EX-10.1






PURCHASE AGREEMENT




       (the “Undersigned”), for itself and on behalf of the beneficial owners
listed on Exhibit A hereto (“Accounts”) for whom the Undersigned holds contractual, investment and
selling authority (each Account, as well as the Undersigned if it is selling Notes (as defined
below) hereunder, a “Holder”), enters into this Purchase Agreement (the “Agreement”) with
TeleCommunication Systems, Inc. (the “Company”) on July      , 2013 whereby the Holders will sell to
the Company (the “Sale”) the Company’s 4.50% Convertible Senior Notes due 2014 (the “Notes”)
together with all accrued but unpaid interest thereon.



On and subject to the terms and conditions set forth in this Agreement, the parties hereto
agree as follows:



Article I: Sale and Purchase of the Notes




At the Closing (as defined herein), the Undersigned hereby agrees to cause the Holders to sell
and deliver to the Company, and the Company hereby agrees to purchase, the following Notes and all
accrued but unpaid interest thereon for the cash purchase price specified below:




	 	 	Principal Amount of Notes to be sold in the Sale: $     






(together with all accrued but unpaid
interest thereon, the “Sold Notes”).




	 	 	Cash Purchase Price: $      (inclusive of $     
of accrued interest) (the “Purchase Price”).





The closing of the Sale (the “Closing”) shall occur on a date (the “Closing Date”) no later
than three business days after the date of this Agreement. At the Closing, (a) each Holder shall
deliver or cause to be delivered to the Company all right, title and interest in and to its Sold
Notes free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title
retention agreement, option, equity or other adverse claim thereto (collectively, “Liens”),
together with any documents of conveyance or transfer that the Company may deem necessary or
desirable to transfer to and confirm in the Company all right, title and interest in and to the
Sold Notes free and clear of any Liens and (b) the Company shall deliver to each Holder the portion
of the Purchase Price specified on Exhibit A hereto (or, if there are no Accounts, the Company
shall deliver to the Undersigned, as the sole Holder, the Purchase Price specified above).



Article II: Covenants, Representations and Warranties of the Holders




Each Holder (and, where specified below, the Undersigned) hereby covenants (solely as to
itself), as follows, and makes the following representations and warranties (solely as to itself),
each of which is and shall be true and correct on the date hereof and at the Closing, to the
Company, Lazard Frères & Co. LLC and Lazard Capital Markets LLC, and all such covenants,
representations and warranties shall survive the Closing.



Section 2.1 Power and Authorization. The Holder is duly organized, validly existing
and in good standing, and has the power, authority and capacity to execute and deliver this
Agreement, to perform its obligations hereunder, and to consummate the Sale contemplated hereby.
If the Undersigned is executing this Agreement on behalf of Accounts, (a) the Undersigned has all
requisite discretionary and contractual authority to enter into this Agreement on behalf of, and
bind, each Account, and (b) Exhibit A hereto is a true, correct and complete list of
(i) the name of each Account, (ii) the principal amount of such Account’s Sold Notes, and (iii) the
portion of the Purchase Price to be paid to such Account.



Section 2.2 Valid and Enforceable Agreement; No Violations. This Agreement has been
duly executed and delivered by the Undersigned and the Holder and constitutes a legal, valid and
binding obligation of the Undersigned and the Holder, enforceable against the Undersigned and the
Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or
relating to enforcement of creditors’ rights generally, and (b) general principles of equity,
whether such enforceability is considered in a proceeding at law or in equity (the “Enforceability
Exceptions”). This Agreement and consummation of the Sale will not violate, conflict with or
result in a breach of or default under (i) the Undersigned’s or the Holder’s organizational
documents, (ii) any agreement or instrument to which the Undersigned or the Holder is a party or by
which the Undersigned or the Holder or any of their respective assets are bound, or (iii) any laws,
regulations or governmental or judicial decrees, injunctions or orders applicable to the
Undersigned or the Holder.



Section 2.3 Title to the Sold Notes. The Holder is the sole legal and beneficial
owner of the Sold Notes set forth opposite its name on Exhibit A hereto (or, if there are no
Accounts, the Undersigned is the sole legal and beneficial owner of all of the Sold Notes). The
Holder has good, valid and marketable title to its Sold Notes, free and clear of any Liens (other
than pledges or security interests that the Holder may have created in favor of a prime broker
under and in accordance with its prime brokerage agreement with such broker). The Holder has not,
in whole or in part, except as described in the preceding sentence, (a) assigned, transferred,
hypothecated, pledged, exchanged or otherwise disposed of any of its Sold Notes or its rights in
its Sold Notes, or (b) given any person or entity any transfer order, power of attorney or other
authority of any nature whatsoever with respect to its Sold Notes. Upon the Holder’s delivery of
its Sold Notes to the Company pursuant to the Sale, such Sold Notes shall be free and clear of all
Liens created by the Holder.



Section 2.4 No Illegal Transactions. Each of the Undersigned and the Holder has not,
directly or indirectly, and no person acting on behalf of or pursuant to any understanding with it
has, disclosed to a third party any information regarding the Sale or engaged in any transactions
in the securities of the Company (including, without limitation, any Short Sales (as defined below)
involving any of the Company’s securities) since the time that the Undersigned was first contacted
by either the Company, Lazard Frères & Co. LLC or Lazard Capital Markets LLC or any other person
regarding the Sale, this Agreement or the Company. Each of the Undersigned and the Holder
covenants that neither it nor any person acting on its behalf or pursuant to any understanding with
it will disclose to a third party any information regarding the Sale or engage, directly or
indirectly, in any transactions in the securities of the Company (including Short Sales) prior to
the time the transactions contemplated by this Agreement are publicly disclosed. “Short Sales”
include, without limitation, all “short sales” as defined in Rule 200 of Regulation SHO promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and all types of direct
and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps,
derivatives and similar arrangements (including on a total return basis), and sales and other
transactions through non-U.S. broker-dealers or foreign regulated brokers. Solely for purposes of
this Section 2.4, subject to the Undersigned’s and the Holder’s compliance with their respective
obligations under the U.S. federal securities laws and the Undersigned’s and the Holder’s
respective internal policies, (a) “Undersigned” and “Holder” shall not be deemed to include any
employees, subsidiaries or affiliates of the Undersigned or the Holder that are effectively walled
off by appropriate “Chinese Wall” information barriers approved by the Undersigned’s or the
Holder’s respective legal or compliance department (and thus have not been privy to any information
concerning the Sale), and (b) the foregoing representations and covenants of this Section 2.6 shall
not apply to any transaction by or on behalf of an Account that was effected without the advice or
participation of, or such Account’s receipt of information regarding the Sale provided by, the
Undersigned.



Section 2.5 Adequate Information; No Reliance. The Holder acknowledges and agrees
that (a) the Holder has been furnished with all materials it considers relevant to making an
investment decision to enter into the Sale and has had the opportunity to review the Company’s
filings and submissions with the Securities and Exchange Commission (the “SEC”), including, without
limitation, all information filed or furnished pursuant to the Exchange Act, (b) the Holder has had
a full opportunity to ask questions of the Company concerning the Company, its business,
operations, financial performance, financial condition and prospects, and the terms and conditions
of the Sale, (c) the Holder has had the opportunity to consult with its accounting, tax, financial
and legal advisors to be able to evaluate the risks involved in the Sale and to make an informed
investment decision with respect to such Sale, and (d) the Holder is not relying, and has not
relied, upon any statement, advice (whether accounting, tax, financial, legal or other),
representation or warranty made by the Company or any of its affiliates or representatives
including, without limitation, Lazard Frères & Co. LLC and Lazard Capital Markets LLC, except for
(A) the publicly available filings and submissions made by the Company with the SEC under the
Exchange Act and (B) the representations and warranties made by the Company in this Agreement.



Article III: Covenants, Representations and Warranties of the Company




The Company hereby covenants as follows, and makes the following representations and
warranties, each of which is and shall be true and correct on the date hereof and at the Closing,
to the Holders, Lazard Frères & Co. LLC and Lazard Capital Markets LLC, and all such covenants,
representations and warranties shall survive the Closing.



Section 3.1 Power and Authorization. The Company is duly incorporated, validly
existing and in good standing under the laws of its state of incorporation, and has the power,
authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder,
and to consummate the Sale contemplated hereby.



Section 3.2 Valid and Enforceable Agreement; No Violations. This Agreement has been
duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except that such
enforcement may be subject to the Enforceability Exceptions. This Agreement and consummation of
the Sale will not violate, conflict with or result in a breach of or default under (a) the charter,
bylaws or other organizational documents of the Company, (b) any agreement or instrument to which
the Company is a party or by which the Company or any of its assets are bound, or (c) any laws,
regulations or governmental or judicial decrees, injunctions or orders applicable to the Company.



Section 3.3 Disclosure. On or before the first business day following the date of
this Agreement, the Company shall issue a publicly available press release or file with the SEC a
Current Report on Form 8-K disclosing all material terms of the Sale and certain other matters
concerning the Company (to the extent not previously publicly disclosed).



Article IV: Miscellaneous




Section 4.1 Entire Agreement. This Agreement and any documents and agreements
executed in connection with the Sale embody the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral
or written agreements, representations, warranties, contracts, correspondence, conversations,
memoranda and understandings between or among the parties or any of their agents, representatives
or affiliates relative to such subject matter, including, without limitation, any term sheets,
emails or draft documents.



Section 4.2 Construction. References in the singular shall include the plural, and
vice versa, unless the context otherwise requires. References in the masculine shall include the
feminine and neuter, and vice versa, unless the context otherwise requires. Headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the
meanings of the provisions hereof. Neither party, nor its respective counsel, shall be deemed the
drafter of this Agreement for purposes of construing the provisions of this Agreement, and all
language in all parts of this Agreement shall be construed in accordance with its fair meaning, and
not strictly for or against either party.



Section 4.3 Governing Law. This Agreement shall in all respects be construed in
accordance with and governed by the substantive laws of the State of New York, without reference to
its choice of law rules.



Section 4.4 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one and the
same instrument. Any counterpart or other signature hereon delivered by facsimile shall be deemed
for all purposes as constituting good and valid execution and delivery of this Agreement by such
party.



[Signature Page Follows]




IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed
as of the date first above written.



	 	 	 
	“UNDERSIGNED”:

	 	“COMPANY”:
	(in its capacities described in the first

paragraph hereof)

	 	TELECOMMUNICATION SYSTEMS, INC.

By:
	By:

	 	Name:
	—

	 	Title:
	Name:

	 	

	Title:

	 	







EXHIBIT A

Selling Beneficial Owners




	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	Portion of
	Beneficial Owner	 	Principal Amount of Sold Notes	 	Purchase Price