Working Capital Funding Offer Letter between Commerce Funding Corporation and TeleCommunication Systems, Inc.

Summary

Commerce Funding Corporation offers TeleCommunication Systems, Inc. an $8 million working capital facility secured by a first-priority interest in all accounts receivable. CFC will advance 92% of verified invoice amounts, with interest at Prime plus 1.5% and a 0.55% processing fee per 45 days. A $2,500 due diligence fee is required, and the agreement's term is tied to the length of the loan. Daily collection reports will be provided, and senior personnel will manage the account. Initial funding is expected within 5 to 7 days of acceptance.

EX-10.26 10 0010.txt LETTER FROM COMMERCE FUNDING CORPORATION 1 Exhibit 10.26 [Letterhead of Commerce Funding Corporation] March 7, 1997 Richard Young Vice President TeleCommunication Systems, Inc. 275 West Street Ste 400 Annapolis, MD ###-###-#### Dear Mr. Young: In reference to your working capital requirements, Commerce Funding Corporation ("CFC") offers to provide the following: Collateral: First place security interest of all accounts receivables now or hereafter due debtor. Funding: 92% Advance against all verified invoices pertaining to assigned contracts. Facility Size: $8,000,000 Interest Rate: Prime Plus 1.5% Processing Fee: .55% on invoice amount per 45 days, to be prorated on a daily basis after 45 days. Due Diligence Fee: $2,500 Minimum Commitment: Length of term loan Invoice Signoffs: Required Collection Reports: CFC provides daily. Contract Administrator: Senior personnel assigned to account.

If you accept our offer, please return a signed copy of this letter along with the due diligence fee. As we discussed, we anticipate that the initial funding will take place within 5 to 7 days of your acceptance of this offer. Sincerely, /s/ Gayle Dorsey Gayle Dorsey Sr. Vice President /s/ Maurice Tose Dated 13 Mar 97 - ----------------------------------- ------------- Telecommunication Systems, Inc.