Document:

<PAGE>   1

Confidential materials submitted and filed separately with the Securities and
Exchange Commission. Four asterisks are used to denote omissions.

                                                                    Exhibit 10.1

                 A-I-NET(R) SCN APPLICATION DEVELOPMENT AGREEMENT

         THIS AGREEMENT ("Agreement"),dated as of 4/4/96, ("Effective Date")
is between Lucent Technologies Inc. (Lucent) with offices at 2000 N. Naperville
Road., Naperville, Illinois 60566-7033 and TeleCommunication Systems, Inc.
("TCS") a Maryland corporation, with offices at Suite 400, 275 West Street,
Annapolis, Maryland 21401.

         WHEREAS, TCS is in the business of providing a full range of
information technology services, including consulting, systems development,
systems integration, systems installation and implementation and systems
management for a variety of industries; and

         WHEREAS Lucent is in the business of providing products to enable the
development of advanced telecommunications services, generally known as Advanced
Intelligent Network Services ("AIN"); and

         WHEREAS, Lucent has developed and owns certain Software and Hardware
known as Lucent A-I-Net(R) products, consisting of, without limitation, the
Service Circuit Node ("SCN"),the Service Control Point ("SCP"), the Service
Creation Environment ("SCE"), and the Service Management System ("SMS"), which
include modules or subsystems which it has developed and/or acquired licensing
rights from various vendors, being referred to collectively herein as "AIN
Products Group",

         NOW, THEREFORE, Lucent and TCS hereby agree as follows:

1.       DEFINITIONS

For the purposes of this Agreement, the following terms and their definitions
shall apply:

         "Affiliate" of a corporation means its subsidiaries, any company of
         which it is a subsidiary, and other subsidiaries of such company
         controlled by such party. For the purposes of this Agreement
         "controlled" means having directly or indirectly a majority of the
         voting rights of such entity.

                                       1

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   2
         "Applications" means any software and associated documentation produced
         using Lucent's SCE (with or without additional outside components) that
         provides utility to either Lucent, TCS, or users of SCNs.

         "Application Development Plan," means the mutually agreed upon plan for
         development of each Application pursuant to this Agreement, including,
         but not limited to, time frames for development, lab time requirements,
         procedures for modifications to the Application Development Plan, joint
         marketing and sales arrangements, Application maintenance and
         warranties, Application revenue projections, billing procedures,
         Application updates and Application acceptance criteria. Each
         Application Development Plan shall be included as addenda to this
         Agreement.

         "Development Start Date" means the mutually agreed upon date to
         commence Application development at TCS premises.

         "Documentation" means Lucent's AIN Products Group documentation,
         technical specifications and such other information which is
         customarily provided to Lucent's commercial customers. Such
         documentation shall encompass one (1) hard copy (if available) and one
         (1) MS/DOS CD-ROM version (software only), with updates and releases as
         applicable.

         "Firmware" means a combination of (1) Hardware and (2) Software
         represented by a pattern of bits contained in such Hardware.

         "Hardware" means the equipment components of the SCE (i.e., Compile
         Server) as described in this Agreement and provided by Lucent to TCS as
         specified in this Agreement.

         "Revenues" are the proceeds from the sale of the software only
          component of Applications l and 2 either by Lucent, TCS or jointly.
          It does not include the proceeds from the sale of maintenance
          agreements on the Applications, any future enhancements done by TCS
          on the Applications, or any hardware and other software that may be
          associated with the total sale.

                                        2

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   3
         "SCE" means Lucent's Service Creation Environment Software, including a
         Compile Server, and the necessary number of tokens required by TCS to
         complete the development of the Applications as specified in each of
         the Application Development Plans.

         "SCE Documentation" means a subset of documentation within the AIN
         Products Group, pertaining to the Service Creation Environment.

         "SCE Release" means a new release of SCE for the purpose of introducing
         new features or functions to the SCE.

         "SCE Tokens" means licensing authority granted by Lucent to TCS in
         order to allow TCS employees to utilize the SCE for Application
         development.

         "SCE Update" means a change to an existing SCE Release to correct
         problems found by customers in the field.

         "SCN" means Lucent's Service Circuit Node in any of Lucent's then
         current configurations.

         "SCN Lab Time" means time allocated to TCS in an operational SCN lab
         configuration in support of TCS Application development and testing
         pursuant to this Agreement.

         "SCP" means Lucent's Service Control Point in any of Lucent's then
         current configurations.

         "SMS" means Lucent's Service Management System in any of Lucent's then
         current configurations.

         "Software" means the computer programs and Documentation excluding
         Source Code for which licenses are granted by Lucent under this
         Agreement.

         "Source Code" means any version of Software incorporating high-level or
         assembly language that generally is not directly executable by a
         processor.

                                        3
**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   4
         "Specifications" means Lucent's or its vendor's technical
         specifications, which are normally provided to Lucent's commercial
         customers.

         "Territory" means the United States and the District of Columbia.

         "Use" with respect to Software means loading the Software, or any
         portion thereof, into a processor for execution of the instructions and
         tables contained in such Software.

2.       SCOPE

Lucent and TCS wish to enter into an agreement for the development of
Applications. To aid in the development, Lucent has provided TCS the use of the
SCE, SCE Documentation, SCE Updates, SCE Releases and SCN Lab Time, and a
complete set of Documentation. TCS will utilize the Hardware, Software and
Documentation provided under this Agreement to design and develop two
Applications which shall be owned by Lucent.  In consideration for such
development, Lucent agrees to share equally the revenue from both Applications
with TCS.

Lucent and TCS shall mutually agree upon and identify the two Applications to
be developed pursuant to this Agreement. Lucent and TCS will specify the terms
and conditions associated with each Application agreed to in the appropriate
Application Development Plan, incorporated as addenda hereto. Such terms and
conditions include but are not limited to: (1) billing/collection; (2)
procedures for modifications to the Application Development Plan; (3)
Application delivery deadlines; (4) acceptance criteria; (5) lab time
requirements; (6) ongoing Application maintenance support; (7) joint
marketing/sales arrangements, and (8) revenue projections. Any further
Applications to be developed by TCS shall covered by a separate agreement
between the parties

3.       AGREEMENT

During the term of this Agreement, TCS and Lucent will have the respective
rights and obligations set out in this Agreement.

                                       4

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   5
4.       TERM

The term of this Agreement will commence, subject to execution by each party, on
the Effective Date and will end two years from the Effective date, unless
previously terminated in accordance with the provisions of this Agreement or
extended by mutual consent of the parties.

5.       TCS RESPONSIBILITIES

         A.       TCS shall design and develop two (2) Applications using the
                  SCE and SCN Lab Time for the A-I-Net SCN, as well as the
                  associated documentation for the Applications in accordance
                  with the following:

                  (i)      Pursuant to the Application Development Plans jointly
                           developed between TCS and Lucent, TCS personnel shall
                           develop the Applications on TCS' premises and will be
                           supported by reasonable assistance from Lucent in the
                           areas of Application requirements refinement and test
                           plan coverage.

                  (ii)     The completed Applications shall undergo acceptance
                           testing by: (1) TCS utilizing the SCN Lab Time; and
                           (2) By Lucent at Lucent's premises, according to the
                           Application Development Plan. Upon acceptance of the
                           first Application by Lucent, which acceptance shall
                           not unreasonably be withheld pursuant to satisfaction
                           of the Application acceptance criteria, TCS shall be
                           recognized by Lucent as an approved A-I-Net
                           Application Developer.  TCS shall not represent or
                           imply to  customers or others that Lucent is
                           certifying or in  any way warranting that the
                           Applications will operate properly.

                  (III)    TCS has the right to reject the first and second
                           Applications identified by Lucent based on TCS'
                           determination that said Application will not reach
                           mutually agreeable revenue thresholds within nine
                           (9) months of commencement of the Application
                           development or expand its overall knowledge of the
                           AIN Product Group; however, agreement on the
                           choice of Application shall not be unreasonably
                           withheld. Once TCS and Lucent have agreed upon an
                           Application and the associated Application
                           Development Plan,

                                        5

**** Confidential Materials Submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   6
                           changes to the development of that Application by TCS
                           shall not be permitted without written consent from
                           Lucent. Where Lucent desires to change an Application
                           pursuant to this agreement, such change shall require
                           mutual written consent and an Application Development
                           Plan must be constructed for the new Application.

                  (iv)     Lucent shall provide training for up to six (6) TCS
                           personnel either at Lucent Training centers or
                           suitcased at TCS sites whichever Lucent deems
                           economical. For classes conducted at Lucent's sites,
                           Lucent offers to provide the recommended training
                           courses and seat allocation listed below. Lucent
                           waives the course fees on the allocated seats as
                           indicated. TCS will be responsible for the: 1) Travel
                           and living expenses of the trainees, 2) Differential
                           costs associated with class suitcasing (e.g. travel
                           and living for instructor etc.), 3) any additional
                           courses/training required beyond the listed courses
                           and seat allocation. The courses are non transferable
                           and must be completed during the term of this
                           Agreement. The following table identifies the
                           A-I-Net(R) courses required:

<TABLE>
<CAPTION>
                           COURSE ID            COURSE NAME                      SEATS
                           ---------            -----------                      -----
<S>                                        <C>                                   <C>
                           ES0713          SCN/SCP/SCE INTRODUCTION               6
                           ES0714          SCN NODE OPERATION MAINTENANCE         6
                           ES0718          SCN/SCP ENGINEERING                    6
                           ES0723          SCP - OPERATIONS AND MAINTENANCE       2
                           ES0731          SCE PROGRAMMING                        6
</TABLE>

                  (v)      TCS shall dedicate at all times the equivalent of at
                           least two (2) full time developers working on the
                           applications.

                  (vi)     TCS shall deliver Source Code and related
                           documentation for two Applications to Lucent.

         B.       TCS shall complete design and development activities related
                  to the first Application within twelve (12) calendar months
                  from the mutually agreed upon Development Start Date. Any
                  changes to this delivery schedule shall be delineated in the
                  Application Development Plan. If TCS fails to develop the
                  first Application within twelve (12) months from the
                  Development Start Date Lucent

                                       6

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   7
                  may terminate this Agreement and TCS shall immediately return
                  the Software, Hardware not purchased but provided by Lucent,
                  and Documentation provided under this Agreement. TCS shall
                  forfeit all unused training offered and future revenues from
                  such first Application. Subject to termination of the
                  Agreement, Lucent and TCS may negotiate the delivery of any
                  work in progress on the first Application to Lucent at a
                  negotiated price.

         C.       If TCS has not completed development of the second Application
                  within twenty-four (24) months from the Effective Date, of
                  this Agreement Lucent may terminate this Agreement in which
                  case TCS shall immediately return the Software, Hardware not
                  purchased but provided by Lucent, and Documentation to Lucent
                  and forfeit all unused training offered and future revenues
                  from such second Application. Subject to termination of the
                  Agreement, Lucent and TCS may negotiate the delivery of any
                  work in progress on the second Application at a negotiated
                  price.

         D.       The terms and conditions by which Application software and
                  documentation versions and updates would be provided to Lucent
                  or a mutual customer shall be delineated in the Application
                  Development Plan.

         E.       Non-performance criteria, if any, placed upon TCS and Lucent
                  shall be specified as part of the Application Development
                  Plan. Incentives and penalties, if any, placed upon TCS and
                  Lucent associated with Application delivery and sales shall
                  also be specified as part of the Application Development Plan.

         F.       TCS will be responsible for warranty and ongoing maintenance
                  support on the Applications developed pursuant to this
                  Agreement with terms and conditions reflected in the
                  appropriate Application Development Plan. In any case that
                  this may not apply, the terms and conditions shall be agreed
                  upon and specified in the Application Development Plan.

                                        7

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   8
6.       LUCENT RESPONSIBILITIES

         A.       Pursuant to the terms of this Agreement, Lucent shall provide
                  one (1) copy of the SCE to include the required number of SCE
                  Tokens as specified in the Application Development Plan, a
                  Compile Server and related SCE Documentation; (2) SCN Lab Time
                  which shall be identified in each Application Development
                  Plan; (3) all SCE Updates and new SCE Releases with
                  appropriate Documentation during the term of this Agreement,
                  and (4) Other Documentation relevant to the AIN Products
                  Group, including updates and releases. Lucent shall also
                  provide engineering and installation services for the SCE as
                  requested by TCS upon terms and conditions to be agreed upon
                  by the parties at the time of such request.

         B.       For each Application provided by this Agreement, Lucent will
                  support TCS's Application development efforts by providing a
                  "hotline" consultative service from its customer support
                  organizations in accordance with Lucent's then current
                  offerings at no cost to TCS. The duration of the free
                  consultative services will be mutually agreed upon based on
                  the complexity of the Application and will be specified in the
                  Application Development Plan. For Consultation hours in excess
                  of the specified duration, TCS will be charged at a mutually
                  agreed upon rate. The consultancy service will answer
                  questions concerning the SCN Platform, Service Creation
                  Environment, language support for SLL, SPA architecture,
                  design guidelines and SPA debugging support. In addition to
                  the consultancy services, Lucent will provide TCS with
                  technical reviewers on requirements definition and test plan
                  coverage.

         C.       Lucent shall upon its acceptance of the first Application, in
                  good faith, promote TCS as an approved A-T-Net Applications
                  developer, the extent of such promotion to be determined at
                  Lucent's sole discretion.

         D.       Lucent shall deliver the SCE to TCS and provide telephone
                  assistance during installation as needed.

         E.       Lucent shall bill, collect and distribute the Revenues from
                  the first and second Applications developed pursuant to this
                  Agreement in accordance with a mutually agreed upon
                  billing/collection and Revenue distribution plan between TCS
                  and Lucent. Such billing/ collection and Revenue terms and
                  conditions for each Application will be established for each
                  Application in the appropriate Application Development Plan.

                                        8

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   9

         F.       Lucent Revenue distributions to TCS shall be executed no later
                  than thirty (30) days after Lucent invoices the customer.

         G.       Lucent shall provide TCS with SCN Lab Time during the
                  development phase of the Application as specified in the
                  Application Development Plan. Lucent agrees to waive the fees
                  associated with the development and testing of each
                  Application pursuant to this agreement. The Lab Time will be
                  allocated to TCS according to the prevailing allocation
                  practices. After the acceptance of the Application by Lucent,
                  SCN Lab Time used by TCS for the support and maintenance of
                  the Application will be charged to TCS at a mutually agreed
                  upon rate.

7.       USE OF TRADEMARKS

         A.       TCS and Lucent shall cooperate with each other in preparing
                  materials to promote the Applications developed hereunder,
                  including, but not limited to, brochures, slides, and other
                  presentation materials.

         B.       Neither party will, without the other's express written
                  permission, use in marketing, advertising, publicity, or
                  otherwise any trade name, trademark, trade device, service
                  mark, symbol, code, or specification or any abbreviation,
                  contraction, or simulation thereof ("Mark") of the other
                  party. Nor shall a party claim any ownership therein. The
                  parties shall not remove, deface, alter or otherwise obscure
                  any Mark of the other party or their Affiliated companies
                  which is on Products sold and/or licensed under this
                  Agreement; nor shall the parties place any Mark of any other
                  company on any such Products. Any such usage shall inure to
                  the benefit of the Mark owner.

         C.       Notwithstanding Subsection B immediately above, both parties
                  may use the name of the other party

                                        9

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   10
                  in its promotional materials to make factually correct
                  statements for the purpose of informing the purchasing public
                  that TCS Applications developed pursuant to this agreement are
                  compatible with Products. TCS understands that it may not use
                  the Mark "Lucent" to identify its Applications or to suggest
                  that the source of such Applications is Lucent. In order to
                  ensure that either party's promotional materials use the name
                  of the other party in a factually correct way and in keeping
                  with each party's reputation, both parties agree to submit all
                  such materials to each other for approval prior to use and
                  both parties further agree not to use the Mark of the other
                  party on any materials for which it does not have written
                  approval from the other party. If either party, in its sole
                  discretion, believes that the other is misusing its Mark, that
                  party reserves the right to withdraw all permission to use its
                  Mark upon written notice to the other party.

         D.       In consideration of the mutual benefits anticipated from a
                  successful relationship, each party shall bear its own
                  respective costs and expenses incurred in marketing the
                  Applications, any future Applications and related services
                  except as otherwise agreed in this Agreement.

B.       SOFTWARE WARRANTY

         A.       Lucent warrants to TCS only, that Software provided by Lucent
                  will substantially conform to Lucent specifications referenced
                  in the order and Lucent further warrants that it has the right
                  to grant the licenses to Use Software it grants under this
                  Agreement.

         B.       Lucent makes no warranty with respect to defective conditions
                  or nonconformities resulting from the following: TCS
                  modifications, misuse, neglect, or accident; events outside
                  Lucent's control; use, or maintenance in a manner not in
                  accordance with Lucent's specifications, operating
                  instructions, or license-to-use; or failure of TCS to apply
                  previously applicable Lucent modifications and corrections. In
                  addition, Lucent makes no warranty with respect to defects
                  related to TCS' data base errors. Moreover, no warranty is
                  made that Software will run error free or without
                  interruption.

                                       10

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   11
         C.       THE FOREGOING SOFTWARE WARRANTIES ARE EXCLUSIVE AND ARE IN
                  LIEU OF ALL OTHER EXPRESS AND IMPLIED WARRANTIES, INCLUDING
                  BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND FITNESS
                  FOR A PARTICULAR PURPOSE. TCS' SOLE AND EXCLUSIVE REMEDY SHALL
                  BE LUCENT'S OBLIGATION TO CORRECT OR REPLACE DEFECTIVE
                  SOFTWARE.

9.       TITLE/RISK OF LOSS

Title to Software and Hardware shall not pass to TCS, but shall remain with
Lucent or its vendors, as the case may be. Risk of loss to the Software and
Hardware shall pass upon delivery.

10.      OWNERSHIP OF FURTHER APPLICATIONS

It is the intent of the parties that further Applications developed beyond the
first two Applications under this Agreement shall be the property of the
developer (TCS or Lucent, as the case may be) unless mutually agreed otherwise
in writing. Notwithstanding any other provision in this Agreement, TCS and
Lucent retain all in and to any and all software, software development tools,
know how, methodologies, processes, technologies or algorithms used in providing
services under this Agreement or under any other agreement which are based upon
trade secrets or proprietary information of TCS or Lucent, respectively, or
otherwise owned or licensed by TCS or Lucent.

11.      PATENTS, TRADEMARKS, AND COPYRIGHTS

In the event of any claim, action, proceeding or suit by a third party against
TCS alleging an infringement of any United States patent, United States
copyright, or United States trademark, or a violation in the United States of
any trade secret or proprietary rights by reason of the use, in accordance with
Lucent's specifications, of any Software furnished by Lucent to TCS under this
Agreement, Lucent, at its expense, will defend TCS, subject to the conditions
and exceptions stated below. Lucent will reimburse TCS for any cost, expense or
attorney's fee, incurred at Lucent's written request or authorization, and will
indemnify TCS against any liability assessed against TCS by final judgment on
account of such infringement or violation arising out of such use.

                                       11

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   12
If TCS' use shall be enjoined or in Lucent's opinion is likely to be enjoined,
Lucent will, at its expense and at its option, either (1) replace the enjoined
Software furnished pursuant to this Agreement with a suitable substitute free of
any infringement, (2) modify it so that it will be free of the infringement, or
(3) procure for TCS a license or other right to use it. If none of the foregoing
options is practical, Lucent will remove the enjoined Software and this
Agreement will terminate.

No undertaking of Lucent under this clause shall extend to any such alleged
infringement or violation to the extent that it: (1) arises from adherence to
design modifications, specifications, drawings, or written instructions which
Lucent is directed by TCS to follow, but only if such alleged infringement or
violation does not reside in corresponding commercial Software of Lucent's
design or selection; or (2) arises from adherence to instructions to apply TCS'
trademark, trade name, or other company identification; or (3) resided in a
Software which is not of Lucent's origin and which is furnished by TCS to Lucent
for use under this Agreement; or (4) relates to uses of Software provided by
Lucent in combinations with other Software, furnished either by Lucent or
others, which combination was not installed, recommended or otherwise approved
by Lucent. In the foregoing cases numbered (1) through (4), TCS will defend and
save Lucent harmless, subject to the same terms and conditions and exceptions
stated above with respect to the Lucent's rights and obligations under this
clause.

The liability of Lucent and TCS with respect to any and all claims, actions,
proceedings, by third parties alleging infringement of patents, trademarks, or
copyrights or violation of trade secrets or proprietary rights because of, or in
connection with, any items furnished pursuant to this Agreement shall be limited
to the specific undertakings contained in this clause.

12.      SOFTWARE LICENSE

Lucent grants to TCS personal, nontransferable and nonexclusive license to use
in the Territory, Software and related Documentation (hereinafter referred to as
"Licensed Materials", with either the original Hardware or any comparable
replacement, if the original Hardware becomes inoperative, until the original
Hardware is restored to operational status.

No source code versions of Software are included in "Licensed Materials".

                                       12

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   13
The License grants TCS no right to and TCS will not sublicense such Licensed
Materials nor shall TCS modify, decompile, or disassemble Software furnished as
object code to generate corresponding Source Code.

All Licensed Materials (whether or not part of firmware) furnished by Lucent and
all copies thereof made by TCS, including translations, compilations, and
partial copies, are the property of Lucent.

Except for any part of such Licensed Materials which is or becomes generally
known to the public through acts not attributable to TCS, TCS shall hold
Licensed Materials in confidence and shall not, without Lucent's prior written
consent, disclose, provide or otherwise make available, in whole or in part, any
Licensed Materials to anyone, except to its employees having a need-to-know. TCS
shall not copy Software embodied in firmware. TCS shall not make any copies of
Licensed Materials except in conformance with this Agreement and TCS may make
one (1) copy for archival purposes. TCS shall reproduce and include any
copyright and proprietary notice of Lucent on all such necessary copies of the
Licensed Materials. TCS shall also mark all media containing such copies with a
warning that the Licensed Materials are subject to restrictions contained in an
agreement between TCS and Lucent and that such Licensed Materials are the
property of Lucent.

TCS shall maintain records of the number and location of all copies of the
Licensed Materials.

TCS shall take appropriate action by instruction, agreement or otherwise, with
the persons permitted access to the Licensed Materials so as to enable TCS to
satisfy its obligations under this Agreement.

When the Licensed Materials are no longer needed by TCS or if TCS's license is
canceled or terminated, TCS shall return all copies of such Licensed Materials
to Lucent or follow written disposition instructions provided by Lucent.

Prior to shipment, Lucent may at any time modify the specifications relating to
its Licensed Materials. Lucent may substitute modified Licensed Materials,
provided the modifications, under normal and proper use, do not adversely affect
the use, function, or performance of the Licensed Materials, and Lucent shall
advise TCS in writing thirty (30) days prior to implementation of such changes.

                                       13

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   14
Lucent shall furnish to TCS, at no additional charge, one set of Documentation
that is customarily provided to customers. Lucent shall also furnish to TCS, at
no additional charge, a hardcopy of the Lucent SCE Documentation. If
documentation from Lucent's vendors is available at a separate charge, such
documentation will be provided to TCS at cost. The first copy of such
documentation shall be provided prior to or included with provision of Software
by Lucent to TCS. Additional copies of such documentation will be provided at
cost, upon request from TCS. Documentation is for TCS internal use only and
should not be sold or transferred without Lucent's written consent.

Additional copies of the Documentation are available at Lucent's then current
cost.

If TCS fails to comply with any of the material provisions of this License and
such failure continues beyond ten (10) days after receipt of written notice
thereof by TCS, Lucent, upon written notice to TCS, may cancel any affected
license for Licensed Materials.

Unless otherwise agreed, TCS is not granted any right to modify Software
furnished by Lucent under this Agreement.

13.      REMEDIES AND LIMITATION OF LIABILITY

         A.       THE EXCLUSIVE REMEDIES AND THE ENTIRE LIABILITY OF THE PARTIES
                  FOR ANY CLAIM, LOSS, DAMAGE, OR EXPENSE OF EITHER PARTY OR ANY
                  OTHER ENTITY ARISING OUT OF THIS AGREEMENT, OR THE USE OR
                  PERFORMANCE OF ANY SOFTWARE, APPLICATIONS OR SERVICES, WHETHER
                  IN AN ACTION FOR OR ARISING OUT OF BREACH OF CONTRACT, TORT,
                  INCLUDING NEGLIGENCE, INDEMNITY, OR STRICT LIABILITY SHALL BE
                  AS FOLLOWS:

                  (1)      FOR INFRINGEMENT--THE REMEDY SET FORTH IN THE
                           "PATENTS, TRADEMARKS, AND COPYRIGHTS" CLAUSE;

                  (2)      FOR THE PERFORMANCE OR NON-PERFORMANCE OF HARDWARE,
                           SOFTWARE, APPLICATIONS AND SERVICES OR CLAIMS THAT
                           THEY DO NOT CONFORM TO A WARRANTY--THE REMEDY SET
                           FORTH IN THE APPLICABLE "WARRANTY" CLAUSE;

                  (3)      FOR EVERYTHING OTHER THAN AS SET FORTH ABOVE--THE
                           AMOUNT OF THE DIRECT DAMAGES NOT TO

                                       14

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   15
                           EXCEED $100,000 INCLUDING AWARDED COUNSEL FEES AND
                           COSTS.

                  B.       NOTWITHSTANDING ANY OTHER PROVISION OF THIS
                           AGREEMENT, NEITHER PARTY AND ITS AFFILIATES AND THEIR
                           EMPLOYEES AND AGENTS SHALL BE LIABLE FOR ANY
                           INCIDENTAL, INDIRECT, OR CONSEQUENTIAL DAMAGE OR LOST
                           PROFITS, REVENUES OR SAVINGS ARISING OUT OF THIS
                           AGREEMENT, OR THE USE OR PERFORMANCE OF ANY SOFTWARE,
                           APPLICATIONS OR SERVICES, WHETHER IN AN ACTION FOR OR
                           ARISING OUT OF BREACH OF CONTRACT, TORT, INCLUDING
                           NEGLIGENCE INDEMNITY, OR STRICT LIABILITY. THIS
                           CLAUSE SHALL SURVIVE FAILURE OF AN EXCLUSIVE OR
                           LIMITED REMEDY.

                  C.       EACH PARTY SHALL GIVE THE OTHER PROMPT NOTICE OF ANY
                           CLAIM. ANY ACTION OR PROCEEDING MUST BE BROUGHT
                           WITHIN TWENTY-FOUR (24) MONTHS AFTER THE CAUSE OF
                           ACTION ACCRUES.

14.      CONFIDENTIALITY

Each party agrees that during the term of this Agreement and for a period of
seven (7) years thereafter, each party shall prevent the disclosure and to
protect the confidentiality of both (i) written information received from the
other party which is marked or identified as confidential, and (ii) oral or
visual information identified as confidential at the time of disclosure which is
summarized in writing and provided to the other party in such written form
promptly after such oral or visual disclosure ("Confidential Information"). The
foregoing shall not prevent either party from disclosing Confidential
Information which belongs to such party or is (i) already known by the recipient
party without an obligation of confidentiality other than under this Agreement,
(ii) publicly known or becomes publicly known through no unauthorized act of the
recipient party, (iii) rightfully received from a third party, (iv)
independently developed by the recipient party without use of the other party's
Confidential Information, (v) disclosed without similar restrictions to a third
party by the party owning Confidential Information, (vi) approved by the other
party for disclosure, or (vii) required to be disclosed pursuant to a
requirement of a governmental agency or law so long as the disclosing party
provides the other party with notice of such requirement prior to any such
disclosure. Each party represents that it has the right to disclose information
that it has made and will make available to the other hereunder.

                                       15

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   16

15.      USE OF INFORMATION

All information which bears a legend or notice restricting its use, copying or
dissemination, shall remain the property of the furnishing party. The furnishing
party grants to the receiving party a right to use such information only as
follows. Such information (1) shall not be reproduced or copied, in whole or
part, except for use as authorized in this Agreement; and (2) shall, together
with any full or partial copies thereof, be returned or destroyed when no longer
needed. Moreover, when Lucent is the receiving party, Lucent shall use such
information only for the purpose of performing under this Agreement, and when
TCS is the receiving party, shall use such information only (1) to order, (2) to
evaluate Lucent's Products or (3) TCS may use such information to develop
Applications created using the SCE.

16.      EXPORT CONTROL

The parties acknowledge that any products, software, and technical information
(including, but not limited to services and training) provided under this
Agreement are subject to U.S. export laws and regulations and any use or
transfer of such products, software, and technical information must be
authorized under those regulations. Each party agrees that it will not use,
distribute, transfer, or transmit the products, software, or technical
information (even if incorporated into other products) in violation of U.S.
export laws and regulations. Each party assures the other party it will not
directly or indirectly "export" or "reexport" software or "technical data"
disclosed to it by the other party or the direct product of such software or
"technical data" to: (1) Albania, Armenia, Azerbaijan, Belarus, Bulgaria,
Cambodia, Cuba, Estonia, Georgia, Haiti, Iran, Iraq, Kazakhstan, Kyrgystan,
Laos, Latvia, Libya, Lithuania, Mongolia, North Korea, People's Republic of
China, Romania, Russia, Syria, Tajikistan, Turkmenistan, Ukraine, Uzbekistan,
Vietnam, Yugoslavia, or (2) any citizen or resident of any of the aforementioned
countries, in violation of U.S. export laws and regulations.

17.      TERMINATION

Except as otherwise provided herein, either party may terminate this Agreement
if the other commits any material breach of its obligations hereunder and fails
within thirty

                                       16

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   17
(30) days after receipt of written notice to cure such breach.

18.      MEDIA RELEASES

All media releases, public announcements, and public disclosures by Lucent or
TCS or their respective employees or agents relating to this Agreement or its
subject matter, including without limitation promotional or marketing material
(but not including any announcement intended solely for internal distribution at
Lucent or TCS, as the case may be, or any disclosure required by legal,
accounting, or regulatory requirements beyond the reasonable control of Lucent
or TCS, as the case may be) shall be coordinated with and approved by Lucent and
TCS prior to the release thereof.

19.      GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws,
other than choice of law rules, of the State of New York.

20.      FORCE MAJEURE

Each party shall be excused from performance hereunder to the extent that it is
prevented from performing pursuant hereto, in whole or in part, as a result of
delays caused by the other or an act of God, war, civil disturbance, court
order, labor dispute, or other cause beyond its reasonable control. Such
nonperformance shall not be a default hereunder or ground for termination hereof
unless such force majeure condition exists for ninety (90) days. At such time
the party to which the force majeure condition does not apply may, at its sole
discretion, terminate this Agreement in whole or in part.

21.      EMPLOYEES

Unless otherwise agreed to in writing, the parties hereto agree that during the
term of this Agreement and for a period of one (1) year after the expiration or
termination of this Agreement, neither party shall knowingly employ nor
specifically solicit for employment any person or persons employed by the other,
working under the Agreement of any contract and/or subcontract that may be
awarded as a result of this Agreement. Any employment resulting from responses
to job placement solicitations in widely distributed publications or other
widely distributed communication medium shall not be prohibited.

                                       17

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   18
22.      NO THIRD PARTY BENEFICIARY

Nothing in this Agreement may be relied upon or shall benefit any party other
than the parties hereto.

23.      RELATIONSHIP OF PARTIES

Each of the parties will act as, and will be, independent in all aspects of
their performance of this Agreement. Neither party will act or have authority to
act as agent for the other party for any purpose whatsoever. Nothing will
constitute either party as agent for the other or grant either party the
authority to make representations or agreements on behalf of the other, and both
parties covenant not to make any representations or to take any actions
inconsistent with the foregoing. Nothing in this Agreement will be deemed to
constitute or create a joint venture, partnership, pooling arrangement,
contractor arrangement or other formal business entity or fiduciary relationship
between TCS and Lucent, and nothing in this Agreement shall be construed as
providing for the sharing of profits or losses arising out of the efforts of
either of Lucent or TCS under this Agreement. The parties understand and agree
that each of them individually may engage in, and may perform services for third
parties.

24.      APPROVALS AND SIMILAR ACTIONS

Where agreement, approval, acceptance, consent or similar action by either party
hereto is required by any provision of this Agreement, such action shall not be
unreasonably delayed or withheld.

25.      DISPUTES RESOLUTION

If a dispute arises out of or relates to this Agreement or its breach and the
dispute cannot be settled through negotiation, the parties agree to submit the
dispute to a sole mediator selected by the parties or, at any time at the option
of a party, to mediation by the American Arbitration Association ("AAA"). If
not thus resolved, it shall be referred to a sole arbitrator selected by the
parties within thirty (30) days of the mediation or, in the absence of such
selection, to AAA arbitration which shall be governed by the United States
Arbitration Act. The award shall be made within six (6) months of selection of
the arbitrator and may be entered in any court having jurisdiction. The
mediation and arbitration shall be held in New York City. The arbitrator shall
determine issues of arbitrability but may not limit expand or otherwise modify
the terms of the

                                       18

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   19
Agreement nor have authority to award punitive or other damages in excess of
compensatory damages and each party irrevocably waives any claim thereto. Each
party shall bear its own expenses but those related to the compensation of the
mediator and arbitrator shall be borne equally. The parties, their
representatives, other participants and the mediator and arbitrator shall hold
the existence, content and result of mediation and arbitration in confidence.

26.      NOTICES

Wherever under this Agreement one party is required or permitted to give written
notice to the other, such notice shall be deemed given the third day after its
mailing by one party, postage prepaid to the other party addressed as follows:

 In the case of TCS:
          President
          TeleCommunication Systems, Inc.
          275 West Street, Suite 400
          Annapolis, MD 21401
          Attention: Maurice Tose

with a copy to:

         Senior Vice President and
         General Counsel
         TeleCommunication Systems, Inc.
         275 West Street, Suite 400
         Annapolis, MD 21401
         Attention: Byron Marchant

In case of Lucent:

         Lucent Technologies Inc.
         2000 N. Naperville Road.
         Naperville, IL 60566-7033
         Attention: Edwin Crabill
         Strategic Planning Manager

with a copy to:

         Lucent Technologies Inc.
         2000 N. Naperville Road
         Naperville, IL 60566-7033
         Attention: Dave Barclay
         Core Offer Manager

                                       19

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   20
Any writing which may be mailed pursuant to the foregoing may also be delivered
by hand or transmitted by telegraph, telex, or telecopier and shall be effective
when received by the addressee. Either party may from time to time specify as
its address for purposes of this Agreement any other address upon giving ten
days written notice thereof to the other party.

27.      SEVERABILITY

If any term or provision (other than a term or provision relating to any payment
obligation) of this Agreement thereof to any person or circumstances shall to
any extent, be held invalid or unenforceable, the remainder of this Agreement or
the application of such term or provision to persons or circumstances other than
those as to which it is invalid or unenforceable shall not be affected thereby,
and each term and provision of this Agreement shall be valid and enforceable to
the extent permitted by law.

28.      WAIVER

No delay or omission by either party hereto to exercise any right or power
hereunder shall impair such right or power or be construed to be a waiver
thereof. A waiver by either of the parties hereto of any of the covenants to be
performed by the other or any breach thereof shall not be construed to be a
waiver of any succeeding breach thereof or of any other covenant herein
contained. All remedies provided for in this Agreement shall be cumulative and
in addition to and not in lieu of any other remedies available to either party
at law, in equity or otherwise.

29.      ASSIGNMENT

This Agreement shall not be assignable and delegable by either party without the
other party's written consent; provided, however, that Lucent may assign this
Agreement without TCS'S consent to any Affiliate.

30.      SURVIVAL

The obligations of the parties under this Agreement which by their nature would
continue beyond the expiration, termination or cancellation of this Agreement,
including without limitation, the obligations in the Articles entitled
TRADEMARKS, CONFIDENTIALITY, USE OF INFORMATION, SOFTWARE LICENSE, REMEDIES AND
LIMITATION OF LIABILITY, and EXPORT CONTROL, shall survive any expiration,
assignment, termination or cancellation of this Agreement.

                                       20

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   21
31.      ENTIRE AGREEMENT

This Agreement, including any attachments referred to herein and attached
hereto, each of which is incorporated in this Agreement for all purposes,
constitutes the entire agreement between the parties with respect to the subject
matter of this Agreement and there are no representations, understanding or
agreements relating to this Agreement which are not fully expressed herein. No
change, waiver, or discharge hereof shall be valid unless in writing and signed
by an authorized representative of the party against which such change, waiver,
or discharge is sought to be enforced.

IN WITNESS WHEREOF, TCS and Lucent have caused this Agreement to be signed and
delivered by its duly authorized officer, all as of the date first set forth
above.

Telecommunication Systems, Inc.           Lucent Technologies Inc.

By: Byron F. Marchant                     By: J.J. Ospital
    -----------------------------             --------------------------------
Title: Sr. V.P. & General Counsel         Title: Director, Business Management
       --------------------------                -----------------------------
Date: 4/5/96                              Date: 4/4/96
      ---------------------------               -------------------------------

                                       21

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   22
  Confidential materials submitted and filed separately with the Securities and
  Exchange Commission. Four asterisks are used to denote omissions.

                  A-1-NET(R) SCN APPLICATION DEVELOPMENT AGREEMENT

                                MODIFICATION 01

         THIS MODIFICATION 01 ("MODIFICATION"), dated as of September 11, 1997.
("EFFECTIVE DATE") is between Lucent Technologies, Inc. ("LUCENT") with offices
at 2000 N. Naperville Road, Naperville, Illinois 60566-7033 and
TeleCommunication Systems, Inc. ("TCS") a Maryland corporation, with offices at
275 West Street, Suite 400, Annapolis, MD 21401.

         WHEREAS, Lucent and TCS entered into an "A-1-Net(R) SCN Application
Development Agreement" (the "AGREEMENT") effective April 4, 1996 to provide for
the development of two software Applications for advanced telecommunication
services, generally known as Advanced Intelligent Network Services ("AIN"); and

         WHEREAS, the Agreement is hereby incorporated by reference herein; and

         WHEREAS, both Lucent and TCS wish to provide for the survival of the
Agreement and thereby to avoid the untimely expiration of the Agreement; and

         WHEREAS, both Lucent and TCS wish to modify certain provisions of the
Agreement to address the interests of the parties in the Applications and to
provide a clearer understanding of the continuing obligations of the parties
under the Agreement.

         NOW, THEREFORE, Lucent and TCS hereby agree to modify the Agreement as
follows:

1. DEFINITIONS

Any capitalized terms used in this Modification shall have the meaning ascribed
to them in the Agreement.

                                       1

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   23
2. MODIFICATIONS

A.       Article 1. DEFINITIONS: Change the definition of "Revenues" to read:

         "Revenues" are the proceeds from the sale of the software only
         component of Applications 1 and 2 developed under this Agreement either
         by Lucent, TCS or jointly. It does not include the proceeds from the
         sale of maintenance agreements on the Applications or any hardware and
         other software that may be associated with the total sale. Revenues
         also does not include proceeds from any future enhancements to the
         Applications developed by TCS for a third party if Lucent is not
         directly or indirectly involved in the transaction; this applies even
         if Lucent was responsible for the sale of the Application or the Lucent
         Platform to the third party.

         Change the definition of SCN to read:

         "SCN" means Lucent's Service Circuit Node in any of Lucent's then
         current configurations. In this Agreement, SCN shall also include
         Lucent's Service Control Point ("SCP") in any of Lucent's then current
         configurations.

         Change the definition of SCN Lab Time to read:

         "SCN Lab Time" means time allocated to TCS in an operational SCN or SCP
         lab configuration in support of TCS Application development and testing
         pursuant to this Agreement.

         Change the definition of "Affiliate" to read:

         "Affiliate" of a corporation means its subsidiaries, any company of
         which it is a subsidiary, and other subsidiaries of such company
         controlled by such party. For the purposes of this Agreement
         "controlled" means having directly or indirectly greater voting rights
         over such entity than any other person or entity, or control of
         sufficient voting rights of such entity as to be able to exercise
         control over policy and management decisions of such entity.

         Add the definition of Platforms:

         "Platforms" means the Lucent developed and manufactured hardware and
         software systems that comprise the AIN architecture upon which the TCS
         Applications will operate.

                                       2

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   24
         Add the definition of Lucent:

         "Lucent" means Lucent Technologies Inc. and any Affiliates of Lucent
         Technologies Inc.

         Add the definition of TCS:

         "TCS" means Telecommunication Systems, Inc. and any Affiliates of
         TeleCommunication Systems, Inc.

B.       Article 2. SCOPE, Paragraph 1: Change to read:

         Lucent and TCS wish to enter into an agreement for the development of
         Applications. To aid in the development, Lucent has provided TCS the
         use of the SCE, SCE Documentation, SCE Updates, SCE Releases and SCN
         Lab Time, and a complete set of Documentation. TCS will utilize the
         Hardware, software and Documentation provided under this Agreement to
         design and develop Applications. The first two Applications developed
         under this Agreement shall be owned jointly by Lucent and TCS. In
         consideration for such development, Lucent agrees to share equally the
         revenue from both Applications with TCS. Lucent and TCS further agree
         to charge a mutually agreeable price for the Applications developed
         under this Agreement.

C.       Article 4: Change to read:

         The term of this Agreement will commence, subject to execution by each
         party, on the Effective Date. This Agreement will remain in force until
         terminated by mutual written agreement of the parties unless
         previously terminated in accordance with the provisions of this
         Agreement. Notwithstanding any other provision in this or subsequent
         modifications or riders to this Agreement, terminating events or
         occurrences will be construed to terminate this Agreement only as to
         the Application or product that is the object of the terminating
         event and this Agreement will remain in force as to any other
         existing or contemplated Application or product.

                                       3

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   25

D.       Article 10, OWNERSHIP OF FURTHER APPLICATIONS: Delete this clause in
         its entirety, and replace with the following:

         10.      OWNERSHIP OF APPLICATIONS

                  A.       First Two Applications

                           (1)      The copyright interests in the first two
                                    (2) Applications produced by TCS under
                                    this Agreement shall be owned jointly by
                                    TCS and Lucent. Subject to any limitations
                                    associated with other Intellectual Property
                                    Rights of either party or third parties,
                                    each party shall have the right to exploit
                                    any relevant copyright interest and grant
                                    licenses thereto, subject to the Revenue
                                    sharing provisions of Article 2, paragraph
                                    1 requiring that the Revenue from both
                                    Applications be shared equally between TCS
                                    and Lucent.

                           (2)      Any inventions or discoveries created or
                                    provided by Lucent for the first two
                                    Applications shall be owned by Lucent.

                           (3)      Any inventions or discoveries created or
                                    provided by TCS for the first two
                                    Applications shall be owned by TCS.

                           (4)      Each party agrees to take such further
                                    action and execute, or cause its employees,
                                    agents, and contractors to execute, such
                                    other instruments as may be necessary to
                                    give effect to the ownership provisions of
                                    this Agreement.

                  B.       Further Applications

                           It is the intent of the parties that further
                           Applications developed beyond the first two
                           Applications under this Agreement shall be the
                           property of the developer (TCS or Lucent, as the
                           case may be) unless mutually agreed otherwise in
                           writing.

                  C.       All Applications Under this Agreement

                           Notwithstanding any other provision in this
                           Agreement, unless specifically agreed otherwise, TCS
                           and Lucent retain all right, title, and interest in
                           and to any and all software, software development
                           tools, know how, methodologies, processes,
                           technologies or alogrithms used in providing
                           services under this Agreement which are based
                           upon trade secrets or proprietary information of
                           TCS or Lucent respectively, or otherwise owned or
                           licensed by TCS or Lucent.

                                       4

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   26

                  E.       Article 12. SOFTWARE LICENSE: delete paragraph 8 and
                           replace with the following:

                                    TCS retains a perpetual right to use, but
                           not sell or license, all copies of the Licensed
                           Materials and upgrades, modifications, or revisions
                           thereto received by TCS from Lucent. When no
                           further development work or modifications are
                           contemplated as to any Applications developed by TCS
                           under this Agreement or if TCS's license to use the
                           Licensed Materials is canceled or terminated, TCS
                           shall no longer be entitled to receive without
                           charge upgrades, modifications, or revisions to the
                           Licensed Materials. TCS may, however, purchase such
                           updates, revisions, or modifications at a mutually
                           agreeable price.

                  F.       Article 17. TERMINATION: Add:

                                    By mutual written agreement, the parties may
                           terminate the Revenue sharing obligations imposed by
                           Article 2 of the Agreement upon the rendering of a
                           negotiated lump-sum payment from Lucent to TCS in
                           consideration thereof.

                  G.       Article 30. SURVIVAL: Change to read:

                           (1) The obligations of the parties under this
                           Agreement which by their nature would continue beyond
                           the expiration, termination or cancellation of this
                           Agreement, including without limitation, the
                           obligations in Articles entitled TRADEMARKS,
                           CONFIDENTIALITY, USE OF INFORMATION, SOFTWARE
                           LICENSE, REMEDIES AND LIMITATION OF LIABILITY,
                           OWNERSHIP OF APPLICATIONS, and EXPORT CONTROL, and
                           the Article 2 Revenue-sharing obligations from the
                           Applications, shall survive any expiration,
                           assignment, termination or cancellation of this
                           Agreement.

                           (2) TCS's right to use the software development tools
                           or any other Licensed Materials provided to TCS by
                           Lucent under this Agreement

                                       5

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   27
         shall survive any expiration, assignment, termination, or cancellation
         of this Agreement.

         IN WITNESS WHEREOF, TCS and Lucent have caused this Modification to be
signed and delivered by its duly authorized officer, as of the date first set
forth above.

TELECOMMUNICATIONS SYSTEMS, INC.             LUCENT TECHNOLOGIES INC.

By: /s/ Maurice B. Tose                      By: Jennifer Smith Byrns
    ----------------------------                 -------------------------------
    Maurice B. Tose                          Title: Advanced Network Services &
Title: President                                    Operations Product
                                                    Management Director
      --------------------------                   -----------------------------
Date: 28 Aug 97                              Date: 9/11/97
      --------------------------                   -----------------------------

                                       6

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   28
Confidential materials submitted and filed separately with the Securities and
Exchange Commission. Four asterisks are used to denote omissions.

                     AMENDMENT #02 TO TCS/LUCENT AGREEMENT

This Amendment #02 dated 6/28/99 is to the A-1-Net SCN Application Development
Agreement dated April 4, 1996 between Lucent Technologies Inc. ("Lucent"), and
TeleCommunication Systems, Inc. ("TCS").

The Parties identified above hereby agree to the above change:

Article 6F is changed to read as follows:

"Lucent revenue distributions to TCS shall be executed within thirty (30) days
of either TCS Application installation acceptance as confirmed by
Lucent/customer signoff or Lucent invoice to the customer, whichever occurs
sooner".

All other terms and conditions remain unchanged.

APPROVED AND AGREED TO:

TELECOMMUNICATION SYSTEMS INC.                LUCENT TECHNOLOGIES INC.

By: /s/ Thomas M. Brandt, Jr.                 By: /s/ Doreen H. Anding
    ------------------------------                ------------------------------

Name: Thomas M. Brandt, Jr.                   Name: Doreen H. Anding
      ----------------------------                  ----------------------------
 (Name and title printed or typed)            (Name and title printed or typed)

Title: Sr. Vice President & CFO               Title: Director, Product Mgmt.
       ---------------------------                   ---------------------------

Date: 6/22/99                                 Date: 6/28/99
      ----------------------------                  ----------------------------

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   29
Confidential materials submitted and filed separately with the Securities and
Exchange Commission. Four asterisks are used to denote omissions.

                      AMENDMENT #03 TO TCS/LUCENT AGREEMENT

This Amendment #03 dated 10 April, 2000 is to the A-1-Net SCN Application
Development Agreement dated April 4, 1996 between Lucent Technologies, Inc.
("Lucent") and TeleCommunication Systems, Inc. ("TCS").

The parties identified above hereby agree to the following change.

Article 5F is changed to read as follows:

"For Applications developed pursuant to this agreement, TCS shall be responsible
for warranty and ongoing maintenance support in accordance with the terms and
conditions set forth on Attachment A."

APPROVED AND AGREED TO:

TeleCommunication Systems, Inc.                 Lucent Technologies, Inc.

By:     /s/ Richard Young                       By:    /s/ Peter M. Geimer
   -----------------------------                   -----------------------------
Name:    Mr. Richard Young                      Name:    Peter M. Geimer

Title:   Chief Operating Officer                Title:   Director, INV Alliances

Date:    April 10, 2000                         Date:    April 11, 2000

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   30
                                  Attachment A

                               MAINTENANCE PROGRAM

TCS will provide a 90-day warrant period on all service applications. Lucent
will provide its end-users Level 1 support (i.e., response to customer calls,
managing the trouble tickets, and referring the trouble report to the tier 2
support), and TCS will train the Lucent Level 1 support personnel as
appropriate. TCS will provide Level 2 and 3 support (isolating and fixing the
customer problems). Level 2 and 3 support will comply with Lucent's CTS
requirements as demonstrated by standard procedures used in SMS 33 and Prepaid
12 deployments. Regardless of which party bills the service provider customer
for on-going maintenance, the parties will split the collected revenues as
follows: Lucent will receive 1/6th of the collected maintenance fees; TCS the
other 5/6ths. In support of TCS's warranty and maintenance obligations described
above, TCS will provide the following annual standard technical maintenance and
support as follows:

1.    GENERAL REQUIREMENTS. TCS will provide a toll-free telephone Hotline
      support number available 24 x 7, a toll-free facsimile number and an
      Internet address. TCS warrants that such toll free number, toll free
      facsimile number and Internet address shall be maintained by qualified
      support specialists who shall answer questions from and provide support to
      Lucent regarding the Software.

2.    RESPONSE AND RESOLUTION SCHEDULE.

      a)    Lucent will classify each error or defect in the Software or related
            Documentation and will report such error or defect to TCS for
            correction based on the following criteria:

<TABLE>
<CAPTION>
ERROR CLASSIFICATION    CRITERIA
--------------------    --------
<S>                     <C>
Level 1                 Fatal:  Errors preventing all useful work from being done as reasonably
                        determined by Lucent.

Level 2                 Severe Impact:  Errors which disable major functions from being performed as
                        reasonably determined by Lucent.

Level 3                 Degraded Operations:  Errors disabling only certain nonessential functions
                        as reasonably determined by Lucent.

Level 4                 Minimal Impact:  Includes all other as reasonably determined by Lucent.
</TABLE>

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   31

Confidential materials submitted and filed separately with the Securities and
Exchange Commission. Four asterisks are used to denote omissions.

                  A-I-NET SCN APPLICATION DEVELOPMENT AGREEMENT
                                 AMENDMENT FOUR
                                 APRIL 21, 2000

This Amendment ("Amendment"), dated as of April 21, 2000 is between Lucent
Technologies Inc. ("Lucent") with offices at 2000 N. Naperville Road,
Naperville, IL 60566 and TeleCommunication Systems, Inc. ("TCS") a Maryland
corporation, with offices at 275 West Street, Suite 400, Annapolis, MD 21401.

WHEREAS, Lucent and TCS entered into an A-I-Net SCN Applications Development
Agreement ("Agreement"), effective April 4, 1996 to provide for the development
of two software Applications for Advanced Intelligent Network Services ("AIN");
and

WHEREAS, the Agreement has been modified three times, respectively September 11,
1997, June 28, 1999, and April 11, 2000; and

WHEREAS, both Lucent and TCS desire to amend certain provisions of the Agreement
to provide a clearer understanding of the continuing obligations of the parties
under the Agreement with respect to each party's separate prepaid applications;

NOW, THEREFORE, Lucent and TCS hereby agree to modify the Agreement further by
adding the following:

1.  DEFINITIONS

(a) "TCS Prepaid Application" shall be defined as all object code, source code,
design documentation, user documentation, test drivers, test plans, installation
documentation, sales presentations, price tools and proposal boilerplate related
to PPW1.5 hairpinning and PPW3.1 triggers that has been developed by TCS under
the Agreement.

(b) "Lucent Converged Prepaid Application" shall be defined as all object code,
source code, design documentation, user documentation, test drivers, test plans,
installation documentation, sales presentations, price tools and proposal
boilerplate related to the prepaid application that has been developed
independently by Lucent.

(c) "Prepaid Applications" shall mean the Lucent Prepaid Application and the TCS
Prepaid Application collectively.

(d) "Lucent INU Advantage Platform" shall be defined as Lucent's then-current
SLL middleware-based Advantage platform and its SLL successors.

(e) "Prepaid Revenue" shall be defined as proceeds from the licensing of the
Prepaid Applications, provided that the Prepaid Applications (i) runs on a
Lucent INU Advantage (or its SLL successors) Platform and (ii) falls within the
indicated subscriber configuration as described in the attached Exhibit A
"ANSI-41Market Definition." This definition of Prepaid Revenue specifically
excludes:

       -      Proceeds from the sale of maintenance on the Prepaid Applications
              (allocation of maintenance revenues on the Prepaid Applications is
              addressed in Section 5(a) below)
       -      Proceeds from any sale of any hardware associated with the license
              of the Prepaid Applications

                                  Page 1 of 5

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   32

       -      Proceeds from the license or sale of any other software associated
              with the license of the Prepaid Applications. For the avoidance of
              doubt, bundling of other software into the Prepaid Applications
              will not prevent the Prepaid Application revenue from counting
              toward Prepaid Revenue.

Proceeds shall accrue on the date that Lucent recognizes the proceeds as revenue
pursuant to GAAP and payments thereof shall be made to TCS within 30 days of the
date on which such proceeds accrue. Revenue from new subscriber sales to
customers will be split according to the percentages in effect when the sale
occurs regardless of the version number of the Prepaid Application and shall be
paid to TCS within 30 days of the date Lucent recognizes the accrual of the
proceeds from such upgrades. However, revenue from software upgrades and
enhancements separate from new subscriber license fees will not contribute to
Prepaid Revenue.

2.  REVENUE SHARING FOR PREPAID APPLICATIONS.

(a) REVENUE SHARING. Lucent will share revenue from the Prepaid Applications (as
defined above) as follows:

Period 1= April 1, 2000 ("Effective Date")
                through March 31, 2001= 50% of Prepaid Revenue during the period
Period 2= April 1, 2001 through March 31, 2002= 25% of Prepaid Revenue during
the period
Period 3= April 1, 2002 through March 31, 2003= 20% of Prepaid Revenue during
the period
Period 4= April 1, 2003 through March 31, 2004= 20% of Prepaid Revenue during
the period

After March 31, 2004, TCS shall no longer be entitled to any share of Revenues
from the license by Lucent of the Prepaid Application.

(b) PER-DEAL PREPAID APPLICATION REVENUE FLOOR.

Lucent may offer the license to the Prepaid Application to customers at any
price in its discretion, provided that Prepaid Revenue for a given transaction
will be calculated as follows:

The ****

(For example- If the discounted percentage of the floor price of the total
Lucent Intelligent Networking/Messaging Systems ("Lucent INMS") portion of the
transaction of which the Prepaid Application license is part is **** of the
floor price, the **** number will be multiplied by the Floor Price applicable
to the appropriate subscriber level. That number will be compared to the actual
Prepaid Revenue received by Lucent for the Prepaid Application and the greater
number will be considered the Prepaid Revenue for that transaction.)

The Floor Prices shall be set forth in Exhibit B.

However, nothing herein shall be construed as a guarantee or representation by
Lucent that any minimum level of Prepaid Revenue will occur.

Lucent will provide a quarterly report of Prepaid Revenue calculations signed
by a director-level manager or higher on a quarterly basis. No more than once
per year TCS may, at its option and at its expense, request an audit performed
by an mutually agreed auditor to verify Lucent's adherence to the terms of this
Amendment. If Lucent fails to make a commercially reasonable effort to track
Prepaid Revenue calculations, Lucent will pay all reasonable costs of the
audit. Provided however even where Lucent has made such commercially reasonable
efforts,if the auditor finds more than 15% error in Lucent's adherence

                                  Page 2 of 5

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   33

to the terms of this Amendment, then Lucent agrees to pay all reasonable costs
of the audit up to a capped amount of $10,000 per audit, and TCS may increase
its frequency of audits to no more than two times per year. In all other cases
TCS will bear the costs of the audit. Additionally, in the event that the
auditor discovers error in Lucent's compliance with the terms of this
Amendment, Lucent agrees to pay the balance due to TCS within 30 days. The
auditor must agree to sign a non-disclosure agreement with Lucent and the audit
report will be limited to a written verification of compliance without
revealing specific financial data, unless non-compliance is discovered. In the
event of non-compliance, the auditor will be allowed to reveal summary
financial data in sufficient detail to support the shortfall and calculation of
amounts due to TCS. The summary financial data will be masked so as to disguise
the identity of individual customers. There will be no late fees imposed the
first time any shortfall amount is identified by an audit. Thereafter, in
addition to paying the amount of any shortfall identified by an audit Lucent
will pay late fees in the amount of 1% per month on the unpaid shortfall from
the date such payments were due until paid in full.

3.   SATISFACTION OF TCS APPLICATION DEVELOPMENT OBLIGATION

Upon execution of this Amendment, TCS shall be deemed to have satisfied its
obligations to design and develop two Applications under section 5 of the
Agreement.

4.  OWNERSHIP OF THE TCS PREPAID APPLICATION

(a) OWNERSHIP OF THE TCS PREPAID APPLICATION. All right, title and interest in
and to the TCS Prepaid Application, and all right, title and interest in and to
all patents, copyrights, mask work rights, trade secrets, trademarks and other
intellectual property contained in or derived from the TCS Prepaid Application
are hereby agreed by TCS to be, upon TCS's creation thereof, jointly owned by
Lucent and TCS, without any right of accounting, other than as set forth in
Section 5(e) of the Amendment. TCS shall obligate its employees, to provide, and
shall supply to Lucent at no additional charge, all such assignments, rights and
covenants as reasonably requested by Lucent to assure and perfect such transfer,
assignment or other vesting of such joint ownership rights. Except as set forth
in Section 5(c), each party shall have the unrestricted right to develop and
distribute derivative works.

TCS agrees, and shall obligate TCS's employees to agree, that any Lucent
Confidential Information contained within such TCS Prepaid Application shall be
kept in confidence by TCS and TCS's employees, shall be used only in the
performance of this Agreement, and may not be used for other purposes except
upon such terms as may be agreed upon between the parties in writing. Lucent
shall not acquire under this Agreement any title to any software or other
information that was not developed by or on behalf of TCS for Lucent under or in
anticipation of this Agreement (collectively referred to as the "Background
Information"). The term "Background Information" includes the pre-existing
software and other intellectual property used by TCS to create the TCS Prepaid
Application. TCS grants and agrees to grant to Lucent, an irrevocable,
unrestricted, non- exclusive, royalty free, perpetual license to use, have used,
reproduce, sublicense, sell, distribute and modify, in whole or in part, such
Background Information. Each party shall have all right, title and interest in
their respective modifications.

(b) SPECIAL PROVISIONS FOR PATENT RIGHTS. The following provisions of this
Section shall apply to patents rights for Joint Inventions that arise out of the
TCS Prepaid Application.

       (i)    Lucent shall have the first right to file a patent application in
              the United States on such Joint Invention and it shall notify TCS
              within 30 days of any TCS request whether it elects to file such
              application, and shall supply a draft of the patent application
              for review by TCS within 60 days of notifying TCS of such election
              or forfeit its first right to file.

       (ii)   TCS shall have the right to file a patent application in the
              United States on such Joint Invention in any case in which Lucent
              does not elect to file pursuant to Section (i) hereof.

                                  Page 3 of 5

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   34

       (iii)  The party which elects to file a patent application on such Joint
              Invention in the United States shall have the first right of
              election to file a corresponding patent application in each
              foreign country or, where applicable, community of countries. Such
              party shall notify the other party of those foreign countries, if
              any, in which it elects to file such patent applications. The
              other party shall have the right to file patent applications on
              such Joint Inventions in all other foreign countries.

       (iv)   The expenses for preparing, filing and prosecuting each
              application, and for issue of the respective patents, shall be
              borne by the party which prepares and files the application. The
              other party shall have the right to review and comment on each
              such application prior to its filing, and shall furnish the filing
              party with all documents, information, or other assistance that
              may be necessary for the preparation, filing and prosecution of
              each such application. The filing party shall keep the other party
              current on the status of the application.

       (v)    In the case of an application for patent which is filed in a
              country which requires the payment of taxes or annuities on a
              pending application or on an issued patent, the party which files
              the application may pay such taxes or annuities on the pending
              application or the issued patent, and in the event such party does
              not wish to pay any particular tax or annuity, such party shall so
              notify the non-filing party, in writing, at least two (2) months
              before the due date for payment of such tax or annuity. The
              failure of the filing party to pay any such tax or annuity shall
              not affect such party's rights in such application or patent under
              this Agreement.

       (vi)   The parties shall each have an equal title interest in each
              application and patent for such Joint Inventions, with TCS holding
              an undivided one-half (1/2) interest and Lucent holding an
              undivided one-half (1/2) interest. Each shall have the right to
              grant nonexclusive licenses under patents covering such Joint
              Inventions, without accounting therefor to the other party.

5.  ADDITIONAL TERMS

(a) MIGRATION FROM EXISTING TCS PREPAID APPLICATION. TCS will develop a
migration plan for the existing TCS Prepaid Application customers to migrate
their current prepaid applications to the Lucent Converged Prepaid Application
version 1.x. Until all such TCS Prepaid Application customers are successfully
migrated to the Lucent Converged Prepaid Application, and so long as TCS is
receiving the same percentage of maintenance revenue from the TCS Prepaid
Application as TCS receives under arrangements existing as of the Effective Date
of this Amendment, TCS will provide maintenance support and installation for
existing TCS Prepaid Application customers, including sales assistance and
technical support as necessary. TCS will also make available, as needed, no less
than the equivalent of three full technical engineers skilled in the technical
operation of the TCS Prepaid Application to assist in migration efforts for the
lesser of one year or until the migration effort is completed to Lucent's
reasonable satisfaction.

(b) OTHER MIGRATION DUTIES. TCS will develop and deliver scripts to migrate
Prepaid 1.5 and Prepaid 3.1 triggers application data to the Lucent Converged
Prepaid Application version 1.x. TCS will provide Lucent with the source code
and unrestricted license to use the source code for any code developed as an
augmentation or enhancement to the Lucent Converged Prepaid Platform during the
migration period.

(c) TCS PREPAID APPLICATION COMPETITION CLAUSE.

In consideration for the Revenue Sharing set forth above, TCS agrees (i) to
refrain for a period of one year from the Effective Date of this Amendment from
marketing any application that competes with the Prepaid Applications to those
customers set forth on Exhibit C hereto and (ii) to refrain for a period of four
years

                                  Page 4 of 5

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   35

from the Effective Date of this Amendment from marketing any application that
competes with the Prepaid Applications through any Lucent channel, business
unit, or sales organization.

(d) INDEMNIFICATION. (a) TCS shall indemnify and defend Lucent against any claim
that the TCS Prepaid Application infringes any valid United States (i) patent,
(ii) copyright, or (iii) trade secret, provided that TCS is given prompt written
notice of the claim and is given information, reasonable assistance, and sole
authority to defend or settle the claim. In the defense or settlement of a
claim, TCS shall, in its reasonable judgment, and at its option and expense: (i)
obtain for Lucent the right to continue using the TCS Prepaid Application, (ii)
replace or modify the TCS Prepaid Application so that it becomes noninfringing,
or (iii) if, in TCS's opinion, obtaining the remedies in (i) or (ii) is not
commercially reasonable, as TCS's sole obligation, refund the amount paid to TCS
for the infringing TCS Prepaid Application. (b) TCS shall not have any liability
to Lucent under subsection (a) above to the extent that any infringement or
claim thereof is based upon (i) use of the TCS Prepaid Application in
combination with equipment or software not supplied by TCS where the TCS Prepaid
Application would not themselves be infringing, (ii) use of the TCS Prepaid
Application with an application which was not specified in the applicable
software product description, (iii) modifications of the TCS Prepaid Application
not made by TCS, or (iv) TCS's compliance with Lucent's designs, specifications,
or instructions. (c) The foregoing states TCS's entire liability, and Lucent's
sole and exclusive remedy, with respect to any claim of infringement of any
patent, copyright, trade secret or other intellectual property or proprietary
right which a third party may have against Lucent.

(e) Notwithstanding anything else to the contrary in this Amendment, if TCS
sells the TCS Prepaid Application or any other work primarily based upon the TCS
Prepaid Application (e.g. ported, translated or mapped code or logic flow as
well as upgrades or enhancements to the TCS Prepaid Application ), then the
parties will split all revenues therefrom in accordance with the percentages
provided for in the Agreement.

(f) ENTIRE AGREEMENT AND ORDER OF PRECEDENCE. This Amendment constitutes the
entire agreement between the parties with respect to its subject matter and to
the extent of any conflict between this Amendment and the Agreement or any of
its modifications, attachments, exhibits, or prior amendments, this Amendment
shall take precedence with respect to its subject matter.

<TABLE>
<S>                                               <C>
LUCENT TECHNOLOGIES INC.                           TELECOMMUNICATION SYSTEMS, INC.

By: /s/ PETER M. GEIMER                            By: /s/ RICHARD A. YOUNG
    -------------------------------------              -------------------------------------

Print Name: Peter M. Geimer                        Print Name: Richard A. Young
            ------------------------------                     ------------------------------

Title: Director, INMS Bus. Mgmt                    Title: Chief Operating Officer
       -----------------------------------                -----------------------------------
</TABLE>

                                  Page 5 of 5

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   36

                                    EXHIBIT A

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   37
[TCS LOGO]            ANSI-41 MARKET DEFINITION       [LUCENT TECHNOLOGIES LOGO]
--------------------------------------------------------------------------------

SUBS APPLICABLE TO TCS ANSI-41 LICENSE FEE... (TCS SUBS)     AMENDMENT 4
                                                             EXHIBIT A

NETWORK A                                    NETWORK B
[GRPAHIC]                                    [GRAPHIC]
(IS 41 WIRELESS SUBS)                 (IS 41 WIRELESS SUBS ONLY, NOT GSM)

     SS7 SIGNALING (E.G. TRIGGERS, ISUP, ETC.)
     VOICE FACILITIES (PRI, BRI, ETC.) AND
     ASSOCIATED SIGNALING (TYPE 2A, ISUP, ETC.)

NOTES
1. SCP/CSN - LUCENT INU ADVANTAGE OR SLL ENABLED SUCCESSOR
2. MSC - WIRELESS SWITCH
3. SSP - WIRELINE SWITCH

                    tcs and lucent company confidential              Page 1 of 3

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   38
[TCS LOGO]            ANSI-41 MARKET DEFINITION       [LUCENT TECHNOLOGIES LOGO]
--------------------------------------------------------------------------------

SUBS APPLICABLE TO TCS ANSI-41 LICENSE FEE... (TCS SUBS)     AMENDMENT 4
                                                             EXHIBIT A

                                    NETWORK C
                                    [GRAPHIC]
                    (IS 41 WIRELESS SUBS ONLY, NOT WIRELINE)

     SS7 SIGNALING (E.G. TRIGGERS, ISUP, ETC.)
     VOICE FACILITIES (PRI, BRI, ETC.) AND
     ASSOCIATED SIGNALING (TYPE 2A, ISUP, ETC.)

NOTES
1. SCP/CSN - LUCENT INU ADVANTAGE OR SLL ENABLED SUCCESSOR
2. MSC - WIRELESS SWITCH
3. SSP - WIRELINE SWITCH

                    tcs and lucent company confidential              Page 2 of 3

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   39
[TCS LOGO]            ANSI-41 MARKET DEFINITION       [LUCENT TECHNOLOGIES LOGO]
--------------------------------------------------------------------------------

SUBS APPLICABLE TO TCS ANSI-41 LICENSE FEE... (TCS SUBS)     AMENDMENT 4
                                                             EXHIBIT A

                                    NETWORK D
                                    [GRAPHIC]
                 (IS 41 WIRELESS SUBS ONLY, NOT CARD WIRELINE)

     SS7 SIGNALING (E.G. TRIGGERS, ISUP, ETC.)
     VOICE FACILITIES (PRI, BRI, ETC.) AND
     ASSOCIATED SIGNALING (TYPE 2A, ISUP, ETC.)

NOTES
1. SCP/CSN - LUCENT INU ADVANTAGE OR SLL ENABLED SUCCESSOR
2. MSC - WIRELESS SWITCH
3. SSP - WIRELINE SWITCH

                    tcs and lucent company confidential              Page 3 of 3

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   40
                                    EXHIBIT B

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   41

CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<TABLE>
<CAPTION>
4/20/00                               YEAR 1
            Subscribers            Floor Price
                                  not Including            Floor Price
                                   Asia Pacific            Asia Pacific
------------------------------------------------------------------------
<S>                                <C>                      <C>
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****
              ****                     ****                    ****

<CAPTION>
                                     YEAR 2                                   Discount             ****%
                                                                                     =
            Subscribers            Floor Price
                                  not Including            Floor Price
                                   Asia Pacific            Asia Pacific
------------------------------------------------------------------------
<S>                                <C>                      <C>
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****

<CAPTION>
                                        YEAR 3                                Discount             ****%
                                                                                     =
            Subscribers            Floor Price
                                  not Including            Floor Price
                                   Asia Pacific            Asia Pacific
------------------------------------------------------------------------
<S>                                <C>                      <C>

                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
</TABLE>

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.
<PAGE>   42

<TABLE>
<CAPTION>
                                      YEAR 4                                  Discount             ****%
            Subscribers            Floor Price                                       =
                                  not Including            Floor Price
                                   Asia Pacific            Asia Pacific
------------------------------------------------------------------------
<S>                                         <C>                      <C>

                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****        ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
                ****                   ****                    ****
</TABLE>

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   43

                                    EXHIBIT C

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   44

CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

               INU CUSTOMER LIST**

    1    AAPT
    2    Allegiance
    3    Alltel
    4    Alltel Mobile
    5    Antel (Urugray)
    6    AT&T
    7    BAM
    8    BCP-TESS (Brazil)
    9    Bell Atlantic-Core
    10   Bell South (inc. BS Intl)
    11   BLU +
    12   Brazil--Megatel
    13   Brazil--Megatel/Vesper
    14   British Telecom +
    15   Broadwing
    16   Bouygues Telecom +
    17   Carolina PCS +
    18   Cell-C +
    19   Centenial Puerto Rico
    20   CHT - LDM
    21   Clearnet
    22   CTI - Movil; Argentina
    23   Dakota/McLeod
    24   DTMS-Germany +
    25   Enertel-Netherlands +
    26   E-Plus +
    27   Escotel +
    28   Frontier Cellular
    29   Glenayre
    30   GTE/PCS Argentina
    31   HIL India
    32   Horizon
    33   ICG
    34   KDD-Japan
    35   KMC
    36   LDTA - Taiwan
    37   Movicom
    38   Megatel-Brazil
    39   MTNL +
    40   NCIC - Taiwan

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   45

    41  NEC - Japan
    42  Omnitel +
    43  OneTel +
    44  Orange +
    45  Pae Tec
    46  Retevision +
    47  Sagebrush
    48  Saudi Arabia PTT +
    49  Shyam Telelink
    50  Smart +
    51  SBC / Williams/Ameritech/Pacbell
    52  SBMS
    53  Sprint LDD/NIS
    54  Sprint PCS
    55  Telecel Portugal +
    56  Telecel Venezuela
    57  Telecom Italia +
    58  Telecom New Zealand
    59  Telefonica Chile
    60  Telefonica-Brazil
    61  Telefonica PR
    62  Telefonica-Guatemala/El Salvador
    63  TFNE - Taiwan
    64  Unicom - China
    65  US Cellular
    66  US LEC
    67  US West
    68  US West Wireless
    69  USXchange
    70  Verizon/Vodaphone
    71  VoiceStream +

        + GSM

        ** To the extent that the entities on this list are wireline and
        wireless service providers this list applies to the provider's
        wireless services only.

        This list includes the assigns and successors of the listed
        companies.

**** CONFIDENTIAL MATERIALS SUBMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION. FOUR ASTERISKS ARE USED TO DENOTE OMISSIONS.

<PAGE>   46
Confidential materials submitted and filed separately with the Securities and
Exchange Commission. Four asterisks are used to denote omissions.

                          APPLICATION DEVELOPMENT PLAN

                                    BETWEEN

                              LUCENT TECHNOLOGIES

                                      AND

                        TELECOMMUNICATION SYSTEMS, INC.

                                      FOR

                         TDMA INTERIM AND STANDARD OTAF

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   47
TABLE OF CONTENTS

1.  General .................................................... 1
2.  Application Definition ..................................... 1
3.  Source Code Exchange ....................................... 2
    3.1 Relevant Software and Timing ........................... 2
    3.2 Ownership Exchanged and Retained ....................... 2
    3.3 Confidentiality ........................................ 3
    3.4 Limitation of Liability ................................ 3
    3.5 Indemnification ........................................ 3
4.  Equipment and Software Requirements ........................ 3
5.  Lucent Laboratory (Lab) Requirements ....................... 4
6.  Training Requirements ...................................... 4
7.  Documentation .............................................. 4
    Feature Definition Document ................................ 5
8.  Deployment ................................................. 5
9.  Warranty and Maintenance ................................... 5
10. Application Pricing and Revenue Sharing .................... 5
11. Branding ................................................... 6
12. Marketing .................................................. 6
13. Schedule ................................................... 6
    13.1 Time Frames for Development and ....................... 7
    13.2 Application Delivery Dates ............................ 7
14. Test and Acceptance ........................................ 7
    14.1 Basic Behavior of the System .......................... 7
    14.2 Platform Requirements and Timing Constraints .......... 7
    14.3 Application Acceptance Criteria ....................... 7
15. Project/Offer Management ................................... 8
16. Penalties .................................................. 8
17. Entire Agreement ........................................... 8

                                ii

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   48
1.   GENERAL

This Agreement for Application Development Plan (the "Plan") is made pursuant
to the provisions of the A-I-Net(R) SCN Application Development Agreement dated
April 4, 1996, as amended, (the "Agreement") between Lucent Technologies, Inc.
(Lucent), and TeleCommunication Systems, Inc. (TCS). Except as provided herein,
the provisions of the Agreement are a part of and applicable to this Plan.

2.   APPLICATION DEFINITION

The Over The Air Function (OTAF) application provides activation and
programming capabilities via a TDMA Air Interface. The Standard Time Division
Multiple Access (TDMA) OTAF has been developed by Lucent Technologies. TCS will
undertake supporting (maintenance, bug fixes) and enhancing (including creation
of new features) the Standard TDMA OTAF product such that it supports all IS-41
standard TDMA OTAF features and/or is comparable with major competitive offers.
TCS will develop TDMA Interim OTAF such that it can be sold together with
Standard TDMA OTAF as a stand-alone independent offer. TCS also may choose to
develop TDMA Interim OTAF such that it can be bundled with the TCS Short Message
Service Center (SMS-C) product and sold independently of Standard TDMA OTAF.
TCS will work with Lucent with the objective of developing a common Customer
Service Center (CSC) provisioning interface for TDMA and Code Division Multiple
Access (CDMA) OTAF. Should this development occur, TCS and Lucent will share
the cost of this development evenly. Should this development not occur, TCS
will bear the cost for developing a TDMA CSC interface.

- TCS agrees to develop, support and test the TDMA OTAF with Lucent/TCS mutually
  agreed upon CSC interface options (e.g. Lucent's Actiview, dedicated TDMA OTAF
  provisioning interface, and a documented API for customers who choose to do
  their own interface development) to be ready for deployment on a mutually
  agreeable date. TCS also agrees to work with customers who require custom CSC
  interface development rather than one of the standard interfaces.

- TCS will be required to use the Lucent SCE for developing the TDMA OTAF
  product. Lucent will provide required software and training.

- TCS will be responsible for SMS development and SMS upgrade migrations on the
  New SMS in support of TDMA OTAF product. Lucent will provide required software
  and training. TCS agrees to follow the same mutually agreed practices used in
  development of existing SMSC and Prepaid applications.

- TCS agrees to develop, maintain and make available the over-all product
  requirements documents, following existing procedures used with SMSC and
  Prepaid applications, (including CSC interface requirements) which consists of
  all the existing and in-development features of the product. TCS agrees to
  keep all product requirements up to date.

- Lucent and TCS agree to conduct joint high-level requirements reviews.

                                       1

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   49
- Lucent agrees to provide Lucent SMF, and System Engineering support (ie. MSC,
  HLK, Actiview, SCP) necessary for TCS to conduct high level design of OTAF
  products.

- TCS agrees that any changes to OTAF interfaces (Actiview, MSC, etc.) must be
  communicated to Lucent in a timely fashion in advance of any actual coding.

- TCS agrees to work with identified parties to make sure the TDMA OTAF SPA
  works together with other Lucent SPAs on the same SCP. TCS agrees to obey the
  rules of the WIN Platform API as established for SMSC and Prepaid
  applications.

- TCS agrees to obtain and maintain a minimum SEI level 3 rating or higher by
  December 2000.

3.   SOURCE CODE EXCHANGE

3.1  RELEVANT SOFTWARE AND TIMING

In order to provide for timely development of the application(s), Lucent and
TCS have agreed to the exchange of certain software source code (the "Source
Code") within sixty days of signing this Application Development Plan. TCS will
provide Lucent the Source Code for Short Message Peer-to-Peer Protocol (SMPP),
and Lucent will provide TCS the Source Code for Standard TDMA OTAF.

In the event that either party discontinues availability of the product as
defined in this document, the other party will have continued access at no
charge to that software indefinitely via a source-code escrow under mutually
agreed terms.

3.2  OWNERSHIP EXCHANGED AND RETAINED

The Party providing the Source Code is the Developer, except as otherwise
provided herein, after the exchange of Source Code, each party shall have equal
joint ownership, without right of accounting, of all right, title, and interest
in and to the Source Code.  Thereafter, all copies and all modifications and
enhancements thereto created by a party (including ownership of all copyrights,
parents and other intellectual property rights) shall be solely owned by the
party creating such copies, modifications and/or enhancements. Notwithstanding
the foregoing, such title in copies, modifications or enhancements, shall
not extend to any ideas, methods, inventions, or concepts and the like embodied
in the Source Code or to any portion of the Source Code delivered by the
Developer which shall remain subject to the terms of this Agreement.
Furthermore, each party retains the right to independently develop its own
derivative works based on the Source Code.

Developer makes no warranties that the Source Code will be error-free in all
circumstances or that the Source Code will satisfy the other party's particular
purpose. EXCEPT AS EXPRESSLY SET FORTH IN THIS PARAGRAPH, DEVELOPER SHALL HAVE
NO LIABILITY FOR THE SOURCE CODE OR ANY SERVICES PROVIDED, INCLUDING ANY
LIABILITY FOR NEGLIGENCE; DEVELOPER MAKES AND THE OTHER PARTY RECEIVES NO
WARRANTIES, EXPRESS, IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS
AGREEMENT OR ANY OTHER COMMUNICATION; AND

                                       2

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   50
DEVELOPER SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE.

3.3 CONFIDENTIALITY

Lucent and TCS agree to maintain in confidence the Source Code by using at least
the same physical and other security measures as used for its own confidential
technical information and documentation. Each further agrees not to disclose the
Source Code, or any aspect thereof, to anyone other than employees or
contractors who have a need to know or obtain access to such information in
order to support authorized use of the Source Code and are bound to protect such
information against any other use or disclosure. These obligations shall not
apply to any information generally available to the public, independently
developed or obtained without reliance on Developer's information, or approved
for release by Developer without restriction.

3.4 LIMITATION OF LIABILITY

The cumulative liability of Developer to the other party for all claims relating
to the Source Code provided hereunder, in contract, and, or otherwise, shall not
exceed $10,000. This limitation shall not apply to the indemnification provided
in the following paragraph. In no event shall either party be liable to the
other for any consequential, indirect, special, or incidental damages, even if
such party has been advised of the possibility of such potential loss or damage.
The foregoing limitation of liability and exclusion of certain damages shall
apply regardless of the success or effectiveness of other remedies.

3.5 INDEMNIFICATION

If a third party claims that the Source Code infringes any U.S. patent,
copyright, or trade secret, Developer will defend the other party against such
claim at Developer's expense and pay all damages that a court finally awards,
provided that the other party promptly notifies Developer in writing of the
claim, and allows Developer to control, and cooperate with Developer in, the
defense or any related settlement negotiations. If such a claim is made or
appears possible, Developer may, at its option, secure for the other party the
right to continue to use the Source Code, modify or replace the Source Code so
it is non-infringing, or, if neither of the foregoing options is available in
Developer's judgment, require the other party to return the Source Code.
However, Developer has no obligation for any claim based on a modified version
of the Source Code or its combination, operation, or use with any product, data
or apparatus not provided by Developer. THIS PARAGRAPH STATES DEVELOPER'S ENTIRE
OBLIGATION TO THE OTHER PARTY WITH RESPECT TO ANY CLAIM OF INFRINGEMENT.

4.  EQUIPMENT AND SOFTWARE REQUIREMENTS

TCS will purchase the appropriate Lucent Intelligent Network (IN) platform
hardware that will be necessary to develop the application. Lucent will offer
this hardware to TCS at a discounted price for lab development use. Lucent will
offer the applicable IN platform software Right To

                                       3

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   51

Use (RTU) at no charge. Lucent will continue to provide TCS with SCE platform
software and F.F. updates.

5.   LUCENT LABORATORY (LAB) REQUIREMENTS

TCS will be allowed to utilize Lucent lab facilities, as available, on an
as-needed basis, and will be charged under the terms and practices followed for
other applications. If remote testing is required, Lucent will assist with
arranging facilities and TCS will bear the cost of any applicable remote access
fees. TCS will participate in joint review of requirements and test plans with
the appropriate Lucent personnel and will work with the Lucent SMS team to
ensure data and validation alignment. Lucent will provide TCS with access to
early releases of platform software (Q6/5) to ensure proper alignment. TCS will
work with Lucent on joint planning for Service Package Application/SMS
Intersystem and Service Interval Testing (SIT) testing.

6.   TRAINING REQUIREMENTS

Lucent will provide Intelligent Network (IN) platform training and support to
TCS using current pricing models. TCS will provide training to Lucent on TDMA
Interim OTAF. Training will include marketing, sales, technical and end-user
components. TCS will provide end-user training to TDMA Interim OTAF customers.
Upon TCS and Lucent mutual agreement, Lucent training personnel will undertake
end-user training, based upon partner training materials, for future customers.

7.   DOCUMENTATION

Each application must have end-user and Operation, Administration & Maintenance
(OA&M) documentation. TCS will provide such documentation, and Lucent will
review the documentation to ensure quality standards. TCS will be responsible
for updating, translating (where mutually agreed to), and distributing
documentation for all of its applications.

-    TCS agrees to write and maintain Wireless Feature Definitions Document
     (FDD) equivalent documents and make available on line at Lucent.

-    TCS will be responsible for creating and maintaining customer documentation
     in Lucent specified format as defined by SMS 33 and Prepaid 12. Internal
     documents can be created and maintained in any mutually agreed format.

The following list of the documents or equivalents should be produced and be
available for both Lucent and TCS communities.

                                       4

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   52
<TABLE>
<CAPTION>

TYPE OF THE DOCUMENT                                   PRIMARY USER                   COMMENTS
--------------------                                   ------------                   --------
<S>                                                    <C>                            <C>
Feature Definition Document                            Systems Engineering, and
                                                       Development

Feature Specification Document                         Systems Engineering, and
                                                       Development

System Requirements Document                           Systems Engineering, and
                                                       Development

Product/Feature Installation Manual                    NPI engineers, Product         Gives the detail steps of the
                                                       Installers, and customers      product installation

WIN TDMA OTAF OAEM                                     ????? CUSTOMERS

WIN TDMA OTAF Service                                  Market Managers, Lucent        High level description of the
Description Document                                   Customer terms, Offer and      product with a clear view of
(may consist of update to existing                     product management             features functionality and product
SMSC document)                                                                        feature evaluation

Release Notes                                          NPI, Customers
</TABLE>

8.   DEPLOYMENT

TCS will install the application(s) for each sale, at then-current customary
fees. Lucent will be the prime contractor and will provide project management
for the TCS portion of each installation.

9.   WARRANTY AND MAINTENANCE

Shall be as provided for in the Agreement and any amendments thereto.

10.  APPLICATION PRICING AND REVENUE SHARING

The price established for each service application shall be based on market
conditions and will be reviewed on an as-needed basis to ensure that prices are
in line with similar offers in the market. The price invoiced by Lucent to the
end-user shall be the price supplied by TCS. The pricing must be flexible
enough to allow for below floor prices to end-users where applicable. TCS must
participate and share in any below floor pricing decisions. TCS will invoice
Lucent for the actual customer price, less the Lucent share of revenue provided
for below.

Lucent and TCS agree to the following revenue sharing allocations:

-    If TCS and Lucent swap SMPP and Standard TDMA OTAF Source Code as
     discussed above, TCS and Lucent agree to split TDMA OTAF (standard and
     interim) service application revenues, including any derivative works or
     modifications as follows: 60% to Lucent and 40% to TCS for a period of one
     year from the date TCS releases Standard TDMA OTAF Phase II (as defined in
     attached document) and Interim OTAF, whichever occurs last. After one year,
     revenue sharing on TDMA OTAF (standard and interim) service application
     will convert to an equal 50/50% split.

                                       5

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   53
-    Revenue for the CSC Provisioning Interface for TDMA OTAF will be allocated
     as follows:

     - Actiview; Lucent - 100%

     - TCS developed GUI interface; same as above for service application

     - Lucent developed GUI interface; Lucent - 80%, TCS - 20% unless otherwise
       agreed

-    Product Upgrades: same allocation as above for service application

-    Maintenance: TCS - defined above

-    Installation: TCS - 100%

-    End-user Training: Deployer of training - 100%

-    Custom Development: TBD on a case-by-case basis.

-    List Pricing is on per Subscriber basis beginning at $**** List, less 20%
     for floor. Discounts below floor to be agreed to on a per bid basis.

A process will be established to integrate TCS's application(s) into the Lucent
standard order stream.

11.  BRANDING

TDMA OTAF as defined in this Agreement, will be presented under the Lucent
brand. TCS will be identified in the salesware as a development partner on the
application.

12.  MARKETING

Lucent and TCS will work together to develop a tactical sales and marketing plan
for CDMA OTAF. This plan will be updated as needed based upon market conditions.
TCS agrees to develop product offer planning marketing information (both
internal to Lucent/TCS and external to Lucent/TCS) in close association with the
Lucent product offer manager. TCS and Lucent agree to work together to conduct
primary and secondary market research and to put together customer business
cases and value propositions for the product(s) as required by market conditions
or to respond to market opportunities as jointly agreed. The Partnership will
allow for joint press releases, tradeshow appearances, proof-of-concept
demonstrations (both in-house and at customer site) and electronic
presentations. It is expected that each party will actively market (participate
in tradeshows, demos, etc.) the application. Each party will bear all expenses
associated in participating in these activities. TCS agrees to participate in
responding to the customer's RFPs, RFIs, and pro-actively offer proposals with
respect to the TDMA OTAF product in close association with Lucent.

13.  SCHEDULE

TCS will perform schedule management of both Time Frames for Development and
Application Delivery Dates. TCS and Lucent will trade high-level milestone
schedule necessary to coordinate shared resources during the product development
life cycle.

                                       6

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   54
13.1.    TIME FRAMES FOR DEVELOPMENT AND

TCS development includes design, code, Execution  Environment test and unit
testing necessary to prepare for Lucent acceptance testing of the application.
Lab time necessary for unit testing shall be coordinated with Lucent
Intelligent Networking Unit. This lab time may include access to Lucent CS PSP
labs and Lucent Wireless labs necessary to simulated unit test environment or
provide end-to-end testing.

13.2     APPLICATION DELIVERY DATES

TCS Development of the Interim TDMA OTAF code is expected to be complete in
Q2-00. The integration of the Lucent Standards based TDMA OTAF code is
expected by Q3-00. Lucent and TCS shall jointly agree to schedule adjustments.

14.     TEST AND ACCEPTANCE

TCS will conduct unit testing when possible at TCS labs. Some unit testing is
expected to be conducted at the Lucent CS and Wireless labs. TCS is expected to
support Lucent CS acceptance testing of the application during the Lucent SIT
process.

-   Lucent and TCS agree to create joint testing schedules necessary to secure
    appropriate labs for TCS unit, feature and regression testing.

-   Lucent and TCS agree to publish and maintain System (TCS) and SIT (Lucent)
    test plans on line.

14.1    BASIC BEHAVIOR OF THE SYSTEM

The Interim and Standards base OTAF application are to support UWCC and IS-735
specifications.

14.2    PLATFORM REQUIREMENTS AND TIMING CONSTRAINTS

The Interim and Standards based OTAF application is expected to run on the
Lucent Advantage SCP R9.2 or latest supported customer configuration. The
application may be compiled to run on the CSN and or SN should both Lucent and
TCS agree to support the configuration.

14.3     APPLICATION ACCEPTANCE CRITERIA

TCS shall deliver the Interim and or Standards based OTAF application to Lucent
for Application Acceptance Criteria process defined as Lucent SIT Process as
used for SMSC and PPW applications (example releases sms33, sms42, ppw12,
ppw13).

                                       7

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   55
15.  PROJECT/OFFER MANAGEMENT

*    TCS and Lucent will jointly agree on product release dates and release
     functionality to meet customer needs, but not less than one (1) release per
     year with feature enhancements and bug fixes.

*    TCS agrees to integrate their internal processes with Lucent Q-gate
     process. TCS agrees to provide specified information at pre-defined Q-gate
     milestones as currently followed with existing applications, SMSC and
     Prepaid.

*    TCS agrees to adhere to Lucent's SIT entrance criteria as currently
     followed for SMSC and Prepaid applications.

16.  PENALTIES

Lucent will pass through any customer imposed penalties that have been jointly
agreed to in writing in advance (if such are invoked by the customer) for
missed deadlines directly attributable to TCS. Lucent will take financial
responsibility for any such penalties that are not directly attributable to TCS.

17.  ENTIRE AGREEMENT

This Plan, including the Agreement and any attachments referred to herein and
attached herein, each of which is incorporated in this Plan for all purposes,
constitutes the entire agreement between the parties with respect to the
subject matter of this Plan and there are no representations, understanding or
agreements relating to the Plan which are not fully expressed herein. No
change, waiver, or discharge hereof shall be valid unless in writing and signed
by an authorized representative of the party against which such change, waiver,
or discharge is sought to be enforced.

In witness whereof, TCS and Lucent have caused this Plan to be signed and
delivered by its duly authorized office, all as of the date set forth below.

TeleCommunication Systems, Inc.      Lucent Technologies, Inc.

By: /s/ Richard A. Young             By: /s/ Peter M. Geimer

Name: Mr. Richard Young              Name: Peter M. Geimer

Title: Chief Operating Officer       Title: Director, Business Agent in Alliance

Date: April 10, 2000                 Date: 4/11/00

                                       8

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.<PAGE>   1

  Confidential materials submitted and filed separately with the Securities and
  Exchange Commission.  Four asterisks are used to denote omissions.

                                                                    Exhibit 10.2

                               ALLIANCE AGREEMENT

This is an Alliance Agreement ("Agreement"), effective November 5, 1998 (the
"Effective Date") by and between Lucent Technologies Inc. ("Lucent"), a
corporation organized and existing under the laws of the State of Delaware,
United States of America ("US"), and having an office at 67 Whippany Road,
Whippany, NJ, 07981, US, and TeleCommunication Systems, Inc., ("Company"), a
corporation organized and existing under the laws of Maryland and having an
office at 275 West Street, Suite 400, Annapolis, MD 21401. Each of the foregoing
entities shall be deemed a "Party" and collectively, the "Parties".

                                    RECITALS

         WHEREAS, Lucent is in the business of designing, developing,
manufacturing, selling, installing, and licensing wireless network equipment and
software for the operation of wireless communications systems on a worldwide
basis; and

         WHEREAS, Company is in the business of manufacturing and distributing
certain products that may be useful to Lucent customers who have purchased or
may purchase Lucent's wireless network equipment or software; and

         WHEREAS, Lucent desires to have an arrangement with Company pursuant to
which Lucent may refer existing and potential Lucent customers to Company
and facilitate Company's sales of such products to said customers, and Company
is willing to enter into such an arrangement;

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

                                    AGREEMENT

1.0 HEADINGS AND DEFINITIONS

1.1 All headings used in this Agreement are inserted for convenience only and
are not intended to affect the meaning or interpretation of this Agreement or
any Article or section. For the purpose of this Agreement, the following
definitions will apply:

         (a)  "Advertising" means all advertising, sales promotion, press
              releases, and other publicity matters relating to this Agreement
              or any performance under this Agreement;

         (b)  "Affiliate" of a corporation means its Subsidiaries, any company
              of which it is a Subsidiary, and other Subsidiaries of such
              company;

         (c)  "Collateral Material" means data sheets, applications briefs,
              presentation brochures and other advertising or promotional
              materials that are not designated as confidential by Company and
              are distributed in the normal course of business to assist in the
              marketing of Products;

         (d)  "Documentation" means all technical, repair, marketing and end
              user documentation that is designated as confidential by Company
              and usually made available by Company to its customers or
              potential customers, subject to Non-Disclosure obligations, to
              inform or instruct its customers in the description, features and
              function, installation, operation and maintenance of Products;

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   2
                                      -2-

         (e)  "Exhibits" means the documents attached hereto and incorporated by
              this reference, as they may be amended from time to time by
              written agreement of the Parties. Exhibits include, without
              limitation, the following:

                   Exhibit A - Product Description and List Price Information
                   Exhibit B - Product Specifications
                   Exhibit C - Restricted Company Account(s) and Registered
                               Lucent Account(s) Matrix
                   Exhibit D - Sales Referral Procedure
                   Exhibit E - Commission Percentage

         (f)  "Force Majeure" means fires, strikes, riots, embargoes,
              explosions, earthquakes, floods, wars, water, the elements, labor
              disputes, government requirements, civil or military authorities,
              acts of God or by the public enemy, inability to secure raw
              materials or transportation facilities, acts or omissions of
              carriers or suppliers, or other causes beyond a Party's control
              whether or not similar to the foregoing;

         (g)  "Information" means any specifications, designs, plans, drawings,
              software, data, prototypes, business and/or technical information
              in whatever form recorded or unrecorded.

         (h)  "Lucent Customer(s)" means individually or collectively, as
              applicable, all carriers, service providers, and operators of
              Wireless Network Equipment: (i) to whom Lucent has sold Lucent
              Wireless Network Equipment and to which customers desire to add
              Company's Product, (ii) who have issued a tender, bid request, or
              proposal request or similar request for vendor response to Lucent
              and not to Company, and Lucent's response may include Products or
              (iii) to whom Lucent may be submitting unsolicited proposals for
              Lucent Wireless Network Equipment and/or Products;

         (i)  "Lucent Customer Service Area" means a geographical area, as
              defined by a Lucent Customer, in which the Lucent Customer has
              been authorized to operate Wireless Network Equipment, and in
              which the Lucent Customer is using Lucent Wireless Network
              Equipment. At any specific time a Lucent Customer may operate in
              more than one such area, not all of which are equipped with Lucent
              Wireless Network Equipment;

         (j)  "Products" means, collectively, Company's hardware and/or software
              which is(are) the subject of this Agreement and identified in
              Exhibit A, as it may exist from time to time, whether or not such
              hardware and/or software is provided as part of a service; and
              shall also mean Company's provision of systems integration
              services, systems development services, and other related types of
              services, including but not limited to bringing together business
              hardware and software programs with Lucent technology and/or
              non-Lucent customer technology and/or other various hardware
              and/or software packages, whether or not such hardware or software
              is manufactured, owned, or licensed by Company;

         (k)  "Product Specifications" means those specifications for Products
              set forth in Exhibit B, as it may exist from time to time;

         (1)  "Registered Lucent Account(s)" means those Lucent Customers or
              Lucent Customer Service Areas which have been referred to and
              accepted by Company as provided in Article 3.0. SCOPE OF
              AGREEMENT/IDENTIFICATION OF ACCOUNTS, of this Agreement. A
              Registered Lucent Account(s) List will be created and updated by
              Lucent and Company during the term of this Agreement. The initial
              list of Registered Lucent Account(s), if any, is set forth on
              Exhibit C. Additions and deletions will be made to the Registered
              Lucent Account(s) List from time to time in writing by mutual
              agreement of Lucent and Company, to maintain currency of such
              list;

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential Material Submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   3
                                      -3-

         (m) "Restricted Company Account(s)" means those Lucent Customers or
              Lucent Customer Service Areas for which Company can demonstrate
              that such Lucent Customer or Lucent Customer Service Area has
              previously purchased Products, or with whom Company can
              demonstrate that it is independently pursuing a sales opportunity
              directly. A Restricted Company Account(s) List will be maintained
              by Lucent and Company during the term of this Agreement. The
              initial list of Restricted Company Account(s), if any, is set
              forth on Exhibit C. Additions and deletions will be made to the
              Restricted Company Account(s) from time to time in writing by
              mutual agreement of Lucent and Company, to maintain currency of
              such list;

         (n)  "Subsidiary" of a company means a corporation the majority of
              whose shares or other securities entitled to vote for election of
              directors is now or hereafter owned or controlled by such company
              either directly or indirectly; but any such corporation shall be
              deemed to be a Subsidiary of such company only as long as such
              ownership or control exists; and

         (o)  "Wireless Network Equipment" means equipment and/or software,
              typically involving, but not necessarily so, switching equipment
              and cell site radio equipment, used by providers of
              telecommunications services, as authorized by the responsible
              governmental agency, to furnish to the public those wireless
              services generally described as cellular services and personal
              communications services (but not fixed wireless or wireless access
              services) utilizing any one or more of the technologies currently
              known as analog, Code Division Multiple Access, Time Division
              Multiple Access, Cellular Digital Packet Data and other
              technologies as they may, from time to time, be utilized to
              provide such services to the public, but not the technology known
              as Global Systems Mobile Communications.

2.0 TERM OF AGREEMENT

2.1 This Agreement shall be effective on the date written above and, except as
otherwise provided herein, shall continue in effect for a term of forty-two(42)
months or until (a) earlier terminated pursuant to the terms hereof, or (b)
extended or superseded by an amendment to this Agreement or a subsequent written
agreement mutually agreed upon by the Parties. Notwithstanding any such
expiration or termination, Lucent shall be entitled commissions to the full
extent set forth herein with respect to transfers of Products by Company to
Registered Lucent Accounts referred by Lucent and accepted by Company pursuant
to the terms of this Agreement prior to the effectiveness of such expiration or
termination.

3.0 SCOPE OF AGREEMENT/IDENTIFICATION OF ACCOUNTS

3.1 This Agreement is not intended to establish an exclusive relationship.
Nothing in this Agreement shall be construed as limiting, in any manner,
Company's marketing or distribution activities or its appointment of other
dealers, distributors, licensees or agents, provided that in engaging in such
activities or appointments, Company and its other dealers, distributors,
licensees or agents do not violate Company's obligations to Lucent as set out in
this Agreement. Nothing in this Agreement shall be construed as limiting, in any
manner, Lucent's pursuit of, negotiation with, and establishment of sales
referral agreements or other arrangements with other companies, or to market its
own products or those of other third parties to Lucent Customers even though
such products may be comparable to Products. Company acknowledges that nothing
herein shall be deemed to bar Lucent from proposing to the same Lucent Customer,
at the same time that it is referring Products, the products of one or more
other suppliers, including Lucent. Company further acknowledges that Lucent
markets through its own sales personnel and through its Affiliates and that the
right of Lucent to refer Lucent Customers to Company, and to receive sales
referral commissions in respect of transfers of Products to Registered Lucent
Accounts, as set out in Article 6.0. COMMISSION, shall apply to Lucent and such
Affiliates. As used herein, the term Lucent shall include such Affiliates unless
the context otherwise requires.

3.2 Lucent has the right to market its Wireless Network Equipment worldwide. In
the course of such marketing, Lucent may identify Lucent Customers as sales
opportunities for Products. When Lucent sales teams have done so, they are
authorized to provide Lucent Customers with a high level product

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential Material Submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   4
                                      -4-

description of and Collateral Material for such Products. Either prior to or
after providing such description, Lucent may refer Lucent Customers to Company
as specified in Exhibit D. Each Lucent Customer referred to Company and accepted
by Company pursuant to such procedure shall, to the extent of such acceptance,
become a Registered Lucent Account.

3.3 Notwithstanding the provisions above, Company shall either accept or reject
each referral of a Lucent Customer or Lucent Customer Service Area within five
(5) business days, stating its reason(s) therefor. Reasons for rejection of a
Lucent Customer referral may include, but are not limited to:

         (a)  the Lucent Customer or Lucent Customer Service Area is a
              Restricted Company Account;

         (b)  the Lucent Customer's financial status is unacceptable; and/or

         (c)  the product development requirements of the Lucent Customer will
              require extensive development by Company.

In the event Company rejects a Lucent Customer referral for reason (a) above,
Company will be able to pursue that account directly without Lucent's approval.
In the event Company rejects a Lucent Customer referral for any reason other
than (a) above, Company agrees it will not pursue that Lucent Customer directly
for a period of one (1) year after its rejection. In the event that Company does
not respond to Lucent within five (5) business days to accept or reject the
Lucent Customer referral, for purposes hereof it will be assumed that Company
has accepted the referral and the referred Lucent Customer or Lucent Customer
Service Area shall be deemed a Registered Lucent Account.

3.4 When requested by Lucent, and as mutually agreed, Company personnel shall
accompany Lucent's personnel on visits to Registered Lucent Accounts and provide
necessary materials to be used in Company's sales and technical presentations to
such customers, and otherwise take affirmative steps intended to cause such
customers to purchase Products.

3.5 In the event that the parties shall mutually agree that a Registered Lucent
Account should no longer be considered such, effective with the date of such
agreement, the Lucent Customer or Lucent Customer Service Area involved shall no
longer be deemed a Registered Lucent Account and Company will then, at its sole
discretion, be able to pursue that account directly or through another
distribution channel without owing any commission or other such payments to
Lucent, provided, however, that nothing herein shall be deemed to excuse
Company's obligation under Article 6.0, COMMISSION to pay commissions in respect
of Products or additional growth, upgrades and new features furnished by Company
for Products transferred to the Lucent Customer or Lucent Customer Service Area
pursuant to arrangements entered into prior to the time the Lucent Customer or
Lucent Customer Service Area ceases to be a Registered Lucent Account.

4.0 RELATIONSHIP OF THE PARTIES

4.1 The relationship of the Parties under this Agreement shall be and at all
times remain one of a referral sales agreement for the purpose of providing
Lucent Customers, at their discretion, with an integrated application solution.
Each Party shall employ its own personnel and shall be solely responsible for
their acts and be responsible for payment of all unemployment, Social Security,
and other payroll taxes, including contributions required by law.

4.2 No director, officer, employee, consultant or agent of either Party hereto
or their respective Affiliates shall at any time be deemed to be a director,
officer, employee, consultant or agent of the other Party for any purpose
whatsoever, and the Parties shall use commercially reasonable efforts to prevent
any such misrepresentation. Nothing in this Agreement shall be deemed to create
any joint venture, partnership, or principal-agent relationship between the
Company and Lucent, and neither Party shall hold itself out in its advertising
or in any other manner which would indicate any such relationship with the
other. Company shall at all times be considered an independent contractor for
the purposes of providing Products to Lucent's Customers.

5.0 LUCENT'S RESPONSIBILITIES

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed
     separately with the Securities and Exchange
     Commission. Four asterisks are used to denote
     omissions.
<PAGE>   5
                                      -5-

5.1 Lucent shall be responsible for sales support to Company by providing access
to Registered Lucent Account teams for training and will coordinate and arrange
training sessions; for providing Lucent Customer lead generation and
introduction to Registered Lucent Account; and, when mutually agreed, for
providing consultation on bids and proposals. Lucent will provide a Relationship
Manager and Lucent representative(s) will participate in joint visits to
Registered Lucent Accounts, as and when mutually agreed. Upon Company's request,
Lucent will include Company's name in its Open Systems Innovations catalog, when
published.

6.0 COMMISSION

6.1 Company shall pay Lucent a commission (the "Commission") on all transfers
(including, but not limited to, sales, leases, and licenses) of Products (and
related services) to a Registered Lucent Account. The "Commission Percentage" is
defined in Exhibit E to this Agreement.

6.2 The Commission Percentage shall be applied to the Net Invoice Amount for
Product(s), including any additional growth, upgrades, new features, or
additional systems, and including all related engineering, installation, post
warranty support, enhanced warranty support, provided, however, that Company's
provision of post warranty support and enhanced warranty support exceed a 16%
profit margin, and any other associated services, but not including any sales or
use taxes, import duties, transportation, freight or shipping charges, ordered
by the Registered Lucent Account, for three (3) years from the date of the last
contract executed by Company with the Registered Lucent Account or purchase
order issued by such customer and accepted by Company during the term of this
Agreement. For the purpose of this Article, the term "Net Invoice Amount" means
the net amount billed by Company, after accounting for any applicable normal
discounts (but not credits or other adjustments for Company delays or other
faults, including liquidated or agreed damages).

6.3 Such Commission shall be paid within thirty (30) days after receipt of
payment by Company from the Registered Lucent Account.

7.0 PROPOSALS, CONTRACTS AND ORDERS

7.1 Company will provide to Lucent, at least five (5) business days prior to
such presentation, a copy of each sales proposal to be made by Company to any
Registered Lucent Account. Company will incorporate in its proposal any changes
reasonably requested by Lucent. Company will present the sales proposal directly
to the Registered Lucent Account.

7.2 When a Lucent Customer issues tenders, bid requests, or proposal requests to
Lucent and Lucent desires Company to assist in a response that includes
Products, Company will, if it has accepted or then accepts the Lucent Customer
or Lucent Customer Service Area as a Registered Lucent Account, provide
appropriate personnel and support to work cooperatively with Lucent in providing
proposals. Lucent personnel will take the leadership role in the preparation and
coordination of the response and will be responsible for that portion of the
proposal, if any, involving Lucent Wireless Network Equipment. Company will
assume responsibility for preparation of that portion of the response involving
Products.

7.3 Company will contract directly with Registered Lucent Accounts for the sale
of Products, including invoicing and collections, warranty support, post
warranty support, complete technical support, engineering and installation
services, growth on initial sales, product upgrades, etc., all subject to
Company's applicable charges or price quotation. For use by Lucent in
determining whether to refer Products to a Lucent Customer. Company shall keep
Lucent informed of Company's list prices for Products, as they may exist from
time to time during the term of this Agreement. All orders for Products and
related services shall be submitted directly to Company by Registered Lucent
Accounts.

7.4 Lucent shall not have any liability or obligation with regard to such
contracts entered into by Company or orders submitted by Lucent Customers and
Lucent Customer Service Areas to Company pursuant to such contracts or
otherwise.

                  Lucent - Company Proprietary and Confidential

                     Use Pursuant to Applicable Instructions

**** Confidential Materials submitted and filed
     separately with the Securities and Exchange
     Commission. Four asterisks are used to denote
     omissions.
<PAGE>   6
                                      -6-

7.5 Company acknowledges that Lucent Customers and Lucent Customer Service Areas
may from time to time pose to Lucent problems or other matters that relate to
Products furnished to them by Company. Unless the Parties otherwise agree in
writing, which such writing shall address the compensation to which Lucent shall
be entitled for any additional services that the Parties agree that Lucent will
perform, all such problems and other matters shall be referred by Lucent to
Company. Promptly upon execution of this Agreement, and as necessary through out
the term of this Agreement, Company will provide Lucent with the current
telephone number or other manner of communicating with Company for referral of
such problems and other matters to Company, on a twenty-four (24) hour per day,
seven (7) day per week, basis. Upon referral of a problem by Lucent, Company
shall promptly confirm in writing an acknowledgment of its receipt thereof and
promptly work to solve the problem. Upon resolution of any referred problem,
Company shall furnish notice to Lucent in writing a description of the actions
taken to clear the problem and the date the problem was cleared.

8.0 AUDIT

8.1 Company shall maintain accurate and complete records of all transactions
with Registered Lucent Accounts for which payment of a sales referral commission
may be owed to Lucent under this Agreement. Such records shall be maintained in
accordance with recognized commercial accounting practices so they may be
readily audited and shall be held until at least the later of (i) one (1)
calendar year after the sales referral commission(s) for all such transactions
have been finally determined under this Agreement and payment or final
adjustment of payment, as the case may be, has been made by Company, or (ii) one
(1) calendar year after the termination, cancellation or expiration of this
Agreement. Company shall permit Lucent or Lucent's representative(s), including
third party auditor(s), to examine and audit these records and all supporting
records at all reasonable times. Company shall not be required to allow any such
audits after the end of the record retention period set out above.

8.2 Company shall provide a statement on a quarterly basis of all transactions
with Registered Lucent Accounts and all Net Invoice Amounts (as described in
Article 6.0, COMMISSION  applicable thereto, the date(s) of invoices reflecting
such amounts, the amount(s) of payment(s) received from Registered Lucent
Accounts in respect of such invoices, and the date(s) of such receipt by
Company. This statement shall be sent to the Lucent contact specified in Article
22, NOTICES.

8.3 In the event that Lucent exercises its right to audit and Lucent reasonably
determines that Company owes commissions pursuant to Article 6.0, COMMISSION,
that were not paid, Company will immediately pay to Lucent those amounts not
paid. In the event of a discrepancy resulting in an underpayment to Lucent which
is five percent (5%) or greater than the amount that should have been paid to
Lucent, Company agrees to pay for the reasonable cost of the audit.

9.0 INTEROPERABILITY TESTING

9.1 Prior to any sales referral activity between Lucent and Company for any
Product, such Product must have completed successful interoperability testing at
Lucent's Wireless Innovation Lab(SM) testing facility and satisfy all
requirements of interoperability. Except as the Parties may otherwise agree in
writing, such testing shall be performed pursuant to a separate written
agreement setting forth Lucent's standard terms and conditions and charges for
such testing, as they exist from time to time. When a Product previously
successfully tested is modified and/or changed in any way that might render the
previous test results invalid or uncertain, Company must inform Lucent and such
Product must repeat interoperability testing to validate that the modifications
and/or changes do not compromise interoperability status.

9.2 If Lucent Wireless Network Equipment undergoes modification and/or change,
Lucent will notify Company. Each impacted Product must repeat interoperability
testing, if Lucent determines that the modifications and/or changes could
compromise interoperability status of such Product.

10.0 TRAINING

10.1 Company will, at Lucent's request and without charge, provide training in
the features, target markets, selling strategies, and technical aspects of
Products for Lucent's personnel such that said

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

<PAGE>   7
                                      -7-

personnel will be able to effectively identify sales opportunities for Products.
The Parties will mutually agree on the level of training required. Training
courses may be delivered via teleconference training, computer based training,
video, video teleconference, or seminar at a mutually agreeable location. The
Parties will mutually agree on the delivery method and the training materials
required.

10.2 Company shall provide each Lucent attendee, at no charge, a complete set of
available training materials, handouts and associated materials pertaining to
Products. Lucent personnel shall not copy or distribute any such training
materials without the written permission of Company.

11.0 COORDINATION OF INSTALLATION AND ACCEPTANCE

11.1 The Parties will integrate, whenever possible, their installation plans to
satisfy requirements of Registered Lucent Accounts to whom they have marketed
their products. The Parties will also make reasonable efforts to cooperate in
preparing acceptance criteria and plans that will satisfy those customers'
interest in ensuring that Lucent Wireless Network Equipment and Products work
together as an integrated system.

12.0 FEDERAL COMMUNICATIONS COMMISSION (FCC) REGISTRATION

12.1 When a Product furnished by Company to Lucent Customers is subject to Part
2, Part 15, Part 22, Part 68, or any other part of the FCC's Rules and
Regulations, as amended from time to time, Company warrants to Lucent and will
warrant to Lucent Customers and Lucent Customer Service Areas that such Product
complies with the registration, certification, type acceptance, and/or
verification standards of the FCC's Rules and Regulations, including but not
limited to, all labeling and customer instruction requirements, and the
suppression of radiation to specified levels. Company shall establish periodic
on-going compliance re-testing and follow a quality control program to assure
that Products furnished to Lucent Customers and Lucent Customer Service Areas
will comply with the applicable FCC Rules and Regulations. Company agrees to
indemnify and save Lucent, its Affiliates, Lucent Customers, Lucent Customer
Service Areas and each of their officers, directors, employees, agents,
representatives, successors and assigns (all hereinafter referred to in this
clause as "Lucent") harmless from any losses, damages, liabilities, fines,
penalties, claims, suits or demands (including the costs, expenses, and
reasonable attorney's fees incurred on account thereof) that may be made because
of Company's non-compliance with the applicable FCC Rules and Regulations.
Company agrees to defend Lucent, at Lucent's request, against any such
liability, fine, penalty, claim, suit or demand.

12.2 In addition, should any Product, which is subject to Part 15 of the FCC
Rules and Regulations, during use generate harmful interference to radio
communications, Company shall provide Lucent and the impacted Lucent Customers
and Lucent Customer Service Areas with information relating to methods of
suppressing such interference.

13.0 SAFETY CERTIFICATION

13.1 Company warrants to Lucent and will warrant to Lucent Customers and Lucent
Customer Service Areas that Products furnished to them will comply with the
applicable Underwriters Laboratories (UL), Canadian Standards Association (CSA),
and other international standards and regulations. Upon request of Lucent from
time to time during the term of this Agreement, and at no charge to Lucent,
Company will provide Lucent a certification in writing by an authorized officer
of Company, that each Product is in compliance with such standards and
regulations as are applicable. Company shall be responsible for bringing
Products into compliance and maintaining compliance with said UL, CSA, and
international standards and regulations. Company agrees to indemnify and save
Lucent, its Affiliates, Lucent Customers, Lucent Customer Service Areas, and
each of their officers, directors, employees, agents, representatives,
successors and assigns (all hereinafter referred to in this clause as "Lucent")
harmless from any losses, damages, liabilities, fines, penalties, claims, suits
or demands (including the costs, expenses, and reasonable attorney's fees
incurred on account thereof) that may be made because of Company's
non-compliance with such applicable UL, CSA and international standards and
regulations. Company agrees to defend Lucent, at Lucent's request, against any
such liability, fine, penalty, claim, suit or demand.

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions
<PAGE>   8
                                      -8-

14.0 APPLICABLE LAW/UNIFORM LAWS NOT APPLICABLE

14.1 The construction and interpretation of, and the rights and obligations of
the Parties pursuant to this Agreement shall be governed by the laws (other than
its conflict of law rules) of the State of New York, United States. The uniform
laws drawn up pursuant to the Diplomatic Conference on Unification of Law
governing the International Sale of Goods held at the Hague in 1964 (and any
successor thereto), whether or not adopted anywhere, shall not apply to this
Agreement or any order issued hereunder. The stipulations concerning the United
Nations Convention on Contracts for the International Sale of Goods held at
Vienna in 1980 shall not apply to this Agreement.

15.0 ARBITRATION

15.1 The Parties agree to attempt in good faith to resolve any dispute regarding
any right, obligation, duty or liability arising out of the provisions of this
Agreement, including its breach. If a dispute is not resolved by such attempt,
such dispute shall be resolved by arbitration in the English language before a
single arbitrator in New York City, New York, United States, pursuant to this
clause and the then current American Arbitration Association ("AAA") rules. The
arbitrator shall be knowledgeable in commercial business transactions and
wireless technology and acceptable to both parties. The arbitrator's decision
and award shall be final and binding and may be entered in any court having
jurisdiction thereof. The arbitrator shall not have the power to award punitive
or exemplary damages. Each Party shall bear its own attorney's fees associated
with any arbitration instituted hereunder and other costs shall be borne as
provided by the applicable AAA rules. The arbitrator, Parties, their
representatives and other participants shall hold the existence, content and
result or award in confidence.

15.2 The procedures specified in this clause shall be the sole and exclusive
procedures for the resolution of disputes arising out of or relating to this
Agreement provided, however, nothing herein shall be deemed to require
arbitration of matters not arbitrable under applicable law, or prohibit a Party
from seeking a preliminary injunction or other preliminary judicial relief if in
such Party's reasonable judgment such action is necessary to avoid irreparable
damage. Despite any such action, the parties will continue to participate in
good faith in the procedures specified herein. All applicable statutes of
limitation shall be tolled while the procedures specified herein are pending,
and nothing herein shall be deemed to bar any Party from taking such action as
may be required to effectuate such tolling.

16.0 ASSIGNMENT AND SUBCONTRACTING

16.1 Company shall not assign any right or interest under this Agreement or
delegate or subcontract any obligation to be performed or owed under this
Agreement without the prior written consent of Lucent. Any attempted assignment,
delegation or subcontracting in contravention of the above provisions shall be
void and ineffective. In the event that a majority or greater of the issued and
outstanding stock of Company changes control in one or a series of related
transactions, such event shall not constitute an assignment.

16.2 Lucent has the right to assign this Agreement and to assign its rights and
delegate its duties under this Agreement, in whole or in part, at any time and
without Company's consent, to any one or more present or future Affiliates of
Lucent. Lucent shall give Company prompt written notice of the assignment.

16.3 Nothing herein shall preclude a Party from employing a subcontractor in
carrying out its obligations under this Agreement. A Party's use of such
subcontractor shall not release the Party from its obligations under this
Agreement.

17.0 COLLATERAL MATERIAL

17.1 Within ten (10) business days of the full execution of this Agreement,
Company will, without charge to Lucent, furnish to the Lucent Relationship
Manager listed in Exhibit D. Collateral Material about Products which Company
makes available to its own customers or its own sales force in sufficient

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions
<PAGE>   9
                                      -9-

number for Lucent to commence its activities under this Agreement. From time to
time during the term of this Agreement, upon reasonable request of Lucent,
Company will provide additional copies of then current Collateral Material.
Company will promptly inform Lucent of any changes to the Collateral Material.
Lucent shall have the right to make reasonable numbers of copies of Collateral
Material in any form for use in accordance with its rights under this Agreement.

18.0 ENGLISH LANGUAGE

18.1 This Agreement has been prepared and executed in the English language which
will be the controlling language for all purposes of this Agreement.

19.0 EXPORT CONTROL

19.1 Each Party acknowledges that the Information and other items (including but
not limited to, any services and training) provided under this Agreement are
subject to US export and re-export laws and regulations and any use or transfer
of such Information and other items must be authorized under those regulations.
Each Party agrees that it will not use, distribute, transfer, or transmit the
Information, and other items (even if incorporated into other materials) except
in compliance with US export regulations. If requested by a Party, the other
Party also agrees to sign written assurances and other export-related documents
as may be required for the requesting Party to comply with US export
regulations.

19.2 Each Party further agrees that it shall not transfer or transmit
Information or other items received under this Agreement (even if incorporated
into other material) to any country outside of the US or Canada without the
prior written consent of the disclosing Party.

20.0 FORCE MAJEURE

20.1 Neither Lucent nor Company shall be held responsible for any delay or
failure in performance to the extent that such delay or failure is caused by a
Force Majeure. Each such Party shall notify the other such Party within thirty
(30) days of the occurrence of a Force Majeure. If any Force Majeure occurs and
results in a delay or failure in performance, the Parties may mutually agree to
resume performance once the Force Majeure ceases with an option for the injured
Party to extend the performance date up to the length of time the Force Majeure
endured. Unless written notice is given within thirty (30) days after such
injured Party is apprised of the occurrence of a Force Majeure, the
aforementioned option shall be deemed selected. Nothing contained herein or
elsewhere shall impose any obligation on either Party to settle any labor
difficulty.

21.0 NON-WAIVER

21.1 No waiver of the terms and conditions of this Agreement, or the failure of
any Party strictly to enforce any such term or condition on one or more
occasions shall be construed as a waiver of the same or of any other term or
condition of this Agreement on any other occasion.

22.0 NOTICES

22.1 All notices under this Agreement shall be in writing (except where
otherwise stated) and shall be addressed to the addresses set forth below or to
such other address as either Party may designate by notice pursuant hereto. Such
notices shall be deemed to have been given when delivered by hand or sent
prepaid by reputable international courier service, facsimile or electronic mail
to such applicable address.

         Lucent:     Lucent Technologies Inc.
                     67 Whippany Road
                     Room 2A333
                     Whippany, NJ 07981

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   10
                                      -10-

                     Attn.: Leslie Brooks, Contract Manager
                     Fax# : 973 386-6633
                     Tel.#: 973 386-2421

         Company:    TeleCommunication Systems, Inc.
                     275 West Street, Suite 400
                     Annapolis, MD 21401

                     Attn.: Bruce White, Director, Contracts & Administration
                     Fax #: 410 263-7617

23.0 PUBLICATION OF AGREEMENT

23.1 The Parties shall keep the provisions of this Agreement submitted hereunder
confidential except as reasonably necessary for performance hereunder or in
connection with any prospective assignments of rights and/or duties hereunder,
and except to the extent disclosure may be required by applicable laws or
regulations, in which latter case, the Party required to make such disclosure
shall promptly inform the other Party prior to such disclosure in sufficient
time to enable each such other Party to make known any objections it may have to
such disclosure. The disclosing Party shall take all reasonable steps to secure
a protective order or otherwise assure that the Agreement or order will be
withheld from the public record.

24.0 PUBLICITY

24.1 A Party shall submit to the other proposed copy of all Advertising wherein
the name, trademark, code, specification or service mark of another Party or its
Affiliates is mentioned; and no Party shall publish or use such Advertising
without the other's prior written approval.

25.0 RELEASES VOID

25.1 Neither Party shall require (i) waivers or releases of any personal rights
or (ii) execution of documents which conflict with the terms of this Agreement,
from employees, agents, representatives or customers of the other in connection
with visits to its premises and both Parties agree that no such releases,
waivers or documents shall be pleaded by them or third persons in any action or
proceeding.

26.0 RIGHT OF ACCESS

26.1 Each Party shall provide the other such access to its premises and
facilities as is reasonably required in connection with the performance of their
respective obligations under this Agreement. No charge shall be made for such
access. Reasonable prior notification will be given when access is required.
Neither Party shall require releases of any personal rights in connection with
visits to its premises.

27.0 SEVERABILITY

27.1 If any provision in this Agreement shall be held to be invalid or
unenforceable, the remaining portions shall remain in effect. In the event such
invalid or unenforceable provision is considered an essential element of this
Agreement, Lucent and Company shall promptly negotiate a replacement provision.

28.0 SURVIVAL OF OBLIGATIONS

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   11
                                      -11-

28.1 The Parties' rights and obligations which, by their nature, would continue
beyond the termination, cancellation, or expiration of this Agreement, shall
survive such termination, cancellation, or expiration.

29.0 TERMINATION OF AGREEMENT FOR CAUSE

29.1 This Agreement may be terminated by either Party upon the failure of the
other Party to cure any material default following written notice and
opportunity of thirty (30) days to cure, provided, however, that either Party
will have the right to terminate this Agreement immediately upon notice to the
other Party in the following circumstances:

         (i)      If the other Party becomes insolvent or unable to pay its
                  debts in the ordinary course of its business;

         (ii)     If a voluntary or involuntary petition under applicable
                  bankruptcy laws is filed by or against the other Party;

         (iii)    If a receiver is appointed for the business affairs of the
                  other Party or the other Party makes an assignment for the
                  benefit of creditors;

         (iv)     If the other Party liquidates or ceases doing business as a
                  going concern;

         (v)      If there is a change in the control or majority ownership of
                  either Party not otherwise expressly assented to by the other
                  Party;

         (vi)     If Company fails to maintain interoperability compatibility;
                  or

         (vii)    If Company fails materially to live up to its contract
                  obligations to Lucent Customers.

30.0 CONDUCT UPON TERMINATION OR EXPIRATION

30.1 In the event this Agreement is not renewed or is terminated, then the
following shall occur, unless the Parties otherwise agree in writing:

         (i)      Any use of the other Party's marks and use of Collateral
                  Material related to the Products, and marketing efforts by
                  Lucent, not previously commenced, shall terminate on the
                  effective date of termination or expiration;

         (ii)     Both parties will honor the terms and conditions of joint or
                  coordinated proposals submitted to Registered Lucent Accounts
                  prior to the termination or expiration date. All work on
                  proposals including Products not yet submitted shall cease.
                  Company shall continue to honor all contracts it has executed
                  with Registered Lucent Accounts;

         (iii)    Company shall pay Lucent all amounts then currently owed but
                  not previously paid to Lucent and all amounts which become
                  due, when they become due, to Lucent in the future in
                  accordance with Article 6.0 COMMISSION; and

         (iv)     Neither Party shall have any liability to the other Party for
                  damages of any kind, including incidental or consequential
                  damages, on account of such termination or expiration of this
                  Agreement. Without limiting the generality of the foregoing,
                  neither Party shall be liable to the other Party on account of
                  such termination or expiration for reimbursement or damages
                  for the loss of goodwill, prospective profits or anticipated
                  sales, or on account of any expenditures, investment, leases
                  or commitments made by such Parties or for any reason
                  whatsoever based upon or growing out of such termination or
                  expiration, except as provided in paragraph (iii) herein.

31.0 USE OF INFORMATION

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions
<PAGE>   12
                                      -12-

31.1 All Information which bears a legend or notice restricting its use, copying
or dissemination, shall remain the property of the furnishing Party and shall be
subject to the provisions of this Article. The furnishing Party grants the
receiving Party the right to use such Information only as follows. Such
Information (1) shall not be reproduced or copied, in whole or part, except for
use as authorized in this Agreement; and (2) shall, together with any full or
partial copies thereof, be returned or destroyed when no longer needed. Unless
the furnishing Party consents in writing, such Information, except for that
part, if any, which is known to the receiving Party free of any confidential
obligation, or which becomes generally known to the public through acts not
attributable to the receiving Party, shall be held in confidence by the
receiving Party. The receiving Party may disclose such Information to other
persons, upon the furnishing Party's prior written authorization, but solely to
perform acts which this clause expressly authorizes the receiving Party to
perform itself and further provided such other person agrees in writing (a copy
of which writing will be provided to the furnishing Party at its request) to the
same conditions respecting use of Information contained in this Article and to
any other reasonable conditions requested by the furnishing Party. Nothing
herein shall be deemed to prevent the receiving Party from disclosing the
Information in response to legal process under applicable law, provided that the
receiving Party (i) takes all reasonable steps available to keep the Information
from the public record, and (ii) promptly notifies the furnishing Party of such
process prior to disclosure so that the furnishing Party may seek an appropriate
protective order and/or waive compliance with the terms hereof.

31.2 Company acknowledges that Lucent is likely to provide to Company
information about Lucent Customers in connection with the Parties' cooperation
under this Agreement. Company understands that all such customer information,
including, but not limited to, names, addresses, telephone numbers, and
telecommunications needs, is confidential to Lucent whether or not available
publicly, and whether or not marked as confidential, and shall be treated in
accordance with the requirements of this article. Company agrees that such
customer information will only be used to perform services for Lucent Customers
pursuant to a contract with the relevant Lucent Customer, or in connection with
the Parties' cooperation under this Agreement, and will not be used for any
other purpose, including the solicitation or servicing of Lucent Customers or
prospective customers, except as expressly authorized in writing by Lucent.

32.0 LIMITATION OF LIABILITY

32.1 NEITHER PARTY NOR ITS AFFILIATES, NOR THE DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS, REPRESENTATIVES, SUCCESSORS OR ASSIGNS OF SUCH PARTY OR ITS AFFILIATES,
SHALL IN ANY EVENT BE LIABLE TO THE OTHER PARTY (INCLUDING HEREIN ITS
AFFILIATES) OR TO ANY OTHER COMPANY OR ENTITY FOR ANY INCIDENTAL, CONSEQUENTIAL,
OR ANY OTHER INDIRECT LOSS OR DAMAGE ARISING OUT OF THIS AGREEMENT OR ANY
OBLIGATION RESULTING THEREFROM, WHETHER IN AN ACTION FOR OR ARISING OUT OF
BREACH OF CONTRACT, FOR TORT, OR ANY OTHER CAUSE OF ACTION, EXCEPT WHERE SUCH
LOSS ARISES FROM BREACH OF A PARTY'S OBLIGATIONS SET OUT IN ARTICLE 31.0, "USE
OF INFORMATION". EACH PARTY'S ENTIRE LIABILITY FOR ANY CLAIM OR LOSS, DAMAGE OR
EXPENSE FROM ANY CAUSE WHATSOEVER SHALL IN NO EVENT EXCEED IN THE AGGREGATE, THE
GREATER OF $100,000 OR THE AMOUNT OF MONIES PAID OR PAYABLE TO LUCENT HEREUNDER.
NOTHING HEREIN SHALL BE DEEMED TO EXCUSE COMPANY'S LIABILITY TO PAY COMMISSIONS
TO THE FULL EXTENT PROVIDED IN THIS AGREEMENT OR TO RELIEVE COMPANY OF ANY
EXPRESS REMEDY SET FORTH IN THIS AGREEMENT.

32.2 NO ACTION OR PROCEEDING AGAINST EITHER PARTY MAY BE COMMENCED MORE THAN
EIGHTEEN (18) MONTHS AFTER THE CAUSE OF ACTION ACCRUES.

32.3 THIS CLAUSE SHALL SURVIVE FAILURE OF ANY EXCLUSIVE REMEDY SET OUT IN THIS
AGREEMENT.

33.0 ENTIRE AGREEMENT

                 Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   13
                                      -13-

33.1 The terms and conditions contained in this Agreement and any subordinate
agreement supersede all prior oral or written understandings between the Parties
with respect to the subject matter thereof and constitute the entire agreement
of the Parties with respect to such subject matter. Such terms and conditions
shall not be modified or amended except by a writing signed by authorized
representatives of both Parties.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   14
                                      -14-

IN WITNESS THEREOF, the Parties have executed this Agreement on the respective
dates entered below.

  LUCENT TECHNOLOGIES INC.               TELECOMMUNICATION SYSTEMS,
                                         INC.

By:     /s/ Joseph F. Coletta             By:        /s/ Maurice B. Tose
    -----------------------------------       --------------------------------
            (Signature)                                 (Signature)

          Joseph F. Coletta                           Maurice B. Tose
    -----------------------------------       --------------------------------
            (Typed Name)                                (Typed Name)

              Director                                    President
    -----------------------------------       --------------------------------
              (Title)                                      (Title)

              11/5/98                                     10/27/98
    -----------------------------------       --------------------------------
           (Date Signed)                                 (Date Signed)

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

<PAGE>   15
                                      -15-

           EXHIBIT A - PRODUCT DESCRIPTION AND LIST PRICE INFORMATION

SMS WEB GATEWAY

The SMS Web Gateway works in conjunction with the Short Message Service Center
and uses SMPP, the preferred protocol for sending short text messages. The SMS
Web Gateway accepts messages from e-mail or web pages, translates the messages
from SMTP or HTTP to SMPP and then forwards the messages to the SMSC for
delivery to the handset.

E-mail messages can be sent from standard E-mail clients through the SMS Web
Gateway to SMSC and then to the handset. E-mail attachments are not sent and the
message will be truncated if it is longer than the current acceptable length.

The SMS Web Gateway resides on a platform distinct from that of the SMSC
application. The SMS Web Gateway is a Java application that will run on a server
with a Java interpreter. The SMS Web Gateway must reside on a server with web
server software that supports servlets. Servlet plug-ins are available for many
of the major web servers. If the SMS Web Gateway is to be used for SMTP to SMPP
translation, i.e. e-mail transfers, then no other mail server can reside on the
same server.

<TABLE>
<CAPTION>
       Description                               Floor+                List+
-----------------------------------------------------------------------------
<S>                                             <C>                  <C>
SMS Web Gateway Software
For initial 10,000 SMS subscribers or up
to 100 messages per busy hour.                   ****                ****
-----------------------------------------------------------------------------
Support for each additional 100 messages
per busy hour                                    ****                ****
-----------------------------------------------------------------------------
Dell Server for SMS Web Gateway                  ****                ****
-----------------------------------------------------------------------------
Web Server software with Servlet
Support                                          ****                ****
-----------------------------------------------------------------------------
Basic Web page                                   ****                ****
-----------------------------------------------------------------------------
0S                                               ****                ****
-----------------------------------------------------------------------------
300 Mhz Intel Server                             ****                ****
-----------------------------------------------------------------------------
64MB RAM                                         ****                ****
-----------------------------------------------------------------------------
4GB SCSI Hard drives                             ****                ****
-----------------------------------------------------------------------------
NIC                                              ****                ****
-----------------------------------------------------------------------------
14" monitor                                      ****                ****
-----------------------------------------------------------------------------
Keyboard, mouse, 3.5" floppy                     ****                ****
-----------------------------------------------------------------------------
SCSI CD-Rom                                      ****                ****
-----------------------------------------------------------------------------
1 year warranty, 7x24, 4 hours                   ****                ****
response
-----------------------------------------------------------------------------
</TABLE>

 + DOES NOT INCLUDE LUCENT COMMISSION.

NOTE: HARDWARE CONFIGURATIONS, AND THUS HARDWARE PRICES, VARY DEPENDING UPON THE
NUMBER OF SUBSCRIBERS OR MESSAGES PER BUSY HOUR AND THE NUMBER OF APPLICATIONS
TO BE RUN ON THE PLATFORM.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   16
                                      -16-

CUSTOMIZED PERSONAL LIST PAGES

The Customized Personal List Pages are intelligent, client-side web pages which
can be used in conjunction with the SMSC. The Personal List pages allow the user
to categorize their personal entries.

The Customized Personal Lists allow any number of end users to store the names
and associated MIN numbers of their personal contacts. This allows users to
customize the web page to their individual needs. By using client side cookies,
the pages do not add any additional storage or processing overhead to the server
due to data lookups.

Once the user has entered a contact, the user would simply select the contact's
name from a list and the MIN would automatically be entered in the To: field.
The user would then type a short text message on the form and submit the form
when complete. The Customized Personal Lists works in conjunction with a web
server and the SMS Web Gateway. The submitted message would then be routed to
the SMS Web Gateway for protocol translation and forwarding to the SMSC.

DESCRIPTION                       FLOOR+                    LIST+
-----------------------------------------------------------------------------
Customized Personal Lists          ****                     ****
-----------------------------------------------------------------------------
 + DOES NOT INCLUDE LUCENT COMMISSION.

CUSTOM USER PAGE APPLICATION

The Custom User Page Application (CUPA) application can be configured to operate
with the SMS Web Gateway. This application resides on a web server that supports
servlets. It queries a relational database and allows individual users to
configure customized web pages for themselves containing such information as
their e-mail, address, message of the day and a URL. The generated pages allow
individuals to send short text messages directly to the owner of the page.

<TABLE>
<CAPTION>
 DESCRIPTION                           FLOOR+               LIST+
-----------------------------------------------------------------------------
<S>                                   <C>          <C>
 Custom User Page Application,           ****                ****
 5,000 user license
-----------------------------------------------------------------------------
 Custom User Page Application,           ****                ****
 5,001 - 10,000 user license
-----------------------------------------------------------------------------
 Custom User Page Application,           ****                ****
 10,001 - 15,000 license
-----------------------------------------------------------------------------
 Custom User Page Application,           ****                ****
 15,001 - 20,000 licenses
-----------------------------------------------------------------------------
 Custom User Page Application,           ****                ****
 20,001 - 25,000 licenses
-----------------------------------------------------------------------------
 Custom User Page Application, each      ****                ****
 additional 5,000 users
-----------------------------------------------------------------------------
</TABLE>

 + DOES NOT INCLUDE LUCENT COMMISSION.

SMS WEB CALENDAR

The SMS Web Calendar Application provides users with the ability to schedule
personalized events over the web for notification by either Short Message
Service or e-mail. Using an intuitive interface featuring monthly and daily
views, the user can schedule any number of individual or recurring events.
Monthly summary, monthly detail and daily detail forms as well as forms for
adding and editing events. Events with SMS notification can include callback
number, priority, and message validity period.

The SMS Calendar application requires a server to run a database and web server
software which supports servlets. The SMS Calendar application submits short
message notifications via SMPP and e-

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   17
                                      -17-

mail notifications via SMTP. The SMS Calendar and the Custom User Page
Application can both use the same database as well as the same password schema,
thus allowing the user to use one account for both applications.

<TABLE>
<CAPTION>
  DESCRIPTION                          FLOOR+           LIST+
-----------------------------------------------------------------------------
<S>                                    <C>          <C>
  SMS Web Calendar Application,
  5,000 user license                     ****                ****
-----------------------------------------------------------------------------
  Calendar Application, 5,001 -
  10,000 user license                    ****                ****
-----------------------------------------------------------------------------
  Calendar Application, 10,001 -
  15,000 license                         ****                ****
-----------------------------------------------------------------------------
  Calendar Application, 15,001 -
  20,000 licenses                        ****                ****
-----------------------------------------------------------------------------
  Calendar Application, 20,001 -
  25,000 licenses                        ****                ****
-----------------------------------------------------------------------------
  Calendar Application, each
  additional 5,000 users                 ****                ****
-----------------------------------------------------------------------------
</TABLE>

 + DOES NOT INCLUDE LUCENT COMMISSION.

PROFESSIONAL SERVICES
---------------------

-  Web Site Development
-  Firewall Installations
-  Security Engineering
-  Systems Engineering
-  Software Applications Development
-  Database Development, Integration and Maintenance
-  Cable Plant Cabling and Management
-  Network Installation and Migration
-  Requirements Analysis
-  LAN/WAN design
-  LAN/WAN installation and configuration
-  Network troubleshooting
-  Configurations management and Documentation
-  Help Desk Services, including Virtual Help Desk Centers
-  Imaging and Workgroup systems integration
-  Logistics and Program Management

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   18
EXHIBIT B - PRODUCT SPECIFICATIONS
To be provided by Company within ten (10) business days of the execution of
this Agreement

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   19
                                      -18-

EXHIBIT C - RESTRICTED COMPANY ACCOUNT(S) AND REGISTERED LUCENT ACCOUNT(S)
            MATRIX

<TABLE>
<CAPTION>
  Account Name                Last Update          PRODUCT A     PRODUCT B     PRODUCT C     PRODUCT D     PRODUCT E
                              Date                 SMS Web      Customized       CUPA        SMS Web       Professional
                                                    Gateway      Personal                    Calendar      Services
                                                                   Lists                                   Related to
                                                                                                           Products
                                                                                                           A, B, C & D
<S>                           <C>                   <C>           <C>           <C>           <C>          <C>
                                                                                                              (/)
Air Touch                                               (R)            (R)       (R)            (R)
Alltel                                                  (R)            (R)       (R)            (R)
BellAtlantic Mobile                                     (R)            (R)       (R)            (R)
Centennial (Puerto Rico)                                (R)            (R)       (R)            (R)
CMT Partners                                            (R)            (R)       (R)            (R)
Codetel                                                 (/)            (/)       (/)            (/)
Comcast                                                 (R)            (R)       (R)            (R)
CTI                                                     (R)            (R)       (R)            (R)
CWP                                                     (R)            (R)       (R)            (R)
Frontier Cellular                                       (R)            (R)       (R)            (R)
Maine Cellular                                          (R)            (R)       (R)            (R)
Telecom New Zealand                                     (R)            (R)       (R)            (R)
Rural Cellular Corp.                                    (/)            (/)       (/)            (/)            (/)
Sprint Spectrum                                         (R)            (R)       (R)            (R)            (/)
Sprint PCS                                              (R)            (R)       (R)            (R)
Telecel                                                 (R)            (R)       (R)            (R)
Telfonica (El Salvador)                                 (R)            (R)       (R)            (R)
USWest                                                  (R)            (R)       (R)            (R)            (/)
US Cellular                                             (R)            (R)       (R)            (R)
</TABLE>

(R) in a specific Product column indicates that the Account is a Registered
Lucent Account for that specific Product

(/) in a specific Product column indicates that the Account is a Restricted
Company Account for that specific Product

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.
<PAGE>   20
                                      -19-

                      EXHIBIT D - SALES REFERRAL PROCEDURE

1.   A sales lead is submitted by the Lucent Sales Team to the Lucent Alliance
     Manager; or the Lucent Sales Team or Lucent Alliance Manager introduces a
     Lucent Account representative to Company; or Company identifies a sales
     lead during the course of a trade show or similar cooperative marketing
     event, in which case, Company shall provide a list of all sales leads
     identified during the trade show or other cooperative marketing event, to
     the Lucent Alliance Manager via telephone, e-mail and facsimile, within 48
     hours of the end of the event.

     Lucent Alliance Manager:           Angelo Bravos
     Telephone Number:                  630 713-9581
     E-mail Address:                    abravos@lucent.com
     Facsimile Number:                  630 713-0081

2.   The Lucent Alliance Manager provides the following sales lead referral
     information to the Company Alliance Manager via telephone, email and
     facsimile:

     -  Company Alliance Manager:       Drew Morin
        Telephone Number:               410 280-1203
        E-mail Address:                 morin@pobox.tcs-inc.com
        Facsimile Number:               410 263-7617

     -  Sales Lead Referral Information:
        Account Name:
                                        ------------------------------
        Account Location:
                                        ------------------------------
        Product(s) Interest:
                                        ------------------------------

3.   The Company Alliance Manager responds within 5 business days via telephone,
     e-mail, and facsimile to the Lucent Alliance Manager, accepting or
     rejecting the sales lead referral for the Product(s) of interest. If the
     sales lead is rejected by the Company Alliance Manager, the Company
     Alliance Manager will include in the response the reason for the
     rejection.

4.   The Sales Referral Agreement is amended to add the Account Name, Last
     Update Date, and the appropriate symbols in the Product columns in Exhibit
     C - Restricted Company Account(s) and Registered Lucent Account(s) Matrix.

5.   The Lucent Alliance Manager will coordinate the introduction of the Company
     Alliance Manager to the Lucent Sales Team personnel.

6.   If the sales lead involves a written response to a tender, Request for
     Proposal (RFP), Request for Information (RFI), and/or Request for Quote
     (RFQ), the Parties shall perform their responsibilities as outlined in this
     Sales Referral Agreement.

7.   Lucent Sales Team personnel will coordinate and participate in the initial
     meeting or conference call between the Company Sales Team and the
     Registered Lucent Account. If further meetings or conference calls are
     requested by the Registered Lucent Account, the Parties shall perform their
     responsibilities as outlined in this Sales Referral Agreement.

8.   Lucent Sales Team personnel will monitor the Lucent Registered Account for
     indications of client satisfaction with Company and will communicate this
     information to the Company Sales Team should issues be brought to their
     attention by the Lucent Registered Account.

9.   Lucent Sales Team Personnel will monitor the Lucent Registered Account for
     indications of follow on sales opportunities for Company products and will
     communicate this information to the Company Sales Team should opportunities
     arise.

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

<PAGE>   21
                                      -22-

                                    EXHIBIT E

                              COMMISSION PERCENTAGE

Company shall pay Lucent a commission (the "Commission") on all transfers
(including, but not limited to, sales, leases, and licenses) of Products (and
related services) to a Registered Lucent Account. The "Commission Percentage" is
Twenty-Five Percent (25%).

The Commission Percentage shall be applied to the Net Invoice Amount for
Product(s), including any additional growth, upgrades, new features, or
additional systems, and including all related engineering, installation, post
warranty support, enhanced warranty support, and any other associated services,
but not including any sales or use taxes, import duties, transportation, freight
or shipping charges, ordered by the Registered Lucent Account, for three (3)
years from the date of the last contract executed by Company with the Registered
Lucent Account or purchase order issued by such customer and accepted by Company
during the term of this Agreement.

Company's checks for payment of the Commission should include the following
information:

-    Company name
-    Registered Lucent Account name
-    Product(s) sold
-    Appropriate codes (as provided to Company by Lucent)

SEND PAYMENTS TO:

             Lucent Technologies Inc.
             Derek Gullett
             67 Whippany Road
             Room 3E 332A
             Whippany, NJ 07981

When payment of the Commission is issued, Company will also provide a report to
Lucent which will include the following information:

-   Company name
-   Registered Lucent Account name
-   Product(s) sold
-   Net Invoice Amount
-   Date of the invoice
-   Commission Percentage calculation
-   Amount of the payment of the Commission

SEND REPORTS TO:

             Lucent Technologies Inc.
             Leslie Brooks, Contract Manager
             67 Whippany Road
             Room 2A333
             Whippany, NJ 07981

                  Lucent - Company Proprietary and Confidential
                     Use Pursuant to Applicable Instructions

**** Confidential materials submitted and filed separately with the Securities
     and Exchange Commission. Four asterisks are used to denote omissions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]