y2K
compliance.

4. LOGISTICS SUPPORT: N/A

S. GOVERNMENT FURNISHED EQUIPMENT (GFE): N/A

6. PERIOD OF PERFORMANCE: 27 July 1999 through 20 August 1999.

<PAGE>   28
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 4
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E022                   | 1999 JUN 17       | N65236-9167-8F24                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-022                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |503000|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS DY AOG                                     |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     1050 FORRER BLVD                                |      PAPERS WITH
    TAMPA, FL 33607                                    |     DAYTON, OH 45420-1472                           |      CONTRACT OR
    M/F: N65236-99-A-7920/E022                         |                                        EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 5793400 309 47E8 8V700A 040000 58301 000000 503000 F0330L                                                       $11,265.60
JOB ORDER: B8993X9K43 (FD2060999971030/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $11,265.60
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   29

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E022                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                   SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO DEVELOP THE PROCEDURES AND DOCUMENTATION FOR THE
REMOVAL, REPLACEMENT, AND INITIAL CHECKOUT OF A NEW COMPRESSOR ASSEMBLY FOR THE
TYPE MC-2A DIESEL AIR COMPRESSOR IN ACCORDANCE WITH THE ATTACHED STATEMENT OF
WORK (SOW).

FIRM FIXED PRICE: $11,265.60

THE PERIOD OF PERFORMANCE IS 17 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E. TELEPHONE (843) 974-5364.

THIS IS A COMPLETION ORDER

<PAGE>   30

N65236-99-A-7920/E022                                                PAGE 3 OF 4

                             STATEMENT OF OBJECTIVES

                             PROCEDURAL DEVELOPMENT
                                       OF
                      AIR COMPRESSOR REMOVAL & REPLACEMENT

1.0 SCOPE: This Statement of Objectives (SOO) defines the tasks necessary to
develop the procedures and documentation for the removal, replacement, and
initial checkout of a new compressor assembly for the Type MC-2A diesel air
compressor. The goal of this effort is to establish and validate the procedures
(or replacement of the air compressor assembly, certify the accuracy of the
task, and provide the procedures and illustrations. This sustaining engineering
task is required to ensure that MC-2A air compressor can be properly maintained
in order to meet mission requirements.

1.1 TITLE: Removal and Replacement for MC-2A AIR Compressor Assembly, NSN
4310-01-370-6351.

1.2 BACKGROUND: The MC-2A air compressor technical order does not include
instructions necessary to remove and replace the air compressor assembly. To
ensure that components are not damaged and personnel are not injured during the
procedure, step-by-step instructions are required. The purpose of this project
is to establish those step-by-step procedures, validate them, and provide the
instructions and illustrations necessary to safely complete the task.

2.0 REFERENCE DOCUMENTS:

TO 34Y1-87-71, Compressor, Air, Diesel Engine Drive; 2 Wheel Trailer Mounted, 15
CFM, 200 PSI, Type MC-2A, Model 7MC-2A, Part No. 86290-1, NSN 4310-01-370-6351

3.0 REQUIREMENTS: The contractor shall perform the following requirements for
this sustaining engineering task.

    a. Develop the removal and replacement procedures to safely remove the air
       compressor assembly.

    b. Validate the procedures using a independent evaluator.

    c. Provide the instructions and illustrations suitable for conversion into
       tech order format.

    d. Provide a documentation to certify correctness of critical installation
       procedures, i.e. torque values.

<PAGE>   31
N65236-99-A-7920/E022                                                PAGE 4 OF 4

4.0 DELIVERABLES: The contractor shall deliver to the government the following
items during the course of this task.

    a. Complete set of instructions and illustrations in the format specified by
       the government.

    b. Certification documentation for critical procedures.

    c.

    d. Final report including as a minimum, any particular problems,
       recommendations for parts replacement, number of hours to complete the
       task, recommendations on required tools and equipment, and
       recommendations on skill level and number of personnel required.

5.0 POINTS OF CONTACTS:

The following shall serve as the technical point of contact (POC):

                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488, ext.

6.0 PERIOD OF PERFORMANCE

The period of performance for this project is estimated two months.
<PAGE>   32
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 4
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E021                   | 1999 JUN 17       | N65236-9167-8F21                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-021                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       | TATONKA ACCTING TAMPA                              |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |503000|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS DY AOG                                     |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     1050 FORRER BLVD                                |      PAPERS WITH
    TAMPA, FL 33607                                    |     DAYTON, OH 45420-1472                           |      CONTRACT OR
    M/F: N65236-99-A-7920/E021                         |                                        EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 5793400 309 47E8 8V700A 040000 58301 000000 503000 F0330L                                                       $17,754.24
JOB ORDER: B8993X9H40 (FD2060999970291/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $17,754.24
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   33

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E021                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO DESIGN, PROTOTYPE, AND EVALUATE A FUEL FILTER
SYSTEM FOR THE 1200 GALLON FUEL SERVICING TANK TRUCKS, MODEL 260T1200 IN
ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK (SOW).

FIRM FIXED PRICE: $17,754.24

THE PERIOD OF PERFORMANCE IS 17 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

THIS IS A COMPLETION ORDER
<PAGE>   34
                                                                     PAGE 3 OF 4

                            STATEMENT OF OBJECTIVES

                  ENGINEERING STUDY AND PROTOTYPE INSTALLATION
                                       OF
                FUEL FILTER SYSTEM FOR THE FUEL SERVICING TRUCK

1.0 SCOPE: This Statement of Objectives (SOO) defines the tasks necessary to
design, prototype, and evaluate a fuel filter system for the 1200 gallon fuel
servicing tank trucks, Models 260T1200. The goal of this effort is to develop a
similar type fuel filtration kit to that being tested on the Model 154T1200
trucks, prototype the installation on one of the Model 260T1200 vehicles,
develop an engineering data package suitable for open procurement, and develop
field level instructions for vehicle modification. This sustaining engineering
task is required to ensure that this vehicle is properly equipped to meet
mission requirements.

1.1 TITLE: Engineering Study and Prototype Installation of Fuel Filter for 1200
Gallon Fuel Servicing Trucks, NSN 2320-01-314-2912.

1.2 BACKGROUND: Fuel becomes easily contaminated during storage and
transportation. Preventing problems, and equipment damage associated with
contaminated fuel is best accomplished just prior to its use. The fuel filters
on vehicles have minimal capacity to clean the fuel. Therefore, it is important
the fuel be as clean as possible when delivered to the vehicle. There are two
primary 1200-gallon gasoline fuel-servicing trucks used in the Air Force, Model
154T1200 and 260T1200. Both trucks are manufactured by Isometrics, Inc. in
Reidsville, North Carolina. These fuel-servicing trucks currently are not
equipped with small particulate and water filtering systems. Both trucks are
equipped with fuel strainers. These strainers primarily consist of a 40 to 100
wire mesh to trap particulate material. The use of fuel filters while
dispensing fuel into the vehicle or engine fuel tank is the best means of
removing water and particulate contaminants. The purpose of this project is to
develop a fuel filtration system for the Model 260T1200 fuel servicing trucks,
modify one of the vehicles, and develop the modification instructions for field
level modifications of the rest of the fleet.

2.0 REFERENCE DOCUMENTS:

Operation, Maintenance, and Parts Manual for Model 260T1200 Truck

3.0 REQUIREMENTS: The contractor shall perform the following requirements for
this sustaining engineering task:

    a. Develop the interface requirements for the fuel filter system used on the
       prototype Model 154T1200 trucks.

    b. Provide a modification proposal for one of the vehicles for government
       approval.
<PAGE>   35
                                                                     PAGE 4 OF 4

    c. Install a prototype filter system on one of the vehicles to ensure
       compliance with all design specifications and operational requirements.
       Moody AFB is the target prototype base.

    d. Provide a technical data package suitable for competitive procurement for
       any newly fabricated components.

    e. Provide corrective action instructions in TCTO format suitable for field
       level installation of the filter system.

    f. Provide operational and maintenance instructions for the filter system
       components.

4.0 DELIVERIES: The contractor shall deliver to the government the following
items during the course of this task:

    a. Final report including, as a minimum, results of the prototype
       installation, any problems and/or issues that occurred during the course
       of the project, and any recommendations for future installations.

    b. A kit installation/procedures document including as a minimum,
       engineering drawings, recommended sources of supply for kit items,
       recommended installation procedures suitable for field level repair,
       number of hours to complete the task, recommendations on required tools
       and equipment, and recommendations on skill level and number of personnel
       required.

5.0 POINTS OF CONTACT:

The following shall serve as the technical point of contact (POC):

                               Vern Cox
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488, ext. 199

                               Gary Moyses
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488, ext. 198

6.0 PERIOD OF PERFORMANCE

The period of performance for this project is estimated 5 months.
<PAGE>   36
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 5
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E020                   | 1999 JUN 08       | N65236-9158-8F09                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-020                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       |                                                    |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |503000|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS DY AOG                                     |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     1050 FORRER BLVD                                |      PAPERS WITH
    TAMPA, FL 33607                                    |     DAYTON, OH 45420-1472                           |      CONTRACT OR
    M/F: N65236-99-A-7920/E020                         |                                        EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 5793400 309 47E8 8V700A 040000 58301 000000 503000 F0330L                                                       $12,734.50
JOB ORDER: BMU93X9832 (FD2060999970307/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $12,734.50
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   37

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E020                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO EVALUATE THE INSTALLATION AND OPERATION OF A
DIFFERENT AIR SYSTEM DRYER ON THE P-23 CFR TRUCK, NSN 4210-01-289-8987 IN
ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK (SOW).

FIRM FIXED PRICE: $12,734.50

THE PERIOD OF PERFORMANCE IS 08 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

<PAGE>   38
                                                                     PAGE 3 OF 5

                               STATEMENT OF WORK

                        ENGINEERING ANALYSIS AND STUDIES
                                       OF
                    P-23 CFR TRUCK AIR SYSTEM DRYER RETROFIT

1.0 SCOPE: This Statement of Work (SOW) defines the tasks necessary to evaluate
the installation and operation of a different air system dryer on the P-23 CFR
truck, NSN 4210-01-289-8987. The P-23 CFR truck is a primary emergency support
vehicle used to support crash, fire suppression, and rescue operations. If the
air system dryer is ineffective, numerous corrosion and air system blockages may
occur which may affect the vehicle's air system components. Numerous systems on
the P-23 depend on compressed air, i.e., brake system, water pressure regulating
system, tire inflation system, etc. The goal of this effort is to retrofit a
P-23 with a commercial air dryer system, evaluate the integration requirements
of the selected dryer, and evaluate the operation and performance of the dryer
relative to P-23 operations. This effort also includes retrofit procedures for
the dryer installation. The selection of the replacement dryer is based on the
results of TCS report, P-23 Air Compressor Failure Analysis, dated 30 May 1998.

1.1 TITLE: Retrofit Procedures and Performance Analysis of a New Air Dryer on
the DOD P-23 CFR Truck, NSN 4210-01-289-8987.

1.2 BACKGROUND: The P-23 CFR Truck is a competitively acquired vehicle that is
the primary aircraft crash fire suppression vehicle for the USAF. This
sustaining engineering task is required to ensure that this vehicle can
continue to meet all of its mission requirements. The current air drying system
utilizes a coalescing filter to remove moisture in the compressed air coming
from the air compressor. The air dryer is a key component of the operation of
the vehicle. The presence of moisture in the air system is the main cause of
system failure and component corrosion. Numerous systems on the vehicle depend
on compressed air, including the brake system. An engineering study was
conducted by TCS to determine the cause of numerous failures of the P-23 air
compressors. One of the conclusions was that the current compressor is
operating at maximum performance in order to meet vehicle demand on operating
specifications. As a result, the air coming from the air compressor is in a
heated state making it more difficult for the coalescing filter to remove the
moisture in the air. The P-23 represents a greater challenge than the typical
highway truck air system. The trucks are typically operated for several hours
at a time, allowing the air system to be purged of any residual moisture. The
P-23 typically operates for very short periods. In addition, the P-23 tire
inflation system has a tendency to collect moisture, which causes corrosion
problems and leaks in the system. One of the recommendations of that study was
to replace or complement the current air dryer system with one that is more
effective under the P-23's operating conditions. There were suggested
replacement air dryers. This study will recommend one of the recommended dryers.
The recommendation will be based on cost, reliability, ease of installation,
ability to meet vehicle demands, and ease of maintenance. An implementation plan
shall be proposed to include a list of materials and procedures for the
installation of the new dryer. With government approval, an air dryer will be
purchased and installed on a government selected P-23. The goal of this task is
to provide the P-23 with a reliable and low maintenance air dryer that is
effective for P-23 normal operations.
<PAGE>   39
                                                                     PAGE 4 OF 5

2.0 REFERENCE DOCUMENTS:

T.O. 36A12-17-11
T.O. 36A12-17-12
T.O. 36A12-17-14

3.0 REQUIREMENTS: The contractor shall perform the following sustaining
engineering task.

    a. Develop recommendation on replacement air dryer for the P-23 based on TCS
       report, P-23 Air Compressor Failure Analysis, dated 30 May 1998. Rational
       and all data used to develop the recommendation will be provided to the
       government.

    b. With government concurrence on the selected dryer, develop a recommended
       retrofit plan.

    c. Purchase and install a prototype dryer system on a government selected
       P-23 to ensure compliance with all design specifications and operational
       requirements. Moody AFB is the target prototype basis.

    d. Provide a technical data package suitable for competitive procurement for
       any newly fabricated components.

    e. Provide installation instructions in TCTO format suitable for field level
       installation of the dryer system.

    f. Provide operational and maintenance instructions and illustrated parts
       breakdown for the dryer system.

4.0 DELIVERABLES: The contractor shall deliver to the government the following
items during the course of this task:

    a. Monthly Status Reports.

    b. Final report including, as a minimum, results of the prototype
       installation, any problems and/or issues that occurred during the course
       of the project, and any recommendations for future installations.

    c. A kit installation/procedures document including as a minimum,
       engineering drawings, recommended sources of supply for kit items,
       recommended installation procedures suitable for field level repair,
       number of hours to complete the task, recommendations on required tools
       and equipment, and recommendations on skill level and number of personnel
       required.
<PAGE>   40
                                                                     PAGE 5 OF 5

5.0 POINTS OF CONTACT:

The following shall serve as the technical Points of Contact (POCs):

                               Steven Davis
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488, ext. 194

                               Mary Zampa
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488, ext. 195

6.0 PERIOD OF PERFORMANCE

The period of performance for this project is estimated 5 months.
<PAGE>   41
<TABLE>
<S>                                                   <C>
====================================================================================================================================
                    ORDER FOR SUPPLIES OR SERVICES                              |        Form Approved OMB       |   PAGE 1 of 4
                                                                                |          No. 0704-0187         |------------------
                                                                                |                                | 5. CERTIFIED FOR
                                                                                |      Expires Jun. 30, 1997     | NATIONAL DEFENSE
==================================================================================================================
         Public reporting for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                            SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL INDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.  | 2. DELIVERY ORDER NO.  | 3. DATE OF ORDER  | 4. REQUISITION/PURCH REQUEST NO.  | UNDER DMS REG 1
GS-35F-4655H                 |                        |                   |                                   |
N65236-99-A-7920             | E019                   | 1999 JUN 08       | N65236-9158-8F10                  | DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                   CODE      |N65236      | 7. ADMINISTERED BY (If other than 6)  CODE  |      | 8. DELIVERY FOB
SPACE AND NAVAL WARFARE SYSTEMS CENTER   --------------                                             --------
P.O. BOX 190022                                       | SAME AS BLOCK 6                                    | [X] DEST
NORTH CHARLSETON, SC 29419-9022                       |                                                    |
POC: NANCY GARTNER   CODE: 1113NG                     | 2015-019                                           | [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                       |                                                    |
TELEPHONE: (843) 974-5921                             |                                                    | (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTED          CODE      |0HAL7  | FACILITY CODE  |       | 10. DELIVERY TO FOB POINT BY (Date)    | 11. MARK IF BUSINESS IS
                                 ---------                ---------                                        |
                                                                  | SEE SCHEDULE                           | [ ] SMALL
   Name     TELECOMMUNICATION SYSTEMS INC                         |----------------------------------------- [ ] SMALL DISADVANTAGE
   and      275 WEST STREET                                       | 12. DISCOUNT TERMS                     | [ ] WOMEN-OWNED
   Address  SUITE 400                                             | NET 30                                 |
            ANNAPOLIS, MD 21401                                   |-----------------------------------------------------------------
            TELEPHONE NO: (410) 280-1236                          | 13. MAIL INVOICES TO:
                                                                  |
                                                                  | SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO                     CODE      |            | 15. PAYMENT WILL BE MADE BY            CODE  |503000|
                                          --------------                                              --------       MARK ALL
    CYPRESS GROUP                                      |     DFAS DY AOG                                     |     PACKAGES AND
    5850A WEST CYPRESS STREET                          |     1050 FORRER BLVD                                |      PAPERS WITH
    TAMPA, FL 33607                                    |     DAYTON, OH 45420-1472                           |      CONTRACT OR
    M/F: N65236-99-A-7920/E019                         |                                        EFT: T       |      ORDER NUMBER
                                                       |                                                     |
------------------------------------------------------------------------------------------------------------------------------------
16.   | DELIVERY  | [X] | This delivery order is issued on another Government agency or in accordance with and subject to terms and
 TYPE |           |     | conditions above numbered contract.
  OF  |-----------------------------------------------------------------------------------------------------------------------------
ORDER | PURCHASE  | [ ] | Reference your          furnish the following in terms specified herein
      |           |     |-----------------------------------------------------------------------------------------------------------
      |           |     | ACCEPTANCE THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
      |           |     | PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
      |           |     | TO PERFORM THE SAME.
-------------------------

   _________________________        __________________________         __________________________        __________________________
      NAME OF CONTRACTOR                    SIGNATURE                     TYPED NAME AND TITLE                   DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies.
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE

ACR: AA 5793400 309 47E8 8V700A 040000 58301 000000 503000 F0330L                                                       $53,144.90
JOB ORDER: B8993X9D36 (FD2060999970309/AA)
====================================================================================================================================
18. ITEM NO.      | 19. SCHEDULE OF SUPPLIES/SERVICES  | 20. QUANTITY          | 21. UNIT   | 22. UNIT   | 23. AMOUNT
                  |                                    |     ORDERED/ACCEPTED* |            |     PRICE  |
------------------------------------------------------------------------------------------------------------------------------------
                  | SEND ORIGINAL & 2 COPIES OF        |                       |            |            |
                  | THE INVOICES  TO:                  |                       |            |            |
                  | SPAWARSYSCEN, CHARLESTON           |                       |            |            |
                  | ATTN: CODE 123 (FINANCE)           |                       |            |            |
                  | PO BOX 190022                      |                       |            |            |
                  | N. CHARLESTON, SC 29419-9022       |                       |            |            | NTE
====================================================================================================================================
* If quantity accepted by the Government     | 24. UNITED STATES OF AMERICA                          | 25. TOTAL       | $53,144.90
is same as quantity ordered indicate by X.   |                                                       |------------------------------
If different enter actual quantity accepted  |     /s/ NANCY GARTNER                                 | 29. DIFFERENCES |
below quantity ordered and encircle.         | BY: NANCY GARTNER      CONTRACT ORDERING OFFICER      |                 |------------
                                             |                                                       |                 |
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              | 27. SHIP NO. | 28. D.O. VOUCHER NO.| 30. INITIALS    |
                                                                |              |                     |                 |------------
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  | [ ] PARTIAL  |                     |                 |
                                 CONTRACT EXCEPT AS NOTED       | [ ] FINAL    |---------------------|-----------------|------------
                                                                |--------------| 32. PAID BY         | 33. AMOUNT VERIFIED CORRECT
________  ______________________________________________________| 31. PAYMENT  |                     |     FOR
 DATE      SIGNATURE OF AUTHORIZED GOVERNMENT                   | [ ] COMPLETE |                     |------------------------------
           REPRESENTATIVE                                       | [ ] PARTIAL  |                     | 34. CHECK NUMBER
----------------------------------------------------------------| [ ] FINAL    |                     |
36. I certify this account is correct and proper for payment    |                                    |
                                                                |              |                     |-----------------------------
________  ______________________________________________________|              |                     | 35. BILL OF LADING NO.
 DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICIAL           |              |                     |
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT | 38. RECEIVED BY  | 39. DATE RECEIVED  | 40. TOTAL CONTAINERS | 41. S/R ACCOUNT     | 42. S/R VOUCHER NO.
                |                  |                    |                      | NUMBER              |
====================================================================================================================================
DD FORM 1155. JUN 94
</TABLE>
<PAGE>   42

CONTINUATION SHEET       REFERENCE NO. OF DOCUMENT BEING CONTINUED      PAGE
                         N65236-99-A-7920/E019                           2

NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO INVESTIGATE THE STABILITY CHARACTERISTICS OF
VEHICLES USED WITHIN THE AIR FORCES FLEET OF WATER TANKERS AND FIRE TRUCKS IN
ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK (SOW).

FIRM FIXED PRICE: $53,144.90

THE PERIOD OF PERFORMANCE IS 08 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

<PAGE>   43
                                                                     PAGE 3 OF 4

                          SPECIAL ENGINEERING SERVICES
                         FOR VEHICLE STABILITY ANALYSIS

1. SCOPE

This effort involves investigating the stability characteristics of vehicles
used within the Air Forces fleet of water tankers and fire trucks.

2. BACKGROUND

The majority of operational scenarios for water tankers and fire trucks,
including the P-18, P-19, and P-26, consist of operation at either a full or
empty state. Since 1987, rollovers of six (6) P-18's have occurred within a
fleet of approximately 200 vehicles. Most of these incidents occurred with the
vehicles in the full state. The occurrence of repeated rollovers has escalated
the need for tools to prevent mishaps due to stability problems. Because the
stability characteristics are not well documented within the original equipment
manufacturer's (OEM's) data, the stability characteristics must be determined
to preclude the occurrence of mishaps. By developing algorithms that
characterize the stability characteristics of water tankers and fire trucks,
WR-ALC/LE can prevent costly and life threatening situations.

3. REFERENCE DOCUMENTS

The government shall furnish to the contractor the following reference
documents:

o P-18 First Article Test Report (relevant portions)

o T.O. 36A12-23-19-1, 36A12-23-19-2, and 36A12-23-19-4

4. REQUIREMENTS

The contractor shall perform specialized engineering services to investigate the
stability characteristics of P-18 fire truck for the Support Equipment and
Vehicles Management Directorate (WR-ALC/LE) in accordance with the following
approach. Changes, substitutions, deletions, revisions, etc., shall not be made
without prior approval of the Government technical point of contact.

o The contractor shall research available technical data and OEM specifications
  to determine weights (sprung and unsprung mass), center of gravity, baffle
  configurations, shock absorber parameters, spring stiffness, etc., for the
  P-18 fire truck. If the data is unavailable, the contractor shall physically
  inspect and measure to determine the necessary critical parameters.

o The contractor shall perform engineering calculations to determine the
  stability characteristics of the study vehicle and develop "safe operating
  envelopes", considering braking and cornering maneuvers, road speed, etc., for
  full and empty fill states.

o The contractor shall prepare a final report to document safe and unsafe realms
  of operation for the vehicle and provide recommendations and conclusions.

o The contractor shall provide a briefing to WR-ALC/LE regarding the results of
  the study.

3.1 EXCHANGE OF INFORMATION AND RESOURCES. This project is unclassified and the
Government may place the final technical data and reports in the public domain.
However, the contractor shall not release any information pertaining to this
project nor present interim results to any parties outside WR-ALC/LE without
first obtaining permission from the Government technical point of contact
through the Procuring Contracting Officer (PCO). No data developed in part or
in whole by resources obtained from this project shall be used on any other
contract or task without obtaining written permission from WR-ALC/LE through
the PCO.
<PAGE>   44
                                                                     PAGE 4 OF 4

3.2 RESTRICTION ON DEVELOPMENT OR USE OF PROPRIETARY MATERIAL. The contractor
shall not develop or use any contractor-proprietary software, firmware,
hardware, drawings, or data in performance of the actions required by this
task. Any hardware, firmware, or software purchased or developed internally to
contribute to the completion of this task shall become the property of the
Government, and shall be documented and delivered to the procuring agency
within 10 days of a specific written request from the PCO.

5. GOVERNMENT POINTS OF CONTACT

                               Steven Davis, Project Engineer
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488 ext. 194
                               steven.davis@robins.af.mil

                               Mary Zampa, Equipment Specialist
                               WR-ALC/LES
                               225 Ocmulgee Ct.
                               Robins AFB, GA 31098-1647
                               (912) 926-6488 ext. 195
                               mary.zampa@robins.af.mil

6. TRAVEL

The contractor shall be responsible for any travel incurred to successfully
complete this effort. Travel to Air Force Bases, such as Moody AFB and Dobbins
AFB may be necessary to inspect and measure the P-18 fire truck. These visits
shall be coordinated through the Government Points of Contact.

7. SCHEDULE

The contractor shall complete this effort no later than 180 days after contract
award.

8. DELIVERABLES

The contractor shall provide the following in the contractor's own format.

o Monthly Status Report.

o Final Report - The report shall provide the results of the study and provide
  recommendations for the Support Equipment & Vehicles Management Directorate
  with respect to the safe and unsafe realms of operation for the P-18. Two
  paper copies of the report shall be provided along with an electronic copy
  compatible with Word 6.0.

o Briefing to WR-ALC/LE regarding the results of the effort.
<PAGE>   45
<TABLE>
<S><C>

====================================================================================================================================
                         ORDER FOR SUPPLIES OR SERVICES                          Form Approved                          PAGE 1 OF 4
                                                                                 OMB No. 0704-0187             =====================
                                                                                 Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
==============================================================================================================
     Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302 and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                             SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.   2. DELIVERY ORDER NO.    3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.      5. UNDER DMS REG 1
GS-35F-4655H
N65236-99-A-7920              E018                      1999 JUN 08          N65236-9158-8F11                      DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                       CODE  N65236         7. ADMINISTERED BY (If other than 6)          CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER   ------                                                             ------------------------
P.O. BOX 190022                                         SAME AS BLOCK 6                                      8. DELIVERY FOB
NORTH CHARLESTON, SC 29419-9022                                                                              [X] DEST
POC: NANCY GARTNER  CODE: 1113NG                                                                             [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                                          2015-018
TELEPHONE: (843) 974-5921                                                                                    (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR          CODE  0HAL7                      FACILITY CODE          10. DELIVERY TO FOB POINT BY (Date)  11. MARK IF
                            -------                                   ------                                            BUSINESS IS
   NAME          TELECOMMUNICATION SYSTEMS INC                                 SEE SCHEDULE                         [ ] SMALL
   AND           275 WEST STREET                                               ----------------------------------   [ ] SMALL DISAD-
   ADDRESS       SUITE 400                                                     12. DISCOUNT TERMS                       VANTAGED
                 ANNAPOLIS, MD  21401                                          NET 30                               [ ] WOMEN-OWNED
                 TELEPHONE NO.: (410) 280-1236                                 ----------------------------------------------------
                                                                               13. MAIL INVOICES TO
                                                                               SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO            CODE                             15. PAYMENT WILL BE MADE BY     CODE 503000
                            ------                                                           ------                    MARK ALL
    CYPRESS GROUP                                           DFAS DY AOG                                              PACKAGES AND
    5850A WEST CYPRESS STREET                               1050 FORRER BLVD                                         PAPERS WITH
    TAMPA, FL  33607                                        DAYTON, OH  45420-1472                                   CONTRACT OR
    M/F: N65236-99-A-7920/E018                                                          EFT: T                       ORDER NUMBER
------------------------------------------------------------------------------------------------------------------------------------
16      DELIVERY [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
                      conditions of above numbered contract.
 TYPE   ----------------------------------------------------------------------------------------------------------------------------
  OF    PURCHASE      Reference your         furnish the following on terms specified herein.
 ORDER              ---------------------------------------------------------------------------------------------------------------
--------------------  ACCEPTANCE: THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                      PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                      TO PERFORM THE SAME.

  ----------------------         --------------------          -------------------------------        ---------------
    NAME OF CONTRACTOR                SIGNATURE                     TYPED NAME AND TITLE                DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
ACR:AA  5793400  309  47E8  8V700A  040000  58301  000000  503000  F0330L                                          $23,495.20
JOB ORDER: B8993X9B34 (FD2060999970308/AA)
====================================================================================================================================
18.           19.                                    20. QUANTITY        21.            22.  UNIT              23.
   ITEM NO.   SCHEDULE OF SUPPLIES/SERVICES              ORDERED/        UNIT                PRICE                  AMOUNT
                                                         ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
              SEND ORIGINAL & 2 COPIES OF
              THE INVOICES TO:
              SPAWARSYSCEN, CHARLESTON
              ATTN: CODE 123 (FINANCE)
              PO BOX 190022
              N. CHARLESTON, SC  29419-9022                                                                           NTE
====================================================================================================================================
* If quantity accepted by           24. UNITED STATES OF AMERICA                        25. TOTAL                $23,495.20
the Government is same as                                                               --------------------------------------------
quantity ordered, indicate              /s/ NANCY GARTNER                               29.
by X. If different, enter           BY: NANCY GARTNER    CONTRACTING/ORDERING OFFICER   DIFFERENCES              -------------------
actual quantity accepted
below quantity ordered and
encircle.
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              27. SHIP. NO.   28. D.O. VOUCHER NO. 30.          _________________
                                                                _____________                            INITIALS _________________
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  [ ] PARTIAL     ----------------------------------------------------
                                 CONTRACT EXCEPT AS NOTED           [ ] FINAL   32. PAID BY          33. AMOUNT VERIFIED CORRECT FOR

-------------  -------------------------------------------------  -------------                      -------------------------------
    DATE              SIGNATURE OF AUTHORIZED GOVERNMENT          31. PAYMENT                        34. CHECK NUMBER
                      REPRESENTATIVE
----------------------------------------------------------------  [ ] COMPLETE                       -------------------------------
36. I certify this account is correct and proper for payment          [ ] PARTIAL                    35. BILL OF LADING NO.
                                                                  [ ] FINAL
-------------  -------------------------------------------------
    DATE           SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT     38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL CONTAINERS  41. S/R ACCOUNT NUMBER   42. S/R VOUCHER NO.

====================================================================================================================================
DD FORM 1155, JUN 94

</TABLE>
<PAGE>   46
--------------------------------------------------------------------------------
                           REFERENCE NO. OF DOCUMENT BEING CONTINUED       PAGE
CONTINUATION SHEET         N65236-99-A-7920/E018                             2
--------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
--------------------------------------------------------------------------------

                  SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO DETERMINE THE FEASIBILITY OF USING A
POLYPROPYLENE TANK IN LIEU OF A COMPOSITE FIBERGLASS TANK ON THE P-18 TANKER IN
ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK (SOW).

FIRM FIXED PRICE: $23,495.20

THE PERIOD OF PERFORMANCE IS 08 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

<PAGE>   47
N65236-99-A-7920/E018                                                PAGE 3 OF 4

                               STATEMENT OF WORK
                       ENGINEERING ANALYSIS AND STUDIES
                                       OF
                            P-18 WATER TANK RETROFIT

1.0 SCOPE: Determine the feasibility of using a polypropylene tank in lieu of a
composite fiberglass tank on the P-18 tanker.

1.1 Title: Engineering Studies and Analysis to Determine the Feasibility and
Practicality of Retrofitting a Polypropylene Storage Tank to the P-18 Tanker,
NSN 4210-01-223-5411.

1.2 Background: The P-18 Tanker is a commercially acquired vehicle that has
been in service since 1987. This vehicle is fitted with a 2000 gallon,
composite fiberglass tank. The current tanks are showing signs of cracking
primarily due to fair wear and tear. Local fiberglass repair procedures are
being used to minimize the leaking, but the frequency of cracks and leakage are
becoming more prevalent. As a result, replacement of the tanks may be required
for those worst case conditions. One solution to the problem is to replace the
tanks with a plastic tank that is resistant to biological agents and cracking.
Plastic tanks may also provide longer life expectancy with less repair
requirements. The goal of this effort is to research the industry for available
plastic tanks, perform an engineering assessment on the suitability of these
tanks for P-18 applications, procure a tank, perform a trial installation, and
develop a retrofit instructions for the P-18.

2.0 REFERENCE DOCUMENTS:

T.O. 36A12-23-19-4

3.0 REQUIREMENTS: The contractor shall perform the following sustaining
engineering tasks:

     a. Perform an engineering assessment on the suitability and recommended
        type of plastic tank to retrofit a P-18.

     b. Purchase the type and size of plastic tank selected by the Air Force
        for retrofit.

     c. Develop a recommended retrofit plan.

     d. Install the new tank at a government-selected location.

     e. Provide a technical data package suitable for competitive procurement
        for all components.

     f. Provide instructions for the government approved retrofit plan.

<PAGE>   48
                                                                     PAGE 4 OF 4

4.0  Deliverables: The contractor shall deliver to the government the following
items during the course of this task:

     a.   Monthly Status Reports

     b.   Final report including, as a minimum, results of the prototype
          installation, any problems and/or issues that occurred during the
          course of the project, and any recommendations for future
          installations.

     c.   A kit installation/procedures document including as a minimum,
          engineering drawings, recommended sources of supply for kit items,
          recommended installation procedures suitable for field level
          installation, number of hours to complete the task, recommendations on
          required tools and equipment, and recommendations on skill level and
          number of personnel required.

POINTS OF CONTACT:

The following shall serve as the technical Points of Contact (POCs):

               Steven Davis
               WR-ALC/LES
               225 Ocmulgee Ct.
               Robins AFB, GA 31098-1647
               (912) 926-6488, ext. 194

               Mary Zampa
               WR-ALC/LES
               225 Ocmulgee Ct.
               Robins AFB, GA 31098-1647
               (912) 926-6488, ext. 195

6.0  Period of Performance

The period of performance for this project is estimated 8 months.
<PAGE>   49
<TABLE>
<S><C>

====================================================================================================================================
                         ORDER FOR SUPPLIES OR SERVICES                          Form Approved                          PAGE 1 OF 4
                                                                                 OMB No. 0704-0187             =====================
                                                                                 Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
==============================================================================================================
     Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302 and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                             SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.   2. DELIVERY ORDER NO.    3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.      5. UNDER DMS REG 1
GS-35F-4655H
N65236-99-A-7920               E017                      1999 JUN 08          N65236-9158-8F12                       DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                       CODE  N65236         7. ADMINISTERED BY (If other than 6)          CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER   ------                                                             ------------------------
P.O. BOX 190022                                         SAME AS BLOCK 6                                      8. DELIVERY FOB
NORTH CHARLESTON, SC 29419-9022                                                                              [X] DEST
POC: NANCY GARTNER  CODE: 1113NG                                                                             [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                                          2015-017
TELEPHONE: (843) 974-5921                                                                                    (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR          CODE  0HAL7                      FACILITY CODE          10. DELIVERY TO FOB POINT BY (Date)  11. MARK IF
                            -------                                   ------                                            BUSINESS IS
   NAME          TELECOMMUNICATION SYSTEMS INC                                 SEE SCHEDULE                         [ ] SMALL
   AND           275 WEST STREET                                               ----------------------------------   [ ] SMALL DISAD-
   ADDRESS       SUITE 400                                                     12. DISCOUNT TERMS                       VANTAGED
                 ANNAPOLIS, MD  21401                                          NET 30                               [ ] WOMEN-OWNED
                 TELEPHONE NO.: (410) 280-1236                                 ----------------------------------------------------
                                                                               13. MAIL INVOICES TO
                                                                               SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO            CODE                             15. PAYMENT WILL BE MADE BY     CODE 503000
                            ------                                                           ------                    MARK ALL
    CYPRESS GROUP                                           DFAS DY AOG                                              PACKAGES AND
    5850A WEST CYPRESS STREET                               1050 FORRER BLVD                                         PAPERS WITH
    TAMPA, FL  33607                                        DAYTON, OH  45420-1472                                   CONTRACT OR
    M/F: N65236-99-A-7920/E017                                                          EFT: T                       ORDER NUMBER
------------------------------------------------------------------------------------------------------------------------------------
16      DELIVERY [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
                      conditions of above numbered contract.
 TYPE   ----------------------------------------------------------------------------------------------------------------------------
  OF    PURCHASE      Reference your         furnish the following on terms specified herein.
 ORDER              ---------------------------------------------------------------------------------------------------------------
--------------------  ACCEPTANCE: THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                      PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                      TO PERFORM THE SAME.

  ----------------------         --------------------          -------------------------------        ---------------
    NAME OF CONTRACTOR                SIGNATURE                     TYPED NAME AND TITLE                DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
ACR:AA  5793400  309  47E8  8V700A  040000  58301  000000  503000  F0330L                                          $15,359.78
JOB ORDER: B8993X9F34 (FD2060999970311/AA)
====================================================================================================================================
18.           19.                                    20. QUANTITY        21.            22.  UNIT              23.
   ITEM NO.   SCHEDULE OF SUPPLIES/SERVICES              ORDERED/        UNIT                PRICE                  AMOUNT
                                                         ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
              SEND ORIGINAL & 2 COPIES OF
              THE INVOICES TO:
              SPAWARSYSCEN, CHARLESTON
              ATTN: CODE 123 (FINANCE)
              PO BOX 190022
              N. CHARLESTON, SC  29419-9022                                                                           NTE
====================================================================================================================================
* If quantity accepted by           24. UNITED STATES OF AMERICA                        25. TOTAL                $15,359.78
the Government is same as                                                               --------------------------------------------
quantity ordered, indicate              /s/ NANCY GARTNER                               29.
by X. If different, enter           BY: NANCY GARTNER    CONTRACTING/ORDERING OFFICER   DIFFERENCES              -------------------
actual quantity accepted
below quantity ordered and
encircle.
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              27. SHIP. NO.   28. D.O. VOUCHER NO. 30.          _________________
                                                                _____________                            INITIALS _________________
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  [ ] PARTIAL     ----------------------------------------------------
                                 CONTRACT EXCEPT AS NOTED           [ ] FINAL   32. PAID BY          33. AMOUNT VERIFIED CORRECT FOR

-------------  -------------------------------------------------  -------------                      -------------------------------
    DATE              SIGNATURE OF AUTHORIZED GOVERNMENT          31. PAYMENT                        34. CHECK NUMBER
                      REPRESENTATIVE
----------------------------------------------------------------  [ ] COMPLETE                       -------------------------------
36. I certify this account is correct and proper for payment          [ ] PARTIAL                    35. BILL OF LADING NO.
                                                                  [ ] FINAL
-------------  -------------------------------------------------
    DATE           SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT     38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL CONTAINERS  41. S/R ACCOUNT NUMBER   42. S/R VOUCHER NO.

====================================================================================================================================
DD FORM 1155, JUN 94

</TABLE>
<PAGE>   50

--------------------------------------------------------------------------------
                   REFERENCE NO. OF DOCUMENT BEING CONTINUED            PAGE
CONTINUATION SHEET                   N65236-99-A-7920E017                 2
--------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
--------------------------------------------------------------------------------

SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO ENGINEER AND PROTOTYPE AN ALTERNATIVE DESIGN
AND VALIDATE A SECONDARY SOURCE FOR THE KC-10 PALLET COUPLER IN ACCORDANCE WITH
THE ATTACHED STATEMENT OF WORK (SOW).

FIRM FIXED PRICE:  $15,359.78

THE PERIOD OF PERFORMANCE IS 08 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.
<PAGE>   51
                                                                     PAGE 3 OF 4

                            STATEMENT OF OBJECTIVES

                      ENGINEERING AND PROTOTYPE PRODUCTION
                                       OF
                  KC-10 PALLET COUPLER FOR 463L PALLET SYSTEM

1.2.1.0   SCOPE:  This Statement of Objectives (SOO) defines the tasks necessary
      to engineer and prototype an alternative design and validate a secondary
      source for the KC-10 pallet coupler. This effort includes, engineering
      design, fabrication of required tooling, manufacture of first article
      components, and validation of form, fit, and function. This sustaining
      engineering task is required to minimize cost, ensure availability of
      these couplers, and sustain the mission integrity of the Air Force
      mobility mission.

1.1.  Title:  Engineering Design and Prototype Production of KC-10 Pallet
      Couplers, NSN 1670-01-302-3637CT

1.3   Background:  The KC-10 coupler is used to create pallet trains for KC-10
      aircraft. This coupler design separates the pallets by one inch so that
      the pallet lock down devices will properly engage. Currently, there is
      only one source for the KC-10 pallet couplers and the unit price for these
      items has steadily increased. This sustaining engineering task is required
      to minimize cost, ensure availability of these couplers, and sustain the
      mission integrity of the Air Force mobility mission. The goal of this task
      is to develop an alternative KC-10 coupler to ensure availability and
      reduce the unit cost.

2.0   Reference Documents:   Air Force Drawings;
                              7031843        Pallet Assembly, Cargo, HCU-6E
                              7231258        Rail, Short, Cargo Pallet, HCU-6E
                              7231256        Rail, Long, Cargo Pallet, HCU-6E
                              7031839        Clip, Angle
                              7133043        Ring Assembly

                    Specifications:
                         MIL-STD-2175        Castings, Classification and
                                             Inspection of

3.0  REQUIREMENTS:  The contractor shall perform the following requirements for
this sustaining engineering task.

     a.   Develop a Level II drawing package suitable for prototype production.

     b.   Produce a pattern for initial production based on the initial Level
          III drawing package.

<PAGE>   52
                                                                     PAGE 4 OF 4

     c.   Produce four First Article prototype production samples.

     d.   Verify form, fit, and function the First Article samples.

     e.   Upgrade and/or modify pattern, as required.

     f.   Produce 20 prototype production units for Air Force laboratory
          and field tests.

     g.   Provide a technical data package suitable for competitive procurement
          for any newly fabricated components.

4.0  Deliverables: The contractor shall deliver to the government the following
     items during the course of this task:

     a.   Four First Article prototype production samples.

     b.   Twenty prototype production units.

     c.   Technical data package.

     d.   Final report in contractor format.

5.0  Points Of Contract:

5.1  The following shall serve as the technical point of contact (POC):

                              Jim Donnelly
                              WR-ALC/LEG
                              225 Ocmulgee Ct.
                              Robins AFB, GA 31098-1647
                              (912) 926-6488, ext. 218

5.2  The following shall serve as the field test site:

                              SMSGT Holz
                              Dover AFB, DE
                              (302) 677-4309

6.0  Period of Performance:

The period of performance for this project is estimated 8 months.

<PAGE>   53
<TABLE>
<S><C>

====================================================================================================================================
                         ORDER FOR SUPPLIES OR SERVICES                          Form Approved                          PAGE 1 OF 4
                                                                                 OMB No. 0704-0187             =====================
                                                                                 Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
==============================================================================================================
     Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden, estimate or any other aspect of the collection of information
including suggestions for reducing this burden to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302 and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                             SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.    2. DELIVERY ORDER NO.    3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.     5. UNDER DMS REG 1
GS-35F-4655H
N65236-99-A-7920               E016                      1999 JUN 02          N65236-9158-8F05                       DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                       CODE  N65236         7. ADMINISTERED BY (If other than 6)          CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER   ------                                                             ------------------------
P.O. BOX 190022                                         SAME AS BLOCK 6                                      8. DELIVERY FOB
NORTH CHARLESTON, SC 29419-9022                                                                              [X] DEST
POC: NANCY GARTNER  CODE: 1113NG                                                                             [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                                          2015-016
TELEPHONE: (843) 974-5921                                                                                    (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR          CODE  0HAL7                      FACILITY CODE           10. DELIVERY TO FOB POINT BY (Date) 11. MARK IF
                            -------                                   ------                                            BUSINESS IS
   NAME          TELECOMMUNICATION SYSTEMS INC          Tatonka                 SEE SCHEDULE                        [ ] SMALL
   AND           275 WEST STREET                        Accounting              ----------------------------------  [ ] SMALL DISAD-
   ADDRESS       SUITE 400                              Tampa                   12. DISCOUNT TERMS                      VANTAGED
                 ANNAPOLIS, MD  21401                                           NET 30                              [ ] WOMEN-OWNED
                 TELEPHONE NO.: (410) 280-1236                                  ----------------------------------------------------
                                                                                13. MAIL INVOICES TO
                                                                                SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO            CODE                             15. PAYMENT WILL BE MADE BY     CODE 503000
                            ------                                                           ------                    MARK ALL
    CYPRESS GROUP                                           DFAS DY AOG                                              PACKAGES AND
    5850A WEST CYPRESS STREET                               1050 FORRER BLVD                                         PAPERS WITH
    TAMPA, FL  33607                                        DAYTON, OH  45420-1472                                   CONTRACT OR
    M/F: N65236-99-A-7920/E016                                                          EFT: T                       ORDER NUMBER
------------------------------------------------------------------------------------------------------------------------------------
16      DELIVERY [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
                      conditions of above numbered contract.
 TYPE   ----------------------------------------------------------------------------------------------------------------------------
  OF    PURCHASE      Reference your         furnish the following on terms specified herein.
 ORDER              ---------------------------------------------------------------------------------------------------------------
--------------------  ACCEPTANCE: THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                      PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                      TO PERFORM THE SAME.

  ----------------------         --------------------          -------------------------------        ---------------
    NAME OF CONTRACTOR                SIGNATURE                     TYPED NAME AND TITLE                DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
ACR:AA  5793400  309  47E8  8V700A  040000  58301  000000  503000  F0330L                                          $44,634.34
JOB ORDER: B8993X9G39 (FD2060999970278/AA)
====================================================================================================================================
18.           19.                                    20. QUANTITY        21.            22.  UNIT              23.
   ITEM NO.   SCHEDULE OF SUPPLIES/SERVICES              ORDERED/        UNIT                PRICE                  AMOUNT
                                                         ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
              SEND ORIGINAL & 2 COPIES OF
              THE INVOICES TO:
              SPAWARSYSCEN, CHARLESTON
              ATTN: CODE 123 (FINANCE)
              PO BOX 190022
              N. CHARLESTON, SC  29419-9022                                                                           NTE
====================================================================================================================================
* If quantity accepted by           24. UNITED STATES OF AMERICA                        25. TOTAL                $44,634.34
the Government is same as                                                               --------------------------------------------
quantity ordered, indicate              /s/ NANCY GARTNER                               29.
by X. If different, enter           BY: NANCY GARTNER    CONTRACTING/ORDERING OFFICER   DIFFERENCES              -------------------
actual quantity accepted
below quantity ordered and
encircle.
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              27. SHIP. NO.   28. D.O. VOUCHER NO. 30.          _________________
                                                                _____________                            INITIALS _________________
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  [ ] PARTIAL     ----------------------------------------------------
                                 CONTRACT EXCEPT AS NOTED           [ ] FINAL   32. PAID BY          33. AMOUNT VERIFIED CORRECT FOR

-------------  -------------------------------------------------  -------------                      -------------------------------
    DATE              SIGNATURE OF AUTHORIZED GOVERNMENT          31. PAYMENT                        34. CHECK NUMBER
                      REPRESENTATIVE
----------------------------------------------------------------  [ ] COMPLETE                       -------------------------------
36. I certify this account is correct and proper for payment          [ ] PARTIAL                    35. BILL OF LADING NO.
                                                                  [ ] FINAL
-------------  -------------------------------------------------
    DATE           SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT     38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL CONTAINERS  41. S/R ACCOUNT NUMBER   42. S/R VOUCHER NO.

====================================================================================================================================
DD FORM 1155, JUN 94

</TABLE>
<PAGE>   54
--------------------------------------------------------------------------------
                              REFERENCE NO. OF DOCUMENT BEING CONTINUED     PAGE
CONTINUATION SHEET                     N65236-99-A-7920/E016                  2
--------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR
TELECOMMUNICATION SYSTEMS, INC.
--------------------------------------------------------------------------------

SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL TO FORMALIZE WELDER CERTIFICATION PROCESS FOR AIR FORCE
VEHICLES IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $44,634.34

THE PERIOD OF PERFORMANCE IS 02 JUNE 1999 THROUGH 30 SEPTEMBER 1999

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.
<PAGE>   55
N65236-99-A-7920/E016                                                PAGE 3 OF 4

                      VERIFICATION AND VALIDATION OF USAF
                          VEHICLE WELDER CERTIFICATION

1.   SCOPE

A study will be conducted to provide the Air Force with information sufficient
to implement procedures for certification of USAF vehicle welders. The result
will allow the Support Equipment & Vehicles Management Directorate to establish
a welder certification process similar to that used for Air Force aircraft and
missile certification.

2.   BACKGROUND

There is currently no formalized welder certification process for Air Force
vehicles. Welders are qualified to weld through certification from AWS,
certification for aircraft welders IAWT.O.00-25-252, or certification from the
VMM that the welder possesses the necessary knowledge and skill to provide
satisfactory welds in accordance with 34W4-1-5. This last method of
qualification may allow for inconsistent welds, poor weld quality, lengthen
weld times, and increase costs to the organization due to rework or damage to
the end item.

3.   REFERENCE DOCUMENTS

The government shall furnish to the contractor TO 00-25-252 and specification
MIL-STD-1595.

4.   REQUIREMENTS

The contractor shall perform the below listed items. Changes, substitutions,
deletions, revisions, etc., shall not be made without prior approval of the
government technical point of contact.

-  Research appropriate Air Force and commercial procedures and evaluation
   criteria for welder certification of ground vehicles.

-  Develop procedures for Air Force ground vehicle welder certification.

-  Fabricate three (3) samples each of typical weld coupons for certification,
   not to exceed nine (9) coupons total. The specific weld types for
   certification will be determined during the course of the study.

-  Travel to Dover AFB, Moody AFB, and Langley AFB for purpose of validation of
   weld procedures using three (3) sample coupons at each base. Other locations
   may be substituted on a one-for-one basis, as long as travel costs are less
   or equivalent.

-  Determination shall be made as to whether or not the coupons meet the
   criteria for a proper weld in accordance with the certification procedures.

-  Costs to evaluate the weld coupons shall be obtained from an ALC
   accomplishing the evaluation and a private firm.

-  Deliver validated weld certification procedures.

-  Provide a briefing to WR-ALC/LE regarding the results of the certification
   study.

<PAGE>   56

N65236-99-A-7920/E016                                                PAGE 4 OF 4

5.   GOVERNMENT POINT OF CONTACT

Tyler Shoman, WR-ALC/LER, 225 Ocmulgee Ct., Robins AFB, GA 31098-1647, (912)
926-6488 ext. 196.

6.   TRAVEL

The contractor shall be accountable for any travel incurred to successfully
complete this effort.

7.   SCHEDULE

The contractor shall complete this effort no later than 180 days after contract
award.

8.   DELIVERABLES

The contractor shall provide the following in the contractor's own format.

o    Final Report - The report shall provide the results of the study and
     provide recommendations for the Support Equipment & Vehicles Management
     Directorate with respect to implementation of the welder certification
     program.

o    Draft certification procedures - The contractor shall provide a draft copy
     of the recommended procedures. Two paper copies of the procedures shall be
     provided along with an electronic copy compatible with Word 6.0.

o    Briefing to WR-ALC/LE regarding the results of the effort.

<PAGE>   57
<TABLE>
<S><C>

====================================================================================================================================
                         ORDER FOR SUPPLIES OR SERVICES                          Form Approved                          PAGE 1 OF 4
                                                                                 OMB No. 0704-0187             =====================
                                                                                 Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
==============================================================================================================
     Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302 and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                             SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.    2. DELIVERY ORDER NO.    3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.     5. UNDER DMS REG 1
GS-35F-4655H
N65236-99-A-7920               E015                      1999 JUN 02          N65236-9158-8F04                       DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                       CODE  N65236         7. ADMINISTERED BY (If other than 6)          CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER   ------                                                             ------------------------
P.O. BOX 190022                                         SAME AS BLOCK 6                                      8. DELIVERY FOB
NORTH CHARLESTON, SC 29419-9022                                                                              [X] DEST
POC: NANCY GARTNER  CODE: 1113NG                                                                             [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                                          2015-015
TELEPHONE: (843) 974-5921                                                                                    (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR          CODE  0HAL7                      FACILITY CODE           10. DELIVERY TO FOB POINT BY (Date) 11. MARK IF
                            -------                                   ------                                            BUSINESS IS
   NAME          TELECOMMUNICATION SYSTEMS INC          Tatonka                 SEE SCHEDULE                        [ ] SMALL
   AND           275 WEST STREET                        Accounting              ----------------------------------  [ ] SMALL DISAD-
   ADDRESS       SUITE 400                              Tampa                   12. DISCOUNT TERMS                      VANTAGED
                 ANNAPOLIS, MD  21401                                           NET 30                              [ ] WOMEN-OWNED
                 TELEPHONE NO.: (410) 280-1236                                  ----------------------------------------------------
                                                                                13. MAIL INVOICES TO
                                                                                SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO            CODE                             15. PAYMENT WILL BE MADE BY     CODE 503000
                            ------                                                           ------                    MARK ALL
    CYPRESS GROUP                                           DFAS DY AOG                                              PACKAGES AND
    5850A WEST CYPRESS STREET                               1050 FORRER BLVD                                         PAPERS WITH
    TAMPA, FL  33607                                        DAYTON, OH  45420-1472                                   CONTRACT OR
    M/F: N65236-99-A-7920/E015                                                          EFT: T                       ORDER NUMBER
------------------------------------------------------------------------------------------------------------------------------------
16      DELIVERY [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
                      conditions of above numbered contract.
 TYPE   ----------------------------------------------------------------------------------------------------------------------------
  OF    PURCHASE      Reference your         furnish the following on terms specified herein.
 ORDER              ---------------------------------------------------------------------------------------------------------------
--------------------  ACCEPTANCE: THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                      PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                      TO PERFORM THE SAME.

  ----------------------         --------------------          -------------------------------        ---------------
    NAME OF CONTRACTOR                SIGNATURE                     TYPED NAME AND TITLE                DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
ACR:AA  5793400  309  47E8  8V700A  040000  58301  000000  503000  F0330L                                          $15,742.02
JOB ORDER: BMU93X9E35 (FD2060999970275/AA)
====================================================================================================================================
18.           19.                                    20. QUANTITY        21.            22.  UNIT              23.
   ITEM NO.   SCHEDULE OF SUPPLIES/SERVICES              ORDERED/        UNIT                PRICE                  AMOUNT
                                                         ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
              SEND ORIGINAL & 2 COPIES OF
              THE INVOICES TO:
              SPAWARSYSCEN, CHARLESTON
              ATTN: CODE 123 (FINANCE)
              PO BOX 190022
              N. CHARLESTON, SC  29419-9022                                                                           NTE
====================================================================================================================================
* If quantity accepted by           24. UNITED STATES OF AMERICA                        25. TOTAL                $15,742.02
the Government is same as                                                               --------------------------------------------
quantity ordered, indicate              /s/ NANCY GARTNER                               29.
by X. If different, enter           BY: NANCY GARTNER    CONTRACTING/ORDERING OFFICER   DIFFERENCES              -------------------
actual quantity accepted
below quantity ordered and
encircle.
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              27. SHIP. NO.   28. D.O. VOUCHER NO. 30.          _________________
                                                                _____________                            INITIALS _________________
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  [ ] PARTIAL     ----------------------------------------------------
                                 CONTRACT EXCEPT AS NOTED           [ ] FINAL   32. PAID BY          33. AMOUNT VERIFIED CORRECT FOR

-------------  -------------------------------------------------  -------------                      -------------------------------
    DATE              SIGNATURE OF AUTHORIZED GOVERNMENT          31. PAYMENT                        34. CHECK NUMBER
                      REPRESENTATIVE
----------------------------------------------------------------  [ ] COMPLETE                       -------------------------------
36. I certify this account is correct and proper for payment          [ ] PARTIAL                    35. BILL OF LADING NO.
                                                                  [ ] FINAL
-------------  -------------------------------------------------
    DATE           SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT     38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL CONTAINERS  41. S/R ACCOUNT NUMBER   42. S/R VOUCHER NO.

====================================================================================================================================
DD FORM 1155, JUN 94

</TABLE>
<PAGE>   58
<TABLE>
<S>                       <C>                                             <C>
-------------------------------------------------------------------------------
CONTINUATION SHEET        REFERENCE NO. OF DOCUMENT BEING CONTINUED       PAGE
                             N65236-99-A-7920/E015                         2
-------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR
   TELECOMMUNICATION SYSTEMS, INC.
-------------------------------------------------------------------------------
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL TO FORMALIZE THE DESIGN, PROTOTYPE, AND EVALUATE A CHASSIS
FRAME REINFORCEMENT PLATE FOR THE 3D AERIAL PLATFORM FIRE TRUCK IN ACCORDANCE
WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $15,742.02

THE PERIOD OF PERFORMANCE IS 02 JUNE 1999 THROUGH 30 SEPTEMBER 1999.

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

<PAGE>   59
                               STATEMENT OF WORK

                        ENGINEERING DESIGN AND PROTOTYPE
                                       OF
                         3D AERIAL PLATFORM FIRE TRUCK

1.0   SCOPE: This statement of Work (SOW) defines the tasks necessary to
      formalize the design, prototype, and evaluate a chassis frame
      reinforcement plate for the 3D aerial platform fire truck. The goal of
      this effort is to formalize the repair design and prototype a
      reinforcement plate for the four aerial platform trucks in order to repair
      chassis cracking and extend the service life of the vehicle for at least
      five years. This sustaining engineering task is required to ensure that
      this vehicle is returned to its original operational capability in order
      to meet mission requirements.

1.1   Title: Engineering Design and Prototype Repair for 3D Aerial Platform Fire
      Truck Chassis Frame, NSN 4210-01-230-4362.

1.2   Background: There are four 3D aerial platform fire trucks still in the Air
      Force inventory. During their construction, a notch was cut in the chassis
      frame rail to accommodate the rear outrigger assemblies. In addition, the
      aerial platform has several compartments and other components that create
      significant loading on the rear chassis frame. Over the years, cracks have
      developed in the chassis frame where they were notched for the rear
      outriggers. Some of the cracks have grown to almost the entire width of
      the chassis frame, causing the rear compartment and platform assemblies to
      drop. In at least one of the vehicles, the structural integrity of the
      rear chassis frame is minimal, thereby, limiting the functional capability
      of the vehicle and creating a potential safety hazard. If the problem is
      not corrected, the chassis frame by the rear outriggers will break. This
      breakage will eliminate any support for the rear platform components and
      potentially cause significant damage to other platform components. This
      situation will make the truck completely unusable. The safety hazard has
      not been completely assessed. If the truck is in use or in motion when the
      breakage occurs, the truck could become difficult to control. There is
      also a potential of personnel injury, depending on when the breakage
      should occur. The purpose of this project is to develop the designs and
      hardware to reinforce the chassis frame rail so that it will safely
      support the platform components aft of the rear outriggers.

2.0   REFERENCE DOCUMENTS:

      Commercial Manuals provided with the vehicle.

3.0   REQUIREMENTS: The contractor shall perform the following tasks for this
      sustaining engineering effort:

      a.  Formalize the design for the reinforcement plate.

      b.  Develop installation instructions for the reinforcement plate. These
          instructions shall include procedures to correct any structural
          bending that may have occurred as a result of the cracking in chassis
          frame rail.

<PAGE>   60
     c.   Prototype the initial installation of the reinforcement plates on one
          vehicle. This installation will involve the installation of two
          plates, one on each side of the vehicle. The initial installation is
          expected to be at the Air Force Academy.

     d.   As a result of the prototype installation, update the engineering
          drawings and instructions to reflect any necessary changes.

     e.   Provide a technical data package for any newly fabricated components
          and/or modifications.

4.0  Deliverables: The contractor shall deliver to the government the following
     items during the course of this task:

     a.   Monthly Status Reports.

     b.   Final report including, as a minimum, results of the prototype
          installation, any problems an/or issues that occurred during the
          course of the project, and any recommendations for future
          installations.

     c.   A kit installation/procedures document including as a minimum,
          engineering drawings, recommended sources of supply for kit items,
          recommended installation procedures suitable for field level repair,
          number of hours to complete the task, recommendations on required
          tools and equipment, and recommendations on skill level and number of
          personnel required.

5.0  POINTS OF CONTACT:

The following shall serve as the technical Points of Contact (POCs):

                           Steven Davis
                           WR-ALC/LES
                           225 Ocmulgee Ct.
                           Robins AFB, GA 31098-1647
                           (912) 926-6488, ext. 194

                           Mary Zampa
                           WR-ALC/LES
                           225 Ocmulgee Ct.
                           Robins AFB, GA 31098-1647
                           (912) 926-6488, ext. 195

<PAGE>   61
<TABLE>
<S><C>

====================================================================================================================================
                         ORDER FOR SUPPLIES OR SERVICES                          Form Approved                          PAGE 1 OF 5
                                                                                 OMB No. 0704-0187             =====================
                                                                                 Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
==============================================================================================================
     Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of the collection of information
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302 and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                                    PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                             SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
====================================================================================================================================
1. CONTRACT/PURCH ORDER NO.    2. DELIVERY ORDER NO.    3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.     5. UNDER DMS REG 1
GS-35F-4655H
N65236-99-A-7920               E014                      1999 JUN 02          N65236-9158-8F06                       DO
------------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                       CODE  N65236         7. ADMINISTERED BY (If other than 6)          CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER   ------                                                             ------------------------
P.O. BOX 190022                                         SAME AS BLOCK 6                                      8. DELIVERY FOB
NORTH CHARLESTON, SC 29419-9022                                                                              [X] DEST
POC: NANCY GARTNER  CODE: 1113NG                                                                             [ ] OTHER
EMAIL: gartnern@spawar.navy.mil                                          2015-014
TELEPHONE: (843) 974-5921                                                                                    (See Schedule if other)
------------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR          CODE  0HAL7                      FACILITY CODE           10. DELIVERY TO FOB POINT BY (Date) 11. MARK IF
                            -------                                   ------                                            BUSINESS IS
   NAME          TELECOMMUNICATION SYSTEMS INC          Tatonka                 SEE SCHEDULE                        [ ] SMALL
   AND           275 WEST STREET                        Accounting              ----------------------------------  [ ] SMALL DISAD-
   ADDRESS       SUITE 400                              Tampa                   12. DISCOUNT TERMS                      VANTAGED
                 ANNAPOLIS, MD  21401                                           NET 30                              [ ] WOMEN-OWNED
                 TELEPHONE NO.: (410) 280-1236                                  ----------------------------------------------------
                                                                                13. MAIL INVOICES TO
                                                                                SAME AS BLOCK 19
------------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO            CODE                             15. PAYMENT WILL BE MADE BY     CODE 503000
                            ------                                                           ------                    MARK ALL
    CYPRESS GROUP                                           DFAS DY AOG                                              PACKAGES AND
    5850A WEST CYPRESS STREET                               1050 FORRER BLVD                                         PAPERS WITH
    TAMPA, FL  33607                                        DAYTON, OH  45420-1472                                   CONTRACT OR
    M/F: N65236-99-A-7920/E014                                                          EFT: T                       ORDER NUMBER
------------------------------------------------------------------------------------------------------------------------------------
16      DELIVERY [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
                      conditions of above numbered contract.
 TYPE   ----------------------------------------------------------------------------------------------------------------------------
  OF    PURCHASE      Reference your         furnish the following on terms specified herein.
 ORDER              ---------------------------------------------------------------------------------------------------------------
--------------------  ACCEPTANCE: THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                      PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                      TO PERFORM THE SAME.

  ----------------------         --------------------          -------------------------------        ---------------
    NAME OF CONTRACTOR                SIGNATURE                     TYPED NAME AND TITLE                DATE SIGNED

[ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
====================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
ACR:AA  5793400  309  47E8  8V700A  040000  58301  000000  503000  F0330L                                          $20,740.13
JOB ORDER: BMU93X9F37 (FD2060999970276/AA)
====================================================================================================================================
18.           19.                                    20. QUANTITY        21.            22.  UNIT              23.
   ITEM NO.   SCHEDULE OF SUPPLIES/SERVICES              ORDERED/        UNIT                PRICE                  AMOUNT
                                                         ACCEPTED*
------------------------------------------------------------------------------------------------------------------------------------
              SEND ORIGINAL & 2 COPIES OF
              THE INVOICES TO:
              SPAWARSYSCEN, CHARLESTON
              ATTN: CODE 123 (FINANCE)
              PO BOX 190022
              N. CHARLESTON, SC  29419-9022                                                                           NTE
====================================================================================================================================
* If quantity accepted by           24. UNITED STATES OF AMERICA                        25. TOTAL                $20,740.13
the Government is same as                                                               --------------------------------------------
quantity ordered, indicate              /s/ NANCY GARTNER                               29.
by X. If different, enter           BY: NANCY GARTNER    CONTRACTING/ORDERING OFFICER   DIFFERENCES              -------------------
actual quantity accepted
below quantity ordered and
encircle.
------------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                              27. SHIP. NO.   28. D.O. VOUCHER NO. 30.          _________________
                                                                _____________                            INITIALS _________________
[ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS TO THE  [ ] PARTIAL     ----------------------------------------------------
                                 CONTRACT EXCEPT AS NOTED           [ ] FINAL   32. PAID BY          33. AMOUNT VERIFIED CORRECT FOR

-------------  -------------------------------------------------  -------------                      -------------------------------
    DATE              SIGNATURE OF AUTHORIZED GOVERNMENT          31. PAYMENT                        34. CHECK NUMBER
                      REPRESENTATIVE
----------------------------------------------------------------  [ ] COMPLETE                       -------------------------------
36. I certify this account is correct and proper for payment          [ ] PARTIAL                    35. BILL OF LADING NO.
                                                                  [ ] FINAL
-------------  -------------------------------------------------
    DATE           SIGNATURE AND TITLE OF CERTIFYING OFFICER
------------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT     38. RECEIVED BY       39. DATE RECEIVED  40. TOTAL CONTAINERS  41. S/R ACCOUNT NUMBER   42. S/R VOUCHER NO.

====================================================================================================================================
DD FORM 1155, JUN 94

</TABLE>
<PAGE>   62
--------------------------------------------------------------------------------
                           REFERENCE NO. OF DOCUMENT BEING CONTINUED       PAGE
CONTINUATION SHEET         N65236-99-A-7920/E014                             2
--------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
--------------------------------------------------------------------------------

SECTION B - SUPPLIES OR SERVICES AND PRICES

LABOR AND MATERIAL NECESSARY TO EVALUATE THE INSTALLATION AND OPERATION OF A
DIFFERENT AIR COMPRESSOR ON THE P-23 CFR TRUCK, NSN 4210-01-289-8987 IN
ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $20,740.13

THE PERIOD OF PERFORMANCE IS 02 JUNE 1999 THROUGH 30 SEPTEMBER 1999.

THE TECHNICAL POINT OF CONTACT AND INVOICE POINT OF CONTACT FOR THE GOVERNMENT
IS GEORGE SPELLMAN, CODE 30E, TELEPHONE (843) 974-5364.

<PAGE>   63
                                                                     PAGE 3 OF 5

                               STATEMENT OF WORK

                        ENGINEERING ANALYSIS AND STUDIES
                                       OF
                       P-23 CFR TRUCK COMPRESSOR RETROFIT

1.0  SCOPE:  This Statement of Work (SOW) defines the tasks necessary to
evaluate the installation and operation of a different air compressor on the
P-23 CFR truck, NSN 4210-01-289-8987. The P-23 CFR truck is a primary emergency
support vehicle used to support crash, fire suppression, and rescue operations.
If the air compressor fails to operate, the vehicle will become totally
disabled. Numerous systems on the P-23 depend on compressed air, i.e., brake
system, water pressure regulating system, tire inflation system, etc. The goal
of this effort is to retrofit a P-23 with a commercial air compressor system,
evaluate the integration requirements of the selected compressor, and evaluate
the operation and performance of the compressor relative to P-23 operations.
This effort also includes retrofit procedures for the compressor installation,
setup, and operation. The selection of the replacement compressor is based on
the results of TCS report, P-23 Air Compressor Failure Analysis, dated 30 May
1998.

1.1  Title:  Retrofit Procedures and Performance Analysis of a New Air
Compressor on the DOP P-23 CFR Truck, NSN 4210-01-289-8987.

1.2  Background:  The P-23 CFR Truck is a competitively acquired vehicle that
is the primary aircraft crash fire suppression vehicle for the USAF. This
sustaining engineering task is required to ensure that this vehicle can
continue to meet all of its mission requirements. The current air compressor
has had numerous failures and appears to be undersized. The air compressor is a
key component to the operation of the vehicle. Without the air compressor, the
vehicle is totally disabled. Numerous systems on the vehicle depend on
compressed air, including the brake system. An engineering study was conducted
by TCS to determine the cause of numerous failures of the P-23 air compressors.
One of the conclusions was that the current compressor is operating at maximum
performance in order to meet vehicle demand and operating specifications. One of
the recommendations of that study was to replace the current compressor with
one that operates at a lower RPM and has a higher reliability. There were two
suggested replacement air compressors. This study will recommend one of the
recommended compressors. The recommendation will be based on cost, reliability,
ease of installation, ability to meet vehicle demands, and ease of maintenance.
An implementation plan shall be proposed to include a list of materials and
procedures for the installation of the new compressor. With government
approval, an air compressor will be purchased and installed on a government
selected P-23. The goal of this task is to provide the P-23 with a reliable and
low maintenance air compressor to ensure mission readiness.

2.0  REFERENCE DOCUMENTS:

T.O. 36A12-17-11
T.O. 36A12-17-12
T.O. 36A12-17-14

<PAGE>   64
N65236-99-A-7920/E014                                                PAGE 4 OF 5

3.0  REQUIREMENTS: The contractor shall perform the following sustaining
engineering tasks.

     a.   Develop recommendation on replacement air compressor for the P-23
          based on TCS report, P-23 Air Compressor Failure Analysis, dated 30
          May 1998. Rationale and all data used to develop the recommendation
          will be provided to the government.

     b.   With government concurrence on the selected compressor, develop a
          recommended retrofit plan.

     c.   Purchase and install a prototype compressor system on a government
          selected P-23 to ensure compliance with all design specifications and
          operational requirements. Moody AFB is the target prototype base.

     d.   Provide a technical data package suitable for competitive procurement
          for any newly fabricated components.

     e.   Provide installation instructions in TCTO format suitable for field
          level installation of the compressor system.

     f.   Provide operational and maintenance instructions and illustrated parts
          breakdown for the compressor system if different from current
          compressor.

4.0  Deliverables: The contractor shall deliver to the government the following
items during the course of this task:

     a.   Monthly Status Reports

     b.   Final report including, as a minimum, results of the prototype
          installation, any problems and/or issues that occurred during the
          course of the project, and any recommendations for future
          installations.

     c.   A kit installation/procedures document including as a minimum,
          engineering drawings, recommended sources of supply for kit items,
          recommended installation procedures suitable for field level repair,
          number of hours to complete the task, recommendations on required
          tools and equipment, and recommendations on skill level and number of
          personnel required.

5.0  POINTS OF CONTACT:

The following shall serve as the technical Points of Contact (POCs):

               Steven Davis
               WR-ALC/LES
               225 Ocmulgee Ct.
               Robins AFB, GA 31098-1647
               (912) 926-6488, ext. 194
<PAGE>   65
N65236-99-A-7920/E014                                                PAGE 5 OF 5

                    Mary Zampa
                    WR-ALC/LES
                    225 Ocmulgee Ct.
                    Robins AFB, GA 31098-1647
                    (912) 926-6488 ext. 195
<PAGE>   66
<TABLE>
<S><C>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                    1. CONTRACT ID CODE                              PAGE OF PAGES
     AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                                1       2
-----------------------------------------------------------------------------------------------------------------------------------
2. AMENDMENT/MODIFICATION NO.       3. EFFECTIVE DATE        4. REQUISITION/PURCHASE REQ. NO.         5. PROJECT NO.
01                                  1999 JUL 14              N65236-9141-8F13
-----------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                            CODE  N65236         7. ADMINISTERED BY (If other than Item 6)         CODE
SPACE AND NAVAL WARFARE SYSTEMS CENTER       --------------                                                          --------------
P.O. BOX 190022
NORTH CHARLESTON, SC 29419-9022
POC: NANCY GARTNER   CODE:  1113NG                              SAME AS BLOCK 6
EMAIL: gartnern@spawar.navy.mil
TELEPHONE: (843) 974-5921
-----------------------------------------------------------------------------------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)     (X) 9A. AMENDMENT OF SOLICITATION NO.
                                                                                ---
      TELECOMMUNICATION SYSTEMS, INC.                                               -----------------------------------------------
      275 WEST STREET                                                               9B. DATED (SEE ITEM 11)
      SUITE 400
      ANNAPOLIS, MD  21401                                                       --------------------------------------------------
                                                                                    10A. MODIFICATION OF CONTRACT/ORDER
                                                                                 [X]     NO.
                                                                                    N65236-99-A-7920/E013
                                                                                    -----------------------------------------------
--------------------------------------------------------------------------------    10B. DATED (SEE ITEM 13)
CODE      0HAL7                         FACILITY CODE                               1999 MAY 21
-----------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
-----------------------------------------------------------------------------------------------------------------------------------
[ ] The above numbered solicitation is amended as set forth in Item 14.4 The hour and date specified for receipt of Offers [  ] is
extended, [  ] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods: (a) By completing Items 8 and 15, and returning ____ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an
offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the
solicitation and this amendment, and is received prior to the opening hour and date specified.
-----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)                                 NET DECREASE
ACR:AA 97X4930.N63S  000  77777 0 065236  2F  000000  B91418F13AAN                  $117,137.37
JOB ORDER: BMU93M9A33
-----------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS
                                      IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
-----------------------------------------------------------------------------------------------------------------------------------
(X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT/
----     ORDER NO. IN ITEM 10A.
[ ]
-----------------------------------------------------------------------------------------------------------------------------------
[ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office,
         appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

-----------------------------------------------------------------------------------------------------------------------------------
[X]  C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
     MUTUAL AGREEMENT OF THE PARTIES
-----------------------------------------------------------------------------------------------------------------------------------
[ ]  D. OTHER (Specify type of modification and authority)

-----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT: Contractor [ ] is not, [X] is required to sign this document and return ORIGINAL copies to the issuing office.
-----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter
    where feasible.)

                                                             SEE PAGE 2

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
-----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)               16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

     JEFF JOCKEL                                            NANCY GARTNER
-----------------------------------------------------------------------------------------------------------------------------------
15B. CONTRACTOR/OFFEROR                 15C. DATE SIGNED    16B. UNITED STATES OF AMERICA                         16C. DATE SIGNED

BY  /s/ JEFF JOCKEL                        14 JUL 99        BY /s/ NANCY GARTNER                                   99 Jul 15
   ---------------------------------------                     ----------------------------------------
  (Signature of person authorized to sign)                     (Signature of Contracting Officer)
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                      STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   67
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E013             PAGE 2 OF 2
MODIFICATION NO.                   01
================================================================================

1.   The above referenced GSA BPA order is hereby being deobligated in the
amount of $117,137.37.

2.   As a result of the above, the total not to exceed amount of the order is
hereby changed from $229,583.43 to $112,446.06, a net decrease of $117,137.37.

<PAGE>   68
<TABLE>
===================================================================================================================================
<S>                                                           <C>                           <C>
           ORDER FOR SUPPLIES OR SERVICES                     FORM APPROVED OMB             PAGE 1 OF
                                                              NO. 0704-0187                    4
                                                                                            -------------
                                                              EXPIRES JUN 30, 1997          5. CERTIFIED FOR
==================================================================================             NATIONAL DEFENSE
    Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the
collection of information. Send comments regarding this burden estimates or any other aspect of the collection of information,
including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for
Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of
Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.
                         PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                  SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S>                             <C>                       <C>                  <C>                                 <C>
1. CONTRACT/PURCH ORDER NO.     2. DELIVERY ORDER NO.     3. DATE OF ORDER     4. REQUISITION/PURCH REQUEST NO.    UNDER DMS REG 1
   GS-35F-4655H                                                                                                         DO
   N65236-99-A-7920                E013                      1999 MAY 21          N65236-9141-8F13
-----------------------------------------------------------------------------------------------------------------------------------
6. ISSUED BY                    CODE  N65236              7. ADMINISTERED BY (if other than 6)  CODE               8. DELIVERY FOB
                                     ----------------                                               -----------
SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                              [X] DEST
P.O. BOX 190022                                                                                                     [ ] OTHER
NORTH CHARLESTON, SC 29419-9022                             SAME AS BLOCK 6                                         (See Schedule
POC: NANCY GARTNER   CODE: 1113NG                                                                                    if other)
EMAIL: gartnern@spawar.navy.mil
TELEPHONE: (843) 974-5921
-----------------------------------------------------------------------------------------------------------------------------------
9. CONTRACTOR            CODE 0HAL7         FACILITY CODE               10. DELIVERY TO FOB POINT BY(Date)   11. MARK IF BUSINESS IS
                              ---------                  ----------         SEE SCHEDULE                     [ ] SMALL
   Name      TELECOMMUNICATION SYSTEMS INC                              ----------------------------         [ ] SMALL DISADVANTAGED
   and       275 WEST STREET                                            12. DISCOUNT TERMS                   [ ] WOMEN-OWNED
   Address   SUITE 400                                                      NET 30
             ANNAPOLIS, MD 21401                                        -----------------------------------------------------------
             TELEPHONE NO: (410) 280-1236                               13. MAIL INVOICES TO:
                                                                            SAME AS BLOCK 19
-----------------------------------------------------------------------------------------------------------------------------------
14. SHIP TO              CODE                            15. PAYMENT WILL BE MADE BY    CODE  068688
                              ----------                                                      -------          MARK ALL
  CYPRESS GROUP                                              DFAS-SD OPLOC                                   PACKAGES AND
  5850A WEST CYPRESS STREET                                  CODE FPV                                        PAPERS WITH
  TAMPA, FL 33607                                            PO BOX 429100                                   CONTRACT OR
  M/F: N65236-99-A-7920/EO13                                 SAN DIEGO, CA 92142-9100    EFT: T              ORDER NUMBER
-----------------------------------------------------------------------------------------------------------------------------------
16.       DELIVERY     [X]      This delivery order is issued on another Government agency or in accordance with and subject to
  TYPE                          terms and conditions of above numbered contract.
   OF    --------------------------------------------------------------------------------------------------------------------------
 ORDER    PURCHASE     [ ]
                          Reference your       furnish the following on terms specified herein.
                          ---------------------------------------------------------------------------------------------------------
                          ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                          PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                          TO PERFORM THE SAME.

  --------------------------------    -----------------------------------   ------------------------------   ---------------------
        NAME OF CONTRACTOR                         SIGNATURE                    TYPED NAME AND TITLE             DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
==================================================================================================================================
17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
  ACR:AA  97X4930.NH3S  000  77777  0  065236  2F  000000  B91418F13AAN                                    $229,583.43
  JOB ORDER; 8MU93M9A33 (WK4E3R99PJ69968)
==================================================================================================================================
18.                   19.                                     20. QUANTITY      21.            22. UNIT       23.
   ITEM NO.           SCHEDULE OF SUPPLIES/SERVICES               ORDERED/      UNIT               PRICE          AMOUNT
                                                                  ACCEPTED
----------------------------------------------------------------------------------------------------------------------------------
                      SEND ORIGINAL & 2 COPIES OF
                      THE INVOICES TO:
                      SPAWARSYSCEN, CHARLESTON
                      ATTN: CODE 123 (FINANCE)
                      PO BOX 190022
                      N. CHARLESTON, SC 29419-9022                                                                 NTE
==================================================================================================================================
                                                      24. UNITED STATES OF AMERICA              25. TOTAL      $229,583.43
 *If quantity accepted by the Government is same as                                             ----------------------------------
quantity ordered indicate by X. If different, enter      /s/ Nancy Gartner                      29.
actual quantity accepted below quantity ordered and                                             DIFFERENCES   --------------------
encircle.                                                 BY:  NANCY GARTNER CONTRACTING/                     --------------------
                                                                       ORDERING OFFICER
----------------------------------------------------------------------------------------------------------------------------------
26. QUANTITY IN COLUMN 20 HAS BEEN                         27. SHIP. NO.    28. D.O. VOUCHER NO.   30.
                                                                                                   INITIALS   --------------------
 [ ] INSPECTED  [ ] RECEIVED  [ ] ACCEPTED, AND CONFORMS   --------------                                     --------------------
                                TO THE CONTRACT EXCEPT     [ ] PARTIAL      ------------------------------------------------------
                                AS NOTED                   [ ] FINAL        32. PAID BY            33. AMOUNT VERIFIED CORRECT FOR
                                                           --------------
------------   ------------------------------------------  31. PAYMENT                             -------------------------------
    DATE       SIGNATURE OF AUTHORIZED GOVERNMENT           [ ] COMPLETE                           34. CHECK NUMBER
               REPRESENTATIVE                               [ ] PARTIAL
---------------------------------------------------------   [ ] FINAL                              -------------------------------
36. I certify this account is correct and proper for payment                                       35. BILL OF LADING NO.

------------   ------------------------------------------                                          -------------------------------
    DATE       SIGNATURE AND TITLE OF CERTIFYING OFFICIAL
----------------------------------------------------------------------------------------------------------------------------------
37. RECEIVED AT       38. RECEIVED BY     39. DATE RECEIVED     40. TOTAL CONTAINERS    41. S/R ACCOUNT        42. S/R VOUCHER NO.
                                                                                           NUMBER
==================================================================================================================================
DD FORM 1155, JUN 94
</TABLE>
<PAGE>   69

<TABLE>
<S>                                                       <C>                                                           <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                          N65236-99-A-7920/E013                                          2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES TO PROVIDE PROMINA NODES FOR JCSE IN ACCORDANCE WITH THE ATTACHED
STATEMENT OF WORK.

FIRM FIXED PRICE: $229,583.43

THE PERIOD OF PERFORMANCE IS 21 MAY 1999 THROUGH 30 SEPTEMBER 1999
<PAGE>   70
N65236-99-A-7920/E013                                       PAGE 3 OF 4

                               STATEMENT OF WORK
                             PROMINA NODES FOR JCSE

1.  SCOPE. This Statement of Work (SOW) defines the technical support required
to fabricate special equipment racks for seven systems in support of the Joint
Communication Support Element (JCSE).

2.  REQUIREMENT. SPAWARSYSCEN CHASN-JOTC shall fabricate and integrate specific
equipment into fixed plant racks. These rack systems shall be configured and
tested per JCSE guidance. SPAWASRSYSCEN CHARN-JOTC shall coordinate the
following activities with J-5 Branch:

         2.1.     J-5 Branch shall provide a complete list of wiring diagrams,
                  equipment and site specific layouts to SPAWARSYSCEN
                  CHASN-JOTC prior to system build. This documentation will be
                  used to create a Bill of Materials (BOM) for JCSR; any
                  changes made by JCSE that may adversely affect the final BOM
                  will be the responsibility of JCSE.

         2.2.     SPAWARSYSCEN CHASN-JOTC shall procure contractor furnished
                  equipment (CFE) designated by J-5 as listed in paragraph 5
                  and in the site specific list of material (attached).

         2.3.     Subsequent to the delivery of GFE, SPAWARSYSCEN CHASN-JOTC
                  shall install into 19" fixed plant racks: Promina 400
                  (Dual/Single Shelf), GPS receiver, trompeter patch panel, CAT
                  5 patch panel (MRVCs), CV-2048 Group modems, KIV-7 racks
                  (size is site specific), HNF-81-1 (JCSE J-5 provided), UPSI
                  Uninterruptible Power Sources (UPS) power strips, fan tray,
                  Pairgain shelves. Sufficient space as designated by J-5 shall
                  be retained for further equipment installation by JCSE
                  personnel.

         2.4.     J-5 shall supply SPAWARSYSCEN CHASN-JOTC with wiring diagrams
                  and pin-outs for any and all cables prior to build of these
                  cables.

         2.5.     De-install Government provided HNF-81-1 Crypto Racks from
                  existing JCSE systems and re-install into 19" rack
                  enclosures. This includes all government and Contractor
                  provided associated cabling.

         2.6.     Provide a detailed List of Materials (LOM) for each site
                  equipment rack to include equipment, quantity, cost, and
                  procurement activity: GFE J-5, User, CFE, or others.

3.  TESTING: SPAWARSYSCEN CHASN-JOTC will perform functional and acceptance
test of each site equipment rack prior to deployment. J-5 personnel shall be
responsible for operational readiness list of each site.

4.  LOGISTICS SUPPORT: N/A

5.  GOVERNMENT AND CONTRACTOR FURNISHED EQUIPMENT (GFE/CFE): J-5 shall provide
all GFE (i.e., Promina Nodes, HNF-81-1 racks, Encryption devices, GPS
specifications, wiring diagrams, specifications of cables/quantity,
specifications on racks size limitations, rack configuration chart, patch panel
layouts, specifications, etc.). the following shall be CFE:

         a.       DB25 Male to DB25 Male, pinned straight through, overall
                  shield
         b.       19" Rackmount Shelves, Black, Ventilated (for Pairgains)
         c.       DB25 Fem to Fem Gender Changers
         d.       DB25 Male to Male Gender Changers
         e.       GPS (specified by J-5)
         f.       19" racks full and half height racks
         g.       Fan assemblies
         h.       UPS w/rails
         i.       CV-2048 w/shelf and two CV-2048 lighting protectors
         j.       KIV-7 racks (Dual/8 count)

<PAGE>   71
         k.       Power Strips
         l.       Patch panels (Trompeter)
         m.       CAT 5 Patch Panels (for MRVCs)
         n.       Rackmount brackets for:
                  1. MRVCs
                  2. Cisco routers
         o.       Twinax cable, miscellaneous connectors, pieces and parts as
                  required
         p.       DC power supply wiring

6.  DELIVERY: The projected completion date is 30 SEP 1999. The actual
completion date is dependent on the delivery of all GFE. SPAWARSYSCEN
CHASN-JOTC is not responsible for delay in the procurement and delivery of GFE.

CONTRACTOR FURNISHED EQUIPMENT: Government requested procured equipment and
material only.

CONTRACTOR RESPONSIBILITY: Contractor shall provide working space for
fabrication and testing of equipment racks/system. Contractor shall also be
responsible for accountability, storage and securing of all GFE and procured
equipment/material.

<PAGE>   72
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  02                                   1999 AUG 26                 N65236-9141-8F14
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                               NO.
                                                                                     [X]   N65236-99-A-7920/E012
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           OHAL7                         FACILITY CODE                                1999 MAY 21
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to
change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference
to the solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
     ACR:AA  97X4930.NH3S  000  77777  0  065236  2F  000000  B91418F14AAN                                 $31,000.00
     JOB ORDER: BMU93P9T47 (W80ITU990M04926)
------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
           MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

                                                                 SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

      Jeffrey C. Jockel, Contracts Manager                                            NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  26 AUG 99
 /s/ JEFFREY JOCKEL                                                               /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    27 Aug 99
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   73
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E012                                                          PAGE 2 OF 2
MODIFICATION NO.                   02
====================================================================================================================================
     1.   The original Statement of Work is hereby modified as follows:

          PHASE 2B

          Delete (1) Remote Access Server
          Replace Cisco 7204 Router with Cisco 3640 Router
          Procure (12) SKB Transport Cases
          Procure (30) Support Cases
          Procure (12) Lockable Slide Out Shelves
          Procure (6) copies of Microsoft BackOffice Small Business Server 4.5 (Open Licenses) and (2) 5 Client Add-on Packs.
            Additionally, (1) copy of media will be required.

     2.   As a result of the above changes, the total not to exceed amount of the order is hereby changed from $824,091.46 to
          $855,091.46, a net increase of $31,000.00.
</TABLE>
<PAGE>   74
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  01                                   1999 JUL 30                 N65236-9141-8F14
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022                                                                              ACCTING
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6               TATONKA
  POC: NANCY GARTNER   CODE: 1113NG                                                            TAMPA
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET                                                                  2015-012
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                              NO.
                                                                                     [X]   N65236-99-A-7920/E012
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 MAY 21
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to
change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference
to the solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
     ACR:AA  97X4930.NH3S  000  77777  0  065236  2F  000000  B91418F14AAN                                 $357,523.87
     JOB ORDER: BMU93P9T47 (W80ITU990M04926)
------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF:
           MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

                                                                 SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

      Jeffrey Jockel, Contracts Mgr                                             NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  3 AUG 99
               [SIG]                                                              /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 Aug 03
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   75
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E012                                                          PAGE 2 OF 2
MODIFICATION NO.                   01
====================================================================================================================================
     1.   The above referenced GSA BPA order is hereby being increased in the amount of $357,523.87 as follows:

          USASPO PHASE 2 -- $182,523.87
           (additional labor, travel and material)

          USASPO PHASE 2A -- $175,000.00
           (additional equipment as follows)
               KIV-7HS -- 18 EACH
               KIV-7HS STAND ALONE POWER SUPPLY -- 18 EACH
               STU-1910 -- 18 EACH
               STU-1910 STAND ALONE POWER SUPPLY -- 18 EACH

     2.   As a result of the above, the total not to exceed amount of the order is hereby changed from $466,567.59 to $824,091.46,
          a net increase of $357,523.87.
</TABLE>
<PAGE>   76
<TABLE>
<S>                                                                                                                            <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved                     PAGE 1 OF  6
                       ORDER FOR SUPPLIES OR SERVICES                       OMB No. 0704-0187                 --------------------
                                                                            Expires Jun 30, 1997              CERTIFIED FOR
                                                                                                              NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH ORDER NO.   2. DELIVERY ORDER NO.      3. DATE OF ORDER    4. REQUISITION/PURCH  REQUEST NO.  UNDER DMS REG 1
GS-35F-4655H                                                                                                         DO
  N65236-99-A-7920               E012                      1999 MAY 21         N65236-9141-8F14
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE   N65236     7. ADMINISTERED BY (If other than 6) CODE                    8.DELIVERY FOB
                                   -------
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                    [x] DEST
 P.O. BOX 190022                                                                                           [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022                      SAME AS BLOCK 6                                      (See Schedule if other)
 POC: NANCY GARTNER  CODE:1113NG
 E-MAIL:gartnern@spawar.navy.mil
        ------------------------
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR               CODE   0HAL7      FACILITY CODE      10. DELIVER TO FOB POINT BY (Date)      11. MARK IF BUSINESS IS
                                    -----
                                                                                                          [ ] SMALL
                                                                  SEE SCHEDULE                            [ ] SMALL DISADVANTAGED
                                                                  --------------------------------------  [ ] WOMEN-OWNED
 NAME       TELECOMMUNICATIONS SYSTEMS INC          TAKOMA        12. DISCOUNT TERMS
 and        275 WEST STREET                         ACCOUNTING    NET 30
 ADDRESS    SUITE 400                               TAMPA         --------------------------------------
            ANNAPOLIS, MD  21401                                  13. MAIL INVOICES TO:

                                                                  SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY    CODE      068688
                                                                                               ------
                                                                                                                    MARK ALL
     CYPRESS GROUP                                        DFAS-SD OPLOC                                           PACKAGES AND
     5850A WEST CYPRESS STREET                            CODE FPV                                                 PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 429100                                            CONTRACT OR
     M/F: N65236-99-A-7920/E012                           SAN DIEGO, CA 92142-9100            EFT:T               ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVER  [X]  This delivery order is issued on another Government agency or in accordance with and subject to terms and
   TYPE                 conditions of above numbered contract.
    OF   -------------------------------------------------------------------------------------------------------------------------
  ORDER            [ ]
          PURCHASE      Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND AGREES
                        TO PERFORM THE SAME.
 ---------------------

    ------------------------    -----------------------    ------------------------------------     ------------------------------
        NAME OF CONTRACTOR             SIGNATURE                    TYPED NAME AND TITLE                    DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA 97X4930.NH3S  000  77777  0  065236  2F  000000 B91418F14AAN                          $466,567.59
 JOB ORDER: BMU93P9T47 (W80ITU990M04926)
 ---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                          20. QUANTITY          21.         22.                23.
 ITEM NO.         SCHEDULE OF SUPPLIES/SERVICES                  ORDERED/         UNIT        UNIT PRICE             AMOUNT
                                                                 ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
                  SEND ORIGINAL & 2 COPIES OF
                  THE INVOICES TO:
                  SPAWARSYSCEN, CHARLESTON        DUPLICATE ORIGINAL
                  PO BOX 190022
                  N. CHARLESTON,SC 29419-9022                                                                        NTE
 ---------------------------------------------------------------------------------------------------------------------------------
 If quantity accepted by the Government is same as     24. UNITED STATES OF AMERICA                      25. TOTAL   $466,567.59
 quantity ordered, indicate by X. If different, enter       /s/ NANCY GARTNER                             ------------------------
 actual quantity accepted below quantity ordered and        ----------------------                       29.         -------------
 encircle.                                             BY:   NANCY GARTNER  CONTRACTING/ORDERING OFFICER DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN                           27. SHIP. NO.         28. D.O. VOUCHER NO. 30.
                                                                                                         INITIALS    -------------
                                                            -----------------
                                                                                                                     -------------
 [] INSPECTED [] RECEIVED [] ACCEPTED, AND  CONFORMS TO THE   [ ] PARTIAL           ----------------------------------------------
                             CONTRACT EXCEPT AS NOTED             [ ] FINAL         32. PAID BY          33. AMOUNT VERIFIED
                                                            -----------------                            CORRECT FOR
-------  -------------------------------------------------- 31. PAYMENT
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT                [ ] COMPLETE                                 ------------------------
          REPRESENTATIVE                                       [ ] PARTIAL                               34. CHECK NUMBER
 ---------------------------------------------------------- [ ] FINAL
                                                                                                         ------------------------
 36. I certify this account is correct and proper                                                        35. BILL OF LADING NO.
     for payment.
                                                                                                         ------------------------
------   --------------------------------------------------
 DATE     SIGNATURE AND TITLE OF CERTIFYING OFFICER
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40. TOTAL CONTAINERS  41. S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                             NUMBER

 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   77
<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E012                                 2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES TO PROVIDE USASPO WIDE AREA NETWORK ANALYSIS AND DESIGN IN ACCORDANCE
WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $466,567.59

THE PERIOD OF PERFORMANCE IS 21 MAY 1999 THROUGH 30 SEPTEMBER 1999

<PAGE>   78
N65236-99-A-7920/E012                                                PAGE 3 OF 6

                                STATEMENT OF WORK
                                     USASPO
                               WIDE AREA NETWORK
                               ANALYSIS & DESIGN

1.  BACKGROUND. The United States Army Systems Performance Office (USASPO) has
a requirement to connect multiple users and sites to a Headquarters Local Area
Network (LAN). This connectivity entails the Local Area and Wide Area Hardware,
Software, Communication Links, and the appropriate procedures to ensure
seamless interoperability.

2.  SCOPE/OBJECTIVE. The purpose of this Statement of Work (SOW) is to provide
for:

a.  Engineering to determine the equipment and configuration of the remote site
rack-mounted data communication suites.

b.  Engineering to determine equipment and configuration of central site rack
mounted data communication suite.

c.  Integration of Government Furnished Equipment and COTS equipment and
software for a lab version of the remote site suite of data communication
equipment.

d.  Integration of Government Furnished Equipment and COTS equipment and
software for a lab version of the central site suite of data communication
equipment.

e.  Training on the setup and utilization of all lab equipment in conjunction
with, and culminating in, system accreditation.

f.  Procurement of "long lead items" to build five remote site data
communication suites (based on accredited system).

g.  Procurement of "long lead items" to build/integrate one central site data
communication suite (based on accredited system).

h.  Provision of other lab equipment as required.

3.  REQUIREMENTS/TASKS TO BE PERFORMED: SSC Charleston-JOTC shall provide:

a.  A design of central and remote site suites of equipment. The remote site
suite shall contain:

         1.       1 Multimedia Server (GFE)

         2.       1 INMARSAT Explorer II (SSC Charleston-JOTC provided)

         3.       2 KIV-7's (SSC Charleston-JOTC provided)

         4.       1 Pulse Engineering KIV-7 rack (SSC Charleston-JOTC provided)

         5.       2 Data STU-III 1910s with Power Supply and rack (SSC
                  Charleston-JOTC provided)

         6.       1 Cisco 2514 with appropriate cables V.35 cable, IP feature
                  set, and rack mount assembly and Smartnet Maintenance (SSC
                  Charleston-JOTC provided)

         7.       1 Power Strip (GFE)

         8.       1 12 Port 10BASET Hub (GFE)

         9.       1 1000VA UPS (GFE)

         10.      1 Roll-about rack (GFE)
<PAGE>   79
N65236-99-A-7920/E012                                               PAGE 4 OF 6

The design of the remote site suite of equipment shall provide for:

a.       The ability for multiple users to access the multimedia server.

b.       The ability for all users to send and receive encrypted high speed data
         (64 kbps) utilizing the INMARSAT-B terminal via the KIV-7s.

c.       The ability for multiple users to send and recieve encrypted low-speed
         data over DSN via the STU-III 1910s

d.       The ability for dial-on-demand routing (DDR) to be accomplished (over
         the INMARSAT and STU-111's) via the Cisco-2514.

e.       The ability for all equipment to utilize an UPS.

f.       All equipment shall be configured in such a way as to provide minimal
         (if any) user intervention to accomplish these tasks. The preference
         would be for a user to click desktop icons to perform high and low
         speed transmission. DDR shall be configured by the SSC Charleston-JOTC
         prior to system shipment to remote sites.

g.       The configuration of remote site suite of equipment (lab) and remote
         site suite of equipment (actual) shall be exactly the same.

The Central site suite of equipment (LAB Version) shall contain:

a.       1 Rackmount Remote Access Server (RAS) with Windows NT installed (SSC
         Charleston-JOTC provided). The Server configuration/manufacturer shall
         be determined by the Government. SSC Charleston-JOTC shall provide
         recommendations.

b.       2 KIV-7's (SSC Charleston-JOTC provided)

c.       1 Pulse Engineering 2-bay KIV-7 rack (SSC Charleston-JOTC provided)

d.       2 Data STU-III 1910's with power supply and chassis (SSC Charleston-
         JOTC provided)

e.       1 Cisco 2514 with V.35 cable, IP feature set, Smartnet Maintenance, and
         rack mount assembly (SSC Charleston-JOTC provided)

f.       1 Adtran NT-1 Chassis (SSC Charleston-JOTC provided)

g.       2 Adtran NT-1 Cards (SSC Charleston-JOTC provided)

h.       1 Power Strip (GFE)

i.       1 12 Port 10BASET Hub (GFE)

j.       1 1400VA UPS (GFE)

k.       1 Equipment Rack (SSC Charleston-JOTC provided)

The design of the central site suite of equipment shall provide for:

a.       The ability for all remote users to access the USASPO HQ LAN via Remote
         Access Server. This assumes that the equipment will be configured so as
         to allow for the translation of ISDN INMARSAT originated), encrypted
         data into Serial Synchronous data, unencrypted, and authenticated by
         the Remote Access Server. This access will be accomplished via either
         the NT-1 or the STU-III 1910 based on origination.

b.       The ability for all equipment to utilize an UPS.

c.       The configuration of central remote site of equipment (lab) and central
         site suite of equipment (actual) shall be exactly the same.

<PAGE>   80
N65236-99-A-7920/E012                                            PAGE 5 OF 6

The central site suite of equipment (lab) will have the same components as the
actual central site suite of equipment except for quantity differences. The
actual central site suite of equipment shall contain:

a.       1 Remote Access Server with Windows NT installed (SSC Charleston-JOTC
         provided)
b.       8 KIV-7's (SSC Charleston-JOTC provided)
c.       1 Pulse Engineering 8-bay KIV-7 rack (SSC Charleston-JOTC provided)
d.       15 Data STU-III 1910s with chassis and power supply (SSC
         Charleston-JOTC provided)
e.       1 Cisco 7204 with appropriate cables, IP feature set, and rack mount
         assembly (SSC Charleston-JOTC provided)
f.       1 Adtran NT-1 Chassis (SSC Charleston-JOTC provided)
g.       5 Adtran NT-1 Cards (SSC Charleston-JOTC provided)
h.       1 Power Strip (GFE)
i.       1 12 Port 10BASET Switch Hub (GFE)
j.       1 1400 VA UPS (GFE)
k.       1 Equipment Rack (SSC Charleston-JOTC provided)

b. Upon design acceptance of the lab suites of equipment, SSC
Charleston-JOTC shall configure and deliver the equipment to USASPO
Headquarters, install it in the lab, train users on set-up and operation
procedures and be available for additional assistance during the accreditation
process.

c. Upon completion of accreditation of the lab suites of equipment, SSC
Charleston-JOTC shall procure, integrate and install the central site suite of
equipment (actual). In addition, SSC Charleston-JOTC shall train users on the
set-up and operation of this equipment.

d. SSC Charleston-JOTC shall provide 5 configured, remote suites of
equipment to USASPO for deployment.

DELIVERABLES

1. Implementation Plan. This plan will be created using Microsoft Project.
   It will provide a time line for the procurement, installation and
   integration of all equipment associated with this project.

2. Engineering Design for Remote and Central0Site suites of equipment
   (LAB). This report will detail, both graphically and narratively the:

         a.       Equipment components
         b.       Equipment connectivity

3. Engineering Design for Central-Site suite of equipment (actual). This
   report will detail, both graphically and narratively the:

         a.       Equipment components
         b.       Equipment connectivity

4. Remote Site Operations Manual. This manual will detail the set-up and
   installation of the remote site suite of equipment.

5. Test and Acceptance Plan. This plan will provide for a thorough test of
   all components of each system. Testing will be accomplished with SSC
   Charleston-JOTC and Government personnel.

6. Budget. This budget will delineate all costs for labor, travel and
   equipment associated with this project.
<PAGE>   81
N65236-99-A-7920/E012                                            PAGE 6 0F 6

SECURITY

All SSC Charleston-JOTC personnel shall possess a TS/SCI clearance. A list of
all personnel associated with this project shall be submitted to USASPO for
acceptance prior to commencement of work.

Y2K VERIFICATION

SSC Charleston-JOTC warrants that all telecommunications, computer hardware,
firmware, and software products provided hereunder will accurately process,
prior to, during and after the year 2000 all:

         1.       Related data
         2.       Dates before, on or after January 1, 2000, to include but not
                  limited to accurately inputting, storing, manipulating,
                  comparing, calculating, updating, recording, displaying,
                  outputting, and transferring such dates and data. SSC
                  Charleston-JOTC shall provide verification that the operating
                  systems software being delivered is compliant with the
                  customer Year 2000 requirements. Validation of software will
                  be scheduled for customer verification and monitoring.

PERIOD OF PERFORMANCE

The period of performance for this Statement of Work shall commence on date of
award and continue through 30 September 1999.
<PAGE>   82
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  01                                   1999 AUG 03                 N65236-9119-8F29
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                              NO.
                                                                                     [X]   N65236-99-A-7920/E011
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
---------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 MAY 06
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an
offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the
solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NO CHANGE

------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [X]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [X] is not,  [ ] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

                                                                 SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

                                                                        NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED

                                                                                  /S/NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 Aug 03
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   83
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E011                                                          PAGE 2 OF 2
MODIFICATION NO.                   01
====================================================================================================================================
     1.   The line of accounting in Block 17 on the original DD Form 1155 is hereby changed to read as follows:

     ACR:AA  5793080 179 4750 835148 000000 00000 21131F 503000 F78100
             FSR:041283 PSR:591219 DSR:042606
             JOB ORDER: BJB93X9Q44 (F78100996800043)(MIPR NUMBER DIGX996800043)

     2.   The paying office in Block 15 on the original DD Form 1155 is hereby changed to read as follows:

            DFAS-DY AOG
            1050 FORRER BLVD.
            DAYTON, OH 45420-1472

     3.   As a result of the above changes, the total not to exceed amount of the GSA/BPA order remains unchanged.
</TABLE>
<PAGE>   84
<TABLE>
<S>                                                                                                          <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            FORM APPROVED
                       ORDER FOR SUPPLIES OR SERVICES                       OMB NO. 0704-0187                  PAGE 1 OF
                                                                            EXPIRES JUN 30, 1997                  4
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                               5. CERTIFIED FOR
                                                                                                               NATIONAL DEFENSE
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH           2. DELIVERY ORDER          3. DATE OF ORDER          4. REQUISITION/PURCH     UNDER DMS REG 1
     ORDER NO.                   NO.                                                 REQUEST NO.
     GS-35F-4655H
     N65236-99-A-7920            E011                       1999 MAY 06              N65236-9119-8F29              DO
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE  N65236      7. ADMINISTERED BY (If other than 6) CODE
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022                                                                                             8.DELIVERY FOB
  NORTH CHARLESTON, SC 29419-9022             SAME AS BLOCK 6                                                 [X] DEST
  POC: NANCY GARTNER CODE: 1113NG                                                                             [ ] OTHER
  EMAIL: gartnern@spawar.navy.mil                                                                             (See Schedule if
  TELEPHONE: (843) 974-5921                                                                                     other)
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR                 CODE 0HAL7   FACILITY CODE                         10. DELIVER TO FOB POINT    11. MARK IF BUSINESS
                                                                                                                  IS
                                                                                      1999 JUN 30             [ ] SMALL
 NAME AND   TELECOMMUNICATIONS SYSTEMS INC                                        12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS    275 WEST STREET                                                           NET 30                      DISADVANTAGED
            SUITE 400   -                          -                              13. MAIL INVOICES TO:       [ ] WOMEN-OWNED
            ANNAPOLIS, MD 21401
                                                                                      SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
                                                                                                                  PACKAGES AND
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PAPERS WITH
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        CONTRACT OR
     TAMPA, FL 33607                                      PO BOX 2000009                                          ORDER NUMBER
     M/F: N65236-99-A-7920/E011                           ST. LOUIS, MO 63120-0009      EFT: T
 ---------------------------------------------------------------------------------------------------------------------------------
 16.
   TYPE                This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER DELIVERY[X]  conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE[ ]  Reference your                furnish the following on terms specified herein.
                       -----------------------------------------------------------------------------------------------------------
                       ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                       PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                       AGREES TO PERFORM THE SAME.
 ---------------------------------------------------------------------------------------------------------------------------------
        NAME OF CONTRACTOR      SIGNATURE       TYPED NAME AND TITLE          DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA 2192035 62 7510 52122930 252G S28043 PRON:A1-9-05026-1G-01 JON:9RCYJC                                         $147,378.17
 JOB ORDER: BJB93X9Q44 (F78100996800043/AA) MIPR9ESPARC004
 ---------------------------------------------------------------------------------------------------------------------------------
                                                            20. QUANTITY
 18.           19.                                              ORDERED/           21.         22.                23.
 ITEM NO.         SCHEDULE OF SUPPLIES/SERVICES                 ACCEPTED*             UNIT        UNIT PRICE         AMOUNT

                  MAIL INVOICES TO:
                  SPAWAR
                  CODE 123
                  PO BOX 190022
                  N. CHARLESTON, SC 29419-9022
                                                                                                                        NTE
----------------------------------------------------------------------------------------------------------------------------------
 If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA
 quantity ordered, indicate by X. If different, enter
 actual quantity accepted below quantity ordered and           /s/NANCY GARTNER
 encircle.                                               BY:   NANCY GARTNER                             25. TOTAL $147,378.17
                                                               CONTRACTING/ORDERING OFFICER              -------------------------
                                                                                                         29.
                                                                                                         DIFFERENCES

 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [] INSPECTED [] RECEIVED [] ACCEPTED, AND  CONFORMS TO THE
                             CONTRACT EXCEPT AS NOTED              27. SHIP. NO.
------------------------------------------------------------       [ ] PARTIAL         28. D.O. VOUCHER  30. INITIALS
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE       [ ] FINAL               NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment      31. PAYMENT

                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                            33. AMOUNT VERIFIED
 ------------------------------------------------                  [ ] FINAL           32. PAID BY        CORRECT FOR
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICIAL                                                         ------------------------
                                                                                                          34. CHECK NUMBER
                                                                                                          ------------------------
                                                                                                          35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40.TOTAL CONTAINERS  41.S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                        NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94
</TABLE>
<PAGE>   85
<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E011                                  2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES AND MATERIAL FOR TECHNICAL SUPPORT TO FABRICATE SPECIAL EQUIPMENT
RACKS FOR SEVEN (7) SYSTEMS IN SUPPORT OF THE JOINT COMMUNICATION SUPPORT
ELEMENT (JCSE) IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $147,378.17
<PAGE>   86
                                                                       12 MAR 99
                               STATEMENT OF WORK
                             PROMINA NODES FOR JCSE

1.  SCOPE:  This Statement of Work (SOW) defines the technical support required
to fabricate special equipment racks for seven systems in support of the Joint
Communication Support Element (JCSE).

2.  REQUIREMENT: SPAWARSYSCEN CHASN-JOTC shall fabricate and integrate specific
equipment into fixed plant racks. These rack systems shall be configured and
tested per JCSE guidance. SPAWARSYSCEN CHASN-JOTC shall coordinate the following
activities with J-5 Branch:

         2.1. J-5 Branch shall provide a complete list of wiring diagrams,
         equipment and site specific layouts to SPAWARSYSCEN CHASN-JOTC prior to
         system build. This documentation will be used to create a Bill of
         Materials (BOM) for JCSE; any changes made by JCSE that may adversely
         affect the final BOM will be the responsibility of JCSE.

         2.2. SPAWARSYSCEN CHASN-JOTC shall procure contractor furnished
         equipment (CFE) designated by J-5 as listed in paragraph 5 and in the
         site specific list of material (attachment).

         2.3. Subsequent to the delivery of GFE, SPAWARSYSCEN CHASN-JOTC shall
         install into 19" fixed plant racks: Promina 400 (Dual/Single Shelf),
         GPS receiver, Trompeter patch panel, CAT 5 patch panel (MRVCs), CV-2048
         Group modems, KIV-7 racks (size is site specific), HNF-81-1 (JCSE J-5
         provided), UPSI Uninterruptible Power Sources (UPS), power strips, fan
         tray, Pairgain shelves. Sufficient space as designated by J5 shall be
         retained for further equipment installation by JCSE personnel.

         2.4. J-5 shall supply SPAWARSYSCEN CHASN-JOTC with wiring diagrams and
         pin-outs for any and all cables prior to build of these cables.

         2.5. De-install government provided HNF-81-1 Crypto Racks from existing
         JCSE systems and re-install into 19" rack enclosures. This includes all
         government and contractor provided associated cabling.

         2.6. Provide a detailed List of Materials (LOM) for each site equipment
         rack to include equipment, quantity, cost, and procurement activity:
         GFE J-5, User, CFE, or others.

3.  TESTING:  SPAWARSYSCEN CHASN-JOTC will perform functional and acceptance
test of each site equipment rack prior to deployment. J-5 personnel shall be
responsible for operational readiness test of each site.

<PAGE>   87
4. LOGISTICS SUPPORT: N/A

5. GOVERNMENT AND CONTRACTOR FURNISHED EQUIPMENT (GFR/CFE): J-5 shall provide
all GFE (i.e. PROMINA Nodes, HNF-81-1 racks, Encryption devices, GPS
specifications, Wiring Diagrams, specifications of cables/quantity,
specifications on racks size limitations, rack configuration chart, patch panel
layouts, specifications, etc.). The following shall be CFE:

        1. DB25 Male to DB25 Male, pinned straight through, overall shield.
        2. 19" Rackmount Shelves, Black, Ventilated (for Pairgains).
        3. DB25 Fem to Fem Gender Changers.
        4. DB25 Male to Male Gender Changers.
        5. GPS (specified by J-5)
        6. 19" racks Full and Half height racks,
        7. Fan assemblies,
        8. UPS w/rails,
        9. CV-2048 w/shelf and two CV-2048 lighting protectors.
       10. KIV-7 racks (Dual/8 count),
       11. Power strips
       12. Patch panels (Trompeter)
       13. CAT 5 Patch Panels (for MRVCs)
       14. Rackmount brackets for:
                 a. MRVCs
                 b. Cisco routers
       15. Twinax cable, miscellaneous connectors, pieces and parts as required.
       16. D.C. power supply wiring.

6. DELIVERY: The projected completion date is 30 Jun 99. The actual completion
date is dependent on the delivery of all GFE. SPAWARSYSCEN CHASN-JOTC is not
responsible for delay in the procurement and delivery of GFE.

CONTRACTOR FURNISHED EQUIPMENT: Government requested procured equipment and
material only.

CONTRACTOR RESPONSIBILITY: Contractor shall provide working space for
fabrication and testing of equipment racks/system. Contractor shall also be
responsible for accountability, storage and securing of all GFE and procured
equipment/material.

COMPLETE LIST OF MATERIAL AND ESTIMATED COST FOR ALL SITES TO BE COMPLETED NLT
14 APRIL 99.
<PAGE>   88
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  01                                   1999 JUN 08                 N65236-9154-8F09
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                              NO.
                                                                                     [X]   N65236-99-A-7920/E010
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 APR 12
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an
offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the
solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
ACR:AB 2192035  62  7510  52122930  252G  S28043  PRON A1-9-05026-1G-01  JON: 9RCYJC                       $31,973.00
JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA
------------------------------------------------------------------------------------------------------------------------------------
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
(X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE ------
CONTRACT/ORDER NO. IN ITEM 10A. [ ]
------------------------------------------------------------------------------------------------------------------------------------
[ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office,
appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
[X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF: MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
[ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

                                                                 SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

      Jeffrey Jockell                                                           NANCY GARTNER
      Contracts Mgr.
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  8 JUN 99
 /s/ JEFFREY JOCKELL                                                              /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 JUN 09
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   89
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E010                                                          PAGE 2 OF 2
MODIFICATION NO.                   01
====================================================================================================================================
     1.   This constructive change order modification is being issued in accordance with FAR Clause 52.243-1 --
          Changes -- Fixed Price -- Alternate I (APR 1984).

     2.   The period of performance is hereby changed from 12 MAY 1999 to 30 SEP 1999.

     3.   As a result of the above, the total not to exceed amount of the order is hereby changed from $70,296.22 to $102,269.22,
          a net increase of $31,973.00.
</TABLE>
<PAGE>   90
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved
                       ORDER FOR SUPPLIES OR SERVICES                       OMB No. 0704-0187
                                                                            Expires Jun 30, 1997              PAGE 1 OF 3
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of the collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH           2. DELIVERY ORDER          3. DATE OF ORDER          4. REQUISITION/PURCH    UNDER DMS REG 1
     ORDER NO.                   NO.                                                 REQUEST NO.
     GS-35F-4655H                                                                                              DO
     N65236-99-A-7920            E010                    1999 APR 12               N65236-9097-8F11
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                       8.DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                       [X] DEST
 P.O. BOX 190022                                                                                              [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022               SAME AS BLOCK 6                                                (See Schedule if
 POC: NANCY GARTNER CODE 1113NG                                                                                 other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR                 CODE 0HAL7   FACILITY CODE                         10. DELIVER TO FOB POINT    11. MARK IF
                                                                                  BY (Date)                   BUSINESS IS
                                                                                                              [ ] SMALL
                                                                                  1999 MAY 12                 [ ] SMALL
                                                                                                                  DISADVANTAGED
 NAME AND       TELECOMMUNICATION SYSTEMS INC                                     12. DISCOUNT TERMS          [ ] WOMEN-OWNED
 ADDRESS        275 WEST STREET
                SUITE 400                                                         NET 30
                ANNAPOLIS, MD 21401
                                                                                  13. MAIL INVOICES TO:

                                                                                  SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                          CONTRACT OR
     M/F: N65236-99-A-7920/E010                           ST LOUIS, MO 63120-0009                     EFT: T      ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X] This delivery order is issued on another Government agency or in accordance with and subject to terms and
   TYPE                conditions of above numbered contract.
 OF ORDER
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]
                       Reference your                furnish the following on terms specified herein.
                       -----------------------------------------------------------------------------------------------------------
                       ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                       PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                       AGREES TO PERFORM THE SAME.

 ----------------------------------    ----------------------------    ----------------------------------   ----------------------
        NAME OF CONTRACTOR                      SIGNATURE                       TYPED NAME AND TITLE             DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA 2192035 62 7510 52122930 252G S28043 PRON:A1-9-05026-1G-01 JON:9RCYJC           $70,296.22
 JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA) MIPR9ESPARC004
 ---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                          20. QUANTITY
 ITEM NO.         SCHEDULE OF SUPPLIES/SERVICE                  ORDERED/           21.         22.                23.
                                                                ACCEPTED*             UNIT        UNIT PRICE         AMOUNT
 ---------------------------------------------------------------------------------------------------------------------------------
                  MAIL INVOICES TO:
                  SPAWAR
                  CODE 123
                  PO BOX 190022
                  N. CHARLESTON, SC 29419-9022
                                                                                                                        NTE
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as      24. UNITED STATES OF AMERICA
 quantity ordered, indicate by X. If different, enter
 actual quantity accepted below quantity ordered and         /s/ NANCY GARTNER
 encircle.                                               BY:   NANCY GARTNER                              25. TOTAL   $70,296.22
                                                               CONTRACTING/ORDERING OFFICER               ------------------------
                                                                                                          29.         ------------
                                                                                                          DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN                                27. SHIP. NO.       28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL             NO.
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE     [ ] FINAL
                                CONTRACT EXCEPT AS NOTED

 --------   -----------------------------------------------------
   DATE      SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

 36. I certify this account is correct and proper for payment      31. PAYMENT         32. PAID BY        33. AMOUNT VERIFIED
                                                                                                          CORRECT FOR
                                                                   [ ] COMPLETE
 --------   -----------------------------------------------------  [ ] PARTIAL                            ------------------------
   DATE      SIGNATURE AND TITLE OF CERTIFYING OFFICER             [ ] FINAL                              34. CHECK NUMBER

                                                                                                          ------------------------
                                                                                                          35. BILL OF LADING NO.

 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40. TOTAL CONTAINERS  41. S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                            NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94
</TABLE>
<PAGE>   91
<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E010                                  2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES AND MATERIAL TO SUPPORT A DEPLOYED JTF AND JSOTF HEADQUARTERS WITH
A MAINTENANCE AND TECHNICAL TEAM DURING BOTH REAL WORLD AND DEPLOYMENT
EXERCISES IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $70,296.22

<PAGE>   92
                               STATEMENT OF WORK
                      Y2K UPGRADE AND MAINTENANCE CONTRACT
                             FOR JCSE CISCO SYSTEMS

1.  SCOPE: This Statement of Work (SOW) defines the requirement for Y2K
compliance and a maintenance contract by SPAWARSYSCEN CHASN-JOTC of the Joint
Communication Support Element's (JCSE) CISCO systems.

2.  BACKGROUND: Joint Communication Support Element (JCSE) is tasked by Joint
Chief of Staff (JCS) to support a deployed JTF and JSOTF headquarters with a
maintenance and technical team during both ream world and deployment exercises.
The JCSE is capable of deploying anywhere in the world within hours of
notification and is responsible for providing communications support to
Commanders, Joint Task Forces and/or Joint Special Operations Task Forces
Headquarters. JCSE is equipped with state of the art equipment and highly
specialized personnel giving this unit the capability to maintain a high state
of readiness.

3.  REQUIREMENTS: SPAWARSYSCEN CHASN-JOTC shall provide contract assistance to
acquire Y2K upgrade and a maintenance contract for the following JCSE equipment:

Y2K UPGRADE AND MAINTENANCE CONTRACT REQUIREMENTS

6  EA CISCO 2501              SMARTNET MAINTENANCE
17 EA CISCO 4000              SMARTNET MAINTENANCE
1  EA CISCO 2503              SMARTNET MAINTENANCE
2  EA CISCO 7507              SMARTNET MAINTENANCE
2  EA CATALYST 30XX           SMARTNET MAINTENANCE
2  EA WS-C50XX                SMARTNET MAINTENANCE
3  EA CISCO 2514              SMARTNET MAINTENANCE

2  EA SNT SERVICE 24 PORT HUB
4  EA CWSI CAMPUS BUNDLE WITH RESOURCE
3  EA MANAGER ESSENTIALS FOR NT CWSI 2.x, CW4, CWW, NT BUNDLE UPGRADE
      FROM CWSI 2.x, CW4, CWW, NT
2  EA RSP-FLC16M (16 MB FLASH KIT)

4. LOGISTICS SUPPORT: N/A

5. GOVERNMENT FURNISHED EQUIPMENT (GFE): N/A

6. DELIVERY: The target completion date is 12 MAY 1999.
<PAGE>   93
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            FORM APPROVED                     PAGE 1 OF 9
                       ORDER FOR SUPPLIES OR SERVICES                       OMB NO. 0704-0187
                                                                            EXPIRES JUN 30, 1997
 ---------------------------------------------------------------------------------------------------------------------------------
5.CERTIFIED FOR NATIONAL DEFENSE

 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH ORDER NO. 2. DELIVERY ORDER          3. DATE OF ORDER          4. REQUISITION/PURCH    UNDER DMS REG 1
                                 NO.                                                  REQUEST NO.
 GS-35F-4655H                                                                                                   DO
 N65236-99-A-7920                E009                    1999 MAR 31               N65236-9089-8FO4
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE __________        8.DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                   [X] DEST
 P.O. BOX 190022                                                                2015-009                  [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                             (See Schedule if other)
 POC: NANCY GARTNER CODE: 1113NG
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR                 CODE  0HAL7    FACILITY CODE  _____    10. DELIVER TO FOB POINT     11. MARK IF BUSINESS IS
                                                                      By (Dale)                    [ ] SMALL
 NAME     TELECOMMUNICATION SYSTEMS INC       Tatonka                 1999 SEP 30                  [ ] SMALL DISADVANTAGED
 AND      275 WEST STREET                     Accounting              12. DISCOUNT TERMS           [ ] WOMEN-OWNED
 ADDRESS  SUITE 400                           Tampa                   NET 30
          ANNAPOLIS, MN 21401
                                                                      13. MAIL INVOICES TO:
                                                                      SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE _______              15. PAYMENT WILL BE MADE BY  CODE  068688                   MARK ALL
     CYPRESS GROUP                                        DFAS-SD OPLOC                                          PACKAGES AND
     5850A WEST CYPRESS STREET                            CODE FPV                                                PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 429100                                           CONTRACT OR
     M/F: N65236-99-A-7920/E009                           SAN DIEGO, CA 92142-9100       EFT: T                   ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.
   TYPE            [X]     This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER DELIVER          conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]    Reference your                furnish the following on terms specified herein.
 ---------------------------------------------------------------------------------------------------------------------------------
                       ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                       PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                       AGREES TO PERFORM THE SAME.

 --------------------------   --------------  ----------------------------------------------                 ---------------------
        NAME OF CONTRACTOR      SIGNATURE       TYPED NAME AND TITLE                                              DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA 97X4930.NH3S     000      77777      0      065236      2F         000000      B90898F04AAN              $151,00.81
 JOB ORDER: BMUM3P8DB4 (W808TU980504801)
 ---------------------------------------------------------------------------------------------------------------------------------
 18. ITEM NO.     19. SCHEDULE OF SUPPLIES/SERVICES       20. QUANTITY ORDERED/ACCEPTED*   21. UNIT   22. UNIT PRICE    23. AMOUNT
 ---------------------------------------------------------------------------------------------------------------------------------
                 MAIL INVOICES TO:
                 SPAWAR
                 CODE 123                                       DUPLICATE ORIGINAL
                 PO BOX 190022
                 N. CHARLESTON, SC 29419-9022
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as    24. UNITED STATES OF AMERICA
 quantity ordered indicate by X. If different, enter
 actual quantity accepted below quantity ordered and     /s/ NANCY GARTNER
 encircle.                                                                                              25. TOTAL  151,003.81
                                                       BY: NANCY GARTNER CONTRACTING/ORDERING OFFICER
                                                                                                        29.
                                                                                                        DIFFERENCE
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.
                                                                   [ ] PARTIAL         28. D.O. VOUCHER
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE       [ ] FINAL               NO.            30. INITIALS
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT

                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                            33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL           32. PAID BY        CORRECT FOR
                                                                                                          ------------------------
                                                                                                          34. CHECK NUMBER
                                                                                                          ------------------------
                                                                                                          35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40.TOTAL CONTAINERS  41.S/R ACCOUNT     42. S/R VOUCHER NO.
                          (Print)               (YYMMMDD)                                 NUMBER

 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94 (EG)                PREVIOUS EDITION MAY BE USED.       Designed using Perform Pro, WHS/DIOR, Jun 94
 ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   94

<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E009                                  2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES TO PROVIDE AUTOMATED DATA AND AUDIO CONFERENCING/SWITCHING SYSTEM FOR
THE UNITED STATES ARMY SYSTEMS PERFORMANCE OFFICE (USASPO) IN ACCORDANCE WITH
THE ATTACHED STATEMENT OF WORK

THE CONTRACTOR SHALL HAVE A TS/SCI SECURITY CLEARANCE. FIRM FIXED PRICE:
$151,003.81

<PAGE>   95
                               STATEMENT OF WORK
                  SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE
                   COMMUNICATION AND CONTROL SWITCHING SYSTEM

1.  SCOPE

This Statement of Work (SOW) establishes the requirements for an automated data
and audio conferencing/ switching system, known as the Communications and
Control Switch System (CCSS). The contractor shall provide this system to the
United States Army Systems Performance Office (USASPO).

2.  APPLICABLE DOCUMENTS

         2.1.  MILITARY STANDARDS (FOR GUIDANCE ONLY)

MIL-STD-188-100 Common Long Haul and Tactical Communications System Technical
Standards

MIL-STD-188-144 Electrical Characteristics of Digital Interface Circuits

MIL-STD-188-124 Grounding, Bonding, and Shielding for Common Long Haul and
Tactical Communications Systems

MIL-STD-461 Electromagnetic Interference Characteristics, Requirements for
Equipment

MIL-HDBK-232A Red/ Black Engineering - Installation Guidelines

         2.2.  ELECTRONIC INDUSTRY ASSOCIATION STANDARDS

EIA  RS-530

3.  REQUIREMENTS

         3.1.   GENERAL REQUIREMENTS

The CCSS shall be a highly reliable, integrated communications system,
consisting of commercial, off-the-shelf (OTS) equipment/ non-developmental
items, that supports operation, control, and switching of radios, landlines,
computer terminals, crypto, and data devices. The contractor shall design,
develop, fabricate, manufacture, procure, assemble, install, integrate, and test
the CCSS to satisfy the requirements of USASPO.

The contractor shall be responsible for all CCSS equipment, both OTS and GFE,
and shall ensure all interfaces among them work properly. The contractor shall
ensure the interfaces are in compliance with the listed government standards and
guidelines.

<PAGE>   96

The system shall include a data conferencing/ switching subsystem and an audio
conferencing/ switching subsystem. The data subsystem shall include, but not be
limited to:

- government-furnished equipment (GFE) data devices such as STU-III secure
  telephones, a facsimile machine, a scanner, a spectrum analyzer, a printer,
  and data controllers.

- OTS data devices such as personal computers

- an OTS data switch

The data subsystem shall be designed to allow an operator(s) to configure,
control, and monitor the data subsystem from the desktop to the maximum extent
feasible. The contractor shall design the data subsystem to allow for future
expansion to include other data devices.

The audio subsystem shall include, but not be limited to:

- GFE audio devices such as ST-40 secure/ non-secure station telephones and
  STU-III/R secure dial-through telephones

- OTS audio devices such as IST-40 secure/ non-secure station telephone and
  Audio Monitor Panels (AMPs)

- an OTS audio switch

The audio subsystem shall be designed to allow an operator(s) to configure,
control, and monitor the audio subsystem from the desktop to the maximum extent
feasible. The contractor shall design the audio subsystem to allow for future
expansion to include other audio devices. The contractor shall also design the
audio subsystem to include interfaces that are compatible with other audio
switches and Central Office (CO) equipment, in anticipation of connection to
other audio subsystems both on-base and off-base.

         3.2. Operations

The CCSS shall provide audio connectivity to operator-determined radio nets for
transmission and reception. From a terminal, the operator shall be able to
quickly change the configuration of the CCSS. The system must indicate to the
operator the current switch state and health status, including alarms, of the
switching devices and attached devices.

         3.3. Physical Layout

The CCSS shall consist of two base operator positions and at least six remote
operator positions. Four of the remote operator positions shall exist in the
remote operations room located one room away from the base operations room. The
locations of the remaining two remote operator positions are TBD.
<PAGE>   97
Each operator position will allow to varying degrees the operator(s) to
configure, control, and monitor the CCSS. The exact functions to be designed
into each position will be specified by USASPO at the Final Design Review
(refer to paragraph 3.5.5). Physically they shall consist of consoles with a
writing surface that allow the devices at each position to be mounted securely
into standard 19" racks. Each console shall allow front and rear access to the
installed equipment, allowing easy maintenance.

All GFE audio devices, OTS switching devices, and manual patching facilities
will reside in bay cabinets in the rear of the radio room. Each bay cabinet
shall allow front and rear access to the installed equipment, allowing easy
maintenance.

        3.4.   SUPPORTABILITY

The CCSS shall be a turnkey system. All hardware and software provided as part
of the CCSS will be proven, state-of-the-art, low-risk technology. It will be
reliable and easily maintainable. In the event of a failure of the switching
equipment, the operator(s) must have the capability to manually patch around
the failed equipment.

        3.5.   PROGRAM PLAN

The contractor shall utilize a seven-step design and review methodology to
accomplish the tasks dictated in this SOW.

                 3.5.1.  Step One - Initial Site Survey

The contractor will conduct an initial site survey to the USASPO. The purpose
of the site survey is to review the SOW requirements with USASPO personnel in
sufficient detail to produce an initial design plan, and to become familiar
with the physical layout of the existing base station and remote base sites.
This step should require two to three days.

                 3.5.2.  Step Two - Initial Design Plan

The contractor will produce a draft design plan on the CCSS design. The
Initial Design Plan shall contain at a minimum engineering drawings of proposed
equipment racks and consoles, equipment lists detailing item descriptions,
manufacturers, quantities, origin (GFE or OTS), and an overall Plan of Action
and Milestone time table to complete the project. This step should require
ninety days.

                 3.5.3.  Step Three - Initial Design Plan and Program Review

The contractor will conduct a program review with USASPO personnel of the
initial design plan, including engineering drawings and equipment listings. Any
changes, additions, deletions, or modifications will occur at this time. This
step should require one to two days.
<PAGE>   98
                  3.5.4. Step Four - Final Design Plan

The contractor will incorporate modifications into the draft design plan and
produce the final design plan. The Final Design Plan shall contain final
versions of the information required in CDRL A0001 (see paragraph 4.1), plus a
CCSS equipment installation schedule. This step should require forty-five days.

                  3.5.5. Step Five - Final Design Plan and Program Review

The contractor will present the final design plan to USASPO personnel for
approval. The review will include approving:

- capabilities to be available at each operator position

- the final Bill of Materials, including vendors and quantities

- physical layout of the CCSS, including placement and color scheme of the
  cabinets and consoles

- recommended spares list

- warranties

- power distribution scheme

- items built into CCSS that allow for future expansion

This step should take one day.

                  3.5.6. Step Six - Pre-Installation

The contractor will fabricate, manufacture, procure, and assemble the CCSS at
the contractor facility. The contractor may use substitute equipment in lieu of
GFE to preclude shut down of the existing base station at USASPO. USASPO will
observe a demonstration of the CCSS at the contractor facility to ensure
satisfaction with the system. This step should take one hundred eighty days.

                  3.5.7. Step Seven - Installation

The contractor will install, integrate, and test the CCSS at the USASPO
facility. This step should take forty-five days.

         3.6. TRAINING

                  3.6.1. Operations Training

The contractor shall provide training and training material to qualify
government personnel in the complete operations of the CCSS. The contractor
shall provide
<PAGE>   99
training to approximately half a dozen operations personnel to perform the
following tasks:

     -    Startup the CCSS

     -    Configure devices to operate and interface optimally with other
          devices in the CCSS and base station

     -    Automatically patch devices through to other devices

     -    Manually patch devices through to other devices in the event of a
          failure

     -    Shutdown the CCSS

                  3.6.2.  Maintenance Training

The contractor shall provide training and training material to qualify
government personnel in the complete operations, maintenance, and logistic
support of the CCSS. The contractor shall provide training to approximately half
a dozen maintenance personnel to perform the following tasks:

     -    Operate the CCSS

     -    Troubleshoot hardware and software faults to the Line Replaceable Unit
          (LRU) level for all OTS devices

     -    Perform required periodic maintenance on OTS devices

     *    Contact OTS device vendors for sparing or maintenance support

The contractor shall identify all peculiar/ specific support equipment required
for the organizational and intermediate maintenance of the CCSS. This includes
vehicles, equipment, tools, and other items used to service, transport, hoist,
repair, overhaul, assemble, disassemble, test, inspect, or otherwise maintain
the CCSS.

          3.7.  TEST AND EVALUATION

The contractor shall test and evaluate the CCSS and ensure the test results
verify all hardware and software meet CCSS design plan and vendor
specifications. This test and evaluation should be completed immediately after
installation in the USASPO.

4.  DELIVERABLES

The contractor will complete tasks and submit the following required
deliverable items to the government within the period specified in the CDRLs.

<PAGE>   100
          4.1.  INITIAL DESIGN PLAN

The contractor shall produce an Initial Design Plan no later than ninety days
after Delivery Order Award (CDRL A0001). Paragraph 3.5.2 specifies the contents
of the plan.

          4.2.  FINAL DESIGN PLAN

The contractor shall provide a Final Design Plan no later than one hundred
thirty-five days after Delivery Order Award (CDRL A002). Paragraph 3.5.4
specifies the contents of the plan.

          4.3.  PERFORMANCE REPORTS

The contractor shall submit a monthly cost and performance report per paragraph
3.1.6.2 and 3.1.6.3 of the SETA contract SOW (CDRL A007 and A008).

          4.4.  OPERATIONS TRAINING

The contractor shall provide an operations training plan, which will be used
to train operations personnel to perform the tasks specified in paragraph 3.6.1
(CDRL A003).

          4.5.  MAINTENANCE TRAINING

The contractor shall provide a maintenance training plan, which will be used to
train maintenance personnel to perform the tasks specified in paragraph 3.6.2
(CDRL A004).

          4.6.  TEST PLAN

The contractor shall produce a test plan. The plan shall contain all test
procedures needed to demonstrate the CCSS is in compliance with the
specifications detailed in paragraph 3.7 (CDRL A005).

5.  ACCEPTANCE

The Contracting Officer shall accept the CCSS based on recommendations from
the Contracting Officer's Representative and USASPO. USASPO shall evaluate the
deliverables for correctness, sufficiency of technical content, and
compliance with applicable specifications and standards in the CDRLs.

6.  SECURITY

Performance of the delivery order will require access to TOP SECRET/ SCI
information by all contract team members.

<PAGE>   101

7.  PERIOD OF PERFORMANCE

The period of performance will be from 31 March 1999 through 30 September 1999.

8.  RELEASE OF INFORMATION

The contractor shall protect from public disclosure all technical data provided
by the government, IAW the markings thereon and the limitations of release
contained in FAR Part 3. Additionally, all information related to the items to
be delivered or services to be performed under this DO should not be disclosed
by any means without prior approval of the authorized representative of the
Contracting Officer.
<PAGE>   102
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved                     PAGE 1 OF 3
                       ORDER FOR SUPPLIES OR SERVICES                       OMB No. 0704-0187                 5.CERTIFIED FOR
                                                                             Expires Jun 30, 1997             NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH           2. DELIVERY ORDER          3. DATE OF ORDER          4. REQUISITION/PURCH    UNDER DMS REG 1
     ORDER NO.                   NO.                                                  REQUEST NO.
 GS-35F-4655H                                                                                                   DO
 N65236-99-A-7920                E008                    1999 MAR 25               N65236-9081-8F04
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                   8.DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                   [X] DEST
 P.O. BOX 190022                                                                2015-008                  [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022               SAME AS BLOCK 6                                            (See Schedule if other)
 POC: NANCY GARTNER CODE: 1113NG
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR                 CODE 0HAL7   FACILITY CODE             10. DELIVER TO FOB POINT BY (Date)  11. MARK IF BUSINESS IS
                                                                      1999 JUN 30                         [ ] SMALL
 NAME     TELECOMMUNICATION SYSTEMS INC       Tatonka                                                     [ ] SMALL DISADVANTAGED
 AND      275 WEST STREET                     Accounting              12. DISCOUNT TERMS                  [ ] WOMEN-OWNED
 ADDRESS  SUITE 400                           Tampa                   NET 30
          ANNAPOLIS, MD 21401
                                                                      13. MAIL INVOICES TO
                                                                      SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS-SL-AOD                                            PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                          CONTRACT OR
     M/F: N65236-99-A-7920/E008                           ST LOUIS, MO  63120-0009        EFT: T                  ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.
   TYPE            [X] This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER DELIVERY     conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]    Reference your                furnish the following on terms specified herein.
 ---------------------------------------------------------------------------------------------------------------------------------
                       ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                       PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                       AGREES TO PERFORM THE SAME.

 --------------------------   --------------  ----------------------------------------------                 ---------------------
        NAME OF CONTRACTOR      SIGNATURE       TYPED NAME AND TITLE                                              DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA  2192035  62  7510  52122930  252G  S28043  PRON:A1-9-05026-1G-01 JON:9RCYJC                     $10,320.00
 JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA)
 ---------------------------------------------------------------------------------------------------------------------------------
 18.ITEM NO.     19.SCHEDULE OF SUPPLIES/SERVICES         20. QUANTITY ORDERED/ACCEPTED*   21.UNIT    22.UNIT PRICE     23.AMOUNT
 ---------------------------------------------------------------------------------------------------------------------------------
                 MAIL INVOICES TO:
                 SPAWAR
                 CODE 123                                       DUPLICATE ORIGINAL
                 PO BOX 190022
                 N. CHARLESTON, SC 29419-9022                                                                              NTE
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as     24. UNITED STATES OF AMERICA                   25. TOTAL $ 10,320.00
 quantity ordered indicate by X. If different, enter
 actual quantity accepted below quantity ordered and     /s/ NANCY GARTNER
 encircle.
                                                        BY: NANCY GARTNER CONTRACTING/ORDERING OFFICER
                                                                                                       29.
                                                                                                       DIFFERENCES
------------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN                                27. SHIP. NO.        28. D.O. VOUCHER     30. INITIALS
 [] INSPECTED [] RECEIVED [] ACCEPTED, AND  CONFORMS TO THE                                 NO.
                          CONTRACT EXCEPT AS NOTED              ---------------------
                                                                   [ ] PARTIAL          --------------------------------------------
------   ----------------------------------------------------      [ ] FINAL            32. PAID BY          33. AMOUNT VERIFIED
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE     ---------------------                        CORRECT FOR
 ------------------------------------------------------------                                                -----------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT                               34. CHECK NUMBER
                                                                                                             -----------------------
------   ----------------------------------------------------      [ ] COMPLETE                              35. BILL OF LADING NO.
 DATE     SIGNATURE AND TITLE OF CERTIFYING OFFICIAL                  [ ] PARTIAL
                                                                   [ ] FINAL
 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40.TOTAL CONTAINERS  41.S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                       NUMBER

 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   103
<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E008                                  2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES AND MATERIAL FOR THE PURCHASING, INTEGRATION AND DELIVERY OF THE
CONFIGURATION UTC 6JC80 C41 PLANS TEAM SUPPORT THE JOINT COMMUNICATIONS
SUPPORT ELEMENT (JCSE) IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $10,320.00

<PAGE>   104
N65236-99-A-7920/E008                                            PAGE 3  OF  3

                               STATEMENT OF WORK
                 ACQUISITION OF PELICAN/HARDENED TRANSIT CASES

1.  SCOPE. This Statement of Work (SOW) defines the requirement pertaining to
the purchasing, integration and delivery of the configuration UTC 6JC80 C41
Plans Team Support the Joint Communications Support Element (JCSE) in FY99.

2.  REQUIREMENTS. The contractor shall procure thirty-two (32) hardened cases
for JCSE. The Pelican/Hardened transit cases are required for transport of the
C4J Plans Team UTC equipment. Three cases are required per UTC, for a total of
twelve (12). These cases must have sufficient size to carry the UTC printer,
printing cartridge, scanner, and accessories (i.e., typing paper) but are sized
within specifications appropriate for delivery to exercise or contingency
objective area as baggage on commercial aircraft. Five (5) cases are required
per UTC for a total of twenty (20), to carry Dell laptop computers and
associated cables and drives. Internal padding is required, with cutouts for
the equipment listed above. Transit cases must have a locking device or
provisions made for use of commercial or government-provided locks.

2.1  DELIVERY. The configuration UTC will be completed within fourteen (14)
days after receipt of the Pelican/Hardened transit cases from the vendor.

2.2  CONFIGURATION. (See paragraph 2 above).

2.3  INSTALLATION. Pelican/Hardened transit cases will ship to the contractor's
facility to be integrated. The contractor shall provide the necessary
documentation described in the SOW agreement.

2.4  LOGISTICS SUPPORT. Receive warranty documentation and update configuration
list.

2.5  PACKAGING. Pelican/Hardened transit cases shall be packaged for delivery
in accordance with SOW agreement.

2.6  GOVERNMENT FURNISHED EQUIPMENT (GFE). HP Scanner, Camera, HP Printers,
Printing cartridges, and Zip drive. The Dell laptops will be provided but all
software will be loaded by JCSE.

3.   RESCHEDULING OF GFE. In the event of GFE being required for a mission, a
new shipment date will be established within sixty (60) days.
<PAGE>   105

<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved
                       ORDER FOR SUPPLIES OR SERVICES                       OMB No. 0704-0187
                                                                            Expires Jun 30, 1997              PAGE 1 OF
 ---------------------------------------------------------------------------------------------------------------------------------
5. CERTIFIED FOR NATIONAL DEFENSE

 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH           2. DELIVERY ORDER          3. DATE OF ORDER          4. REQUISITION/PURCH     UNDER DMS REG 1
     ORDER NO.                   NO.                                                 REQUEST NO.
     GS-35F-4655H
     N65236-99-A-7920            E007                       1999 MAR 25              N65236-9081-8F01              DO
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE  N65236      7. ADMINISTERED BY (If other than 6) CODE
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022                                                                                             8.DELIVERY FOB
  NORTH CHARLESTON, SC 29419-9022             SAME AS BLOCK 6                                                 [X] DEST
  POC: NANCY GARTNER CODE: 1113NG                                                                             [ ] OTHER
  EMAIL: gartnern@spawar.navy.mil                                                                             (See Schedule if
  TELEPHONE: (843) 974-5921                                                                                     other)
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR                 CODE 0HAL7   FACILITY CODE                         10. DELIVER TO FOB POINT    11. MARK IF BUSINESS
                                                                                      BY (DATE)                    IS
                                                                                      1999 APR 09             [ ] SMALL
 NAME AND   TELECOMMUNICATIONS SYSTEMS INC                                        12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS    275 WEST STREET                                                           NET 30                      DISADVANTAGED
            SUITE 400                                                             13. MAIL INVOICES TO        [ ] WOMEN-OWNED
            ANNAPLOIS, MD 21401
                                                                                      SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
                                                                                                                  PACKAGES AND
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PAPERS WITH
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                         CONTRACT OR
     TAMPA, FL 33607                                      PO BOX 2000009                                          ORDER NUMBER
     M/F: N65236-99-A-7920/E007                           ST. LOUIS, MO 63120-0009      EFT: T
 ---------------------------------------------------------------------------------------------------------------------------------
 16.
   TYPE                This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER DELIVER-[X]  conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE[ ]  Reference your                furnish the following on terms specified herein.
                       -----------------------------------------------------------------------------------------------------------
                       ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                       PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                       AGREES TO PERFORM THE SAME.
 ---------------------------------------------------------------------------------------------------------------------------------
        NAME OF CONTRACTOR      SIGNATURE       TYPED NAME AND TITLE          DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA 2192035 62 7510 52122930 252G S28043 PRON:A1-9-05026-1G-01 JON:9RCYJC                                         $2,134.64
 JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA)
 ---------------------------------------------------------------------------------------------------------------------------------
                                                            20. QUANTITY
 18.           19.                                              ORDERED/           21.         22.                23.
 ITEM NO.         SCHEDULE OF SUPPLIES/SERVICES                 ACCEPTED*             UNIT        UNIT PRICE         AMOUNT
                  MAIL INVOICES TO:
                  SPAWAR
                  CODE 123
                  PO BOX 190022
                  N. CHARLESTON, SC 29419-9022
                                                                                                                        NTE
----------------------------------------------------------------------------------------------------------------------------------
 If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA
 quantity ordered, indicate by X. If different, enter
 actual quantity accepted below quantity ordered and          /s/ NANCY GARTNER
 encircle.                                               BY:   NANCY GARTNER                             25. TOTAL   $2,134.64
                                                               CONTRACTING/ORDERING OFFICER              -------------------------
                                                                                                         29.
                                                                                                         DIFFERENCES

 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [] INSPECTED [] RECEIVED [] ACCEPTED, AND  CONFORMS TO THE
            CONTRACT EXCEPT AS NOTED                               27. SHIP. NO.
                                                                   [ ] PARTIAL         28. D.O. VOUCHER  30. INITIALS
------    --------------------------------------------------
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE       [ ] FINAL               NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT

                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                            33. AMOUNT VERIFIED
-----  -----------------------------------------
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL           32. PAID BY        CORRECT FOR
                                                                                                          ------------------------
                                                                                                          34. CHECK NUMBER
                                                                                                          ------------------------
                                                                                                          35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT       38. RECEIVED BY       39. DATE RECEIVED     40.TOTAL CONTAINERS  41.S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                        NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94
 </TABLE>

<PAGE>   106
N65236-99-A-7920/E007                                            PAGE 3  OF 3

                               STATEMENT OF WORK
                       INDEPENDENT Y2K EVALUATION OF MART

1.   SCOPE. This Statement of Work (SOW) defines the requirement pertaining to
the independent Y2K compliance evaluation by SPAWARSYSCEN CHAS-JOTC of the
Joint Communication Support Element's (JCSE) Mobile Autodin Remote Terminal
(MART).

2.   BACKGROUND. Joint communication Support Element (JCSE) is tasked by Joint
Chief of Staff (JCS) to support a deployed JTF and JSOTF Headquarters with a
maintenance and technical team during both real world and deployment exercises.
The JBSE is capable of deploying anywhere in the world within hours of
notification and is responsible for providing communications support to
Commanders, Joint Task Forces and/or Joint Special Operations Task Forces
Headquarters. JCSE is equipped with state of the art equipment and highly
specialized personnel giving this unit the capability to maintain a high state
of readiness.

3.   REQUIREMENTS. SPAWARSYSCEN CHASN-JOTC shall monitor and evaluate Y2K
testing of the MART.

4.   TESTING. JCSE 2nd Joint Communication Squadron (JCS) is tasked by JCSE J-3
to operationally bring up a TYC-39 and two MARTs in a normal system
configuration. SPAWARSYSCEN CHASN-JOTC will be responsible for monitoring and
evaluating (MART only) Y2K compliance. The following information provides
guidelines of how the evaluation will be conducted.

4.1. Testing will be done on customer site (at JCSE, MacDill AFB,FL).

4.2. JCSE 2nd JCS shall provide an operational TYC-39 Message Switch and two
(2) operational MARTs.

4.3. JCSE 2nd JCS shall provide three(3) operators knowledgeable on the systems
being tested. The operators will be present for the duration of the evaluation.

4.4. The above mentioned systems shall be brought up operational and be passing
message traffic prior to onset of testing.

4.5  Initial testing will be running a BIOS checker on the UYK-85 computers;
UYK-85 is the CPU inside the MARTs. The remainder of the tests will be done
using the "Department of Defense Year 2000 Compliance Checklist".

5.   LOGISTICS SUPPORT: N/A

6.   GOVERNMENT FURNISHED EQUIPMENT (GFE): N/A

7.   DELIVERY: The target completion date is 09 APR 99.
<PAGE>   107

<TABLE>
<S>                                                                                                                              <C>
===================================================================================================================================
                                                          REFERENCE NO. OF DOCUMENT BELOW CONTINUED                     PAGE
CONTINUATION SHEET                                                  N65236-99-A-7920/E007                                 2
===================================================================================================================================
NAME OF OFFEROR OR CONTRACTOR
  TELECOMMUNICATION SYSTEMS, INC.
===================================================================================================================================
</TABLE>

SECTION B - SUPPLIES OR SERVICES AND PRICES

SERVICES TO PROVIDE INDEPENDENT Y2K COMPLIANCE EVALUATION IN ACCORDANCE WITH THE
ATTACHED STATEMENT OF WORK.

FIRM FIXED PRICE: $2,134.64

<PAGE>   108
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  03                                   1999 SEP 21                 N65236-9208-8F14
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE 2015-00
                                    --------------------                                                           -------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                              NO.
                                                                                     [X]   N65236-99-A-7920/E006
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 MAR 22
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to
change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference
to the solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
     ACR:AC  9790300  5600  X59  52AC  545000  C408  N99340  662400                                        $2,570.08
     JOB ORDER: BSG93X9F34 (USZA2299N99340/AA)
------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
           MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

                                                                 SEE PAGE 2
[DUPLICATE ORIGINAL]

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

      BRUCE A. WHITE, VICE PRESIDENT                                            NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  9/21/99
 /s/ BRUCE A. WHITE                                                                /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 Sep. 22
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   109
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7928/E006                                                          PAGE 2 OF 2
MODIFICATION NO.                   03
====================================================================================================================================
     1.   The JOTC office in Tampa, FL was recently broken into and as a result of this the GSA/BPA order is hereby increased by
          $2,570.08 in order to replace seven (7) stolen printers to complete the task for the MGS program.

     2.  As a result of the above changes, the total not to exceed amount of the order is hereby changed from $1,593,962.46 to
         $1,596,532.54, a net increase of $2,570.08.
</TABLE>
<PAGE>   110
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         2
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  02                                   1999 JUL 28                 N65236-9208-8F12
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------                                                           --------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A MODIFICATION OF CONTRACT/ORDER
                                                                                              NO.
                                                                                     [X]   N65236-99-A-7920/E006
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 MAR 22
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to
change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference
to the solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
     ACR:AC  9790300  5600  X59  52AC  545000  C408  N99340  662400                                        $5,937.12
     JOB ORDER: BSG93X9F34 (USZA2299N99340/AA)
------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF:
           MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

     [DUPLICATION ORIGINAL]                                      SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

      Jeffrey C. Jockel,/Contracts Manager                                         NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  28 JUL 99
 /s/  JEFFREY JOCKEL                                                              /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 Aug 04
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   111
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E006                                                          PAGE 2 OF 2
MODIFICATION NO.                   02
====================================================================================================================================
     1.   The above referenced GSA BPA order is hereby being increased in the amount of $5,937.12 for additional travel in order
          to complete the original task.

     2.   As a result of the above, the total not to exceed amount of the order is hereby changed from $1,588,025.34 to
          $1,593,962.46, a net increase of $5,937.12.
</TABLE>
<PAGE>   112
<TABLE>
<CAPTION>
<S>                                                                                   <C>                          <C>      <C>
------------------------------------------------------------------------------------------------------------------------------------
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                     1. CONTRACT ID CODE          PAGE    OF PAGE
                                                                                                                      1         3
------------------------------------------------------------------------------------------------------------------------------------
  2. AMENDMENT/MODIFICATION NO.     3. EFFECTIVE DATE           4. REQUISITION/PURCHASE REQ. NO.             5. PROJECT NO.
  01                                   1999 JUN 08                 N65236-9154-8F08
------------------------------------------------------------------------------------------------------------------------------------
  6. ISSUED BY      CODE               N65236                    7. ADMINISTERED BY (If other than Item 6)    CODE
                                    --------------------                                                           ---------------
  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                SAME AS BLOCK 6            2015-066
  POC: NANCY GARTNER   CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------------------------------------------------------------------
  8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)        (X)   9A. AMENDMENT OF SOLICITATION NO.
                                                                                    -----
                                                                                     [ ]
                                                                                          ------------------------------------------
          TELECOMMUNICATION SYSTEMS, INC.                                                  9B. DATED (SEE ITEM 11)
          275 WEST STREET
          SUITE 400                                                                       ------------------------------------------
          ANNAPOLIS, MD  21401                                                            10A. MODIFICATION OF CONTRACT/ORDER
                                                                                               NO.
                                                                                     [X]   N65236-99-A-7920/E006
                                                                                          ------------------------------------------
                                                                                          10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------------------
CODE           0HAL7                         FACILITY CODE                                1999 MAR 22
------------------------------------------------------------------------------------------------------------------------------------
                                     11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ]   The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of
the following methods: (a) By completing Items 8 and 15, and returning ___ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to
change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference
to the solicitation and this amendment, and is received prior to the opening hour and date specified.
------------------------------------------------------------------------------------------------------------------------------------
 12. ACCOUNTING AND APPROPRIATION DATA (If required)                                                       NET INCREASE
     ACR:AB  97X4930.NH3S  000  77777  0  065236  2F  000000  B91548F08ABN                                 $71,311.64
     JOB ORDER: BSG93P9TBD  (USZA2299N99340)
------------------------------------------------------------------------------------------------------------------------------------
                                  13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                       IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
------------------------------------------------------------------------------------------------------------------------------------
  (X)   A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
------     CONTRACT/ORDER NO. IN ITEM 10A.
  [ ]
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
           office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
------------------------------------------------------------------------------------------------------------------------------------
  [X]   C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF:
           MUTUAL AGREEMENT OF THE PARTIES
------------------------------------------------------------------------------------------------------------------------------------
  [ ]   D. OTHER (Specify type of modification and authority)

------------------------------------------------------------------------------------------------------------------------------------
  E. IMPORTANT: Contractor [ ] is not,  [X] is required to sign this document and return ORIGINAL copies to the issuing office.
------------------------------------------------------------------------------------------------------------------------------------
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where
     feasible.)

     [DUPLICATE ORIGINAL]                                        SEE PAGE 2

  Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
  unchanged and in full force and effect.
------------------------------------------------------------------------------------------------------------------------------------
 15A. NAME AND TITLE OF SIGNER (Type or print)                           16A.  NAME AND TITLE OF CONTRACTING OFFICER (Type or print)
      Jeffrey Jockell
      Contracts Manager                                                          NANCY GARTNER
------------------------------------------------------------------------------------------------------------------------------------
 15B. CONTRACTOR/OFFEROR                     15C. DATE SIGNED           16B.  UNITED STATES OF AMERICA             16C. DATE SIGNED
                                                  8 JUN 99
 /s/ JEFFREY JOCKELL                                                                /s/ NANCY GARTNER
-------------------------------------------                                       ----------------------------------    99 JUN 09
  (Signature of person authorized to sign)                                     BY (Signature of Contracting Officer)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   113
<TABLE>
<CAPTION>
<S>                                                                                                               <C>
MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E006                                                          PAGE 2 OF 3
MODIFICATION NO.                   01
====================================================================================================================================
     1.   In order for the contractor to complete the work in accordance with the revised statement of work, funds in the amount
          of $71,311.64 are hereby added.

     2.  As a result of the above, the total not to exceed amount of the order is hereby changed from $1,516,713.70 to
         $1,588,025.34, a net increase of $71,311.64.

</TABLE>
<PAGE>   114
                               STATEMENT OF WORK

                            For the Modification of

                    Message Gateway System (MGS) & MGS Lite

1.  GENERAL.  The United States Special Operations Command (USSOCOM) Program
Management Office, SOAL PMC4, requires technical support in the refurbishment of
existing CAMPS terminals and the procurement, assembly, test of new MGSs. In
addition, USSOCOM requires a scaled down (MGS Lite) version of MGS centrally
developed around a notebook/laptop computer. These efforts will require
operator/technician training and the development of technical document.

2.  SCOPE.  The Statement of Work (SOW) defines the work to be performed for the
refurbishment of existing CAMPS terminals, the fabrication of new MGSs & MGS
Lites, and the associated integration and performance testing. MGS
characteristics will ensure Y2K and DMS compliance while maintaining modular
design and rugged qualities.

3.  REQUIREMENTS.  This effort shall be performed in multiple phases:
procurement, refurbishment, assembly, test and validation of system performance.
Specifically, this effort shall provide for the:

     3.1.  Procurement of all required MGS equipment and subsystems.

     3.2.  Receipt and refurbishment of four GFE CAMPS terminals from the 112th
           Sig Bn via Spawar Systems Center Charleston (SSCC).

     3.3.  Assembly of eight new MGSs utilizing the previously procured
           equipment and subsystems.

     3.4.  Support in the development of an MGS/MGS Lite Test & Acceptance Plan.

     3.5.  System testing and validation of performance characteristics of MGS
           equipment.

     3.6.  On-site testing and acceptance of the refurbished CAMPS for the 112th
           Sig Bn. Follow on testing and acceptance of remaining MGSs shall be
           performed at SSCC.

     3.7.  Procurement of all required MGS Lite equipment and subsystems.
           Encryption devices shall be GFE.

     3.8.  Assembly of ten new MGS Lites utilizing the previously procured
           equipment and subsystems.

     3.9.  System testing and validation of performance characteristics of MGS
           Lite Equipment.

     3.10. On-site testing and acceptance of the first two MGS Lite Systems for
           the 112th Sig Bn. Follow on testing shall be performed at SSCC.

     3.11. The CAD drawings associated with each suite of equipment.

4. Implementation. The period of performance for the above is to be completed by
30 SEP 1999.

5. Technical Documentation. Technical Drawings shall be provided with each
system. These drawings shall depict system interconnects, physical system
configuration, and wiring diagrams.

<PAGE>   115
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB                 PAGE 1 OF 3
                       ORDER FOR SUPPLIES OR SERVICES                       No. 0704-0187                     --------------------
                                                                            Expires Jun 30, 1997              5. CERTIFIED FOR
                                                                                                                 NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
 1.  CONTRACT/PURCH ORDER NO.     2. DELIVERY ORDER NO.      3. DATE OF ORDER       4. REQUISITION/PURCH      UNDER DMS REG 1
     GS-35F-4655H                    E006                        1999 MAR. 22           REQUEST NO.           DO
     N65236-99-A-7920                                                                   N65236-9076-8F17
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                       8. DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                       [X] DEST
 P.O. BOX 190022                                                               2015-006                       [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                                 (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                              other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE                             10. DELIVER TO FOB POINT    11. MARK IF
                        -                          -                                  BY 1999 SEP 30              BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.        TATONKA          12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                       ACCOUNTING           NET 30                      DISADVANTAGED
                           SUITE 400                             TAMPA                                        [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                                  SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS ORLANDO, CODE FPV                                  PACKAGES AND
     5850A WEST CYPRESS STREET                            2500 LEAHY AVENUE                                       PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 934503                                           CONTRACT OR
     M/F: N65236-99-A-7920/E006                           ORLANDO FL 32893-4503 EFT: T                            ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   97910300    5600    X59    52AC    545000    C408    N99-340    662400                $1,516,713.70
 JOB ORDER: BSG93X9G35 (USZA2299N99340)
 --------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT          23.
 ITEM NO.      SCHEDULE OF SUPPLIES/SERVICES                        ORDERED/             UNIT            PRICE             AMOUNT
                                                                    ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR
               CODE 123
               PO BOX 190022
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL  $1,516,713.70
 quantity ordered, indicate by X. If different, enter                                                 ----------------------------
 actual quantity accepted below quantity ordered and      /S/ Nancy Gartner
 encircle.                                                BY: NANCY GARTNER                           29.
                                                             CONTRACTING/ORDERING OFFICER             DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL         NO.
--------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT    38. RECEIVED BY    39. DATE RECEIVED    40. TOTAL CONTAINERS   41. S/R ACCOUNT    42. S/R VOUCHER NO.
                                                                                       NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   116
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED               PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E006
 ---------------------------------------------------------------------------------------------------------------------------------
 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
 ---------------------------------------------------------------------------------------------------------------------------------

 SECTION B - SUPPLIES OR SERVICES AND PRICES

 SERVICES AND MATERIAL TO PROVIDE SUPPORT FOR THE MESSAGE GATEWAY SYSTEMS
 FOR USSOCOM IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

 FIRM FIXED PRICE: $1,516,713.70

</TABLE>
<PAGE>   117
N65236-99-A-7920/E006                                                PAGE 3 OF 3

                               STATEMENT OF WORK

                                    FOR THE

                          MESSAGE GATEWAY SYSTEM (MGS)

1.  GENERAL.  The United States Special Operations Command (USSOCOM) Program
Management Office, SOAL PMC4, requires technical support in the refurbishment
of existing CAMPS terminals and the procurement, assembly, integration, and
test of new MGSs. This effort will require operator/technician training and the
development of technical documents. Support activities outlined in this
Statement of Work (SOW) are supported by the terms outlined in the attached
Memorandum of Agreement between USSOCOM PEO IIS and the Space and Naval Warfare
Systems Center (SPAWARSYSCEN) -- Charleston (SSCC), dated March 1998, for
SOFTACS Research, Development, and Acquisition Support and the attached
Inter-Service Support Agreement between PEO IIS and SSCC dated 7 April 1998.

2.  SCOPE.  This Statement of Work (SOW) defines the work to be performed
for the refurbishment of existing CAMPS terminals, the fabrication of new MGSs,
and associated integration, performance testing, and training of system
operators/technicians. MGS characteristics will ensure Y2K and MDS compliance
while maintaining modular design and rugged qualities.

3.  REQUIREMENTS.  This effort shall be performed in five phases: procurement,
refurbishment, assembly, test and validation of system performance and training:

     3.1.  Procurement of all required MGS equipment and sub-systems.

     3.2.  SSCC will accept delivery of four GFE CAMPS terminals from the 112th
           Sig Bn, refurbish with new equipment, and conduct system turnover
           with the 112th Sig Bn to include training, initial spare
           provisioning, and technical assistance, as required.

     3.3.  Assembly of eight new MGSs utilizing the previously procured
           equipment and sub-systems. SSCC will warehouse MGSs and provide
           delivery at the direction of SOAL PMC4.

     3.4.  Conduct system test and the validation of system performance
           characteristics. Testing shall be conducted by SSCC technicians in
           coordination with the software manufacturer, Cavalier. After MGS
           fielding, these technicians shall conduct independent validation of
           system performance characteristics.

     3.5.  Consists of on-site operator/technician training of the refurbished
           CAMPS for the 112th Sig Bn: follow-on MGS training will be conducted
           as SSCC.
4.   IMPLEMENTATION.  The period of performance for the above-described
activities shall commence upon date of order. Storage and fielding instructions
of the MGSs will be provided by SOAL PMC4.

5.   TECHNICAL DOCUMENTATION.  Operator Manuals and Technical Drawings shall be
provided with each system and shall be made available for the on-site and
classroom training after the delivery of the refurbished CAMPS terminals and
the new MGSs.

6.   MANAGEMENT.  SOAL PMC4 has assigned the MGS responsibilities to the SOFTACS
System Acquisition Manager who is responsible for managing and coordinating all
project actions and issues with SSCC. SSCC will be responsible for executing MGS
activities and will provide SOAL PMC4 with monthly progress reports.
<PAGE>   118
<TABLE>
<S>                                                                                                                             <C>
-------------------------------------------------------------------------------- ----------------------------- --------- ---------
                                                                                 1. CONTRACT ID CODE             PAGE    OF PAGE
              AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                  1          2
-------------------------------------------------------------------------------- ----------------------------- --------- ---------

2. AMENDMENT/MODIFICATION NO.      3. EFFECTIVE DATE                     4. REQUISITION/PURCHASE NO.        5. PROJECT NO.
   04                                 1999 JUN 10                                    N/A
---------------------------------- ------------------------------------- ---------------------------------- ----------------------
6. ISSUED BY             CODE         N65236                             7. ADMINISTERED BY (If other than Item 6)   CODE
   SPACE AND NAVAL WARFARE SYSTEMS CENTER
   P.O. BOX 190022
   NORTH CHARLESTON, SC 29419-9022                                          SAME AS BLOCK 6
   POC: NANCY GARTNER    CODE: 1113NG
   EMAIL: gartnern@spawar.navy.mil                                          2015-005
   TELEPHONE: (843) 974-5921
------------------------------------------------------------------------ ---------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)           (X)     9A. AMENDMENT OF SOLICITATION NO.
                                                                                   ----------
                                                                                      [ ]
                                                                                              ------------------------------------
   TELECOMMUNICATION SYSTEMS, INC.                                                            9B. DATED (SEE ITEM II)
   275 WEST STREET
   SUITE 400                                                                       ---------- ------------------------------------
   ANNAPOLIS, MD  21401                                                                       10A. MODIFICATION OF
                                                                                                   CONTRACT/ORDER NO.

                                                                                      [X]     N65236-99-A-7920/E005
                                                                                              ------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------
CODE                                0HAL7               FACILITY CODE                         1999 MAR 12
---------------------------------------------------------------------------------- ---------- ------------------------------------
                                    11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[X] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the
solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __ copies of the
amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or
telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT
THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by
virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided
each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.
----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (if required)                                          NO CHANGE

----------------------------------------------------------------------------------------------------------------------------------
                                13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                   IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
----------------------------------------------------------------------------------------------------------------------------------
         A. THIS CHANGE ORDER IS ISSUED PURSUANT TO:  (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
  (X)    CONTRACT/ORDER NO. IN ITEM 10A.
--------
  [ ]
-------- -------------------------------------------------------------------------------------------------------------------------
  [X]    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
         office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    D. OTHER  (Specify type of modification and authority)

----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT:  Contractor  [X]  is not,  [ ]  is required to sign this document and return ORIGINAL copies to the issuing office.
----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter
where feasible.)

                                                                               ACCTING
                                             SEE PAGE 2                        TATONKA
                                                                               TAMPA

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER
                                                                              (Type or  print)

                                                                         NANCY GARTNER
------------------------------------------------------------------------ ---------------------------------------------------------
15B. CONTRACTOR/OFFEROR                          15C. DATE SIGNED        16B. UNITED STATES OF AMERICA          16C. DATE SIGNED

                                                                         /s/ Nancy Gartner
 ---------------------------------------------                           ------------------------------------
    (Signature of person authorized to sign)                             BY  (Signature of Contracting Officer)          99 JUN 10
------------------------------------------------------------------------ ---------------------------------------------------------
                                                                                                     STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   119
<TABLE>
<S>                                                                                                                             <C>

              MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E005                                             PAGE 2 OF 2
              MODIFICATION NO.                   04
==================================================================================================================================

1. THE PAYING OFFICE IS HEREBY CHANGED TO READ AS FOLLOWS:

   DFAS-SD OPLOC
   CODE FPV
   PO BOX 429100
   SAN DIEGO, CA  92142-9100

2. As a result of the above, the total not to exceed amount of the order remains unchanged.
</TABLE>
<PAGE>   120
<TABLE>
<S>                                                                                                                             <C>
-------------------------------------------------------------------------------- ----------------------------- --------- ---------
                                                                                 1. CONTRACT ID CODE             PAGE    OF PAGE
              AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                  1          2
-------------------------------------------------------------------------------- ----------------------------- --------- ---------

2. AMENDMENT/MODIFICATION NO.      3. EFFECTIVE DATE                     4. REQUISITION/PURCHASE NO.        5. PROJECT NO.
   03                                 1999 JUN 08                              N65236-9158-8F03
---------------------------------- ------------------------------------- ---------------------------------- ----------------------
6. ISSUED BY             CODE         N65236                             7. ADMINISTERED BY (If other than Item 6)  CODE
   SPACE AND NAVAL WARFARE SYSTEMS CENTER
   P.O. BOX 190022
   NORTH CHARLESTON, SC 29419-9022                                          SAME AS BLOCK 6
   POC: NANCY GARTNER    CODE: 1113NG
   EMAIL: gartnern@spawar.navy.mil                                          2015-005
   TELEPHONE: (843) 974-5921
------------------------------------------------------------------------ ---------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)           (X)     9A. AMENDMENT OF SOLICITATION NO.
                                                                                   ----------
                                                                                      [ ]
                                                                                              ------------------------------------
   TELECOMMUNICATION SYSTEMS, INC.                TATONKA                                     9B. DATED (SEE ITEM II)
   275 WEST STREET                                ACCOUNTING
   SUITE 400                                      TAMPA                            ---------- ------------------------------------
   ANNAPOLIS, MD  21401                                                                       10A. MODIFICATION OF
                                                                                                   CONTRACT/ORDER NO.

                                                                                      [X]     N65236-99-A-7920/E005
                                                                                              ------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
-----------------------------------------------------------------------------------
CODE                                0HAL7               FACILITY CODE                         1999 MAY 12
---------------------------------------------------------------------------------- ---------- ------------------------------------
                                    11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the
solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __ copies of the
amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or
telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT
THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by
virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter provided
each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.
----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (if required)                                                              NET INCREASE
ACR:AC 2192035 62 7510 52122930 252G S28043 PRON A1-9-05026-1G-01  JON:9RCYJC                                     $18,090.33
JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA)   MIPR9ESPARC004
----------------------------------------------------------------------------------------------------------------------------------
                                13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                   IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
----------------------------------------------------------------------------------------------------------------------------------
         A. THIS CHANGE ORDER IS ISSUED PURSUANT TO:  (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
  (X)    CONTRACT ORDER NO. IN ITEM 10A.
--------
  [ ]
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
         office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

-------- -------------------------------------------------------------------------------------------------------------------------
  [X]    D. OTHER  (Specify type of modification and authority)   THIS UNILATERAL MODIFICATION IS ISSUED
         PURSUANT TO FAR CLAUSE 52.232-22 "LIMITATION OF FUNDS"
----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT:  Contractor  [X]  is not,  [ ]  is required to sign this document and return ORIGINAL copies to the issuing office.
----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter
where feasible.)

                                   SEE PAGE 2

Except as provided herein, all terms and conditions of the document reference in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER
                                                                              (Type or print)

                                                                         NANCY GARTNER
------------------------------------------------------------------------ ---------------------------------------------------------
15B. CONTRACTOR/OFFEROR                          15C. DATE SIGNED        16B. UNITED STATES OF AMERICA          16C. DATE SIGNED

                                                                         /S/ Nancy Gartner
 ---------------------------------------------                           ------------------------------------
    (Signature of person authorized to sign)         8 JUN 99            BY  (Signature of Contracting Officer)          99 JUN 08
------------------------------------------------------------------------ ---------------------------------------------------------
                                                                                                     STANDARD FORM 30 (REV. 10-83)
</TABLE>
<PAGE>   121
<TABLE>
<S>                                                                                                                             <C>

              MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E005                                             PAGE 2 OF 2
              MODIFICATION NO.                   03
==================================================================================================================================

1. THIS ORDER IS INCREMENTALLY FUNDED, AND THE AMOUNT CURRENTLY AVAILABLE IS LIMITED TO $72,365.33. SUBJECT TO THE PROVISIONS OF
   THE CLAUSE ENTITLED "LIMITATION OF FUNDS (APR 1984)", OF THE GENERAL PROVISIONS OF THE CONTRACT, NO LEGAL LIABILITY ON THE PART
   OF THE GOVERNMENT FOR PAYMENT IN EXCESS OF $72,365.33 SHALL ARISE UNLESS ADDITIONAL FUNDS ARE MADE AVAILABLE AND ARE
   INCORPORATED AS A MODIFICATION TO THIS ORDER.
</TABLE>
<PAGE>   122
<TABLE>
<S>                                                                                                                             <C>
-------------------------------------------------------------------------------- ----------------------------- --------- ---------
                                                                                 1. CONTRACT ID CODE             PAGE    OF PAGE
              AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                   1        1
-------------------------------------------------------------------------------- ----------------------------- --------- ---------

2. AMENDMENT/MODIFICATION NO.      3. EFFECTIVE DATE                     4. REQUISITION/PURCHASE NO.        5. PROJECT NO.
   02                                 1999 JUN 03                               N65236-9067-8F06
---------------------------------- ------------------------------------- ---------------------------------- ----------------------
6. ISSUED BY            CODE          N65236                             7. ADMINISTERED BY (If other than Item 6)   CODE

  SPACE AND NAVAL WARFARE SYSTEMS CENTER
  P.O. BOX 190022
  NORTH CHARLESTON, SC 29419-9022                                           SAME AS BLOCK 6
  POC: NANCY GARTNER    CODE: 1113NG
  EMAIL: gartnern@spawar.navy.mil                                           2015-005
  TELEPHONE: (843) 974-5921
------------------------------------------------------------------------ ---------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)           (X)     9A. AMENDMENT OF SOLICITATION NO.
                                                                                   ----------
                                                                                      [ ]
                                                                                              ------------------------------------
   TELECOMMUNICATION SYSTEMS, INC.                                                            9B. DATED (SEE ITEM 11)
   275 WEST STREET
   SUITE 400                                                                       ---------- ------------------------------------
   ANNAPOLIS, MD  21401                                                                       10A. MODIFICATION OF CONTRACT/ORDER
                                                                                                   NO.  GS-35F-4655H

                                                                                       [X]    N65236-99-A-7920/E005
                                                                                              ------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
---------------------------------------------------------------------------------
CODE                     0HAL7                           FACILITY CODE                        1999 MAR 12
---------------------------------------------------------------------------------- ---------- ------------------------------------
                         11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods: (a) By completing Items 8 and 15, and returning __ copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an
offer already submitted, such change may be made by telegram or letter, provided each telegram or letter, makes reference to the
solicitation and this amendment, and is received prior to the opening hour and date specified.
----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (if required)                                                 NO CHANGE

----------------------------------------------------------------------------------------------------------------------------------
                                13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                   IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
----------------------------------------------------------------------------------------------------------------------------------
         A. THIS CHANGE ORDER IS ISSUED PURSUANT TO:  (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
  (X)       CONTRACT/ORDER NO. IN ITEM 10A.
--------
  [ ]
-------- -------------------------------------------------------------------------------------------------------------------------
  [X]    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
            office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    D. OTHER  (Specify type of modification and authority)

----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT:  Contractor  [X]  is not,  [ ]  is required to sign this document and return ORIGINAL copies to the issuing office.

----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter
    where feasible.)

THE LINE OF ACCOUNTING (ACR:AA) ON THE ORIGINAL ORDER IS HEREBY CHANGED TO READ AS FOLLOWS:

ACR:AA  97X4930.NH3S  000  77777  0  065236  2F  000000  B90678F06AAN

AS A RESULT OF THE ABOVE CHANGE, THE TOTAL NOT TO EXCEED AMOUNT OF THE ORDER REMAINS UNCHANGED.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER
                                                                              (Type or print)

                                                                         NANCY GARTNER
------------------------------------------------------------------------ ---------------------------------------------------------
15B. CONTRACTOR/OFFEROR                          15C. DATE SIGNED        16B. UNITED STATES OF AMERICA          16C. DATE SIGNED

                                                                         /s/ Nancy Gartner
----------------------------------------------                           --------------------------------------
   (Signature of person authorized to sign)                              BY  (Signature of Contracting Officer)       99 Jun 03
------------------------------------------------------------------------ ---------------------------------------------------------
                                                                                                          STANDARD FORM 30 (10-83)
</TABLE>
<PAGE>   123
<TABLE>
<S>                                                                                                                             <C>
-------------------------------------------------------------------------------- ----------------------------- --------- ---------
                                                                                 1. CONTRACT ID CODE             PAGE    OF PAGE
              AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT                                                  1         2
-------------------------------------------------------------------------------- ----------------------------- --------- ---------
2. AMENDMENT/MODIFICATION NO.      3. EFFECTIVE DATE                     4. REQUISITION/PURCHASE REQ. NO.   5. PROJECT NO.
   01                                 1999 MAY 24                           N65236-9141-8F30
---------------------------------- ------------------------------------- ---------------------------------- ----------------------
6. ISSUED BY            CODE          N65236                             7. ADMINISTERED BY (If other than Item 6)

   SPACE AND NAVAL WARFARE SYSTEMS CENTER
   P.O. BOX 190022                                                       SAME AS BLOCK 6
   NORTH CHARLESTON, SC 29419-9022
   POC: NANCY GARTNER   CODE 1113NG                                      2015-005
   EMAIL: gartnern@spawar.navy.mil
   TELEPHONE: (843) 974-5921
------------------------------------------------------------------------ ---------------------------------------------------------
8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)           (X)     9A. AMENDMENT OF SOLICITATION NO.
                                                                                   ----------
                                                                                      [ ]
                                                                                              ------------------------------------
   TELECOMMUNICATION SYSTEMS, INC.                                                            9B. DATED (SEE ITEM II)
   275 WEST STREET
   SUITE 40                                                                        ---------- ------------------------------------
   ANNAPOLIS, MD  21401                                                                       10A. MODIFICATION OF
                                                                                                   CONTRACT/ORDER NO.
                                                                                      [X]     N65236-99-A-7920/E005
                                                                                              ------------------------------------
                                                                                              10B. DATED (SEE ITEM 13)
------------------------------------------------------------------------
CODE       0HAL7                            FACILITY CODE                                     1999 MAY 12
---------------------------------------------------------------------------------- ---------- ------------------------------------
                                    11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended, [ ] is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the
solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __ copies of the
amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or
telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT
THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by
virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter provided
each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.
----------------------------------------------------------------------------------------------------------------------------------
12. ACCOUNTING AND APPROPRIATION DATA (if required)                                           NET INCREASE
ACR:AB 2192035 62 7510 52122930 252G S28043 PRON A1-9-05026-1G-01 JON: 9RCYJC                  $26,275.00
JOB ORDER: BJB93X9X34 (W81D1699PARC004/AA) MIPR9ESPARC004
----------------------------------------------------------------------------------------------------------------------------------
                                13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                   IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
----------------------------------------------------------------------------------------------------------------------------------
         A. THIS CHANGE ORDER IS ISSUED PURSUANT TO:  (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE
  (X)    CONTRACT ORDER NO. IN ITEM 10A.
--------
  [ ]
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
         office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).
-------- -------------------------------------------------------------------------------------------------------------------------
  [ ]    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

-------- -------------------------------------------------------------------------------------------------------------------------
  [X]    D. OTHER  (Specify type of modification and authority)  THIS UNILATERAL MODIFICATION IS ISSUED
         PURSUANT TO FAR CLAUSE 52.232.-22 "LIMITATION OF FUNDS"
----------------------------------------------------------------------------------------------------------------------------------
E. IMPORTANT:  Contractor  [X]  is not,  [ ]  is required to sign this document and return ORIGINAL copies to the issuing office.
                                                                                           -
----------------------------------------------------------------------------------------------------------------------------------
14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter
where feasible.)

                                                      SEE PAGE 2

Except as provided herein, all terms and conditions of the document reference in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
----------------------------------------------------------------------------------------------------------------------------------
15A. NAME AND TITLE OF SIGNER (Type or print)                            16A. NAME AND TITLE OF CONTRACTING OFFICER
                                                                              (Type or print)

                                                                         NANCY GARTNER
------------------------------------------------------------------------ ---------------------------------------------------------
15B. CONTRACTOR/OFFEROR                          15C. DATE SIGNED        16B. UNITED STATES OF AMERICA          16C. DATE SIGNED

                                                                         /s/ Nancy Gartner
 ---------------------------------------------                           ------------------------------------
    (Signature of person authorized to sign)                             BY  (Signature of Contracting Officer)          99 May 24
------------------------------------------------------------------------ ---------------------------------------------------------
                                                                                                     STANDARD FORM 30 (REV. 10-83)
</TABLE>

<PAGE>   124
<TABLE>
<S>                                                                                                                             <C>

              MODIFICATION OF CONTRACT/ORDER NO. N65236-99-A-7920/E005                                             PAGE 2 OF 2
              MODIFICATION NO.                   01
==================================================================================================================================

1. BLOCK 25 OF THE ORIGINAL DD FORM 1155 IS HEREBY CHANGED TO READ $72,365.33 (NTE) IN LIEU OF $28,000.00 (NTE)

2. THIS ORDER IS INCREMENTALLY FUNDED, AND THE AMOUNT CURRENTLY AVAILABLE IS LIMITED TO $54,275.00. SUBJECT TO THE PROVISIONS OF
   THE CLAUSE ENTITLED "LIMITATION OF FUNDS (APR 1984)", OF THE GENERAL PROVISIONS OF THE CONTRACT, NO LEGAL LIABILITY ON THE PART
   OF THE GOVERNMENT FOR PAYMENT IN EXCESS OF $54,275.00 SHALL ARISE UNLESS ADDITIONAL FUNDS ARE MADE AVAILABLE AND ARE
   INCORPORATED AS A MODIFICATION TO THIS ORDER.
</TABLE>
<PAGE>   125
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB                 PAGE 1 OF 4
                       ORDER FOR SUPPLIES OR SERVICES                       No. 0704-0187                     --------------------
                                                                            Expires Jun 30, 1997              5. CERTIFIED FOR
                                                                                                                 NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
 1. CONTRACT/PURCH ORDER NO.      2. DELIVERY ORDER NO.      3. DATE OF ORDER        4. REQUISITION/PURCH    UNDER DMS REG 1
     GS-35F-4655                     E005                       1999 MAR. 12            REQUEST NO.          DO
     N65236-99-A-7920                                                                   N65236-9076-8F06
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                      8.DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                       [X] DEST
 P.O. BOX 190022                                                                2015-006                      [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                                 (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                              other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE                            10. DELIVER TO FOB POINT     11. MARK IF
                        -                          -                                 BY 1999 SEP 30               BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.    TATONKA              12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                   ACCOUNTING               NET 30                      DISADVANTAGED
                           SUITE 400                         TAMPA                                            [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                              SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                          CONTRACT OR
     M/F: N65236-99-A-7920/E005                           ST. LOUIS, MO 63120-0009 EFT: T                         ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   2192035    62    7510    52122930    25FB    S28043    MIPR9ESPARC005              $28,000.00
 JOB ORDER: BMU93P9A36 (W81D1699PARC005/AA)
 ---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT            23.
 ITEM NO.      SCHEDULE OF SUPPLIES/SERVICES                    ORDERED/                 UNIT        PRICE               AMOUNT
                                                                ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR
               CODE 123
               PO BOX 190022
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL        $28,000.00
 quantity ordered, indicate by X. If different, enter                                                 ----------------------------
 actual quantity accepted below quantity ordered and      /s/ Nancy Gartner
 encircle.                                                BY: NANCY GARTNER                           29.
                                                              CONTRACTING/ORDERING OFFICER            DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL         NO.
 -------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37.RECEIVED AT    38. RECEIVED BY    39. DATE RECEIVED    40.TOTAL CONTAINERS     41.S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                      NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   126
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED                PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E005
 ---------------------------------------------------------------------------------------------------------------------------------
 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
 ---------------------------------------------------------------------------------------------------------------------------------

 SECTION B - SUPPLIES OR SERVICES AND PRICES

 SERVICES AND MATERIAL TO ENSURE SUCCESSFUL PROGRAMMATIC OVERSIGHT ON THE
 VARIOUS JOTC PROJECTS IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

 FIRM FIXED PRICE: $28,000.00

 THIS ORDER IN INCREMENTALLY FUNDED, AND THE AMOUNT CURRENTLY AVAILABLE IS
 LIMITED TO $28,000.00. SUBJECT TO THE PROVISIONS OF THE CLAUSE ENTITLED
 "LIMITATION OF FUNDS (APR 1984)", OF THE GENERAL PROVISIONS OF THE CONTRACT,
 NO LEGAL LIABILITY ON THE PART OF THE GOVERNMENT FOR PAYMENT IN EXCESS OF
 $28,000.00 SHALL ARISE UNLESS ADDITIONAL FUNDS ARE MADE AVAILABLE AND ARE
 INCORPORATED AS A MODIFICATION TO THIS ORDER.

</TABLE>
<PAGE>   127
N65236-99-A-7920/E005                                                PAGE 3 OF 4

                               STATEMENT OF WORK

                              JOTC PROGRAM MANAGER

1. BACKGROUND

The Joint Operations Technology Center oversees a myriad of network projects to
include component integration into deployable systems and garrison systems, Y2k
testing, Systems Engineering, and various other engineering tasks for Department
of Defense organizations.

2. SCOPE

The purpose of this Statement of Work is to provide a Program Manager to ensure
successful programmatic oversight on the various JOTC projects and to be the
primary liaison between the JOTC and the Joint Communication Support Element and
the JOTC and USCENTCOM.

3. REQUIREMENTS

As a Program Manager, duties shall include:

a. Project initiation (budgeting, SOW completion, indoctrination, staffing,
   time-lines, and project kick-off)

b. Project performance (In-progress reviews, adherence to budget and schedule,
   quality assurance)

c. Project close-out (Deliverable completion, as-built documentation submission,
   project close-out)

In addition, this Project Manager will be the primary liaison with the Joint
Communications Support Element (JCSE) and USCENTCOM. In this capacity, the
contractor shall act as a constant agent to articulate the capabilities of the
JOTC team.

4. PERIOD OF PERFORMANCE

The period of performance for this SOW is 16 February 1999 to September 30,
1999.

5. MISCELLANEOUS

Due to the criticality of communication between the JOTC and this Program
Manager, the contractor is required to have a cellular phone at all times.

6. CLEARANCE
<PAGE>   128
N65236-99-A-7920/E005                                                PAGE 4 OF 4

Due to the nature of the various projects under the purview of this Program
Manager, the contractor must possess a Top Secret/SCI clearance.
<PAGE>   129
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB                 PAGE 1 OF 4
                       ORDER FOR SUPPLIES OR SERVICES                       No. 0704-0187                     --------------------
                                                                            Expires Jun 30, 1997              5. CERTIFIED FOR
                                                                                                                 NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
 1. CONTRACT/PURCH ORDER NO.      2. DELIVERY ORDER NO.      3. DATE OF ORDER       4. REQUISITION/PURCH      UNDER DMS REG 1
    ORDER NO.                        E004                       1999 MAR. 03           REQUEST NO.            DO
    GS-35F-4655H                                                                       N65236-9056-8F20
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                       8. DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                       [X] DEST
 P.O. BOX 190022                                                               2015-006                       [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                                 (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                              other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE TATONKA ACCOUNTING TAMPA    10. DELIVER TO FOB POINT    11. MARK IF
                        -                          -                                  BY 1999 MAR 12              BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.     TATONKA             12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                    ACCOUNTING              NET 30                      DISADVANTAGED
                           SUITE 400                          TAMPA                                           [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                                  SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY          CODE               MARK ALL
     CYPRESS GROUP                                        DFAS-Sl-AOD                                         PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                    PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                      CONTRACT OR
     M/F: N65236-99-A-7920/E004                           ST. LOUIS, MO 63120-0009         EFT: T             ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   2192035   0062  7510   52122930  252G  S28043  MIPR9ESPARC004          $7,477.92
 JOB ORDER: BJB93X9X34 (W81D1699PARCOO4/AA)
 --------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT            23.
 ITEM NO.      SCHEDULE OF SUPPLIES/SERVICES                        ORDERED/             UNIT            PRICE           AMOUNT
                                                                    ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR
               CODE 123
               PO BOX 190022
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL         $7,477.92
 quantity ordered, indicate by X. If different, enter                                                 ----------------------------
 actual quantity accepted below quantity ordered and      /s/ Nancy Gartner
 encircle.                                                BY: NANCY GARTNER                           29.
                                                              CONTRACTING/ORDERING OFFICER            DIFFERENCE
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL         NO.
 -------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT    38. RECEIVED BY   39. DATE RECEIVED   40. TOTAL CONTAINERS    41. S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                      NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   130
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED                PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E004
 ---------------------------------------------------------------------------------------------------------------------------------
 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
 ---------------------------------------------------------------------------------------------------------------------------------

 SECTION B - SUPPLIES OR SERVICES AND PRICES

 SERVICES AND MATERIAL FOR INSTALLATION OF THE IDNX 90 NODE
 IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

 FIRM FIXED PRICE: $7,477.92

</TABLE>
<PAGE>   131
N65236-99-A-7920/E004                                                PAGE 3 OF 3
                               STATEMENT OF WORK

                             IDNX 90 Node for JCSE

                                     DRAFT

1.  SCOPE:  Statement of Work (SOW) defines the requirement pertaining to IDNX
90 Node installation in to fixed plant racks.

2.  BACKGROUND:  JCSE is tasked by Joint Chief of Staff (JCS) to support a
deployed JTF and JSOTF headquarters with a maintenance and technical team during
both real world and deployment exercises. Joint Communications Support Element
is capable of deploying anywhere in the world within hours of notification and
responsible for providing communications support to Commanders, Joint Task
Forces and/or Joint Special Operations Task Forces Headquarters. JCSE is
equipped with the state of the art equipment and highly specialized personnel
that give this unit the capability to maintain it's high state of readiness.

3.  REQUIREMENTS.  SPAWARSYSCEN CHASN-JOTC shall install IDNX 90 Node into fixed
plant racks (3). This system will be configured and shipped to a
forward-deployed site providing JCSE the capability to recover Tactical Transit
Case systems in place. SPAWARSYSCEN CHASN-JOTC shall coordinate the following
activities with J-5 Branch and Alpha Squadron Tech Control:

     3.1.  Install government provided IDNX 90 Node into 19" Fixed Enclosures.
           Including Feature Shelves (4), High-Speed Shelf (1), and Power
           Distribution Units (2).

     3.2.  De-install Digital Trunk Group (DTG) from Transit Case provided by
           290th JCSS. This includes GM, Patch Panels, SEPs, GPS, and all
           associated cables. Then reinstall above items into 19" fixed
           enclosures. Included in this installation during de-install and
           re-install, all Trompeter Jacks will be replaced, to meet
           modification specifications. Reference: JCSE J-5 Directive, for
           modification of Trompeter Jacks in patch panels on TCTC systems.

     3.3.  Procure and Install 24-port CAT5 patch panel in the 19" fixed
           enclosure. This will be for breakout of MRVCs.

<PAGE>   132
N65236-99-A-7920/E004                                                PAGE 4 OF 4

     3.3.  Procure and Install 19" black, ventilated racks into the 19" fixed
           enclosure. Then install government provided PAIRGAINs on to the
           racks. This includes government provided associated cabling.

     3.5.  Install government provided MRVC cards and racks into 19" fixed
           enclosure. This includes government provided associated cabling.

     3.6.  De-install government provided HNF-81-1/Pulse Engineering Crypto
           Racks from existing JCSE systems and Re-install into 19" fixed
           enclosures. This includes all government provided associated cabling.

     3.7.  De-install government provided FCC-100 from existing JCSE systems and
           Re-install into 19" fixed enclosures. This includes all government
           provided associated cabling.

     3.8.  Install government provided Cisco 7500 series router into 19" fixed
           enclosures. This includes all government provided associated cabling.

     3.9.  Install government provided UPS into 19" fixed enclosures.

4.  TESTING:  SPAWARSYSCEN CHASN-JOTC and JCSE Alpha Squadron Tech Control will
be responsible for testing/inspection of IDNX 90 Node for operational readiness.

5. LOGISTICS SUPPORT: N/A

6.  GOVERNMENT FURNISHED EQUIPMENT (GFE): JCSE will provide all IDNX 90 Node
equipment. With the exception of the following equipment:

     1.  DB25 Male to DB25 Male, pinned straight through, overall shield.
         Quantity - 125

     2.  19" Rackmount Shelves, Black, Ventilated (for Pairgains). Quantity - 4

     3.  24-port CAT5 patch panel (for MRVC breakout). Quantity - 1

     4.  DB25 Fem to Fem Gender Changers. Quantity - 10

This equipment will be procured by SPAWARSYSCEN CHASN-JOTC.

9.  DELIVERY: The target completion date is 12 Mar 99. The actual completion
    date is dependent on the arrival of all GFE to JCSE. SPAWARSYSCEN CHASN-JOTC
    is not responsible for the procurement, delivery or delay of procurement and
    delivery of GFE.
<PAGE>   133
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB                 PAGE 1 OF 3
                        ORDER FOR SUPPLIES OR SERVICES                      No. 0704-0187                     --------------------
                                                                            Expires Jun 30, 1997              5. CERTIFIED FOR
                                                                                                                 NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
 1. CONTRACT/PURCH ORDER NO.     2. DELIVERY ORDER NO.        3. DATE OF ORDER         4. REQUISITION/PURCH    UNDER DMS REG 1
    GS-35F-4655H                    E003                         1999 MAR. 22             REQUEST NO.          DO
    N65236-99-A-7920                                                                      N65236-9055-8F07
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                        8. DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                        [X] DEST
 P.O. BOX 190022                                                                   2015-003                    [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                                  (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                               other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE                             10. DELIVER TO FOB POINT    11. MARK IF
                        -                          -                                  BY 1999 SEP 30              BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.     TATONKA             12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                    ACCOUNTING              NET 30                      DISADVANTAGED
                           SUITE 400                          TAMPA                                           [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                                  SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                          CONTRACT OR
     M/F: N65236-99-A-7920/E003                           ST. LOUIS, MO 63120-0009  EFT: T                        ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS ORDER NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Accept and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   2192035   62   7510   52122930   252G   S28043   MIPR9ESPARC004                                        $8,511.52
 JOB ORDER; BJB93X9X34 (W81D1699PARCOO4/AA)
---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT            23.
     ITEM NO.  SCHEDULE OF SUPPLIES/SERVICES                        ORDERED/                 UNIT        PRICE              AMOUNT
                                                                    ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR
               CODE 123
               PO BOX 190022
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL       $8,511.52
 quantity ordered, indicate by X. If different, enter                                                 ----------------------------
 actual quantity accepted below quantity ordered and      /s/ Nancy Gartner
 encircle.                                                BY: NANCY GARTNER                            29.
                                                              CONTRACTING/ORDERING OFFICER             DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL         NO.
 -------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT    38. RECEIVED BY    39. DATE RECEIVED    40. TOTAL CONTAINERS   41. S/R ACCOUNT    42. S/R VOUCHER NO.
                                                                                       NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   134
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED                PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E003
 ---------------------------------------------------------------------------------------------------------------------------------
 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
 ---------------------------------------------------------------------------------------------------------------------------------

 SECTION B - SUPPLIES OR SERVICES AND PRICES

 SERVICES AND MATERIAL FOR INTEGRATION OF THE TRANSIT CASED CIRCUIT SWITCH
 (TCCS) IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

 FIRM FIXED PRICE: $8,511.52

</TABLE>
<PAGE>   135
N65236-99-A-7920/E003                                                PAGE 3 OF 7

                               STATEMENT OF WORK

           For Integration of the Transit Cased Circuit Switch (TCCS)

1.  SCOPE.  The Statement of Work (SOW) defines the effort required for the
removal of equipment from the TSQ-188 and the installation of equipment into the
Transit Case Circuit Switch (TCCS), and the performance of system testing as
identified below.

2.  BACKGROUND.  The TCCS program was developed to begin the transition into the
Notional Voice Switch Architecture. Four packages have been developed to meet
JCSE Mission Requirements. The JCSE is a rapidly deployable, joint tactical
communications unit under the development control of the Joint Staff. The unit's
worldwide customers include all unified commands, Department of Defense (DOD)
level government agencies, the Services, and designated foreign governments.
JCSE provides both secure and nonsecure voice, message, data, and video
communications.

3.  REQUIREMENTS.  The work required under this SOW will be performed as
outlined below. The effort will be performed in four distinct phases. Phase one
will consist of the removal of components from the first TSQ-188. Phase Two will
consist of installation of components into the first TCCS and system testing.
Phase three will consist of removal of the components from the second TSQ-188.
Phase four will consist of installation of components into the second TCCS and
system testing. The contractor shall remove, install, and test the following
components:

     a.  Remove the following items from TSQ-188:

         --  Compact Digital Switch (CDS) and associated cards

         --  Single Row Nest (SRN) and associated cards

         --  Hardened Unique Storage unit (HGF-93)

         --  LKG's

         --  Call Service Position

         --  KY-57's

         --  System testing not required.

     b.  Install the following items in TCCS (see diagrams below) Each TCCS
         consists of five transit case modules:

         --  Compact Digital Switch Module consisting of a KY-57, Group Patch
             Bay, GPS and CDS.

         --  Single Row Nest Module consisting of Loop Patch Panels 1-5, SRN Fan
             Assembly, SRN, and SRN Power Supply.

         --  Call Service Position Console and Printer Module.

         --  KIV-19 Trunk Encryption Device Module containing 12 TEDs.

         --  Switch COMSEC Module consisting of an HGF-93 Transition Unit Nest
             Assembly containing one KGX-93 Automatic Key Distribution Center,
             eight KG-82 Loop Key Generators, and a 28 VDC power supply.

         --  Remove and replace 168 Trompeter J158 Jacks

         --  System Testing. All system testing procedures will be developed by
             and performed by JCSE. Contractor will observe system testing and
             be available to correct any deficiencies covered under the scope of
             this SOW.

4.  SCHEDULE.  *Time period for each phase is as follows:

Phase One      Start Date     18 Jan 99     Completion Date     22 Jan 99
Phase Two      Start Date     1 Mar 99      Completion Date     12 Mar 99
Phase Three    Start Date     22 Mar 99     Completion Date     2 Apr 99
Phase Four     Start Date     3 May 99      Completion Date     14 Apr 99

<PAGE>   136
N65236-99-A-7920/E003                                                PAGE 4 OF 7

5.  All equipment and technical documentation will be provided by JCSE.

6.  Required work area will be provided by JCSE.

* Start and stop dates are dependent upon equipment availability and are subject
  to change.
<PAGE>   137
<TABLE>
<S>                                                                           <C>                          <C>
COMPACT DIGITAL SWITCH (CDS) MODULE
                                                                              ========================     =========================
     --  Install one KY-57                                                           STORAGE                    AC POWER STRIP
     --  Install one Global Positioning System (GPS)                          ------------------------     -------------------------
     --  Install one Compact Digital Switch (CDS)                                     KY-57                      GROUP SEP 1
                                                                              ------------------------     -------------------------
                                                                                                                 GROUP SEP 2
                                                                              ------------------------     -------------------------
                                                                                   GROUP PATCH                   GROUP SEP 3
                                                                              ------------------------     -------------------------
                                                                                       GPS                      GPS REAR PANEL
                                                                              ------------------------     -------------------------
                                                                                                                   CDS REAR
                                                                              ------------------------     -------------------------
                                                                                       CDS                       DB-25 SEP 1
                                                                              ------------------------     -------------------------
                                                                                                                 DB-25 SEP 2
                                                                              ------------------------     -------------------------
                                                                                       22U
                                                                              ========================     =========================
                                                                                    FRONT VIEW                     REAR VIEW

SINGLE ROW NEST (SRN) MODULE
                                                                              ========================     =========================
     --  Install one Single Row Nest                                             LOOP PATCH PANEL 1              AC POWER STRIP
     --  Install one Single Row Nest Fan Assembly                             ------------------------     -------------------------
     --  Install one Single Row Nest Power Supply                                LOOP PATCH PANEL 2             STORAGE DRAWER 1
                                                                              ------------------------     -------------------------
                                                                                 LOOP PATCH PANEL 3             STORAGE DRAWER 2
                                                                              ------------------------     -------------------------
                                                                                 LOOP PATCH PANEL 4
                                                                              ------------------------     -------------------------
                                                                                 LOOP PATCH PANEL 5               BLANK PANEL
                                                                              ------------------------     -------------------------
                                                                                  SRN FAN ASSEMBLY
                                                                              ------------------------     -------------------------
                                                                                       SRN                     GROUP & GND PANEL
                                                                              ------------------------     -------------------------
                                                                                   SRN PWR SUPPLY                 LOOP SEP 1
                                                                              ------------------------     -------------------------
                                                                                       I5U                        LOOP SEP 2
                                                                              ========================     =========================
                                                                                    FRONT VIEW                     REAR VIEW

HGF-93 COMSEC MODULE
                                                                              ========================     =========================
     --  Install one Hardened Unique Storage Unit (HGF-93)                                                       AC POWER STRIP
     --  Install (16) KG-82 Loop Key Generators                               ------------------------     -------------------------
                                                                                   STORAGE DRAWER                STORAGE DRAWER
                                                                              ------------------------     -------------------------

                                                                                      HGF-93                        HGF-93
                                                                                   (AKDC & LKGs)                 (AKDC & LKGs)

                                                                              ------------------------     -------------------------
                                                                                    28 VDC POWER
                                                                              ========================     =========================
                                                                                     FRONT VIEW                    REAR VIEW
</TABLE>
<PAGE>   138
N65236-99-A-7920/E003                                                PAGE 6 OF 7

Call Service Position/Printer Module
     -  Install two PairGain Modems and one Mounting Tray      59-5-0569
     -  Install one Call Service Position
     -  Install one Printer                                    AC POWER STRIP

                                       Modem 1 and 2             CSPC REAR

                                            CSP
                                                                  PRINTER
                                                                   REAR

                                          PRINTER
                                      SLIDE ASSEMBLY           SLIDE ASSEMBLY

                                           110

                                        FRONT VIEW               REAR VIEW

KIV-19 Trunk Encryption Device Module                            59-0568-1
     -  Install (6) KIV-19 two pack racks
     - Install (12) KIV-19's                                    AC POWER STRIP
                                  RACK (1) KIV-19 (1 & 2)       KIV-19 RACK 1
                                  RACK (2) KIV-19 (3 & 4)       KIV-19 RACK 2

                                  RACK (3) KIV-19 (5 & 6)       KIV-19 RACK 3
                                  RACK (4) KIV-19 (7 & 8)       KIV-19 RACK 4

                                  RACK (5) KIV-19 (9 & 10)      KIV-19 RACK 5
                                  RACK (6) KIV-19 (11 & 12)     KIV-19 RACK 6
                                             9U

                                        FRONT VIEW                REAR VIEW

<PAGE>   139
<TABLE>
<S>                           <C>                          <C>                            <C>
59-5-0445-2                                     59-5-0569
---------------      --------------------       -----------------------     -------------------------
STORAGE                  AC POWER STRIP                                          AC POWER STRIP
---------------      --------------------       -----------------------     -------------------------
KY-57                    GROUP SEP 1                Modem 1 and 2                  CSPC REAR
---------------      --------------------       -----------------------     -------------------------
                         GROUP SEP 2                     CSP
GROUP PATCH          --------------------                                           PRINTER
                         GROUP SEP 3                   PRINTER                        REAR
---------------      --------------------       -----------------------     -------------------------
                                                    SLIDE ASSEMBLY               SLIDE ASSEMBLY
                     --------------------       -----------------------     -------------------------
GPS                     GPS REAR PANEL                   11U
---------------      --------------------       -----------------------     -------------------------

                          CDS REAR                    FRONT VIEW                   REAR VIEW

CDS                                             59-5-0568-1

                     --------------------       -----------------------     --------------------------
                         DB-25 SEP 1                                             AC POWER STRIP
                     --------------------       -----------------------     --------------------------
                         DB-25 SEP 2
----------------     --------------------       RACK (1) KIV-19 (1 & 2)          KIV-19 RACK 1
22U                                             -----------------------     --------------------------
----------------     --------------------       RACK (2) KIV-19 (3 & 4)          KIV-19 RACK 2
FRONT VIEW                REAR VIEW             -----------------------     --------------------------
                                                -----------------------     --------------------------
                                                RACK (3) KIV-19 (5 & 6)          KIV-19 RACK 3
                                                -----------------------     --------------------------
                                                RACK (4) KIV-19 (7 & 8)          KIV-19 RACK 4
                                                -----------------------     --------------------------
                                                -----------------------     --------------------------
                                                RACK (5) KIV-19 (9 & 10)         KIV-19 RACK 5
                                                -----------------------     --------------------------
                                                RACK (6) KIV-19 (11 & 12)        KIV-19 RACK 6
                                                -----------------------     --------------------------
                                                          9U
                                                -----------------------     --------------------------
59-5-0444-3
------------------   ---------------------             FRONT VIEW                  REAR VIEW
------------------   ---------------------
LOOP PATCH PANEL 1     AC POWER STRIP
------------------   ---------------------
LOOP PATCH PANEL 2
------------------    STORAGE DRAWER 1
LOOP PATCH PANEL 3
------------------   ---------------------
LOOP PATCH PANEL 4                              59-4
------------------    STORAGE DRAWER 2          -----------------------      -------------------------
LOOP PATCH PANEL 5                              -----------------------      -------------------------
------------------   ---------------------                                       AC POWER STRIP
SRN FAN ASSEMBLY                                                             -------------------------
------------------
                         BLANK PANEL                STORAGE DRAWER                 STORAGE DRAWER

SRN                  ---------------------      ----------------------       -------------------------
                       GROUP & GND PANEL
                     ---------------------             HGF-93                         HGF-93
                                                   (AKDC & LKGs)                  (AKDC & LKGs)
------------------       LOOP SEP 1

SRN PWR SUPPLY       ---------------------      ----------------------       -------------------------

                         LOOP SEP 2                 20 VDC POWER
------------------   ---------------------      ----------------------       -------------------------
I5U                                                        9
------------------   ---------------------      ----------------------       -------------------------
FRONT VIEW               REAR VIEW                     FRONT                         REAR VIEW
</TABLE>

<PAGE>   140
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB              PAGE 1 OF 4
                       ORDER FOR SUPPLIES OR SERVICES                       No. 0704-0187                  -----------------------
                                                                            Expires Jun 30, 1997           5. CERTIFIED FOR
                                                                                                              NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
 1. CONTRACT/PURCH ORDER NO.     2. DELIVERY ORDER NO.    3. DATE OF ORDER          4. REQUISITION/PURCH     UNDER DMS REG 1
    GS-35F-4655H                    E002                     1999 MAR. 03              REQUEST NO.           DO
    N65236-99-A-7920                                                                   N65236-9056-8F21
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                     8. DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                     [X] DEST
 P.O. BOX 190022                                                                   2015-002                 [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                               (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                            other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE TATONKA ACCOUNTING TAMPA    10. DELIVER TO FOB POINT    11. MARK IF
                        -                          -                              BY 1999 SEP 30                  BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.                         12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                                            NET 30                      DISADVANTAGED
                           SUITE 400                                                                          [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                              SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE                      15. PAYMENT WILL BE MADE BY  CODE                           MARK ALL
     CYPRESS GROUP                                        DFAS-SL-AOD                                             PACKAGES AND
     5850A WEST CYPRESS STREET                            4300 GOODFELLOW BLVD., BLDG. 110                        PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 2000009                                          CONTRACT OR
     M/F: N65236-99-A-7920/E002                           ST. LOUIS, MO 63120-0009 EFT: T                         ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   2192035    62    7510    52122930    252G    S28043    MIPR9ESPARC004                   $15,463.54
 JOB ORDER: BJB93X9X34 (W81D1699PARCOO4/AA)
 ---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT            23.
 ITEM NO.      SCHEDULE OF SUPPLIES/SERVICES                    ORDERED/                 UNIT        PRICE               AMOUNT
                                                                ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR
               CODE 123
               PO BOX 190022
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL        $15,463.54
 quantity ordered, indicate by X. If different, enter                                                 ----------------------------
 actual quantity accepted below quantity ordered and     /S/ Nancy Gartner                            ----------------------------
 encircle.                                               BY: NANCY GARTNER                            29.
                                                             CONTRACTING/ORDERING OFFICER             DIFFERENCE
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL     NO.
 -------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT  REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT    38. RECEIVED BY    39. DATE RECEIVED    40. TOTAL CONTAINERS  41. S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                      NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>
<PAGE>   141
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED               PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E002
 ---------------------------------------------------------------------------------------------------------------------------------
 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
 ---------------------------------------------------------------------------------------------------------------------------------

 SECTION B - SUPPLIES OR SERVICES AND PRICES

 SERVICES AND MATERIAL FOR THE INSTALLATION OF KIV-19 COMSEC DEVICES INTO
 RUGGEDIZED TRANSIT CASES IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK.

 FIRM FIXED PRICE: $15,463.54

</TABLE>
<PAGE>   142
N65236-99-A-7920/E002                                                PAGE 3 OF 4

                               STATEMENT OF WORK

                      KIV-19 Transit Case Integration JCSE

                                     DRAFT

1.  SCOPE:  Statement of Work (SOW) defines the requirement pertaining to the
installation of KIV-19 COMSEC devices into ruggedized transit cases.

2.  BACKGROUND:  The Joint Communications Support Element (JCSE) is capable of
deploying anywhere in the world within hours of notification and responsible for
providing communications support to Commanders, Joint Task Forces and/or Joint
Special Operations Task Forces Headquarters. This support is provided with
equipment that must be air transportable, rugged, small, and self-contained
enough to allow for easy transit. This Statement of Work describes a requirement
for a system with those properties.

3.  REQUIREMENTS:  SPAWARSYSCEN CHASN-JOTC shall install KIV-19 COMSEC devices
into ruggedized transit case, and provide all cabling. SPAWARSYSCEN CHASN-JOTC
shall coordinate the following activities with J-5 Branch:

    3.1.   Procure the following items

          -  6 ruggedized transit cases
          -  6 19" rack mountable power strips
          -  12 "10" "19" blank panels
             (to cover empty space between KIV-19 racks.)
          -  24 Black output cables.
          -  24 Red output cables.

    3.2.  Install KIV-19 racks into ruggedized cases, 2 racks per each case.

    3.3.  Install KIV-19 COMSEC devices into the racks.

    3.4.  Procure and install 6 rack mountable power strips into ruggedized
          cases.

    3.5.  Procure and install 24 Red output and 24 Black output cables, per
          system configuration.

    3.6.  Procure and install 12 "IU" blank panels into ruggedized cases, 2 per
          case.

<PAGE>   143
N65236-99-A-7920/E002                                                PAGE 4 OF 4

4.  TESTING:  SPAWARSYSCEN CHASN-JOTC and JCSE J-5A will be responsible for
operational testing of systems prior to acceptance.

5. LOGISTICS SUPPORT: N/A

6. GOVERNMENT FURNISHED EQUIPMENT (GFE): JCSE will provide the following items:

     1.  24 KIV-19 COMSEC Devices

     2.  12 Dual KIV-19 racks w/power supplies

SPAWARSYSCEN CHASN-JOTC will procure the remainder of the equipment as listed
above in Para 3.1.

9.  DELIVERY: The target completion date is September 99. The actual completion
date is dependent on the arrival of all GFE to JCSE. SPAWARSYSCEN CHASN-JOTC is
not responsible for the procurement and delivery or delay of procurement and
delivery of GFE.

<PAGE>   144
<TABLE>
<S>                                                                                                                             <C>
 ---------------------------------------------------------------------------------------------------------------------------------
                                                                            Form Approved OMB              PAGE 1 OF 4
                       ORDER FOR SUPPLIES OR SERVICES                       No. 0704-0187                  ---------------------
                                                                            Expires Jun 30, 1997          5. CERTIFIED FOR
                                                                                                             NATIONAL DEFENSE
 ---------------------------------------------------------------------------------------------------------------------------------
 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for
 reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
 reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
 information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Services,
 Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to
 the Office of Management and Budget, Paperwork Reduction Project (0704-0187), Washington, DC 20503.

                               PLEASE DO NOT RETURN YOUR FORM TO EITHER OF THESE ADDRESSES.
                   SEND YOUR COMPLETED FORM TO THE PROCUREMENT OFFICIAL IDENTIFIED IN ITEM 6.
 ---------------------------------------------------------------------------------------------------------------------------------
  1. CONTRACT/PURCH ORDER NO.     2. DELIVERY ORDER NO.     3. DATE OF ORDER       4. REQUISITION/PURCH     UNDER DMS REG 1
     GS-35F-4655H                    E001                      1999 JAN. 22           REQUEST NO.           DO
     N65236-99-A-7920                                                                 N65236-9014-9B01
 ---------------------------------------------------------------------------------------------------------------------------------
 6. ISSUED BY               CODE N65236       7. ADMINISTERED BY (If other than 6) CODE                       8. DELIVERY FOB
 SPACE AND NAVAL WARFARE SYSTEMS CENTER                                                                       [X] DEST
 P.O. BOX 190022                                                                   2015-006                   [ ] OTHER
 NORTH CHARLESTON, SC 29419-9022              SAME AS BLOCK 6                                                 (See Schedule if
 POC: NANCY GARTNER CODE: 1113NG                                                                              other)
 EMAIL: gartnern@spawar.navy.mil
 TELEPHONE: (843) 974-5921
 ---------------------------------------------------------------------------------------------------------------------------------
 9. CONTRACTOR             CODE 0HAL7   FACILITY CODE 2015-001                    10. DELIVER TO FOB POINT    11. MARK IF
                        -                          -                              BY 1999 SEP 30                  BUSINESS IS
                                                                                                              [ ] SMALL
 NAME AND                  TELECOMMUNICATION SYSTEMS INC.                         12. DISCOUNT TERMS          [ ] SMALL
 ADDRESS                   275 WEST STREET                                            NET 30                      DISADVANTAGED
                           SUITE 400                                                                          [ ] WOMEN-OWNED
                           ANNAPOLIS, MD 21401                                    13. MAIL INVOICES TO
                        -                          -                              SAME AS BLOCK 19
 ---------------------------------------------------------------------------------------------------------------------------------
 14. SHIP TO                CODE N65236                   15. PAYMENT WILL BE MADE BY  CODE 068688                MARK ALL
     CYPRESS GROUP                                        DFAS-SD OPLOC                                           PACKAGES AND
     5850A WEST CYPRESS STREET                            CODE FPV                                                PAPERS WITH
     TAMPA, FL 33607                                      PO BOX 429100                                           CONTRACT OR
     ATTN: DAVE PIERCE, CODE 34DP                         SAN DIEGO, CA 92142-9100 EFT: T                         ORDER NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 16.      DELIVERY [X]
   TYPE                 This delivery order is issued on another Government agency or in accordance with and subject to terms and
 OF ORDER               conditions of above numbered contract.
 ---------------------------------------------------------------------------------------------------------------------------------
          PURCHASE [ ]  Reference your                furnish the following on terms specified herein.
                        ----------------------------------------------------------------------------------------------------------
                        ACCEPTANCE. THE CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE ORDER AS IT MAY
                        PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET FORTH, AND
                        AGREES TO PERFORM THE SAME.

 --------------------------------  -------------------------  -------------------------------------------  ----------------------
        NAME OF CONTRACTOR                SIGNATURE                        TYPED NAME AND TITLE                  DATE SIGNED

 [ ] If this box is marked, supplier must sign Acceptance and return the following number of copies:
 ---------------------------------------------------------------------------------------------------------------------------------
 17. ACCOUNTING AND APPROPRIATION DATA/LOCAL USE
 ACR:AA   97X4930.NH3S   000   77777   0   065236   2F 000000   B90149B01AAN                                       $5,104.00
 JOB ORDER: 6B30089TMP (N65236XXPDOVRHD)
 ---------------------------------------------------------------------------------------------------------------------------------
 18.           19.                                              20. QUANTITY             21.         22. UNIT            23.
 ITEM NO.      SCHEDULE OF SUPPLIES/SERVICES                    ORDERED/                 UNIT        PRICE               AMOUNT
                                                                ACCEPTED*
 ---------------------------------------------------------------------------------------------------------------------------------
               MAIL INVOICES TO:
               SPAWAR                                           TATONKA
               CODE 123                                         ACCOUNTING
               PO BOX 190022                                    TAMPA
               N. CHARLESTON, SC 29419-9022
                                                                                                                           NET
 ---------------------------------------------------------------------------------------------------------------------------------
 *If quantity accepted by the Government is same as       24. UNITED STATES OF AMERICA                25. TOTAL  $1,516,713/70
 quantity ordered, indicate by X. If different, enter     /S/ Nancy Gartner                           ----------------------------
 actual quantity accepted below quantity ordered and      BY: NANCY GARTNER                           29.
 encircle.                                                    CONTRACTING/ORDERING OFFICER            DIFFERENCES
 ---------------------------------------------------------------------------------------------------------------------------------
 26. QUANTITY IN COLUMN 20 HAS BEEN
 [ ] INSPECTED [ ] RECEIVED [ ] ACCEPTED, AND  CONFORMS TO THE
                                CONTRACT EXCEPT AS NOTED           27. SHIP. NO.   28. D.O. VOUCHER   30. INITIALS
                                                                   [ ] PARTIAL     NO.
 -------  --------------------------------------------------       [ ] FINAL
 DATE     SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE
 ---------------------------------------------------------------------------------------------------------------------------------
 36. I certify this account is correct and proper for payment.     31. PAYMENT
                                                                   [ ] COMPLETE
                                                                   [ ] PARTIAL                        33. AMOUNT VERIFIED
 DATE  SIGNATURE AND TITLE OF CERTIFYING OFFICER                   [ ] FINAL       32. PAID BY            CORRECT FOR
                                                                                                      ----------------------------
                                                                                                      34. CHECK NUMBER
                                                                                                      ----------------------------
                                                                                                      35. BILL OF LADING NO.
 ---------------------------------------------------------------------------------------------------------------------------------
 37. RECEIVED AT    38. RECEIVED BY    39. DATE RECEIVED    40. TOTAL CONTAINERS  41. S/R ACCOUNT     42. S/R VOUCHER NO.
                                                                                      NUMBER
 ---------------------------------------------------------------------------------------------------------------------------------
 DD FORM 1155, JUN 94

</TABLE>

<PAGE>   145
<TABLE>
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                                                      REFERENCE NO. OF DOCUMENT BEING CONTINUED               PAGE 2
                         CONTINUATION SHEET
                                                           N65236-99-A-7920/E001
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 NAME OF OFFEROR OR CONTRACTOR
 TELECOMMUNICATION SYSTEMS, INC.
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 THIS IS A FIRM FIXED PRICE ORDER.

 SECTION B - SUPPLIES OR SERVICES AND PRICES

                                                                   UNIT
                                                                   OF         UNIT
 ITEM NO.    SUPPLIES/SERVICES                       QUANTITY      ISSUE      PRICE      AMOUNT

 0001        MATERIAL FOR THE                           1           LOT     $5,104.00   $5,104.00
             IDNX 90 NODE INSTALLATION
             IN ACCORDANCE WITH THE
             ATTACHED STATEMENT OF WORK

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N65236-99-A-7920/E001                                                PAGE 3 OF 4

                               STATEMENT OF WORK

              IDNX 90 Node for Joint Communication Support Element

1.  SCOPE:  Statement of Work (SOW) defines the requirement pertaining to IDNX
90 Node installation in to fixed plant racks.

2.  BACKGROUND:  Joint Communication Support Element (JCSE) is tasked by Joint
Chief of Staff (JCS) to support a deployed JTF and JSOTF headquarters with a
maintenance and technical team during both real world and deployment exercises.
The JCSE is capable of deploying anywhere in the world within hours of
notification and is responsible for providing communications support to
Commanders, Joint Task Forces and/or Joint Special Operations Task Forces
Headquarters. JCSE is equipped with state of the art equipment and highly
specialized personnel giving this unit the capability to maintain a high state
of readiness.

3.  REQUIREMENTS:  SPAWARSYSCEN CHASN-JOTC shall install IDNX 90 Node into
three(3) fixed plant racks. This system will be configured and shipped to a
forward-deployed site providing JCSE the capability to recover Tactical Transit
Case systems in place. SPAWARSYSCEN CHASN-JOTC shall coordinate/perform the
following activities with J-5 Branch and Alpha Squadron Tech Control:

     3.1.  Install government provided IDNX 90 Node into 19" Fixed Enclosures.
           This shall include Feature Shelves (4), High-Speed Shelf (1), and
           Power Distribution Units (2).

     3.2.  De-install Digital Trunk Group (DTG) from Transit Case provided by
           290th JCSS. This included GM, Patch Panels, SEPs, GPS, and all
           associated cables. Reinstall above items into 19" fixed enclosures.
           Included in this installation during de-install and re-install, all
           Trompeter Jacks will be replaced, to meed modification
           specifications. Reference: JCSE J-5 Directive, for modification of
           Trompeter Jacks in patch panels on TCTC systems.

     3.3.  Procure and Install 24-port CAT5 patch panel in the 19" fixed
           enclosure. This will be for breakout of MRVCs.

     3.4.  Procure and Install 19" black, ventilated racks into the 19" fixed
           enclosure. Install government provided

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N65236-99-A-7920/E001                                                PAGE 4 OF 4

          PAIRGAINs on to the racks. This includes government provided
          associated cabling.

    3.5.  Install government provided MRVC cards and racks into 19" fixed
          enclosure. This includes government provided associated cabling.

    3.6.  De-install government provided HNF-81-1/Pulse Engineering Crypto Racks
          from existing JCSE systems and Re-install into 19" fixed enclosures.
          This includes all government provided associated cabling.

    3.7.  De-install government provided FCC-100 from existing JCSE systems and
          Re-install into 19" fixed enclosures. This includes all government
          provided associated cabling.

    3.8.  Install government provided Cisco 7500 series router into 19" fixed
          enclosures. This includes all government provided associated cabling.

    3.9.  Install government provided UPS into 19" fixed enclosures.

4.  TESTING:  SPAWARSYSCEN CHASN-JOTC and JCSE Alpha Squadron Tech Control will
be responsible for testing/inspection of IDNX 90 Node for operational readiness.

5.  LOGISTICS SUPPORT: N/A

6.  GOVERNMENT FURNISHED EQUIPMENT (GFE): JCSE will provide all IDNX 90 Node
equipment. With the exception of the following equipment:

    1.    DB25 Male to DB25 Male, pinned straight through, overall shield.
          Quantity - 125

    2.    19" Rackmount Shelves, Black, Ventilated (for Pairgains). Quantity - 4

    3.    24-port CAT5 patch panel (for MRVC breakout). Quantity - 1

    4.    DB25 Fem to Fem Gender Changers. Quantity - 10

This equipment will be procured by SPAWARSYSCEN CHASN-JOTC.

9.  DELIVERY:  The target completion date is 12 Jan 99. The actual completion
date is dependent on the arrival of all GFE to JCSE. SPAWARSYSCEN CHASN-JOTC is
not responsible for the procurement and delivery or delay of procurement and
delivery of GFE.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]