Document:

EX-10.78

Exhibit 10-78

DTE ENERGY COMPANY

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	PREAMBLE
	 	 	1	 
	 
	 	 	 	 
	SECTION 1. TITLE, PURPOSE AND EFFECTIVE DATE
	 	 	1	 
	1.01. Title
	 	 	1	 
	1.02. Purpose
	 	 	1	 
	1.03. Effective Date
	 	 	2	 
	1.04 Compliance with Code Section 409A
	 	 	2	 
	 
	 	 	 	 
	SECTION 2. DEFINITIONS
	 	 	2	 
	2.01. Account
	 	 	2	 
	2.02. Affiliated Company
	 	 	2	 
	2.03. Annual Cash Bonus
	 	 	2	 
	2.04. Base Salary
	 	 	2	 
	2.05. Beneficiary
	 	 	3	 
	2.06. Board
	 	 	3	 
	2.07. Cash Balance Plan
	 	 	3	 
	2.08. Cash Compensation
	 	 	3	 
	2.09. Code
	 	 	3	 
	2.10. Committee
	 	 	3	 
	2.11. Company
	 	 	3	 
	2.12. Company’s Accountants
	 	 	3	 
	2.13. Company’s Actuaries
	 	 	3	 
	2.14. Contribution Subaccount
	 	 	3	 
	2.15. Deferral Election
	 	 	4	 
	2.16. Deferral Period
	 	 	4	 
	2.17. Deferral Year
	 	 	4	 
	2.18. Deferral Year Subaccount
	 	 	4	 
	2.19. DTE
	 	 	4	 
	2.20. DTE Stock
	 	 	4	 
	2.21. Eligible Employee
	 	 	4	 
	2.22. ERISA
	 	 	4	 
	2.23. Fair Market Value
	 	 	4	 
	2.24. FICA
	 	 	4	 
	2.25. Participant
	 	 	4	 
	2.26. Participating Affiliated Company
	 	 	5	 
	2.27. Pension Plan
	 	 	5	 
	2.28. Performance Share Award
	 	 	5	 
	2.29. Plan
	 	 	5	 
	2.30. Plan Year
	 	 	5	 
	2.30 A Post-2004 Subaccount
	 	 	5	 
	2.30 B Pre-2005 Subaccount
	 	 	5	 
	2.31. Prior Plan
	 	 	5	 

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	Section	 	Page	 
	2.32. Qualified Plan
	 	 	5	 
	2.33. Savings Plan
	 	 	5	 
	2.34. SIP
	 	 	5	 
	2.35. Spouse
	 	 	5	 
	2.36. Subsidiary
	 	 	6	 
	 
	 	 	 	 
	SECTION 3. ELIGIBILITY AND PARTICIPATION
	 	 	6	 
	3.01. Voluntary Participation by Eligible Employees
	 	 	6	 
	3.02. Mandatory Participation by Covered Employees
	 	 	7	 
	 
	 	 	 	 
	SECTION 4. DEFERRALS AND CONTRIBUTIONS
	 	 	7	 
	4.01. Deferral of Performance Share Awards
	 	 	7	 
	4.03. Deferral of Annual Cash Bonus
	 	 	7	 
	4.04. Restoration of Qualified Plan Benefits
	 	 	8	 
	4.05. Mandatory Deferral
	 	 	8	 
	4.06. Deferral of Prior Plan Balances
	 	 	8	 
	 
	 	 	 	 
	SECTION 5. ACCOUNTS AND EARNINGS
	 	 	9	 
	5.01. Establishment of Accounts
	 	 	9	 
	5.02. Contribution Subaccounts
	 	 	9	 
	5.03. Election of Investment Options
	 	 	10	 
	5.04. No Requirement to Fund
	 	 	10	 
	 
	 	 	 	 
	SECTION 6. FORM AND TIMING OF PAYMENT
	 	 	10	 
	6.01. Distribution of Contribution Subaccount
	 	 	10	 
	6.02. Form of Distributions
	 	 	12	 
	6.03. Change In Distribution Option
	 	 	13	 
	6.04. Hardship Withdrawals
	 	 	14	 
	6.05. Unscheduled Withdrawals
	 	 	14	 
	6.06. Revocation of Designation as an Eligible Employee
	 	 	15	 
	6.07. Distribution of Performance-Based Compensation
	 	 	15	 
	 
	 	 	 	 
	SECTION 7. SELECTION OF AND PAYMENTS TO A BENEFICIARY
	 	 	15	 
	7.01. Beneficiary Designation
	 	 	15	 
	7.02. Change in Beneficiary
	 	 	15	 
	7.03. Survivor Benefit
	 	 	15	 
	 
	 	 	 	 
	SECTION 8. VESTING OF BENEFITS
	 	 	15	 
	 
	 	 	 	 
	SECTION 9. TAX WITHHOLDING
	 	 	16	 
	 
	 	 	 	 
	SECTION 10. ADMINISTRATION OF THE PLAN
	 	 	16	 
	10.01. Duties and Power
	 	 	16	 
	10.02. Benefit Statements
	 	 	16	 
	10.03. Right to Accelerate
	 	 	16	 

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	Section	 	Page	 
	SECTION 11. AMENDMENT, SUSPENSION, AND TERMINATION
	 	 	17	 
	11.01. Right to Amend or Terminate
	 	 	17	 
	11.02. Right to Suspend
	 	 	17	 
	11.03. Partial ERISA Exemption
	 	 	17	 
	 
	 	 	 	 
	SECTION 12. MISCELLANEOUS
	 	 	17	 
	12.01. Unfunded Plan
	 	 	17	 
	12.02. No Right to Continued Employment
	 	 	17	 
	12.03. Prohibition Against Alienation
	 	 	18	 
	12.04. Savings Clause
	 	 	18	 
	12.05. Payment of Benefit of Incompetent
	 	 	18	 
	12.06. Spouse’s Interest
	 	 	18	 
	12.07. Successors
	 	 	18	 
	12.08. Gender, Number and Heading
	 	 	18	 
	12.09. Legal Fees and Expenses
	 	 	18	 
	12.10. Choice of Law
	 	 	19	 
	12.11. Affiliated Employees
	 	 	19	 
	12.12. Plan Document
	 	 	19	 
	 
	 	 	 	 
	SECTION 13. ARBITRATION
	 	 	19	 
	 
	 	 	 	 
	SECTION 14. CHANGE IN CONTROL PROVISIONS
	 	 	20	 
	14.01. General
	 	 	20	 
	14.02. Transfer to Rabbi Trust
	 	 	20	 
	14.03. Lump Sum Payments
	 	 	21	 
	14.04. Joint and Several Liability
	 	 	21	 
	14.05. Dispute Procedures
	 	 	21	 
	14.06. Definition of Change in Control
	 	 	21	 

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DTE ENERGY COMPANY

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective January 1, 2005

PREAMBLE

     Benefits under the Plan are available to eligible executives and key management employees of
DTE Energy Company and its Affiliated Companies. DTE Energy Company has established this Plan to
benefit executives of DTE Energy Company and its Affiliated Companies in a manner that will be in
the best interest of DTE Energy Company and its shareholders.

SECTION 1.

TITLE, PURPOSE AND EFFECTIVE DATE

     1.01. Title. The title of this Plan shall be the “DTE Energy Company Executive
Deferred Compensation Plan” and shall be referred to in this document as the “Plan.”

     1.02. Purpose. The purpose of the Plan is to promote the success of DTE Energy Company
(hereinafter referred to as “DTE”) by:

          (a) providing selected executives with the ability to defer compensation on a pre-tax basis to
provide supplemental retirement savings;

          (b) providing a mechanism for selected executives to receive benefits that they otherwise
would have received under certain qualified retirement plans but for their deferral elections;

          (c) providing executives participating in the DTE Energy Company 2001 Stock Incentive Plan
(“SIP”) with a mechanism for deferring receipt of Performance Share Awards otherwise payable in
cash under the SIP; and

          (d) permitting the Organization and Compensation Committee of the Board, or its designee, to
require deferrals of compensation to the extent desirable to satisfy the deduction limitations of
Code section 162(m).

          It is intended that this Plan provide deferred compensation for “a select group of management
or highly compensated employees” within the meaning of sections 201, 301 and 401 of the Employee
Retirement Income Security Act of 1974, as amended (hereinafter referred to as “ERISA”) and,
therefore, to be exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.

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     1.03. Effective Date. The Plan was originally effective January 1, 2002. This
amendment and restatement of the Plan is effective January 1, 2005, unless a different effective
date is specified for a particular provision.

     1.04 Compliance with Code Section 409A. The Plan is being amended and restated
effective January 1, 2005 to comply with the requirements of Code Section 409A solely with respect
to benefits accrued and vested after December 31, 2004. It is intended that all Plan benefits
accrued and vested as of December 31, 2004 are not subject to Code Section 409A. Only Plan
benefits accrued and vested after January 1, 2005 are subject to Code Section 409A. Any
inconsistency or ambiguity in this amended and restated Plan document is to be construed consistent
with this Section 1.04.

          As permitted by the Treasury Regulations promulgated under Code Section 409A and guidance
issued by the Internal Revenue Service, the Plan has been administered in compliance with
applicable guidance under Code Section 409A in effect after December 31, 2004 before the adoption
of this amended and restated Plan document.

SECTION 2.

DEFINITIONS

     The following words and terms, as used in this Plan, shall have the meanings set forth below,
unless a clearly different meaning is required by the context in which the word or phrase is used.

     2.01. Account. “Account” means the hypothetical record or bookkeeping entry maintained
by the Company reflecting each Participant’s deferrals, credited earnings and losses, Company
contributions, transfers from a Prior Plan and distributions under the Plan. The term “Account”
should not be construed as an actual segregation of assets for the benefit of any particular
Participant.

     2.02. Affiliated Company. “Affiliated Company” means any corporation while such
corporation is a member of the same controlled group of corporations (within the meaning of Code
section 414(b)) as DTE or any other employing entity while such entity is under common control
(within the meaning of Code section 414(c)) with DTE.

     2.03. Annual Cash Bonus. “Annual Cash Bonus” means the cash compensation payable in
the Plan Year under the DTE Energy Company Annual Incentive Plan, or any successor plan thereto,
after reduction for (i) any pre-tax deferrals under Code section 401(k), and (ii) any payroll
deduction for taxes or any other purpose.

     2.04. Base Salary. “Base Salary” means base salary payable after reduction for any
pre-tax deferrals under Code sections 125, 129 or 401(k) but prior to reduction for any payroll
deduction for taxes or any other purpose. “Base Salary” shall exclude any bonus, fringe benefit or
other form of remuneration.

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     2.05. Beneficiary. “Beneficiary” means the person, persons or entity designated in
writing by the Participant, on forms provided by the Company, to receive distribution of certain
death benefits payable under the Plan in the event of the Participant’s death.

     2.06. Board. “Board” means the Board of Directors of DTE.

     2.07. Cash Balance Plan. “Cash Balance Plan” means any cash balance defined benefit
plan maintained by the Company or an Affiliated Company which is intended to be qualified under
Code section 401(a); provided, however, that the MCN Traditional Option and the DTE Traditional
Option of the DTE Energy Company Retirement Plan shall be included in the definition of “Pension
Plan,” and not in the definition of “Cash Balance Plan.”

     2.08. Cash Compensation. “Cash Compensation” means Annual Cash Bonus or other cash
payments (other than Performance Share Awards payable in cash, which are defined in Section 2.28
“Performance Share Awards”) payable to a Participant.

     2.09. Code. “Code” means the Internal Revenue Code of 1986, as amended, and any
regulations issued thereunder. References to any section or subsection of the Code includes
reference to any comparable or succeeding provisions of any legislation which amends, supplements
or replaces such section or subsection.

     2.10. Committee. “Committee” means the Organization and Compensation Committee of the
Board. The Committee is responsible for the administration of the Plan and may delegate such
administrative responsibilities under this Plan.

     2.11. Company. “Company” means DTE Energy Company or its successors and assigns.

     2.12. Company’s Accountants. “Company’s Accountants” means the independent accountant
or accountants engaged by the Company and, if selected or changed following a Change in Control,
approved by the trustee of the trust established in accordance with Section 14.

     2.13. Company’s Actuaries. “Company’s Actuaries” means the independent actuary or
actuaries engaged by the Company and, if selected or changed following a Change in Control,
approved by the trustee of the trust established in accordance with Section 14.

     2.14. Contribution Subaccount. “Contribution Subaccount” means a hypothetical
bookkeeping record maintained by the Company to track the various allocations to a Participant’s
account. For purposes of this Plan, the balance in each Account shall be allocated among the
Annual Cash Bonus Subaccount, the Base Salary Subaccount (for Base Salary deferred prior to January
1, 2004), the Prior Plans Subaccount, and the Mandatory Deferral Subaccount (collectively, known as
the Contribution Subaccounts) as defined in Section 5 herein.

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     2.15. Deferral Election. “Deferral Election” means the deferral agreement described in
3.01(c) of the Plan.

     2.16. Deferral Period. “Deferral Period” means, with respect to each Deferral Year
Subaccount, the period beginning with the first day of the Deferral Year and ending upon the date
the Participant elected to receive or begin receiving a distribution of his entire Deferral Year
Subaccount under the Plan. The minimum length of time for a Deferral Period shall be two (2) years
or the period from the first day of the Deferral Year through the date of the Participant’s
termination for any reason, whichever is earlier. The Deferral Period for the Mandatory Deferral
Subaccount shall be through the date on which the Participant ceases to be a “covered employee” as
that term is defined in Code section 162(m)(3).

     2.17. Deferral Year. “Deferral Year” means the period during which compensation
subject to a Participant’s Deferral Election would have been paid in the absence of the Deferral
Election. Generally, the Deferral Year will be the Plan Year. Where a Participant first becomes
eligible to participate during a Plan Year, however, the Deferral Year begins upon the effective
date of the Participant’s initial Deferral Election.

     2.18. Deferral Year Subaccount. “Deferral Year Subaccount” means the bookkeeping
record maintained by the Company to separately track the allocations for each Deferral Year to each
of the Participant’s Contribution Subaccounts.

     2.19. DTE. “DTE” means DTE Energy Company or its successors and assigns.

     2.20. DTE Stock. “DTE Stock” means the common stock of DTE.

     2.21. Eligible Employee. “Eligible Employee” means any employee of the Company who
satisfies the eligibility requirements of Section 3 of the Plan.

     2.22. ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended, and any regulations issued thereunder. References to any section or subsection of ERISA
includes references to any comparable or succeeding provisions of any legislation which amends,
supplements or replaces such section or subsection.

     2.23. Fair Market Value. “Fair Market Value” on a given date means the average of the
high and low sale price for DTE Stock on that date (or, if there were no such sales on that date,
on the next most recent prior date on which there were such sales) as reported on the Composite
Tape if the DTE Stock is listed on the New York Stock Exchange (“NYSE”).

     2.24. FICA. “FICA” means the tax applied under the Federal Insurance Contributions Act
as set forth in Chapter 21, Subtitle C, of the Code, and any regulations issued thereunder.

     2.25. Participant. “Participant” means an Eligible Employee who has made a written
election on a properly executed Deferral Election to participate in the Plan.

4

 

     2.26. Participating Affiliated Company.. “Participating Affiliated Company” means any
Affiliated Company as defined in Section 2.02 who has elected to participate in the Plan.

     2.27 Pension Plan. “Pension Plan” means any defined benefit plan maintained by the
Company or an Affiliated Company, which is intended to be qualified under Code section 401(a).
“Pension Plan” includes the MCN Traditional Option and the DTE Traditional Option of the DTE Energy
Company Retirement Plan, but cash balance defined benefit plans shall otherwise be included in the
definition of “Cash Balance Plan,” and not in the definition of “Pension Plan.”

     2.28 Performance Share Award. “Performance Share Award” means the award under the SIP,
which before the beginning of the Deferral Period is determined to be otherwise payable in cash.

     2.29. Plan. “Plan” means the DTE Energy Company Executive Deferred Compensation Plan,
as described herein and as amended.

     2.30. Plan Year. “Plan Year” means, for the first year, the period beginning January
1, 2002, and ending December 31, 2002, and thereafter, the period beginning January 1 and ending
December 31 of each year.

     2.30A Post-2004 Subaccount. “Post-2004 Subaccount” means any Deferral Year Subaccount
attributable to a Deferral Year after 2004.

     2.30B Pre-2005 Subaccount. “Pre-2005 Subaccount” means any Deferral Year Subaccount
attributable to a Deferral Year before 2005.

     2.31. Prior Plan. “Prior Plan” means the MCN Energy Group Executive Deferred
Compensation Plan and/or the DTE Deferred Bonus Plan.

     2.32. Qualified Plan. “Qualified Plan” means any plan maintained by the Company or an
Affiliated Company, which is intended to be qualified under Code section 401(a).

     2.33. Savings Plan. “Savings Plan” means any defined contribution plan maintained by
the Company or an Affiliated Company, which is intended to be qualified under Code section 401(a).

     2.34. SIP. “SIP” means the DTE Energy 2001 Stock Incentive Plan as amended from time
to time.

     2.35. Spouse. “Spouse” means an individual who is legally married to a Participant
under the laws of the State in which the Participant resides, on the day immediately preceding the
Participant’s date of death.

5

 

     2.36. Subsidiary. “Subsidiary” means a corporation, partnership, joint venture,
limited liability company, unincorporated association or other entity in which the Company has a
direct or indirect ownership or other equity interest.

SECTION 3.

ELIGIBILITY AND PARTICIPATION

     3.01. Voluntary Participation by Eligible Employees. Each employee of the Company and
Participating Affiliated Companies who is included within a “select group of management or highly
compensated employees,” within the meaning of Title I of ERISA, may be eligible to participate in
accordance with the terms of the Plan.

          (a) Effective Date for Participation. Each employee of the Company and Participating
Affiliated Companies who is employed at the level of Director or above (or equivalent) and who is
designated as an Eligible Employee shall be eligible to participate in the Plan and make voluntary
elections to defer receipt of Cash Compensation and/or Performance Share Awards, effective as of
the later of (i) the date determined by the Vice President, Human Resources, or (ii) the date on
which the employee is formally notified of his eligibility to participate.

          (b) Determination of Eligible Employee Status. The Vice President, Human Resources
shall designate employees as Eligible Employees. The Vice President, Human Resources may revoke
such designation prior to any Plan Year with respect to the Eligible Employee’s ability to defer
future compensation payable by the Company or Participating Affiliated Company, provided, however,
that no such revocation shall adversely affect any amounts previously deferred by such Eligible
Employee under the Plan. Employees who were employed at the level of Director at MCN Energy Group
Inc. or one of its subsidiaries prior to June 1, 2001, but were not appointed to a level of
Director or above in the Staffing and Selection process during the second quarter of 2001 shall be
eligible to participate for the 2002 Plan year only; unless or until they are otherwise designated
as Eligible Employees.

          (c) Deferral Election. The Company shall provide a Deferral Election to each Eligible
Employee for each Plan Year in which deferrals are to be made, which shall set forth the Eligible
Employee’s election to defer a portion of his compensation, his agreement to be bound by the terms
of the Plan, and such other matters as are set forth in this Plan or deemed advisable by the
Committee. For each Deferral Year Subaccount, including such subaccounts, if any, under the
Qualified Plan Make-up Subaccount, the Participant shall specify in the Deferral Election a
Deferral Period of at least two (2) years and the method and timing of payment as described in
Section 6. Failure to submit an election for any Plan Year will preclude such Eligible Employee
from deferring any Cash Compensation or Performance Share Awards until the following Plan Year.

          (d) Mid-Year Participation. To the extent an employee is designated as an Eligible
Employee, and formally notified of his eligibility to participate in the Plan during a Plan Year,
the Eligible Employee must elect to participate within 30 days after the Participant is

6

 

notified of
his eligibility for the Plan. For Plan Years after 2004, the initial election by a new Eligible
Employee only applies to the portion of any Cash Compensation or Performance Share Awards earned
after the date of the initial election, determined by multiplying the Eligible
Employee’s Cash Compensation or Performance Share Awards by a fraction with a numerator equal
to the number of days remaining in the performance period after the date of the election and with a
denominator equal to the total number of days in the performance period. Failure to submit an
election during such 30-day period will preclude such Eligible Employee from deferring any Cash
Compensation or Performance Share Awards until the following Plan Year.

     3.02. Mandatory Participation by Covered Employees. The Organization and Compensation
Committee of the Board, or its designee, may require the deferral of compensation of any Eligible
Employee who is a “covered employee” as defined in Code section 162(m)(3) and the regulations
thereunder, to the extent that such compensation would not have been deductible in the year in
which such compensation would have been paid.

SECTION 4.

DEFERRALS AND CONTRIBUTIONS

     4.01. Deferral of Performance Share Awards.

          (a) Election To Defer. For Plan Years before 2005, each Eligible Employee may elect,
no later than October 31 of the year preceding the Plan Year in which Performance Shares would
otherwise be payable, to defer receipt of all or a portion of a Performance Share Award otherwise
payable in cash by filing with the Vice President, Human Resources the Deferral Election provided
by the Company.

          For Plan Years after 2004, each Eligible Employee may elect, no later than June 30 of the year
preceding the Plan Year in which Performance Shares would otherwise be payable, to defer receipt of
all or a portion of a Performance Share Award otherwise payable in cash by filing with the Vice
President, Human Resources the Deferral Election provided by the Company.

          (b) Deferral Amount. Each Eligible Employee may file a written election to defer the
receipt of a portion of a Performance Share Award in an amount not (i) less than one percent (1%),
nor (ii) in excess of one hundred percent (100%), less the applicable FICA on such amount, in one
percent (1%) increments, of the Performance Share Award otherwise payable in cash.

          (c) No Deferrals Permitted After December 31, 2006. No Eligible Employee may elect to
defer any Performance Shares payable after December 31, 2006.

Section 4.02
— Deferral of Base Salary deleted in its entirety effective January 1, 2004.

     4.03. Deferral of Annual Cash Bonus.

7

 

          (a) Election To Defer. For Plan Years before 2005, each Eligible Employee may file a
written election with the Vice President, Human Resources, no later than October 31 of
the year preceding the Plan Year in which his Annual Cash Bonus otherwise would be payable, to
defer receipt of all or a portion of his Annual Cash Bonus.

          For Plan Years after 2004, each Eligible Employee may file a written election with the Vice
President, Human Resources, no later than June 30 of the year preceding the Plan Year in which his
Annual Cash Bonus otherwise would be payable, to defer receipt of all or a portion of his Annual
Cash Bonus.

          (b) Deferral Amount. Each Eligible Employee may file a written election to defer the
receipt of his Annual Cash Bonus in an amount not (i) less than one percent (1%), nor (ii) in
excess of one hundred percent (100%), in one percent (1%) increments, less the applicable FICA on
such amount, of the amounts payable during the Plan Year to which the election pertains.

          (d) No Deferrals Permitted After December 31, 2006. No Eligible Employee may elect to
defer any Annual Cash Bonus payable after December 31, 2006.

     4.04. Restoration of Qualified Plan Benefits. Amounts intended to replace Qualified
Plan benefits (but not earnings) under the Cash Balance Plan, the Pension Plan, or the Savings Plan
which are reduced as a result of deferrals under Sections 4.01, 4.02, or 4.03 of this Plan will be
restored through a Qualified Plan Make-up Subaccount in the DTE Energy Company Supplemental
Retirement Plan.

     4.05. Mandatory Deferral. The Company may credit to the Participant’s Mandatory
Deferral Subaccount, on the date on which such compensation would otherwise have been payable,
amounts which would have been nondeductible under Code section 162(m) on the date on which such
compensation would otherwise be payable. The Deferral Period for the Mandatory Deferral Subaccount
shall be through the date on which the Participant ceases to be a “covered employee” as that term
is defined in Code section 162(m)(3). Any amounts in the Mandatory Deferral Subaccount shall be
paid in the form of a lump sum.

     4.06. Deferral of Prior Plan Balances.

          (a) Automatic Transfer. The Company shall credit to each Eligible Employee’s Prior
Plan Subaccount as of January 1, 2002 the amount credited to the Eligible Employee under the Prior
Plan as of December 31, 2001.

          (b) Election of Deferral Period. Each Eligible Employee whose balance in a Prior Plan
is transferred to this Plan pursuant to subsection (a) shall file a written election with the Vice
President, Human Resources, no later than October 31, 2001, specifying a Deferral Period of at
least two (2) years and the method and timing of payment as described in Section 6. If such
Eligible Employee fails to submit an election on or before October 31, 2001, the Prior Plan Account
shall be paid in a lump sum upon termination of employment. Amounts in pay status under the MCN
Energy Group Executive Deferred Compensation Play as of December 31,

8

 

2001, shall be payable on an annual basis, in arrears, rather than on a monthly basis, effective
January 1, 2002.

SECTION 5.

ACCOUNTS AND EARNINGS

     5.01. Establishment of Accounts. The Committee shall establish a hypothetical
bookkeeping Account for each Participant. Each Participant’s Account shall be divided into one or
more Contribution Subaccounts:

          (a) For Participants deferring Base Salary prior to January 1, 2004, a “Base Salary
Subaccount,”

          (b) For Participants deferring Annual Cash Bonus, an “Annual Cash Bonus Subaccount,”

          (c) For Participants whose Qualified Plan benefits are reduced because of their participation
in this Plan, a “Qualified Plan Make-up Subaccount” in the DTE Energy Company Supplemental
Retirement Plan,

          (d) For Participants deferring Performance Share Awards payable in cash, a “Performance Share
Subaccount,”

          (e) For Participants whose compensation would otherwise be nondeductible under Code section
162(m), a “Mandatory Deferral Subaccount,” and

          (f) For Participants whose balance from a Prior Plan has been transferred to this Plan, a
“Prior Plan Subaccount.”

In addition, each Contribution Subaccount shall be divided into one or more Deferral Year
Subaccounts, based on the Deferral Year of the contributions allocated to such Contribution
Subaccount. The Prior Plan Subaccount shall be deemed to consist of one Deferral Year only.

     5.02. Contribution Subaccounts.

          (a) Establishment of Contribution Subaccounts. A Participant’s Contribution Subaccount
shall be denominated on a monetary basis. The Committee shall cause each separate Contribution
Subaccount to be maintained in the name of each Participant with respect to whom all or a portion
of Base Salary (prior to January 1, 2004), Annual Cash Bonus, or Performance Share Awards has been
deferred, whose Qualified Plan benefits have been reduced because of his participation in this
Plan, whose compensation has been mandatorily deferred because of Code section 162(m), or whose
Prior Plan Balance has been transferred to this Plan.

          (b) Subsequent Credits. Each Participant’s Contribution Subaccount shall be credited
with amounts of Cash Compensation deferred by the Participant and by the Company

9

 

contributions
specified in Section 4.04, 4.05 and 4.06. Cash Compensation deferrals shall be credited on the date
such amounts would have otherwise been paid to the Participant. Company contributions shall be
credited on the dates specified in Section 4.04, 4.05 or 4.06.

          (c) Contribution Subaccounts Adjustments. Each Contribution Subaccount for any
Participant shall be credited with earnings and debited for losses as if such amounts were invested
in specific investment funds that reflect, as of a given date, the funds established under The DTE
Energy Company Savings and Stock Ownership Plan (the “Deemed Investments”) in which the
Participant’s new contributions are invested by percentage, taking into account changes among such
Deemed Investments made by the Participant, during the Deferral Period. Notwithstanding the
foregoing, the Committee may change available investment funds or override a Participant’s
investment election at any time.

     5.03. Election of Investment Options. Each Participant shall, by filing an election
with the Committee, in a format approved by the Committee, elect the investment options in which
each deferral amount is to be invested. Investment options available under the Plan and the
ability to change such investment election shall mirror those available under the Qualified Plan,
however, may be changed at the discretion of the Committee.

     5.04. No Requirement to Fund. The Company shall have sole discretion whether or not
to invest any of the Company’s funds (whether or not in trust) in a manner that reflects the Deemed
Investments or in any other manner. If and to the extent the Company chooses to invest in any
Deemed Investment, assets acquired by the Company shall remain the sole property of the Company,
subject to the claims of its general creditors, and shall not be deemed to form part of the
Participant’s Account. Nothing herein, however, shall preclude the Company from segregating assets
that are intended to be a source of payment of benefits from the Plan. The Company shall not be
required to fund its obligations in any manner and shall not be required to invest in any
particular investment, including any Deemed Investment fund. The Company may, without limitation,
purchase life insurance or any security or other property with respect to any or all of its
obligations under the Plan. Participants shall have no right, title or interest in any assets held
by the Company (or any trust) by reason of a Participant’s participation in this Plan.

SECTION 6.

FORM AND TIMING OF PAYMENT

     6.01. Distribution of Contribution Subaccount. The Company shall distribute each
Participant’s Contribution Subaccount in accordance with the Participant’s Deferral Election unless
the Plan provides otherwise. The distribution election with respect to each Deferral Year
Subaccount under the Participant’s Contribution Subaccount shall be made in accordance with the
following provisions.

          (a) Payment Election. Such Deferral Election shall provide for payment in either (i)
annual installments over a period not less than two years and not more than 15 years, in one-year
increments, or (ii) a lump sum distribution. If no Deferral Election is on file with

10

 

respect to
the Deferral Year Subaccount or no distribution option is indicated on the Deferral Election, the
Participant’s Deferral Year Subaccount shall be distributed in a single lump sum.

          (b) Timing of Distributions — Pre-2005 Subaccounts. A lump sum distribution shall be
made as of March 1 following the end of the Deferral Period or, if earlier, March 1 following the
end of the Plan Year in which the Participant’s employment terminated for any reason other than
death. If a Participant has elected to receive his distribution in annual installments, the first
installment shall be made as of March 1 following the end of the Deferral Period or, if earlier,
March 1 following the end of the Plan Year in which the Participant’s employment terminated for any
reason other than death. All subsequent annual installments shall be made on approximately the same
date each calendar year thereafter for the remainder of the distribution period. If no Deferral
Election is on file with respect to the Deferral Year Subaccount or no distribution option is
indicated on the Deferral Election, the Participant’s Deferral Year Subaccount shall be distributed
as of March 1 following the end of the Plan Year in which the Participant’s employment is
terminated for any reason other than death. Timing of a distribution due to a Participant’s death
shall be governed by Section 7.03.

          (c) Timing of Distributions — Post-2004 Subaccounts.

               (1) If a Deferral Period ends other than because of the Participant’s termination of
employment for any reason, or if the Deferral Period ends because the Participant’s employment
terminated for any reason other than death and the Participant is not a “specified employee” for
purposes of Code section 409A at the time the Participant’s employment terminated for any reason
other than death, a lump sum distribution or the first annual installment of a Participant’s
Post-2004 Subaccount shall be made on:

                    (A) January 1 following the end of the Deferral Period, if the Participant did not make any
election under Section 6.03(b)(2); or

                    (B) January 1 coincident with or next following the latest date to which distribution was
deferred by an election under Section 6.03(b)(2), if the Participant made one or more elections
under Section 6.03(b)(2).

               (2) If a Deferral Period ends because the Participant’s employment terminates for any reason
other than death and the Participant is a “specified employee” for purposes of Code section 409A at
the time the Participant’s employment terminates for any reason other than death, a lump sum
distribution or first annual installment of the Participant’s Post-2004 Subaccount will not be made
before the latest of:

                    (A) January 1 following the end of the Plan Year in which the Participant’s employment
terminated for a reason other than death, if the Participant did not make any election under
Section 6.03(b)(2); and

                    (B) January 1 coincident with or next following the latest date to which distribution was
deferred by an election under section 6.03(b)(2), if the Participant made one or more elections
under Section 6.03(b)(2); and

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                    (C) the earlier of:

                         (i) the first day of the calendar month beginning more than 6 months after the date the
Participant’s employment terminated for a reason other than death; and

                         (ii) the first day of the calendar month beginning after the Participant’s death.

          Subsequent annual installments of the Participant’s Post-2004 Subaccount shall be made each
following January 1 of the installment period.

     Timing of a distribution due to a Participant’s death shall be governed by Section 7.03.

     6.02. Form of Distributions.

          (a) Contribution Subaccounts

               (1) General Rule. Earnings and losses based on the Deemed Investments shall be
credited to each Deferral Year Subaccount under the Participant’s Contribution Subaccount through
December 31 of each Plan Year in which the Participant has a balance in such Deferral Year
Subaccount. The distribution to a Participant shall be paid in cash. Except as provided in Section
6.02(a)(2), the initial distribution shall be determined by dividing the value of the Participant’s
Contribution Subaccount, determined as of (i) December 31 of the last Plan Year ending with or
within the Deferral Period or, if earlier, on (ii) December 31 of the Plan Year in which the
Participant’s employment terminated, by the number of installment payments to be made. The amount
distributed to the Participant thereafter shall be recalculated each year to reflect changes in the
Deferral Year Subaccount balance through December 31 of such subsequent calendar year and the
remaining number of installment payments to be made.

               (2) Additional Rules for Post-2004 Subaccounts.

                    (A) An initial distribution delayed under Section 6.01(c)(2)(C) will be determined by dividing
the value of the Participant’s Post-2004 Subaccount determined as of the last day of the month
preceding the payment date, by the number of installment payments to be made.

                    (B) An initial distribution delayed under Section 6.01(c)(1)(B) or 6.01(c)(2)(B) will be
determined by dividing the value of the Participant’s Post-2004
Subaccount as of the December 31 preceding the payment date, by the number of installment
payments to be made.

          (b) Distribution of Small Amounts — Pre-2005 Subaccounts. Notwithstanding a
Participant’s payment option, if the portion of a Participant’s Contribution Subaccount
attributable to Pre-2005 Subaccounts is less than or equal to $10,000 as of any March 1 payment

12

 

date, that portion of the Participant’s Contribution Subaccount balance shall be paid in a single
lump sum.

          (c) Distribution of Small Amounts — Post-2004 Subaccounts. Notwithstanding a
Participant’s payment option, if the portion of a Participant’s Contribution Subaccount
attributable to Post-2004 Subaccounts is less than or equal to the dollar limit under Code Section
402(g) for the calendar year in which the Participant terminates employment, that portion of the
Participant’s Contribution Subaccount balance shall be paid in one lump sum to the extent permitted
by Code Section 409A and the related Treasury Regulations.

     6.03. Change In Distribution Option.

          (a) Pre-2005 Subaccounts. A Participant may change the distribution option previously
selected for a Pre-2005 Subaccount at any time while actively employed by submitting a revised
Deferral Election applicable to the Pre-2005 Subaccount to the Committee. A change in time or
manner of an in-service distribution must be made by the December 31 prior to the March 1 payment
date, and if the timing of such distribution is changed, the new deferral period must be for at
least two years after the then-current timing of the distribution.

          (b) Post-2004 Subaccounts.

               (1) Before January 1, 2009, a Participant may change the distribution option previously
selected for a Post-2004 Subaccount by filing a written election with the Committee before January
1, 2009 that satisfies both of the following:

                    (A) The Participant’s election does not defer to a date after December 31, 2008 any
distribution of a Post-2004 Subaccount otherwise required to be made before January 1, 2009; and

                    (B) The Participant’s election does not accelerate to a date before January 1, 2009 any
distribution of a Post-2004 Subaccount otherwise required to be made after December 31, 2008.

               (2) After December 31, 2008, a Participant may elect to change the distribution option
previously selected for a Post-2004 Subaccount by filing a written election with the Committee that
satisfies both of the following:

                    (A) The Participant’s election is filed with the Committee at least 12 months before the
earliest date on which the distribution of the Post-2004 Subaccount would begin under the
Participant’s then-current distribution election; and

                    (B) The Participant’s election designates that distribution of the Post-2004 Subaccount will
begin at least 5 years after the earliest date on which distribution of the Post-2004 Subaccount
would begin under the Participant’s then-current distribution election.

13

 

     6.04. Hardship Withdrawals. An active Participant may request, in writing to the Vice
President, Human Resources, a hardship withdrawal of all or part of his remaining Account which
will be paid within 30 days in a single lump sum. Such distribution shall be made only if the Vice
President, Human Resources determines that the Participant has an unforeseen emergency that
constitutes a severe financial hardship to the Participant resulting from a sudden and unexpected
illness or accident of the Participant or of a dependent (as defined in Code section 152(a)) of the
Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant.
Payment may not be made to the extent that such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise by liquidation of the Participant’s assets,
to the extent the liquidation of such assets would not itself cause severe financial hardship or by
cessation of deferrals under the Plan. The distribution shall be limited to the amount required to
meet the financial hardship. In making these determinations, the Vice President, Human Resources
shall utilize the regulations adopted under Code section 409A. Hardship distributions shall be
deducted from Contribution Subaccounts in the following order (i) the Annual Cash Bonus Subaccount;
and (ii) the Base Salary Subaccount. Within each Contribution Subaccount, Post-2004 Subaccounts
will be depleted first, and then the oldest Pre-2005 Subaccounts. If a Participant elects a
hardship withdrawal, any on-going deferral will not cease for the remainder of the Plan Year in
which the hardship withdrawal is elected, unless permitted by Code Section 409A. However, the
Participant will not again be designated as an Eligible Employee eligible to make additional
deferrals under the Plan until the enrollment period occurring at the end of the Plan Year
following the Plan Year in which the withdrawal was made.

     6.05. Unscheduled Withdrawals. A Participant or a former Participant receiving
distributions in annual installments is permitted to make unscheduled withdrawals from Pre-2005
Subaccounts as described below:

          (a) Election. A Participant may request in writing to the Vice President, Human
Resources, an unscheduled partial withdrawal or entire withdrawal of the amount credited to the
Participant’s Pre-2005 Subaccounts, including earnings, which will be paid within 30 days in a
single lump sum. A former Participant may request in writing to the Vice President, Human
Resources, an unscheduled partial withdrawal or entire withdrawal of the undistributed balance of
the former Participant’s Pre-2005 Subaccounts, which will be paid within 30 days in a single lump
sum.

          (b) Withdrawal Penalty. There will be a penalty deducted from the Pre-2005 Subaccount
prior to an unscheduled withdrawal equal to 10% of the Pre-2005 Subaccount
balance as of the date the unscheduled withdrawal request is received by the Vice President,
Human Resources.

          (c) Suspension of Deferrals. If a Participant elects an unscheduled withdrawal, any
deferrals elected by the Participant for the current Plan Year will not cease unless permitted by
Code Section 409A. However, the Participant will not be eligible to elect to again make deferrals
under the Plan until the second Plan Year beginning after the Plan Year in which the withdrawal was
made.

14

 

     6.06. Revocation of Designation as an Eligible Employee. A Participant whose
designation as an Eligible Employee is revoked prior to the Participant’s retirement, death,
termination or disability shall not be permitted to continue to make Deferrals under the Plan
subsequent to the date of such revocation. However, all monies that are in the Participant’s
subaccounts as of the date of revocation shall continue to be deferred in such subaccounts until
the Participant’s retirement, death, termination or disability.

     6.07. Distribution of Performance-Based Compensation. It is intended that deferrals of
amounts that would have constituted “qualified performance-based compensation,” within the meaning
of Code Section 162(m) and the regulations thereunder, if paid when earned shall continue to
constitute “qualified performance-based compensation” when distributed under this Plan. Amounts
deferred that would not have constituted “qualified performance-based compensation” if paid when
earned shall not constitute “qualified performance-based compensation” when distributed under this
Plan.

SECTION 7.

SELECTION OF AND PAYMENTS TO A BENEFICIARY

     7.01. Beneficiary Designation. A Participant shall designate a Beneficiary on a form
provided by the Vice President, Human Resources, or his or her designee, for the purpose of
designating a Beneficiary. If a Participant has not designated a Beneficiary, or if a designated
Beneficiary is not living or in existence at the time of a Participant’s death, any death benefits
payable under the Plan shall be paid to the Participant’s Spouse, if then living, and if the
Participant’s Spouse is not then living, to the Participant’s estate.

     7.02. Change in Beneficiary. A Participant may change the designated Beneficiary from
time to time by filing a new written designation with the Vice President, Human Resources, or his
or her designee. Such designation shall be effective upon receipt by the Vice President, Human
Resources, or his or her designee.

     7.03. Survivor Benefit. If a Participant dies with an Account balance under this Plan,
his Beneficiary shall be entitled to receive a distribution of the Participant’s Account. The
distribution shall be paid in a lump sum within ninety (90) days following the Participant’s death.

SECTION 8.

VESTING OF BENEFITS

     A Participant shall be 100 percent vested in his benefits under the Plan at all times, except
as set forth in Sections10.03 (relating to the right to accelerate payments) and 11.03 (relating to
failure of the Plan to maintain the designated ERISA exemptions). A Participant shall be treated as
an unsecured creditor of the Company for all benefits under the Plan.

15

 

SECTION 9.

TAX WITHHOLDING

     Deferrals hereunder shall be subject to applicable FICA withholding laws. Benefit payments
hereunder shall be subject to applicable federal, state and 1ocal tax withholding laws. A
Participant shall be responsible for making payment to DTE or a participating Affiliated Company,
as appropriate, in an amount equal to the FICA tax or income payroll tax withholdings on the Fair
Market Value of deferrals of or payments made in DTE Stock.

SECTION 10.

ADMINISTRATION OF THE PLAN

     10.01. Duties and Power. The Committee shall be the “named fiduciary” for the Plan
responsible for the general operation and administration of the Plan and the proper execution of
its provisions. It shall have full discretionary authority to interpret the Plan and to determine
the response to all questions arising from its provisions. It shall maintain all necessary books of
accounts and records. It shall have the full discretionary power and authority to establish,
interpret, enforce, amend, and revoke, from time to time, such rules and regulations for the
administration of the Plan and the conduct of its business as it deems appropriate, including the
right to remedy ambiguities, inconsistencies and omissions. Any action that the Committee is
required or authorized to take shall be final and binding upon each and every person who is or may
become a Plan Participant or Beneficiary. The Committee may delegate its authority to administer
the Plan.

     10.02. Benefit Statements. The Committee, or its designee, will provide each
Participant with a quarterly statement setting forth the Participant’s Account balance, and the
amount allocated to each Contribution Subaccount.

     10.03. Right to Accelerate. The Board in its sole discretion may accelerate all vested
benefits upon termination of the Plan, and pay such benefits in a single lump sum, but only to the
extent permitted by Code section 409A and the related Treasury Regulations with respect to
Post-2004 Subaccounts. If the Internal Revenue Service or the Committee determines that any
amounts in Participants’ Accounts are currently taxable, the Committee may direct immediate payment
of all or some Plan benefits attributable to Pre-2005 Subaccounts in a single lump sum or to take
any other action it deems appropriate. If the Internal Revenue Service determines that any
amounts in Participants’ Accounts are currently taxable, the Committee may direct immediate
payment in a single lump sum of any Post-2004 Subaccounts determined to be currently taxable. In
addition, Participants terminating employment with an Account balance attributable to Pre-2005
Subaccounts of less than $10,000 shall receive the Pre-2005 Subaccounts in a single lump sum
regardless of the distribution elections stated in their Deferral Election(s). Immediate
distribution of an Account Balance attributable to Post-2004 Subaccounts upon termination will be
made only as permitted by Code section 409A and the related Treasury Regulations, including any
distribution delay required for specified employees.

16

 

SECTION 11.

AMENDMENT, SUSPENSION, AND TERMINATION

     11.01. Right to Amend or Terminate. The Plan may be amended, modified or terminated by
the Board at any time. Such amendment, modification or termination may modify or eliminate any
benefit hereunder except that such amendment, modification or termination shall not affect the
rights of Participants or Beneficiaries to the vested portion of a Participant’s Account as of the
date of such amendment or termination.

     11.02. Right to Suspend. If the Board of Directors determines that payments under the
Plan would have a material adverse affect on the Company’s ability to carry on its business, the
Board of Directors may suspend payments of Pre-2005 Subaccounts temporarily for such time as in its
sole discretion it deems advisable, but in no event for a period in excess of one year. If the
Board of Directors determines that payments under the Plan will jeopardize the Company’s ability to
continue as a going concern, the Board of Directors may suspend payments of Post-2004 Subaccounts
until the first taxable year when payment will not have that effect. The Company shall pay such
suspended payments in a lump sum immediately upon the expiration of the period of suspension.

     11.03. Partial ERISA Exemption. The Plan is intended to provide benefits for “a select
group of management or highly compensated employees” within the meaning of sections 201, 301 and
401 of ERISA, and therefore to be exempt from sections 2, 3 and 4 of Title I of ERISA. Accordingly,
the Plan shall terminate and existing Account balances shall be paid in a single lump-sum (to the
extent permitted by Code section 409A and the related Treasury Regulations for Post-2004
Subaccounts) and no further benefits, vested or non-vested, shall be paid hereunder in the event it
is determined by a court of competent jurisdiction or by an opinion of counsel that the Plan
constitutes an employee pension benefit plan within the meaning of section 3(2) of ERISA which is
not so exempt.

SECTION 12.

MISCELLANEOUS

     12.01. Unfunded Plan. The Plan shall be unfunded within the meaning of sections
201(2), 301(a)(3) and 401(a)(1) ERISA. All benefits payable under the Plan shall be paid from the
Company’s general assets. The Company shall not be required to set aside or hold in trust any
funds for the benefit of a Participant or Beneficiary, each of whom shall have the status of a
general unsecured creditor with respect to the Company’s obligation to make benefit payments
pursuant to the Plan. Any assets of the Company available to pay Plan benefits shall be subject to
the claims of the Company’s general creditors and may be used by the Company in its sole discretion
for any purpose.

     12.02. No Right to Continued Employment. Nothing in the Plan shall create or be
construed as a contract between the Company or an Affiliated Company and employees for any matter
including giving any person employed by the Company or an Affiliated Company the

17

 

right to be
retained in the Company’s or an Affiliated Company’s employ. The Company and each Affiliated
Company expressly reserve the right to dismiss any person at any time, with or without cause,
without liability for the effect that such dismissal might have upon him as a Participant in the
Plan or for any other purpose.

     12.03. Prohibition Against Alienation. Except as otherwise provided in the Plan, no
right or benefit under the Plan shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, or charge, and any attempt to so anticipate, alienate,
sell, transfer, assign, pledge, encumber, or charge the same shall be void. No such right or
benefit shall be liable for or subject to the debts, contracts, liabilities, engagements, or torts
of the person entitled to such right or benefit.

     12.04. Savings Clause. If any provision of this Plan is held by a court of competent
jurisdiction to be invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision and the remaining provisions hereof shall continue to be construed and enforced
as if the invalid or unenforceable provision had not been included.

     12.05. Payment of Benefit of Incompetent. In the event the Committee finds that a
Participant, former Participant or Beneficiary is unable to care for his affairs because of his
minority, illness, accident, or other reason, any benefits payable hereunder may, unless other
claim has been made for the Participant’s benefit by a duly appointed guardian, committee or other
legal representative, be paid to a spouse, child, parent, or other blood relative or dependent or
to any person found by the Committee to have incurred expenses for the support and maintenance of
such Participant, former Participant, or Beneficiary; and any such payments so made shall be a
complete discharge of all liability for those benefits.

     12.06. Spouse’s Interest. The interest in the benefits hereunder of a Spouse who has
predeceased the Participant shall automatically pass to the Participant and shall not be
transferable by such Spouse in any manner including, but not limited to, such Spouse’s will, nor
shall such interest pass under the laws of intestate succession.

     12.07. Successors. In the event of any consolidation, merger, acquisition or
reorganization of the Company, the obligations of the Company and Participating Affiliated
Companies under this Plan shall continue and be binding upon the Company, Participating Affiliated
Companies and its successors.

     12.08. Gender, Number and Heading. Whenever any words are used herein in the masculine
gender, they shall be construed as though they were also used in the feminine gender in all cases
where they would so apply. Whenever any words used herein are in the singular form, they shall be
construed as though they were also used in the plural form in all cases where they would so apply.
Headings of sections and subsections as used herein are inserted solely for convenience and
reference and constitute no part of the Plan.

     12.09. Legal Fees and Expenses. The Company shall pay all reasonable legal fees and
expenses that a Participant may incur as a result of the Company contesting the validity,
enforceability, or the Participant’s interpretation of, or determinations under this Plan, other
than

18

 

Hardship Withdrawals under Section 6.04, Unscheduled Withdrawals under Section 6.05, and tax
withholding under Section 9.01.

     12.10. Choice of Law. This Plan shall be governed by and construed in accordance with
the laws of the State of Michigan, other than its choice-of-law rules, to the extent not superseded
by applicable federal statues or regulations.

     12.11. Affiliated Employees. Transfers of employment between Affiliated Companies and
the Company or other Affiliated Companies will be treated as continuous and uninterrupted service
under the Plan.

     12.12. Plan Document. This Plan document provides the final and exclusive statement of
the terms of the Plan. Unless otherwise authorized by the Board or its delegate, no amendment or
modification to this Plan shall be effective until reduced to writing and adopted pursuant to
Section 11.01. This document legally governs the operation of the Plan, and any claim of right or
entitlement under the Plan shall be determined solely in accordance with its provisions. To the
extent that there are any inconsistencies between the terms of any related materials and the terms
of this document, the terms of this document shall control and govern the operation of the Plan. No
other evidence, whether written or oral, shall be taken into account in determining the right of an
Eligible Employee, a Participant, or Beneficiary, as applicable, to any benefit of any type
provided under the Plan.

SECTION 13.

ARBITRATION

     In the event of any dispute, claim, or controversy (hereinafter referred to as a “Grievance”)
between a Participant who is eligible to elect to receive the benefits provided under this Plan and
the Company with respect to the payment of benefits to such Participant under this Plan, the
computation of benefits under this Plan, or any of the terms and conditions of this Plan, such
Grievance shall be resolved by arbitration in accordance with this Section 13.

          (a) Arbitration shall be the sole and exclusive remedy to redress any Grievance.

          (b) The arbitration decision shall be final and binding, and a judgment on the arbitration
award may be entered in any court of competent jurisdiction and enforcement may be had according to
its terms.

          (c) The arbitration shall be conducted by the American Arbitration Association in accordance
with the Federal Arbitration Act and the Employee Benefit Plan Claims Arbitration Rules of the
American Arbitration Association and reasonable expenses of the arbitrators and the American
Arbitration Association shall be borne by the Company.

          (d) The place of the arbitration shall be the offices of the American Arbitration Association
in the Detroit, Michigan Metropolitan area.

19

 

          (e) The arbitrator(s) shall not have the jurisdiction or authority to change any of the
provisions of this Plan by alteration of, addition to, or subtraction from the terms thereof. The
arbitrator(s)’ sole authority shall be to apply any terms and conditions of this Plan. Since
arbitration is the exclusive remedy with respect to any Grievance, no Participant eligible to
receive benefits provided under this Plan has the right to resort to any federal court, state
court, local court, or administrative agency concerning breaches of any terms and provisions
hereunder, and the decision of the arbitrator(s) shall be a complete defense to any suit, action,
or proceeding instituted in any federal court, state court, local court, or administrative agency
by such employee or the Company with respect to any Grievance which is arbitrable as herein set
forth.

          (f) The arbitration provisions shall, with respect to any Grievance, survive the termination
of this Plan.

SECTION 14.

CHANGE IN CONTROL PROVISIONS

     14.01. General. In the event of a Change in Control, as defined in Section 14.06,
then, notwithstanding any other provision of the Plan, the provisions of this Section 14 shall be
applicable and shall supersede any conflicting provisions of the Plan.

     14.02. Transfer to Rabbi Trust. The Company shall establish a trust (the “Rabbi
Trust”) that is intended to be an unfunded arrangement and not affect the status of the Plan as an
unfunded arrangement for purposes of Title I of ERISA. The terms of the Rabbi Trust shall provide
that, within seven (7) days of a Change in Control assets shall be transferred to the Rabbi Trust
in (i) an amount equal to each Participant’s Account balance as of the date of the Change in
Control, plus (ii) in the case of each Participant for whom no Pension Plan Make-Up described in
Section 4.04(b) has been credited to his or her Qualified Plan Make-Up Subaccount on or before the
date of the Change in Control, an amount equal to the Pension Plan Make-Up to which each such
Participant would be entitled on his or her Normal Retirement Date under each applicable Pension
Plan, assuming service through his or her Normal Retirement Date under the applicable Pension Plan
and assuming annual Base Salary increases for the Participant of 5%, all as
determined by the Company’s Actuaries; plus (iii) an amount deemed necessary to pay estimated
Rabbi Trust administrative expenses for the following five (5) years, as determined by the
Company’s Accountants. Assets transferred in accordance with the preceding sentence shall either be
(i) in the form of shares of the Deemed Investments and/or DTE Stock equal to the number of shares
of each such Deemed Investment and DTE Stock in which the Participant’s Contribution Subaccount is
deemed to be invested for bookkeeping purposes on the date of the Change in Control or (ii) in the
form of in cash, in which case an additional cash transfer shall be made, prior to the initial
investment of cash by the trustee of the Rabbi Trustee in DTE Stock or any Deemed Investment, in an
amount sufficient to permit the trustee of the Rabbi Trust to invest in the number of shares of
each Deemed Investment and DTE Stock in which the Participant’s Contribution Subaccount was deemed
to be invested for bookkeeping purposes on the date of the Change in Control (as adjusted for any
subsequent share splits, consolidations, etc.). The

20

 

Company and/or an Affiliated Company shall
make all transfers of assets required by the Rabbi Trust in a timely manner and shall otherwise
abide by the terms of the Rabbi Trust.

     14.03. Lump Sum Payments. In connection with a Change in Control or consummation of a
transaction constituting a Change in Control, the Chairman of DTE Energy Company shall have the
absolute discretion to direct that a lump sum payment be made to a Participant up to the total
value of such Participant’s Pre-2005 Subaccounts if such payment will reduce the amount of any
potential excise tax imposed by Code section 4999.

     14.04. Joint and Several Liability. Upon and at all times after a Change in Control,
the liability under the Plan of the Company and each Affiliated Employer that has adopted the Plan
shall be joint and several so that the Company and each such Affiliated Employer shall each be
liable for all obligations under the Plan to each employee covered by the Plan, regardless of the
corporation by which such employee is employed.

     14.05. Dispute Procedures. In the event that, upon or at any time subsequent to a
Change in Control, a disputed claim for benefits under the Plan is brought by a Participant or
beneficiary, the following additional procedures shall be applicable:

          (a) Any amount that is not in dispute shall be paid to the Participant or beneficiary at the
time or times provided herein.

          (b) The Company shall advance to such claimant from time to time such amounts as shall be
required to reimburse the claimant for reasonable legal fees, costs and expenses incurred by such
claimant in seeking a judicial resolution of his or her claim, including reasonable fees, costs and
expenses relating to arbitration.

     14.06. Definition of Change in Control. A “Change in Control” means the occurrence
of any one of the following events:

          (a) individuals who, on December 31, 2001, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to December 31, 2001, whose election
or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors
then on the Board (either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director, without written objection to such
nomination) shall be an Incumbent Director; provided, however, that no individual
initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with respect to directors or as a
result of any other actual or threatened solicitation of proxies [or consents] by or on behalf of
any person other than the Board shall be deemed to be an Incumbent Director;

          (b) any “person” (as such term is defined in Section 3(a)(9) of the Exchange Act and as used
in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of

21

 

securities of the Company
representing 20% or more of the combined voting power of the Company’s then outstanding securities
eligible to vote for the election of the Board (the “Company Voting Securities”); provided,
however, that the event described in this paragraph (b) shall not be deemed to be a Change
in Control by virtue of any of the following acquisitions: (A) by the Company or any Subsidiary,
(B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such
securities, (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (c)), or (E) a
transaction (other than one described in (c) below) in which Company Voting Securities are acquired
from the Company, if a majority of the Incumbent Directors approve a resolution providing expressly
that the acquisition pursuant to this clause (E) does not constitute a Change in Control under this
paragraph (b);

          (c) the consummation of a merger, consolidation, statutory share exchange or similar form of
corporate transaction involving the Company or any of its Subsidiaries (a “Business Combination”)
or sale or other disposition of all or substantially all of the Company’s assets to an entity that
is not an affiliate of the Company (a “Sale”), unless immediately following such Business
Combination or Sale: (A) more than 50% of the total voting power of (x) the corporation resulting
from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate
parent corporation that directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Company Voting Securities that were outstanding immediately prior to such Business
Combination (or, if applicable, is represented by shares into which such Company Voting Securities
were converted pursuant to such Business Combination), and such voting power among the holders
thereof is in substantially the same proportion as the voting power of such Company Voting
Securities among the holders thereof immediately prior to the Business Combination, (B) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving
Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly,
of 20% or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) and (C) at least a majority of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Business Combination were Incumbent
Directors at the time of the Board’s approval of the execution of the initial agreement providing
for such Business Combination (any Business Combination which satisfies all of the criteria
specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

          (d) the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company.

     Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to occur
solely because any person acquires beneficial ownership of more than 20% of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the Company which reduces
the number of Company Voting Securities outstanding; provided, that if after such
acquisition by the Company such person becomes the beneficial owner of additional

22

 

Company Voting
Securities that increases the percentage of outstanding Company Voting Securities beneficially
owned by such person, a Change in Control of the Company shall then occur.

     IN WITNESS WHEREOF, DTE Energy Company has caused this amended and restated Plan to be
executed as of this 5th day of December, 2008.

	 	 	 	 	 
	 	DTE Energy Company

 	 
	 	By:  	/s/ Larry E. Steward
 	 
	 	 	     Larry E. Steward 	 
	 	 	     Vice President, Human Resources 	 
	 

23EX-10.79

Exhibit 10-79

DTE ENERGY COMPANY

PLAN FOR DEFERRING THE PAYMENT OF DIRECTORS’ FEES

(As Amended And Restated Effective As Of January 1, 2005)

The DTE Energy Company Plan for Deferring the Payment of Directors’ Fees (the “Plan”) was
originally established by DTE Energy Company (the “Company”) effective as of January 1, 1996. The
Plan was previously amended and restated, effective as of January 1, 1999, to merge The Detroit
Edison Company Plan for Deferring the Payment of Directors’ Fees (the “DECO Plan”) heretofore
maintained by the Detroit Edison Company (“DECO”) into the Plan as so amended and restated. This
amendment and restatement of the Plan is effective January 1, 2005, unless another effective date
is specified for a particular Plan provision.

The Plan is being amended and restated effective January 1, 2005 to comply with the requirements of
Code Section 409A exclusively with respect to benefits accrued and vested after December 31, 2004.
It is intended that all Plan benefits accrued and vested as of December 31, 2004 are not subject to
Code Section 409A. Only Plan benefits accrued and vested after January 1, 2005 are subject to Code
Section 409A. Any inconsistency or ambiguity in this amended and restated Plan document is to be
construed consistent with this paragraph.

As permitted by the Treasury Regulations promulgated under Code Section 409A and guidance issued by
the Internal Revenue Service, the Plan has been administered in compliance with applicable guidance
under Code Section 409A in effect after December 31, 2004 before the adoption of this amended and
restated Plan document.

SECTION I PURPOSE

The purpose of the Plan is to enable each Director (as defined below) to defer all or a portion of
his or her fees for future services as a member of the Board of Directors or as a member of any
Committee thereof.

SECTION II ELIGIBILITY

Any Director of the Company who is not a Company employee or an employee of any Affiliate (a
“Director”) shall be eligible to participate in the Plan. For purposes of the Plan, “Affiliate”
shall mean any entity in which the Company directly or indirectly beneficially owns more than 50%
of the voting securities.

SECTION III ELECTION, MODIFICATION, AND TERMINATION PROCEDURES

Any Director wishing to participate in the Plan must file with the Company a written Notice of
Election on the form provided by the Company to defer payment of all or a portion of his or her
Director’s fees payable in cash. An election to participate in the Plan must be made prior to the
beginning of the calendar year for which fees are payable and must be irrevocable for all fees
payable in that calendar year. In. addition, with respect to any Director who had a deferred
Director’s fee account under the DECO Plan as of December 31, 1998, effective beginning

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January 1,
1999, any Notice of Election filed by such Director under the DECO Plan shall be deemed to have
been made under and shall be subject to the terms and conditions of this Plan as if it had been
made hereunder. An effective election with respect to Directors’ fees that have been deferred under
the terms of this Plan or DECO Plan and fees that have already been earned may not be modified or
revoked. An effective election with regard to fees that have not been deferred or earned may be
modified by filing a new Notice of Election or may be terminated by filing a Notice of Termination
on the form provided by the Company. Any new Notice of Election or Notice of Termination becomes
effective as of the first day of the calendar year beginning after the Notice of Election or Notice
of Termination is filed. A Director who shall have terminated an effective election may thereafter
file a new election to be effective as of the beginning of a subsequent calendar year.

Code §409A requires deferral election to be irrevocable for entire calendar year

SECTION IV ESTABLISHMENT AND ADMINISTRATION OF DEFERRED DIRECTORS’ FEE ACCOUNT

(A) The amount of any Director’s fees deferred in accordance with an election, including effective
January 1, 1999, the deferred Director’s fee account balance under the DECO Plan transferred to
this Plan by merger effective January 1, 1999, shall be credited to a deferred Director’s fee
account maintained by the Company, which account shall be divided into sub accounts to specifically
identify the portion of the account subject to adjustment under Section IV(C)(2) (“Subaccount I”)
and the portion of the account subject to adjustment under Section IV(C)(3) (“Subaccount II”). Such
account shall remain a part of the general funds of the Company and DECO, and nothing contained in
this Plan shall be deemed to create a trust or fund of any kind or create any fiduciary
relationship.

(B) Subaccount I and Subaccount II of each deferred Director’s fee account is further divided into
two subaccounts:

(1) The “Pre-2005 Subaccount” is the portion of a deferred Director’s fee Subaccount I or
Subaccount II attributable to fees deferred under Section III before January 1, 2005, and
adjustments to the deferred Director’s fee Subaccount I or Subaccount II made under this
Section IV attributable to the fees deferred before January 1, 2005.

(2) The “Post-2004 Subaccount” is the portion of a deferred Director’s fee Subaccount I or
Subaccount II account attributable to fees deferred under Section III after December 31,
2004, and adjustments to the deferred Director’s fee Subaccount I or Subaccount II made
under this Section IV attributable to the fees deferred after December 31, 2004.

(C) As of the last day of each month for each Director participating in this Plan and until all
amounts in a deferred Director’s fee account are distributed to the Director, the deferred
Director’s fee account for such Director shall be adjusted as follows:

(1) The account and applicable Sub accounts thereof shall first be charged with any
distributions made during the month and effective as of January 1, 1999 the account and

- 2 -

 

applicable Subaccounts thereof shall be credited with .any transfer to the Plan of the
deferred Director’s fee account balance from the DECO Plan effective as of such date.

(2) The account balance in Subaccount I shall then be credited with interest for that month.
Such interest shall be computed by multiplying the applicable portion of the account balance
in Subaccount I after the adjustment provided for in Subsection (1) but before the
adjustments provided for in Subsections (4) and (5) of this Section IV by a fraction, the
numerator of which is the 5-Year United States Treasury Bond rate as of the last business
day of each month, and the denominator of which is 12.

(3) The account balance in Subaccount II shall then be adjusted to reflect the number of
hypothetical shares of Company Common Stock allocated to Subaccount II as of such date. The
number of hypothetical shares of Company Common Stock allocated to Subaccount II as of any
date shall be equal to the number of shares of Company Common Stock that would be allocated
to Subaccount II as of such date if (i) the deferred Director’s fees to be credited to the
Director’s account for allocation to Subaccount II were invested in the Company Common Stock
at Fair Market Value (as defined below) on the trading day that is coincident with or next
following the day the amount is to be credited to the account, (ii) any balance transferred
from Subaccount I due to a change in election under Section V were invested in the Company
Common Stock at Fair Market Value on the trading day that is coincident with or next
following the effective date of such change, (iii) cash dividends on the shares of Company
Common Stock treated as allocated to Subaccount II were automatically reinvested in the
Company Common Stock at Fair Market Value on the trading day that is coincident with or next
following the applicable dividend payment date, and (v) any transfers to Subaccount I due to
a change in election under Section V or any cash distributions from Subaccount II Account
were made at Fair Market Value on the trading day that is coincident with or next preceding
the effective date of such change of election or distribution of the number of hypothetical
            shares of Company Common Stock needed to make such transfer or distribution, which
hypothetical shares shall be subtracted from the number of shares treated as allocated to
Subaccount II of the Participant’s Account as of the effective date of the transfer or
distribution. In the event of any stock dividend or split, recapitalization,
reclassification, increase or decrease in the number of outstanding shares, merger,
consolidation or exchanges in shares or other similar changes in the Company’s Common Stock,
appropriate adjustments shall be made in the hypothetical shares of Company Common Stock
allocated to each Director’s Subaccount II to reflect any such change. For purposes of the
Plan, “Fair Market Value” means, before January 1, 2009, the average of the high and low
sales prices of Company Common Stock, or, after December 31, 2008, the closing sales price
of Company Common Stock on the New York Stock Exchange (or any exchange on which Company
Common Stock is listed if at any time Company Common Stock is not listed on the New York
Stock Exchange) on a specified date.

(4) Next, the account shall be credited with the amount, if any, of Director’s fees deferred
during that month, which amount shall be allocated to Subaccount I and
Subaccount II in accordance with the Director’s election or deemed election under Section V
as in effect as of such date.

- 3 -

 

(5) Finally, the amount of any transfer to or from Subaccount I or Subaccount II of the
account, pursuant to a change in election or deemed election under Section V, made as of
such date shall be added to or subtracted from, as the case may be, the applicable
Subaccounts.

A separate record of deferred Director’s fees and adjustments thereto, identified to the
participant’s Pre-2005 Subaccount and the participant’s Post-2004 Subaccount, shall be maintained
by the Company for each participant in this Plan.

SECTION V ELECTION OF ACCOUNT EARNINGS ADJUSTMENTS

At the time a Director elects to participate in the Plan or as of January 1, 1999, if later, the
Director shall elect by filing a notice with the Corporate Secretary of the Company to have
Director fees thereafter deferred under the terms of the Plan allocated, in specified multiples of
10%, to Subaccount I or Subaccount II of the deferred Director’s fee account. If a Director who is
participating in the Plan or the DECO Plan as of December 31, 1998 fails to make an election
hereunder as of January 1, 1999, he or she will be deemed to have elected to have Director’s fees
deferred on or after January 1, 1999 allocated to Subaccount 1. In addition, if a Director is
participating in the Plan or the DECO Plan as of December 31, 1998, the Director will be deemed to
have elected to have his or her deferred Director’s fee account balances as of December 31, 1998
allocated to Subaccount I effective as of January 1, 1999 unless the Director changes such deemed
election as hereinafter provided in this Section V. A Director’s election or deemed election under
this Section V shall remain in effect until changed as hereinafter provided in this Section V.

A Director may change his or her election or deemed election under this Section V effective as of
the last day of any month beginning on or after January 1,1999 (or effective as of January 1, 1999
if the Director has a deferred Director’s fee account balance under the Plan or the DECO Plan as of
December 31, 1998), by filing with the Corporate Secretary of the Company written notice of such
change at least 14 days (or by such other date as the Corporate Secretary of the Company shall
prescribe) prior to the effective date of such change. Any change shall direct that either or both
of (a) that the balance credited to Subaccount I or Subaccount II of the deferred Director’s fee
account as of such date (determined before the adjustment in Subsection (e) of Article IV) be
transferred, in specified multiples of 10%, to the other Subaccount or (b) subsequent Director’s
fees deferred under the terms of the Plan be allocated, in specified multiples of 10%, to
Subaccount I or Subaccount II. Such change shall be effective as of the date elected and shall
remain in effect until further changed as provided herein.

Any election or change in election under this Section V shall be made on the forms provided by the
Company.

SECTION VI PAYMENT OF DEFERRED DIRECTORS’ FEES

Deferred fees shall be paid to a Director or, in the event of death, to his or her designated
beneficiary in accordance with the Notice of Election and Beneficiary Designation forms that have
been filed with the Corporate Secretary of the Company. Payment shall be made in cash.

- 4 -

 

The amount
of any payment from Subaccount I will be based on the value of Subaccount I determined as of the
date of payment. The amount of any payment from Subaccount II of a deferred Director’s fee account
shall be made at Fair Market Value on the trading day that is coincident with or next preceding the
effective date of payment. If a Director elects to receive payment of his or her deferred fees in
installments rather than in a lump sum, the payment period shall not exceed ten years following the
payment commencement date. The amount of any installment payment shall be determined by multiplying
the Director’s unpaid account balance on the date of such installment by a fraction, the numerator
of which is one and the denominator of which is the number of remaining unpaid installments. Such
balance shall be appropriately reduced to reflect the installment payments made hereunder which
shall be made prorata from Subaccounts I and ll.

SECTION VII WHEN PAYMENT OF DEFERRED DIRECTORS’ FEES COMMENCES

	(A)	 	Pre-2005 Subaccount.

(1) The payment in a lump sum or installments of amounts in a Director’s Pre-2005 Subaccount
deferred pursuant to an election under this Plan shall commence on January 15 of the first
year to which payment has been deferred and shall be paid in accordance with the terms of
such election. If a Director shall die prior to the first year to which payment has been
deferred, such payment shall commence on January 15 of the calendar year immediately
following the year of death and shall be paid in the manner specified in such election.

(2) In the event a participating Director receives an assessment of income taxes from the
Internal Revenue Service which treats any amount payable under this Plan from the Director’s
Pre-2005 Subaccount as being includible in such Director’s gross income prior to the actual
payment of such amount to such Director, the Company shall pay an amount equal to such
income taxes to such Director from the Director’s Pre-2005 Subaccount within 30 days after
written notice from such Director of such assessment, and such Director’s fee account shall
be reduced prorata from the Director’s Pre-2005 Subaccounts in Subaccounts I and II by an
amount equal to such income taxes.

(3) Each payment under this Plan from the Director’s Pre-2005 Subaccount shall be reduced by
any federal, state, or local taxes which the Company determines should be withheld from such
payment.

(4) Benefits under this Plan shall be payable solely from the general assets of the Company
and, with respect to amounts attributable to DECO, of DECO, as the case maybe, provided,
however, that no provision in this Plan shall preclude the Company or
DECO from segregating assets which are intended to be a source for payment of benefits under
this Plan. Each participant in this Plan shall have the status of a general unsecured
creditor of the Company and of DECO. This Plan constitutes a promise by the Company and DECO
to make benefit payments in the future. It is intended that this Plan be

- 5 -

 

unfunded for tax
purposes and that this Plan shall remain unfunded for the entire period of its existence.

(5) Notwithstanding the foregoing or anything to the contrary in the Plan, the distribution
of all or any portion of a deferred Director’s fee Pre-2005 Subaccount will be delayed for a
period not to exceed seven months or may be subject to prior approval by the Board to the
extent that the Corporate Governance Committee of the Board of Directors of the Company
determines that such delay or approval is necessary or desirable to ensure that any
distribution from the Director’s Pre-2005 Subaccount under the Plan will qualify for an
exemption from the liability provisions imposed on the Director under Section 16(b) of the
Securities Exchange Act of 1934, as amended, or any rules and regulations issued thereunder.
In the event of any such delay, the undistributed portion of the deferred Director’s fee
Pre-2005 Subaccount shall continue to be subject to adjustment as provided in Section IV
until distribution is made.

	(B)	 	Post-2004 Subaccount:

(1) The default deferral period for fees deferred in each calendar year after December 31,
2004 and before January 1, 2009 is to January 1st of the second calendar year
beginning after the calendar year in which the fees were otherwise payable. A Director is
permitted to elect a different deferral period in the Notice of Election submitted by the
Director applicable to fees deferred in a specific calendar year. The default form of
distribution for fees deferred after December 31, 2004 and before January 1, 2009 is a
single lump sum payable on the date the deferral period ends. A Director is permitted to
elect distribution in the form of annual installments over a period of two to 10 years in
the Notice of Election submitted by the Director applicable to fees deferred in a specific
calendar year.

(2) A Director who first becomes a participant in the Plan before January 1, 2009 may elect
to change the deferral period for the entire portion of the Director’s Post-2004 Subaccount
attributable to fees deferred in calendar years after December 31, 2004 and before January
1, 2009 to:

(a) January 1, 2009; or

(b) the date the Director’s service on the Board terminates.

If a Director elects to change to January 1, 2009 the deferral period for the entire portion
of the Director’s Post-2004 Subaccount attributable to fees deferred in calendar years after
December 31, 2004 and before January 1, 2009, the distribution will be made in a single lump
sum payable on the last day of the deferral period. No other forms of distribution are
available.

If a Director elects to change the deferral period for the Director’s Post-2004 Subaccount
attributable to fees deferred in calendar years after December 31, 2004 and before January
1, 2009 to the date the Director’s service on the Board terminates, the Director

- 6 -

 

may also
elect to change the form of distribution from a single lump sum payable on the last day of
the deferral period to annual installments over a period of two to 10 years.

A Director who wishes to change the deferral period or the form of distribution for fees
deferred in calendar years after December 31, 2004 and before January 1, 2009 must file a
written election with the Company before January 1, 2009 that satisfies both of the
following:

(a) The Director’s election does not defer to a date after December 31, 2008 any
distribution of the Post-2004 Subaccount otherwise required to be made before
January 1, 2009; and

(b) The Director’s election does not accelerate to a date before January 1, 2009 any
distribution of the Post-2004 Subaccount otherwise required to be made after
December 31, 2008.

(3) The deferral period for fees deferred after December 31, 2008 ends on the date the
Director’s service on the Board terminates. No other deferral period is permitted for fees
deferred after December 31, 2008. The default form of distribution for fees deferred after
December 31, 2008 is a single lump sum payable on the January 15th following the
date the deferral period ends.

(4) A Director may elect in writing, at the time the Director first elects to defer fees
payable for a calendar year after 2008, to change the form of distribution for the entire
portion of the Director’s Post-2004 Subaccount attributable to fees deferred after December
31, 2008 from a single lump sum on the January 15th following date the deferral
period ends to annual installments for a period of two to 10 years, with the first
installment paid on the January 15th following the date the deferral period ends.
The Director’s initial election of a form of distribution (whether by the Director’s
affirmative election under this Section B(4) or by application of the default form under
Section (B)(3)) will apply to all fees deferred by the Director after December 31, 2008
unless changed as permitted in this Section V.

(5) After December 31, 2008, a Director may elect to change the form of distribution
previously elected for the entire portion of the Director’s Post-2004 Subaccount
attributable to fees deferred after December 31, 2008 and subject to a deferral period
ending on the date the Director’s service on the Board terminates by filing a written
election with the Company that satisfies both of the following:

(a) The Director’s election is filed with the Company at least 12 months before the
earliest date on which the distribution of that portion of the Director’s
Post-2004 Subaccount would begin under the Director’s then-current distribution
election; and

(b) The Director’s election extends the deferral period for that portion of the
Post-2004 Subaccount to at least 5 years after the earliest date on which

- 7 -

 

distribution of that portion of the Post-2004 Subaccount would begin under the
Director’s then-current distribution election.

The Director may elect distribution in a single lump sum or in annual installments over a
period of two to 10 years. No other forms of distribution are permitted.

After December 31, 2008, a Director may not elect to change the deferral period or form of
distribution for any fees deferred before January 1, 2009.

(6) For purposes of the Plan, a Director’s service on the Board terminates as of the date
specified by the Company in the Company’s required filing with U.S. Securities and Exchange
Commission.

(7) If a Director receives an assessment of income taxes from the Internal Revenue Service
that treats any amount payable under this Plan from the Director’s Post-2004 Subaccount as
being includible in the Director’s gross income before the actual payment of the amount to
the Director, the Company will distribute from the Director’s Post-2004 Subaccount an amount
equal to the income taxes to the Director within 30 days after the Company receives written
notice from the Director of the assessment. The Director’s Post-2004 Subaccount will be
reduced by the amount distributed to the Director under this Section B(7) of this Article V.

(8) Each payment under this Plan will be reduced by any federal, state, or local taxes the
Company determines should be withheld.

(9) Benefits under this Plan are payable solely from the general assets of the Company.
However, no provision in this Plan precludes the Company from segregating assets which are
intended to be a source for payment of benefits under this Plan. Each participant in this
Plan has the status of a general unsecured creditor of the Company. This Plan constitutes a
promise by the Company to make benefit payments in the future. It is intended that this Plan
be unfunded for tax purposes and that this Plan remain unfunded for the entire period of its
existence.

(10) Notwithstanding the foregoing or anything to the contrary in the Plan, the distribution
of all or any portion of a Director’s Post-2004 Subaccount will be delayed if the Corporate
Governance Committee of the Board of Directors of the Company determines that the delay is
necessary to ensure that the distribution will not violate Federal securities laws or other
applicable laws. In the event of any delay, the undistributed portion of the Director’s
Post-2004 Subaccount will continue to be subject to adjustment as provided in Section IV
until distribution is made. The distribution will be made at the earliest date at which the
Corporate Governance Committee reasonably
anticipates that making the distribution will not cause a violation of Federal securities
laws or other applicable laws.

- 8 -

 

SECTION VIII DESIGNATION OF BENEFICIARY

Each Director, on becoming a participant, shall file with the Corporate Secretary of the Company a
beneficiary designation on the form provided by the Company designating one or more beneficiaries
to whom payments otherwise due the participant shall be made in the event of his or her death while
serving as a Director or after leaving the Board. A beneficiary designation will be effective only
if the signed beneficiary designation form is filed with the Corporate Secretary of the Company
when the Director is alive, and will cancel all beneficiary designations signed and filed
previously under this Plan. If the primary beneficiary shall survive the Director but dies before
receiving all the amounts due hereunder, the deferred amounts remaining unpaid at the time of death
shall be paid in one lump sum to the legal representative of the primary beneficiary’s estate. If
the primary beneficiary shall predecease the Director, amounts remaining unpaid at the time of the
Director’s death shall be paid in the order specified by the Director to the contingent
beneficiary(s) surviving the Director. If the contingent beneficiary(s) dies before receiving all
the amounts due hereunder, the unpaid amount shall be paid in one lump sum to the legal
representative of such contingent beneficiary(s) estate. If the Director shall fail to designate a
beneficiary(s) as provided in this Section, or if all designated beneficiaries shall predecease the
Director, the deferred amounts remaining unpaid at the time of such Director’s death shall be paid
in one lump sum to the legal representative of the Director’s estate.

SECTION IX NON-ALIENABILITY AND NON-TRANSFERABILITY

No Director, beneficiary designated by the Director, or creditors of the Director shall have any
right to, directly or indirectly, anticipate, alienate, sell, transfer, assign, pledge, encumber,
attach, or garnish any amount that is or may be payable hereunder.

SECTION X ADMINISTRATION OF PLAN; ARBITRATION

(A) Full power and authority to construe, interpret, and administer the Plan shall be vested in the
Corporate Governance Committee of the Board of Directors of the Company. Decisions of the Corporate
Governance Committee shall be final, conclusive, and binding upon all parties.

(B) Notwithstanding Section X(a) hereof, in the event of any dispute, claim, or controversy
(hereinafter referred to as a “Grievance”) between a Director who is eligible to elect to receive
the benefits provided under this Plan and the Company with respect to the payment of benefits to
such Director under this Plan, the computation of benefits under this Plan, or any of the terms and
conditions of this Plan, such Grievance shall be resolved by arbitration in accordance with this
Section (b).

(1) Arbitration shall be the sole and exclusive remedy to redress any Grievance.

(2) The arbitration decision shall be final and binding, and a judgment on the arbitration
award may be entered in any court of competent jurisdiction and enforcement may be had
according to its terms.

- 9 -

 

(3) The arbitration shall be conducted by the American Arbitration Association in accordance
with the Commercial Arbitration Rules of the American Arbitration Association and expenses
of the arbitrators and the American Arbitration Association shall be borne by the Company.
Neither the Company nor such Director shall be entitled to attorneys’ fees, expert witness
fees, or other expenses expended in the course of such arbitration or the enforcement of any
award rendered thereunder.

(4) The place of the arbitration shall be the offices of the American Arbitration
Association in the Detroit Metropolitan area, Michigan.

(5) The arbitrator(s) shall not have the jurisdiction or authority to change any of the
provisions of this Plan by alteration of, addition to, or subtraction from the terms
thereof. The arbitrator(s)’ sole authority shall be to apply any terms and conditions of
this Plan. Since arbitration is the exclusive remedy with respect to any Grievance, no
Director eligible to receive benefits provided under this Plan has the right to resort to
any federal court, state court, local court, or administrative agency concerning breaches of
any terms and provisions hereunder, and the decision of the arbitrator(s) shall be a
complete defense to any suit, action, or proceeding instituted in any federal court, state
court, local court or administrative agency by such Director or the Company with respect to
any Grievance which is arbitrable as herein set forth.

(6) The arbitration provisions shall, with respect to any Grievance, survive the termination
of this Plan.

(C) No Director shall be deemed for any purpose to be or to have the rights and privileges of the
owner of Company Common Stock with respect to any hypothetical shares treated as allocated to his
or her deferred Director’s fee account.

SECTION XI AMENDMENT OR TERMINATION OF PLAN

The Board of Directors of the Company may amend or terminate this Plan at any time. Any amendment
or termination of this Plan shall not affect the rights of participants or beneficiaries to the
amounts in the deferred Directors’ fee accounts at the time of such amendment or termination.

SECTION XII APPLICABLE LAW

The provisions of this Plan shall be interpreted and construed in accordance with the laws of the
state of Michigan.

SECTION XIII SUCCESSORS

The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all of the business and/or
assets of the Company expressly to assume and to agree to perform this Plan in the same manner and
to the same extent the Company would be required to perform if no such succession had taken

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place.
This Plan shall be binding upon and inure to the benefit of the Company and any successor of or to
the Company, including without limitation any persons acquiring directly or indirectly all or
substantially all of the business and/or assets of the Company whether by sale, merger,
consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the
“Company” for the purposes of this Plan), and the heirs, executors and administrators of each
Director.

IN WITNESS WHEREOF, DTE Energy Company, pursuant to resolutions of its Board of Directors, has
caused this instrument to be executed in its name and by its Chairman of the Board as of the
4th day of December, 2008.

	 	 	 	 	 
	 	DTE ENERGY COMPANY

 	 
	 	By:  	/s/Anthony F. Earley, Jr.
 	 
	 	 	Anthony F. Earley, Jr. 	 
	 	 	 	 
	 

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