UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
(Rule 14d-100)
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
TELECOMMUNICATION SYSTEMS, INC.
(Name of Subject Company (Issuer))
TYPHOON ACQUISITION CORP.
(Offeror)
A Wholly Owned Subsidiary of
COMTECH TELECOMMUNICATIONS CORP.
(Parent of Offeror)
(Names of Filing Persons (identifying status as offeror, issuer or other person))
CLASS A COMMON STOCK, $0.01 PAR VALUE
CLASS B COMMON STOCK, $0.01 PAR VALUE
87929J103
(Title of Class of Securities)
(CUSIP Number of Class of Securities)
Stanton D. Sloane
President and Chief Executive Officer
Comtech Telecommunications Corp.
68 South Service Road, Suite 230
Melville, New York 11747
(631) 962-7000
(Name, address, and telephone numbers of person authorized
to receive notices and communications on behalf of filing persons)
Copies to:
Robert A. Cantone, Esq.
Michael E. Ellis, Esq.
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036
(212) 969-3000
CALCULATION OF FILING FEE
Transaction Valuation*
Amount of Filing Fee**
$363,206,690
$36,574.92
*
Estimated solely for purposes of calculating the filing fee pursuant to Rule 0-11(d) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Transaction Valuation was calculated on the basis of (a) 72,641,338 shares of common stock, $0.01 par value per share, of TeleCommunication Systems, Inc. (the “Shares”), the estimated maximum number of Shares that may be acquired in this tender offer (representing (i) 62,061,396 Shares issued and outstanding, (ii) 10,125,160 Shares issuable upon the exercise of outstanding options exercisable prior to March 22, 2016 and (iii) 454,782 Shares that will no longer be subject to forfeiture and other restrictions prior to March 22, 2016), multiplied by (b) the offer price of $5.00 per Share. The foregoing share figures have been provided by the issuer to the offerors and are as of December 3, 2015, the most recent practicable date. The foregoing share figures have been provided by the issuer to the offerors and are as of December 3, 2015, the most recent practicable date.
**
The filing fee was calculated in accordance with Rule 0-11 under the Exchange Act and equals $100.70 per $1,000,000 of transaction value.

Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
Amount Previously Paid:    n/a Filing Party:   n/a
Form of Registration No.:   n/a Date Filed:    n/a

Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to which the statement relates:

third-party tender offer subject to Rule 14d-1.

issuer tender offer subject to Rule 13e-4.

going-private transaction subject to Rule 13e-3.

amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results of the tender offer.   
If applicable, check the appropriate box(es) below to designate the appropriate rule provision(s) relied upon:

Rule 13e-4(i) (Cross-Border Issuer Tender Offer)

Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)

This Tender Offer Statement on Schedule TO (this “Schedule TO”) relates to the offer (the “Offer”) by Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a direct, wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together, with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of  $5.00 per Share, net to the seller in cash, without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase dated December 7, 2015 (the “Offer to Purchase”), which is annexed to and filed with this Schedule TO as Exhibit (a)(1)(A), and in the related Letter of Transmittal, which is annexed to and filed with this Schedule TO as Exhibit (a)(1)(B), which, together with any amendments or supplements thereto, collectively constitute the “Offer.”
Item 1.   Summary Term Sheet.
The information set forth in the section of the Offer to Purchase entitled “Summary Term Sheet” is incorporated herein by reference.
Item 2.   Subject Company Information.
(a)
The name of the subject company and the issuer of the securities to which this Schedule TO relates is TeleCommunication Systems, Inc., a Maryland corporation. TCS’ principal executive offices are located at 275 West Street, Annapolis, Maryland 21401. TCS’ telephone number at such address is (410) 263-7616.
(b)
This Schedule TO relates to the issued and outstanding Shares of TCS. According to TCS, as of December 3, 2015, there were an aggregate of  (i) 62,783,838 Shares issued and outstanding, including 722,442 Shares subject to forfeiture or other restrictions, (ii) outstanding options to purchase 15,531,205 Shares and (iii) 438,677 unearned Shares subject to forfeiture or other restrictions.
(c)
The information set forth in Section 6 — “Price Range of Shares; Dividends” of the Offer to Purchase is incorporated herein by reference.
Item 3.   Identity and Background of Filing Person.
This Schedule TO is being filed by Purchaser and Comtech. The information set forth in Section 9 — “Certain Information Concerning Purchaser and Comtech” in the Offer to Purchase and in Schedule A of the Offer to Purchase is incorporated herein by reference.
Item 4.   Terms of the Transaction.
The information set forth in the Offer to Purchase is incorporated herein by reference.
Item 5.   Past Contacts, Transactions, Negotiations and Agreements.
The information set forth in the sections of the Offer to Purchase entitled “Summary Term Sheet” and “Introduction,” and Sections 9, 10 and 11 — “Certain Information Concerning Purchaser and Comtech,” “Background of the Offer; Contacts with TCS” and “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements” is incorporated herein by reference.
Item 6.   Purposes of the Transaction and Plans or Proposals.
The information set forth in the sections of the Offer to Purchase entitled “Summary Term Sheet” and “Introduction,” and Sections 6, 7 and 11 — “Price Range of Shares; Dividends,” “Possible Effects of the Offer; NASDAQ Listing; Exchange Act Registration” and “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements” is incorporated herein by reference.
Item 7.   Source and Amount of Funds or Other Consideration.
The information set forth in Section 12 — “Source and Amount of Funds” of the Offer to Purchase is incorporated herein by reference.

Item 8.   Interest in Securities of the Subject Company.
The information set forth in Sections 9 and 11 — “Certain Information Concerning Purchaser and Comtech” and “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements” of the Offer to Purchase is incorporated herein by reference.
Item 9.   Persons/Assets Retained, Employed, Compensated or Used.
The information set forth in the section of the Offer to Purchase entitled “Introduction” and Sections 10, 11 and 16 — “Background of the Offer; Contacts with TCS,” “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements” and “Fees and Expenses” of the Offer to Purchase is incorporated herein by reference.
Item 10.   Financial Statements.
Not applicable.
Item 11.   Additional Information.
(a)(1) The information set forth in Sections 9, 10 and 11 — “Certain Information Concerning Purchaser and Comtech,” “Background of Offer; Contacts with TCS” and “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements” of the Offer to Purchase is incorporated herein by reference.
(a)(2), (3)
The information set forth in Sections 11, 13 and 15 — “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements,” “Conditions of the Offer” and “Certain Legal Matters” of the Offer to Purchase is incorporated herein by reference.
(a)(4) Not applicable.
(a)(5) The information set forth in Section 15 — “Certain Legal Matters” of the Offer to Purchase is incorporated herein by reference.
(c) The information set forth in the Offer to Purchase is incorporated herein by reference.
Item 12.   Exhibits.
(a)(1)(A) Offer to Purchase, dated December 7, 2015
(a)(1)(B) Form of Letter of Transmittal (including Internal Revenue Service Form W-9, including instructions for completing the form)
(a)(1)(C) Form of Notice of Guaranteed Delivery
(a)(1)(D)
Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees
(a)(1)(E) Form of Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees
(a)(5)(A) Investor Presentation(1)
(a)(5)(B) Joint Press Release issued by Comtech and TCS on November 23, 2015(2)
(a)(5)(C) General Questions and Answers(3)
(a)(5)(D) Employee Questions and Answers(4)
(a)(5)(E) Summary Newspaper Advertisement as published in Investor’s Business Daily on December 7, 2015
(a)(5)(F) Press Release issued by Comtech on December 7, 2015
(b) Commitment Letter, dated as November 22, 2015, between Comtech and Citibank, N.A. and its affiliates(5)
(d)(1) Agreement and Plan of Merger, dated as of November 22, 2015, among Comtech, Purchaser and TCS(6)
(d)(2) Tender and Support Agreement, dated as of November 22, 2015, among Comtech, Purchaser, TCS and Maurice B. Tosé(7)

(d)(3) Tender and Support Agreement, dated as of November 22, 2015, among Comtech, Purchaser, TCS and Jon B. Kutler(8)
(d)(4) Confidentiality and Nondisclosure Agreement, dated as of July 13, 2015, between Comtech and TCS
(d)(5) Teaming Agreement, dated as of March 25, 2010, as amended, between Comtech Systems, Inc. and TCS
(d)(6) Non-Exclusive Teaming Agreement, dated as of May 18, 2011, between Comtech Systems, Inc. and TCS
(d)(7)
TCS Teaming Agreement, dated as of April 9, 2013, between Comtech Systems, Inc. and TCS
(g) Not applicable
(h) Not applicable
(1)
Incorporated by reference to Exhibit 99.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(2)
Incorporated by reference to Exhibit 99.2 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(3)
Incorporated by reference to Exhibit 99.3 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(4)
Incorporated by reference to Exhibit 99.4 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(5)
Incorporated by reference to Exhibit 10.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(6)
Incorporated by reference to Exhibit 2.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(7)
Incorporated by reference to Exhibit 99.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(8)
Incorporated by reference to Exhibit 99.2 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
Item 13.   Information Required by Schedule 13E-3.
Not applicable.

SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Dated: December 7, 2015
COMTECH TELECOMMUNICATIONS CORP.
By: /s/ Michael D. Porcelain
Name: Michael D. Porcelain
Title: Senior Vice President and Chief Financial Officer
TYPHOON ACQUISITION CORP.
By: /s/ Michael D. Porcelain
Name: Michael D. Porcelain
Title: Treasurer

EXHIBIT INDEX
(a)(1)(A) Offer to Purchase, dated December 7, 2015
(a)(1)(B) Form of Letter of Transmittal (including Internal Revenue Service Form W-9, including instructions for completing the form)
(a)(1)(C) Form of Notice of Guaranteed Delivery
(a)(1)(D)
Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees
(a)(1)(E) Form of Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees
(a)(5)(A) Investor Presentation(1)
(a)(5)(B) Joint Press Release issued by Comtech and TCS on November 23, 2015(2)
(a)(5)(C) General Questions and Answers(3)
(a)(5)(D) Employee Questions and Answers(4)
(a)(5)(E) Summary Newspaper Advertisement as published in Investor’s Business Daily on December 7, 2015
(a)(5)(F) Press Release issued by Comtech on December 7, 2015
(b) Commitment Letter, dated as November 22, 2015, between Comtech and Citibank, N.A. and its affiliates(5)
(d)(1) Agreement and Plan of Merger, dated as of November 22, 2015, among Comtech, Purchaser and TCS(6)
(d)(2) Tender and Support Agreement, dated as of November 22, 2015, among Comtech, Purchaser, TCS and Maurice B. Tosé(7)
(d)(3) Tender and Support Agreement, dated as of November 22, 2015, among Comtech, Purchaser, TCS and Jon B. Kutler(8)
(d)(4) Confidentiality and Nondisclosure Agreement, dated as of July 13, 2015, between Comtech and TCS
(d)(5) Teaming Agreement, dated as of March 25, 2010, as amended, between Comtech Systems, Inc. and TCS
(d)(6) Non-Exclusive Teaming Agreement, dated as of May 18, 2011, between Comtech Systems, Inc. and TCS
(d)(7)
TCS Teaming Agreement, dated as of April 9, 2013, between Comtech Systems, Inc. and TCS
(g) Not applicable
(h) Not applicable
(1)
Incorporated by reference to Exhibit 99.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(2)
Incorporated by reference to Exhibit 99.2 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(3)
Incorporated by reference to Exhibit 99.3 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(4)
Incorporated by reference to Exhibit 99.4 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009517)
(5)
Incorporated by reference to Exhibit 10.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(6)
Incorporated by reference to Exhibit 2.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(7)
Incorporated by reference to Exhibit 99.1 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)
(8)
Incorporated by reference to Exhibit 99.2 to the Form 8-K filed by Comtech on November 23, 2015 (Accession Number: 0001571049-15-009516)



December 7, 2015 Exhibit (a)(1)(A)
Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
TeleCommunication Systems, Inc.
at
$5.00 Net Per Share
by
Typhoon Acquisition Corp.
a wholly owned subsidiary of
Comtech Telecommunications Corp.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED.
Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a direct, wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), is offering to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of  $5.00 per Share, net to the seller in cash (the “Offer Price”), without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal (which, together with any amendments or supplements thereto, collectively constitute the “Offer”). The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of November 22, 2015, among Purchaser, TCS and Comtech (the “Merger Agreement”), under which, after the completion of the Offer and the satisfaction or waiver of certain limited conditions, Purchaser will be merged with and into TCS and TCS will be the surviving corporation and a wholly owned subsidiary of Comtech (the “Merger”).
The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and the transactions contemplated thereby, has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.
The Offer is conditioned upon (i) the satisfaction of the Minimum Condition (as described in this Offer to Purchase), (ii) the expiration or termination of the waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) the absence of any law or order by any governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities that would prohibit, declare unlawful, enjoin or otherwise prevent the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement, (iv) two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016 ) having passed after completion of the Marketing Period (as described in the Offer to Purchase), and (v) other customary conditions as described in Section 13 — “Conditions of the Offer.” There is no financing condition to the Offer. A summary of the principal terms of the Offer appears on pages (i) through (v). You should read this entire document carefully before deciding whether to tender your Shares.

NOTICE OF OFFER AND MERGER UNDER SECTION 3-106.1 OF THE
MARYLAND GENERAL CORPORATION LAW
In accordance with Section 3-106.1(e) of the Maryland General Corporation Law (the “MGCL”), notice of the Offer and the Merger and the transactions contemplated thereby is hereby given by Purchaser (the “Notice”). The Articles of Merger, pursuant to which the Merger will become effective, will be filed with the State Department of Assessments and Taxation of Maryland not earlier than 30 days after the date of this Offer to Purchase.

The Information Agent for the Offer is:
[MISSING IMAGE: lg_innisfree-lowres.jpg]
501 Madison Avenue, 20th Floor
New York, NY 10022
Stockholders May Call Toll-Free: (888) 750-5834
Banks & Brokers May Call Collect: (212) 750-5833
IMPORTANT
If you desire to tender all or any portion of your Shares to Purchaser in the Offer, you should either (a) complete and sign the Letter of Transmittal for the Offer (or a facsimile thereof), which is enclosed with this Offer to Purchase, in accordance with the instructions contained in the Letter of Transmittal, mail or deliver the Letter of Transmittal and any other required documents to American Stock Transfer & Trust Company, LLC, the depositary for the Offer (the “Depositary”), and either deliver the certificates for your Shares to the Depositary along with the Letter of Transmittal or tender your Shares by a transfer of Direct Registration Book-Entry Shares (as defined in this Offer to Purchase) or by book-entry transfer by following the procedures described in Section 3 — “Procedures for Tendering Shares” of this Offer to Purchase, in each case by the Expiration Date (as defined herein) of the Offer, or (b) request that your broker, dealer, commercial bank, trust company or other nominee effect the tender for you. If you hold Shares registered in the name of a broker, dealer, commercial bank, trust company or other nominee you must contact that institution in order to tender your Shares.
If you desire to tender your Shares and the certificates representing your Shares are not immediately available, or you cannot comply in a timely manner with the procedures for tendering your Shares by book-entry transfer, or cannot deliver all required documents to the Depositary by the expiration of the Offer, you may tender your Shares by following the procedures for guaranteed delivery described in Section 3 — “Procedures for Tendering Shares” of this Offer to Purchase. The method of delivery of Shares, the Letter of Transmittal and all other required documents, including delivery by book-entry transfer, is at the election and sole risk of the tendering stockholder.
* * *
Questions and requests for assistance may be directed to Innisfree M&A Incorporated, the “Information Agent” for the Offer at the telephone numbers and address set forth on the back cover of this Offer to Purchase. Requests for additional copies of this Offer to Purchase, the Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials may be directed to the Information Agent. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance. Copies of these materials may also be found at the website maintained by the Securities and Exchange Commission (the “SEC”) at www.sec.gov.
We are not aware of any jurisdiction where the making of the Offer is prohibited by any administrative or judicial action pursuant to any valid state statute. If we become aware of any valid state statute prohibiting the making of the Offer or the acceptance of the Shares, we will make a good faith effort to comply with that state statute or seek to have such statute declared inapplicable to the Offer. If, after a good faith effort, we cannot comply with the state statute, we will not make the Offer to, nor will we accept tenders from or on behalf of, the holders of Shares in that state. In any jurisdiction where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction.
We have filed with the SEC the Schedule TO (including exhibits) in accordance with the Securities Exchange Act of 1934, as amended (the “Exchange Act”), furnishing certain additional information with respect to the Offer and may file amendments thereto. In addition, TCS has filed the Schedule 14D-9

(including exhibits) in accordance with the Exchange Act setting forth its recommendation and furnishing certain additional related information. The Schedule TO and the Schedule 14D-9, and any amendments thereto, including exhibits, may be examined and copies may be obtained from the SEC in the manner set forth in Section 8 — “Certain Information Concerning TCS” — “Available Information.”
No person has been authorized to give any information or make any representation on behalf of Purchaser or Comtech not contained in this Offer to Purchase, the Letter of Transmittal or the Notice of Guaranteed Delivery and, if given or made, such information or representation must not be relied upon as having been authorized. No broker, dealer, commercial bank, trust company or other nominee shall be deemed to be the agent of Comtech, Purchaser, TCS, the Information Agent or the Depositary or any of their affiliates for the purpose of the Offer. Neither delivery of this Offer to Purchase nor any purchase pursuant to the Offer will, under any circumstances, create any implication that there has been no change in the affairs of Comtech, Purchaser, TCS or any of their respective subsidiaries since the date as of which information is furnished or the date of this Offer to Purchase.

TABLE OF CONTENTS
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A-1

SUMMARY TERM SHEET
This summary highlights selected information from this Offer to Purchase and may not contain all of the information that is important to you. You should carefully read this entire Offer to Purchase and the other documents to which this Offer to Purchase refers to fully understand the Offer (as defined below), the Merger (as defined below) and the related transactions. References to “we,” “us,” or “our,” unless the context otherwise requires, are references to Purchaser (as defined below). Except as otherwise set forth herein, the information concerning TCS contained in this Offer to Purchase has been based upon publicly available documents and records on file with the SEC, including TCS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and other public sources.
Principal Terms

Typhoon Acquisition Corp. (“Purchaser”), a direct, wholly owned subsidiary of Comtech Telecommunications Corp. (“Comtech”), is offering to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc. (“TCS”), at a price of  $5.00 per Share, net to the seller in cash (the “Offer Price”), without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal (which, together with any amendments or supplements thereto, collectively constitute the “Offer”). The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of November 22, 2015, among Purchaser, TCS and Comtech (the “Merger Agreement”), under which, after the completion of the Offer and the satisfaction or waiver of certain conditions, Purchaser will be merged with and into TCS and TCS will be the surviving corporation (the “Surviving Corporation”) and a wholly owned subsidiary of Comtech (the “Merger”).

The Offer is the first step in our plan to acquire all of the issued and outstanding Shares, as provided in the Merger Agreement. If the Offer results in our purchasing a majority of the total number of issued and outstanding Shares entitled to vote on the matter, we will acquire the remainder of the Shares in the Merger for an amount in cash, without interest and subject to applicable withholding taxes, equal to the Offer Price, pursuant to Section 3-106.1 of the Maryland General Corporation Law (the “MGCL”). No dissenters’ or appraisal rights or rights of an objecting stockholder (under Section 3.201 et seq. of the MGCL or otherwise) will be available with respect to the Merger or the other transactions contemplated thereby. See Section 15 —  “Certain Legal Matters — Appraisal Rights.”

In accordance with Section 3.106.1(e) of the MGCL, notice of the Offer and the Merger and the transactions contemplated thereby is hereby given by Purchaser (the “Notice”). The Articles of Merger, pursuant to which the Merger will become effective, will be filed with the State Department of Assessments and Taxation of Maryland not earlier than 30 days after the date of this Offer to Purchase.

The Offer is only for Shares and not for options or shares subject to forfeiture or other restrictions. On the terms and subject to the conditions set forth in the Merger Agreement, any options to purchase Shares outstanding immediately prior to the effective time of the Merger (the “Effective Time”), by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, if any, without interest and less the amount of any withholding taxes, equal to the product of  (i) the number of Shares underlying such option and (ii) an amount equal to (x) the Offer Price less (y) the per share exercise price of such option. In addition, on the terms and subject to the conditions set forth in the Merger Agreement, each Share that is subject to forfeiture or other restrictions outstanding immediately prior to the Effective Time, by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, without interest and less the amount of any withholding taxes, equal to the product of  (i) the number of Shares underlying such restricted share and (ii) the Offer Price; provided that any payments in respect of such restricted shares to which a former holder thereof may be eligible to receive will be earned
i

subject to the same vesting schedule and other vesting terms and conditions which applied to such restricted shares prior to the Effective Time, and such payment shall become payable on the date or dates that such restricted shares would have become vested under the vesting schedule in place immediately prior to the Effective Time.

The initial offering period for the Offer will end at 12:00 midnight, New York City time, at the end of the day on Tuesday, January 5, 2016, unless we extend the Offer (such time and date at which the Offer will expire, the “Expiration Date”). We will announce any decision to extend the Offer in a press release stating the new expiration date no later than 9:00 a.m., New York City time, on the first business day after the previously scheduled expiration of the Offer.

Purchaser expressly reserves the right to make any changes in the terms or conditions to the Offer; provided, however, unless previously approved by TCS in writing, Comtech and Purchaser may not provide for a “subsequent offering period” (within the meaning of Rule 14d-11 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

Upon the terms and subject to the prior satisfaction or waiver of the conditions to the Offer (including, if the Offer is extended or amended in accordance with the terms of the Merger Agreement, the terms and conditions of any extension or amendment), we will accept for payment and pay for all Shares validly tendered in accordance with the procedures set forth in Section 3 — “Procedures for Tendering Shares” and not properly withdrawn prior to the Expiration Date in accordance with the procedures set forth in Section 4 — “Withdrawal Rights.”

We estimate that the total amount of funds necessary to purchase all issued and outstanding Shares and other equity-based interests of TCS pursuant to the Offer and the Merger will be approximately $339.7 million. The Offer is not conditioned upon any financing arrangements. Comtech intends to finance the acquisition of Shares in the Offer and Merger with a combination of cash on hand and a loan facility in the amount of up to $400.0 million. See Section 12 — “Source and Amount of Funds.”
TCS Board Recommendation

The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and the transactions contemplated thereby (the TCS Special Committee”), has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.

Concurrently with the execution of the Merger Agreement, Comtech, Purchaser and each of Maurice B. Tosé, the Chairman, Chief Executive Officer and President of TCS, and Jon B. Kutler, a director of TCS, in their capacity as record and beneficial owners of Shares, as applicable, entered into Tender and Support Agreements (the “Tender and Support Agreements”). The outstanding Shares subject to the Tender and Support Agreements represented, as of December 4, 2015, approximately 12.8% of the total outstanding Shares. A summary of the terms of the Tender and Support Agreements are contained in Section 11 — “Tender and Support Agreements.”
Conditions

We are not obligated to purchase any tendered Shares unless, at the expiration of the Offer, there have been validly tendered in the Offer and not properly withdrawn that number of Shares (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such Shares are actually delivered in accordance with the terms of the Offer) which, together with any
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Shares then owned by Comtech or Purchaser or their respective subsidiaries (if any), would represent a majority of the issued and outstanding Shares entitled to vote on the matter (including the Shares we currently expect will be tendered pursuant to the Tender and Support Agreements). See Section 13 — “Conditions of the Offer.” We refer to this condition as the “Minimum Condition.” As of the date of this Offer to Purchase, Comtech, Purchaser and their respective subsidiaries own no Shares.

We are not obligated to purchase any tendered Shares unless two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016 (the “End Date”)) shall have passed after completion of a 19 consecutive business day marketing period (subject to certain blackout periods described in the Merger Agreement), which will commence no earlier than January 4, 2016 (but shall commence on January 4, 2016 assuming that, as of such date, Comtech has received all required information from TCS and such information is compliant), throughout which Comtech must have received certain financial information relating to TCS (the “Marketing Period”). See Section 13 — “Conditions of the Offer.”

We also are not obligated to purchase any tendered Shares unless the applicable waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, shall have expired or been terminated. We refer to this condition as the “Antitrust Condition.” See Section 15 — “Certain Legal Matters.”

The Offer is also subject to a number of other important conditions, including, among others: (i) no governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities shall have enacted, entered, promulgated or enforced any order (whether temporary, preliminary or permanent) or law which is in effect that prohibits, declares unlawful, enjoins or otherwise prevents the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement (the “Restraints Condition”); (ii) the representations and warranties of TCS set forth in the Merger Agreement being true and correct (as provided in the Merger Agreement), other than (subject to certain exceptions) such failures to be true and correct that would not, individually or in the aggregate, have or reasonably be expected to have a material adverse effect on TCS, including the absence of any material adverse effect on TCS; (iii) TCS having performed or complied with, in all material respects all obligations required to be performed by or complied with by it under the Merger Agreement; and (iv) that the Merger Agreement shall not have been terminated in accordance with its terms (the “Termination Condition”). Subject to applicable law, we can waive these conditions (other than the Minimum Condition, the Termination Condition, the Antitrust Condition and the Restraints Condition) without TCS’ consent. See Section 13 — “Conditions of the Offer.”

There is no financing condition to the Offer. We do not believe our financial condition is relevant to your decision whether to tender your Shares and accept the Offer because (i) the Offer is being made for all issued and outstanding Shares solely for cash, (ii) the Offer is not subject to any financing condition, and (iii) if we consummate the Offer, we will acquire all remaining Shares for the same cash price in the Merger.
Procedures for Tendering Shares
If you wish to accept the Offer and:

you are a record holder (i.e., a stock certificate or book entry has been issued to or entered for you and registered in your name), you must deliver the stock certificate(s) representing your Shares (or follow the procedures described in this Offer to Purchase for book-entry transfer), together with a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, and any other documents required by the Letter of Transmittal, to American Stock Transfer & Trust Company, LLC, the depository for the Offer (the “Depositary”). These materials must reach the Depositary before the Offer expires. You will not be obligated to pay brokerage fees
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or commissions or, subject to Instruction 6 of the Letter of Transmittal, transfer taxes on the purchase of your Shares by Purchaser. Detailed instructions are contained in the Letter of Transmittal and in Section 3 — “Procedures for Tendering Shares”;

you are a record holder, but your stock certificate or book entry is not available or you cannot deliver or transfer it to the Depositary before the Offer expires, you may be able to obtain three additional trading days to deliver or transfer your Shares by delivering the enclosed Notice of Guaranteed Delivery, properly completed and duly executed, to the Depositary before the Offer expires. See Section 3 — “Procedures for Tendering Shares” for more information; or

you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee (i.e., your Shares are held in “street name”), you should promptly contact your broker, dealer, commercial bank, trust company or other nominee and give instructions that your Shares be tendered. You should check with your broker, dealer, commercial bank, trust company or other nominee as to whether they charge any service fees or commissions.
Withdrawal Rights

You have the right to, and can, withdraw any Shares that you have previously tendered at any time until the Offer has expired. See Sections 1 and 4 — “Terms of the Offer” and “Withdrawal Rights.”

To withdraw Shares that you previously tendered, you must deliver a written notice of withdrawal with the required information to the Depositary at a time when you have the right to withdraw your Shares. If you tendered your Shares through your broker, dealer, commercial bank, trust company or other nominee, you must instruct the broker, dealer, commercial bank, trust company or other nominee to arrange for the withdrawal of your Shares. See Section 4 — “Withdrawal Rights.”

Once we accept your tendered Shares upon expiration of the Offer, you will no longer be able to withdraw them. See Sections 1 and 4 — “Terms of the Offer” and “Withdrawal Rights.”
Extension of the Offer

Upon the terms and subject to the conditions of the Offer, promptly following the Expiration Date, we will be required to accept for payment and pay for any Shares validly tendered and not properly withdrawn. Purchaser will (and Comtech will cause Purchaser to): (i) extend the Offer for successive periods of up to 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if any Offer Conditions (other than the Minimum Condition) have not been satisfied or have not been waived (provided that the Offer does not expire more than three business days following the end of the Marketing Period and such condition or conditions are capable of being satisfied on or before the End Date); (ii) extend the Offer for successive periods of 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if all of the Offer Conditions (other than the Minimum Condition) have been satisfied or have been waived (provided that the Offer does not expire more than three business days following the end of the Marketing Period and Purchaser will not be required to extend the Offer pursuant to this clause on more than two occasions but may do so in its sole and absolute discretion); and (iii) extend the Offer for the minimum period or periods required by law or applicable rules, regulations, interpretations or positions of the SEC or its staff or The NASDAQ Global Market (the “NASDAQ”). There can be no assurance that we will exercise our right to extend the Offer or that we will be required under the Merger Agreement to extend the Offer. During any extension of the initial offering period, all Shares previously tendered and not properly withdrawn will remain subject to the Offer, subject to any withdrawal rights. See Section 4 — “Withdrawal Rights.”
Dividends and Other Distributions

Under the terms of the Merger Agreement, TCS is not permitted to declare, set aside or pay any dividend or make any other distribution (whether in cash, stock, property or any combination thereof) in respect of any shares of its capital stock or other securities without the prior written consent of Comtech. See Section 14 — “Dividends and Other Distributions.
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Recent TCS Trading Prices; Subsequent Trading

On November 20, 2015, the trading day before the execution of the Merger Agreement, the closing price of the Shares reported on the NASDAQ was $4.39 per Share.

The Offer Price of  $5.00 per Share represents a premium of approximately 13.9% to TCS’ closing stock price on November 20, 2015, the last trading day prior to execution of the Merger Agreement, a premium of 28.6% as compared to the volume-weighted average trading price over the 90 trading days prior to the announcement of the transaction on November 23, 2015 and a premium of 35.1% as compared to the last closing trading price one day after TCS’ July 6, 2015 announcement that the TCS Board had formed the TCS Special Committee to explore strategic alternatives to enhance stockholder value.

On December 4, 2015, the last full trading day before Purchaser commenced the Offer, the closing price of the Shares reported on the NASDAQ was $4.95 per Share.

Immediately following closing of the Merger, the Shares will no longer meet the requirements for continued listing on the NASDAQ because the only stockholder will be Purchaser. The NASDAQ requires, among other things, that any listed shares of common stock have at least 400 total stockholders. Immediately following the consummation of the Merger we intend to cause the Surviving Corporation to delist the Shares from the NASDAQ.

We advise you to obtain a recent quotation for Shares in deciding whether to tender your Shares in the Offer. See Section 6 — “Price Range of Shares; Dividends.”
U.S. Federal Income Tax Treatment

If you are a “U.S. Holder” (as defined in Section 5 — “Material United States Federal Income Tax Consequences of the Offer and Merger”), your receipt of cash for Shares in the Offer or pursuant to the Merger will be a taxable transaction for U.S. federal income tax purposes. You will generally recognize gain or loss in an amount equal to the difference between (i) the cash you receive in the Offer or the Merger and (ii) your tax basis in the Shares you sell in the Offer or that are converted pursuant to the Merger. That gain or loss will be capital gain or loss if the Shares are capitals assets in your hands, and will be long-term capital gain or loss if the Shares have been held for more than one year at the time of the exchange of your Shares for cash. You are urged to consult your own tax advisor as to the particular tax consequences of the Offer and the Merger to you, including the tax consequences under state, local, foreign and other tax laws. See Section 5 — “Material United States Federal Income Tax Consequences of the Offer and the Merger.”
Further Information

For further information, you can call Innisfree M&A Incorporated, the Information Agent for the Offer, toll-free at (888) 750-5834 for stockholders or at (212) 750-5833 for banks and brokers. See the back cover page of this Offer to Purchase for additional contact information.
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To All Holders of Shares of Common Stock of
TeleCommunication Systems, Inc.:
INTRODUCTION
Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a direct, wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), hereby offers to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of  $5.00 per share, net to the seller in cash (the “Offer Price”), without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal (which, together with any amendments or supplements thereto, collectively constitute the “Offer”).
If your Shares are registered in your name and you tender directly to the Depositary (as defined below), you will not be obligated to pay brokerage fees or commissions or, subject to Instruction 6 of the Letter of Transmittal, transfer taxes on the purchase of your Shares by Purchaser. If you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee you should check with your broker, dealer, commercial bank, trust company or other nominee as to whether they charge any service fees or commissions. However, if you do not complete and sign the Form W-9 that is included in the Letter of Transmittal, or a Form W-8BEN, W-8BEN-E or other Form W-8, as applicable, you may be subject to a required federal income tax backup withholding of twenty-eight percent of the gross proceeds payable to you. Backup withholding is not an additional tax and any amounts withheld under the backup withholding rules may be refunded or credited against your U.S. federal income tax liability. In addition, payments made to holders of Class B Shares (“Class B Holders”) may be subject to “FIRPTA Withholding” (as explained below) of 10% of the gross proceeds payable to such holders. Class B Holders are urged to consult their own tax advisors as to the particular application of FIRPTA Withholding to their participation in the Offer or the Merger. See Section 5 — “Material United States Federal Income Tax Consequences of the Offer and the Merger.” Purchaser will pay all charges and expenses of American Stock Transfer & Trust Company, LLC (the “Depositary”) and Innisfree M&A Incorporated (the “Information Agent”).
Consummation of the Offer is conditioned upon (i) the satisfaction of the Minimum Condition (as described in this Offer to Purchase), (ii) the expiration or termination of the waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) (the “Antitrust Condition”), (iii) the absence of any law or order by any governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities that would prohibit, declare unlawful, enjoin or otherwise prevent the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement (the “Restraints Condition”), (iv) two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016 (the “End Date”)) having passed after completion of the Marketing Period (as described in this Offer to Purchase), and (v) other customary conditions as described in Section 13 — “Conditions of the Offer” (collectively, the “Offer Conditions”). There is no financing condition to the Offer.
The Minimum Condition requires that, prior to the expiration of the Offer, there be validly tendered and not properly withdrawn that number of Shares (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such shares are actually delivered in accordance with the terms of the Offer) which, together with any Shares then owned by Comtech or Purchaser or their respective subsidiaries (if any), would represent a majority of the issued and outstanding Shares entitled to vote on the matter. According to TCS, as of December 3, 2015, there were an aggregate of 62,783,838 Shares outstanding and entitled to vote, consisting of  (i) 57,982,593 shares of Class A common stock (the “Class A Shares”) outstanding, including 722,442 Class A Shares subject to forfeiture and other restrictions, and (ii) 4,801,245 shares of Class B common stock (the “Class B Shares”, together with the Class A Shares, the “Shares”) outstanding. Accordingly, based on the number of outstanding Shares, and assuming that no options or unearned Class A shares subject to forfeiture and other restrictions as of December 3, 2015 are exercised or vest, as applicable, the Minimum Condition would be satisfied if at least
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31,391,920 Shares are validly tendered in the Offer and not properly withdrawn (or at least 23,603,624 Class A Shares in addition to the 3,370,086 Class A Shares (which excludes Class A Shares subject to forfeiture or other restrictions, which will not be tendered in the Offer) and the 4,418,210 Class B Shares that we currently expect will be tendered pursuant to the Tender and Support Agreements (as defined below)). We occasionally refer to Shares accepted for purchase pursuant to the Offer as the “Accepted Shares.”
Purchaser and Comtech are not obligated to purchase any tendered Shares unless two business days (or such fewer number of business days that remain between the end of the Marketing Period and the End Date) shall have passed after completion of a 19 consecutive business day marketing period (subject to certain blackout periods described in the Merger Agreement), which will commence no earlier than January 4, 2016 (but shall commence on January 4, 2016 assuming that, as of such date, Comtech has received all required information from TCS and such information is compliant), throughout which Comtech must have received certain financial information relating to TCS (the “Marketing Period”). See Section 13 — “Conditions of the Offer.”
Purchaser and Comtech are not obligated to purchase any tendered Shares if the Merger Agreement is terminated in accordance with its terms (the “Termination Condition”).
The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of November 22, 2015, among Purchaser, TCS and Comtech (the “Merger Agreement”), under which, after the completion of the Offer and the satisfaction or waiver of certain limited conditions, Purchaser will be merged with and into TCS and TCS will be the surviving corporation (the “Surviving Corporation”) and a wholly owned subsidiary of Comtech (the “Merger”). At the effective time of the Merger (the “Effective Time”), each issued and outstanding Share (other than any Shares owned immediately prior to the Effective Time by Comtech or Purchaser, or by any subsidiary of Comtech, Purchaser or TCS (the “Excluded Shares”) will by virtue of the Merger, and without any action by the holder thereof, be converted automatically into the right to receive from Purchaser an amount in cash, without interest and subject to applicable withholding taxes, equal to the Offer Price (the “Merger Consideration”), payable to the holder thereof upon surrender of the certificate formerly representing, or book-entry transfer of, such Share. The Merger Agreement is more fully described in Section 11 — “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements.” Section 5 — “Material United States Federal Income Tax Consequences of the Offer and the Merger” describes the principal U.S. federal income tax consequences of the sale of Shares in the Offer and the Merger. We recommend that stockholders consult their tax advisors regarding the tax consequences of the sale of Shares in connection with the Offer or the Merger.
The Offer is only for Shares and not for options or shares subject to forfeiture or other restrictions. On the terms and subject to the conditions set forth in the Merger Agreement, any options to purchase Shares outstanding immediately prior to the Effective Time, by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, if any, without interest and less the amount of any withholding taxes, equal to the product of  (i) the number of Shares underlying such option and (ii) an amount equal to (x) the Offer Price less (y) the per share exercise price of such option. In addition, on the terms and subject to the conditions set forth in the Merger Agreement, each Share that is subject to forfeiture or other restrictions outstanding immediately prior to the Effective Time, by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, without interest and less the amount of any withholding taxes, equal to the product of  (i) the number of Shares underlying such restricted share and (ii) the Offer Price; provided that any payments in respect of such restricted shares to which a former holder thereof may be eligible to receive will be earned subject to the same vesting schedule and other vesting terms and conditions which applied to such restricted shares prior to the Effective Time, and such payment shall become payable on the date or dates that such restricted shares would have become vested under the vesting schedule in place immediately prior to the Effective Time.
The Offer and withdrawal rights will expire at 12:00 midnight, New York City time, at the end of the day on Tuesday, January 5, 2016, unless the Offer is extended. See Sections 1, 13 and 15 — “Terms of the Offer,” “Conditions of the Offer” and “Certain Legal Matters.”
The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and
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the transactions contemplated thereby (the “TCS Special Committee”), has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.
For factors considered by the TCS Board, see TCS’ Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”) filed with the Securities and Exchange Commission (the “SEC”) in connection with the Offer, a copy of which (without certain exhibits) is being furnished to TCS stockholders concurrently herewith.
If, following the acceptance for purchase of Shares by Purchaser pursuant to the Offer or otherwise, we own (or will own upon the purchase of the Accepted Shares) at least a majority of the total number of issued and outstanding Shares entitled to vote on the matter, we will be able to effect the Merger pursuant to Section 3-106.1 of the Maryland General Corporation Law (the “MGCL”) without a vote of TCS’ stockholders.
No dissenters’ or appraisal rights or rights of an objecting stockholder (under Section 3.201 et seq. of the MGCL or otherwise) will be available with respect to the Merger or the other transactions contemplated thereby. See Section 15 — “Certain Legal Matters — Appraisal Rights.”
This Offer to Purchase and the related Letter of Transmittal, and the Schedule 14D-9, contain important information and each such document should be read carefully and in its entirety before you make any decision with respect to the Offer.
THE TENDER OFFER
1.
Terms of the Offer
Upon the terms and subject to the prior satisfaction or waiver of the Offer Conditions (including, if the Offer is extended or amended, the terms and conditions of any extension or amendment), we will accept for payment and pay for all Shares validly tendered in accordance with the procedures set forth in Section 3 — “Procedures for Tendering Shares” and not properly withdrawn prior to the Expiration Date in accordance with the procedures set forth in Section 4 — “Withdrawal Rights.” The term “Expiration Date” means 12:00 midnight, New York City time, at the end of the day on Tuesday, January 5, 2016, unless Purchaser has extended the Offer, in which event the term “Expiration Date” shall mean the latest time and date at which the Offer, as so extended by Purchaser, will expire.
The Offer is conditioned upon the satisfaction of the Minimum Condition, the Antitrust Condition and the other conditions described in Section 13 — “Conditions of the Offer.” Purchaser may terminate the Offer without purchasing any Shares if certain events described in Section 13 occur.
We expressly reserve the right (but are not obligated), at any time or from time to time, to waive or otherwise modify or amend the terms and conditions of the Offer in any respect. However, we have agreed in the Merger Agreement that we will not, without the prior written consent of TCS, (i) waive the Minimum Condition, the Termination Condition, the Antitrust Condition or the Restraints Condition, (ii) change the form of consideration payable in the Offer, (iii) decrease the Offer Price or change the number of Shares sought in the Offer, other than as required by the Merger Agreement, (iv) extend the expiration of the Offer, except as required or permitted by the Merger Agreement, (v) add any condition to the Offer other than those set forth in the Merger Agreement, (vi) amend or modify the Offer Conditions described in Section 13 — “Conditions of the Offer,” or (vii) modify, supplement or amend any other term or condition of the Offer in a manner adverse to the holders of Shares.
Upon the terms and subject to the conditions of the Offer, promptly following the Expiration Date, we will be required to accept for payment and pay for any Shares validly tendered and not properly withdrawn. Purchaser will (and Comtech will cause Purchaser to): (i) extend the Offer for successive periods of up to 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if any Offer Conditions (other than the Minimum Condition) have not been satisfied or have not been waived (provided that the Offer does not expire more
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than three business days following the end of the Marketing Period and such condition or conditions are capable of being satisfied on or before the End Date); (ii) extend the Offer for successive periods of 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if all of the Offer Conditions (other than the Minimum Condition) have been satisfied or have been waived (provided that the Offer does not expire more than three business days following the end of the Marketing Period and Purchaser will not be required to extend the Offer pursuant to this clause on more than two occasions but may do so in its sole and absolute discretion); and (iii) extend the Offer for the minimum period or periods required by applicable law or rules, regulations, interpretations or positions of the SEC or its staff or The NASDAQ Global Market (the “NASDAQ”). There can be no assurance that we will exercise our right to extend the Offer or that we will be required under the Merger Agreement to extend the Offer. During any extension of the initial offering period, all Shares previously tendered and not properly withdrawn will remain subject to the Offer, subject to any withdrawal rights. See Section 4 — “Withdrawal Rights.”
Purchaser expressly reserves the right to make any changes in the terms or conditions to the Offer; provided, however, unless previously approved by TCS in writing, Comtech and Purchaser may not provide for a “subsequent offering period” (within the meaning of Rule 14d-11 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).
If we make a material change in the terms of the Offer or the information concerning the Offer, or if we waive a material condition of the Offer, we will disseminate additional tender offer materials and extend the Offer if and to the extent required by Rules 14d-4(d), 14d-6(c) and l4e-1(d) under the Exchange Act, or otherwise. The minimum period during which a tender offer must remain open following material changes in the terms of the tender offer or the information concerning the tender offer, other than a change in the consideration offered or a change in the percentage of securities sought, will depend upon the facts and circumstances, including the relative materiality of such changes. With respect to a change in the consideration offered or a change in the percentage of securities sought, a tender offer generally must remain open for at least 10 business days following such change.
We expressly reserve the right, in our sole discretion, subject to the terms and conditions of the Merger Agreement and the applicable rules and regulations of the SEC, to not accept for payment or pay for any Shares if, at the expiration of the Offer, any of the Offer Conditions have not been satisfied. Under certain circumstances, we may terminate the Merger Agreement and the Offer.
Any extension or amendment of the Offer, waiver of a condition of the Offer, delay in acceptance for payment or payment, or termination of the Offer will be followed promptly by public announcement thereof, such announcement in the case of an extension to be issued not later than 9:00 a.m., New York City time, on the next business day after the previously scheduled Expiration Date in accordance with the public announcement requirements of Rules 14d-4(d), 14d-6(c) and l4e-1(d) under the Exchange Act.
Without limiting our obligation under such rules or the manner in which we may choose to make any public announcement, we currently intend to make announcements by issuing a press release to the Dow Jones News Service (or such other national media outlet or outlets as we deem prudent) and by making any appropriate filing with the SEC.
TCS has agreed to provide us with its list of stockholders and security position listings, in each case as of the most recent practicable date, and will provide us with such additional information and such other assistance for the purpose of disseminating the Offer to holders of Shares. This Offer to Purchase and the related Letter of Transmittal and other related documents will be mailed to record holders of Shares whose names appear on TCS’ stockholder list and will be furnished to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing, for subsequent transmittal to beneficial owners of Shares.
For purposes of this Offer to Purchase, “business day” means any day other than a Saturday, Sunday or a federal holiday determined under Rule 14d-1(g)(3) promulgated under the Exchange Act and consists of the time period from 12:01 a.m. through 12:00 midnight, New York City time.
2.
Acceptance for Payment and Payment for Shares
Upon the terms and subject to the conditions of the Offer (including, if the Offer is extended or amended in accordance with the terms of the Merger Agreement, the terms and conditions of any such
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extension or amendment), Purchaser will accept for payment, and will pay for, all Shares validly tendered and not properly withdrawn prior to the Expiration Date promptly after the later of  (i) the Expiration Date and (ii) the satisfaction or waiver of the Offer Conditions set forth in Section 13 — “Conditions of the Offer.”
In all cases, payment for any Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of (i) certificates representing such Shares, an indication in the Letter of Transmittal of the tender of Direct Registration Book-Entry Shares (as defined in Section 3 below) or confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth in Section 3 — “Procedures for Tendering Shares,” (ii) a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in Section 3 below) in lieu of the Letter of Transmittal), and (c) any other documents required by the Letter of Transmittal. See Section 3 — “Procedures for Tendering Shares.”
For purposes of the Offer, Purchaser will be deemed to have accepted for payment and thereby purchased Shares validly tendered and not properly withdrawn prior to the Expiration Date if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for purposes of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.
If any tendered Shares are not accepted for payment pursuant to the terms and conditions of the Offer for any reason, including if certificates are submitted for more Shares than are tendered, such Shares will be returned or credited to the appropriate account, as applicable. Such unpurchased Shares will be returned or credited (or new certificates for the Shares not tendered will be sent), without expense to the tendering stockholder promptly following expiration or termination of the Offer. In the case of Shares tendered by book-entry transfer into the Depositary’s account at DTC pursuant to the procedures set forth in Section 3 — “Procedures for Tendering Shares,” such Shares will be credited to an account maintained by DTC.
If, prior to the Expiration Date, Purchaser shall increase the consideration offered to holders of Shares pursuant to the Offer, such increased consideration will be paid to holders of all Shares that are purchased pursuant to the Offer, whether or not such Shares were tendered prior to such increase in consideration.
3.
Procedures for Tendering Shares
Valid Tender of Shares.   Except as set forth below, in order for you to validly tender Shares in the Offer, (i) a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed in accordance with the instructions of the Letter of Transmittal, with any required signature guarantees, or an Agent’s Message (as defined below) in connection with a book-entry delivery of Shares through DTC, and any other documents required by the Letter of Transmittal, must be received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Expiration Date and either (a) certificates representing Shares tendered must be delivered to the Depositary, (b) the Letter of Transmittal must indicate the tender of Direct Registration Book-Entry Shares or (c) tendered Shares must be properly delivered pursuant to the procedures for book-entry transfer described below and a confirmation of such delivery received by the Depositary (which confirmation must include an Agent’s Message if the tendering stockholder has not delivered a Letter of Transmittal), in each case, prior to the Expiration Date, or (ii) you must comply with the guaranteed delivery procedures set forth below. The term “Agent’s Message” means a message, transmitted by DTC to, and received by, the Depositary and forming a part of a Book-Entry Confirmation (as defined below), which states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares that are the subject of such Book-Entry Confirmation that such participant has received and agrees to be bound by the terms of the Letter of Transmittal and that Purchaser may enforce such agreement against the participant.
Direct Registration Account.   If you hold your Shares in a direct registration account maintained by TCS’ transfer agent (such shares, “Direct Registration Book-Entry Shares”), in order to validly tender your
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Direct Registration Book-Entry Shares, you must deliver the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees and any other required documents to the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase by the Expiration Date, or you must comply with the guaranteed delivery procedures described below.
Book-Entry Transfer.   The Depositary will establish an account with respect to the Shares at DTC for purposes of the Offer. Any financial institution that is a participant in DTC’s systems may make a book-entry transfer of Shares by causing DTC to transfer such Shares into the Depositary’s account in accordance with DTC’s procedures for such transfer. Delivery of documents to DTC in accordance with DTC’s procedures does not constitute delivery to the Depositary. Although delivery of Shares may be effected through book-entry transfer, either the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees, or an Agent’s Message in lieu of the Letter of Transmittal, and any other required documents, must, in any case, be transmitted to and received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Expiration Date, or the tendering stockholder must comply with the guaranteed delivery procedures described below. The confirmation of a book-entry transfer of Shares into the Depositary’s account at DTC as described above is referred to herein as a “Book-Entry Confirmation.”
Signature Guarantees and Stock Powers.   Except as otherwise provided below, all signatures on a Letter of Transmittal must be guaranteed by a financial institution (which term includes most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of a recognized Medallion Program approved by The Securities Transfer Association, Inc., including the Security Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program and the Stock Exchanges Medallion Program (each, an “Eligible Institution”). Signatures on a Letter of Transmittal need not be guaranteed (i) if the Letter of Transmittal is signed by the registered owner(s) (which term, for purposes of this section, includes any participant in any of DTC’s systems whose name appears on a security position listing as the owner of the Shares) of Shares tendered therewith and such registered owner has not completed the box entitled “Special Payment Instructions” or the box entitled “Special Delivery Instructions” on the Letter of Transmittal or (ii) if such Shares are tendered for the account of an Eligible Institution. See Instructions 1 and 5 of the Letter of Transmittal. If the certificates for Shares are registered in the name of a person other than the signer of the Letter of Transmittal, or if payment is to be made or certificates for Shares not tendered or not accepted for payment are to be returned to a person other than the registered owner of the certificates surrendered, then the tendered certificates must be endorsed or accompanied by appropriate stock powers, in either case, signed exactly as the name or names of the registered owner(s) or holder(s) appear on the certificates, with the signatures on the certificates or stock powers guaranteed as described above. See Instructions 1 and 5 of the Letter of Transmittal.
If certificates representing Shares are forwarded separately to the Depositary, a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, must accompany each delivery of certificates.
Guaranteed Delivery.   A stockholder who desires to tender Shares pursuant to the Offer and whose certificates for Shares are not immediately available, or who cannot comply with the procedures for book-entry transfer on a timely basis, or who cannot deliver all required documents to the Depositary prior to the Expiration Date, may tender such Shares by satisfying all of the requirements set forth below:

a properly completed and duly executed Notice of Guaranteed Delivery, in the form provided by Purchaser, is received by the Depositary (as provided below) prior to the Expiration Date; and

the certificates for all tendered Shares, in proper form for transfer (or a Book-Entry Confirmation or indication in the Letter of Transmittal of the tender of Direct Registration Book-Entry Shares with respect to all such Shares), together with a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal), and any other required documents, are received by the Depositary within three trading days after the date of execution of such Notice of Guaranteed Delivery. A “trading day” is any day on which the NASDAQ is open for business.
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The Notice of Guaranteed Delivery may be delivered by hand or transmitted by facsimile transmission or mail to the Depositary and must include a guarantee by an Eligible Institution in the form set forth in such Notice of Guaranteed Delivery. For purposes of the Merger Agreement and the Offer, unless otherwise mutually agreed to by TCS and Purchaser, any Shares subject to Notices of Guaranteed Delivery will be deemed not to be validly tendered into the Offer unless and until the Shares underlying such Notices of Guaranteed Delivery are actually delivered in accordance with the terms of the Offer.
The method of delivery of Shares, the Letter of Transmittal, the Notice of Guaranteed Delivery and all other required documents, including delivery through DTC, is at the election and sole risk of the tendering stockholder. Delivery of all such documents will be deemed made only when actually received by the Depositary (including, in the case of a book-entry transfer, by Book-Entry Confirmation). If such delivery is by mail, we recommend that all such documents be sent by properly insured registered mail with return receipt requested. In all cases, sufficient time should be allowed to ensure timely delivery.
Other Requirements.   Notwithstanding any provision hereof, Purchaser will pay for Shares pursuant to the Offer only after timely receipt by the Depositary of (i) certificates for (or a timely Book-Entry Confirmation with respect to) such Shares (including those tendered pursuant to the guaranteed delivery procedures described above), (ii) a Letter of Transmittal (or a manually signed photocopy thereof), properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal), and (iii) any other documents required by the Letter of Transmittal. In addition, if the Shares to be tendered are Direct Registration Book-Entry Shares, the Letter of Transmittal must indicate that such Shares are Direct Registration Book-Entry Shares. Accordingly, tendering stockholders may be paid at different times depending upon when certificates for Shares, Letters of Transmittal or Book-Entry Confirmations with respect to Shares are actually received by the Depositary. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.
Binding Agreement.   The acceptance for payment by Purchaser of Shares tendered pursuant to one of the procedures described above will constitute a binding agreement between the tendering stockholder and Purchaser upon the terms and subject to the conditions of the Offer.
Appointment as Proxy.   By executing and delivering a Letter of Transmittal as set forth above (or, in the case of a book-entry transfer through DTC, by delivering an Agent’s Message in lieu of a Letter of Transmittal), the tendering stockholder irrevocably appoints designees of Purchaser as such stockholder’s attorneys-in-fact and proxies, each with full power of substitution, to the full extent of such stockholder’s rights with respect to the Shares tendered by such stockholder and accepted for payment by Purchaser and with respect to any and all other Shares or other securities issued or issuable in respect of such Shares on or after the date of the Merger Agreement. All such proxies and powers of attorney will be considered coupled with an interest in the tendered Shares. Such appointment is effective when, and only to the extent that, Purchaser accepts for payment Shares tendered by such stockholder as provided herein. Upon the effectiveness of such appointment, all prior powers of attorney, proxies and consents given by such stockholder with respect to such dividends, distributions, rights, Shares and other securities will, without further action, be revoked, and no subsequent powers of attorney, proxies or consents may be given (and, if given, will not be deemed effective). Purchaser’s designees will, with respect to the Shares or other securities and rights for which the appointment is effective, be empowered to exercise all voting and other rights of such stockholder as they, in their sole discretion, may deem proper at any annual, special, adjourned or postponed meeting of the stockholders of TCS, by written consent in lieu of any such meeting or otherwise. Purchaser reserves the right to require that, in order for Shares to be deemed validly tendered, immediately upon Purchaser’s payment for such Shares, Purchaser must be able to exercise full voting, consent and other rights to the extent permitted under applicable law with respect to such Shares and other securities, including voting at any meeting of stockholders or executing a written consent concerning any matter. The Offer does not constitute a solicitation of proxies, absent a purchase of Shares as provided herein, for any meeting of the stockholders of TCS.
Determination of Validity.   All questions as to the validity, form, eligibility (including time of receipt) and acceptance of any tender of Shares will be determined by Purchaser in its sole and absolute discretion, which determination shall be final and binding on all parties, subject to the right of any such party to
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dispute such determination in a court of competent jurisdiction. Purchaser reserves the absolute right to reject any and all tenders determined by it not to be in proper form or the acceptance for payment of or payment for which may, in the opinion of Purchaser, be unlawful. Purchaser also reserves the absolute right to waive any defect or irregularity in the tender of any Shares of any particular stockholder whether or not similar defects or irregularities are waived in the case of any other stockholder. No tender of Shares will be deemed to have been validly made until all defects and irregularities relating thereto have been cured or waived. None of Comtech, Purchaser, the Depositary, the Information Agent or any of their respective affiliates or assigns, or any other person will be under any duty to give notification of any defects or irregularities in tenders or incur any liability for failure to give any such notification. Purchaser’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the Instructions thereto and any other documents related to the Offer) shall be final and binding on all parties, subject to the right of any such party to dispute such interpretation in a court of competent jurisdiction.
4.
Withdrawal Rights
A stockholder may withdraw Shares tendered pursuant to the Offer at any time on or prior to the Expiration Date, as described in this Section 4. This right to withdraw will not, however, apply to Shares tendered in any subsequent offering period, if one is provided.
If we extend the Offer, are delayed in our acceptance for payment of or payment (whether before or after our acceptance for payment for Shares) for Shares or are unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer and the Merger Agreement, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that tendering stockholders are entitled to withdrawal rights as described herein. However, our ability to delay the payment for Shares that we have accepted for payment is limited by Rule 14e-1(c) under the Exchange Act, which requires us to promptly pay the consideration offered or return the Shares deposited by or on behalf of stockholders promptly after the termination or withdrawal of the Offer.
For a withdrawal of Shares to be effective, a written notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase. Any notice of withdrawal must specify the name of the person having tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the record holder of the Shares to be withdrawn, if different from that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as discussed above), unless such Shares have been tendered for the account of any Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as set forth in Section 3 — “Procedures for Tendering Shares,” any notice of withdrawal must specify the name and number of the account to be credited with the withdrawn Shares. If certificates representing the Shares have been delivered or otherwise identified to the Depositary, the name of the registered owner and the serial numbers shown on such certificates must also be furnished to the Depositary prior to the physical release of such certificates.
No withdrawal rights will apply to Shares tendered during a subsequent offering period, if one is provided, and no withdrawal rights will apply during any subsequent offering period with respect to Shares tendered in the Offer and accepted for payment.
All questions as to the form and validity (including time of receipt) of any notice of withdrawal will be determined by Purchaser, in its sole and absolute discretion, which determination shall be final and binding on all parties, subject to the right of any such party to dispute such determination in a court of competent jurisdiction. No withdrawal of Shares shall be deemed to have been properly made until all defects and irregularities have been cured or waived. None of Comtech, Purchaser, the Depositary, the Information Agent or any of their respective affiliates or assigns or any other person will be under any duty to give notification of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give such notification. Withdrawals of tenders of Shares may not be rescinded, and any Shares properly withdrawn will be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be retendered by following one of the procedures for tendering Shares described in Section 3 — “Procedures for Tendering Shares” at any time prior to the Expiration Date.
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5.
Material United States Federal Income Tax Consequences of the Offer and the Merger
The following is a summary of the material U.S. federal income tax consequences of the Offer and the Merger to holders whose Shares are purchased pursuant to the Offer or whose Shares are converted into the right to receive cash in the Merger. This summary is based on the Internal Revenue Code of 1986, as amended (the “Code”), applicable Treasury Regulations and administrative and judicial interpretations thereunder, each as in effect as of the date hereof, all of which may change, possibly with retroactive effect. This summary is not a comprehensive description of all U.S. federal income tax considerations that may be relevant to the Offer and the Merger. The U.S. federal income tax consequences set forth below are based on current law. Because individual circumstances may differ, each holder should consult such holder’s own tax advisor to determine the applicability of the rules discussed below to such holder and the particular tax effects of the Offer and the Merger to such holder, including the application and effect of U.S. federal estate and gift, state, local and other tax laws.
The discussion applies only to holders that hold their Shares as capital assets, and may not apply to Shares received pursuant to the exercise of stock options, vesting of other equity awards or otherwise as compensation, Shares held as part of a “straddle,” “hedge,” “conversion transaction,” constructive sale or other integrated transaction, holders that purchase or sell Shares as part of a wash sale for tax purposes, holders in special tax situations (such as dealers in securities or currencies, traders in securities that elect to use a mark-to-market method of accounting for their securities holdings, financial institutions, regulated investment companies, real estate investment trusts, insurance companies, tax-exempt organizations, U.S. expatriates, “controlled foreign corporations” or “passive foreign investment companies”), or United States Holders (as defined below) whose functional currency is not the U.S. dollar. This discussion does not address any aspect of the alternative minimum tax, the Medicare tax on net investment income, the U.S. federal gift or estate tax, or state, local or foreign taxation.
If a partnership (or any other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds Shares, the tax treatment of a partner in the partnership generally will depend on the status of the partner, the tax activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships that hold Shares and partners in such partnerships should consult their tax advisors with regard to the U.S. federal income tax consequences of tendering or exchanging Shares pursuant to the Offer or the Merger.
United States Holders
For purposes of this discussion, the term “United States Holder” means a beneficial owner of Shares that is, for U.S. federal income tax purposes:

a citizen or individual resident of the United States;

a corporation (or any other entity treated as a corporation for these purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

an estate whose income is subject to U.S. federal income taxation regardless of its source; or

a trust if  (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust or (ii) the trust has validly elected to be treated as a “United States person” under applicable Treasury Regulations.
The receipt of cash for Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. In general, a United States Holder will recognize gain or loss in an amount equal to the difference between such United States Holder’s tax basis in such Shares sold pursuant to the Offer or converted into the right to receive cash in the Merger and the amount of cash received therefor. Gain or loss must be determined separately for each block of Shares (i.e., Shares acquired at the same cost in a single transaction) sold pursuant to the Offer or converted into the right to receive cash in the Merger. Such gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if, on the date of sale (or, if applicable, the date of the Merger), such Shares have been held for more than one year. Long-term capital gains recognized by an individual generally will be taxed at preferential rates. Capital losses may be subject to limits on deductibility.
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Non-United States Holders
For purposes of this discussion, the term “Non-United States Holder” means a beneficial owner of Shares that is neither a United States Holder nor a partnership (or any other entity or arrangement treated as a partnership for U.S. federal income tax purposes). In general, a Non-United States Holder will not be subject to U.S. federal income tax on gain recognized on Shares sold pursuant to the Offer or converted into the right to receive cash in the Merger unless:

the gain is effectively connected with the Non-United States Holder’s conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, is attributable to the Non-United States Holder’s permanent establishment in the United States), in which event (i) the Non-United States Holder will be subject to U.S. federal income tax in the same manner as if it were a United States Holder (but such Non-United States Holder should provide an IRS Form W-8ECI instead of an IRS Form W-9), and (ii) if the Non-United States Holder is a corporation, it may also be subject to a branch profits tax at a rate of 30% (or such lower rate as may be specified under an applicable income tax treaty);

the Non-United States Holder is an individual present in the United States for 183 or more days in the taxable year of the sale and certain other conditions exist, in which event the Non-United States Holder will be subject to tax at a rate of 30% (or such lower rate as may be specified under an applicable income tax treaty) on the gain from the exchange of Shares, net of applicable U.S. source losses from sales or exchanges of other capital assets recognized during the year; or

TCS is or has been a United States real property holding corporation for U.S. federal income tax purposes and the Non-United States Holder held, directly or indirectly, at any time during the shorter of   (i) the five-year period ending on the date of sale (or, if applicable, the date of the Merger) and (ii) the period during which the Non-United States Holder held such Shares, more than 5% of the Shares and such holder is not eligible for any treaty exemption.
Information Reporting and Backup Withholding
Payments made to a noncorporate United States Holder in connection with the Offer or the Merger generally will be subject to information reporting and may be subject to “backup withholding.” Backup withholding generally applies if a United States Holder (i) fails to provide an accurate taxpayer identification number or (ii) in certain circumstances, fails to comply with applicable certification requirements. A Non-United States Holder generally will be exempt from information reporting and backup withholding if it certifies on an IRS Form W-8BEN or W-8BEN-E that it is not a U.S. person, or otherwise establishes an exemption in a manner satisfactory to the Depositary.
Backup withholding is not an additional tax and may be refunded by the Internal Revenue Service to the extent it results in an overpayment of tax. Certain persons generally are entitled to exemption from information reporting and backup withholding, including corporations. Certain penalties apply for failure to provide correct information and for failure to include reportable payments in income. Each holder should consult with his or her own tax advisor as to his or her qualification for exemption from backup withholding and the procedure for obtaining such exemption. Tendering United States Holders may be able to prevent backup withholding by completing the IRS Form W-9 that is included in the Letter of Transmittal or, in the case of Non-United States Holders, an IRS Form W-8BEN, W-8BEN-E or other applicable IRS Form W-8.
FIRPTA Withholding on Class B Holders
Payments made to Class B Holders may be subject to withholding of 10% of the gross proceeds payable to such holders pursuant to Section 1445 of the Code (such withholding, commonly referred to as “FIRPTA Withholding”). In order to avoid the imposition of FIRPTA Withholding, Class B Holders may be required to provide properly completed and executed certificates of their non-foreign status in a form that complies with Treasury Regulations Section 1.1445-2(b)(2), or otherwise confirm in an appropriate manner that FIRPTA Withholding is not applicable. See Instruction 12 of the Letter of Transmittal for detailed instructions. Class B Holders are urged to consult their own tax advisors as to the particular consequences of FIRPTA Withholding to their participation in the Offer or the Merger.
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6.
Price Range of Shares; Dividends
According to TCS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (the “Form 10-K”), the Shares are traded on the NASDAQ under the symbol “TSYS.” The following table sets forth, for the periods indicated, the high and low prices per Share on the NASDAQ as reported in the Form 10-K with respect to periods through December 31, 2014 and as reported by published financial sources for periods starting January 1, 2015.
Fiscal Year
High
Low
2013:
First Quarter
$ 2.65 $ 2.11
Second Quarter
$ 2.42 $ 1.82
Third Quarter
$ 3.21 $ 2.31
Fourth Quarter
$ 2.59 $ 2.10
2014:
First Quarter
$ 2.50 $ 2.08
Second Quarter
$ 3.47 $ 2.16
Third Quarter
$ 3.59 $ 2.75
Fourth Quarter
$ 3.26 $ 2.72
2015:
First Quarter
$ 2.79 $ 3.94
Second Quarter
$ 3.03 $ 3.86
Third Quarter
$ 3.20 $ 4.24
Fourth Quarter (through December 4, 2015)
$ 4.96 $ 3.41
On November 20, 2015, the last full trading day prior to the execution of the Merger Agreement, the reported closing sales price per Share on the NASDAQ was $4.39 per Share. On December 4, 2015, the last full trading day prior to the commencement of the Offer, the reported closing sales price per Share on the NASDAQ was $4.95 per Share. Stockholders are urged to obtain a current market quotation for the Shares.
Purchaser has been advised that TCS has never declared or paid any cash dividends. Under the terms of the Merger Agreement, TCS is not permitted to declare, set aside or pay any dividend or make any distribution (whether in cash, stock, property or any combination thereof) in respect of any shares of its capital stock or other securities without the prior written consent of Comtech. See Section 14 — “Dividends and Other Distributions.”
7.
Possible Effects of the Offer; NASDAQ Listing; Exchange Act Registration
Market for the Shares.   If the Offer is successful, there will be no market for the Shares because Purchaser intends to consummate the Merger as soon as practicable following closing of the Offer.
Stock Quotation.   The Shares are currently listed on the NASDAQ. Immediately following closing of the Merger, the Shares will no longer meet the requirements for continued listing on the NASDAQ because the only stockholder will be Comtech. The NASDAQ requires, among other things, that any listed shares of common stock have at least 400 total stockholders. Immediately following the consummation of the Merger we intend to cause the surviving corporation to delist the Shares from the NASDAQ.
Exchange Act Registration.   The Shares are currently registered under the Exchange Act. Such registration may be terminated upon application of TCS to the SEC if the Shares are neither listed on a national securities exchange nor held by 300 or more holders of record. Termination of registration of the Shares under the Exchange Act would substantially reduce the information required to be furnished by TCS to its stockholders and to the SEC and would make certain provisions of the Exchange Act no longer applicable to TCS, such as the short-swing profit recovery provisions of Section 16(b) of the Exchange Act, the requirement of furnishing a proxy statement pursuant to Section 14(a) of the Exchange Act in
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connection with stockholders’ meetings and the related requirement of furnishing an annual report to stockholders and the requirements of Rule 13e-3 under the Exchange Act with respect to “going private” transactions. Furthermore, the ability of   “affiliates” of TCS and persons holding “restricted securities” of TCS to dispose of such securities pursuant to Rule 144 promulgated under the Securities Act of 1933, as amended, may be impaired or eliminated. We intend to cause TCS to terminate the registration of the Shares under the Exchange Act as soon after consummation of the Offer as the requirements for termination of registration are met. If the registration of the Shares is not terminated prior to the Merger, the registration of the Shares under the Exchange Act will be terminated following the consummation of the Merger.
8.
Certain Information Concerning TCS
The following description of TCS and its business has been taken from the Form 10-K and is qualified in its entirety by reference to such report.
TCS.   TCS is a Maryland corporation with principal executive offices located at 275 West Street, Annapolis, Maryland 21401. TCS’ telephone number at such address is (410) 263-7616.
TCS develops and delivers highly reliable and secure wireless communication technology, the development of which has led to ownership of 388 patents and about 300 patent applications as of December 31, 2014. TCS delivers cellular network computing services that include public safety solutions for 9-1-1 call delivery, precision location platforms, and applications that include navigation, locator applications and text messaging, as well as secure wireless communications systems and professional services, including cybersecurity operations and training. Customers use TCS’ “mobile cloud” software functionality through connections to and from network operations centers, paying TCS monthly fees based on the number of subscribers, cell sites, call center circuit, or other metrics. TCS conducts business with the U.S. federal government as a prime contractor under major technology contract vehicles, as well as state, local and foreign government entities. In addition to incorporation of TCS’ inventions in its deliverables, TCS monetizes its intellectual property portfolio via patent sales and licensing.
Available Information.   TCS is subject to the information and reporting requirements of the Exchange Act and in accordance therewith is obligated to file reports and other information with the SEC relating to its business, financial condition and other matters. Certain information, as of particular dates, concerning TCS’ business, capital structure, operating results, financial condition, directors and officers (including their remuneration and stock options, and restricted stock granted to them), the principal holders of TCS securities, any material interests of such persons in transactions with TCS, and other matters is required to be disclosed in proxy statements and periodic reports distributed to TCS stockholders and filed with the SEC. Such reports, proxy statements and other information should be available for inspection at the public reference room at the SEC’s office at 100 F Street, NE, Washington, DC 20549. Copies may be obtained by mail, upon payment of the SEC’s customary charges, by writing to its principal office at 100 F Street, NE, Washington, DC 20549. Further information on the operation of the SEC’s Public Reference Room in Washington, DC can be obtained by calling the SEC at 1 (800) SEC-0330. The SEC also maintains an Internet web site that contains reports, proxy statements and other information about issuers, such as TCS, who file electronically with the SEC. The address of that site is http://www.sec.gov.
Sources of Information.   Except as otherwise set forth herein, the information concerning TCS contained in this Offer to Purchase has been based upon publicly available documents and records on file with the SEC, including the Form 10-K, and other public sources. The information concerning TCS taken or derived from such documents and records is qualified in its entirety by reference to TCS’ public filings with the SEC (which may be obtained and inspected as described above) and should be considered in conjunction with the more comprehensive financial and other information in such reports and other publicly available information. Although we have no knowledge that any such information contains any material misstatements or omissions, none of Comtech, Purchaser, the Information Agent, the Depositary or any of their respective affiliates or assigns assumes responsibility for the accuracy or completeness of the information concerning TCS contained in such documents and records or for any failure by TCS to disclose events which may have occurred or may affect the significance or accuracy of any such information.
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9.
Certain Information Concerning Purchaser and Comtech
Purchaser.   Purchaser is a Maryland corporation and, to date, has engaged in no activities other than those incident to its formation and to the Offer and the Merger. Purchaser is a direct, wholly owned subsidiary of Comtech. The principal executive offices of Purchaser are located at 68 South Service Road, Suite 230, Melville, New York 11747 and Purchaser’s telephone number at such principal executive offices is (631) 962-7000.
Comtech.   Comtech is a Delaware corporation. Its shares are listed on the NASDAQ under the symbol “CMTL”. Comtech designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. Comtech conducts its business through three complementary segments: telecommunications transmission; RF microwave amplifiers; and mobile data communications. Comtech sells its products to a diverse customer base in the global commercial and government communications markets. Comtech believes it is a leader in most of the market segments that it serves. The principal executive offices of Comtech are located at 68 South Service Road, Suite 230, Melville, New York 11747 and Comtech’s telephone number at such principal executive offices is (631) 962-7000.
Additional Information.   The name, business address, citizenship, present principal occupation and employment history for the past five years of each of the members of the board of directors and the executive officers of Comtech and the members of the board of directors and the executive officers of Purchaser are set forth in Schedule A to this Offer to Purchase.
None of Comtech, Purchaser or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons listed in Schedule A, has during the last five years (i) been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) been a party to any judicial or administrative proceeding (except for matters that were dismissed without sanction or settlement) that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, U.S. federal or state securities laws or a finding of any violation of U.S. federal or state securities laws.
Except as set forth elsewhere in this Offer to Purchase: (i) none of Comtech, Purchaser or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons listed in Schedule A or any associate or majority-owned subsidiary of Comtech, Purchaser or any of the persons so listed, beneficially owns or has a right to acquire any Shares or any other equity securities of TCS, (ii) none of Comtech, Purchaser or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons referred to in clause (i) above or any of their executive officers, directors, affiliates or subsidiaries has effected any transaction in Shares or any other equity securities of TCS during the past 60 days, (iii) none of Comtech, Purchaser, their subsidiaries or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons listed in Schedule A, has any agreement, arrangement, or understanding, whether or not legally enforceable, with any other person with respect to any securities of TCS (including, but not limited to, any agreement, arrangement, or understanding concerning the transfer or the voting of any such securities, joint ventures, loan or option arrangements, puts or calls, guarantees of loans, guarantees against loss or the giving or withholding of proxies, consents or authorizations), (iv) in the past two years, except as previously disclosed in TCS’ filings with the SEC, there have been no transactions that would require reporting under the rules and regulations of the SEC between any of Comtech, Purchaser, their subsidiaries or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons listed in Schedule A, on the one hand, and TCS or any of its executive officers, directors or affiliates, on the other hand, and (v) in the past two years, there have been no negotiations, transactions or material contacts between any of Comtech, Purchaser, their subsidiaries or, to the knowledge of Comtech or Purchaser after reasonable inquiry, any of the persons listed in Schedule A, on the one hand, and TCS or any of its affiliates, on the other hand, concerning a merger, consolidation or acquisition, a tender offer or other acquisition of TCS securities, an election of TCS directors or a sale or other transfer of a material amount of assets of TCS.
We do not believe our financial condition is relevant to your decision whether to tender your Shares and accept the Offer because (i) the Offer is being made for all issued and outstanding Shares solely for cash, (ii) the Offer is not subject to any financing condition, and (iii) if we consummate the Offer, we will acquire all remaining Shares for the same cash price pursuant to the Merger.
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10.
Background of the Offer; Contacts with TCS
Comtech management and the board of directors of Comtech (the “Comtech Board”) regularly consider and evaluate potential transactions that align with Comtech’s businesses, strategic direction and ongoing business development plans.
In March 2015, a representative of Comtech contacted senior management of TCS on an unsolicited basis and suggested that it would be interested in exploring a potential acquisition of TCS. The contact did not result in any substantive discussions between TCS and Comtech.
On July 1, 2015, representatives of Lazard Frères & Co. LLC (“Lazard”), TCS’ financial advisor, contacted Comtech to gauge its interest in pursuing a strategic transaction with TCS and sent Comtech a form of confidentiality and non-disclosure agreement.
On July 13, 2015, Comtech and TCS entered into the Nondisclosure Agreement (as defined below), which contained a negotiated standstill provision.
On July 30, 2015, Lazard provided Comtech with certain information concerning TCS’ business and operations.
On August 27, 2015, Lazard provided Comtech additional information concerning TCS’ business and operations, including financial information.
On August 29, 2015, members of senior management of TCS met with representatives of Comtech. At this meeting, TCS senior management gave a general overview of TCS’ business and operations and discussed the financial information previously provided to Comtech.
On September 9, 2015, Lazard sent Comtech a first-round process letter inviting Comtech to submit a preliminary non-binding expression of interest for the acquisition of TCS. The process letter instructed that proposals were to be submitted by September 24, 2015.
On September 15 and September 16, 2015, Lazard provided Comtech additional financial information concerning TCS.
On September 24, 2015, representatives of Lazard and advisors to the TCS Special Committee held a telephonic meeting with representatives of Comtech regarding the financial information previously provided to Comtech.
On September 25, 2015, Comtech submitted a non-binding preliminary indication of interest which contemplated the acquisition of all of the equity interests of TCS for $4.27 per share in cash. Comtech’s indication of interest was subject to the completion of its due diligence, appropriate access to TCS management and approval of the Comtech Board of the final forms of definitive documentation.
On October 5, 2015, Comtech was granted access to a virtual data room that contained business, financial, regulatory, legal and other information concerning TCS.
During early-October 2015, members of senior management of TCS held telephonic meetings with representatives of Comtech regarding Comtech’s ongoing business, financial, regulatory and legal due diligence.
On October 18, 2015, Lazard sent Comtech a second-round process letter inviting Comtech to submit a final definitive offer for a potential acquisition of TCS. The process letter indicated that a draft merger agreement would be forthcoming and instructed that final offers, including a mark-up of the merger agreement, were to be submitted by November 4, 2015.
On October 25, 2015, Lazard sent a draft merger agreement for the acquisition of TCS to Comtech.
On October 29, 2015, Comtech, through representatives of Lazard, requested meetings with certain members of TCS senior management in order to complete its due diligence. Comtech was advised by representatives of Lazard that at that time Comtech’s existing offer was inadequate and needed to be increased, and that a representative of Lazard or the TCS Special Committee must be present at any such meetings. Comtech advised Lazard that it preferred not to have a representative of Lazard or the TCS Special Committee present at any such meetings.
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On November 3, 2015, Comtech, through representatives of Lazard, reiterated its request for private meetings with certain members of TCS senior management in order to complete its due diligence, and that it would not hold any such meetings with representatives of Lazard or the TCS Special Committee present. Comtech also indicated to Lazard that it intended to submit an enhanced offer on November 4, 2015, but that its offer would still be conditioned on its ability to obtain appropriate access to TCS senior management and would reflect the fact that such access had not been granted.
On November 4, 2015, Comtech submitted an enhanced offer for the acquisition of TCS at $4.75 per share, which would be financed with a combination of cash on hand and debt financing, attaching a mark-up of the draft merger agreement that had previously been provided. Comtech’s offer stated that it expected to speak at greater length with TCS management in connection with its offer and ongoing due diligence and requested that TCS enter into an exclusivity agreement with Comtech while the parties worked to finalize the merger agreement.
On November 9, 2015, representatives of Comtech, including Dr. Stanton D. Sloane, Chief Executive Officer and President of Comtech, and TCS met at TCS’ headquarters in Annapolis, Maryland. Representatives of Lazard were also present at the meeting. At this meeting, TCS and Comtech management reviewed TCS’ financial information and business prospects in further detail.
On November 11, 2015, Lazard sent Proskauer Rose LLP (“Proskauer”), Comtech’s outside legal counsel, an issues list prepared by Bryan Cave LLP (“Bryan Cave”), the TCS Special Committee’s outside legal counsel, reflecting the principal concerns of the TCS Special Committee regarding Comtech’s mark-up of the draft merger agreement, and the following day Bryan Cave and Proskauer held a telephone conference to discuss the issues list.
On November 12, 2015, representatives of Lazard contacted representatives of Comtech to discuss the management meeting held earlier that week and to advise Comtech that it would need to increase its offer to acquire TCS. Comtech indicated that based on its due diligence conducted to date and discussions with TCS management held earlier that week, Comtech would expect to raise its offer above $4.75 per share; however, any increased offer would represent Comtech’s best and final offer and would be conditioned on the completion of successful customer calls, receipt of all remaining open due diligence items and the approval of a mutually acceptable definitive merger agreement approved by the Comtech Board.
On November 14, 2015, representatives of Comtech called representatives of Lazard and indicated that it would increase its offer to acquire TCS to $5.00 per share and reiterated that it represented Comtech’s best and final offer and was conditioned on the completion of successful customer calls, receipt of all remaining open due diligence items and the approval of a mutually acceptable definitive merger agreement approved by the Comtech Board. On this call Lazard inquired as to the terms and conditions of Comtech’s debt financing and thereafter Comtech sent Lazard a draft of its debt commitment letter.
On November 16, 2015, Bryan Cave and Proskauer held a telephone conference to discuss the principal concerns of the TCS Special Committee regarding Comtech’s draft commitment letter. Later on November 16, 2015, Bryan Cave sent a revised draft of the merger agreement to Proskauer. Thereafter, through the moment of the execution and delivery of the Merger Agreement, negotiations and the exchange of draft language concerning the terms of the merger continued. Also on November 16, 2015, representatives of Lazard provided Comtech with the remainder of the information regarding TCS that Comtech had previously requested.
From November 19, 2015 to November 22, 2015, Bryan Cave and Proskauer exchanged mark-ups of the merger agreement and discussed and negotiated proposals with respect to items that remained open in the merger agreement, including the need by Comtech’s lender for a marketing period prior to the closing of the potential transaction in order to attempt to syndicate its loan to Comtech at the closing. During that period of time, Lazard (often in conjunction with Bryan Cave) continued its discussions with Comtech and its financial advisor, Citigroup Global Markets Inc. (“Citigroup”) (often in conjunction with Proskauer), regarding various terms and conditions of the merger agreement, Comtech’s debt commitment letter and related matters.
On November 19 and November 20, 2015, representatives of Comtech held numerous due diligence calls with certain TCS customers regarding their ongoing relationships with TCS.
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During the morning of November 21, 2015, the Comtech Board held a special meeting, with members of management and representatives of Citigroup and Proskauer present, to update the Comtech Board on the status of negotiations with TCS regarding the merger agreement and to consider approval of the proposed merger agreement. At the meeting, Proskauer summarized the key terms of the Merger Agreement and Commitment Letter (as defined below) for the Comtech Board, and representatives of Citigroup gave an overview of the proposed transaction and discussed its financial terms, all of which had also been reviewed by and discussed among members of the Comtech Board at prior meetings. Following extensive discussions and deliberations, the Comtech Board unanimously approved the Merger Agreement and the Commitment Letter (subject in each case to the resolution of certain minor contractual provisions) and the transactions contemplated thereby, including the Offer and the Merger.
During the night of November 21, 2015 and on November 22, 2015, Bryan Cave and Proskauer discussed the Merger Agreement and resolved the final provisions of the Merger Agreement to the satisfaction of their clients.
On November 22, 2015, Comtech delivered its executed Commitment Letter to TCS and Comtech, Purchaser and the Company executed the Merger Agreement. At 8:00 a.m. Eastern time on November 23, 2015, the parties issued a joint press release announcing the transaction.
On December 7, 2015, Purchaser commenced the Offer. During the Offer period, Comtech and Purchaser intend to have ongoing contacts with TCS and its directors, officers and stockholders.
11.
Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements
Purpose of the Offer and Plans for TCS.   The purpose of the Offer and the Merger is for Comtech, through Purchaser, to acquire control of, and the entire equity interest in, TCS. The Offer, as a first step in the acquisition of TCS, is intended to facilitate the acquisition of all the Shares. Pursuant to the Merger under Section 3.106-1 of the MGCL, we will acquire all of the outstanding shares of capital stock of TCS not purchased pursuant to the Offer. Stockholders of TCS who sell their Shares in the Offer will cease to have any equity interest in TCS or any right to participate in its earnings and future growth. If the Merger is consummated, non-tendering stockholders also will no longer have an equity interest in TCS. On the other hand, after selling their Shares in the Offer or the subsequent Merger, stockholders of TCS will not bear the risk of any decrease in the value of TCS.
In accordance with the Merger Agreement, if we accept for payment and pay for at least a majority of the total number of issued and outstanding Shares entitled to vote on the matter in the Offer, the Merger will be effected pursuant to Section 3-106.1 of the MGCL without a vote of TCS’ stockholders. In accordance with Section 3-106.1 of the MGCL, notice of the Offer and the Merger and the transactions contemplated thereby is hereby given by Purchaser (the “Notice”). The Articles of Merger, pursuant to which the Merger will become effective, will be filed with the State Department of Assessments and Taxation of Maryland not earlier than 30 days after the date of this Offer to Purchase.
Comtech is conducting a detailed review of TCS and its assets, corporate structure, dividend policy, capitalization, operations, properties, policies, management and personnel and will consider what, if any, changes would be desirable in light of the circumstances which exist upon completion of the Offer. We will continue to evaluate the business and operations of TCS during the pendency of the Offer and after the consummation of the Offer and the Merger and will take such actions as we deem appropriate under the circumstances then existing. Thereafter, we intend to review such information as part of a comprehensive review of TCS’ business, operations, capitalization and management with a view of optimizing development of TCS’ potential in conjunction with Comtech’s existing businesses. Possible changes could include changes in TCS’ business, corporate structure, charter, bylaws, capitalization, board of directors, management and dividend policy, although, except as disclosed in this Offer to Purchase, Comtech and Purchaser have no current plans with respect to any of such matters.
Except as disclosed in this Offer to Purchase, we do not have any present plans or proposals that would result in an extraordinary corporate transaction involving TCS or any of its subsidiaries, such as a merger, reorganization, liquidation, relocation of operations, or sale or transfer of a material amount of assets, or any material changes in TCS’ capitalization, corporate structure, business or composition of its management or board of directors.
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The Merger Agreement.   The following is a summary of certain provisions of the Merger Agreement. This summary is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is filed as Exhibit (d)(1) to the Tender Offer Statement on Schedule TO that we have filed with the SEC on December 7, 2015 (the “Schedule TO”) and which is incorporated herein by reference. The Merger Agreement may be examined and copies may be obtained in the manner set forth in Section 8 — “Certain Information Concerning TCS.”
The Offer.   The Merger Agreement provides that Purchaser will commence the Offer and that, upon the terms and subject to prior satisfaction or waiver of the Offer Conditions described in Section 13 — “Conditions of the Offer” (including, if the Offer is extended or amended in accordance with the terms of the Merger Agreement, the terms and conditions of any extension or amendment), Purchaser will accept for payment, and pay for, all Shares validly tendered and not withdrawn pursuant to the Offer promptly after the Expiration Date (the “Acceptance Time”).
The Merger Agreement requires us to: (i) extend the Offer for successive periods of up to 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if any Offer Conditions (other than the Minimum Condition) have not been satisfied or have not been waived (provided that the Offer does not expire more than three business days following the end of the Marketing Period and such condition or conditions are capable of being satisfied on or before the End Date); (ii) extend the Offer for successive periods of 10 business days each (or such longer period of up to 20 business days per extension if Comtech desires and TCS consents in writing prior to such extension) if all the Offer Conditions (other than the Minimum Condition) have been satisfied or have been waived (provided that the Offer does not expire more than three business days following the end of the Marketing Period and Purchaser will not be required to extend the Offer pursuant to this clause on more than two occasions but may do so in its sole and absolute discretion); and (iii) extend the Offer for the minimum period or periods required by applicable law or rules, regulations, interpretations or positions of the SEC or its staff or the NASDAQ.
We expressly reserve the right to make any changes in the terms or conditions to the Offer; provided, however, unless previously approved by TCS in writing, Comtech and Purchaser may not provide for a “subsequent offering period” (within the meaning of Rule 14d-11 under the Exchange Act).
Recommendation.   TCS has represented to us in the Merger Agreement that the TCS Board (at a meeting duly called and held), acting upon the unanimous recommendation of the TCS Special Committee, has, by unanimous vote of all of the directors, (a) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (b) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (c) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer; provided, that such recommendation may be withheld, withdrawn, amended, modified or qualified solely in accordance with the terms of the Merger Agreement.
The Merger.   The Merger Agreement provides that, after the completion of the Offer and the satisfaction or waiver of certain limited conditions, Purchaser will be merged with and into TCS and TCS will survive the Merger as a wholly owned subsidiary of Comtech. The Merger will be effected under Section 3.106-1 of the MGCL as soon as practicable following consummation of the Offer without any stockholder vote.
Charter, Bylaws, Directors and Officers.   At the Effective Time, the charter of TCS will be amended and restated in its entirety to read in the form attached as Exhibit A to the Merger Agreement and such amended and restated charter will become the charter of the Surviving Corporation. Also at the Effective Time, the bylaws of TCS will be amended and restated in its entirety to read in the form attached as Exhibit B to the Merger Agreement and such amended and restated bylaws will become the bylaws of the Surviving Corporation. The directors of Purchaser immediately prior to the Effective Time will become the initial directors of the Surviving Corporation and the individuals appointed by Comtech will become the initial officers of the Surviving Corporation.
Conversion of Shares.   Each Share issued and outstanding immediately prior to the Effective Time (other than any Excluded Shares) will be automatically converted into the right to receive $5.00 per Share,
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net to the holder thereof, subject to reduction by the amount of any applicable withholding taxes, in cash (the “Merger Consideration”) without interest thereon, payable to such holder upon surrender of the certificate formerly representing (or upon book-entry transfer of) such Shares. The Merger Consideration will be appropriately adjusted if between November 22, 2015 and the Effective Time, the number of outstanding Shares is changed into a different number of shares or a different class by reason of any reclassification, stock split (including a reverse stock split), recapitalization, business combination, tender or exchange offer, readjustment or other similar transaction, or a stock dividend or stock distribution thereon is declared with a record date within such period, to provide holders of Shares the same economic effect as contemplated by the Merger Agreement prior to such event. All of the Excluded Shares will be automatically cancelled and will cease to exist, and no cash, stock or other consideration will be paid for such Shares. At the Effective Time, each share of Purchaser’s common stock, par value $0.01 per share, issued and outstanding immediately prior to the Effective Time will be converted into and become one validly issued, fully paid and nonassessable share of common stock of the Surviving Corporation, par value $0.01 per share.
Treatment of Equity Awards.   The Merger Agreement provides that TCS will take all requisite action so that:
(i)
each option to purchase Shares outstanding immediately prior to the Effective Time, by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, if any, without interest and less the amount of any withholding taxes, equal to the product of  (a) the number of Shares underlying such option and (b) an amount equal to (x) the Offer Price less (y) the per share exercise price of such option; and
(ii)
each Share that is subject to forfeiture or other restrictions outstanding immediately prior to the Effective Time, by virtue of the Merger, will be cancelled and converted into the right to receive an amount in cash, without interest and less the amount of any withholding taxes, equal to the product of  (a) the number of Shares underlying such restricted share and (b) the Offer Price; provided that any payments in respect of such restricted shares to which a former holder thereof may be eligible to receive will be earned subject to the same vesting schedule and other vesting terms and conditions which applied to such restricted shares prior to the Effective Time, and such payment shall become payable on the date or dates that such restricted shares would have become vested under the vesting schedule in place immediately prior to the Effective Time.
Representations and Warranties.   In the Merger Agreement, TCS has made customary representations and warranties to Comtech and Purchaser with respect to, among other matters: organization, standing and corporate power; capitalization; subsidiaries; authority; the enforceability of the Merger Agreement; required governmental authorizations; the non-contravention by the Merger Agreement of TCS’ organizational documents and contracts; SEC filings, financial statements and internal controls; the absence of undisclosed liabilities; the absence of certain changes to the business of TCS since January 1, 2015; the absence of a Material Adverse Effect (as defined below) since January 1, 2015; information provided or included in the Schedule TO and other documents relating to the Offer; litigation; material contracts; employee benefit plans; labor and employment matters; taxes; environmental matters; intellectual property; compliance with laws and permits; government contracts; insurance; real and personal property; customers and suppliers; affiliate transactions; takeover laws; the opinion of its financial advisor; and brokers. Each of Comtech and Purchaser has made customary representations and warranties to TCS with respect to, among other matters, organization, standing and corporate power; authority; the enforceability of the Merger Agreement; required governmental authorizations; the non-contravention by the Merger Agreement of their organizational documents and contracts; capitalization and operation of Purchaser; information provided or included in the Schedule 14D-9 and other documents related to the Offer; the absence of litigation relating the Merger Agreement; ownership of Shares; availability of financing and the solvency of Comtech; and brokers.
As defined in the Merger Agreement, and for purposes of the Offer, “Material Adverse Effect” means any changes, conditions, effects, events, occurrences, states of facts or developments, alone or in combination with other changes, conditions, effects, events, occurrences, states of facts or developments (each a “Change”), that (a) have had or would reasonably be expected to have a material adverse effect on
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the business, assets, liabilities, results of operations or financial condition of TCS and its subsidiaries, taken as a whole, or (b) would reasonably be expected to prevent the consummation of the Merger or the other transactions contemplated by the Merger Agreement on or prior to the End Date; provided, that for the purposes of clause (a) any Changes attributable to any of the following subclauses will not constitute, and will not be taken into account in determining whether there has been a Material Adverse Effect, to the extent such Changes do not have a materially disproportionate effect on TCS and its subsidiaries taken as a whole relative to other persons in the industry in which TCS and its subsidiaries operate generally in the event of subclauses (i) through (iv) below:
(i)
business or political conditions or conditions generally affecting the industry or segments therein in which TCS and its subsidiaries participate, the U.S. economy as a whole or the capital, credit or financial markets in general or the markets in which TCS and its subsidiaries operate;
(ii)
any change after the date of the Merger Agreement in accounting requirements or principles or in applicable laws or the interpretation or enforcement thereof;
(iii)
any acts of war (whether or not declared), armed hostilities, sabotage or terrorism occurring after the date of the Merger Agreement or the continuation, escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism threatened or underway as of the date of the Merger Agreement;
(iv)
any earthquakes, hurricanes, floods or other natural disasters, acts of God or force majeure events;
(v)
the execution, delivery, announcement or pendency of the Merger Agreement or the transactions contemplated by the Merger Agreement, including (A) the identity of Comtech and (B) the impact thereof on the relationships, contractual or otherwise, of TCS or any of its subsidiaries with its customers, employees or suppliers, or with any other third party;
(vi)
any action taken or statement made by Comtech or its affiliates or their respective representatives;
(vii)
compliance with, or the taking of any action required by, the express terms of the Merger Agreement or approved in advance by Comtech, including any action taken in connection with obtaining regulatory or third party approvals; or
(viii)
the failure of TCS or any of its subsidiaries to meet internal forecasts, budgets or financial projections or any decline in the market price or trading volume of the shares of TCS common stock on the NASDAQ (provided, that the exception in this clause will not prevent or otherwise affect a determination that any adverse Change underlying such failure or decline has resulted in or contributed to a Material Adverse Effect).
The Merger Agreement and the above description thereof have been included to provide TCS stockholders with information regarding the terms of the agreement. They are not intended to provide any other factual information about TCS or Comtech or their respective subsidiaries or affiliates or stockholders. The representations, warranties and covenants contained in the Merger Agreement were made only for purposes of the Merger Agreement as of the specific dates therein, were solely for the benefit of the parties to the Merger Agreement, may be subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures made for the purposes of allocating contractual risk among the parties to the Merger Agreement instead of establishing these matters as facts, and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to TCS stockholders. TCS stockholders should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the parties thereto or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in TCS’ or Comtech’s public disclosures. Accordingly, TCS stockholders should read the representations and warranties in the Merger Agreement not in isolation but only in conjunction with the other information about TCS or Comtech and their respective subsidiaries that the respective companies include in reports, statements and other filings they make with the SEC.
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Covenants.   The parties have agreed to a number of customary covenants in the Merger Agreement, including, among others, the covenants described below.
Conduct of Business.   The Merger Agreement obligates TCS and its subsidiaries, from the date of the Merger Agreement until the earlier of the Effective Time or the termination of the Merger Agreement in accordance with its terms, to conduct its business in all material respects in the ordinary course of business and, to the extent consistent therewith, use its commercially reasonable efforts to preserve substantially intact its current business organization, maintain relationships and goodwill with significant customers, suppliers and distributors and other persons with which it has significant business relations, keep available the services of its current officers and key employees, maintain in effect all material permits pursuant to which TCS or its subsidiaries currently operate and maintain and enforce in all material respects the intellectual property rights possessed by TCS. Without limiting the generality of the foregoing, and subject to certain exceptions, TCS and its subsidiaries may not take any of the following actions without the prior written consent of Comtech (which consent will not be unreasonably withheld, conditioned or delayed):
(i)
(a) split, combine, reclassify, subdivide, exchange, recapitalize or enter into any similar transaction in respect of its capital stock, (b) declare, set aside or pay any dividend or make any other distribution (whether in cash, stock, property or any combination thereof) in respect of any shares of its capital stock or other securities or (c) redeem, repurchase, cancel or otherwise acquire or offer to redeem, repurchase, or otherwise acquire, any of its securities or any securities of any of its subsidiaries;
(ii)
issue, sell, pledge, transfer, dispose of or encumber or authorize or propose the issuance, sale, pledge, transfer, disposition or encumbrance of any shares of its capital stock or other equity interests or securities exercisable or convertible into, or exchangeable or redeemable for, any such shares or other equity interests, or any rights, warrants, options, calls or commitments to acquire any such shares or other equity interests;
(iii)
adopt or publicly propose a plan of complete or partial liquidation, dissolution, recapitalization, restructuring or other reorganization of TCS or its subsidiaries;
(iv)
amend its organizational documents;
(v)
acquire or dispose (by merger, consolidation, joint venture or acquisition or disposition of stock or other equity interests or of assets or otherwise) of any person or business or division thereof involving the payment of consideration in excess of specified thresholds or merge or consolidate with or into any other person;
(vi)
incur, assume, guarantee or otherwise become liable or responsible for any indebtedness for borrowed money, repay, redeem or repurchase any indebtedness or cancel any material debt or claim owed to TCS or any of its subsidiaries;
(vii)
make any loans or advances to any person in excess of a specified threshold;
(viii)
sell, lease, license or otherwise dispose of any subsidiary or any assets, securities or property with a fair market value in excess of a specified threshold;
(ix)
(a) enter into any contract that contains a change of control or similar provision that would require a payment to the other party or parties thereto in connection with the Merger or the other transactions contemplated by the Merger Agreement, (b) enter into any new material contract, amend any material contract in any material respect, terminate any material contract or grant any release or relinquishment of any material rights under any material contract or (c) enter into, modify, supplement or amend any lease;
(x)
discharge, settle or compromise any litigation, action, suit or other proceeding against TCS or any of its subsidiaries in excess of specified thresholds;
(xi)
materially change its accounting or tax reporting methods, principles or policies, make, change or rescind any material tax election, file any materially amended tax return, settle any material tax claim or assessment, surrender any right to claim a material tax refund, offset or other
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reduction in tax liability, consent to any extension or waiver of the limitations period applicable to any material tax claim or assessment, make a request for a written ruling of a taxing authority, or enter into a written and legally binding agreement with a taxing authority;
(xii)
(a) increase by more than a specified amount the amount of base salary or wages payable or to become payable to any employee, executive officer, independent contractor or director of TCS, (b) grant to any of its employees, executive officers, independent contractors or directors any increase in severance or termination pay, (c) pay or award, or commit to pay or award, any bonuses or incentive or equity compensation, (d) enter into, adopt or amend in any material respect any benefit plan, (e) take any action to accelerate any payment or benefit, or the funding of any payment or benefit, payable or to become payable to any of its employees, executive officers, independent contractors or directors, or (f) pay or provide, or promise to pay or provide, any additional payments (including any tax gross-up or other payment) as a result of the imposition of the excise taxes required by Section 4999 of the Code or any taxes required by Section 409A of the Code or otherwise;
(xiii)
hire or terminate (other than for cause) the employment or service of any officer, director or employee (which employee has annual base salary in excess of a specified amount) of TCS or any of its subsidiaries or appoint any person to a position of executive officer or director of TCS or any of its subsidiaries and, to the extent requested by Comtech, TCS is required to consult in good faith with Comtech regarding the renewal or non-renewal of any employment agreement which is subject to renewal or non-renewal prior to the End Date;
(xiv)
sell, license, assign, transfer, abandon or otherwise dispose of, any material intellectual property;
(xv)
incur any capital expenditure or any obligations, liabilities or indebtedness in respect thereof except as set forth in the capital expenditure budget of TCS;
(xvi)
create any subsidiary or enter into any new line of business;
(xvii)
enter into any contract or transaction between TCS or any of its subsidiaries, on the one hand, and any affiliate of TCS or any of its subsidiaries on the other hand;
(xviii)
fail to duly and timely file all material reports and other material documents required to be filed with the NASDAQ, the SEC or any other governmental authority;
(xix)
amend or modify the compensation terms or any other obligations of TCS contained in the engagement letter with its financial advisor in a manner adverse to TCS, any of its subsidiaries or Comtech or engage other financial advisers in connection with the transactions contemplated by the Merger Agreement; or
(xx)
authorize any of, or commit or agree to take any of, the foregoing actions.
No Solicitation.   From the date of the Merger Agreement until the earlier to occur of the date the Merger Agreement is terminated and the Effective Time, TCS agreed that neither it nor any of its subsidiaries nor any of its or their respective directors or officers will, and TCS will use its reasonable best efforts to cause its and its subsidiaries’ other representatives not to, directly or indirectly, (i) whether publicly or otherwise, solicit, initiate, induce, knowingly encourage or knowingly take any other action designed to facilitate or assist the submission of any proposal, inquiry, indication of interest or offer that constitutes or would reasonably be expected to lead to an Acquisition Proposal (as defined below) or the consummation thereof, (ii) other than solely to inform any person of the existence of the non-solicitation provisions contained in the Merger Agreement, enter into, conduct, participate, maintain or engage in, or continue to conduct, participate, maintain or engage in, any discussions or negotiations with any person, or take any action with respect to any proposal, inquiry, indication of interest or offer that constitutes, or would reasonably be expected to lead to, any Acquisition Proposal, (iii) furnish to any person (other than Comtech, Purchaser or any of their designees) any non-public information relating to TCS or any of its subsidiaries, or afford to any person (other than Comtech, Purchaser or any of their designees) access to the business, properties, assets, books, records or other information, or to any personnel, of TCS or any of its subsidiaries, in any such case with the intent to encourage, induce, facilitate or assist the making, submission or announcement of any proposal, inquiry, indication of interest or offer that constitutes or
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would reasonably be expected to lead to an Acquisition Proposal, (iv) approve, adopt, declare advisable, endorse or recommend any Acquisition Proposal (except to the extent expressly permitted pursuant to the Merger Agreement), (v) enter into any letter of intent, memorandum of understanding, agreement in principle or similar document, or any contract or commitment contemplating or otherwise providing for or relating to any Acquisition Proposal (other than an acceptable confidentiality agreement in accordance with the Merger Agreement) (an “Alternative Acquisition Agreement”), (vi) take any action to make the provisions of any takeover laws or any anti-takeover provision in TCS’ organizational documents inapplicable to any transactions contemplated by an Acquisition Proposal, or (vii) resolve or agree to any of the foregoing. TCS and its subsidiaries will, and will instruct and use its reasonable best efforts to cause its and its subsidiaries’ representatives to, immediately cease and cause to be terminated all existing activities, discussions or negotiations with any person conducted prior to the date of the Merger Agreement with respect to any proposal that constitutes or would reasonably be expected to lead to any Acquisition Proposal, and are required to terminate access by each such person and its representatives to any online or other data rooms containing any information in respect of TCS or any of its subsidiaries. As soon as practicable following the date of the Merger Agreement, TCS is required to request of each person that previously executed a confidentiality agreement in connection with its consideration of an Acquisition Proposal to promptly return or destroy all confidential information furnished prior to the date of the Merger Agreement to or for the benefit of such person by or on behalf of TCS or any of its subsidiaries or representatives. From and after the date of the Merger Agreement, TCS and its subsidiaries and their respective officers, directors and employees are required to use their reasonable best efforts to enforce any confidentiality provisions or provisions of similar effect to which the TCS or any of its subsidiaries is a party or of which TCS or any of its subsidiaries is a beneficiary.
The Merger Agreement requires that as promptly as practicable, and in any event within 24 hours, following receipt by TCS, any of its subsidiaries or any of their respective representatives of an Acquisition Proposal or any inquiry or any request for information relating to TCS or any of its subsidiaries or for access to the business, properties, assets, books or records of TCS or any of its subsidiaries that would be reasonably expected to lead to an Acquisition Proposal, TCS will provide Comtech with oral and written notice of  (a) the material terms and conditions of such Acquisition Proposal, inquiry or request (including any financing arrangements), (b) the identity of the person making such Acquisition Proposal, inquiry or request, and (c) a copy of any written materials provided by such person in connection with such Acquisition Proposal, inquiry or request. TCS is required to keep Comtech reasonably informed on a reasonably prompt basis with respect to any material change to the status or details of such Acquisition Proposal, inquiry or request (and in any event within 24 hours following any changes to such Acquisition Proposal, inquiry or request), including by providing copies of any materials received by TCS, any of its subsidiaries or their respective representatives relating to such Acquisition Proposal after written notice of such Acquisition Proposal is delivered to Comtech.
Pursuant to the Merger Agreement, prior to the Acceptance Time, in response to an unsolicited bona fide written Acquisition Proposal made after the date of the Merger Agreement and under circumstances not otherwise involving a breach of the Merger Agreement, TCS may (i) furnish information with respect to TCS and its subsidiaries to the person making such Acquisition Proposal (and its representatives) if such action is taken subject to a confidentiality agreement entered into in accordance with the terms of the Merger Agreement and (ii) to participate in discussions or negotiations with the person making such Acquisition Proposal, if, in either case, the TCS Board, acting upon the recommendation of the TCS Special Committee, determines in good faith, after consultation with its (or the TCS Special Committee’s) financial advisor and outside legal counsel that such Acquisition Proposal constitutes or would reasonably be expected to lead to a Superior Proposal and that the failure to take such actions would be inconsistent with its fiduciary duties under applicable law. TCS is required to, prior to or substantially concurrently (and in any event within 24 hours) with the provision of any non-public information of TCS to the person who has made such an Acquisition Proposal, provide such information to Comtech to the extent such information has not previously been provided or made available to Comtech.
Acquisition Proposal” means any inquiry, proposal, indication of interest or offer, whether in one transaction or a series of related transactions, relating to (i) a merger, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution, or similar transaction involving TCS or any of its subsidiaries, or any tender offer or exchange offer, in any such case, that if
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consummated would result in any person, directly or indirectly, beneficially owning 20% or more of any class of equity securities of TCS, (ii) a direct or indirect sale, lease, license, mortgage, pledge or other disposition of assets of TCS (including equity interests in subsidiaries) or any of its subsidiaries representing 20% or more of the consolidated revenues, net income or assets of TCS determined on a book-value basis, (iii) any issuance, sale or other disposition, directly or indirectly, to any person of securities representing 20% or more of the total voting power of TCS, or (iv) any combination of the foregoing (other than any such inquiry, proposal, indication of interest or offer made by Comtech, Purchaser or any of their affiliates). For purposes of the Merger Agreement, any inquiry, proposal, indication of interest or offer relating solely to the business of TCS that comprises (A) TCS’ commercial segment, or (B) TCS’ government segment, will constitute an Acquisition Proposal.
Superior Proposal” means any bona fide written Acquisition Proposal made after the date of the Merger Agreement that did not result from a breach of the Merger Agreement which the TCS Board, acting upon the recommendation of the TCS Special Committee, concludes in good faith (after consultation with its (or the TCS Special Committee’s) financial advisor and outside legal counsel), taking into account all financial, legal, regulatory and other aspects of the Acquisition Proposal and the person making the Acquisition Proposal, including any break-up fees, expense reimbursement provisions and conditions to consummation, as well as any adjustments to the terms and conditions of the Merger Agreement proposed in writing by Comtech and Purchaser in response to such proposal or otherwise, (i) to be more favorable to TCS’ stockholders from a financial point of view than the transactions contemplated by the Merger Agreement and (ii) is reasonably capable of being completed on the terms proposed (provided that for the purpose of this definition, (a) references to “20%” in clauses (i) and (iii) of the definition of Acquisition Proposal will be deemed to be references to “50%” and (b) references to “20%” in clause (ii) of the definition of Acquisition Proposal will be deemed to be references to “60%”).
TCS Board Recommendation.   Subject to the provisions described below, the TCS Board agreed to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer. This is referred to as the “TCS Board Recommendation.” Except as otherwise permitted by the Merger Agreement, TCS agreed that neither the TCS Board nor the TCS Special Committee will: (i) withhold, withdraw, amend, modify or qualify (or publicly propose to withhold, withdraw, amend, modify or qualify) in any manner adverse to Comtech or Purchaser, the TCS Board Recommendation; (ii) fail to include the TCS Board Recommendation in the Schedule 14D-9, (iii) approve, adopt, declare advisable, endorse or recommend an Acquisition Proposal or publicly propose to approve, adopt, declare advisable, endorse or recommend an Acquisition Proposal (each of clauses (i), (ii) and (iii), a “TCS Adverse Recommendation Change”); or (iv) cause or permit TCS or any of its subsidiaries to enter into any Alternative Acquisition Agreement; provided that such restrictions will not prohibit the TCS Board from complying with its disclosure obligations under applicable law regarding an Acquisition Proposal, including (a) taking and disclosing to its stockholders a position contemplated in Rule 14e-2(a), Rule 14d-9 or Item 1012(a) of Regulation M-A under the Exchange Act or (b) making any “stop, look and listen” communication to the stockholders of TCS pursuant to Rule 14d-9(f) under the Exchange Act; provided that the taking of any such position or making of any such disclosure will not affect TCS’ and TCS Board’s duties under the Merger Agreement.
Notwithstanding the foregoing restrictions or anything to the contrary set forth in the Merger Agreement, at any time prior to the Acceptance Time, (a) in response to the receipt of a Superior Proposal or an Intervening Event (as defined below), the TCS Board is permitted to effect a TCS Adverse Recommendation Change or (b) in response to the receipt of a Superior Proposal, TCS may terminate the Merger Agreement in order to enter into an Alternative Acquisition Agreement with respect to such Superior Proposal, if, in each case all of the following conditions are met:
(i)
a Superior Proposal with respect to TCS has been made and has not been withdrawn or an Intervening Event has occurred;
(ii)
TCS shall have provided to Comtech written notice (a “Notice of Superior Proposal/Intervening Event”) at least five business days prior to effecting such TCS Adverse Recommendation Change or termination of the Merger Agreement, which notice shall state (a) that it has received a Superior Proposal or an Intervening Event has occurred, (b) in the case of a Superior Proposal,
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the material terms and conditions of such Superior Proposal (including any financing arrangements) and the identity of the person making such Superior Proposal and copies of all materials provided by such person in connection with such Superior Proposal, or, in the case of an Intervening Event, the material facts and circumstances related to such Intervening Event, and (c) that it intends to terminate the Merger Agreement pursuant to the terms of the Merger Agreement or effect a TCS Adverse Recommendation Change; and
(iii)
the TCS Board, acting upon the recommendation of the TCS Special Committee, has concluded in good faith, after consultation with its (or the TCS Special Committee’s) financial advisor and outside legal counsel, that the failure to effect a TCS Adverse Recommendation Change or terminate the Merger Agreement pursuant to its terms would be inconsistent with its fiduciary duties under applicable law.
After delivering a Notice of Superior Proposal/Intervening Event, TCS has agreed to provide Comtech with five business days to make any revisions to the terms of the Merger Agreement, and to consider and negotiate in good faith with Comtech and its representatives such revisions to the terms of the Merger Agreement. The TCS Board may not terminate the Merger Agreement or effect a TCS Adverse Recommendation Change until the expiration of the five business day period and unless and until the TCS Board concludes in good faith, after considering Comtech’s proposed revisions to the terms of the Merger Agreement made in a signed writing or signed email and consultation with its (or the TCS Special Committee’s) financial advisor and outside legal counsel, that the failure to terminate the Merger Agreement or effect a TCS Adverse Recommendation Change would still be inconsistent with its fiduciary duties under applicable law. In the event of any material amendment or modification to any Superior Proposal, TCS will promptly (but in any event within 24 hours of occurrence) notify Comtech of any such amendment or modification and, the TCS Board and its representatives will be required to negotiate in good faith with Comtech regarding any adjustments to the terms and conditions of the Merger Agreement proposed by Comtech in response to such amendment or modification until the later to occur of two business days after the TCS Board provides written notice of such amendment or modification to Comtech and the end of the original five business day period described above. In the event there is a TCS Adverse Recommendation Change made in compliance with the provisions of the Merger Agreement with respect to a Superior Proposal, TCS will only enter into an Alternative Acquisition Agreement with respect thereto by terminating the Merger Agreement and paying Comtech the Company Termination Fee (as defined below).
Intervening Event” means any change, effect, event, occurrence, state of facts or development that is material to TCS and its subsidiaries, taken as a whole, that (i) was not known to, or reasonably foreseeable by, the TCS Special Committee or the TCS Board, or the material consequences of which were not known or reasonably foreseeable, as of or prior to the date of the Merger Agreement, (ii) becomes known to, or the material consequences thereof become reasonably foreseeable by, the TCS Special Committee or the TCS Board prior to the Acceptance Time and (iii) does not involve or relate to (a) an Acquisition Proposal or (b) any fluctuation in the market price or trading volume of the Shares, in and of itself.
Reasonable Best Efforts.   Each of Comtech, Purchaser and TCS have agreed to use, and to cause their respective affiliates to use their reasonable best efforts to, as promptly as practicable, to: (i) consummate the Offer and the Merger and the other transactions contemplated by the Merger Agreement, (ii) obtain from any governmental authority any consent, approval, authorization, waiver or order required to be obtained or made by any party or any of their respective affiliates and avoid any action by any governmental authority, in each case in connection with the Offer and the Merger and to fulfill the conditions to the transactions contemplated by the Merger Agreement, (iii) make all necessary filings, and thereafter make any other required submissions, with respect to the Merger Agreement required under applicable law, including the HSR Act and any other applicable antitrust laws, in each case in connection with the Offer and the Merger and to fulfill the conditions to the transactions contemplated by the Merger Agreement, and (iv) to the extent requested by Comtech, obtain all necessary or appropriate consents, waivers and approvals and make all necessary or appropriate notifications under any contracts of TCS and its subsidiaries, in each case in connection with the Offer and the Merger.
Comtech and TCS will each request early termination of the waiting period provided for in the HSR Act. Comtech and TCS will, and will cause their respective affiliates to, coordinate and cooperate in connection with their respective efforts to obtain termination or expiration of the applicable waiting period
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and all requisite clearances and approvals under the HSR Act and any other antitrust laws as promptly as practicable and in any event before the End Date. In connection with any investigation or other inquiry, Comtech and TCS will, and will cause their respective affiliates to, unless prohibited by applicable law or a governmental authority, (i) keep the other party promptly informed of any communication received by such party or any of its affiliates from any governmental authority regarding any of the transactions contemplated by the Merger Agreement, and (ii) provide outside counsel for the other party with a reasonable opportunity to (a) review in advance any proposed communication by such party or its affiliates with any governmental authority, (b) consult with the other party prior to any meeting or conference with any governmental authority, and (c) attend and participate in such meetings or conferences. Without the prior written consent of the other party, Comtech and TCS will not, and will not permit their respective affiliates to consent or agree to extend the waiting period under the HSR Act or enter into any agreement with any governmental authority with respect to the transactions contemplated by the Merger Agreement.
Comtech and TCS will, and will cause their respective affiliates to, use reasonable best efforts to take, or cause to be taken, all other actions and do, or cause to be done, all other things necessary, proper or advisable to consummate and make effective the transactions contemplated by the Merger Agreement, to resolve such objections, if any, as any governmental authority may assert under the HSR Act or any other antitrust laws with respect to the transactions contemplated by the Merger Agreement, and to avoid or eliminate each and every impediment and avoid the institution of any action under any such law that may be asserted by any governmental authority with respect to the transactions contemplated by the Merger Agreement, in each case so as to enable the Offer and the Merger to occur as promptly as possible and in any event before the End Date, to ensure that no governmental authority enters any order or establishes any law preliminarily or permanently restraining, enjoining or prohibiting the consummation of the transactions contemplated by the Merger Agreement, or to ensure that no governmental authority with the authority to authorize or approve such consummation fails to do so as promptly as practicable and in any event before the End Date; provided, however, that, notwithstanding anything to the contrary contained in the Merger Agreement, no such remedy will be (i) required unless contingent upon the occurrence of the Merger, (ii) proposed, agreed to or effected by TCS or its subsidiaries without the prior written consent of Comtech or (iii) required to be agreed to by Comtech or its affiliates if such remedy would have a material adverse effect on the business, results of operations or financial condition of  (A) TCS and its subsidiaries (taken as a whole) or (B) Comtech and its subsidiaries (taken as a whole, after giving effect to the Merger).
Both Comtech and TCS have agreed, on behalf of themselves and their respective affiliates, that, between the date of the Merger Agreement and the earlier of the termination or expiration of the applicable waiting period under the HSR Act or the termination of the Merger Agreement in accordance with its terms, neither Comtech nor TCS will, and neither Comtech nor TCS will permit their respective affiliates to, enter into any binding agreement or any letter of intent (whether or not binding) for any acquisition (via stock purchase, merger, consolidation, purchase of assets or otherwise) of, or commence any tender offer for, any ownership interest or assets of any person if such ownership interest or assets would reasonably be expected to materially delay or materially and adversely affect Comtech’s ability to obtain termination or expiration of the applicable waiting period and all requisite clearances and approvals under the HSR Act as promptly as practicable and in any event before the End Date.
Comtech and TCS agreed to make, and to cause their respective affiliates to make, any necessary filings under the HSR Act and any other antitrust laws no later than 10 business days after the date of the Merger Agreement. Comtech and TCS are required to, and are required to cause their respective affiliates to, comply at the earliest practicable date with any request under the HSR Act or any other antitrust laws to provide information, documents or other materials requested by any governmental authority.
Notification of Certain Matters.   TCS has agreed to give Comtech prompt notice upon becoming aware of any representation, warranty or covenant of TCS that has become untrue or inaccurate in any material respect, or the failure of TCS to comply with or satisfy in any material respect any covenant, condition or agreement that would reasonably be expected to cause any of the conditions to the obligations of Comtech and Purchaser to consummate the Offer or the Merger to not be satisfied. Comtech has similarly agreed to give TCS prompt notice after obtaining knowledge of any breach by Comtech of a representation, warranty or covenant that would reasonably be expected to prevent the consummation of the transactions contemplated by the Merger Agreement from occurring on or prior to the End Date.
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Public Announcements.   Except with respect to any TCS Adverse Recommendation Change or any public statement made thereafter, Comtech and TCS have agreed not to make any press release or other public statement regarding the Merger Agreement or the transactions contemplated thereby without first consulting with the other, except as such party may reasonably conclude may be required by applicable law, court process or pursuant to any listing agreement with any national securities exchange or national securities quotation system.
Employee Matters.   Pursuant to the terms of the Merger Agreement, for a period commencing as of the Effective Time and ending on December 31, 2016 (or, if earlier, the date of termination of the applicable Continuing Employee (as defined below)), each employee of TCS and its subsidiaries who remains in the active employment of the Surviving Corporation and its subsidiaries (the “Continuing Employees”) will receive (i) an annual rate of salary or wages and annual incentive opportunities (excluding equity or equity-based compensation or incentive opportunities) that are, in each case, substantially comparable in the aggregate to those provided by Comtech to its similarly situated employees in the same or comparable geographic locations, and (ii) employee benefits (excluding equity or equity-based compensation or incentive opportunities) that are substantially comparable to the employee benefits provided by Comtech to its similarly situated employees in the same or comparable geographic locations.
With respect to each employee benefit plan in which any Continuing Employee participates, for purposes of determining eligibility to participate, vesting and entitlement to benefits, Comtech will cause the Surviving Corporation to recognize the service of each Continuing Employee with TCS or its subsidiaries (as well as service with any predecessor employer of TCS or its subsidiaries to the extent service with such predecessor employer is recognized by TCS or its subsidiaries) as if such service had been performed with Comtech with respect to any plans or programs in which Continuing Employees are eligible to participate after the Effective Time for all purposes under such plans or programs except with regard to benefit accrual purposes under any defined benefit retirement plan of any type or eligibility to participate in or vesting under any equity or equity-based compensation plans, except, in each case, to the extent such treatment would result in duplicative benefits or require recognition of service under a newly established plan for which service is not taken into account for employees of Comtech.
With respect to any welfare plan maintained by Comtech in which Continuing Employees are eligible to participate after the Effective Time, Comtech will, and will cause the Surviving Corporation to, use commercially reasonable efforts to (i) waive all limitations as to preexisting conditions and limitations, exclusions, actively-at-work requirements, waiting periods and any other restriction that would prevent immediate or full participation under any welfare benefit plan maintained by the Surviving Corporation with respect to participation and coverage requirements applicable to such employees to the extent such conditions and exclusions were satisfied or did not apply to such employees under the welfare plans or comparable welfare plans maintained by TCS prior to the Effective Time and (ii) provide each Continuing Employee with credit for any co-payments and deductibles paid prior to the Effective Time in the same plan year in which the Effective Time occurs in satisfying any analogous deductible or out-of-pocket requirements to the extent applicable under the relevant welfare benefit plan in which Continuing Employees participate from and after the Effective Time, as if there had been a single continuous employer, to the extent credited under the welfare plans maintained by TCS prior to the Effective Time.
Unless otherwise requested by Comtech at least 10 days prior to the closing of the Merger, TCS will terminate any and all benefit plans intended to qualify under Section 401(a) of the Code, effective not later than the day immediately preceding the closing of the Merger, in which case Continuing Employees will be eligible to participate in a tax qualified plan intended to satisfy Section 401(k) of the Code that is sponsored and maintained by Comtech or its affiliate, and such Continuing Employees will be credited with eligibility service and vesting service for all periods of service with TCS or any other entity to the extent so credited with such service under the applicable TCS plan.
Notwithstanding the foregoing, nothing in the Merger Agreement is to be construed as requiring Comtech or the Surviving Corporation to continue any specific benefit plans or compensation, retention or employment arrangements or to continue the employment of any specific person, and nothing contained in the Merger Agreement will prevent Comtech, the Surviving Corporation or any of their affiliates from amending or terminating any of their benefit plans or, after the Effective Time, any TCS benefit plans in accordance with their terms, subject to complying with the terms of the Merger Agreement.
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Indemnification, Exculpation and Insurance.   The Merger Agreement provides for certain indemnification and insurance rights in favor of TCS’ current and former directors or officers, who we refer to as “indemnified parties.” Specifically, all rights to exculpation, indemnification advance and reimbursement of expenses provided to the indemnified parties, under TCS’ charter, bylaws or other indemnification agreements, with respect to acts or omissions arising prior to or at the Effective Time, will continue in full force and effect for six years following the Effective Time.
For a period commencing at the Effective Time and ending on the sixth anniversary of the Effective Time, Comtech has agreed to maintain directors’ and officers’ liability insurance in respect of acts or omissions occurring at or prior to the Effective Time covering each person covered by TCS’ existing directors’ and officers’ liability insurance with terms, conditions, retentions and levels of coverage at least as favorable to the insured individuals as TCS’ existing policies. However, Comtech is not required after the Effective Time to pay annual premiums in excess of 300% of the last annual premium for TCS’ existing policies, but in such case will purchase as much coverage as may be purchased for such amount.
If, following the Effective Time, Comtech or the Surviving Corporation or any of its successors or assigns merges into or consolidates with another entity and is not the surviving corporation or transfers or conveys substantially all its assets, provision will be made so that the successors or assigns of Comtech or the Surviving Corporation assume the insurance and indemnification obligations described above.
Exemption from Liability under Section 16(b).   TCS has agreed to cause any dispositions of Shares (including derivative securities with respect to Shares) resulting from the transactions contemplated by the Merger Agreement by each person who is subject to the reporting requirements of Section 16(a) of the Exchange Act with respect to TCS to be exempt under Rule 16b-3 promulgated under the Exchange Act.
Stockholder Litigation.   Each of the parties has agreed to promptly notify the other parties in writing of any litigation arising out of or relating to the Merger Agreement or the transactions contemplated by the Merger Agreement, including the Merger, that is brought, or, to the knowledge of such party, threatened in writing, against such party and/or its directors or officers, and has agreed to keep the other party reasonably informed regarding any such litigation. Except in any action where the parties may be adverse to the other party, each party agreed to give, and has the opportunity to participate in (but not control) the defense or settlement of any such litigation. TCS is not permitted to settle any such litigation without the prior written consent of Comtech (which will not be unreasonably withheld, conditioned or delayed).
State Takeover Laws.   If any state anti-takeover or other similar law is or becomes applicable to the Offer, the Merger or any other transactions contemplated by the Merger Agreement or the Tender and Support Agreements, TCS, Comtech and Purchaser and their respective boards of directors will grant all such approvals and take such actions as are reasonably necessary or appropriate so that such transactions may be consummated as promptly as practicable on the terms contemplated by the Merger Agreement and otherwise act reasonably to eliminate or minimize the effect of such law on such transactions.
Access to Information.   Subject to certain exceptions, prior to the earlier of the Effective Time and the termination of the Merger Agreement (and upon reasonable notice), TCS and its subsidiaries will provide Comtech and its representatives reasonable access at reasonable times, to the officers, employees, books and records, properties and contracts of TCS and its subsidiaries, and to the extent permitted by applicable law, reasonably provide any financial and operating data, customer billing and other data files for the purpose of system integration and testing as well as compensation and payroll data files for the purpose of payroll system integration and testing with respect to employees of TCS and its subsidiaries, and other information regarding the assets, properties or business of TCS and its subsidiaries as Comtech may from time to time reasonably request.
Cooperation.   TCS has agreed to use reasonable best efforts to provide to Comtech, at Comtech’s sole expense, all cooperation reasonably requested by Comtech that is customary and necessary in connection with arranging, obtaining and syndicating Comtech’s debt in connection with the transactions contemplated by the Merger Agreement.
Financing.   Comtech has agreed in the Merger Agreement to use reasonable best efforts to obtain and consummate the debt financing on the terms and conditions described in the Commitment Letter (as defined below). If the debt financing contemplated by the Commitment Letter expires, is terminated or
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otherwise becomes unavailable, Comtech is required to use reasonable best efforts to obtain alternate financing in an amount sufficient to pay all amounts required to be paid in connection with the Offer, the Merger and the other transactions contemplated by the Merger Agreement as promptly as practicable.
Stock Exchange Delisting.   TCS has agreed to cooperate with Comtech and to use commercially reasonable efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under applicable laws and rules and policies of the NASDAQ in connection with delisting the Shares from the NASDAQ and deregistering the Shares under the Exchange Act, as promptly as practicable after the Effective Time.
Payoff Letter.   No later than three business days prior to the date the Merger is consummated, TCS is required to deliver to Comtech a payoff letter from the administrative agent under TCS’ senior secured credit facility, as amended on April 30, 2015, with Silicon Valley Bank and the other lenders party thereto, in form and substance reasonably satisfactory to Comtech.
Convertible Notes.   On the date the Merger is consummated, TCS has agreed to (i) deliver or cause to be delivered written notice to the trustee under the Indenture, dated as of May 7, 2013, between TCS and the Bank of New York Mellon Trust Company, N.A. (the “Indenture”) of TCS’ election to redeem all of the 7.75% convertible notes due 2018 issued by TCS pursuant to the terms of the Indenture 30 days after the date that the Merger is consummated and (ii) to take such actions required to be taken by the Indenture in order to satisfy and discharge TCS’ obligation thereunder; provided that Comtech or Purchaser has provided funds to TCS in an amount sufficient to pay, or otherwise pay on behalf of TCS, the amount requested to redeem all of the Convertible Notes, together with all prepayment, redemption or similar fees that may be payable in connection therewith.
Termination.   The Merger Agreement may be terminated and the Offer may be abandoned at any time prior to the Acceptance Time and the Merger may be abandoned at any time prior to the Effective Time as follows:
(i)
by mutual written consent of Comtech and TCS;
(ii)
by either Comtech or TCS if (a) the Acceptance Time has not occurred on or before the End Date, or (b) if any governmental authority of competent jurisdiction, located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Parent or any of its subsidiaries engage in material business activities, shall have enacted, entered, promulgated or enforced any order or law permanently enjoining, restraining, prohibiting or making illegal the acceptance for payment of, or payment for, Shares pursuant to the Offer or the consummation of the Merger (which in either case has become final and non-appealable); provided, that the right to so terminate the Merger Agreement will not be available to any party whose breach or failure to perform or comply with any obligation under the Merger Agreement resulted in or was a proximate cause of  (1) the issuance of any such order, or (2) the failure of the Acceptance Time to occur on or before the End Date;
(iii)
by TCS, prior to the Acceptance Time, in the event that (a) TCS is not then in material breach of the Merger Agreement, (b) Comtech and/or Purchaser shall have violated or breached any of their respective covenants, representations or warranties under the Merger Agreement, which would, or would reasonably be expected to, prevent the consummation of the Merger or the other transactions contemplated by the Merger Agreement from occurring on or prior to the End Date, and (c) such violation or breach described in clause (b) is not capable of being cured by the End Date or if curable, is not cured by the 30th day following TCS’ delivery of written notice to Comtech of such violation or breach;
(iv)
by Comtech, prior to the Acceptance Time, in the event that (a) Comtech and Purchaser are not then in material breach of the Merger Agreement, (b) TCS shall have violated or breached any of its covenants, representations or warranties under the Merger Agreement, which would, or would reasonably be expected to, give rise to the failure of the Offer Conditions, and (c) such violation or breach described in clause (b) is not capable of being cured by the End Date or if curable, is not cured by the 30th day following Comtech’s delivery of written notice to TCS of such violation or breach (a “TCS Breach Termination”);
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(v)
by TCS, prior to the Acceptance Time, in order to enter into an Alternative Acquisition Agreement with respect to a Superior Proposal, provided that substantially concurrent with the termination of the Merger Agreement, TCS enters into an Alternative Acquisition Agreement providing for a Superior Proposal and concurrently with such termination, TCS pays Comtech the Company Termination Fee (an “Alternative Transaction Termination”); or
(vi)
by Comtech, prior to the Acceptance Time, in the event that (a) the TCS Board shall have effected a TCS Adverse Recommendation Change or (b) TCS Board fails to publicly recommend against any Acquisition Proposal or fails to reaffirm (publicly, if so requested by Comtech or Purchaser) the TCS Board Recommendation, in each case, within 10 business days of the written request of Comtech to do so; provided, that Comtech and Purchaser, collectively may make only one such request with respect to any such Acquisition Proposal and each material modification thereto, and three such requests in the aggregate (a “TCS Board Termination”).
Effect of Termination and Termination Fees.   If the Merger Agreement is terminated, the Merger Agreement will be null and void and of no effect (other than the Nondisclosure Agreement (as defined below) and certain other specified provisions in the Merger Agreement) and, subject to the payment of certain termination fees described below, there will be no liability or obligation on the part of Comtech, Purchaser or TCS or their respective directors, officers, members, managers, employees, agents or representatives; provided that no party will be relieved from any liability or damages resulting from any fraud or willful and material breach of the Merger Agreement that occurs prior to or in connection with such termination.
Company Termination Fee.   In the event that the Merger Agreement is terminated by Comtech due to a TCS Board Termination or by TCS due to an Alternative Transaction Termination, then TCS shall pay, or cause to be paid, to Comtech, $10,200,000 (the “Company Termination Fee”) as promptly as practicable (in any event, on or before the third business day) following the date of such termination (in the case of a TCS Board Termination) or concurrently with such termination (in the case of an Alternative Transaction Termination).
In the event the Merger Agreement is terminated by Comtech or TCS due to the Acceptance Time not occurring before the End Date (subject to certain limited exceptions) or by Comtech due to a TCS Breach Termination, and, in any such case, following the date of the Merger Agreement and prior to such termination, an Acquisition Proposal shall have been publicly announced and not publicly withdrawn prior to termination of the Merger Agreement and within 12 months following such termination, TCS enters into a definitive agreement with respect to any Competing Acquisition Transaction (as defined below) that is thereafter consummated, TCS shall pay, or cause to be paid, to Comtech, the Company Termination Fee prior to or concurrently with the consummation of such transaction.
A “Competing Acquisition Transaction” has the same meaning as an “Acquisition Transaction” except that all references therein to “20%” shall be deemed to be references to “50%”.
Expenses.   All fees and expenses incurred in connection with the Merger Agreement, the Offer, the Merger and the other transactions contemplated by the Merger Agreement will be paid by the party incurring such fees or expenses, whether or not the Offer or the Merger is consummated.
Nondisclosure Agreement.   Prior to entering into the Merger Agreement, Comtech and TCS entered into a Confidentiality and Non-Disclosure Agreement, dated as of July 13, 2015 (the “Nondisclosure Agreement”). As a condition to being furnished confidential information of TCS, Comtech agreed, among other things, to keep such confidential information confidential and to use it only for specified purposes. The Nondisclosure Agreement also contains a customary “standstill” provision that became inapplicable upon execution of the Merger Agreement. Under the Merger Agreement, the other provisions of the Nondisclosure Agreement remain in full force and effect in accordance with its terms. This summary of the Nondisclosure Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Nondisclosure Agreement, which is filed as Exhibit (d)(4) to the Schedule TO and is incorporated herein by reference.
Tender and Support Agreements.   Concurrently with the execution of the Merger Agreement, Comtech, Purchaser, TCS and each of Maurice B. Tosé, the Chairman, Chief Executive Officer and President of TCS, and Jon B. Kutler, a director of TCS, in their capacity as record or beneficial owners of
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Shares, as applicable, entered into Tender and Support Agreements (together, the “Tender and Support Agreements”). The outstanding Shares subject to the Tender and Support Agreements represented, as of December 3, 2015, approximately 12.8% of the total outstanding Shares. Pursuant to the Tender and Support Agreements, each of the individuals agreed, among other things, subject to the termination of their respective Tender and Support Agreement, to (i) tender in the Offer all Shares held of record or beneficially owned or thereafter acquired by them, as applicable in accordance with the terms of their Tender and Support Agreements, (ii) vote such Shares against any Acquisition Proposal or any other proposal made in opposition to the adoption of the Merger Agreement and against any agreement, amendment of the organizational documents of TCS or other action or transaction, in each case, that is intended to, or that could reasonably be expected to prevent or impede, interfere with or materially delay the consummation of the Offer or Merger, (iii) appoint Comtech as their proxy to vote such Shares accordingly, (iv) subject to certain exceptions, not otherwise transfer any of their Shares, (v) waive and not exercise or assert any dissenters, appraisal or similar rights in connection with the Merger, and (vi) not take certain other actions inconsistent with their obligations under the applicable Tender and Support Agreement. The Tender and Support Agreements will terminate upon the earliest to occur of  (a) the Effective Time, (b) termination of the Merger Agreement in accordance with its terms, (c) the date on which the TCS Board makes a TCS Adverse Recommendation Change by majority vote, without counting the vote of the stockholder that is party to the applicable Tender and Support Agreement, (d) the mutual written consent of all the parties to the applicable Tender and Support Agreement and (e) the date that is 18 months following the date of the Tender and Support Agreements. This summary of the Tender and Support Agreements does not purport to be complete and is qualified in its entirety by reference to the complete text of the Tender and Support Agreements, which are filed as Exhibits (d)(2) and (d)(3) to the Schedule TO and are incorporated herein by reference.
Teaming Agreements.   On each of March 25, 2010, May 18, 2011 and April 9, 2013, a Comtech subsidiary, Comtech Systems, Inc. (“CSI”), entered into separate teaming agreements with TCS (collectively, and as thereafter amended, supplemented or modified, the “Teaming Agreements”). The Teaming Agreements relate to the “WWSS IDIQ” contract vehicle and Global Tactical Advanced Communication Systems (GTACS) Programs, each of which is a multiple award contract vehicle (together, the “Programs”), including the manufacture and sale of short range troposcatter communications equipment relating thereto (specifically “SIPR/NIPR Access Point (SNAP) VSAT” terminals and other related equipment). The purpose of the Teaming Agreements is to establish a teaming relationship between the parties to offer the United States government a combination of capabilities to achieve optimum performance, cost and delivery for the requirements of the applicable Program, which includes the joint preparation of proposals in response to the solicitation and for the work to be performed under a resultant contract with the United States government or one of its affiliates, which may be implemented by one or more of the following means: (i) task orders under the contracts for either Program; (ii) other contract vehicle opportunities; or (iii) separate open market transactions. CSI serves as the subcontractor under each Teaming Agreement and has agreed to provide, among other things, certain technical, management and pricing proposals for services in support of TCS’ proposed performance of projects in respect of each Program.
This summary of the Teaming Agreements does not purport to be complete and is qualified in its entirety by reference to the complete text of the Teaming Agreements, which are filed as Exhibits (d)(5), (d)(6) and (d)(7) to the Schedule TO and are incorporated herein by reference.
12.
Source and Amount of Funds
Comtech, the parent company of Purchaser, will provide Purchaser with sufficient funds to pay for all Shares accepted for payment in the Offer or to be acquired in the Merger. We estimate that the total amount of funds necessary to purchase all issued and outstanding Shares and other equity-based interests of TCS pursuant to the Offer and the Merger will be approximately $339.7 million. The Offer is not conditioned upon any financing arrangements.
Comtech intends to finance the acquisition of Shares in the Offer and Merger with a combination of cash on hand and the proceeds from a loan facility in the amount of up to $400.0 million.
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In addition, in connection with the Merger Agreement, on November 22, 2015, Comtech entered into a commitment letter (the “Commitment Letter”) with Citibank, N.A. and its affiliates (the “Commitment Parties”), pursuant to which, among other things, the Commitment Parties have committed to provide Comtech with a loan facility in the amount of up to $400.0 million to finance, in part, the acquisition of TCS (the “Financing”). The Commitment Parties’ commitment to provide the Financing is subject to various conditions, including (i) consummation of the Merger in accordance with the Merger Agreement, (ii) the negotiation and execution of definitive documentation consistent with the Commitment Letter, (iii) delivery of certain audited, unaudited and pro forma financial statements, (iv) the absence of a material adverse effect on TCS, (v) the accuracy of specified representations and warranties of TCS in the Merger Agreement and specified representations and warranties of Comtech to be set forth in the definitive loan documents, and (vi) other customary closing conditions.
This summary of the Commitment Letter does not purport to be complete and is qualified in its entirety by reference to the complete text of the Commitment Letter, which is filed as Exhibit (b) to the Schedule TO and is incorporated herein by reference.
13.
Conditions of the Offer
For the purposes of this Section 13, capitalized terms used but not defined herein have the meanings set forth in the Merger Agreement. Notwithstanding any other provision of the Offer, Purchaser shall not be required to accept for payment or, subject to any applicable rules and regulations of the SEC including Rule 14e-1 promulgated under the Exchange Act, pay for any validly tendered Shares if  (a) the Minimum Condition or the Termination Condition shall not have been satisfied at the Expiration Date, (b) any applicable waiting period (including any extension thereof) under the HSR Act with respect to the Offer or the Merger has not expired or been terminated at or prior to the Expiration Date or (c) any of the following conditions exist or has occurred and is continuing at the Expiration Date:
(i)
any governmental authority of competent jurisdiction, located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities, shall have enacted, entered, promulgated or enforced any Order (whether temporary, preliminary or permanent) or Law which is in effect that prohibits, declares unlawful, enjoins or otherwise prevents the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement;
(ii)
(a) the representations and warranties of TCS contained in Sections 3.01 (Organization, Standing and Corporate Power) (solely as it relates to the due incorporation and valid existence of the Company), 3.02 (Authority) and Section 3.04(b) and (d) (Capitalization) of the Merger Agreement shall not be true and correct in all material respects as of the date of the Merger Agreement and as of immediately prior to the expiration of the Offer as though made as of such time (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), (b) the representations and warranties of TCS contained in Section 3.04(a) and (c) (Capitalization) of the Merger Agreement shall not be true and correct in all but de minimis respects as of the date of the Merger Agreement and as of immediately prior to the expiration of the Offer as though made as of such time (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), (c) the representation and warranty of TCS contained in the last sentence of Section 3.09 (No Material Adverse Effect) of the Merger Agreement shall not be true and correct in all respects as of the date of the Merger Agreement and as of immediately prior to the expiration of the Offer as though made as of such time and (d) any other representations and warranties of TCS contained in the Merger Agreement shall not be true and correct (without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect set forth therein) as of the date of the Merger Agreement and as of immediately prior to the expiration of the Offer as though made as of such time (except to the extent such representations and warranties expressly relate to a specified date, in which case as of such specified date), except, in the case of this clause (d), for such failures to be true and correct that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;
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(iii)
TCS shall have failed to perform, or comply with, in all material respects all obligations required to be performed by or complied with by it under the Merger Agreement at or prior to the expiration of the Offer;
(iv)
Comtech shall not have received a certificate signed by an executive officer of TCS certifying that none of the conditions specified set forth in paragraphs (ii) and (iii) of this Section 13 — “Conditions of the Offer” have occurred; or
(v)
two business days (or such fewer number of business days that remain between the end of the Marketing Period and the End Date) shall not have passed after completion of the Marketing Period.
The foregoing conditions, other than the Minimum Condition and the Termination Condition, are for the sole benefit of Comtech and Purchaser, may be asserted by Comtech or Purchaser regardless of the circumstances giving rise to such condition and may be waived by Comtech or Purchaser in whole or in part at any time and from time to time in the sole and absolute discretion of Comtech or Purchaser, subject in each case to the terms of the Merger Agreement. The failure by Comtech or Purchaser at any time to exercise any of the foregoing rights shall not be deemed a waiver of any such right and, each such right shall be deemed an ongoing right which may be asserted at any time and from time to time.
14.
Dividends and Other Distributions
The Merger Agreement provides that, from the date of the Merger Agreement until the earlier of the Effective Time or the termination of the Merger Agreement in accordance with its terms, TCS is not permitted to declare, set aside, or pay any dividend or distribution (whether in cash, stock, property or any combination thereof) in respect of any shares of its capital stock or other securities without the prior written consent of Comtech. See Section 11 — “Purpose of the Offer and Plans for TCS; Merger Agreement and Other Agreements — The Merger Agreement — Conduct of Business.”
15.
Certain Legal Matters
General.   Except as otherwise set forth in this Offer to Purchase, based on our review of TCS’ publicly available SEC filings and other information regarding TCS, we are not aware of any governmental licenses or regulatory permits that appear to be material to the business of TCS and that might be adversely affected by the acquisition of Shares by us pursuant to the Offer or, except as set forth below, of any approval or other action by any governmental, administrative or regulatory agency or authority that would be required for the acquisition or ownership of Shares by us pursuant to the Offer. In addition, except as set forth below, we are not aware of any filings, approvals or other actions by or with any governmental authority or administrative or regulatory agency that would be required for our acquisition or ownership of the Shares. Should any such approval or other action be required, we currently expect that such approval or action, except as described below under “State Takeover Laws,” would be sought or taken. There can be no assurance that any such approval or action, if needed, would be obtained or, if obtained, that it would be obtained without substantial conditions, and there can be no assurance that, in the event that such approvals were not obtained or such other actions were not taken, adverse consequences might not result to TCS or our business or that certain parts of TCS or our business might not have to be disposed of or held separately. In such an event, we may not be required to purchase any Shares in the Offer. See Section 13 — “Conditions of the Offer.”
Antitrust Compliance.   Under the HSR Act, and the related rules and regulations that have been issued by the Federal Trade Commission (the “FTC”), certain transactions having a value above specified thresholds may not be consummated until specified information and documentary material (“Premerger Notification and Report Form”) have been furnished to the FTC and the Antitrust Division of the Department of Justice (“Antitrust Division”) and certain waiting period requirements have been satisfied. The requirements of the HSR Act apply to the acquisition of Shares in the Offer and the Merger.
Under the HSR Act and the rules and regulations promulgated thereunder, the purchase of Shares in the Offer cannot be completed until the expiration of a 15 calendar day waiting period following the filing by Comtech, as the ultimate parent entity of Purchaser, of a Premerger Notification and Report Form concerning the Offer with the FTC and the Antitrust Division, unless the waiting period is earlier
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terminated by the FTC and the Antitrust Division. Comtech filed the Premerger Notification and Report Forms with the FTC and the Antitrust Division in connection with the purchase of the Shares in the Offer and the Merger on December 7, 2015. The required waiting period with respect to the Offer and the Merger will expire at 11:59 p.m., New York City time, on the 15th calendar day following the date such filing occurred unless the FTC or the Antitrust Division issues a request for additional information and documentary material (a “Second Request”) prior to that time. If within the 15 calendar day waiting period either the FTC or the Antitrust Division were to issue a Second Request, the waiting period with respect to the Offer and the Merger would be extended until 10 calendar days following the date of substantial compliance by Comtech with that request, unless the FTC or the Antitrust Division terminated the additional waiting period before its expiration. After the expiration of the 10 calendar day waiting period, the closing of the transaction could be stayed only by a court or administrative order. Comtech also may agree with the FTC or the Antitrust Division that it will not close the transaction for a certain amount of time in order to allow the completion of its antitrust review. Complying with a Second Request can take a significant period of time. Although TCS is required to file certain information and documentary materials with the FTC and the Antitrust Division in connection with the Offer, neither TCS’ failure to make those filings nor a Second Request or Civil Investigative Demand issued to TCS from the FTC or the Antitrust Division will extend the waiting periods with respect to the purchase of Shares in the Offer and the Merger. The Merger will not require an additional filing under the HSR Act if Comtech owns at least 50% of the outstanding Shares at the time of the Merger or if the Merger occurs within one year after the HSR Act waiting period applicable to the Offer expires or is terminated.
The FTC and the Antitrust Division will consider the legality under the antitrust laws of Purchaser’s proposed acquisition of TCS. At any time before or after Purchaser’s acceptance for payment of Shares pursuant to the Offer, if the Antitrust Division or the FTC believes that the Offer would violate the U.S. federal antitrust laws by substantially lessening competition in any line of commerce affecting U.S. consumers, the FTC and the Antitrust Division have the authority to challenge the transaction by seeking a federal court order enjoining the transaction or, if Shares have already been acquired, requiring disposition of such Shares, or the divestiture of substantial assets of Comtech, Purchaser, TCS, or any of their respective subsidiaries or affiliates. U.S. state attorneys general and private persons may also bring legal action under the antitrust laws seeking similar relief or seeking conditions to the completion of the Offer. Although Purchaser and Comtech believe that the consummation of the Offer will not violate any antitrust laws, there can be no assurance that a challenge to the Offer on antitrust grounds will not be made or, if a challenge is made, what the result will be. If any such action is threatened or commenced by the FTC, the Antitrust Division or any state or any other person, Purchaser may not be obligated to consummate the Offer or the Merger. See Section 13 — “Conditions of the Offer.”
State Takeover Laws.   TCS is incorporated under the laws of the State of Maryland and is governed by the MGCL and its charter and bylaws.
Business Combinations.   Under the MGCL, certain “business combinations” between a Maryland corporation and an “interested stockholder” or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange, or, in circumstances specified in the statute, an asset transfer, issuance or reclassification of equity securities. An interested stockholder is defined as: (i) any person who beneficially owns directly or indirectly 10% or more of the voting power of the corporation’s outstanding voting stock; or (ii) an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner directly or indirectly of 10% or more of the voting power of the then outstanding voting stock of the corporation.
A person is not an interested stockholder if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. In approving a transaction, however, the board of directors may provide that its approval is subject to compliance, at or after the time of the approval, with any terms and conditions determined by it.
After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder or an affiliate of an interested stockholder that was not exempted from the operation of the statute prior to the person becoming an interested stockholder generally must be recommended by
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the board of directors of the corporation and approved by the affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation, voting together as a single class; and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or which are held by an affiliate or associate of the interested stockholder. These super-majority voting requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland Law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. These provisions of the MGCL do not apply, however, to business combinations that are approved or exempted by a corporation’s board of directors prior to the time that the interested stockholder becomes an interested stockholder. The TCS Board has approved the Offer and the Merger, and the business combination act will not apply to the Merger Agreement and the transactions contemplated thereby (including the Offer and the Merger.)
Control Shares Acquisitions.   The MGCL provides that a holder of  “control shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to those shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter. Shares of stock of the corporation in which the acquirer, officers of the corporation or directors who are employees of the corporation are entitled to exercise or direct the exercise of voting power in the election of directors are excluded from shares entitled to vote on the matter. Except as otherwise specified in Title 3, Subtitle 7, a “control share acquisition” means the acquisition of control shares. “Control shares” are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer is entitled to exercise or direct the exercise of voting power except solely by virtue of a revocable proxy, would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: (i) one-tenth or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more of all voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A “control share acquisition” means the acquisition, directly or indirectly, of ownership of, or the power to direct the exercise of voting power with respect to, issued and outstanding control shares, subject to certain exceptions.
A person who has made or proposes to make a “control share acquisition,” upon satisfaction of certain conditions (including an undertaking to pay expenses), may compel the board of directors to call a special meeting of stockholders to be held within 50 days of such demand to consider the voting rights of the shares.
If voting rights are not approved at the meeting or if the acquirer does not deliver an acquiring person statement as required by statute, then, subject to certain conditions and limitations, the corporation may redeem any or all of the control shares, except those for which voting rights have previously been approved, for fair value determined, without regard to voting rights, as of the date of the last control share acquisition or of any special meeting of stockholders at which the voting rights of such shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid in the control share acquisition.
The control shares acquisition act does not apply to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or to acquisitions approved or exempted by the charter or bylaws of the corporation by a provision adopted at any time before the acquisition of the shares.
TCS has amended its bylaws to exempt from the provisions of control shares acquisition statute any acquisition of shares of TCS by Maurice B. Tosé pursuant to or in connection with the transactions contemplated by the Merger Agreement. Prior to the Effective Time, the Company will further amend its bylaws to exempt from the provisions of Title 3, Subtitle 7 any acquisition of any shares of TCS by any person or entity pursuant to or in connection with the transactions contemplated by the Merger Agreement.
A number of states have adopted laws and regulations applicable to attempts to acquire securities of corporations that are incorporated, or have substantial assets, stockholders, principal executive offices or
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principal places of business, or whose business operations otherwise have substantial economic effects, in such states. In 1982, in Edgar v. MITE Corp, the Supreme Court of the United States invalidated on constitutional grounds the Illinois Business Takeover Statute which, as a matter of state securities law, made takeovers of corporations meeting certain requirements more difficult. However, in 1987, in CTS Corp. v. Dynamics Corp. of America, the Supreme Court held that the State of Indiana could, as a matter of corporate law, constitutionally disqualify a potential acquirer from voting shares of a target corporation without the prior approval of the remaining stockholders where, among other things, the corporation is incorporated, and has a substantial number of stockholders, in the state. Subsequently, in TLX Acquisition Corp. v. Telex Corp., a U.S. federal district court in Oklahoma ruled that the Oklahoma statutes were unconstitutional as applied to corporations incorporated outside Oklahoma in that they would subject such corporations to inconsistent regulations. Similarly, in Tyson Foods, Inc. v. McReynolds, a U.S. federal district court in Tennessee ruled that four Tennessee takeover statutes were unconstitutional as applied to corporations incorporated outside Tennessee. This decision was affirmed by the United States Court of Appeals for the Sixth Circuit. In December 1988, a U.S. federal district court in Florida held in Grand Metropolitan PLC v. Butterworth that the provisions of the Florida Affiliated Transactions Act and the Florida Control Share Acquisition Act were unconstitutional as applied to corporations incorporated outside of Florida.
TCS, directly or through subsidiaries, conducts business in a number of states throughout the United States, some of which have enacted takeover laws. We do not know whether any of these laws will, by their terms, apply to the Offer or the Merger and have not attempted to comply with any such laws. Should any person seek to apply any state takeover law, we will take such action as then appears desirable, which may include challenging the validity or applicability of any such statute in appropriate court proceedings. In the event any person asserts that the takeover laws of any state are applicable to the Offer or the Merger, and an appropriate court does not determine that it is inapplicable or invalid as applied to the Offer or the Merger, we may be required to file certain information with, or receive approvals from, the relevant state authorities. In addition, if enjoined, we may be unable to accept for payment any Shares tendered pursuant to the Offer, or be delayed in continuing or consummating the Offer and the Merger. In such case, we may not be obligated to accept for payment any Shares tendered in the Offer. See Section 13 — “Conditions of the Offer.”
Appraisal Rights.   No appraisal rights are available to the holders of Shares in connection with the Offer or the Merger. Pursuant to the Merger Agreement, each Share outstanding immediately prior to the effective time of the Merger will be converted automatically into the right to receive the Merger Consideration.
“Going Private” Transactions.   Rule 13e-3 under the Exchange Act is applicable to certain “going private” transactions and may under certain circumstances be applicable to the Merger. However, Rule 13e-3 will be inapplicable if  (a) the Shares are deregistered under the Exchange Act prior to the Merger or another business combination or (b) the Merger or other business combination is consummated within one year after the purchase of the Shares pursuant to the Offer and the amount paid per Share pursuant to the Merger or other business combination is at least equal to the amount paid per Share in the Offer. Neither Comtech nor Purchaser believes that Rule 13e-3 will be applicable to the Merger.
16.
Fees and Expenses
We have retained the Depositary and the Information Agent in connection with the Offer. Each of the Depositary and the Information Agent will receive customary compensation, reimbursement for fees and reasonable out-of-pocket expenses, including indemnification against certain liabilities in connection with the Offer, including liabilities under the federal securities laws.
As part of the services included in such retention, the Information Agent may contact holders of Shares by personal interview, mail, electronic mail, telephone and other methods of electronic communication and may request brokers, dealers, commercial banks, trust companies and other nominees to forward the Offer materials to beneficial holders of Shares.
Except as set forth above, we will not pay any fees or commissions to any broker or dealer or other person for soliciting tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks, trust companies and other nominees will upon request be reimbursed by us for customary mailing and handling expenses incurred by them in forwarding the offering material to their customers.
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17.
Miscellaneous
We are not aware of any jurisdiction where the making of the Offer is prohibited by any administrative or judicial action pursuant to any valid state statute. If we become aware of any valid state statute prohibiting the making of the Offer or the acceptance of the Shares, we will make a good faith effort to comply with that state statute or seek to have such statute declared inapplicable to the Offer. If, after a good faith effort, we cannot comply with the state statute, we will not make the Offer to, nor will we accept tenders from or on behalf of, the holders of Shares in that state. In any jurisdiction where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction.
We have filed with the SEC the Schedule TO (including exhibits) in accordance with the Exchange Act, furnishing certain additional information with respect to the Offer and may file amendments thereto. In addition, TCS has filed the Schedule 14D-9 (including exhibits) in accordance with the Exchange Act setting forth its recommendation and furnishing certain additional related information. The Schedule TO and the Schedule 14D-9, and any amendments thereto, including exhibits, may be examined and copies may be obtained from the SEC in the manner set forth in Section 8 — “Certain Information Concerning TCS” — “Available Information.”
No person has been authorized to give any information or make any representation on behalf of Purchaser or Comtech not contained in this Offer to Purchase, the Letter of Transmittal or the Notice of Guaranteed Delivery and, if given or made, such information or representation must not be relied upon as having been authorized. No broker, dealer, commercial bank, trust company or other nominee shall be deemed to be the agent of Comtech, Purchaser, TCS, the Information Agent or the Depositary or any of their affiliates for the purpose of the Offer. Neither delivery of this Offer to Purchase nor any purchase pursuant to the Offer will, under any circumstances, create any implication that there has been no change in the affairs of Comtech, Purchaser, TCS or any of their respective subsidiaries since the date as of which information is furnished or the date of this Offer to Purchase.
Neither the Offer, nor this Offer to Purchase, nor the Letter of Transmittal, nor the Notice of Guaranteed Delivery constitutes a solicitation of proxies for any meeting of TCS stockholders. Any such solicitation that we or any of our affiliates might seek would be made only pursuant to separate proxy materials complying with the requirements of Section 14(a) of the Exchange Act.
Typhoon Acquisition Corp.
December 7, 2015
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SCHEDULE A
INFORMATION CONCERNING MEMBERS OF THE BOARDS OF DIRECTORS AND THE EXECUTIVE OFFICERS OF COMTECH AND PURCHASER
Comtech
Set forth below are the name, business address and current principal occupation or employment, and material occupations, positions, offices or employment for the past five years of each director and executive officer of Comtech. Except as otherwise noted, positions specified are positions with Comtech. All of the individuals listed below are citizens of the United States of America.
Comtech Board of Directors
Name
Address
Principal Occupation or Employment
Dr. Stanton D. Sloane Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Chief Executive Officer and President (2015 − current)
Former President and Chief Executive Officer of Decision Sciences International Corporation (2011 − 2015)
Former President and Chief Executive Officer of SRA International, Inc. (2007 − 2011)
Fred Kornberg Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Executive Chairman (2015)
Chief Executive Officer and President (1976 − 2014)
Edwin Kantor Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Chairman, S2K Partners LLC (2012 − current) Former Vice Chairman of Investment Banking at Cantor Fitzgerald & Co. (2009 − 2012)
Ira S. Kaplan Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Former President and Chief Operating Officer of EDO Corporation (1998 − 2000)
Robert G. Paul Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Former Group President, Base Station Subsystems, for Andrew Corporation (2003 − 2004)
Lawrence J. Waldman Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Advisor and Former Partner-in-Charge of Commercial Audit Practice Development for Long Island at EisnerAmper LLP (2012 − current)
Former Partner-in-Charge of Commercial Audit Practice Development for Holtz Rubenstein Reminick, LLP (2006 − 2011)
A-1

Name
Address
Principal Occupation or Employment
Comtech Officers
Dr. Stanton D. Sloane Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Chief Executive Officer and President (2015 − current)
Former President and Chief Executive Officer of Decision Sciences International Corporation (2011 − 2015)
Former President and Chief Executive Officer of SRA International, Inc. (2007 − 2011)
Fred Kornberg Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Executive Chairman (2015)
Chief Executive Officer and President (1976 − 2014)
Michael D. Porcelain Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Senior Vice President and Chief Financial Officer (2006 − current)
Richard L. Burt Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Senior Vice President, President of Comtech Systems, Inc. (1998 − current)
John Branscum Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Senior Vice President, President of Comtech EF Data Corp. (2015 − current)
President of Xicom Technology, Inc. (2009 − current)
A-2

Purchaser
Set forth below are the name, business address and current principal occupation or employment, and material occupations, positions, offices or employment for the past five years of each director and executive officer of Purchaser. Except as otherwise noted, positions specified are positions with Comtech. All of the individuals listed below are citizens of the United States of America.
Purchaser Board of Directors
Name
Address
Principal Occupation or Employment
Dr. Stanton D. Sloane Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Chief Executive Officer and President (2015 − current)
Former President and Chief Executive Officer of Decision Sciences International Corporation (2011 − 2015)
Former President and Chief Executive Officer of SRA International, Inc. (2007 − 2011)
Michael D. Porcelain Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Senior Vice President and Chief Financial Officer (2006 − current)
Patrick O’Gara Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Vice President of Tax and Secretary (2005 − current)
Purchaser Executive Officers
Name
Address
Principal Occupation or Employment
Dr. Stanton D. Sloane Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Chief Executive Officer and President (2015 − current)
Former President and Chief Executive Officer of Decision Sciences International Corporation (2011 − 2015)
Former President and Chief Executive Officer of SRA International, Inc. (2007 − 2011)
Michael D. Porcelain Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Senior Vice President and Chief Financial Officer (2006 − current)
Patrick O’Gara Comtech Telecommunications Corp. 68 South Service Road, Suite 230,
Melville, NY 11747
Vice President of Tax and Secretary (2005 − current)
A-3



Exhibit (a)(1)(B)​
Letter of Transmittal To Tender Shares of Common Stock
of
TELECOMMUNICATION SYSTEMS, INC.
at $5.00 Net Per Share in Cash Without Interest Pursuant to the Offer to Purchase dated December 7, 2015 by
Typhoon Acquisition Corp., a wholly owned subsidiary of Comtech Communications Corp.
The undersigned represents that I (we) have full authority to surrender without restriction the certificate(s) listed below. You are hereby authorized and instructed to deliver to the address indicated below (unless otherwise instructed in the boxes in the following page) a check representing a cash payment for shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and/or Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc. (“TCS”) tendered pursuant to this Letter of Transmittal, at a price of   $5.00 per share, net to the seller in cash, without interest and less any required withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated December 7, 2015 (as it may be amended or supplemented from time to time, the “Offer to Purchase” and, together with this Letter of Transmittal, as it may be amended or supplemented from time to time, the “Offer”).
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME,
AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED
(SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”) OR EARLIER TERMINATED.
Method of delivery of the certificate(s) is at the option and risk of the owner thereof. See Instruction 2.
Mail or deliver this Letter of Transmittal, together with the certificate(s) representing your shares, to:
The Depositary for the Offer is:
[MISSING IMAGE: lg_astlinkgroupnet-grey.jpg]
If delivering by mail:
If delivering by hand or courier:
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
P.O. Box 2042
New York, New York 10272-2042
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
6201 15th Avenue
Brooklyn, New York 11219
Pursuant to the offer of Typhoon Acquisition Corp. to purchase any and all outstanding Shares of TCS, the undersigned encloses herewith and surrenders the following certificate(s) representing Shares of TCS.
DESCRIPTION OF SHARES SURRENDERED
Name(s) and Address(es) of Registered Owner(s)
(If blank, please fill in exactly as name(s) appear(s)
on share certificate(s))
Shares Surrendered
(attached additional list if necessary)
Certificated Shares**
Certificate
Number(s)*
Total Number
of Shares
Represented by
Certificate(s)*
Number of
Shares
Surrendered**
Book Entry
Shares
Surrendered
   
   
   
   
   
   
   
   
   
Total Shares
*
Need not be completed by book-entry shareholders.
**
Unless otherwise indicated, it will be assumed that all shares of common stock represented by certificates described above are being surrendered hereby.

PLEASE READ THE INSTRUCTIONS ACCOMPANYING THIS LETTER OF TRANSMITTAL CAREFULLY BEFORE COMPLETING THIS LETTER OF TRANSMITTAL.
IF YOU WOULD LIKE ADDITIONAL COPIES OF THIS LETTER OF TRANSMITTAL OR ANY OF THE OTHER OFFERING DOCUMENTS, YOU SHOULD CONTACT THE INFORMATION AGENT, INNISFREE M&A INCORPORATED, TOLL-FREE AT (888) 750-5834 (OR AT (212) 750-5833 FOR BANKS AND BROKERS).
You have received this Letter of Transmittal in connection with the offer of Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), to purchase any and all outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of  $5.00 per Share, net to the seller in cash (the “Offer Price”), without interest and less any required withholding taxes, as described in the Offer to Purchase, dated December 7, 2015 (as it may be amended or supplemented from time to time, the “Offer to Purchase” and, together with this Letter of Transmittal, as it may be amended or supplemented from time to time, the “Offer”).
You should use this Letter of Transmittal to deliver to American Stock Transfer & Trust Company, LLC (the “Depositary”) Shares represented by stock certificates, or held in book-entry form on the books of TCS, for tender. If you are delivering your Shares by book-entry transfer to an account maintained by the Depositary at The Depository Trust Company (“DTC”), you must use an Agent’s Message (as defined in Instruction 2 below). In this Letter of Transmittal, stockholders who deliver certificates representing their Shares are referred to as “Certificate Stockholders,” and stockholders who deliver their Shares through book-entry transfer are referred to as “Book-Entry Stockholders.”
If certificates for your Shares are not immediately available or you cannot deliver your certificates and all other required documents to the Depositary prior to the Expiration Date or you cannot complete the book-entry transfer procedures prior to the Expiration Date, you may nevertheless tender your Shares according to the guaranteed delivery procedures set forth in Section 3 of the Offer to Purchase. See Instruction 2 below. Delivery of documents to DTC will not constitute delivery to the Depositary.

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER TO THE ACCOUNT MAINTAINED BY THE DEPOSITARY WITH DTC AND COMPLETE THE FOLLOWING (ONLY FINANCIAL INSTITUTIONS THAT ARE PARTICIPANTS IN DTC MAY DELIVER SHARES BY BOOK-ENTRY TRANSFER):
Name of Tendering Institution:
DTC Participant Number:
Transaction Code Number:

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE DEPOSITARY AND COMPLETE THE FOLLOWING (PLEASE ENCLOSE A PHOTOCOPY OF SUCH NOTICE OF GUARANTEED DELIVERY):
Name(s) of Registered Owner(s):
Window Ticket Number (if any) or DTC Participant Number:
Date of Execution of Notice of Guaranteed Delivery:
Name of Institution which Guaranteed Delivery:
2

NOTE: SIGNATURES MUST BE PROVIDED BELOW.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
Ladies and Gentlemen:
The undersigned hereby tenders to Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), the above-described shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and/or shares of Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of   $5.00 per Share, net to the seller in cash, without interest and less any required withholding taxes, on the terms and subject to the conditions set forth in the Offer to Purchase, receipt of which is hereby acknowledged, and this Letter of Transmittal (as it may be amended or supplemented from time to time, this “Letter of Transmittal” and, together with the Offer to Purchase, as it may be amended or supplemented from time to time, the “Offer”). The undersigned understands that Purchaser reserves the right to transfer or assign, from time to time, in whole or in part, to one or more of its affiliates, the right to purchase the Shares tendered herewith.
On the terms and subject to the conditions of the Offer (including, if the Offer is extended or amended, the terms and conditions of such extension or amendment), subject to, and effective upon, acceptance for payment and payment for the Shares validly tendered herewith, and not properly withdrawn, prior to the Expiration Date in accordance with the terms of the Offer, the undersigned hereby sells, assigns and transfers to, or upon the order of, Purchaser, all right, title and interest in and to all of the Shares being tendered hereby and any and all cash dividends, distributions, rights, other Shares or other securities issued or issuable in respect of such Shares on or after December 7, 2015 (collectively, “Distributions”). In addition, the undersigned hereby irrevocably appoints American Stock Transfer & Trust Company, LLC (the “Depositary”) the true and lawful agent and attorney-in-fact and proxy of the undersigned with respect to such Shares and any Distributions with full power of substitution (such proxies and power of attorney being deemed to be an irrevocable power coupled with an interest in the tendered shares) to the full extent of such stockholder’s rights with respect to such Shares and any Distributions (a) to deliver certificates representing Shares (the “Share Certificates”) and any Distributions, or transfer of ownership of such Shares and any Distributions on the account books maintained by DTC, together, in either such case, with all accompanying evidence of transfer and authenticity, to or upon the order of Purchaser, (b) to present such Shares and any Distributions for transfer on the books of TCS, and (c) to receive all benefits and otherwise exercise all rights of beneficial ownership of such Shares and any Distributions, all in accordance with the terms and subject to the conditions of the Offer.
The undersigned hereby irrevocably appoints each of the designees of Purchaser the attorneys-in-fact and proxies of the undersigned, each with full power of substitution, to the full extent of such stockholder’s rights with respect to the Shares tendered hereby which have been accepted for payment and with respect to any Distributions. The designees of Purchaser will, with respect to the Shares and any associated Distributions for which the appointment is effective, be empowered to exercise all voting and any other rights of such stockholder, as they, in their sole discretion, may deem proper at any annual, special, adjourned or postponed meeting of TCS stockholders, by written consent in lieu of any such meeting or otherwise. This proxy and power of attorney shall be irrevocable and coupled with an interest in the tendered Shares. Such appointment is effective when, and only to the extent that, Purchaser accepts the Shares tendered with this Letter of Transmittal for payment pursuant to the Offer. Upon the effectiveness of such appointment, without further action, all prior powers of attorney, proxies and consents given by the undersigned with respect to such Shares and any associated Distributions will be revoked and no subsequent powers of attorney, proxies, consents or revocations may be given (and, if given, will not be deemed effective). Purchaser reserves the right to require that, in order for Shares to be deemed validly tendered, immediately upon Purchaser’s acceptance for payment of such Shares, Purchaser must be able to exercise full voting, consent and other rights, to the extent permitted under applicable law, with respect to such Shares and any associated Distributions, including voting at any meeting of stockholders or executing a written consent concerning any matter.
The undersigned hereby represents and warrants that the undersigned has full power and authority to tender, sell, assign and transfer the Shares and any Distributions tendered hereby and, when the same are accepted for payment by Purchaser, Purchaser will acquire good, marketable and unencumbered title thereto, free and clear of all liens, restrictions, charges and encumbrances and the same will not be subject to any adverse claim. The undersigned hereby represents and warrants that the undersigned is the registered owner of the Shares, or the
3

Share Certificate(s) have been endorsed to the undersigned in blank, or the undersigned is a participant in DTC whose name appears on a security position listing as the owner of the Shares. The undersigned will, upon request, execute and deliver any additional documents deemed by the Depositary or Purchaser to be necessary or desirable to complete the sale, assignment and transfer of the Shares and any Distributions tendered hereby. In addition, the undersigned shall promptly remit and transfer to the Depositary for the account of Purchaser any and all Distributions in respect of the Shares tendered hereby, accompanied by appropriate documentation of transfer and, pending such remittance or appropriate assurance thereof, Purchaser shall be entitled to all rights and privileges as owner of any such Distributions and may withhold the entire purchase price or deduct from the purchase price the amount or value thereof, as determined by Purchaser in its sole discretion.
It is understood that the undersigned will not receive payment for the Shares unless and until the Shares are accepted for payment and until the Share Certificate(s) owned by the undersigned are received by the Depositary at the address set forth above, together with such additional documents as the Depositary may require, or, in the case of Shares held in book-entry form, ownership of Shares is validly transferred on the account books maintained by DTC, and until the same are processed for payment by the Depositary.
IT IS UNDERSTOOD THAT THE METHOD OF DELIVERY OF THE SHARES, THE SHARE CERTIFICATE(S) AND ALL OTHER REQUIRED DOCUMENTS (INCLUDING DELIVERY THROUGH DTC) IS AT THE OPTION AND RISK OF THE UNDERSIGNED AND THAT THE RISK OF LOSS OF SUCH SHARES, SHARE CERTIFICATE(S) AND OTHER DOCUMENTS SHALL PASS ONLY AFTER THE DEPOSITARY HAS ACTUALLY RECEIVED THE SHARES OR SHARE CERTIFICATE(S) (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION (AS DEFINED BELOW)). IF DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
All authority conferred or agreed to be conferred pursuant to this Letter of Transmittal shall not be affected by, and shall survive, the death or incapacity of the undersigned and any obligation of the undersigned hereunder shall be binding upon the heirs, executors, administrators, trustees in bankruptcy, personal representatives, successors and assigns of the undersigned. Except as stated in the Offer to Purchase, this tender is irrevocable.
The undersigned understands that the acceptance for payment by Purchaser of Shares tendered pursuant to one of the procedures described in Section 3 of the Offer to Purchase and in the instructions hereto will constitute a binding agreement between the undersigned and Purchaser upon the terms and subject to the conditions of the Offer.
Unless otherwise indicated herein under “Special Payment Instructions,” please issue the check for the purchase price in the name(s) of, and/or return any Share Certificates representing Shares not tendered or accepted for payment to, the registered owner(s) appearing under “Description of Shares Tendered.” Similarly, unless otherwise indicated under “Special Delivery Instructions,” please mail the check for the purchase price and/or return any Share Certificates representing Shares not tendered or accepted for payment (and accompanying documents, as appropriate) to the address(es) of the registered owner(s) appearing under “Description of Shares Tendered.” In the event that both the Special Delivery Instructions and the Special Payment Instructions are completed, please issue the check for the purchase price and/or issue any Share Certificates representing Shares not tendered or accepted for payment (and any accompanying documents, as appropriate) in the name of, and deliver such check and/or return such Share Certificates (and any accompanying documents, as appropriate) to, the person or persons so indicated. Unless otherwise indicated herein in the box titled “Special Payment Instructions,” please credit any Shares tendered hereby or by an Agent’s Message and delivered by book-entry transfer, but which are not purchased, by crediting the account at DTC designated above. The undersigned recognizes that Purchaser has no obligation pursuant to the Special Payment Instructions to transfer any Shares from the name of the registered owner thereof if Purchaser does not accept for payment any of the Shares so tendered.
4

SPECIAL PAYMENT INSTRUCTIONS (See Instructions 1, 4, 5 and 7)
To be completed ONLY if Share Certificate(s) not tendered or not accepted for payment and/or the check for the purchase price in consideration of Shares accepted for payment are to be issued in the name of someone other than the undersigned or if Shares tendered by book-entry transfer which are not accepted for payment are to be returned by credit to an account maintained at DTC other than that designated above.
Issue:  Check and/or  Share Certificates to:
Name:
(Please Print)
Address:
   
   
(Include Zip Code)
   
(Tax Identification or Social Security Number)
Credit Shares tendered by book-entry transfer that are not accepted for payment to the DTC account set forth below.
   
(DTC Account Number)
SPECIAL DELIVERY INSTRUCTIONS (See Instructions 1, 4, 5 and 7)
To be completed ONLY if Share Certificate(s) not tendered or not accepted for payment and/or the check for the purchase price of Shares accepted for payment are to be sent to someone other than the undersigned or to the undersigned at an address other than that shown in the box titled “Description of Shares Tendered” above.
Deliver: Check(s) and/or Share Certificates to:
Name:
(Please Print)
Address:
   
   
(Include Zip Code)
5

IMPORTANT — SIGN HERE
(U.S. Holders Please Also Complete the Enclosed IRS Form W-9)
(Non-U.S. Holders Please Obtain and Complete IRS Form W-8BEN, IRS Form W-8BEN-E, or Other
Applicable IRS Form W-8)
(Holders of Class B Shares Please See Instruction 12)
(Signature(s) of Stockholder(s))
Dated:            , 201__
      (Must be signed by registered owner(s) exactly as name(s) appear(s) on Share Certificate(s) or on a security position listing or by person(s) authorized to become registered owner(s) by certificates and documents transmitted herewith. If signature is by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, please set forth full title and see Instruction 5. For information concerning signature guarantees, see Instruction 1.)
Name(s):
 
(Please Print)
Capacity (full title):
 
Address:
 
   
(Include Zip Code)
Area Code and Telephone Number:
 
Tax Identification or Social Security No.:  
GUARANTEE OF SIGNATURE(S)
(For use by Eligible Institutions only;
see Instructions 1 and 5)
Name of Firm:
 
   
(Include Zip Code)
Authorized Signature:
 
Name:
 
   
(Please Type or Print)
Area Code and Telephone Number:
 
Dated:            , 201__
Place medallion guarantee in space below:
   
6

INSTRUCTIONS
Forming Part of the Terms and Conditions of the Offer
1. Guarantee of Signatures.   Except as otherwise provided below, all signatures on this Letter of Transmittal must be guaranteed by a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of a recognized Medallion Program approved by the Securities Transfer Association, Inc., including the Security Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program and the Stock Exchanges Medallion Program (each, an “Eligible Institution”). Signatures on this Letter of Transmittal need not be guaranteed (i) if this Letter of Transmittal is signed by the registered owner(s) (which term, for purposes of this document, includes any participant in any of DTC’s systems whose name appears on a security position listing as the owner of the Shares) of Shares tendered herewith and such registered owner has not completed the box titled “Special Payment Instructions” or the box titled “Special Delivery Instructions” on this Letter of Transmittal or (ii) if such Shares are tendered for the account of an Eligible Institution. See Instruction 5.
2. Delivery of Letter of Transmittal and Certificates or Book-Entry Confirmations.   This Letter of Transmittal is to be completed by stockholders if Share Certificates are to be forwarded herewith. If tenders are to be made pursuant to the procedures for tender by book-entry transfer set forth in Section 3 of the Offer to Purchase, an Agent’s Message must be utilized. A manually executed facsimile of this document may be used in lieu of the original. Share Certificates representing all physically tendered Shares, or confirmation of any book-entry transfer into the Depositary’s account at DTC of Shares tendered by book-entry transfer (“Book Entry Confirmation”), as well as this Letter of Transmittal properly completed and duly executed with any required signature guarantees, or an Agent’s Message in the case of a book-entry transfer, and any other documents required by this Letter of Transmittal, must be received by the Depositary at its address set forth herein prior to the Expiration Date. Please do not send your Share Certificates directly to Purchaser, Comtech or TCS.
Stockholders whose Share Certificates are not immediately available or who cannot deliver all other required documents to the Depositary prior to the Expiration Date or who cannot complete the procedures for book-entry transfer prior to the Expiration Date may nevertheless tender their Shares by properly completing and duly executing a Notice of Guaranteed Delivery pursuant to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase. Pursuant to such procedure: (i) such tender must be made by or through an Eligible Institution, (ii) a properly completed and duly executed Notice of Guaranteed Delivery substantially in the form provided by Purchaser must be received by the Depositary prior to the Expiration Date, and (iii) Share Certificates representing all tendered Shares, in proper form for transfer (or a Book Entry Confirmation with respect to such Shares), this Letter of Transmittal (or facsimile thereof), properly completed and duly executed with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message), and all other documents required by this Letter of Transmittal, if any, must be received by the Depositary within three NASDAQ trading days after the date of execution of such Notice of Guaranteed Delivery.
A properly completed and duly executed Letter of Transmittal (or facsimile thereof) must accompany each such delivery of Share Certificates to the Depositary.
The term “Agent’s Message” means a message, transmitted through electronic means by DTC to, and received by, the Depositary and forming part of a Book-Entry Confirmation, which states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares which are the subject of such Book-Entry Confirmation that such participant has received and agrees to be bound by the terms of this Letter of Transmittal and that Purchaser may enforce such agreement against the participant. The term “Agent’s Message” also includes any hard copy printout evidencing such message generated by a computer terminal maintained at the Depositary’s office.
THE METHOD OF DELIVERY OF THE SHARES, THIS LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS, INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OF ALL SUCH DOCUMENTS WILL BE DEEMED MADE AND RISK OF LOSS OF THE SHARE CERTIFICATES SHALL PASS ONLY WHEN ACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION). IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED
7

MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
No alternative, conditional or contingent tenders will be accepted and no fractional Shares will be purchased. All tendering stockholders, by execution of this Letter of Transmittal (or facsimile thereof), waive any right to receive any notice of the acceptance of their Shares for payment.
All questions as to validity, form and eligibility (including time of receipt) of the surrender of any Share Certificate hereunder, including questions as to the proper completion or execution of any Letter of Transmittal, Notice of Guaranteed Delivery or other required documents and as to the proper form for transfer of any certificate of Shares, will be determined by Purchaser in its sole and absolute discretion (which may delegate power in whole or in part to the Depositary) which determination will be final and binding. Purchaser reserves the absolute right to reject any and all tenders determined by it not to be in proper form or the acceptance for payment of or payment for which may be unlawful. Purchaser also reserves the absolute right to waive any defect or irregularity in the surrender of any Shares or Share Certificate(s) whether or not similar defects or irregularities are waived in the case of any other stockholder. A surrender will not be deemed to have been validly made until all defects and irregularities have been cured or waived. Purchaser and the Depositary shall make reasonable efforts to notify any person of any defect in any Letter of Transmittal submitted to the Depositary.
3. Inadequate Space.   If the space provided herein is inadequate, the certificate numbers and/or the number of Shares should be listed on a separate schedule attached hereto and separately signed on each page thereof in the same manner as this Letter of Transmittal is signed.
4. Partial Tenders (Applicable to Certificate Stockholders Only).   If fewer than all the Shares evidenced by any Share Certificate delivered to the Depositary are to be tendered, fill in the number of Shares which are to be tendered in the column titled “Number of Shares Tendered” in the box titled “Description of Shares Tendered.” In such cases, new certificate(s) for the remainder of the Shares that were evidenced by the old certificate(s) but not tendered will be sent to the registered owner, unless otherwise provided in the appropriate box on this Letter of Transmittal, as soon as practicable after the Expiration Date. All Shares represented by Share Certificates delivered to the Depositary will be deemed to have been tendered unless otherwise indicated.
5. Signatures on Letter of Transmittal; Stock Powers and Endorsements.   If this Letter of Transmittal is signed by the registered owner(s) of the Shares tendered hereby, the signature(s) must correspond with the name(s) as written on the face of the Share Certificate(s) without alteration or any other change whatsoever.
If any Shares tendered hereby are owned of record by two or more joint owners, all such owners must sign this Letter of Transmittal.
If any tendered Shares are registered in the names of different holder(s), it will be necessary to complete, sign and submit as many separate Letters of Transmittal (or facsimiles thereof) as there are different registrations of such Shares.
If this Letter of Transmittal or any certificates or stock powers are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should so indicate when signing, and proper evidence satisfactory to Purchaser of their authority so to act must be submitted.
If this Letter of Transmittal is signed by the registered owner(s) of the Shares listed and transmitted hereby, no endorsements of Share Certificates or separate stock powers are required unless payment is to be made to, or Share Certificates representing Shares not tendered or accepted for payment are to be issued in the name of, a person other than the registered owner(s), in which case the Share Certificates representing the Shares tendered by this Letter of Transmittal must be endorsed or accompanied by appropriate stock powers, in either case, signed exactly as the name(s) of the registered owner(s) or holder(s) appear(s) on the Share Certificates. Signatures on such Share Certificates or stock powers must be guaranteed by an Eligible Institution.
If this Letter of Transmittal is signed by a person other than the registered owner(s) of the Share(s) listed, the Share Certificate(s) must be endorsed or accompanied by the appropriate stock powers, in either case, signed exactly as the name or names of the registered owner(s) or holder(s) appear(s) on the Share Certificate(s). Signatures on such Share Certificates or stock powers must be guaranteed by an Eligible Institution.
8

6. Transfer Taxes.   Purchaser will pay any transfer taxes with respect to the transfer and sale of Shares to it or to its order pursuant to the Offer (for the avoidance of doubt, transfer taxes do not include United States federal income or backup withholding taxes). If, however, payment of the purchase price is to be made to, or (in the circumstances permitted hereby) if Share Certificates not tendered or accepted for payment are to be registered in the name of, any person other than the registered owner(s), or if tendered Share Certificates are registered in the name of any person other than the person signing this Letter of Transmittal, the amount of any transfer taxes (whether imposed on the registered owner(s) or such person) payable on account of the transfer to such person will be deducted from the purchase price unless satisfactory evidence of the payment of such taxes, or exemption therefrom, is submitted.
Except as provided in this Instruction 6, it will not be necessary for transfer tax stamps to be affixed to the Share Certificates listed in this Letter of Transmittal.
7. Special Payment and Delivery Instructions.   If a check for the purchase price is to be issued, and/or Share Certificates representing Shares not tendered or accepted for payment are to be issued or returned to, a person other than the signer(s) of this Letter of Transmittal or to an address other than that shown in the box titled “Description of Shares Tendered” above, the appropriate boxes on this Letter of Transmittal should be completed. Stockholders delivering Shares tendered hereby or by Agent’s Message by book-entry transfer may request that Shares not purchased be credited to an account maintained at DTC as such stockholder may designate in the box titled “Special Payment Instructions” herein. If no such instructions are given, all such Shares not purchased will be returned by crediting the same account at DTC as the account from which such Shares were delivered.
8. Requests for Assistance or Additional Copies.   Questions or requests for assistance may be directed to the Information Agent at its address and telephone number set forth below or to your broker, dealer, commercial bank or trust company. Additional copies of the Offer to Purchase, this Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials may be obtained from the Information Agent as set forth below, and will be furnished at Purchaser’s expense.
9. Backup Withholding.   Under U.S. federal income tax laws, the Depositary will be required to withhold a portion of the amount of any payments made to certain stockholders pursuant to the Offer or the Merger (as defined in the Offer to Purchase), as applicable. In order to avoid such backup withholding, each tendering stockholder or payee that is a United States person (for U.S. federal income tax purposes), must provide the Depositary with such stockholder’s or payee’s correct taxpayer identification number (“TIN”) and certify that such stockholder or payee is not subject to such backup withholding by completing the attached Form W-9. A tendering stockholder who is a foreign individual or a foreign entity should complete, sign, and submit to the Depositary the appropriate Form W-8, a copy of which may be obtained from the Depositary or downloaded from the Internal Revenue Service’s website at the following address: http://www.irs.gov. Certain stockholders or payees (including, among others, corporations, non-resident foreign individuals and foreign entities) are not subject to these backup withholding and reporting requirements, but should certify their exemption by completing the applicable Form W-9 or W-8. In order to satisfy the Depositary that a foreign individual is not subject to backup withholding or to prevent possible erroneous backup withholding, an exempt payee should check the “exempt from backup withholding” box on the IRS Form W-9. Failure to complete the applicable Form W-9 or W-8 will not, by itself, cause Shares to be deemed invalidly tendered, but may require the Depositary to withhold a portion of the amount of any payments made of the Offer Price pursuant to the Offer.
NOTE: FAILURE TO COMPLETE AND RETURN THE APPLICABLE FORM W-9 OR FORM W-8 MAY RESULT IN BACKUP WITHHOLDING OF A PORTION OF ANY PAYMENTS MADE TO YOU PURSUANT TO THE OFFER. PLEASE REVIEW THE “IMPORTANT TAX INFORMATION” SECTION BELOW.
10. Lost, Destroyed, Mutilated or Stolen Share Certificates.   If any Share Certificate has been lost, destroyed, mutilated or stolen, the stockholder should promptly notify TCS’ stock transfer agent, American Stock Transfer & Trust Company, LLC at (800) 937-5449. The stockholder will then be instructed as to the steps that must be taken in order to replace the Share Certificate. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, mutilated, destroyed or stolen Share Certificates have been followed.
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11. Waiver of Conditions.   Subject to the terms and conditions of the Merger Agreement (as defined in the Offer to Purchase) and the applicable rules and regulations of the Securities and Exchange Commission, the conditions of the Offer may be waived by Purchaser in whole or in part at any time and from time to time in its sole discretion.
12. FIRPTA Withholding on Class B Holders.   Under U.S. federal income tax laws, the Depositary will be required to withhold 10% of the amount of any payments of the purchase price made with respect to Class B Shares tendered pursuant to the Offer or converted in the Merger (as defined in the Offer to Purchase), as applicable. In order to avoid such withholding, each holder of Class B Shares (a “Class B Holder”) must provide the Company with a properly completed and executed certificate of its non-foreign status in a form that complies with Treasury Regulations Section 1.1445-2(b)(2), or otherwise confirm to the Company in accordance with applicable Treasury Regulations that such withholding is not applicable. Failure to so certify or confirm will not, by itself, cause Class B Shares to be deemed invalidly tendered, but may require the Depositary to withhold a portion of the amount of any payments made of the Offer Price pursuant to the Offer.
IMPORTANT: THIS LETTER OF TRANSMITTAL (OR A MANUALLY EXECUTED FACSIMILE COPY THEREOF) OR AN AGENT’S MESSAGE, TOGETHER WITH SHARE CERTIFICATE(S) OR BOOK-ENTRY CONFIRMATION OR A PROPERLY COMPLETED AND DULY EXECUTED NOTICE OF GUARANTEED DELIVERY AND ALL OTHER REQUIRED DOCUMENTS, MUST BE RECEIVED BY THE DEPOSITARY PRIOR TO THE EXPIRATION DATE.
IMPORTANT TAX INFORMATION
Under United States federal income tax law, a stockholder that is a non-exempt United States person (for U.S. federal income tax purposes) whose tendered Shares are accepted for payment, or whose Shares are converted in the Merger (as defined in the Offer to Purchase), is required by law to provide the Depositary (as payer) with such stockholder’s correct TIN on the Form W-9 below. If such stockholder is an individual, the TIN is such stockholder’s social security number. If the Depositary is not provided with the correct TIN, the stockholder may be subject to penalties imposed by the Internal Revenue Service (“IRS”) and payments that are made to such stockholder with respect to Shares purchased pursuant to the Offer, or converted in the Merger (as defined in the Offer to Purchase), may be subject to backup withholding.
If backup withholding applies, the Depositary is required to withhold 28% of any payments of the purchase price made to the stockholder. Backup withholding is not an additional tax. Rather, the tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit may be obtained from the IRS provided that the required information is furnished to the IRS. In order to avoid backup withholding, a foreign stockholder should submit a properly completed applicable IRS Form W-8, including certification of such stockholder’s foreign status, signed under penalties of perjury. Such forms and instructions can be obtained from the Depositary or at http://irs.gov.
Form W-9
To prevent backup withholding on payments that are made to a United States stockholder with respect to Shares purchased pursuant to the Offer or converted in the Merger (as defined in the Offer to Purchase), as applicable, the stockholder is required to notify the Depositary of such stockholder’s correct TIN by completing the Form W-9 certifying, under penalties of perjury, (i) that the TIN provided on the Form W-9 is correct (or that such stockholder is awaiting a TIN), (ii) that such stockholder is not subject to backup withholding because (a) such stockholder has not been notified by the IRS that such stockholder is subject to backup withholding as a result of a failure to report all interest or dividends, (b) the IRS has notified such stockholder that such stockholder is no longer subject to backup withholding or (c) such stockholder is exempt from backup withholding, and (iii) that such stockholder is a U.S. person.
What Number to Give the Depositary
Each United States stockholder is generally required to give the Depositary its social security number or employer identification number. If the tendering stockholder has not been issued a TIN and has applied for a number or intends to apply for a number in the near future, the stockholder should write “Applied For” in Part I, sign and date the Form W-9. Notwithstanding that “Applied For” is written in Part I, the Depositary will
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withhold 28% of all payments of the purchase price to such stockholder until a TIN is provided to the Depositary. Such amounts will be refunded to such surrendering stockholder if a TIN is provided to the Depositary within 60 days. We note that your Form W-9, including your TIN, may be transferred from the Depositary to the Paying Agent, in certain circumstances.
Please consult your own accountant or tax advisor for further guidance regarding the completion of IRS Form W-9, IRS Form W-8BEN, IRS Form W-8BEN-E, or another version of IRS Form W-8 to claim exemption from backup withholding, or contact the Depositary.
FIRPTA Withholding on Class B Holders
Payments made with respect to Class B Shares will be subject to withholding of 10% of the purchase price payable with respect to such shares pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended (such withholding, commonly referred to as “FIRPTA Withholding”). In order to avoid the imposition of FIRPTA Withholding, Class B Holders must provide TCS properly completed and executed certificates of their non-foreign status in a form that complies with Treasury Regulations Section 1.1445-2(b)(2), or otherwise confirm in accordance with applicable Treasury Regulations that FIRPTA Withholding is not applicable.
Class B Holders should provide any such certificates or confirmations in person or via first class mail (postage prepaid) or overnight air courier to TCS at 275 West Street, Annapolis, MD 21401, Attention: Sr. Vice President and General Counsel, or via email transmission to BWhite@telecomsys.com.
PAYER’S NAME: AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
THE IRS FORM W-9 IS INCLUDED ON THE FOLLOWING PAGE.
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Form W-9 (Rev. December 2014) Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification Give Form to the requester. Do not send to the IRS. Print or type See Specific Instructions on page 2. 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. 2 Business name/disregarded entity name, if different from above 3 Check appropriate box for federal tax classification; check only one of the following seven boxes: Individual/sole proprietor or single-member LLC C Corporation S Corporation Partnership Trust/estate Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) Note. For a single-member LLC that is disregarded, do not check LLC; check the appropriate box in the line above for the tax classification of the single-member owner. Other (see instructions) 4 Exemptions (codes apply only to certain entities, not individuals; see instructions on page 3): Exempt payee code (if any) Exemption from FATCA reporting code (if any) (Applies to accounts maintained outside the U.S.) 5 Address (number, street, and apt. or suite no.) 6 City, state, and ZIP code Requester’s name and address (optional) 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN
provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. Note. If the account is in more than one name, see the instructions for line 1 and the chart on page 4 for guidelines on whose number to enter. Social security number – – or Employer identification number – Part II Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. I am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 3. Sign Here Signature of U.S. person Date General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. Information about developments affecting Form W-9 (such as legislation enacted after we release it) is at www.irs.gov/fw9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following: • Form 1099-INT (interest earned or paid) • Form 1099-DIV (dividends, including those from stocks or mutual funds) • Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) • Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) • Form 1099-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding? on page 2. By signing the filled-out form, you: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners’ share of effectively connected income, and 4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting? on page 2 for further information. Cat. No. 10231X Form W-9 (Rev. 12-2014)

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Form W-9 (Rev. 12-2014) Page 2 Note. If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requester’s form if it is substantially similar to this Form W-9. Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien; • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; • An estate (other than a foreign estate); or • A domestic trust (as defined in Regulations section 301.7701-7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax under section 1446 on any foreign partners’ share of effectively connected taxable income from such business. Further, in certain cases where a Form W-9 has not been received, the rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid section 1446 withholding on your share of partnership income. In the cases below, the following person must give Form W-9 to the
partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States: • In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the entity; • In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the trust; and • In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust. Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, do not use Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities). Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a “saving clause.” Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes. If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items: 1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien. 2. The treaty article addressing the income. 3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions. 4. The type and amount of income that qualifies for the exemption from tax. 5. Sufficient facts to justify the exemption from tax under the terms of the treaty article. Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if his or her stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph 2 of the first protocol) and is relying on this exception to claim an exemption from tax on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption. If you are a nonresident alien or a foreign entity, give the requester the appropriate completed Form W-8 or Form 8233. Backup Withholding What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS 28% of such payments. This is called “backup withholding.” Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding. You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return. Payments you receive will be subject to backup withholding if: 1. You do not furnish your TIN to the requester, 2. You do not certify your TIN when required (see the Part II instructions on page 3 for details), 3. The IRS tells the requester that you furnished an incorrect TIN, 4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or 5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only). Certain payees and payments are exempt from backup withholding. See Exempt payee code on page 3 and the separate Instructions for the Requester of Form W-9 for more information. Also see Special rules for partnerships above. What is FATCA reporting? The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all United States account holders that are specified United States persons. Certain payees are exempt from FATCA reporting. See Exemption from FATCA reporting code on page 3 and the Instructions for the Requester of Form W-9 for more information. Updating Your Information You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account; for example, if the grantor of a grantor trust dies. Penalties Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of  $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect. Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty. Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment. Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties. Specific Instructions Line 1 You must enter one of the following on this line; do not leave this line blank. The name should match the name on your tax return. If this Form W-9 is for a joint account, list first, and then circle, the name of the person or entity whose number you entered in Part I of Form W-9. a. Individual. Generally, enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name. Note. ITIN applicant: Enter your individual name as it was entered on your Form W-7 application, line 1a. This should also be the same as the name you entered on the Form 1040/1040A/1040EZ you filed with your application. b. Sole proprietor or single-member LLC. Enter your individual name as shown on your 1040/1040A/1040EZ on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2. c. Partnership, LLC that is not a single-member LLC, C Corporation, or S Corporation. Enter the entity’s name as shown on the entity’s tax return on line 1 and any business, trade, or DBA name on line 2. d. Other entities. Enter your name as shown on required U.S. federal tax documents on line 1. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on line 2. e. Disregarded entity. For U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a “disregarded entity.” See Regulations section 301.7701-2(c)(2)(iii). Enter the owner’s name on line 1. The name of the entity entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owner’s name is required to be provided on line 1. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entity’s name on line 2, “Business name/disregarded entity name.” If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN.

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Form W-9 (Rev. 12-2014) Page 3 Line 2 If you have a business name, trade name, DBA name, or disregarded entity name, you may enter it on line 2. Line 3 Check the appropriate box in line 3 for the U.S. federal tax classification of the person whose name is entered on line 1. Check only one box in line 3. Limited Liability Company (LLC). If the name on line 1 is an LLC treated as a partnership for U.S. federal tax purposes, check the “Limited Liability Company” box and enter “P” in the space provided. If the LLC has filed Form 8832 or 2553 to be taxed as a corporation, check the “Limited Liability Company” box and in the space provided enter “C” for C corporation or “S” for S corporation. If it is a single-member LLC that is a disregarded entity, do not check the “Limited Liability Company” box; instead check the first box in line 3 “Individual/sole proprietor or single-member LLC.” Line 4, Exemptions If you are exempt from backup withholding and/or FATCA reporting, enter in the appropriate space in line 4 any code(s) that may apply to you. Exempt payee code. • Generally, individuals (including sole proprietors) are not exempt from backup withholding. • Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends. • Corporations are not exempt from backup withholding for payments made in settlement of
payment card or third party network transactions. • Corporations are not exempt from backup withholding with respect to attorneys’ fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC. The following codes identify payees that are exempt from backup withholding. Enter the appropriate code in the space in line 4. 1—An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2) 2—The United States or any of its agencies or instrumentalities 3—A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities 4—A foreign government or any of its political subdivisions, agencies, or instrumentalities 5—A corporation 6—A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession 7—A futures commission merchant registered with the Commodity Futures Trading Commission 8—A real estate investment trust 9—An entity registered at all times during the tax year under the Investment Company Act of 1940 10—A common trust fund operated by a bank under section 584(a) 11—A financial institution 12—A middleman known in the investment community as a nominee or custodian 13—A trust exempt from tax under section 664 or described in section 4947 The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 13. IF the payment is for . . . THEN the payment is exempt for . . . Interest and dividend payments All exempt payees except for 7 Broker transactions Exempt payees 1 through 4 and 6 through 11 and all C corporations. S corporations must not enter an exempt payee code because they are exempt only for sales of noncovered securities acquired prior to 2012. Barter exchange transactions and patronage dividends Exempt payees 1 through 4 Payments over $600 required to be reported and direct sales over $5,0001 Generally, exempt payees 1 through 52 Payments made in settlement of payment card or third party network transactions Exempt payees 1 through 4 1 See Form 1099-MISC, Miscellaneous Income, and its instructions. 2 However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys’ fees, gross proceeds paid to an attorney reportable under section 6045(f), and payments for services paid by a federal executive agency. Exemption from FATCA reporting code. The following codes identify payees that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only submitting this form for an account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements. A requester may indicate that a code is not required by providing you with a Form W-9 with “Not Applicable” (or any similar indication) written or printed on the line for a FATCA exemption code. A—An organization exempt from tax under section 501(a) or any individual retirement plan as defined in section 7701(a)(37) B—The United States or any of its agencies or instrumentalities C—A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities D—A corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i) E—A corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i) F—A dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any state G—A real estate investment trust H—A regulated investment company as defined in section 851 or an entity registered at all times during the tax year under the Investment Company Act of 1940 I—A common trust fund as defined in section 584(a) J—A bank as defined in section 581 K—A broker L—A trust exempt from tax under section 664 or described in section 4947(a)(1) M—A tax exempt trust under a section 403(b) plan or section 457(g) plan Note. You may wish to consult with the financial institution requesting this form to determine whether the FATCA code and/or exempt payee code should be completed. Line 5 Enter your address (number, street, and apartment or suite number). This is where the requester of this Form W-9 will mail your information returns. Line 6 Enter your city, state, and ZIP code. Part I. Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below. If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN. If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on this page), enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN. Note. See the chart on page 4 for further clarification of name and TIN combinations. How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at www.ssa.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/businesses and clicking on Employer Identification Number (EIN) under Starting a Business. You can get Forms W-7 and SS-4 from the IRS by visiting IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). If you are asked to complete Form W-9 but do not have a TIN, apply for a TIN and write “Applied For” in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester. Note. Entering “Applied For” means that you have already applied for a TIN or that you intend to apply for one soon. Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8.

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Form W-9 (Rev. 12-2014) Page 4 Part II. Certification To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if items 1, 4, or 5 below indicate otherwise. For a joint account, only the person whose TIN is shown in Part I should sign (when required). In the case of a disregarded entity, the person identified on line 1 must sign. Exempt payees, see Exempt payee code earlier. Signature requirements. Complete the certification as indicated in items 1 through 5 below. 1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification. 2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form. 3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification. 4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an
incorrect TIN. “Other payments” include payments made in the course of the requester’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third party network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations). 5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification. What Name and Number To Give the Requester For this type of account: Give name and SSN of: 1. Individual The individual 2. Two or more individuals (joint account) The actual owner of the account or, if combined funds, the first individual on the account1 3. Custodian account of a minor (Uniform Gift to Minors Act) The minor2 4. a. The usual revocable savings trust (grantor is also trustee) b. So-called trust account that is not a legal or valid trust under state law The grantor-trustee1 The actual owner1 5. Sole proprietorship or disregarded entity owned by an individual The owner3 6. Grantor trust filing under Optional Form 1099 Filing Method 1 (see Regulations section 1.671-4(b)(2)(i) (A)) The grantor* For this type of account: Give name and EIN of: 7. Disregarded entity not owned by an individual The owner 8. A valid trust, estate, or pension trust Legal entity4 9. Corporation or LLC electing corporate status on Form 8832 or Form 2553 The corporation 10. Association, club, religious, charitable, educational, or other taxexempt organization The organization 11. Partnership or multi-member LLC The partnership 12. A broker or registered nominee The broker or nominee 13. Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments The public entity 14. Grantor trust filing under the Form 1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulations section 1.671-4(b)(2)(i) (B)) The trust 1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished. 2 Circle the minor’s name and furnish the minor’s SSN. 3 You must show your individual name and you may also enter your business or DBA name on the “Business name/disregarded entity” name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN. 4 List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships on page 2. *Note. Grantor also must provide a Form W-9 to trustee of trust. Note. If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed. Secure Your Tax Records from Identity Theft Identity theft occurs when someone uses your personal information such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. To reduce your risk: • Protect your SSN, • Ensure your employer is protecting your SSN, and • Be careful when choosing a tax preparer. If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter. If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit Form 14039. For more information, see Publication 4535, Identity Theft Prevention and Victim Assistance. Victims of identity theft who are experiencing economic harm or a system problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Protect yourself from suspicious emails or phishing schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts. If you receive an unsolicited email claiming to be from the IRS, forward this message to phishing@irs.gov. You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at: spam@uce.gov or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877-438-4338). Visit IRS.gov to learn more about identity theft and how to reduce your risk. Privacy Act Notice Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the form to file information returns with the IRS, reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer. Certain penalties may also apply for providing false or fraudulent information.
   

The Depositary for the Offer is:
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If delivering by mail:
   
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
P.O. Box 2042
New York, New York 10272-2042
If delivering by hand or courier:
   
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
6201 15th Avenue
Brooklyn, New York 11219
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH
ABOVE WILL NOT CONSTITUTE A VALID DELIVERY TO THE DEPOSITARY.
Any questions or requests for assistance may be directed to the Information Agent at its telephone number and location listed below. Requests for additional copies of this Offer to Purchase and the Letter of Transmittal may be directed to the Information Agent at its telephone number and location listed below. You may also contact your broker, dealer, commercial bank or trust company or other nominee for assistance concerning the Offer.
The Information Agent for the Offer is:
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501 Madison Avenue, 20th Floor
New York, NY 10022
Stockholders May Call Toll-Free: (888) 750-5834
Banks & Brokers May Call Collect: (212) 750-5833



Exhibit (a)(1)(C)​
NOTICE OF GUARANTEED DELIVERY
To Tender Shares of Common Stock
of
TELECOMMUNICATION SYSTEMS, INC.
at
$5.00 Net Per Share
by
TYPHOON ACQUISITION CORP.
a wholly owned subsidiary
of
COMTECH TELECOMMUNICATIONS CORP.
This form, or a substantially equivalent form, must be used to accept the Offer (as defined below) if certificates representing tendered Shares (as defined below) are not immediately available or the certificates representing tendered Shares and all other required documents cannot be delivered to American Stock Transfer & Trust Company, LLC (the “Depositary”) prior to the expiration of the Offer or if the procedure for delivery by book-entry transfer cannot be completed prior to the expiration of the Offer. This instrument may be delivered or transmitted by facsimile transmission or mailed to the Depositary. See Section 3 “Procedures for Tendering Shares” of the Offer to Purchase (as defined below).
The Depositary for the Offer is:
[MISSING IMAGE: lg_astlinkgroupnet-grey.jpg]
If delivering by mail:
If delivering by hand or courier:
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
P.O. Box 2042
New York, New York 10272-2042
American Stock Transfer & Trust Company, LLC
Operations Center
Attn: Reorganization Department
6201 15th Avenue
Brooklyn, New York 11219
DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR TRANSMISSION OF INSTRUCTIONS VIA FACSIMILE TO A NUMBER OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY TO THE DEPOSITARY.
THIS FORM IS NOT TO BE USED TO GUARANTEE SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE GUARANTEED BY AN “ELIGIBLE INSTITUTION” UNDER THE INSTRUCTIONS TO THE LETTER OF TRANSMITTAL, SUCH SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX IN THE LETTER OF TRANSMITTAL.
THE GUARANTEE ON THE NEXT PAGE MUST BE COMPLETED.

Ladies and Gentlemen:
The undersigned hereby tenders to Typhoon Acquisition Corp., a Maryland corporation and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation, upon the terms and subject to the conditions set forth in the offer to purchase dated December 7, 2015 (as it may be amended or supplemented from time to time, the “Offer to Purchase”) and the related letter of transmittal (as it may be amended or supplemented from time to time the “Letter of Transmittal”, and together with the Offer to Purchase, the “Offer”), receipt of which is hereby acknowledged, the number of shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and shares of Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation, indicated below pursuant to the guaranteed delivery procedure set forth in Section 3 “Procedures for Tendering Shares” of the Offer to Purchase.
Name(s) of Record Holder(s)
Number of Shares
   
Certificate Nos. (if available)
Address(es)
Indicate account number at Book-Entry Transfer
Facility if Shares will be tendered by book-entry
transfer:
Zip Code
(Area Code) Telephone No.
Account Number
X   Dated:            , 201_
X   Dated:            , 201_
Signatures(s) of Record Holder(s)
2

GUARANTEE
(Not to be used for signature guarantee)
The undersigned, a bank, broker, dealer, credit union, savings association or other entity that is a member in good standing of the Securities Transfer Agents Medallion Program or any other “eligible guarantor institution” as defined in Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (each, an “Eligible Institution”), hereby guarantees the delivery to the Depositary, at one of its addresses set forth above, of the certificates evidencing all Shares tendered by this Notice of Guaranteed Delivery in proper form for transfer, or confirmation of the book-entry transfer of Shares into the Depositary’s account at The Depository Trust Company, in either case, together with delivery of a properly completed and duly executed Letter of Transmittal (or a facsimile of the Letter of Transmittal) with any required signature guarantee, or an Agent’s Message (as defined in the Letter of Transmittal), and any other documents required by the Letter of Transmittal, within three NASDAQ trading days after the date of execution of this Notice of Guaranteed Delivery.
Names of Firm
Authorized Signature
Address(es)
Name (Please Print)
Zip Code
Title
Dated:            , 201_
(Area Code) Telephone No.
NOTE: DO NOT SEND CERTIFICATES REPRESENTING TENDERED SHARES WITH THIS NOTICE. CERTIFICATES REPRESENTING TENDERED SHARES SHOULD BE SENT WITH YOUR LETTER OF TRANSMITTAL.
3



Exhibit (a)(1)(D)​
Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
TELECOMMUNICATION SYSTEMS, INC.
at
$5.00 Net Per Share
by
TYPHOON ACQUISITION CORP.
a wholly owned subsidiary
of
COMTECH TELECOMMUNICATIONS CORP.
THE OFFER AND WITHDRAWAL RIGHTS EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED.
December 7, 2015​
To Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees:
Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), is making an offer to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and shares of Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a purchase price of $5.00 per Share, net to the seller in cash, without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in the offer to purchase, dated December 7, 2015 (as it may be amended or supplemented from time to time, the “Offer to Purchase”), and in the related letter of transmittal (as it may be amended or supplemented from time to time the “Letter of Transmittal”, and together with the Offer to Purchase, the “Offer”).
Please furnish copies of the enclosed materials to those of your clients for whose accounts you hold Shares registered in your name or in the name of your nominee.
Enclosed herewith for your information and forwarding to your clients are copies of the following documents:
1.
The Offer to Purchase dated December 7, 2015.
2.
The Letter of Transmittal for your use in accepting the Offer and tendering Shares and for the information of your clients. Facsimile copies of the Letter of Transmittal may be used to tender Shares.
3.
The notice of guaranteed delivery to be used to accept the Offer if certificates for Shares and all other required documents cannot be delivered to American Stock Transfer & Trust Company, LLC (the “Depositary”), or if the procedures for book-entry transfer cannot be completed, by the expiration date of the Offer.

4.
A letter that may be sent to your clients for whose accounts you hold Shares registered in your name or in the name of your nominee, with space provided for obtaining such clients’ instructions with regard to the Offer.
5.
The letter to stockholders of TCS from Maurice B. Tosé, the Chairman, Chief Executive Officer and President of TCS, accompanied by TCS’ Solicitation/Recommendation Statement on Schedule 14D-9.
6.
Guidelines for Certification of Taxpayer Identification Number on Form W-9 providing information relating to federal income tax backup withholding.
7.
Return envelope addressed to the Depositary.
YOUR PROMPT ACTION IS REQUESTED. WE URGE YOU TO CONTACT YOUR CLIENTS AS PROMPTLY AS POSSIBLE. PLEASE NOTE THAT THE OFFER AND WITHDRAWAL RIGHTS EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED.
The Offer is being made pursuant to an Agreement and Plan of Merger dated as of November 22, 2015 (as it may be amended or supplemented from time to time, the “Merger Agreement”) by and among TCS, Comtech and Purchaser. The Merger Agreement provides, among other things, that after the completion of the Offer and subject to specified conditions, Purchaser will merge with and into TCS (the “Merger”), with TCS continuing as the surviving corporation and a wholly owned subsidiary of Comtech.
The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and the transactions contemplated thereby, has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.
The Offer is conditioned upon, among other things:

there shall have been validly tendered in the Offer and not properly withdrawn that number of Shares which, together with any Shares then owned by Purchaser (if any), would represent at least a majority of the issued and outstanding Shares (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such shares are actually delivered in accordance with the terms of the Offer);

the expiration or termination of the waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended;

the absence of any law or order by any governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities that would prohibit, declare unlawful, enjoin or otherwise prevent the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement; and

two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016) having passed after the completion of the Marketing Period (as described in the Offer to Purchase).
2

Other conditions of the Offer are described in the Offer to Purchase. See Section 13 “Conditions of the Offer” of the Offer to Purchase. See also Section 15 “Certain Legal Matters” of the Offer to Purchase. Consummation of the Offer is not conditioned on Purchaser or Comtech obtaining financing.
Neither Comtech nor Purchaser will pay any fees or commissions to any broker or dealer or any other person (other than Innisfree M&A Incorporated (the “Information Agent”) and the Depositary as described in the Offer to Purchase, the fees and commissions of which will be paid by Comtech) for soliciting tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks, trust companies and other nominees will, upon request, be reimbursed by Comtech or Purchaser for reasonable and necessary costs and expenses incurred by them in forwarding materials to their customers.
Purchaser will pay all stock transfer taxes applicable to its purchase of Shares pursuant to the Offer, subject to Instruction 6 of the Letter of Transmittal.
In order to take advantage of the Offer, a duly executed and properly completed Letter of Transmittal (or a manually signed facsimile thereof) or an Agent’s Message (as defined in the Offer to Purchase) in connection with a book-entry delivery of Shares, and any other required documents, should be sent to the Depositary, and certificates representing the tendered Shares should be delivered or such Shares should be tendered by book-entry transfer, all in accordance with the instructions contained in the Letter of Transmittal and in the Offer to Purchase.
If holders of Shares wish to tender, but it is impracticable for them to forward their certificates or other required documents or to complete the procedures for delivery by book-entry transfer prior to the expiration of the Offer, a tender may be effected by following the guaranteed delivery procedures described in Section 3 of the Offer to Purchase.
Questions and requests for assistance may be directed to the Information Agent at the address and telephone numbers set forth on the back cover of the Offer to Purchase. Requests for additional copies of the enclosed materials may be directed to the Information Agent.
Very truly yours,
Comtech Telecommunications Corp.
NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU THE AGENT OF COMTECH, PURCHASER, THE INFORMATION AGENT OR THE DEPOSITARY, OR ANY AFFILIATE OF ANY OF THEM OR AUTHORIZE YOU OR ANY OTHER PERSON TO USE ANY DOCUMENT OR MAKE ANY STATEMENT ON BEHALF OF ANY OF THEM IN CONNECTION WITH THE OFFER OTHER THAN THE DOCUMENTS ENCLOSED HEREWITH AND THE STATEMENTS CONTAINED THEREIN.
3



Exhibit (a)(1)(E)​
Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
TELECOMMUNICATION SYSTEMS, INC.
at
$5.00 Net Per Share
by
TYPHOON ACQUISITION CORP.
a wholly owned subsidiary
of
COMTECH TELECOMMUNICATIONS CORP.
THE OFFER AND WITHDRAWAL RIGHTS EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED.
To Our Clients:
Enclosed for your consideration are the offer to purchase dated December 7, 2015 (as it may be amended or supplemented from time to time, the “Offer to Purchase”) and the related letter of transmittal (as it may be amended or supplemented from time to time the “Letter of Transmittal”, and together with the Offer to Purchase, the “Offer”) in connection with the tender offer by Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and shares of Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a purchase price of  $5.00 per Share, net to the seller in cash (the “Offer Price”), without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in the offer to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase and the Letter of Transmittal enclosed herewith. Also enclosed is a letter to stockholders of TCS from Maurice B. Tosé, the Chairman, Chief Executive Officer and President of TCS, accompanied by TCS’ Solicitation/Recommendation Statement on Schedule 14D-9.
We are the holder of record of Shares held for your account. A tender of such Shares can be made only by us as the holder of record and pursuant to your instructions. The enclosed Letter of Transmittal is furnished to you for your information only and cannot be used by you to tender Shares held by us for your account.
We request instructions as to whether you wish us to tender any or all of the Shares held by us for your account, upon the terms and subject to the conditions set forth in the Offer to Purchase and the Letter of Transmittal.
Your attention is directed to the following:
1.
The Offer Price is $5.00 per Share, in cash, net to you, without interest and subject to any required withholding taxes.
2.
The Offer is being made for all of the outstanding Shares.
3.
The Offer is being made pursuant to an Agreement and Plan of Merger dated as of November 22, 2015 (as it may be amended or supplemented from time to time, the “Merger Agreement”) by and among TCS, Comtech and Purchaser. The Merger Agreement provides, among other things, that after the successful completion of the Offer and subject to specified conditions, Purchaser will

merge with and into TCS (the “Merger”), with TCS continuing as the surviving corporation and a wholly owned subsidiary of Comtech.
4.
The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and the transactions contemplated thereby, has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.
5.
The Offer and withdrawal rights expire at 12:00 Midnight, New York City Time, at the end of the day on Tuesday, January 5, 2016, unless the Offer is extended by Purchaser (as extended, the “Expiration Date”).
6.
The Offer is conditioned upon, among other things:

there shall have been validly tendered in the Offer and not properly withdrawn that number of Shares which, together with any Shares then owned by Comtech, Purchaser or their respective subsidiaries (if any), would represent at least a majority of the issued and outstanding Shares entitled to vote on the matter (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such Shares have actually been delivered in accordance with the terms of the Offer);

the expiration or termination of the waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended;

the absence of any law or order by any governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities that would prohibit, declare unlawful, enjoin or otherwise prevent the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement; and

two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016) having passed after the completion of the Marketing Period (as described in the Offer to Purchase).
Other conditions of the Offer are described in the Offer to Purchase. See Section 13 “Conditions of the Offer” of the Offer to Purchase. See also Section 15 “Certain Legal Matters” of the Offer to Purchase. Consummation of the Offer is not conditioned on Purchaser or Comtech obtaining financing.
7.
Any stock transfer taxes applicable to the sale of Shares to Purchaser pursuant to the Offer will be paid by Purchaser, except as otherwise set forth in Instruction 6 of the Letter of Transmittal. However, federal income tax backup withholding at a rate of 28% may be required, unless the required taxpayer identification information is provided and certain certification requirements are met, or unless an exemption is established. See Instruction 9 of the Letter of Transmittal.
If you wish to have us tender any or all of your Shares, please complete, sign, detach and return to us the instruction form below. An envelope to return your instructions to us is enclosed. If you authorize tender of your Shares, all such Shares will be tendered unless otherwise specified on the instruction form. Your instructions should be forwarded to us in ample time to permit us to submit a tender on your behalf by the Expiration Date.
The Offer is not being made to holders of Shares in any jurisdiction in which the making of the Offer or acceptance thereof would not be in compliance with the laws of such jurisdiction.
2

Instructions Form with Respect to
Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
TELECOMMUNICATION SYSTEMS, INC.
at
$5.00 Net Per Share
by
TYPHOON ACQUISITION CORP.
a wholly owned subsidiary of
COMTECH TELECOMMUNICATIONS CORP.
The undersigned acknowledge(s) receipt of your letter and the enclosed offer to purchase dated December 7, 2015 (as it may be amended or supplemented, the “Offer to Purchase”), and the related letter of transmittal (as it may be amended or supplemented, the “Letter of Transmittal”), in connection with the tender offer by Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), to purchase all the issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and shares of Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a purchase price of  $5.00 per Share, net to the seller in cash, without interest thereon and subject to any required withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase and the related Letter of Transmittal.
This will instruct you to tender the number of Shares indicated below (or if no number is indicated below, all Shares) held by you for the account of the undersigned, upon the terms and subject to the conditions set forth in the Offer to Purchase and in the related Letter of Transmittal furnished to the undersigned.
Number of Shares to be Tendered:   Shares*
Account Number:
The method of delivery of this document is at the election and risk of the tendering stockholder. If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
SIGN HERE
Signature(s)
Dated            , 201_
Name(s)
Address(es)
(Zip Code)
Area Code and Telephone Number
Taxpayer Identification or Social Security No.
*
Unless otherwise indicated, it will be assumed that all Shares held for the undersigned’s account are to be tendered.
3



 

Exhibit (a)(5)(E)

 

This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below), and the provisions herein are subject in their entirety to the provisions of the Offer (as defined below). The Offer is made solely by the Offer to Purchase (as defined below), dated December 7, 2015, and the related Letter of Transmittal (as defined below) and any amendments or supplements thereto, and is being made to all holders of Shares other than holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, “blue sky” or other laws of such jurisdiction or any administrative or judicial action pursuant thereto. In those jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser (as defined below) by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.

 

Notice of Offer to Purchase for Cash

 

All Outstanding Shares of Common Stock

 

of

 

TeleCommunication Systems, Inc.

 

at

 

$5.00 Net Per Share

 

by

 

Typhoon Acquisition Corp.

a wholly owned subsidiary of

 

Comtech Telecommunications Corp.

 

Typhoon Acquisition Corp., a Maryland corporation (“Purchaser”) and a direct, wholly owned subsidiary of Comtech Telecommunications Corp., a Delaware corporation (“Comtech”), is offering to purchase all issued and outstanding shares of Class A common stock, par value $0.01 per share (the “Class A Shares”), and Class B common stock, par value $0.01 per share (the “Class B Shares”, together with the Class A Shares, the “Shares”), of TeleCommunication Systems, Inc., a Maryland corporation (“TCS”), at a price of $5.00 per Share, net to the seller in cash (the “Offer Price”), without interest thereon and less any required withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated December 7, 2015 (the “Offer to Purchase”), and in the related Letter of Transmittal (which, together with any amendments or supplements thereto, collectively constitute the “Offer”). Tendering stockholders who have Shares registered in their names and who tender directly to American Stock Transfer & Trust Company, LLC (the “Depositary”) will not be obligated to pay brokerage fees or commissions or, except as set forth in the Letter of Transmittal, transfer taxes on the purchase of Shares by Purchaser pursuant to the Offer. Stockholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult with such institution as to whether it charges any service fees or commissions.

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, AT THE END OF THE DAY ON TUESDAY, JANUARY 5, 2016, UNLESS THE OFFER IS EXTENDED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”).

 

The purpose of the Offer is for Comtech, through Purchaser, to acquire control of, and the entire equity interest in, TCS. Following the consummation of the Offer, Purchaser intends to effect the Merger (as defined below).

 

 

 

  

The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of November 22, 2015, among Purchaser, TCS and Comtech (the “Merger Agreement”), under which, after the completion of the Offer and the satisfaction or waiver of certain conditions, Purchaser will be merged with and into TCS and TCS will be the surviving corporation and a wholly owned subsidiary of Comtech (the “Merger”). At the effective time of the Merger (the “Effective Time”), each issued and outstanding Share (other than any Shares that are owned immediately prior to the Effective Time by Comtech or Purchaser, or by any subsidiary of Comtech, Purchaser or TCS), will by virtue of the Merger and without any action by the holder thereof, be converted automatically into the right to receive from Purchaser an amount in cash, without interest and subject to applicable withholding taxes, equal to the Offer Price, payable to the holder thereof upon surrender of the certificate formerly representing, or book-entry transfer of, such Share. As a result of the Merger, TCS will cease to be a publicly traded company and will become wholly owned by Comtech. The Merger Agreement is more fully described in the Offer to Purchase.

 

The Offer is conditioned upon (i) the satisfaction of the Minimum Condition (as described below), (ii) the expiration or termination of the waiting period (including any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) the absence of any law or order by any governmental authority of competent jurisdiction located in the United States or in another jurisdiction outside of the United States in which TCS or any of its subsidiaries, or Comtech or any of its subsidiaries, engage in material business activities that would prohibit, declare unlawful, enjoin or otherwise prevent the consummation of the Offer or the Merger or any of the transactions contemplated by the Merger Agreement, (iv) two business days (or such fewer number of business days that remain between the end of the Marketing Period (as defined below) and March 22, 2016) having passed after completion of the Marketing Period, and (v) other customary conditions as described in Section 13 — “Conditions of the Offer” of the Offer to Purchase. There is no financing condition to the Offer.

 

The Minimum Condition requires that, prior to the expiration of the Offer, there be validly tendered and not properly withdrawn that number of Shares (not including any Shares tendered pursuant to guaranteed delivery procedures unless and until such shares are actually delivered in accordance with the terms of the Offer) which, together with any Shares then owned by Comtech or Purchaser or their respective subsidiaries (if any), would represent a majority of the issued and outstanding Shares entitled to vote on the matter, as more fully described in the Offer to Purchase.

 

Purchaser and Comtech are not obligated to purchase any tendered Shares unless two business days (or such fewer number of business days that remain between the end of the Marketing Period and March 22, 2016) shall have passed after completion of a 19 consecutive business day marketing period (subject to certain blackout periods described in the Merger Agreement), which will commence no earlier than January 4, 2016 (but shall commence on January 4, 2016 assuming that, as of such date, Comtech has received all required information from TCS and such information is compliant), throughout which Comtech must have received certain financial information relating to TCS (the “Marketing Period”). See Section 13 — “Conditions of the Offer” of the Offer to Purchase.

 

The TCS board of directors (the “TCS Board”), acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS formed for the purpose of, among other things, evaluating and making a recommendation to the TCS Board with respect to the Merger Agreement and the transactions contemplated thereby, has, by unanimous vote of all of the directors, (i) determined that the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby are fair to and in the best interests of TCS and the stockholders of TCS, (ii) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated thereby and (iii) resolved, upon the terms and subject to the conditions set forth in the Merger Agreement, to recommend that the stockholders of TCS accept the Offer and tender their Shares to Purchaser in the Offer.

 

Subject to the provisions of the Merger Agreement, Purchaser and Comtech expressly reserve the right (but are not obligated), at any time or from time to time, to waive or otherwise modify or amend the terms and conditions of the Offer in any respect. Purchaser and Comtech have agreed in the Merger Agreement that they will not, without the prior written consent of TCS, waive or modify certain conditions as described in Section 1 — “Terms of the Offer” of the Offer to Purchase. Subject to the provisions of the Merger Agreement, Purchaser reserves the right to, and under certain circumstances TCS may require Purchaser to, extend the Offer, as described in Section 1 — “Terms of the Offer” of the Offer to Purchase.

 

 2 

 

  

Any extension or amendment of the Offer, waiver of a condition of the Offer, delay in acceptance for payment or payment, or termination of the Offer will be followed promptly by public announcement thereof, such announcement in the case of an extension to be issued not later than 9:00 a.m., New York City time, on the next business day after the previously scheduled Expiration Date in accordance with the public announcement requirements of Rules 14d-4(d), 14d-6(c) and l4e-1(d) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

In the event that Comtech or Purchaser acquires, as a result of the Offer or otherwise, at least a majority of the issued and outstanding Shares, the Merger will be effected pursuant to Section 3-106.1 of the Maryland General Corporation Law without a vote of TCS’ stockholders.

 

In all cases, payment for any Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of (a) certificates representing such Shares, an indication in the Letter of Transmittal of the tender of Direct Registration Book-Entry Shares (as defined in Section 3 — “Procedures for Tendering Shares” of the Offer to Purchase) or confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust Company pursuant to the procedures set forth in Section 3 — “Procedures for Tendering Shares” of the Offer to Purchase, (b) a Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in Section 3 — “Procedures for Tendering Shares” of the Offer to Purchase) in lieu of the Letter of Transmittal), and (c) any other documents required by the Letter of Transmittal.

 

For purposes of the Offer, Purchaser will be deemed to have accepted for payment and thereby purchased Shares validly tendered and not properly withdrawn prior to the Expiration Date if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for purposes of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.

 

A stockholder may withdraw Shares tendered pursuant to the Offer at any time on or prior to the Expiration Date, as described in Section 4 — “Withdrawal Rights” of the Offer to Purchase. For a withdrawal of Shares to be effective, a written notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the back cover of the Offer to Purchase. Any notice of withdrawal must specify the name of the person having tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the record holder of the Shares to be withdrawn, if different from that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as defined in Section 3 — “Procedures for Tendering Shares” of the Offer to Purchase), unless such Shares have been tendered for the account of any Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as set forth in Section 3 — “Procedures for Tendering Shares” of the Offer to Purchase, any notice of withdrawal must specify the name and number of the account to be credited with the withdrawn Shares. If certificates representing the Shares have been delivered or otherwise identified to the Depositary, the name of the registered owner and the serial numbers shown on such certificates must also be furnished to the Depositary prior to the physical release of such certificates.

 

*****

 

The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of the General Rules and Regulations under the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.

 

TCS has agreed to provide Purchaser with its list of stockholders and security position listings, in each case as of the most recent practicable date, and will provide Purchaser with such additional information and such other assistance for the purpose of disseminating the Offer to Purchase (and related documents) to holders of Shares. The Offer to Purchase and related Letter of Transmittal and other related documents will be mailed to record holders of Shares whose names appear on TCS’ stockholder list and will be furnished to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list

 

 3 

 

  

or, if applicable, who are listed as participants in a clearing agency’s security position listing, for subsequent transmittal to beneficial owners of Shares.

 

The receipt of cash in respect of a tender of Shares pursuant to the Offer and the exchange of Shares for cash pursuant to the Merger will each be a taxable transaction for U.S. federal income tax purposes and may also be a taxable transaction under applicable state, local, foreign or other tax laws. Holders of Shares are urged to consult with their own tax advisors as to the particular tax consequences of the Offer and the Merger to them.

 

The Offer to Purchase and the related Letter of Transmittal and TCS’ Solicitation/Recommendation Statement on Schedule 14D-9 filed with the United States Securities and Exchange Commission in connection with the Offer contain important information and each such document should be read carefully and in its entirety before any decision is made with respect to the Offer.

 

Questions and requests for assistance may be directed to the Information Agent at the address and telephone numbers set forth below. Requests for copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agent or to brokers, dealers, commercial banks, trust companies or other nominees. Such copies will be furnished promptly at Purchaser’s expense. Neither Comtech nor Purchaser will pay any fees or commissions to any broker or dealer or any other person (other than the Information Agent or as otherwise described in Section 16 — “Fees and Expenses” of the Offer to Purchase) in connection with the solicitation of tenders of Shares pursuant to the Offer.

 

The Information Agent for the Offer is:

 

 

 

501 Madison Avenue, 20th Floor

New York, NY 10022

 

Stockholders May Call Toll-Free: (888) 750-5834

Banks & Brokers May Call Collect: (212) 750-5833

 

December 7, 2015

 

 4 

 

 



Exhibit (a)(5)(F)​
Comtech Telecommunications Corp. Commences Tender Offer for TeleCommunication Systems, Inc.
MELVILLE, NY — Comtech Telecommunications Corp. (NASDAQ: CMTL or “Comtech”) today announced that its direct wholly owned subsidiary, Typhoon Acquisition Corp., has commenced its previously announced tender offer for all outstanding shares of common stock of TeleCommunication Systems, Inc. (NASDAQ: TSYS or “TCS”) at a price of  $5.00 per share, net to the seller in cash, without interest and less required withholding taxes. The tender offer is being made in connection with the Agreement and Plan of Merger, dated November 22, 2015, by and among Comtech, Typhoon Acquisition Corp. and TCS.
The board of directors of TCS, acting upon the unanimous recommendation of the special committee of independent, disinterested directors of TCS, has unanimously determined that the offer is fair to and in the best interests of TCS and its stockholders and recommends that the stockholders of TCS accept the offer and tender their shares.
The tender offer is scheduled to expire at midnight EDT, at the end of the day on Tuesday, January 5, 2016, unless extended.
Complete terms and conditions of the tender offer can be found in the Offer to Purchase, Letter of Transmittal and other related materials that will be filed by Comtech and Typhoon Acquisition Corp. with the SEC on December 7, 2015. In addition, on December 7, 2015, TCS will file a Solicitation/​Recommendation Statement on Schedule 14D-9 with the Securities and Exchange Commission (the “SEC”) relating to the offer.
Copies of the Offer to Purchase, Letter of Transmittal and other related materials are available free of charge by contacting Innisfree M&A Incorporated, the information agent for the tender offer, toll-free at (888) 750-5834 for stockholders or (212) 750-5833 for banks and brokers, and, when they become available, at the website maintained by the SEC at www.sec.gov. American Stock Transfer & Trust Company, LLC is acting as depositary for the tender offer.
About Comtech Telecommunications Corp.
Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. Comtech believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable, inefficient or too expensive. Comtech conducts business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. Comtech sells products to a diverse customer base in the global commercial and government communications markets. Comtech believes it is a leader in the market segments that it serves.
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc., headquartered in Annapolis, Maryland, is a world leader in secure and highly reliable wireless communications. TCS’ patented solutions, global presence, operational support and engineering talent enable 911, commercial location-based services and deployable wireless infrastructure; cybersecurity; defense and aerospace components; and applications for mobile location-based services and messaging. TCS’ principal customers are wireless network operators, defense and public safety government agencies, and Fortune 150 enterprises requiring high reliability and security.
Additional Information
This news release and the description contained herein is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of TCS. Comtech and its wholly owned subsidiary, Typhoon Acquisition Corp., intend to file with the SEC a Tender Offer Statement on Schedule TO containing an offer to purchase, a form of letter of transmittal and other documents relating to the tender offer, and TCS intends to file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. Comtech, Typhoon Acquisition Corp. and TCS intend to mail these documents

to the stockholders of TCS. These documents, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, will contain important information about the tender offer and TCS stockholders are urged to read them carefully when they become available. Stockholders of TCS will be able to obtain a free copy of these documents (when they become available) and other documents filed by TCS, Comtech or Typhoon Acquisition Corp. with the SEC at the website maintained by the SEC at www.sec.gov. In addition, stockholders may obtain a free copy of these documents (when they become available) by contacting Innisfree M&A Incorporated, the information agent for the tender offer, toll-free at (888) 750-5834 or (212) 750-5833 for banks and brokers.
Cautionary Statement Regarding Forward-Looking Statements
Certain information in this press release contains forward-looking statements regarding Comtech, including but not limited to, information relating to Comtech’s future performance and financial condition, plans and objectives of Comtech’s management and Comtech’s assumptions regarding such future performance, financial condition, plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under Comtech’s control which may cause actual results, future performance and financial condition, and achievement of plans and objectives of Comtech’s management to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, among other things: the risk that the acquisition of TCS may not be consummated for reasons including that the conditions precedent to the completion of the acquisition may not be satisfied or the occurrence of any event, change or circumstance that could give rise to the termination of the merger agreement; the possibility that the expected synergies from the proposed merger will not be realized, or will not be realized within the anticipated time period; the risk that Comtech’s and TCS’ businesses will not be integrated successfully; the risk that requisite regulatory approvals will not be obtained; the possibility of disruption from the merger making it more difficult to maintain business and operational relationships or retain key personnel; any actions taken by either of the companies, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); the timing of receipt of, and Comtech’s performance on, new orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales, rapid technological change, evolving industry standards, frequent new product announcements and enhancements, changing customer demands, and changes in prevailing economic and political conditions; risks associated with Comtech’s legal proceedings and other matters; risks associated with Comtech’s obligations under its revolving credit facility; and other factors described in Comtech’s and TCS’ filings with the SEC.
Media Contact for Comtech Telecommunications Corp.:
Michael D. Porcelain, Senior Vice President and Chief Financial Officer
(631) 962-7103
Info@comtechtel.com
2



 

Exhibit (d)(4)

 

PRIVILEGED AND CONFIDENTIAL

 

TELECOMMUNICATIONS SYSTEMS, INC.

 

CONFIDENTIAL

 

July 13, 2015

 

Comtech Telecommunications Corp.

68 South Service Road - Suite 230

Melville NY 11747

 

Attn.: Dr. Stanton Sloane

 

RE:  Confidentiality and Non-Disclosure Agreement

 

Ladies and Gentlemen:

 

In connection with your consideration of a possible transaction (a “Transaction”) with TeleCommunication Systems, Inc. or one or more of its subsidiaries (collectively, the “Company”), you have requested certain information concerning the Company. As a condition to your being furnished such information, we are requiring you to agree, as set forth in this letter agreement, to treat confidentially such information and any other information, whether oral, written, electronic or otherwise, that the Company or its agents or representatives (including attorneys and financial advisors) furnishes to you (in such capacity, the “Recipient”) or your directors, officers, employees, agents, advisors, prospective bank or institutional lenders or representatives (all of the foregoing are collectively referred to herein as the “Representatives” or the “Recipient’s Representatives”), whether furnished before or after the date of this letter agreement, and all reports, analyses, compilations, studies, reproductions, copies, notes, summaries and other materials prepared by the Recipient or the Recipient’s Representatives (in whatever form maintained, whether documentary, computer storage or otherwise) containing, reflecting or based upon, in whole or in part, any such information (collectively, the “Evaluation Material”).

 

The term “Evaluation Material” does not include information which (i) is or becomes generally available to the public other than as a result of a disclosure by the Recipient or the Recipient’s Representatives or anyone to whom the Recipient or the Recipient’s Representatives transmit any Evaluation Material in violation of this letter agreement, (ii) is or becomes known or available to the Recipient or the Recipient’s Representatives on a non-confidential basis from a source who is not, to the Recipient’s or the Recipient’s Representatives’ knowledge after reasonable inquiry, prohibited from transmitting the information to the Recipient or the Recipient’s Representatives by a contractual, legal or fiduciary obligation, or (iii) Recipient can demonstrate was independently developed by Recipient personnel without reference to information furnished by the Company or its agents or representatives.

 

   

 

  

In consideration of the furnishing of the Evaluation Material by the Company, you agree that:

 

1.           The Recipient shall protect the confidentiality of all Evaluation Material and, subject to Section 3 below, the Evaluation Material shall be kept confidential and shall not, without the prior written consent of the Company, be disclosed by the Recipient or any Recipient Representatives, in whole or in part, and shall not be used by the Recipient or any Recipient Representatives, directly or indirectly, for any purpose whatsoever other than in connection with evaluating, negotiating or advising with respect to a possible Transaction. For purposes of complying with the obligations set forth herein, Recipient shall use, at a minimum, efforts commensurate with those that it employs for the protection of its confidential information. Moreover, the Recipient agrees to disclose that it is evaluating a Transaction, and to transmit Evaluation Material to the Recipient’s Representatives only to the extent that the Recipient’s Representatives (a) need to know the Evaluation Material for the purpose of evaluating, negotiating or advising with respect to such Transaction, (b) are informed by the Recipient of the confidential nature of the Evaluation Material and of the terms of this letter agreement and (c) are directed by the Recipient to treat such Evaluation Material confidentially subject to the terms of this letter agreement and agree to keep such Evaluation Material confidential in accordance with the terms of this letter agreement. The Recipient shall maintain a record of its Representatives who have been provided with any Evaluation Material and what information was provided to them. The Recipient shall notify the Company immediately upon discovery of any loss, unauthorized disclosure or use of the Evaluation Material by the Recipient or its Representatives. In any event, the Recipient shall be fully responsible for any disclosure or use of Evaluation Material that is prohibited or not authorized by this letter agreement, including any such disclosure or use by its Representatives, and the Recipient agrees, at its sole expense, to take all commercially reasonable measures to restrain the Recipient’s Representatives from prohibited or unauthorized disclosure or use of the Evaluation Material and, in the event of any loss or unauthorized disclosure of the Evaluation Material, to assist the Company in every reasonable way to regain possession of the Evaluation Material.

 

2.           Without the prior written consent of the Company, neither Recipient nor its Representatives shall disclose to any person, (a) the fact that the Evaluation Material has been made available to the Recipient or that the Recipient has inspected any portion of the Evaluation Material, (b) the fact that any discussions or negotiations are taking place concerning a possible Transaction with the Company or (c) any of the terms, conditions or other facts with respect to any possible Transaction with the Company, including the status thereof, unless and only to the extent that such disclosure is, upon the advice of the Recipient’s legal counsel, required by applicable United States securities laws, other state or federal laws or Nasdaq rules. The term “person” as used in this Agreement shall be broadly interpreted to include, without limitation, any entity, individual or the media.

 

3.           In the event that the Recipient or any Recipient’s Representatives are requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Evaluation Material, it is

 

 2  

 

  

agreed that the Recipient shall notify the Company promptly of such requests(s) or requirement and the documents requested or required thereby so that the Company may seek an appropriate protective order and/or waive in writing compliance with the provisions of this letter agreement, and the Recipient shall cooperate with and assist the Company, at the Company’s expense, in any lawful endeavors to resist, oppose and limit such compelled disclosure. It is further agreed that, if in the absence of a protective order or the receipt of a waiver hereunder, the Recipient or the Recipient’s Representatives are nonetheless, upon the advice of the Recipient’s legal counsel, compelled to disclose such Evaluation Material, the Recipient or the Recipient’s Representative may disclose such information without liability hereunder; provided, however, that the Recipient shall disclose only that portion of the Evaluation Material that the Recipient’s legal counsel advises is required to be disclosed, and the Recipient or the Recipient’s Representative shall, if permissible, give the Company written notice of the information to be so disclosed (including a copy of such information being disclosed) as far in advance of its disclosure as is practicable and shall use its reasonable efforts, at the Company’s expense, to obtain an order or other reliable assurance that confidential treatment shall be accorded to such information required to be disclosed.

 

4.           The parties hereto acknowledge that neither the Company nor any of its representatives has made, or, except as may be otherwise provided in any definitive agreement relating to a Transaction, shall make, any representation or warranty, express or implied, as to the accuracy or completeness of the Evaluation Material. The parties hereto agree that, except as may be otherwise provided in any definitive agreement relating to a Transaction, neither the Company nor its representatives shall have any liability to the Recipient or its Representatives resulting from the Evaluation Material or the Company’s or its representatives’ consideration of, or participation in a process relating to, a possible Transaction.

 

5.           The Evaluation Material shall remain the property of the Company and no right or license is granted to the Recipient, its Representatives or any other person to any Evaluation Material. Nothing in this letter agreement obligates the Company to disclose any information relating to the Company to the Recipient or its Representatives or creates an agency or partnership relationship between the Company and the Recipient. Promptly upon request from the Company (and in any event within ten (10) business days after the Company’s request), the Recipient shall, except to the extent specifically prevented by law, redeliver to the Company or destroy all Evaluation Material delivered to the Recipient or its Representatives and any other material containing, prepared on the basis of, or reflecting any information in such Evaluation Material (whether prepared by the Company or its representatives, the Recipient or its Representatives or otherwise), including all reports, analyses, compilations, studies and other materials containing or based on the Evaluation Material, and the Recipient and its Representatives shall not retain any copies, extracts or other reproductions in whole or in part of such material. Notwithstanding the immediately preceding sentence, Recipient may keep one copy of the Confidential Information to the extent it is “backed-up” on electronic information management and communications systems or servers, is not available to an end user and cannot be expunged without considerable effort or expense. The destruction provided for in this Section 5 shall be confirmed in writing to the Company by an authorized officer supervising the same.

 

 3  

 

  

Notwithstanding the return or destruction of the Evaluation Material, the Recipient and its Representatives shall continue to be bound by the confidentiality and other obligations hereunder.

 

6.           For the purpose of the evaluation of the Evaluation Material and a possible Transaction, the Recipient and its Representatives shall not initiate or maintain contact in connection with or with respect to a possible Transaction with any director, officer, employee, agent or representative of the Company or any of its subsidiaries or affiliates without permission of the Company.

 

7.           The parties hereto acknowledge and agree that in the event of any breach of this letter agreement by the Recipient or its Representatives, the Company may be irreparably and immediately harmed and may not be made whole by monetary damages. It is accordingly agreed that the Company, in addition to any other remedy to which it may be entitled in law or equity, shall be entitled to seek an injunction or injunctions to prevent breaches of this letter agreement and to compel specific performance of this letter agreement, without the need for proof of actual damages, and Recipient further agrees to waive, and to cause its Representatives to waive, any requirement for the securing or posting of any bond in connection with such remedies. Such remedies shall not be deemed to be the exclusive remedies for a breach of this letter agreement but shall be in addition to all other remedies available at law or equity as determined by a court of competent jurisdiction.

 

8.           The Recipient and its Representatives agree not to use or disclose any nonpublic personal information furnished to it by the Company or any of its representatives, other than to carry out the purposes set forth in this letter agreement for which the Company or its representatives disclosed such information or otherwise to make the disclosures permitted herein. For purposes of this letter agreement, “nonpublic personal information” means nonpublic personal financial information and nonpublic personal health information as those terms are defined in applicable federal and state law, including the Gramm-Leach-Bliley Act (Financial Services Modernization Act of 1999) and comparable state laws. “Nonpublic personal financial information” includes personally identifiable financial information; and any list, description or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available. “Nonpublic personal health information” includes health information that identifies an individual who is the subject of the information or with respect to which there is a reasonable basis to believe that the information could be used to identify an individual.

 

9.           The parties hereto agree that each party reserves the right, in its sole and absolute discretion, to reject any or all proposals and to refuse to enter into or to terminate discussions and negotiations with, directly or indirectly involving, the other party at any time and shall not be obligated to enter into any definitive agreement with the other party. Each party hereto agrees to promptly inform the other of any decision by it not to proceed with a Transaction. Each party hereto agrees that unless and until a definitive agreement between the parties with respect to a Transaction has been executed and delivered, neither party shall be under any legal obligation of any kind whatsoever to enter into a Transaction by virtue of this or any other written

 

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or oral expression with respect to a Transaction by any of its representatives. However, the agreements set forth herein are and shall remain in full force and effect during the periods set forth herein.

 

10.         For a period of eighteen (18) months from the date of this letter agreement, the Recipient shall not, and shall cause its affiliates not to, directly or indirectly, acting alone or in concert with others, unless specifically requested in writing in advance by the Company:

 

a.           acquire, or offer, seek, propose or agree to acquire, directly or indirectly, by purchase or otherwise, any equity securities (or securities convertible into equity securities) of the Company or any of the assets or businesses of the Company, or any right or option to acquire any of the foregoing (including from a third party), or make any public announcement (or request permission to make any such announcement) with respect to any of the foregoing;

 

b.           solicit proxies or consents or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Securities Exchange Act of 1934, as amended) of proxies or consents with respect to any voting securities of the Company with regard to any matter;

 

c.           seek to control or influence the management or the Board of Directors of the Company, seek or propose to obtain representation or further representation on the Board of Directors of the Company or any committee thereof, seek to advise, encourage or influence any person with respect to the voting of any equity or other securities of the Company or seek to induce or in any manner assist any other person to initiate any stockholder proposal with respect to any securities of the Company, any change of control of the Company or for the purpose of convening any meeting of stockholders of the Company or to initiate any tender or exchange offer for equity or other securities of the Company;

 

d.           except as required by law, make any public or other announcement, or any written or oral offer, proposal or inquiry relating to a tender or exchange offer for any equity or other securities of the Company, or any merger, consolidation, business combination or other transaction that would result in a change of control, sale of assets, liquidation or other extraordinary corporate transaction between the Company and the Recipient and/or any of its affiliates (each such transaction being referred to herein as an “Acquisition” or take any action which would reasonably be expected to require the Company to make a public announcement regarding any Acquisition;

 

e.           deposit any equity or other securities of the Company in a voting trust or subject any such securities of the Company to any arrangement or agreement with respect to the voting, ownership or economic interest of any such securities of the Company;

 

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f.            form, join or in any way participate in any partnership, limited partnership, syndicate or other group (or otherwise act in concert with any other person) for the purpose of acquiring, holding, voting or disposing of any equity or other securities of the Company or taking any other actions restricted or prohibited under clauses (a) through (e) of this Section 10; or

 

g.           propose, request or otherwise seek to have the Company amend or waive any provision of this Section 10;

 

provided, that the Recipient shall not be precluded from communicating solely and exclusively with the Board of Directors of the Company with respect to (i) a transaction involving the Company or (ii) seeking a waiver of any of the provisions of Section 10.

 

If the Recipient receives any proposal, inquiry or other communication with respect to any of the foregoing, it shall promptly advise the Company thereof, and inform the Company of the source and details of such proposal, inquiry or communication.

 

Notwithstanding the foregoing restrictions in this Section 10, the Recipient may purchase goods or services of the Company or submit proposals for the purchase or sale of goods or services to the Company in the ordinary course of business consistent with past practice.

 

The Recipient hereby represents to the Company that, neither it nor any of its affiliates owns (including, but not limited to, beneficial ownership as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) any equity or other securities issued by the Company as of the date hereof.

 

The restrictions in this Section 10 (the “Standstill Provision”) shall not be applicable to Recipient, its subsidiaries or their respective Representatives, and any of the foregoing shall be permitted to take any and all of the actions contemplated in this Section 10, if: (A) the Company shall specifically consent thereto, (B) the Company enters into a definitive agreement with any person (or the Company publicly announces its intention to enter into any such agreement) involving (i) any acquisition of any equity securities (or securities convertible into equity securities) of the Company carrying in the aggregate the right to cast at least a majority of the votes entitled to be cast for the election of directors (“Majority Shares”) of the Company or of subsidiaries representing substantially all of the consolidated assets of the Company and its subsidiaries (“Substantial Subsidiaries”), or any acquisition of all or substantially all of the consolidated assets of the Company and its subsidiaries, or (ii) any tender or exchange offer, merger or other business combination involving the Majority Shares of the Company or its Substantial Subsidiaries (or the commencement thereof), or (C) any person shall have commenced a tender or exchange offer for the Majority Shares of the Company for the purpose of effecting a change of control of the Company (or shall have publicly announced an intention to commence any such offer).

 

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11.         For a period of eighteen (18) months after the date of this letter agreement, the Recipient agrees that it and its affiliates shall not, directly or indirectly, (a) use the Evaluation Material to develop its own business or compete with the Company, or (b) solicit for employment or hire (as an employee, independent contractor or otherwise) any person with whom Recipient becomes aware as a result of the Evaluation Material or otherwise in connection with the Transaction who is currently employed by the Company or any of its affiliates; provided, that the foregoing shall not prohibit general solicitations for employees or public advertising of employment opportunities (including through the use of employment agencies, search firms, advertisement, web posting or other similar form of solicitation) of employment not specifically directed toward employees of the Company and, provided further, that the foregoing shall not preclude the Recipient from hiring any employee of the Company (other than managers or officers of the Company) who is under no restriction regarding such employment and who (i) initiates discussions with the Recipient regarding such employment without any direct or indirect solicitation by the Recipient, (ii) has had his or her employment terminated by the Company or its affiliates prior to commencement of discussions between the Recipient and such employee or (iii) responds to any general solicitation placed by the Recipient not directed towards employees of the Company.

 

12.         The Recipient is aware, and will advise its Representatives who are informed of the matters that are the subject of this letter agreement, of the restrictions imposed by the United States securities laws on the purchase or sale of securities by any person who has received material, non-public information from the issuer of such securities and on the communication of such information to any other person when it is reasonably foreseeable that such other person is likely to purchase or sell such securities in reliance upon such information.

 

13.         To the extent that any Evaluation Material includes materials or other information that may be subject to the attorney-client privilege, work product doctrine or any other applicable privilege or doctrine concerning any pending, threatened or prospective action, suit, proceeding, investigation, inquiry, arbitration or dispute, the parties hereto acknowledge and agree that they have a commonality of interest with respect to such action, suit, proceeding, investigation, inquiry, arbitration or dispute, and agree that it is their mutual desire, intention and understanding that the sharing of such materials and other information is not intended to, and shall not, affect the confidentiality of any of such materials or other information or waive or diminish the continued protection of any of such materials or other information under the attorney-client privilege, work product doctrine or other applicable privilege or doctrine. Accordingly, all Evaluation Material that is entitled to protection under the attorney-client privilege, work product doctrine or other applicable privilege or doctrine shall remain entitled to protection thereunder and shall be entitled to protection under the joint defense doctrine, and Recipient agrees to take all commercially reasonable measures necessary to preserve, to the fullest extent possible, the applicability of all such privileges and doctrines.

 

14.         As the parties hereto may be, or may be deemed to be, competitors in some product lines, they agree that disclosures of competitively sensitive Evaluation Material (e.g., information concerning prices, pricing plans and strategies, bidding and costs for competitive

 

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product lines) shall not occur until the parties have determined based upon their due diligence that there is a reasonable likelihood that they will want to engage in a Transaction and that such disclosure is necessary in order for the parties to evaluate the business and prospects and hence whether to undertake a Transaction. The parties hereto further agree that any such disclosures will be made only in accordance with applicable antitrust laws. The parties hereto understand that a Transaction may be subject to the U.S. Hart-Scott-Rodino Act and require that Notification and Report Forms be submitted to the antitrust authorities. The parties hereto further understand that the definitive agreement concerning a Transaction will contain further provisions on the sharing of competitively sensitive Evaluation Material in order to ensure compliance with all applicable antitrust laws until the Transaction closes (or in the event the Transaction does not close). The parties hereto may determine that, in order to evaluate a Transaction under antitrust or competition laws, it would further their common interest to exchange more detailed information under appropriate conditions.

 

15.         This letter agreement will continue in effect for a period of two (2) years from the date hereof.

 

16.         This letter agreement contains the entire agreement of the parties, supersedes any and all prior agreements, written or oral, between them relating to the subject matter hereof, and may not be amended unless agreed to in writing by each party hereto. The provisions set forth in this letter agreement, including, without limitation, this paragraph, may be waived only by a separate writing by both of the parties hereto expressly so waiving such provisions. It is understood and agreed that no failure or delay by the Company in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder.

 

17.         The invalidity or unenforceability of any provision of this letter agreement shall not affect the validity or enforceability of any other provisions of this letter agreement, which shall remain in full force and effect. In the case of any such invalidity or unenforceability, the parties hereto shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

 

18.         This letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to the principles of conflict of laws thereof. The parties hereto irrevocably consent to the exclusive jurisdiction of the courts of the State of New York located in New York County and the federal court in the Southern District of New York for any actions or proceedings arising from or related to the matters set forth in this letter agreement.

 

19.         This letter agreement shall benefit and bind successors and assigns of each party hereto. This letter agreement may not be assigned in whole or in part by either party hereto without the prior written consent of the other party hereto.

 

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20.         This letter agreement may be executed in multiple counterparts, each of which shall be an original with the same effect as if the signatures thereto were upon one instrument.

 

[Signatures follow on next page.]

 

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If the Recipient is in agreement with the foregoing, please sign and return one copy of this letter agreement, which thereupon shall constitute our agreement with respect to the subject matter hereof.

 

  Very truly yours,
   
  TELECOMMUNICATION SYSTEMS, INC.
     
  By: /s/ Tom Brandt
    Name: Tom Brandt
    Title:   SVP/CFO

 

Confirmed and Agreed:

 

COMTECH TELECOMMUNICATIONS CORP.

 

By: /s/ Dr. Stanton Sloane  
  Name: Dr. Stanton Sloane  
  Title: President and CEO  

 

 10  



 

Exhibit (d)(5)

 

TEAMING AGREEMENT

 

THIS AGREEMENT, made and entered into this 25th day of March, 2010 between Comtech Systems Inc, (“CSI”), a Delaware Corporation, with its principal office in Orlando, Florida and Telecommunication Systems, Inc. (“TCS”) with its principal offices in Annapolis, Maryland

 

WHEREAS, the United States Government (“Customer”) has the need and may solicit for a short range troposcatter communications capability with the US air defense artillery (ADA) (“Program”), and potentially with a wider customer base within the US military, and

 

WHEREAS, TCS is a prime contractor on the WWSS IDIQ contract vehicle and TCS holds the contract for the supply of SIPR/NIPR Access Point (SNAP) VSAT terminals sold to the US military, and

 

WHEREAS, TCS is a valued communications systems integrator to the US military, and CSI designs, supplies and manufactures troposcatter communications equipment for the US military and other global customers, and CSI is a valued communications systems integrator to US and global customers, and  

 

WHEREAS, CSI and TCS, consistent with the Government’s policy on Teaming Agreements (FAR Subpart 9.6), believe that a teaming relationship between the two will offer the Customer the best combination of capabilities to achieve optimum performance, cost, and delivery for the Program requirements. To this end, the parties desire to enter into a Teaming Agreement to provide for the respective responsibilities in the joint preparation of a proposal in response to the solicitation and for the work to be performed under a resultant contract which may be implemented by one or more of the following means: (i) task orders under the WWSS IDIQ contract; (ii) other contract vehicle opportunity(es); ; or, (iii) separate open market transactions.

 

NOW THEREFORE, in consideration of the obligations and covenants created herein, the parties mutually agree as follows:

 

1.     This Agreement shall not constitute, create, give effect to, or otherwise imply a joint venture, partnership or formal business organization of any kind. Each party hereto is an independent contractor and nothing contained in this Agreement shall be construed to be inconsistent with this relationship or status. Neither party owes a fiduciary duty to the other. Nothing in this Agreement shall be construed in any way to constitute either party as the agent, employee, or representative of the other. As an independent contractor, each party has relied on its own expertise or the expertise of its legal, financial, technical, or other advisors.

 

2.     TCS will act as the Prime Contractor with CSI as a Sub-Contractor for purposes of preparing and submitting the proposal(s) in response to any solicitation and for purposes of performing the resultant contract. CSI shall use good faith efforts to prepare those portions of the combined proposal relating to its contribution to the Program, as described in Exhibit A, or as may be further identified and agreed upon by CSI and TCS from time to time. CSI will submit its complete proposal(s) to TCS no later than the due date mutually agreed to by the parties. TCS shall have the final responsibility for the preparation, evaluation, and submission of the proposal(s) to the Customer, however, CSI shall be given the opportunity to review and concur with any proposal(s) before submission. All contacts with the Customer pertaining to the

 

   

 

 

 

preparation of proposals and pursuit of this opportunity shall be coordinated through TCS. Each party shall be responsible for its own costs associated with this Agreement.

 

3.     The division of work and responsibility between the parties in pursuing the Program contemplated by this Agreement, including all proposals, and the TCS contract, together with all amendments and modifications, is defined and set forth in Exhibit A.

 

4.     TCS’s proposal to the Customer will contain and identify CSI’s contribution to the proposal and will also indicate that TCS intends to award a subcontract to CSI for the work defined as CSI’s responsibility in Exhibit A. Nothing herein shall be construed to limit or restrict the rights of either party to quote, offer to sell or sell to any party other than the Customer any products and services which are regularly offered for sale and which are not unique to this Project. In addition, in the event this Agreement is terminated either party shall be free to pursue their individual technical approaches which are unique to this Agreement with any other party..

 

5.     CSI and TCS agree to participate exclusively with each other in pursuing the award for the aforementioned Program and that neither will participate in any other proposal or team effort for the work defined in Exhibit A or in response to the Program unless such other participation has been mutually agreed upon in writing by the parties hereto. Nothing herein shall be construed or interpreted to apply to any other CSI subsidiary, affiliate, entity, or business unit, or any other TCS subsidiary, affiliate, entity, or business unit. Further, nothing contained herein shall be deemed to restrict either party from quoting, offering to sell, or selling to others standard commercial products or services regularly offered to the public. TCS reserves the right to add other team members as required, consistent with Exhibit A.

 

6.     In the event TCS is awarded a contract or task order(s) for the Program, TCS agrees to negotiate in good faith and award a subcontract to CSI for the portion of the Program described in Exhibit A, consistent with the Statement of Work, price, and terms and conditions of the prime contract with the Customer. The value of the subcontract awarded shall be no less than the amount contained in the portion of the applicable proposal except as modified by prior mutual agreement between the parties. It is also agreed that any such subcontract shall provide specifically, relative to any Termination for Convenience clause, that the prime contractor may terminate the subcontract for convenience of the prime contractor, in whole or in part, only in the event the related part of the prime contract is terminated, in whole or in part, prior thereto by and for the Convenience of the Customer or in the event that the Customer so modifies the prime contract as to eliminate the necessity of the work to be performed by subcontractor in whole or in part.

 

7.     Each party acknowledges (i) the risks and obligations of its undertakings; (ii) the uncertainty of the benefits; and (iii) its assumption of such risks, obligations and uncertainty. Each party has conducted its own due diligence and requested and reviewed any contracts, business plans, financial documents, and other written material as in such party’s opinion shall be the basis of that party’s decision to enter into this Agreement.

 

8.     Each party has consulted such legal, financial, technical, or other expert it deems necessary or desirable before entering into this Agreement. Each party represents and warrants that it has read, knows, understands, and agrees with the terms and conditions of this Agreement. Neither party has relied upon any oral representation of the other party in entering into this Agreement. All discussions, estimates, or projections developed by a party during the course of negotiating the terms and conditions of this

 

   

 

  

Agreement are by way of illustration only, and, unless specifically contained in this Agreement or one of its exhibits, are not binding or enforceable against the other party in law or in equity.

 

9.     Except for liability arising from a breach of Paragraphs 10 (proprietary information) and 19 (intellectual property), notwithstanding any other provision of this Agreement, under no circumstances shall either party be liable for special, incidental, indirect, or consequential damages as a result of a breach of any provision of this Agreement.

 

10.   With respect to proprietary information exchanged between the parties during the term of this Agreement, the Proprietary Information Non Disclosure Agreement signed 9 November 2009 and any amendments incorporated herein by this reference as Exhibit B, shall apply.

 

11.         All rights and obligations of the parties under this Agreement shall terminate upon the happening of any one of the following:

 

a.Cancellation by the Customer of either its solicitation or the requirements for the portion of the Program contemplated by this Agreement.

 

b.TCS is not awarded a contract or task order for the Program within nine months of effective date of this Agreement.

 

c.Refusal of the Customer to approve CSI as the source and subcontractor for its portion of the Program as described in Exhibit A. TCS, in consultation and cooperation with CSI, shall make good faith efforts to determine the cause for the Customer’s direction and to use good faith efforts to convince the Customer to accept the Sub for the work in Exhibit A.

 

d.Upon award of the final task order(s) under the contract from the Customer to TCS, and award of the associated subcontract, in accordance with this Teaming Agreement, covering the work contemplated by Exhibit A.

 

e.Mutual written agreement of the parties to terminate this Agreement.

 

f.A material breach by either party of any of the provisions contained herein. In the case of a material breach capable of remedy, the breaching Party shall have 14 days after receipt of written notice or such longer period as the Parties may mutually agree upon in writing, to remedy such a breach.

 

g.During the term hereof it is determined that either party is prohibited from receiving an award due to Debarment, Suspension, Ineligibility, Denial, or a Conflict of Interest; all as described in FAR Subparts 9.4 and 9.5.

 

h.TCS’s inability to get the SNAP/Tropo terminal listed on the WWSS IDIQ contract within nine (9) months of the execution date of this agreement.

 

The restrictions on the handling of proprietary information set forth in Paragraph 10 of this Agreement shall remain in effect as so specified. The restrictions on the handling of proprietary

 

   

 

  

information pursuant to any subcontract between the parties shall be as specified in the subcontract. Articles 9, 16, 18 and 19 shall survive the termination of the Agreement for a period of 5 years.

 

12.   Neither party has knowledge of any actual or potential organizational conflict of interest (OCI) as defined in Part 9 of the FAR (a situation in which either party has an interest or relationship or unequal access to information which could adversely affect that party’s ability to perform under any contract or Program contemplated under this Agreement) that would render either Party unable to give impartial assistance or support to the other Party; interfere with objectivity in performing the contemplated contract work; give either party an unfair competitive advantage; or preclude the Parties from being eligible for and being able to perform the contract contemplated by this Agreement. If a potential or actual conflict of interest matter becomes known by either Party after the effective date of this Agreement, written notice of the matter will be given within five business days to the other party. If the parties conclude that an actual conflict of interest exists, and it cannot be satisfactorily resolved through good faith negotiations, either Party may terminate this Agreement by written notice.

 

13.   Both parties agree, in pursuing the award of a one or more task orders under the prime contract for the Program contemplated by this Agreement, that they will each comply with applicable Federal Law, including but not limited to 41 USC 423 (Procurement Integrity) and the implementing Federal Acquisition Regulations.

 

14.   With regard to any subcontract between the parties that may result from this Agreement, the receiving party represents and warrants that no technical data furnished to it by the disclosing party shall be disclosed to any foreign nation, firm, or country, including foreign nationals employed by or associated with the receiving party, nor shall any technical data be exported from the United States without first complying with all requirements of the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR), including the requirement for obtaining any export license if applicable. The receiving party shall first obtain the written consent of the disclosing party prior to submitting any request for authority to export any such technical data. The receiving party shall indemnify and hold the disclosing party harmless for all claims, demands, damages, costs, fines, penalties, attorney’s fees, and all other expenses arising from the failure of the receiving part to comply with this clause or the ITAR and EAR.

 

15.   Neither party shall assign or in any manner transfer its interests or any part thereof in this Agreement. The foregoing shall not apply to assignment to any successor corporation in the event either party shall change its corporate name or merge with another corporation.

 

16.   This Agreement shall be governed by, subject to, and construed in accordance with, the laws of the State of New York.

 

17.   Any news release, public announcement, advertisement, or publicity proposed to be released by CSI or TCS concerning the program or its efforts in connection with the proposals or any resulting contract, will be subject to the written approval of the other party prior to release, which will not be unreasonably withheld. Full consideration and representation as to the roles and contributions of both parties shall be given in any such release information.

 

18.   a. Any controversy or claim arising out of or relating to this Agreement, or breach thereof, which cannot first be settled amicably and satisfactorily between the parties, shall be settled in New York

 

   

 

  

by arbitration in the English language in accordance with the Rules of the American Arbitration Association utilizing one arbitrator. The Appointing Authority shall be the president of the American Arbitration Association. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The Arbitrator(s) award may include compensatory damages against either party and shall be limited by the provisions of Article 9. Under no circumstances will the Arbitrator(s) be authorized to, nor shall they award punitive damages or multiple damages against either party. The Arbitrators shall have the authority but not the obligation to award the costs of arbitration and reasonable attorney’s fees to the prevailing party; however, if the Arbitrators do not award such costs and fees, each party will be responsible for its costs incurred in arbitration except that the costs and fees imposed by the Arbitrators for their expenses shall be borne equally by the parties.

 

b.  Notwithstanding the above, either party may seek injunctive relief in any court of competent jurisdiction against improper use or disclosure of proprietary information.

 

c.  Notwithstanding the above, the parties’ failure in good faith to reach mutual agreement on the terms and conditions of a subcontract under this Agreement pursuant to Article 6 shall not be considered a controversy or claim subject to arbitration under this Article.

 

19.

a. For purposes of this Agreement, the term Intellectual Property shall mean patented and unpatented inventions, mask works, copyrighted works, trade secrets, know-how and proprietary information of either party (hereinafter “Intellectual Property”). It is mutually understood and agreed that neither party shall acquire, directly or by implication, any rights in any Intellectual Property of the other party owned, controlled, acquired, developed, authored, conceived or reduced to practice prior to the date of this Agreement, including but not limited to, inventions described and claimed in applications for U.S. Letters Patent filed prior to the date of this Agreement, except as expressly provided herein or in any resulting subcontract between the parties.

b.  Each party hereto, insofar as it is free to do so without obligation to others, hereby authorizes the other party to use its Intellectual Property solely as necessary for the performance of each party’s respective obligations under this Agreement. Similarly, and only to the extent that a party is free to do so without obligation to others, any subcontract between the parties resulting from this Agreement shall contain appropriate royalty-free cross licenses between the parties so as to enable each such party to use Intellectual Property of the other party to perform its obligations under said subcontract and the associated prime contract with the Government.

 

c.  Subject to any rights of the Government, each party shall retain title to any Intellectual Property if developed, authored, conceived or reduced to practice independently and solely by that party during the performance of this Agreement without the other party’s Intellectual Property. In such event, no license, express or implied, shall inure to the benefit of the other participating party to prepare copies and derivative works of such copyrighted works or to make, use, sell and export/import products or processes incorporating such Intellectual Property, except as expressly provided herein or in any resulting subcontract between the parties.

 

d.  In the event Intellectual Property is developed by one party during the performance of this Agreement, which invention or copyrighted work necessarily derives from and incorporates Intellectual Property disclosed by the other party, such invention and/or copyrighted works shall be and remain the property of the inventing party; provided, however, that the inventing party shall and does

 

   

 

  

hereby grant to the other party hereto a nonexclusive, worldwide, royalty-free, irrevocable right and license to make copies and derivative works of such Intellectual Property, and to make, have made, use, sell and have sold solely for use on the Program such invention, products or processes incorporating such Intellectual Property.

 

e.  In the event Intellectual Property is developed jointly by the parties during the performance of this Agreement, unless expressly provided otherwise in any subsequent subcontract between the parties resulting from this Agreement, such Intellectual Property shall be owned jointly by the parties unless one of the parties elects not to participate in such joint ownership. Neither party shall take action with respect thereto which will adversely affect the rights of the other party without the prior written consent thereof. As to all such jointly owned Intellectual Property, each owning party shall be free to use, practice and license non-exclusively such jointly owned Intellectual Property, without in any way accounting to the other owning party, except that each owning party agrees to use reasonable efforts to maintain such jointly owned Intellectual Property as confidential and proprietary in the same manner it treats its own Intellectual Property of a similar character. Procedures for seeking and maintaining protection such as patents or copyrights for jointly owned Intellectual Property shall be mutually agreed in good faith by the owning parties. Any party which does not bear its proportionate share of expenses in securing and maintaining patent protection on jointly owned Intellectual Property in any particular country or countries shall surrender its joint ownership under any resulting patents in such country or countries.

 

20.   Neither party will be liable to the other for expenses or costs incurred by it during any phase of the preparation of proposals, or for any work thereunder, or any negotiations, which may follow either with the Customer.

 

21.   If any part, term, or provision of this Agreement shall be held void, illegal, unenforceable, or in conflict with any law of a Federal, State, or local Government having jurisdiction over this Agreement, the validity of the remaining portions of provisions shall not be affected thereby. In the event that any part, term or provision of this Agreement is held void, illegal, unenforceable, or in conflict with any law of the Federal, State, or local Government having jurisdiction over this Agreement, the parties agree, to the extent possible, to include a replacement provision, construed to accomplish its originally intended effect, that does not violate such law or regulation.

 

22.   This Agreement states the entire understanding between the parties with respect to the subject matter, and all prior and contemporaneous understandings, representations, and agreements whether oral or in writing are merged and superseded. No alteration, modification, release, or waiver of this Agreement or any of the provisions herein shall be effective unless agreed to in writing and executed by both parties.

 

   

 

  

23.   All notices, certificates, acknowledgments and other reports sent by a party under this Agreement, shall be in writing and shall be deemed properly delivered when duly mailed by certified mail to the other party at its address as follows, or to such other address as either party may, by written notice, designate to the other.

 

CSI   TCS
     
2900 Titan Row, Suite 142   206 Kelsey Lane
Orlando, Florida   Tampa, Florida 33619

ATTN: Frank Kenniasty   ATTN: Art Ackerman
Tel: 407-854-1950   Tel: 813-418-8001
Fax: 407-851-6960   Fax:  

  

24.   The persons signing this Agreement have the authority to bind and sign on behalf of their respective parties.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above set forth.

 

CSI   TCS
         
By: /s/ Richard L. Burt   By: /s/ A. Celeste Ciecierski
  Richard L. Burt     A. Celeste Ciecierski
  President     Vice President, Contracts

 

   

 

  

EXHIBIT A

 

TCS:

 

· TCS will be the prime contractor for the sales of the SNAP/Tropo terminals to the US military awarded through the WWSS.
·TCS will undertake the final integration, test and shipment of the terminals
·TCS will subcontract with CSI for the integrated troposcatter portion of the terminal that for each system will consist of CSI and TCS supplied elements as follows:
oCSI will supply:
One integrated transit case including the CS6716A non-redundant modem, CS4400 Frequency Converter System, power supply, and relevant cables to interface with the amplifier, fuses and switches. CS6716A will have an Ethernet interface.
Integrated transit case including a solid state 500 W C band (4.4-5.0 GHz) amplifier, output filter and relevant cables, waveguide, fuses and switches, input pre-selectors and filter control cards, and LNA’s. Quantity per system will depend on the level of diversity desired.
Antenna controller.
oTCS will supply:
One antenna, either 1.2 or 2 m and feed depending on the customer requirements.
SNAP Baseband equipment and interconnect cabling from the baseband equipment.
UPS
Graphical user interface for the system control using CSI provided elements for the modem, FCS and antenna controller.
·TCS will provide global integrated logistics support (ILS) to the Customer, provided that CSI will be subcontracted to provide the training, repair and spares supply for the troposcatter equipment.
·TCS will use its best efforts in adding the SNAP/Tropo Terminal to the WWSS contract as an enhancement to the SNAP line item list. This is the objective strategy. To satisfy immediate requirements, TCS reserves the right to sell outside of the WWSS contract vehicle.
·The tropo portion will initially consist of 2 CLINS’s, one for each tropo transit case subsystem; additional CLINs may be added based on customer need.
·TCS will provide CSI with a quarterly forecast of troposcatter terminal equipment to be purchased.

 

CSI:

 

·CSI will be the exclusive subcontractor on the Program for the supply of troposcatter terminal equipment as listed above.
·CSI will support the sales efforts of the SNAP/Tropo terminals and TCS agrees to include CSI in any customer presentations, and meetings related to the sale of the equipment.
·CSI will supply its products on a commercial off the shelf (COTS) basis with standard commercial warranties.
·CSI will have responsibility for international sales of the terminals.

 

   

 

  

  

Amendment 01

To The

COMTECH Systems, Inc. (CSI)/TeleCommunication Systems, Inc.,

Teaming Agreement, dated 25 March 2010

 

RECITALS

 

WHEREAS, the above Parties first entered into a Teaming Agreement, effective 25 March 2010 (the Agreement), where TCS will be the prime contractor for the sale of the 3T terminals awarded through the WWSS contract (the program). And TCS will be the prime contractor for the sales of the 3T terminals to the U.S. Artillery Missile Defence (AMD) CSI will be the exclusive subcontractor on the Program for the supply of troposcatter terminal equipment as listed above, and;

 

WHEREAS, the above Parties now wish to extend the Term of the agreement until September 2012 and

 

WHEREAS, the above Parties now wish to expand the scope of the Agreement to include sales of the CSI Modified, Transportable Communications Trailer (TCT) to Integrated Army Missile Defence (IAMD).

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that this Agreement is hereby amended as follows:

 

1)The Teaming Agreement will expire September 25, 2012

 

2)Exhibit A to that Agreement is hereby revised to include the sale of Comtech TCT type Terminals to IAMD

 

3)Exhibit A to that Agreement is hereby revised to amend the Antenna Controller in the CSI supply list to be supplied with TCT terminal only.

 

All terms, conditions and provisions of the original Teaming Agreement, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above set forth.

 

CSI   TCS
         
By: /s/ Richard L. Burt   By: /s/ A. Celeste Ciecierski
  Richard L. Burt     A. Celeste Ciecierski
  President     Vice President, Contracts
         
  Date: 02/28/11     Date: 02/28/11

 

   

 

  

EXHIBIT A, Revised February 15, 2011

 

TCS:

 

·TCS will be the prime contractor for the sales of the 3T terminals awarded through the WWSS.
·TCS will be the prime contractor for the sales of the 3T terminals to the USAMD.
·TCS will undertake the final integration, test and shipment of the terminals
·TCS will subcontract with CSI for the integrated troposcatter portion of the terminal that for each system will consist of CSI and TCS supplied elements as follows:
oCSI will supply:
One integrated transit case including the CS6716A non-redundant modem, CS4400 Frequency Converter System, power supply, and relevant cables to interface with the amplifier, fuses and switches. CS6716A will have an Ethernet interface.
One Integrated transit case including a solid state 500 W C band (4.4-5.0 GHz) amplifier, output filter and relevant cables, waveguide, fuses and switches, input pre-selectors and filter control cards, and LNA’s. Quantity per system will depend on the level of diversity desired.
oTCS will supply:
One antenna, either 1.2 or 2 m and feed depending on the customer requirements.
SNAP Baseband equipment and interconnect cabling from the baseband equipment.
UPS. The UPS is for the SNAP portion only, not the tropo.
Graphical user interface for the system control using CSI provided elements for the modem, FCS and antenna controller. Graphical user interface to control SNAP antenna positioner with input from high-precision compass

 

·TCS will provide global integrated logistics support (ILS) to the Customer, provided that CSI will be subcontracted to provide the training, repair and spares supply for the troposcatter equipment.
·TCS will use its best efforts in adding the 3T Terminal to the WWSS contract as an enhancement to the SNAP line item list. This is the objective strategy. To satisfy immediate requirements, TCS reserves the right to sell outside of the WWSS contract vehicle.
·The tropo portion will initially consist of 2 CLINS’s, one for each tropo transit case subsystem; additional CLINs may be added based on customer need.
·TCS will provide CSI with a quarterly forecast of troposcatter terminal equipment to be purchased.

 

TCS:

·TCS will be the prime contractor for the sales of the TCT terminals to the US IAMD awarded through the WWSS.
·TCS will undertake the final integration, test and shipment of the terminals

 

   

 

  

·TCS will subcontract with CSI. Each system will consist of CSI and TCS supplied elements as follows:
oCSI will supply:
The Transportable Tropo Antenna (TFLA type) with antenna controller and the following troposcatter equipment integrated in the rear compartment of the Trailer; the CS6716A non-redundant modem, CS4400 Frequency Converter System, power supply, and relevant cables to interface with the amplifier, fuses and switches. CS6716A will have an Ethernet interface.
Two Integrated solid state 500 W C band (4.4-5.0 GHz) amplifiers, output filter and relevant cables, waveguide, fuses and switches, input pre-selectors and filter control cards, and LNAs.
Rear compartment equipment rack will contain rack space and cabling to accommodate end user specified baseband and SATCOM equipment, if space available with final statement of work to be determined
Exterior I/O panels
CSI to test Tropo portion of terminal.
oTCS will supply:
One antenna, either 1.2 or 2 m and feed depending on the customer requirements for SATCOM capabilities.
End user specified Baseband equipment
Graphical user interface for the system control using CSI provided elements for the modem, FCS and antenna controller.
TCS to test Satellite portion of terminal.
·TCS will provide global integrated logistics support (ILS) to the Customer, provided that CSI will be subcontracted to provide the training, repair and spares supply for the troposcatter equipment.
·TCS will use its best efforts in adding the TCT to the WWSS contract as an enhancement to the SNAP line item list. This is the objective strategy. To satisfy immediate requirements, TCS reserves the right to sell outside of the WWSS contract vehicle and add other future Air Defense opportunities through deal registration with Comtech’s approval.
·TCS will provide CSI with a quarterly forecast of troposcatter terminal equipment to be purchased.

 

CSI:

 

·CSI will be the exclusive subcontractor for both the AMD and IAMD Programs for the supply of troposcatter terminal equipment as listed above.
·CSI will support the sales efforts of the 3T and TCT Type terminals and TCS agrees to include CSI in any customer presentations, and meetings related to the sale of the equipment.
·CSI will supply its products on a commercial off the shelf (COTS) basis with standard commercial warranties.
·CSI will have responsibility for international sales of the terminals.

 

   

 

  

Amendment 02

To The

COMTECH Systems, Inc.(CSI)/ TeleCommunication Systems, Inc.,

(TCS) Teaming Agreement, dated 25 March 2010 and Amendment

01 dated 28 February 2011

 

RECITALS

 

WHEREAS, the above Parties first entered into a Teaming Agreement, effective 25 March 2010 (the Agreement), where TCS will be the prime contractor for the sale of the 3T terminals awarded through the WWSS contract (the program). TCS will be the prime contractor for the sales of the 3T terminals to the U.S. Artillery Missile Defense (AMD) CSI will be the exclusive subcontractor on the Program for the supply of troposcatter terminal equipment as listed above, and;

 

WHEREAS, the above Parties did extend the Term of the Agreement until September 25, 2012, and;

 

WHEREAS, the above Parties now wish to expand the scope of the Agreement to include sales of the CSI 3T Troposcatter terminals to the Army Expeditionary Signal Brigades (ESB).

 

WHEREAS, the above Parties now wish to further clarify and modify the original Agreement.

 

WHEREAS, Comtech Systems agrees to build additional equipment and/or long lead items above any order submitted by TCS and accepted by CSI.

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that this Agreement is hereby amended and modified as follows:

 

1) The Teaming Agreement will expire September 25, 2013, or in the event TCS purchases 40 terminals in the year and purchases an additional quantity of 20 units by the last month of the agreement, this agreement will automatically extend for an additional year.

 

2) Exhibit A to that Agreement is hereby revised to include the exclusive sale of Comtech 3T Troposcatter Terminals to the Army ESB’s

 

3) The Teaming Agreement is modified to reflect the non-exclusivity of sales to other US Government entities as “customers” TCS reserves the right to sell outside of the WWSS contract vehicle through deal registration subject to CSI approval.

 

4) Upon any TCS order for long lead kits the full number of required kits will be ordered by TCS PO with CSI processing the order received with no upfront costs to TCS. Payment will be for the quoted price once the kits are in CSI inventory

 

5) Upon any TCS order for complete terminals or spares the order will be for the full number of terminals or spares to be delivered. A down payment of 25% will be calculated based upon the quoted price of 67% of the PO minus the value of long lead items previously paid for by TCS. (i.e. an order for 15 terminals or spares kits will have a down payment equal to 25% of the quoted price of 10 of the terminals and/or spares kits). The down payment will be paid with the receipt of the PO by CSI.

 

   

 

  

All other terms, conditions and provisions of the original Teaming Agreement, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 7th day of December, 2011.

 

CSI   TCS
         
By: /s/ Richard Burt   By: /s/ A. Celeste Ciecierski
  Richard Burt     A. Celeste Ciecierski
  President     Vice President, Contracts

 

   

 

  

Amendment 03

 

To The

COMTECH Systems, Inc. (CSI)/TeleCommunication Systems, Inc., (TCS)

Teaming Agreement, dated 25 March 2010,

Amendment 01 dated 28 February 2011 and

Amendment 02, dated 7 December 2011

 

RECITALS

 

WHEREAS, the above Parties first entered into a Teaming Agreement, effective 25 March 2010 (the Agreement), where TCS will be the prime contractor for the sale of the 3T terminals awarded through the WWSS contract (the program) and TCS will be the prime contractor for the sales of the 3T terminals for the US Military, Army Expeditionary Signal Brigades (ESB) and the U.S. Artillery Missile Defense (AMD), CSI will be the exclusive subcontractor on the Program for the supply of troposcatter terminal equipment as listed above, and;

 

WHEREAS, the above Parties did first extend the Term of the Agreement until September 25, 2012 by the execution of Amendment 01 and subsequently to September 25, 2013 by the execution of Amendment 02, and;

 

WHEREAS, the above Parties now wish to extend the term of the Agreement until March 31, 2014

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that this Agreement is hereby amended and modified as follows:

 

1) The Agreement will expire March 31, 2014

 

All other terms, conditions and provisions of the original Teaming Agreement, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set forth below.

 

CSI   TCS
         
By: /s/ John W. Boelke   By: /s/ A. Celeste Ciecierski
  John W. Boelke     A. Celeste Ciecierski
  Vice President of Contracts     Vice President, Contracts
Date: April 1, 2013   Date: 04/04/13

 

   

 

  

Amendment 04 To The

COMTECH Systems, Inc. (CSI)/TeleCommunication Systems, Inc.,

Teaming Agreement, dated 25 March 2010, Amendment 01, dated 28 February 2011

Amendment 02, dated 7 December 2011 and Amendment 03, dated 4 April 2013

 

RECITALS

 

WHEREAS, the above Parties first entered into a Teaming Agreement, effective 25 March 2010 (the Agreement), where TCS will be the prime contractor for the sale of the 3T terminals awarded through the WWSS and GTACS contracts (the program). TCS will be the prime contractor for the sales of the3T terminals to the U.S. Artillery Missile Defense (AMD) CSI will be the exclusive subcontractor on the Program for the supply of Troposcatter terminal equipment as listed above, and;

 

WHEREAS, the above Parties agree to extend the Term of the Original Agreement plus all Amendments until October 1, 2016, and;

 

WHEREAS, the above Parties expanded the scope of the Agreement to include sales of the CSI 3T Troposcatter terminals to the Army Expeditionary Signal Brigade (ESB) by Amendment 02, and;

 

WHEREAS, the above Parties now wish to add United States Special Operations Command (SOCOM) as a territory in this Teaming Agreement, in addition to GTACS, Air Defenders and Air Force.

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that this Agreement is hereby amended to include United States Special Operations Command (SOCOM) as a territory under this Teaming Agreement.

 

All terms, conditions and provisions of the original Teaming Agreement, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above set forth.

 

CSI   TCS
         
By: /s/ Richard L. Burt   By: /s/ Michael S. Koesters
  Richard L. Burt     Michael S. Koesters
  President     Director, GSG Contracts

 

   

 

 

Amendment 05 To The

COMTECH Systems, Inc. (CSI)/TeleCommunication Systems, Inc.,

Teaming Agreement, dated 25 March 2010, Amendment 01, dated 28 February 2011,

Amendment 02, dated 7 December 2011, Amendment 03, dated 4 April 2013 and Amendment

04, dated 4 September 2014 (collectively referred to as “The Teaming Agreement)

 

RECITALS

 

This AMENDMENT No. 5 to the Teaming Agreement is by and between TeleCommunication Systems, Inc., and ComTech Systems, Inc., referred to hereinafter as themselves (“TCS” or “CSI”, respectively),

 

WHEREAS, the above Parties now wish to add US Marine Corps Next Generation Deployable Tropo and USMC Line of Sight (LoS) requirements that would utilize the Comtech Tropo modem, FCS and SSPAs to the scope of the Teaming Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that the Teaming Agreement is hereby amended to include US Marine Corps Next Generation Deployable Tropo and USMC Line of Sight (LoS) requirements that would utilize the Comtech Tropo modem..

 

All terms, conditions and provisions of the original Teaming Agreement, including all Amendments, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above set forth.

 

CSI   TCS
         
By: /s/ John W. Boelke  Mar 20, 2015 By: /s/ Michael S. Koesters
  John W. Boelke     Michael S. Koesters
  Vice President of Contracts     Director, GSG Contracts

 

   

 

  

Amendment 06

 

To The

COMTECH Systems, Inc. (CSI)/TeleCommunication Systems, Inc., (TCS)

Teaming Agreement, dated 25 March 2010,

Amendment 01 dated 28 February 2011 and

Amendment 02, dated 7 December 2011

Amendment 03 dated 1 April 2013

Amendment 04 dated 4 September 2014

Amendment 05 dated 20 March 2015

 

RECITALS

 

WHEREAS, the above Parties first entered into a Teaming Agreement, effective 25 March 2010 (the Agreement), where TCS will be the prime contractor for the sale of the 3T terminals awarded through the WWSS contract (the program) and TCS will be the prime contractor for the sales of the 3T terminals for the US Military, Army Expeditionary Signal Brigades (ESB)and the U.S. Artillery Missile Defense (AMD), CSI will be the exclusive subcontractor on the Program for the supply of troposcatter terminal equipment as listed above, and;

 

WHEREAS, the above Parties did extend the Term of the Agreement effective 25 march 2010 and amended as indicated above, and;

 

WHEREAS, the above Parties now wish to add an agreement to obtain the services of Gordon Stump to pursue the National Guard Programs

 

NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the Parties agree that this Agreement is hereby amended and modified as follows:

 

Parties agree to share the monthly costs for Mr. Stump equally as well as the commission for sales to be paid to him. TCS shall supply a biweekly summary of actions and personnel visited as well as an indication of the viability of the line of pursuit.

 

All other terms, conditions and provisions of the original Teaming Agreement, remain unchanged, except as specifically noted herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set forth below.

 

CSI     TCS  
         
By: /s/ John W. Boelke   By: /s/ Michael S. Koesters
  John W. Boelke     Michael S. Koesters
  Vice President of Contracts     Director, GSG Contracts
Date: July 7, 2015   Date: July 7, 2015

 

   



 

Exhibit (d)(6)

 

NON-EXCLUSIVE
TEAMING AGREEMENT

 

This agreement (the “Agreement”) is made as of the 18th day of May, 2011, between TeleCommunication Systems, Inc. (“Prime Contractor”), a Maryland corporation, with headquarters at 275 West Street, Suite 400, Annapolis, Maryland 21401 and Comtech Systems, Inc a Delaware corporation, (DUNS Number 791441173) with its principal place of business located at 2900 Titan Row, Suite 142, Orlando, FI 32809 (“Subcontractor”).

 

Recitals

 

The U. S. Government through the Army Contracting Command, APG (the “Client”), is or has issued a solicitation (the “RFP”) for Global Tactical Advanced Communications Systems (GTACS). (the “Project”) and the Prime Contractor and Subcontractor desire to support requirements for the “Project. The purpose of this Agreement is to set forth the terms under which the Prime Contractor may use Subcontractor’s name, logo, product line, pricing, specifications and past performance in its proposal for the Project.

 

Agreements

 

In consideration of the mutual promises herein contained, the parties agree as follows:

 

1.0RELATIONSHIP OF PARTIES

 

The parties to this Agreement have the relationship of Prime Contractor to Subcontractor. This Agreement shall not be construed to create a joint venture, partnership or other form of business organization of any kind between the parties. At all times the Prime Contractor and Subcontractor shall remain independent contractors, each responsible for the performance of its assigned tasks.

 

2.0INFORMATION TO BE RELEASED

 

2.1Submission.  The Subcontractor agrees to provide the following to the Prime Contractor, as requested by a schedule determined by the Prime to support the proposal development activities:
a)Permission to use its name, logo, including guidance for their use and display;
b)Relevant past performance information as reasonably requested by the Prime Contractor;
c)Product line pricing, product specifications and standard lead-times for those products. Detailed price data may be required at the request of TCS’ Government customer. That information may include comparable sales data, which will be used to establish price reasonableness as defined in FAR Part 2.101 and procedures set forth in FAR Part 13.106. Data released to the Government may be provided to TCS, in a sealed envelope, for Government review only. Specific guidance will be provided by the Government on a case by case basis.

 

3.0TERMS AND CONDITIONS FOR SUBCONTRACTING

 

3.1           Award of Subcontract. If the Client awards a task order as a result of the IDIQ contract, to the Prime Contractor as a result of the Proposal, and subject to any required subcontract consent or approval by the Client, the Prime Contractor will promptly award a Basic Purchase Agreement (BPA) to the Subcontractor which will define the exclusive terms and conditions for the purchase of Subcontractor’s products or services related to that task order, which the parties agree to negotiate in good faith. The BPA shall contain all mandatory terms and conditions, which, under the RFP and/or contract are required to “flow down” to Subcontractors.

 

4.0GENERAL

 

4.1           General Cooperation. Throughout the period of this Agreement the parties agree to cooperate as may reasonably be required for the success of the Proposal. This cooperation involves supporting the Prime proposal development activities by providing, as required, the subcontractor’s name, logo, product line, pricing, specifications and past performance.

 

TCS Teaming Agreement Confidential and Proprietary

February 28, 2007

Page 1 of 2

 

 

4.2Termination. This Agreement shall terminate upon the occurrence of the earliest of the following events:

 

4.2.1The execution of the BPA contemplated by this Agreement.
4.2.2Two (2) year from the date of this Agreement, if the Client has not awarded a contract to the Prime Contractor from the Proposal; provided, however, neither party shall have the option to terminate this Agreement if a valid proposal is still under evaluation by the Client.
4.2.3The failure of the parties to enter into a BPA within 90 days after the award of the Prime Contract, both parties having negotiated in good faith in accordance with this Agreement.
4.2.4Disapproval by the Client of the award of any BPA to the Subcontractor;
4.2.5Upon the mutual agreement of the parties.
4.2.6Receipt by the Prime Contractor of written notice from the Client that it will not award a Prime Contract to the Prime Contractor for this procurement.
4.2.7Cancellation of the procurement for the Project by the Client.

 

4.3           Governing Law: The validity, performance, and all matters relating to the effect of this Agreement and any amendment hereto shall be governed by the laws of the State of Maryland, without regard to its choice of laws provisions.

 

4.4           Amendments. No modification, amendment, supplement to or waiver of this Agreement or any of its provisions shall be binding upon the Parties hereto unless made in writing and duly signed by the Parties.

 

4.5           Entire Agreement. This Agreement, including the recitals and attachments thereto, contains the entire agreement of the parties as to their relationship in connection with the Project, and supersedes any previous agreements, oral or written, except for the NDA.

 

IN WITNESS WHEREOF the parties have caused this Agreement to be signed by their respective duly authorized officers, as of the date set forth above.

 

        TeleCommunication Systems, Inc.
         
Date:   05/18/11   BY: /s/ A. Celeste Ciecierski
        Name:  A. Celeste Ciecierski
        Title:  Vice President, Contracts
         
        SUBCONTRACTOR
Comtech Systems, inc.
         
Date: May 17, 2011   BY: /s/ John W. Boelke
        Name: John W. Boelke
        Title: Vice President of Contracts

 

TCS Teaming Agreement Confidential and Proprietary

February 28, 2007

Page 2 of 2

 



 

Exhibit (d)(7)

 

TCS TEAMING AGREEMENT

 

This agreement (the “Agreement”) is made as of the 9th day of April 2013, between TeleCommunication Systems, Inc. (“Prime Contractor”), a Maryland corporation, with headquarters at 275 West Street, Suite 400, Annapolis, Maryland 21401 and Comtech Systems, Inc a Delaware corporation, (DUNS Number 791441173) with its principal place of business located at 2900 Titan Row, Suite 142, Orlando, Fl 32809 (“Subcontractor”).

 

Recitals

 

The U. S. Government through the Army Contracting Cmd-APG/PEO-C3T (the “Client”), has awarded an IDIQ Contract to TCS under the Global Tactical Advanced Communication Systems (GTACS) Program (the “Program”). Under the Program, the Client is expected to issue various Requests for Task Execution Plans (RTEPs) to be competitively bid among the Program awardees (the “Project” or “Projects”). The purpose of this Agreement is to set forth the terms under which the Subcontractor will submit exclusively to the Prime Contractor a technical, a management and a price proposal for services in support of the Prime Contractor’s proposed performance of the Project or Projects, to the extent the scope of any Project or Projects includes at least one of the items as defined by Attachment A, hereto. The parties have agreed upon certain terms and conditions for subcontracting between them. This Agreement sets forth those terms and conditions.

 

This Agreement applies only to the Project or Projects and the parties are free to act independently in all other matters.

 

Agreements

 

In consideration of the mutual promises herein contained, the parties agree as follows:

 

1.0           RELATIONSHIP OF PARTIES

 

The parties to this Agreement have the relationship of Prime Contractor to Subcontractor. This Agreement shall not be construed to create a joint venture, partnership or other form of business organization of any kind between the parties. At all times the Prime Contractor and Subcontractor shall remain independent contractors, each responsible for the performance of its assigned tasks.

 

2.0           PROPOSAL

 

2.1           Submission. The Subcontractor agrees to submit to the Prime Contractor, on a schedule to be agreed between the parties, a technical and management proposal covering the work described for the Subcontractor in Attachment A, together with summary price information. In addition, in the event the Client requires it, the Subcontractor agrees to submit a detailed price to the Prime Contractor for submission directly to the Client.

 

TCS Teaming Agreement Confidential and Proprietary Level 2

January 4, 2013

Page 1 of 8

 

 

2.2           Prime Contractor’s Proposal. The Prime Contractor agrees to submit to the Client a proposal for the Project (the “Proposal”). The Prime Contractor shall have sole responsibility for the content of the Proposal, including technical, management and price volumes.

 

2.3           Cooperation. The parties agree to cooperate in the exchange of information necessary for the development of the Proposal, and the Subcontractor agrees to make its personnel reasonably available for this purpose at such locations as the Prime Contractor may designate. However, each party shall be solely responsible for its own costs in Proposal preparation, including travel. Each party will be responsible for the cost of reasonable office space and administrative support provided to the representatives of other party at meetings held on that party’s premises.

 

2.4           Proposal Support. The Subcontractor agrees to provide such liaison effort and support personnel as may reasonably be required by the Prime Contractor to support the integration of the Subcontractor’s proposal material into the Proposal. If the Prime Contractor is involved in any written communication or presentations concerning the Proposal, the Subcontractor agrees, upon request, to provide reasonable support to the Prime Contractor, including participation in meetings and presentations with Client personnel.

 

2.5           Consultation. During the course of any negotiation with the Client concerning the Proposal, the Subcontractor agrees to make available on request such personnel or information as may reasonably be necessary to respond to Client requests, including changes in the Statement of Work, delivery schedule and general terms and conditions.

 

2.6           Direct Contacts. The Subcontractor agrees that it will not initiate any direct contacts with the Client concerning the Proposal, but will communicate with the Client through the Prime Contractor, except as otherwise agreed.

 

2.7           Authorized Representatives. Each party has designated one or more individuals within its organization as authorized representatives to act on its behalf in the preparation of their respective proposals, receipt of any proprietary information, and any negotiation between the parties pursuant to this Agreement, as follows:

 

    Contractual   Technical
Prime Contractor
Subcontractor
  Michael Koesters   Jim Sprungle

 

Each party may change its designation by written notice to the other party.

 

2.8           Proposal Data. During the term of this Agreement, it may be necessary for the parties to provide proprietary information to each other. Any party receiving such information agrees to protect it in accordance with and to the extent required by Non-Disclosure Agreement executed between the parties with an effective date of Nov 19, 2009 for three years (the “NDA”).

 

TCS Teaming Agreement Confidential and Proprietary Level 2

January 4, 2013

Page 2 of 8

 

 

3.0           TERMS AND CONDITIONS FOR SUBCONTRACTING

 

3.1           Award of Subcontract. If the Client awards a contract to the Prime Contractor as a result of the Proposal, and subject to any required subcontract consent or approval by the Client, the Prime Contractor will promptly award a subcontract to the Subcontractor for the work proposed by the Subcontractor and listed in Attachment A, to the extent that such work is in the Prime Contract (the “Subcontract”). Other than those terms specified herein, upon which the parties have agreed, the parties agree to negotiate in good faith. By accepting such Subcontract, the Subcontractor agrees not to enter into any contractual arrangement with another contractor for work directly related to that being provided to the Client under the subject Prime Contract. This does not restrict either party's rights to pursue business outside that covered by this RFP or a resulting Prime Contract.

 

3.2           Consent of Client. If the Subcontract to be negotiated between the parties is subject to the written consent of the Client, the Prime Contractor shall use its best efforts to obtain such consent.

 

3.3           Scope of Subcontract. Except as may be otherwise agreed, the Subcontract shall reflect the Subcontractor's technical, management and price proposals. The distribution of effort as set forth in Attachment A is based on the Client's awarding the Subcontractor's effort to the Prime Contractor and the continued acceptable performance by Subcontractor as determined by the Client and Prime Contractor.

 

3.4           Flow Down Provisions. The Subcontract shall contain all mandatory terms and conditions, which under the RFP are required to “flow down” to Subcontractors. The parties agree to negotiate in good faith any additional terms and conditions that may be imposed upon the Prime Contractor after the issuance of the RFP.

 

3.5           Exclusivity. During the term of this Agreement, the Subcontractor shall not work with parties other than the Prime Contractor to provide the Client with the equipment meeting the requirements, listed in Attachment A. During the term of this Agreement, the Subcontractor shall not work with or assist any bidder other than the Prime Contractor in connection with the Project or the Proposal, nor compete independently for work covered by this Project. Nothing herein shall be construed to limit or restrict the rights of either party to quote, offer to sell or sell to any party other than the Client any products and services which are regularly offered for sale and which are not unique to this Project. In addition, in the event this Agreement is terminated either party shall be free to pursue their individual technical approaches which are unique to this Agreement with any other party.

 

4.0           GENERAL

 

4.1           Solicitation of Employees. Each party agrees that during the term of this Agreement or during the term of the Subcontract, whichever is longer, and for one year thereafter, each party agrees not to solicit the employment of any employee, former employee, or consultant of the other party or hire any employee, former employee, or consultant of the other party who has been involved in the performance of services under this Agreement or the Subcontract or any extension thereof.

 

4.2           Classified Information. If the performance of this Agreement or any resulting Subcontract requires access to or storage of classified data, the parties agree to safeguard all

 

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classified documents and to provide and maintain a system of security controls in accordance with the requirements of DD Form 254 (Security Agreement), and of the Department of Defense Industrial Security Manual for the safeguarding of Classified Material in effect on the date of this Agreement, including any amendments made after the date of this Agreement.

 

4.3           General Cooperation. Throughout the period of this Agreement the parties agree to cooperate as may reasonably be required for the success of the Proposal.

 

4.4           Termination. Except for confidentiality provisions of the NDA and the obligations regarding the solicitation of employees, this Agreement shall terminate upon the occurrence of the earliest of the following events:

 

4.4.1The execution of the Subcontract contemplated by this Agreement.

 

4.4.2At the option of either party, upon notice to the other after the lapse of one year from the date of this Agreement, if the Client has not awarded a contract to the Prime Contractor from the Proposal; provided, however, that neither party shall have the option to terminate this Agreement if a valid proposal is still under evaluation by the Client.

 

4.4.3The failure of the parties to enter into a Subcontract within 90 days after the award of the Prime Contract, both parties having negotiated in good faith in accordance with this Agreement.

 

4.4.4Disapproval by the Client of the award of any Subcontract to the Subcontractor; provided, however, that the Subcontractor shall have reasonable opportunity to resolve any issue precipitating such disapproval.

 

4.4.5Upon the mutual agreement of the parties.

 

4.4.6Receipt by the Prime Contractor of written notice from the Client that it will not award a Prime Contract to the Prime Contractor for this procurement.

 

4.4.7Cancellation by the Client of this procurement.

 

4.4.8If there is a material change in the circumstances of the procurement requiring dissolution of this Agreement.

 

4.5           Nature of Agreement. This Agreement shall not be construed to create a joint venture, partnership or other form of business organization of any kind between the parties. At all times the Prime Contractor and the Subcontractor shall remain independent contractors, each responsible for its own employees.

 

4.6           Notices. All notices and other communications required or contemplated under this Agreement shall be in writing and shall be transmitted to the address set forth at the beginning of this Agreement and to the attention of the “Contracts Department” for Prime Contractor and to the

 

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attention of the Contractual representative for the Subcontractor set forth in section 2.7 (Authorized Representatives). Such notice shall be sent either by (i) personal delivery, (ii) expedited messenger service, (iii) registered or certified mail, postage prepaid and return receipt requested, (iv) electronic facsimile, or (v) electronic mail. Notices shall be effective upon the date of confirmed delivery or at such time as delivery is refused by addressee upon presentation.

 

4.7           Waiver. A failure or delay of either Party to this Agreement to enforce at any time any of the provisions of this Agreement or to exercise any option which is herein provided or to require at any time performance or any of the provisions hereof, shall in no way be construed to be a waiver of such provisions of this Agreement.

 

4.8           Governing Law and Alternative Dispute Resolution (ADR)

 

4.8.1           The validity, performance, and all matters relating to the effect of this Agreement and any amendment hereto shall be governed by the laws of the State of Maryland, without regard to its choice of laws provisions.

 

4.8.2            The parties agree to attempt to settle any claim or controversy arising out of this Agreement through consultation and negotiation in good faith and spirit of mutual cooperation. Any dispute between the Parties relating to this Agreement will first be submitted in writing to a senior executive of both parties, who will promptly meet and confer in an effort to resolve such dispute. Each Party’s executive will be identified by notice to the other Party, and may be changed at any time thereafter by notice to the other. Any agreed decision of the executives is final and binding on the Parties. In the event the executives are unable to resolve any dispute within thirty days after submission to them, either Party may then refer such dispute to mediation in accordance with this Subsection 4.8.2.

 

4.8.3           If those attempts fail, then the dispute will be mediated by a mutually acceptable mediator to be chosen by both parties within forty-five (45) days after written notice by either Party demanding mediation. Such mediation shall be conducted in Annapolis, Maryland. Neither Party may unreasonably withhold consent to the selection of a mediator, and both parties will share the costs of the mediator equally. Each Party shall pay its own attorneys’ fees. By mutual agreement, however, either party may postpone mediation until each has completed some specified but limited discovery regarding the dispute. The Parties may also agree to replace mediation with some other form of ADR, such as neutral fact-finding or a mini-trial.

 

4.8.4           Any dispute which cannot be resolved between the Parties through negotiation, mediation or other form of ADR within six months of the date of the initial demand for ADR by one of the Parties may then be submitted to a court of competent jurisdiction. The use of any ADR procedures will not be construed under the doctrines of laches, waiver or estoppel to affect adversely the rights of either Party. Nothing in this section will prevent either Party from resorting to judicial proceedings if (a) good faith efforts to resolve the dispute under these procedures have been unsuccessful, or (b) interim relief from a court is necessary to prevent serious and irreparable injury to that Party or to others.

 

4.8.5           Performance by the Parties under this Agreement shall not be suspended during the pendency of any dispute unless the Parties otherwise agree.

 

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4.9           Severability. In the event that any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired and the invalid, illegal or unenforceable provisions shall be replaced by a mutually acceptable provision which, being valid, legal and enforceable, comes closest to the intention of the Parties underlying the invalid, illegal or unenforceable provision.

 

4.10         Headings. The headings and table of contents, if any, in this Agreement are for purposes of reference only and shall not in any way limit or affect the meaning or interpretation of any of the terms hereof.

 

4.11         Force Majeure. Neither Party shall be liable to the other Party or shall be subject to termination of this Agreement by the other Party for any delay, nonperformance, loss or damage (other than for failure to pay any amount when due) because of reasons beyond its reasonable control including, but not limited to, acts of God, acts of government, war, riots, civil unrest, terrorism, power failures, communication systems failures, accidents in transportation or other causes beyond the reasonable control of the respective Party (“Force Majeure”).

 

4.12         Assignment. This Agreement and the rights and obligations hereunder may not be assigned, delegated, sublicensed or transferred by either party without the express written consent of the other party which shall not be unreasonably withheld.

 

4.13         Amendments. No modification, amendment, supplement to or waiver of this Agreement or any of its provisions shall be binding upon the Parties hereto unless made in writing and duly signed by the Parties.

 

4.14         Public Announcements. Except as otherwise provided herein, neither Party shall issue a press release or make any similar public announcement without the other Party’s prior written consent to the specific language and intended distribution of such press release or announcement. Notwithstanding the foregoing, within thirty (30) days following the award of the Prime Contract, the Parties agree to issue a joint press release so that both Parties can make reference to this in marketing and promotional material.

 

4.15         No Subcontracting. Subcontractor shall not subcontract any portion of the work covered by this Agreement or the Subcontract without the prior written notice to the Prime Contractor.

 

4.16         Survival of Provisions. The Parties agree that where the context of any provision indicates an intent that it shall survive the termination of this Agreement, then it shall so survive.

 

4.17         Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all counterparts shall constitute but one and the same instrument, sufficient evidence of which for all purposes shall be any set containing counterparts executed by both Parties. The Parties agree that executed counterparts (a) may be delivered electronically; and (b) shall evidence a binding agreement.

 

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4.18         Entire Agreement. This Agreement, including the recitals and attachments thereto, contains the entire agreement of the parties as to their relationship in connection with the Project, and supersedes any previous agreements, oral or written, except for the NDA.

 

IN WITNESS WHEREOF the parties have caused this Agreement to be signed by their respective duly authorized officers, as of the date set forth above.

 

        TeleCommunication Systems, Inc.
         
Date: 05/15/13   BY: /s/ A. Celeste Ciecierski
        Name: A. Celeste Ciecierski
        Title: Vice President, Contracts
         
        SUBCONTRACTOR
         
Date: 5-16-13   BY: /s/ John W. Boelke
        Name: John W. Boelke
        Title: Vice President, Contracts

 

[Signature Page for Teaming Agreement]

 

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TCS TEAMING AGREEMENT

 

ATTACHMENT A

 

STATEMENT OF WORK

 

The exclusivity obligation is only valid if the scope of any Project under the Program includes at least one of the following requirements:

 

SNAP 3T
SNAP Auto Pointing GUI Software
Passed validation exercises such as NIE Validation or JTAP
PEO C3T/PM WIN-T endorsed and available solution
Transit cased deployable solution already fielded for current US Military operational missions
Received JF12 approval
Received US Army Approved Safety Assessment completed
TRC 170 Interoperability testing for both Army or Air Force completed

 

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