EXHIBIT 10.1
INDEMNIFICATION AGREEMENT
This Indemnification Agreement
(“Agreement”) is entered into as of December 6,
2007 (“Effective Date”) between DTE Energy Company, a
Michigan corporation (“DTE Energy”), and
(the “Indemnitee”).
RECITALS
A. The Indemnitee currently is,
and/or will be in the future, serving in one or more capacities as
a director, officer, employee, or agent of DTE Energy or one of its
subsidiaries or, at the request of DTE Energy, as a director,
officer, employee, agent, fiduciary or trustee of, or in a similar
capacity for, another corporation, partnership, limited liability
company, joint venture, trust, employee benefit plan or other
entity, and in so doing is and will be performing a valuable
service to or on behalf of DTE Energy.
B. DTE Energy has in the past
filed, and may propose in the future to file, registration
statements under the Securities Act of 1933 (and may make related
filings under applicable state securities laws) for the public
offering and sale of its securities or the securities of certain of
its affiliates, and may in the future request the Indemnitee to
execute registration statements, in one or more of the capacities
listed in the previous recital, as indicated in those registration
statements, and to take other actions in connection with such
registration statements and sales of such securities.
C. DTE Energy and the Indemnitee
recognize the substantial increase in corporate litigation in
general, which may subject directors, officers, employees, agents
and fiduciaries such as the Indemnitee to risks of liability and
expense in defending against such litigation. DTE Energy and the
Indemnitee further recognize the continued difficulty in obtaining
liability insurance for directors, officers, employees, agents and
fiduciaries, the significant increases in the cost of such
insurance, the general limitations in the coverage of such
insurance and the lack of assurance that such insurance will
continue to be available in the future.
D. DTE Energy desires to attract
and retain highly qualified individuals such as the Indemnitee to
serve DTE Energy and recognizes that the circumstances described
above have made attracting and retaining such persons more
difficult.
E. To induce the Indemnitee to
serve or continue to serve DTE Energy in one or more of the
capacities described above, DTE Energy desires to provide the
Indemnitee with specific contractual assurance of the
Indemnitee’s rights to full indemnification against
litigation risks and expenses (regardless, among other things, of
any amendment to or revocation of the indemnification provisions of
DTE Energy’s Articles of Incorporation or any change in the
ownership of DTE Energy or the composition of the DTE Energy
Board).
F. It is reasonable, prudent and
necessary for DTE Energy to obligate itself contractually to
indemnify the Indemnitee as described in this Agreement, so that
the Indemnitee may serve or continue to serve DTE Energy free from
undue concern that the Indemnitee will not be adequately
indemnified. The Indemnitee is relying upon the rights afforded
under this Agreement in serving or continuing to serve DTE
Energy.
Accordingly, and in order to induce
the Indemnitee to agree to serve or continue serving in an Official
Capacity, DTE Energy and the Indemnitee agree as follows:
1. Definitions .
As used in this Agreement, the following terms when capitalized
have the following meanings:
(a) “BCA”
means the Michigan Business Corporation Act, as amended from time
to time.
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(b) “Change
in Control” means a change in control of DTE Energy which
would be required to be reported in response to Item 6(e) of
Schedule 14A under Regulation 14A (or in response to any
similar item on any similar schedule or form) promulgated under the
Exchange Act, whether or not DTE Energy is then subject to such
reporting requirement. Without limiting the generality of the
foregoing, a Change in Control will be deemed to have occurred if
(i) any “person” (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of DTE
Energy representing 20% or more of the combined voting power of DTE
Energy’s then outstanding securities without the prior
approval of at least two-thirds of the members of the DTE Energy
Board in office immediately prior to such person attaining such
percentage interest; (ii) DTE Energy is a party to a merger,
consolidation, sale of assets or other reorganization, or a proxy
contest, as a result of which members of the DTE Energy Board in
office immediately prior to such transaction or event constitute
less than a majority of the DTE Energy Board thereafter; or
(iii) during any period of two consecutive years, individuals
who at the beginning of such period constituted the DTE Energy
Board (including for this purpose any new director whose election
or nomination for election by DTE Energy’s stockholders was
approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of such period)
cease for any reason to constitute at least a majority of the DTE
Energy Board.
(c) “Disinterested
Directors” with respect to any Proceeding means directors of
DTE Energy who are not parties or threatened to be made parties to
such Proceeding.
(d) “DTE
Energy Board” means the Board of Directors of DTE Energy as
it exists from time to time.
(e) “Exchange
Act” means the Securities Exchange Act of 1934, as
amended.
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(f) “Expenses”
means all reasonable fees, costs and expenses actually incurred by
the Indemnitee in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, or being or preparing to be
a witness in a Proceeding, including, without limitation,
attorneys’ fees, disbursements and retainers, fees and
disbursements of expert witnesses, private investigators and
professional advisors (including, without limitation, accountants
and investment bankers), travel and deposition costs, expenses of
investigations, judicial or administrative proceedings and appeals,
court costs, transcript costs, copying costs, printing and binding
costs, telephone and fax transmission charges, postage, costs of
delivery services, costs of secretarial services. The term
“Expenses” does not include the amount of judgments,
fines, penalties, amounts paid in settlement or ERISA or other
excise taxes actually levied against the Indemnitee.
(g) “Independent
Counsel” means an attorney, a law firm, or a member of a law
firm, who (or which) is experienced in matters of corporation law
and neither presently is, nor in the past three years has been,
retained to represent: (i) DTE Energy or the Indemnitee in any
other matter material to either such party; or (ii) any other
party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” does not include any person who,
under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing
either DTE Energy or the Indemnitee in an action to determine the
Indemnitee’s rights under this Agreement.
(h) “Independent
Director” means an independent director of DTE Energy as
defined in Section 107(3) of the BCA, as it may be amended from
time to time, or any successor to that provision.
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(i) “Liabilities”
means damages (including, without limitation, punitive, exemplary
and the multiplied portion of any damages), losses, claims,
judgments, liabilities, fines, penalties, ERISA excise taxes and
other excise taxes and amounts paid in settlement.
(j) “Official
Capacity” means service to DTE Energy as director, officer
employee or agent or, at the request of DTE Energy, as a director,
officer, general partner, manager, member, employee, agent,
fiduciary, or trustee of, or in a similar capacity for, another
corporation, partnership, limited liability company, joint venture,
trust, employee benefit plan (including a plan qualified under the
Employee Retirement Income Security Act of 1974) or other entity.
For purposes of this definition, if the Indemnitee is serving or
has served as a director, partner, trustee, officer, employee or
agent of a subsidiary, the Indemnitee will be deemed to be serving
at the request of DTE Energy. Notwithstanding the foregoing, unless
the Company’s written request to serve another entity
indicates that indemnification from DTE Energy will be available,
the person to whom the request is made will not be deemed to be
serving in an Official Capacity.
(k) “Proceeding”
means any threatened, pending or completed claim, action, suit,
arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding of any
nature, whether civil, criminal, administrative, arbitrative or
investigative, whether formal or informal, and whether brought by
or in the right of DTE Energy, a class of its security holders, or
any other party.
(l) “Reviewing
Party” means (i) Disinterested Directors constituting a
quorum of the DTE Energy Board, acting by majority vote; or
(ii) if such a quorum is not obtainable, a committee duly
designated by the DTE Energy Board consisting solely of two or more
Disinterested Directors, acting by majority vote; or (iii) all
Independent Directors who are not parties or threatened to be made
parties to such Proceeding, acting unanimously; or (iv)
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Independent Counsel acting by written opinion who has been
designated (A) by Disinterested Directors or a committee
thereof as described in clause (i) or (ii) above, subject
to the approval of the Indemnitee, which will not be unreasonably
withheld, or (B) if the Disinterested Directors or committee
is unable or fails to so designate, by the Indemnitee, subject to
the approval of the DTE Energy Board, which will not be
unreasonably withheld; provided, that following any Change in
Control, Reviewing Party will mean Independent Counsel acting by
written opinion, designated in accordance with clause (iv).
(m) “Securities
Act” means the Securities Act of 1933, as amended.
2. Service by the
Indemnitee . The Indemnitee agrees to serve in each
Official Capacity held now or in the future for so long as the
Indemnitee is duly elected or appointed or, if earlier, until
(a) the Indemnitee’s death, retirement, resignation or
removal or (b) such service is otherwise terminated pursuant
to DTE Energy’s Articles of Incorporation, By-Laws or the
BCA. The Indemnitee will discharge his/her duties and
responsibilities to the best of his/her ability. The Indemnitee may
at any time and for any reason resign from such position (subject
to any other obligation, whether contractual or imposed by
operation of law). Nothing in this Agreement confers upon the
Indemnitee the right to continue in the employ of DTE Energy or in
any Official Capacity, or affect the right of DTE Energy to
terminate, in DTE Energy’s sole discretion (with or without
cause) and at any time, the Indemnitee’s employment or the
Indemnitee’s service in any Official Capacity, in each case
subject to any contractual rights of the Indemnitee under
agreements with DTE Energy other than this Agreement.
3. Indemnity
.
(a) To
the full extent permitted by applicable law, as it now exists or
may hereafter be amended, but subject to the provisions of this
Agreement, DTE Energy will indemnify
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the
Indemnitee against all Liabilities and Expenses incurred by the
Indemnitee in connection with any Proceeding (whether or not by or
in the right of DTE Energy) to which the Indemnitee was or is a
party or is threatened to be made a party by reason of
Indemnitee’s Official Capacity. Subject to Section 6(d),
the provisions of this Section 3(a) include, without
limitation
(i) any
and all Liabilities and Expenses arising under the Securities Act,
the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise asserted in any Proceeding
brought by DTE Energy, a shareholder thereof or a third party which
relates directly or indirectly to (A) the registration,
purchase, sale or ownership of any securities of DTE Energy or any
of its affiliates, (B) any fiduciary obligation owed with
respect thereto or (C) any misstatement or omission of a
material fact by DTE Energy in violation of any duty of disclosure
imposed on it by federal or state securities or common laws;
and
(ii)
Expenses incurred by the Indemnitee in connection with Proceedings
brought by the Indemnitee to establish or enforce a right to
indemnification under (A) this Agreement as contemplated in
Section 10, (B) the Articles of Incorporation of DTE
Energy, or (C) any other statute or law or otherwise, except
to the extent relating to claims that are determined, pursuant to
arbitration under Section 10, to be frivolous.
(b) To
the full extent permitted by law, the termination of any Proceeding
by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent will not, of itself, create a
presumption that the Indemnitee did not meet the standards of
conduct required under the BCA to permit indemnification of the
Indemnitee with respect to any particular claim.
(c) To
the extent that the Indemnitee has been successful, on the merits
or otherwise, in defense of any Proceeding to which the Indemnitee
was a party by reason of his or her
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Official
Capacity, or in defense of any claim, issue or matter in such a
Proceeding (including, without limitation, the dismissal of the
Proceeding or a claim, issue or matter in the Proceeding without
prejudice), the Indemnitee will be indemnified against the Expenses
incurred by the Indemnitee in connection with the Proceeding.
(d) If
the Indemnitee is entitled to indemnification under Section 3(a) or
3(c) for a portion of Expenses or Liabilities incurred in
connection with any Proceeding, but not for the total amount, DTE
Energy will indemnify the Indemnitee for the portion of the
Expenses or Liabilities for which the Indemnitee is entitled to be
indemnified.
(e) Upon
application to a court by the Indemnitee pursuant to
Section 564c of the BCA, and a determination of such court
that the Indemnitee is fairly and reasonably entitled to
indemnification, DTE Energy will pay to the Indemnitee the amount
so ordered by the court.
4. Advancement of
Expenses .
(a) Subject
to applicable law, DTE Energy will pay Expenses incurred by the
Indemnitee in connection with any Proceeding arising from the
Indemnitee’s Official Capacity, in advance of the final
disposition of the Proceeding, if so requested by the Indemnitee.
The Expenses to be paid by DTE Energy under this Section 4
include those incurred by the Indemnitee in connection with any
proceeding by the Indemnitee seeking to enforce the
Indemnitee’s right to indemnification pursuant to this
Agreement, DTE Energy’s Articles of Incorporation or
otherwise. To the extent required by applicable law, an evaluation
of the reasonableness of Expenses for which advance payment is
requested hereunder will be made by the Reviewing Party.
(b) DTE
Energy will pay Expenses under this Section 4 within
20 days after the receipt by DTE Energy of a written statement
or statements from the Indemnitee requesting such advance or
advances substantially in the form of Exhibit 1 attached
hereto and made a part hereof.
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The
Indemnitee may submit such statements from time to time. A
statement or statements requesting payment of such Expenses shall
reasonably evidence the Expenses incurred by the Indemnitee and, to
the extent required under the BCA at the time the statement is
submitted, shall include or be accompanied by a written undertaking
executed personally by or on behalf of the Indemnitee to repay such
amount if it is ultimately determined that the Indemnitee did not
meet the applicable standard of conduct, if any, required under the
BCA for the indemnification of a person under the circumstances or
otherwise is not entitled to be indemnified against such Expenses
pursuant to this Agreement or otherwise. Each written undertaking
to pay amounts advanced must be an unlimited general obligation of
the Indemnitee but need not be secured and will be accepted without
reference to the financial ability of the Indemnitee to make
repayment.
5. Limitations
.
(a) Notwithstanding
the foregoing, DTE Energy will not be liable to indemnify the
Indemnitee under this Agreement for Expenses or Liabilities:
(i)
with respect to a claim, issue or matter in which the Indemnitee
has been found liable to DTE Energy, except to the extent that the
Court conducting the proceeding or another court of competent
jurisdiction determines upon application that the Indemnitee is
fairly and reasonably entitled to indemnification in view of all
relevant circumstances whether or not the Indemnitee met the
standard of conduct required under applicable law or was so
adjudged liable to DTE Energy; provided that if the Indemnitee was
adjudged liable, such indemnification will be limited to reasonable
Expenses incurred;
(ii)
with respect to amounts paid in settlement of any action, suit or
proceeding affected without DTE Energy’s written consent,
which consent will not be unreasonably withheld;
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(iii)
with respect to any Proceeding (A) for recovery or
disgorgement of profits made from the purchase and sale or sale and
purchase by the Indemnitee of equity securities of DTE Energy or
any of its affiliates pursuant to Section 16(b) of the Exchange
Act, the rules and regulations promulgated thereunder, or similar
provisions of any federal, state or local statutory law or
(B) arising from transactions in publicly traded securities of
DTE Energy or any of its affiliates that were effected by the
Indemnitee in violation of Section 10(b) of the Exchange Act,
including Rule 10b-5 promulgated thereunder.
(iv) to
the extent arising from any fine or similar governmental imposition
which DTE Energy is prohibited by applicable law from paying;
(v)
with respect to any Proceeding brought by the Indemnitee against
DTE Energy, any entity which it controls, any director or officer
thereof, or any third party, unless the Proceeding was previously
authorized by a majority of the DTE Energy Board; provided, that
this subsection (v) does not a
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