Document:

exv10w51

Exhibit 10-51

TeleCommunication Systems

Deferred Compensation Plan

(Plan Document)

ARTICLE I

PURPOSE AND EFFECTIVE DATE

The purpose of the TeleCommunication Systems Deferred Compensation Plan (“Plan”) is to aid
TeleCommunication Systems and its subsidiaries in retaining and attracting executive employees by
providing them with tax deferred savings opportunities. This voluntary nonqualified Plan provides a
select group of management or highly compensated employees within the meaning of Sections 201(2),
301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (ERISA)
of TeleCommunication Systems with the opportunity to elect to defer receipt of specified portions
of compensation, and to have these deferred amounts treated as if invested in specified
hypothetical investment benchmarks. The Plan is intended to conform to the requirements of Code
§409A. The Plan shall be effective December 1, 2008, and deferral elections made hereunder shall
be effective on or after December 1, 2008.

ARTICLE II

DEFINITIONS

For the purposes of this Plan, the following words and phrases shall have the meanings indicated,
unless the context clearly indicates otherwise:

     Section 2.01 Account. “Account” or “Accounts” means the fair market value of
Deferred Amounts and Earnings and thereon as established under the terms of the Plan and reflected
in the bookkeeping accounts maintained by the Company from time to time. As used in context,
“Account” may refer to the Participant’s entire interest under the Plan or, if used in the context
of a specific plan year (e.g. “2010 Account” or “Plan Year Account”) may refer to the portion of
the Participant’s interest under the Plan that reflect the Deferred Amount and Earnings thereon
only for a Plan Year, or, if used in the context of a specific type of Deferred Amounts (e.g.,
“Plan Year Base Salary Account” or “Plan Year Discretionary Contribution Account”) those types of
Deferred Amounts and Earnings thereon.

     Section 2.02 Administrative Committee. “Administrative Committee” means the committee
appointed by the TeleCommunication Systems Deferred Compensation Plan Committee of the Board.

     Section 2.03 Base Salary. “Base Salary” means Eligible Compensation equal to the base
rate of cash compensation paid by the Company to or for the benefit of a Participant for services
rendered or labor performed while a Participant, including such amounts that would be payable to a
Participant but for contributions made on the Participant’s behalf to any qualified plan maintained
by the Company or to any cafeteria plan under Section 125 of the Internal Revenue Code maintained
by the Company.

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     Section 2.04 Base Salary Deferral. “Base Salary Deferral” means the amount of a
Participant’s Base Salary that the Participant elects to defer and that is credited to his or her
Account pursuant to Section 4.02.

     Section 2.05 Beneficiary. “Beneficiary” means the person, persons or entity
designated by the Participant to receive any benefits payable under the Plan pursuant to Article
VIII.

     Section 2.06 Board. “Board” means the Board of Directors of TeleCommunication
Systems.

     Section 2.07 Bonus Compensation. Bonus Compensation is defined under in Section 2.23
as Incentive Compensation.

     Section 2.08 Change of Control. For purposes of this Plan, a “Change of Control”
shall be defined as any change of control within the meaning of Code section 409A(a)(2)(A)(v).

     Section 2.09 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended,
including regulations and guidance of general applicability issued thereunder.

     Section 2.10 Commissions “Commissions means compensation earned by a Participant in
the form of commissions in connection with the sale of the Company’s products and services.

     Section 2.11 Company. “Company” means TeleCommunication Systems, Inc., its successors,
any subsidiary or affiliated organizations authorized by the Board or the Plan Committee to
participate in the Plan and any organization into which or with which TeleCommunication Systems
merges or that assumes the liabilities of the Company.

     Section 2.12 Deferral Agreement. “Deferral Agreement” means an agreement filed by a
Participant in accordance with Article IV.

     Section 2.13 Deferral Period. “Deferral Period” means the period of time after which
payment of an Account is to be made or begin to be made as specified in Article IV. In the case of
a Form of Payment that is substantially equal annual installments, the Deferral Period for each
installment shall mean the period closing on the date that such installment payment is due under
the terms of the Plan.

     Section 2.14 Deferred Amount. “Deferred Amount” means the amount of Eligible
Compensation to which the Deferral Agreement relates that is to be deferred under the Plan,
expressed as either a dollar amount or a percentage of the Base Salary, Incentive Compensation
and/or Commissions for such Plan Year or performance period.

     Section 2.15 Designee. “Designee” shall mean the Company’s senior human resources
officers or other individuals to whom the Plan Committee has delegated the authority to take action
under the Plan. Wherever Plan Committee is referenced in the plan, it shall be deemed to also
refer to Designee.

     Section 2.16 Disability. “Disability” means any injury, illness or condition that
constitutes a disability within the meaning of Code section 409A(a)(2)(C).

     Section 2.17 Discretionary Contribution. “Discretionary Contribution,” if any, means
the amount of any discretionary employer contribution, including any matching contribution that the
Company agrees to make to the Plan from time to time.

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     Section 2.18 Earnings. “Earnings” shall mean shall mean the returns credited to a
Participant’s Account on the basis of investment benchmarks specified by the Committee from time to
time.

     Section 2.19 Eligible Compensation. “Eligible Compensation” means any Base Salary,
Incentive Compensation and Commissions that are earned for services performed during a Plan Year.
Eligible Compensation does not include expense reimbursements, any form of noncash compensation or
transfer of property, or compensation paid under a stock-based plan.

     Section 2.20 ERISA. “ERISA” means the Employee Retirement Income Security Act of
1974, as amended.

     Section 2.21 Form of Payment. “Form of Payment” means either a single sum distribution
or substantially equal annual installments over a period of at least two (2) but not more than ten
(10) years as specified under Article IV. If the Form of Payment is substantially equal annual
installments, each installment shall constitute a separate payment for purposes of Code section
409A.

     Section 2.22 Hardship Withdrawal. “Hardship Withdrawal” means a payment on account of
an unforeseeable emergency, as defined in Code section 409A(a)(2)(B)(ii), pursuant to Section 6.06.

     Section 2.22 Hypothetical Investment Benchmark. “Hypothetical Investment Benchmark”
shall mean the phantom investment benchmarks which are used to measure the return credited to a
Participant’s Deferral Account.

     Section 2.23 Incentive Compensation. “Incentive Compensation” means Eligible
Compensation awarded to a Participant for a Plan Year under any incentive plan maintained by the
Company.

     Section 2.24 Incentive Compensation Deferral. “Incentive Compensation Deferral” means
the amount of a Participant’s Incentive Compensation that the Participant elects to defer and that
is credited to his Account.

     Section 2.25 Modification Agreement. “Modification Agreement” means the form filed
by a Participant to change the Deferral Period or the Form of Payment with respect to an Account
under rules established by the Plan Committee from time to time and pursuant to Section 4.03(b).

     Section 2.26 Participant. “Participant” means any individual who is eligible to
participate in this Plan and who elects to participate by filing a Participation Agreement as
provided in Article IV.

     Section 2.27 Plan Committee. “Plan Committee” is the “TeleCommunication Systems
Deferred Compensation Plan Committee” and means the compensation committee of the Board.

     Section 2.28 Plan Year. “Plan Year” means a twelve-month period beginning January 1
and ending the following December 31.

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     Section 2.29 TeleCommunication Systems Deferred Compensation Plan Committee.
“TeleCommunication Systems Deferred Compensation Plan Committee” or “Plan Committee” means the
compensation committee of the Board.

     Section 2.30 Separation from Service. “Separation from Service” means a reduction in
an employee’s services (regardless whether performed as an employee or independent contractor) to a
rate that is reasonably anticipated to be a permanent reduction in services to 20 percent or less
of the average rate of services performed prior to such reduction. If an employee ceases or
reduces services under a bona fide leave of absence, a Separation from Service occurs after the
close of the 6-month anniversary of such leave, provided however that the Separation from Service
shall be delayed to the extent that the employee has a statutory or contractual right to
reemployment. Determination of whether a Separation from Service occurs shall be made in a manner
that is consistent with the principles in Reg. 1.409A-1(h). A Separation from Service also shall
refer to “Separate from Service” as used herein.

     Section 2.31 Specified Employee. “Specified Employee” means a “specified employee”
within the meaning of Code section 409A(2)(B).

     Section 2.32 Valuation Date. “Valuation Date” means the last calendar date when the
New York Stock Exchange was open, or such other date as the Administrative Committee in its sole
discretion may determine.

ARTICLE III

ADMINISTRATION

     Section 3.01 TeleCommunication Systems Deferred Compensation Plan Committee and
Administrative Committee Duties. This Plan shall be administered by the TeleCommunication
Systems Deferred Compensation Plan Committee, or Plan Committee. A majority of the members of the
Plan Committee shall constitute a quorum for the transaction of business. All resolutions or other
action taken by the Plan Committee shall be by a vote of a majority of its members present at any
meeting or, without a meeting, by an instrument in writing signed by all its members. Members of
the Plan Committee may participate in a meeting of such committee by means of a conference
telephone or similar communications equipment that enables all persons participating in the meeting
to hear each other, and such participation in a meeting shall constitute presence in person at the
meeting and waiver of notice of such meeting.

The Plan Committee shall be responsible for the administration of this Plan and shall have all
powers necessary to administer this Plan, including discretionary authority to determine
eligibility for benefits and to decide claims under the terms of this Plan, except to the extent
that any such powers are vested in any other person administering this Plan by the Plan Committee.
The Plan Committee may from time to time establish rules for the administration of this Plan, and
it shall have the exclusive right to interpret this Plan and to decide any matters arising in
connection with the administration and operation of this Plan. All rules, interpretations and
decisions of the Plan Committee shall be conclusive and binding on the Company, Participants and
Beneficiaries.

The Plan Committee has delegated to the Administrative Committee responsibility for performing
certain administrative and ministerial functions under this Plan. The Administrative Committee
shall be responsible for determining in the first instance issues related to eligibility,
Hypothetical Investment Benchmarks, distribution of Deferred Amounts, determination of account
balances, crediting of hypothetical earnings and debiting of hypothetical losses and of
distributions, in-service withdrawals, deferral elections and any other duties concerning the
day-to-day operation of this Plan. The Plan Committee shall have discretion to delegate to the
Administrative

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Committee such additional duties as it may determine. The Administrative Committee may designate
one of its members as a chairperson and may retain and supervise outside providers, third party
administrators, record keepers and professionals (including in-house professionals) to perform any
or all of the duties delegated to it hereunder.

Neither the Plan Committee nor a member of the Board nor any member of the Administrative Committee
shall be liable for any act or action hereunder, whether of omission or commission, by any other
member or employee or by any agent to whom duties in connection with the administration of this
Plan have been delegated or for anything done or omitted to be done in connection with this Plan.
The Plan Committee and the Administrative Committee shall keep records of all of their respective
proceedings and the Administrative Committee shall keep records of all payments made to
Participants or Beneficiaries and payments made for expenses or otherwise.

The Company shall, to the fullest extent permitted by law, indemnify each director, officer or
employee of the Company (including the heirs, executors, administrators and other personal
representatives of such person), each member of the Plan Committee and Administrative Committee
against expenses (including attorneys’ fees), judgments, fines, amounts paid in settlement,
actually and reasonably incurred by such person in connection with any threatened, pending or
actual suit, action or proceeding (whether civil, criminal, administrative or investigative in
nature or otherwise) in which such person may be involved by reason of the fact that he or she is
or was serving this Plan in any capacity at the request of the Company, the Plan Committee or
Administrative Committee.

Any expense incurred by the Company, the Plan Committee or the Administrative Committee relative to
the administration of this Plan shall be paid by the Company and/or may be deducted from the
Deferral Accounts of the Participants as determined by the Plan Committee.

     Section 3.02 Claim Procedure. If a Participant or Beneficiary makes a written request
alleging a right to receive payments under this Plan or alleging a right to receive an adjustment
in benefits being paid under this Plan, such actions shall be treated as a claim for benefits. All
claims for benefits under this Plan shall be sent to the Administrative Committee. If the
Administrative Committee determines that any individual who has claimed a right to receive
benefits, or different benefits, under this Plan is not entitled to receive all or any part of the
benefits claimed, the Administrative Committee shall inform the claimant in writing of such
determination and the reasons therefore in terms calculated to be understood by the claimant. The
notice shall be sent within 90 days of the claim unless the Administrative Committee determines
that additional time, not exceeding 90 days, is needed and so notifies the Participant. The notice
shall make specific reference to the pertinent Plan provisions on which the denial is based, and
shall describe any additional material or information that is necessary. Such notice shall, in
addition, inform the claimant of the procedure that the claimant should follow to take advantage of
the review procedures set forth below in the event the claimant desires to contest the denial of
the claim. The claimant may within 90 days thereafter submit in writing to the Administrative
Committee a notice that the claimant contests the denial of his or her claim and desires a further
review by the Plan Committee. The Plan Committee shall within 60 days thereafter review the claim
and authorize the claimant to review pertinent documents and submit issues and comments relating to
the claim to the Plan Committee. The Plan Committee will render a final decision on behalf of the
Company with specific reasons therefore in writing and will transmit it to the claimant within 60
days of the written request for review, unless the Chairperson of the Plan Committee determines
that additional time, not exceeding 60 days, is needed, and so notifies the Participant. If the
Committee fails to respond to a claim filed in accordance with the foregoing

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within 60 days or any such extended period, the Company shall be deemed to have denied the
claim.

ARTICLE IV

PARTICIPATION AND DEFERRAL AGREEMENTS

     Section 4.01 Participation. Participation in the Plan shall be limited to executives
who (i) meet such eligibility criteria as the Plan Committee shall establish from time to time, and
(ii) elect to participate in this Plan by filing a Deferral Agreement under the rules established
by the Plan and the Administrative Committee.

     Section 4.02 Contents and Timing of Deferral Agreements.

     (a) The Plan Committee shall have the discretion to specify the contents of a Deferral
Agreement and to establish special deadlines regarding the filing of the Participation Agreements
subject to the terms of the Plan.

     (b) A Deferral Agreement must specify (i) the amount of Eligible Compensation to be deferred
under the Plan (the “Deferred Amount”), expressed as either a dollar amount or as a percentage;
provided that the maximum Deferred Amount for any Plan Year shall not exceed 90% of Base Salary and
100% of Incentive Compensation and 90% of Commissions; (ii) the Deferral Period; and (iii) the Form
of Payment. If no Deferral Period or Form of Payment is otherwise specified, a Deferral Agreement
shall be deemed to specify a Deferral Period ceasing on Separation from Service and a Form of
Payment that is a single lump sum.

     (c) The Plan Committee may, in its discretion, permit Deferral Agreements to specify a unique
Deferral Period and Form of Payment with respect to different Plan Year Accounts.

     (d) Deferral Agreements shall be filed and become irrevocable with respect to Base Salary or
Incentive Compensation of Commissions no later than the December 31 preceding the Plan Year during
which the services for such Base Salary or Incentive Compensation are first performed.
Notwithstanding, the Plan Committee may establish a later deadline for the filing and
irrevocability of Deferral Agreements to the extent that the Plan Committee determines that such
deadlines conform to the requirements of Code section 409A, including a deadline of no later than
30 days of initial eligibility for an executive who becomes newly eligible to participate in the
Plan (such as a new hire to the Company).

     (e) A Participant’s Deferral Agreement shall govern for all subsequent Plan Years unless and
until the Participant timely files a new Deferral Agreement.

     Section 4.03 Modification or Revocation of Election by Participant.

     (a) A Participant may not change the amount of Eligible Compensation to be deferred after the
date on which such election is irrevocable pursuant to Section 4.02(d).

     (b) A Participant may file a Modification Agreement changing the Deferral Period and Form of
Payment for an Account subject to the rules of this Section 4.03(b). A Modification Election shall
be valid only to the extent that it is filed at least 12 months prior to the cessation of the
existing Deferral Period (determined without regard to a new Deferral Period under the Modification
Agreement) and any new Deferral Period or Form of Payment that is specified under the Modification
Agreement results in a delay in payment of at least 5 years.

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Notwithstanding, the Plan Committee may limit Modification Agreements under rules that it may
provide from time to time, including limitations as to the maximum Deferral Period.

     Section 4.04 Employer Discretionary Contributions.

     (a) The employer may, at any time and in its complete discretion, make Discretionary
Contributions or other non-elective employer deferrals on behalf of any eligible employee for any
Plan Year.

     (b) Any non-elective employer deferrals made by the employer with respect to an eligible
employee shall be maintained in a separate Deferral Account established on the employee’s behalf.

     (c) Except as otherwise prescribed under the Plan, an employee’s Deferral Account pertaining
to non-elective employer deferrals for any Plan Years shall become payable at such time, and in
such form, as elected by the employee in the Deferral Election Agreement; provided, however, that
the specified payment date for such a Deferral Account shall not precede the last day of the Plan
Year as of which such Deferral Account has become vested pursuant to Section 5.03 below.

     (d) Non-elective employee deferrals pertaining to any Plan Year shall be invested pursuant to
the Hypothetical Investment Benchmarks elected by the Participant in his or her Deferral Election
Agreement.

ARTICLE V

DEFERRED COMPENSATION ACCOUNTS

     Section 5.01 Maintenance of Accounts. Accounts shall be established and maintained
for the Deferred Amount and Earnings established for each Participant and for each Plan Year and,
in the discretion of the Administrative Committee, separate Plan Year Accounts may be established
for Deferred Amounts attributable to Base Salary, Incentive Compensation or Commissions, or
Discretionary Contributions. Deferred Amounts shall be credited to the Account as of the date that
Deferred Amount would otherwise have been paid to the Participant or, in the case of Discretionary
Contributions, the date that the Company awards such amount. A Participant’s Account(s) shall be
utilized solely as a device for the measurement and determination of the amounts to be paid to the
Participant pursuant to this Plan, and shall not constitute or be treated as a trust fund of any
kind. The Administrative Committee shall determine the balance of each Deferral Account, as of each
Valuation Date, by adjusting the balance of such Deferral Account as of the immediately preceding
Valuation Date to reflect changes in the value of the deemed investments thereof, credits and
debits and distributions pursuant to Article VI with respect to such Account since the preceding
Valuation Date. To the extent that the Company is required to withhold any taxes or other amounts
from the Deferred Amount pursuant to any state, Federal or local law, Deferred Amounts shall be
reduced for such withholdings only to the extent that there is not sufficient cash compensation
payable to the Participant at the time that such withholding must be made and such withholding
conforms to Code section 409A.

     Section 5.02 Hypothetical Investment Benchmarks. Each Participant shall be entitled
to direct the manner in which his/her Accounts will be deemed to be invested, selecting among the
Hypothetical Investment Benchmarks specified by the Plan Committee from time to time, and in
accordance with such rules, regulations and procedures as the TeleCommunication Systems Deferred
Compensation Plan Committee may establish from time to time. Notwithstanding anything to the
contrary herein, earnings and losses based on a Participant’s investment elections

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shall begin to accrue as of the date such Participant’s Deferral Amounts are credited to
his/her Accounts.

     Section 5.03 Vesting.

     (a) Except as provided in subsection (b) below, a Participant shall be 100% vested in the
balance of each of his or her Deferral Accounts at all times.

     (b) A Participant shall become fully vested in a Deferral Account pertaining to Discretionary
Contributions or other non-elective employer contributions made for any Plan Year (a Discretionary
Contribution Deferral Account) as of the earliest to occur of the following:

     i) The date set by the employer for a specific Discretionary Contribution;

     ii) The passage of three (3) Plan Years following the Plan Year to which such
Discretionary Employer Contributions pertain during each of which the Participant completes
at least 1,000 hours of service, with one-third (1/3) following the passage of one (1) year
and two-thirds (2/3) following the passage of two (2) years; and

     iii) The date as of which the Participant, while employed by the employer or other
affiliated company, dies or becomes disabled according to the definition of Disability.

     (c) Amounts held in a Discretionary Contribution Deferral Account of a Participant who
terminates employment prior to becoming vested in such account as prescribed in subsection (b)
above shall be forfeited.

ARTICLE VI

BENEFITS AND DISTRIBUTIONS

     Section 6.01 Time and Form of Payment. Payments shall be made to a Participant upon
the cessation of the Deferral Period with respect to each Account maintained for the Participant.
The amount of such payment shall be based upon the most recent Account Valuation Date and shall be
paid pursuant to the Form of Payment that is applicable to such Account. Thus, for example, if the
Deferral Period ceases upon Separation from Service and the applicable Form of Payment for an
Account is 5-year annual installments, the Deferral Period with respect to the first annual
installment due shall cease upon Separation from Service and the Deferral Period with respect to
the second annual installment due shall cease on the 1-year anniversary of Separation from Service.
Payments shall be made in cash. If the applicable Form of Payment is installments, each annual
installment shall be an amount equal to (i) the balance of such Account as of the most recent
Valuation Date preceding the payment date times (ii) a fraction, the numerator of which is one and
the denominator of which is the number of remaining installments (including the installment being
paid). Payments shall be made as soon as administratively practicable within 90 days of the
cessation of the Deferral Period.

     Section 6.02 Separation from Service Distributions. If a Deferral Period for an
Account is stated as the period until Separation from Service, the Deferral Period shall cease upon
Separation from Service. The Form of Payment shall be the form elected by the Participant.

     Section 6.03 In-Service and Specified Date Distributions. If the Deferral Period
applicable to an Account is a stated number of years or a specified date, the Account shall be

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distributed upon the cessation of the Deferral Period pursuant to the Form of Payment elected
by the Participant. If the Participant separates from service before the cessation of a Deferral
Period that is a stated number of years or a specified date, his or her account balance shall be
distributed as soon as administratively feasible following the Separation from Service in a lump
sum payment and in accordance with Section 6.04, if applicable.

     Section 6.04 Delay for Specified Employees. Notwithstanding this Article VI, if a
Deferral Period ceases upon Separation from Service (other than for death or Disability), payments
to a Participant who is a Specified Employee shall not be made until the close of the 6-month
anniversary of such Separation from Service. If during such 6-month delay a Participant dies,
payments shall be made pursuant to Section 6.05 below.

     Section 6.05 Distributions in the Event of Death or Disability. Notwithstanding the
provisions of Section 6.02 and Section 6.03 or the terms of any Deferral Agreement, if a
Participant dies or suffers a Disability prior to Separation from Service and prior to receiving
full payment of his/her Deferral Account(s), the Company shall pay the remaining balance
(determined as of the most recent Valuation Date preceding such event) to the Participant or the
Participant’s Beneficiary or Beneficiaries (as the case may be) in a lump sum in cash only.

     Section 6.06 Hardship Withdrawals. Notwithstanding the provisions of Section 6.01 and
any Deferral Agreement, a Participant shall be entitled to early payment of all or part of the
balance in his or her Account(s) if the Administrative Committee determines in its sole discretion
that the standards for a Hardship Withdrawal are satisfied. A Hardship Withdrawal shall be
permitted only to the extent reasonably needed to satisfy the unforeseeable emergency that
satisfies the standards for a Hardship Withdrawal. An application for an early payment under this
Section 6.06 shall be made to the Administrative Committee in such form and in accordance with such
procedures as the Administrative Committee shall determine from time to time. The determination of
whether and in what amount and form a distribution will be permitted pursuant to this Section 6.06
shall be made by the Administrative Committee. All Deferral Agreements shall cease upon the
Administrative Committee’s determination that a Hardship Withdrawal shall be made.

     Section 6.07 Withholding of Taxes. Notwithstanding any other provision of this Plan,
the Company shall withhold from payments made hereunder any amounts required to be so withheld by
any applicable law or regulation.

ARTICLE VII

BENEFICIARY DESIGNATION

     Section 7.01 Beneficiary Designation. Each Participant shall have the right, at any
time, to designate any person, persons or entity as his Beneficiary or Beneficiaries. A Beneficiary
designation shall be made, and may be amended, by the Participant by filing a written designation
with the Administrative Committee, on such form and in accordance with such procedures as the
Administrative Committee shall establish from time to time.

     Section 7.02 No Beneficiary Designation. If a Participant fails to designate a
Beneficiary as provided above, or if all designated Beneficiaries predecease the Participant, then
the Participant’s Beneficiary shall be deemed to be the Participant’s estate.

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ARTICLE VII

AMENDMENT AND TERMINATION OF PLAN

     Section 8.01 Amendment and Interpretation. The Board or the Plan Committee may at any
time amend this Plan in whole or in part, provided, however, that no amendment shall be effective
to decrease the balance in any Account as accrued at the time of such amendment, nor shall any
amendment otherwise have a retroactive effect. Interpretation of the Plan by the Board or the
Committee shall be made in a manner that is consistent with the intent that the Plan conform to the
requirements of Code section 409A.

     Section 8.02 Company’s Right to Terminate. The Board or the Plan Committee may at any
time terminate the Plan with respect to future Deferral Agreements. The Board or the Plan Committee
may also terminate the Plan in its entirety at any time for any reason, including without
limitation if, in its judgment, the continuance of the Plan, the tax, accounting, or other effects
thereof, or potential payments thereunder would not be in the best interests of the Company; such
termination, however, shall be made in a manner that conforms to the requirements of Code section
409A.

ARTICLE IX

MISCELLANEOUS

     Section 9.01 Unfunded Plan. This Plan is intended to be an unfunded plan maintained
primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees, within the meaning of Sections 201, 301 and 401 of ERISA. All
payments pursuant to the Plan shall be made from the general funds of the Company and no special or
separate fund shall be established or other segregation of assets made to assure payment. No
Participant or other person shall have under any circumstances any interest in any particular
property or assets of the Company as a result of participating in the Plan. Notwithstanding the
foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the
assets of which are subject to the claims of the Company’s creditors, to assist it in accumulating
funds to pay its obligations under the Plan.

     Section 9.02 Nonassignability. Except as specifically set forth in the Plan with
respect to the designation of Beneficiaries, neither a Participant nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be
unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment,
be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, nor be transferable by operation of law in
the event of a Participant’s or any other person’s bankruptcy or insolvency.

TeleCommunication Systems

10exv4w265

Exhibit
4-265

 

AMENDMENT, DATED JUNE 1, 2009, TO

TWENTY-FOURTH SUPPLEMENTAL INDENTURE

DATED AS OF MAY 1, 2008

 

BETWEEN

THE DETROIT EDISON COMPANY

AND

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

TRUSTEE

 

SUPPLEMENTING THE COLLATERAL TRUST INDENTURE

DATED AS OF JUNE 30, 1993

PROVIDING FOR

2008 SERIES ET VARIABLE RATE SENIOR NOTES DUE 2029

 

 

 

THIS AMENDMENT, dated as of June 1, 2009, is being entered into between THE DETROIT EDISON COMPANY
(the “Company”), a Michigan corporation, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a
national banking association, acting through its corporate trust office in Detroit, Michigan, as
Trustee (the “Trustee”).

Premises

WHEREAS, the Company and the Trustee have executed and delivered a Twenty-Fourth Supplemental
Indenture, dated as of May 1, 2008 (the “Supplemental Indenture”), supplementing the Collateral
Trust Indenture dated as of June 30, 1993, to provide for the issuance by the Company of its
2008 Series ET Variable Rate Senior Notes due 2029 in connection with its obligations to the
Michigan Strategic Fund under the Loan Agreement dated as of May 1, 2008 relating to the
Michigan Strategic Fund Variable Rate Limited Obligation Refunding Revenue Bonds (The Detroit
Edison Company Exempt Facilities Project), Series 2008ET (the “2008ET Bonds”); and

WHEREAS, the Company has elected to convert the Rate Period applicable to the 2008ET Bonds from
the Weekly Interest Rate Period to the Term Interest Rate Period; and

WHEREAS, the Company and the Trustee desire to amend the Supplemental Indenture by execution of
this Amendment in connection with the conversion of the 2008ET Bonds to the Term Interest Rate
Period, and to hereby add to the covenants of the Company for the benefit of the holders of the
2008ET Bonds;

NOW, THEREFORE, for and in consideration of these premises and the mutual covenants herein
contained, the Company covenants with the Trustee as follows:

Article I

Definitions

     All terms defined in the recitals hereto shall have the meanings therein defined. All terms
used in this Amendment, including the recitals, which are defined in the Supplemental Indenture
shall have the meanings as defined in the Supplemental Indenture, unless expressly given a
different meaning herein or unless the context or use indicates another or different meaning or
intent.

Article II

Amendments to Supplemental Indenture

     Section 2.01 Amendment to Section 2.05 of the Supplemental Indenture

     Section 2.05 of the Supplemental Indenture is hereby amended and restated in its entirety as
follows:

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     SECTION 2.05 Form of Note. Attached hereto as Exhibit A is the form of the definitive Note.
On and after the Release Date, the terms of the Notes shall be amended to make appropriate
reference to the Substitute Mortgage and the Substitute Mortgage Bonds; provided, that the consent
of Holders shall not be required in connection with such amendment.

     Section 2.02 Amendment to Article III of the Supplemental Indenture

     All sections of Article III of the Supplemental Indenture are hereby deleted in their entirety
and Article III is hereby designated “RESERVED.”

     Section 2.03 Amendment to Section 4.02 of the Supplemental Indenture

     Section 4.02 of the Supplemental Indenture is hereby amended and restated in its entirety as
follows:

     SECTION 4.02. Release. Until the Release Date and subject to Article Four of the Original
Indenture, the Bonds of the related series issued and delivered to the Trustee shall serve as
security for any and all obligations of the Company under all Notes from time to time Outstanding,
including, but not limited to (1) the full and prompt payment of the principal and premium, if any,
on the Notes when and as the same shall become due and payable in accordance with the terms and
provisions of the Indenture or the Notes, either at the Stated Maturity thereof, upon acceleration
of the maturity thereof, upon redemption, or otherwise, and (2) the full and prompt payment of any
interest on the Notes when and as the same shall become due and payable in accordance with the
terms and provisions of this Indenture or the Notes including, if and to the extent provided for in
the Notes, interest on overdue installments of principal and (to the extent permitted by law)
interest on overdue installments of interest.

     Each supplemental indenture to the Mortgage pursuant to which any Bonds are issued shall
contain a provision to the effect that any payment by the Company hereunder of principal of or
premium or interest on Notes which shall have been authenticated and delivered in connection with
the issuance and delivery to the Trustee of such Bonds (other than by the application of the
proceeds of a payment in respect of such Bonds) shall to the extent thereof, be deemed to satisfy
and discharge the obligation of the Company, if any, to make a payment of principal, premium or
interest, as the case may be, in respect of such Bonds which is then due.

     Notwithstanding anything in the Original Indenture to the contrary, from and after the Release
Date, the obligation of the Company to make payment with respect to the principal of and premium,
if any, and interest on the Bonds shall be deemed satisfied and discharged as provided in the
supplemental indenture or indentures to the Mortgage creating such Bonds and the Bonds shall cease
to secure in any manner Notes theretofore or subsequently issued; the Trustee shall thereupon
surrender the Bonds to the Mortgage Trustee for cancellation and execute and deliver such proper
instruments of release as may be required. From and after the Release Date, all Notes, whether
theretofore or subsequently issued, shall be secured by Substitute Mortgage Bonds pursuant to
Section 4.03 below, and any conditions to the issuance of Notes that refer or relate to Bonds or
the Mortgage shall be inapplicable (except as such conditions shall be deemed

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to refer to Substitute Mortgage Bonds or a Substitute Mortgage pursuant to Section 4.03
below). From and after the Release Date, the Company shall not issue any additional Mortgage
Bonds, including Pledged Bonds, under the Mortgage. Notice of the occurrence of the Release Date
shall be given by the Trustee to the Holders of the Notes in the manner provided for in the
Original Indenture not later than 30 days after the Company notifies the Trustee of the occurrence
of the Release Date.

     In connection with the establishment of the occurrence of the Release Date, the Trustee shall
be entitled to receive, may presume the correctness of, and shall be fully protected in relying
upon, an Officers’ Certificate designating the Release Date and stating that the conditions to the
occurrence of the Release Date have been satisfied.

     When the obligation of the Company to make payments with respect to the principal of, and
premium, if any, and interest on all or any part of the Bonds shall be satisfied or deemed
satisfied pursuant to the Original Indenture or pursuant to this Twenty-Fourth Supplemental
Indenture, the Trustee shall, upon written request of the Company, deliver to the Company without
charge therefor all of the Bonds so satisfied or deemed satisfied, together with such appropriate
instruments of transfer or release as may be reasonably requested by the Company. All Bonds
delivered to the Company in accordance with this Section shall be delivered by the Company to the
Mortgage Trustee for cancellation.

     Section 2.04 Amendment to Section 4.03 of the Supplemental Indenture

     Section 4.03 of the Supplemental Indenture is hereby amended and restated in its entirety as
follows:

     SECTION 4.03. Substitute Mortgage Bonds.

     (a) The Company shall notify the Trustee not less than 90 days prior to the Release Date (or
such shorter period as the Company and the Trustee may agree) that the Company will deliver to the
Trustee on the Release Date Substitute Mortgage Bonds in an aggregate principal amount equal to the
aggregate principal amount of Notes and any other Securities subject to the release provisions
Outstanding on the Release Date, in trust for the benefit of the Holders from time to time of the
Notes and any other Securities subject to the release provisions issued under the Original
Indenture, as supplemented, as security for any and all obligations of the Company under the Notes
and any other Securities subject to the release provisions, including but not limited to, (1) the
full and prompt payment of the principal of and premium, if any, on the Notes and any other
Securities subject to the release provisions when and as the same shall become due and payable in
accordance with the terms and provisions of the Original Indenture, as supplemented, or the Notes
or such other Securities subject to the release provisions, either at the stated maturity thereof,
upon acceleration of the maturity thereof or upon redemption, and (2) the full and prompt payment
of any interest on the Notes and any other Securities subject to the release provisions when and as
the same shall become due and payable in accordance with the terms and provisions of the Original
Indenture, as supplemented, or the Notes or such other Securities subject to the release
provisions.

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     (b) The Company shall deliver such Substitute Mortgage Bonds described in Section 4.03(a) in
separate series and issues corresponding to the series and issues of Notes and other Securities
subject to the release provisions Outstanding on or prior to the Release Date, each series or issue
of Substitute Mortgage Bonds having the same stated rate or rates of interest (or interest
calculated in the same manner), Interest Payment Dates, stated maturity date and redemption
provisions, and in the same aggregate principal amount, as the related series or issue of Notes or
other Securities subject to the release provisions outstanding on the Release Date; it being
expressly understood that each such series of Substitute Mortgage Bonds shall be held by the
Trustee for the benefit of the Holders of the corresponding series of Securities from time to time
Outstanding subject to such terms and conditions relating to surrender to the Company, transfer
restrictions, voting, application of payments of principal and interest and other matters as shall
be set forth in an indenture supplemental hereto specifically providing for the delivery to the
Trustee of such Substitute Mortgage Bonds. Such Substitute Mortgage Bonds shall be issued under
and secured by a Substitute Mortgage (A) on which the Company shall be the obligor; and (B) which
shall be qualified, or shall meet the requirements for qualification, under the Trust Indenture Act
for the issuance of Substitute Mortgage Bonds.

     (c) On or prior to the Release Date the Company shall have delivered to the Trustee:

(A) a supplemental indenture to the Original Indenture that provides among other things,
that on the delivery of the Substitute Mortgage Bonds described in Section 4.03(b), the
Company shall deliver to the Trustee in trust for the benefit of the Holders as described in
Section 4.03(a) hereof, and the Trustee shall accept therefor, related series of Substitute
Mortgage Bonds registered in the name of the Trustee and conforming to the requirements
herein and therein specified;

(B) an Officer’s Certificate (1) stating that, to the knowledge of the signer, (a) no Event
of Default has occurred and is continuing and (b) no event has occurred and is continuing
which entitles the secured party under the Substitute Mortgage to accelerate the maturity of
the indebtedness outstanding thereunder and (2) stating the aggregate principal amount of
indebtedness issuable, and then proposed to be issued, under and secured by the lien of the
Substitute Mortgage; and

(C) an Opinion of Counsel to the effect that such Substitute Mortgage Bonds have been duly
issued under such Substitute Mortgage and constitute valid obligations, entitled to the
benefit of the lien of the Substitute Mortgage equally and ratably with all other
indebtedness then outstanding secured by such lien.

     (d) On or prior to the Release Date the Company shall provide an Officer’s Certificate stating
that the Company has been advised in writing, within not more than 30 days prior to such
substitution of the Substitute Mortgage Bonds for the Mortgage Bonds, by at least two credit rating
agencies qualifying as “nationally recognized statistical rating organizations” (as defined by the
Securities Exchange Act of 1934, as amended) then maintaining a securities rating on the 2008ET
Bonds that the substitution of such Substitute Mortgage Bonds for the Mortgage Bonds will not
result in a reduction of the securities rating assigned to the 2008ET Bonds by that credit

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rating agency immediately prior to the substitution or the suspension or withdrawal of its
rating and the Company shall have provided the Trustee with written evidence of such advice.

     (e) In the event that the Company cannot obtain assurance of at least two credit rating
agencies as described in Section 4.03(d) above, the Company will take such actions as are necessary
to cause the Release Date not to occur.

     (f) Article Four and related provisions of the Original Indenture (except for any provisions
relating to discharge of Bonds or amounts owing on Bonds on or after the Release Date) shall apply
to Substitute Mortgage Bonds pledged to the Trustee hereunder and the provisions thereof shall be
deemed to refer to the Substitute Mortgage and the Substitute Mortgage Bonds. Article Four and
related provisions may be amended by the Company to have the Notes secured by Substitute Mortgage
Bonds on and after the Release Date and make appropriate reference to the Substitute Mortgage and
the Substitute Mortgage Bonds; provided, that the consent of Holders shall not be required in
connection with such amendment.

     Section 2.05 Amendment to Section 4.04 of the Supplemental Indenture

     Section 4.04 of the Supplemental Indenture is hereby amended and restated in its entirety as
follows:

     SECTION 4.04. Events of Default.

     (a) On and after the Release Date, Section 601(8) of the Original Indenture shall no longer
apply to the Notes.

     For purposes of the Notes, Section 601(8) of the Original Indenture shall read, “the
occurrence of an “event of default” as such term is defined in the Mortgage; or”.

     (b) On and after the Release Date, the occurrence of a “default” (as defined in the Substitute
Mortgage) shall constitute an Event of Default under Section 601 of the Original Indenture with
respect to the Notes and the references in Section 601(4) of the Original Indenture and related
provisions to “Mortgage Bonds” shall be deemed to refer to “Substitute Mortgage Bonds.”

     (c) In addition, failure by the Company to deliver Substitute Mortgage Bonds in accordance
with the provisions of Section 4.03 of this Supplemental Indenture on or prior to the Release Date
shall be an “Event of Default” with respect to the Notes as contemplated by Section 601(9) of the
Original Indenture.

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Article III

Miscellaneous

     Section 3.01.
Amendment Construed with Supplemental Indenture. All of the
provisions of this Amendment shall be deemed and construed as part of the Supplemental Indenture to
the same extent as if fully set forth therein.

     Section 3.02. Effectiveness and Effect of Amendment. This Amendment shall be
and become effective on and as of the date of execution and delivery by the parties hereto. Except
as amended and supplemented hereby, the Supplemental Indenture shall be and remain in full force
and effect.

     Section 3.03. Severability. If any one or more sections, clauses or
provisions of this Amendment shall be determined by a court of competent jurisdiction to be invalid
or ineffective for any reason, such determination shall in no way affect the validity and
effectiveness of the remaining sections, clauses and provisions of this Amendment.

     Section 3.04. Headings. Any headings shall be solely for convenience of
reference and shall not constitute a part of this Amendment, nor shall they affect its meaning,
construction or effect.

     Section 3.05. Counterparts. This Amendment may be executed in several
counterparts, each of which shall be an original and all of which shall constitute one instrument.

     Section 3.06. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by
persons thereunto duly authorized, as of June 1, 2009.

	 	 	 	 	 
	 	THE DETROIT EDISON COMPANY

 	 
	 	By:  	/s/ Edward Solomon
 	 
	 	 	Name:  	Edward Solomon 	 
	 	 	Title:  	Assistant Treasurer 	 

	 	 	 	 
	ATTEST:

 	 
	By:  	/s/ Sandra Kay Ennis
 	 
	 	Name:  	Sandra Kay Ennis 	 
	 	Title:  	Corporate Secretary 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

	 
	 	By:  	                                           /s/Alexis M. Johnson
 	 
	 	 	Name:  	Alexis M. Johnson 	 
	 	 	Title:  	Assistant Vice President 	 

	 	 	 	 
	ATTEST:

 	 
	By:  	/s/ J. Michael Banas
 	 
	 	Name:  	J. Michael Banas 	 
	 	Title:  	Vice President 	 
				

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