Exhibit 10.2
AMENDMENT NO. 1
TO
SECOND AMENDED AND RESTATED
FIVE-YEAR CREDIT AGREEMENT
     THIS AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED FIVE-YEAR CREDIT
AGREEMENT (this “Amendment”) is made as of January 10, 2007, by and among THE
DETROIT EDISON COMPANY (the “Borrower”), the banks, financial institutions and
other institutional lenders listed on the signature pages hereof (the
“Lenders”), BARCLAYS BANK PLC, as Administrative Agent, and CITIBANK, N.A. and
JPMORGAN CHASE BANK, N.A., as Co-Syndication Agents, under that certain Second
Amended and Restated Five-Year Credit Agreement, dated as of October 17, 2005,
by and among the Borrower, the banks, financial institutions and other
institutional lenders from time to time parties thereto, the Administrative
Agent and the Co-Syndication Agents (as amended, restated or otherwise modified
from time to time, the “Credit Agreement”). Defined terms used herein and not
otherwise defined herein shall have the meaning given to them in the Credit
Agreement.
WITNESSETH
     WHEREAS, the Borrower, the Lenders, the Administrative Agent and the
Co-Syndication Agents are parties to the Credit Agreement; and
     WHEREAS, the Borrower has requested that the Administrative Agent, the
Co-Syndication Agents and the Lenders amend the Credit Agreement on the terms
and conditions set forth herein;
     WHEREAS, the Borrower, the Administrative Agent, the Co-Syndication Agents
and the requisite number of Lenders have agreed to amend the Credit Agreement on
the terms and conditions set forth herein;
     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
have agreed to the following amendments to the Credit Agreement:

1.   Amendments to the Credit Agreement. Effective as of December 31, 2006 (the
“Effective Date”) and subject to the satisfaction of the conditions precedent
set forth in Section 2 below, the Credit Agreement is hereby amended as follows:

  1.1.   Section 1.01 of the Credit Agreement is amended to insert the following
new definitions of “Excluded Pension Effects”, “Funded Debt”, “Guaranteed
Obligations”, “Hybrid Equity Securities”, “Mandatorily Convertible Securities”,
and “Total Funded Debt” alphabetically therein:              “Excluded Pension
Effects” means the non-cash effects on Consolidated Net Worth resulting from the
implementation of FASB Statement of Financial

 

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      Accounting Standards No. 158, Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87,
88, 106, and 132(R), dated September 2006.              “Funded Debt” means, as
to any Person, without duplication: (a) all Debt of such Person for borrowed
money or which has been incurred in connection with the acquisition of assets
(excluding (i) contingent reimbursement obligations in respect of letters of
credit and bankers’ acceptances, (ii) Nonrecourse Debt, (iii) Junior
Subordinated Debt, (iv) Mandatorily Convertible Securities, and (v) Hybrid
Equity Securities), (b) all capital lease obligations of such Person and (c) all
Guaranteed Obligations of Funded Debt of other Persons.              “Guaranteed
Obligations” has the meaning specified in clause (h) of the definition of
“Debt”.              “Hybrid Equity Securities” means any securities issued by
the Borrower or its Subsidiary or a financing vehicle of the Borrower or its
Subsidiary that (i) are classified as possessing a minimum of “intermediate
equity content” by S&P, Basket C equity credit by Moody’s, and 50% equity credit
by Fitch and (ii) require no repayments or prepayments and no mandatory
redemptions or repurchases, in each case, prior to at least 91 days after the
later of the termination of the Commitments and the repayment in full of the
Revolving Credit Advances and all other amounts due under this Agreement.      
       “Mandatorily Convertible Securities” means any mandatorily convertible
equity-linked securities issued by the Borrower or its Subsidiary, so long as
the terms of such securities require no repayments or prepayments and no
mandatory redemptions or repurchases, in each case prior to at least 91 days
after the later of the termination of the Commitments and the repayment in full
of the Revolving Credit Advances and all other amounts due under this Agreement.
             “Total Funded Debt” means all Funded Debt of the Borrower and its
Consolidated Subsidiaries, on a consolidated basis, as determined in accordance
with GAAP.     1.2.   Section 1.01 of the Credit Agreement is amended to delete
the definition of “Excluded Hedging Debt” in its entirety.     1.3.  
Section 1.01 of the Credit Agreement is amended to delete the definition of
“Capitalization” in its entirety and to substitute the following therefor:      
       “Capitalization” means the sum of (a) Total Funded Debt plus
(b) Consolidated Net Worth.     1.4.   Section 1.01 of the Credit Agreement is
amended to delete the definition of “Consolidated Net Worth” in its entirety and
to substitute the following therefor:

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           “Consolidated Net Worth” means, as of any date of determination, the
consolidated total stockholders’ equity, including capital stock (but excluding
treasury stock and capital stock subscribed and unissued), additional paid-in
capital and retained earnings (but excluding the Excluded Pension Effects) of
the Borrower and its Subsidiaries determined in accordance with GAAP.     1.5.  
Section 1.01 of the Credit Agreement is amended to insert at the end of clause
(h) of the definition of “Debt” the following: “(all such obligations under this
clause (h) being “Guaranteed Obligations”).     1.6.   Section 6.01(i) of the
Credit Agreement is amended and restated in its entirety to read as follows:    
         (i)The Borrower and its Subsidiaries, on a Consolidated basis, shall,
as of the last day of any fiscal quarter of the Borrower, have a ratio of
(a) Total Funded Debt to (b) Capitalization in excess of .65:1; or     1.7.  
Exhibit F of the Credit Agreement is amended and restated in its entirety to
read as set forth in the form attached hereto.

2.   Conditions of Effectiveness. The effectiveness of this Amendment is subject
to the conditions precedent that the Administrative Agent shall have received:

  (a)   duly executed originals of this Amendment from each of the Borrower, the
requisite number of Lenders required pursuant to Section 8.01 and the
Administrative Agent; and     (b)   such other documents, instruments and
agreements as the Administrative Agent shall reasonably request.

3.   Representations and Warranties and Reaffirmations of the Borrower.

  3.1.   The Borrower hereby represents and warrants that (i) this Amendment and
the Credit Agreement as previously executed and as modified hereby constitute
legal, valid and binding obligations of the Borrower and are enforceable against
the Borrower in accordance with their terms (except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally), and (ii) no Default
or Event of Default has occurred and is continuing.     3.2.   Upon the
effectiveness of this Amendment and after giving effect hereto, the Borrower
hereby reaffirms all covenants, representations and warranties made in the
Credit Agreement as modified hereby, and agrees that all such covenants,
representations and warranties shall be deemed to have been remade as of the
Effective Date, except that any such covenant, representation, or warranty that
was made as of a specific date shall be considered reaffirmed only as of such
date.

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4.   Reference to the Effect on the Credit Agreement.

  4.1.   Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Credit Agreement (including any reference therein
to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import
referring thereto) or in any other Loan Document shall mean and be a reference
to the Credit Agreement as modified hereby.     4.2.   Except as specifically
modified above, the Credit Agreement and all other documents, instruments and
agreements executed and/or delivered in connection therewith shall remain in
full force and effect, and are hereby ratified and confirmed.     4.3.   The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or the Lenders,
nor constitute a waiver of any provision of the Credit Agreement or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.     4.4.   Upon satisfaction of the conditions set forth in Section 2
hereof and the execution hereof by the Borrower and the Required Lenders, this
Amendment shall be binding upon all parties to the Credit Agreement.

5.   GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.   6.   Headings. Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other purpose.   7.  
Counterparts. This Amendment may be executed by one or more of the parties to
this Amendment on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

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     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year first above written.

                  THE DETROIT EDISON COMPANY, as
the Borrower    
 
           
 
  By:   /s/ David R. Murphy    
 
     
 
        Name: David R. Murphy         Title: Assistant Treasurer    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  BARCLAYS BANK PLC, as Administrative
Agent and as a Lender    
 
           
 
  By:   /s/ David Barton    
 
                Name: David Barton
Title: Associate Director    
 
                CITIBANK, N.A., as Co-Syndication Agent and as a Lender    
 
           
 
  By:   /s/ Amit Vasani    
 
                Name: Amit Vasani
Title: Vice President    
 
                JPMORGAN CHASE BANK, N.A., as Co-
Syndication Agent and as a Lender    
 
           
 
  By:   /s/ Nancy R. Barwig    
 
                Name: Nancy R. Barwig
Title: Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amendment And Restated Five-Year Credit Agreement

 

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                  THE BANK OF NOVA SCOTIA, as Co-
Documentation Agent and as a Lender    
 
           
 
  By   /s/ Thane A. Rattew    
 
                Name: Thane A. Rattew
Title: Managing Director    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amendment And Restated Five-Year Credit Agreement

 

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                  THE BANK OF NEW YORK, as Co- Documentation Agent and as a
Lender    
 
           
 
  By   /s/ Richard Fronapfel, Jr.    
 
                Name: Richard Fronapfel, Jr.
Title: Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amendment And Restated Five-Year Credit Agreement

 

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                  BNP PARIBAS, as a Lender    
 
           
 
  By   /s/ Francis J. Delaney    
 
                Name: Francis J. Delaney
Title: Managing Director    
 
           
 
  By   /s/ Mark A. Renaud    
 
                Name: Mark A. Renaud
Title: Managing Director    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amendment And Restated Five-Year Credit Agreement

 

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                  KEYBANK NATIONAL ASSOCIATION, as
a Lender    
 
           
 
  By   /s/ Sherrie I. Manson    
 
                Name: Sherrie I. Manson
Title: Sr. Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amendment And Restated Five-Year Credit Agreement

 

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                  THE ROYAL BANK OF SCOTLAND plc, as a Lender    
 
           
 
  By   /s/ Andrew N. Taylor
 
        Name: Andrew N. Taylor         Title: Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  UBS LOAN FINANCE LLC, as a Lender    
 
           
 
  By   /s/ Richard L. Tavrow
 
        Name: Richard L. Tavrow         Title: Director    
 
           
 
  By   /s/ Irja R. Otsa    
 
                Name: Irja R. Otsa         Title: Associate Director    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  COMERICA BANK, as a Lender    
 
           
 
  By        
 
  Name:        
 
  Title:        

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  UNION BANK OF CALIFORNIA, N.A., as a Lender    
 
           
 
  By   /s/ Dennis G. Blank
 
        Name: Dennis G. Blank         Title: Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  CREDIT SUISSE, CAYMAN ISLANDS BRANCH (formerly known as CREDIT
SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH), as a Lender    
 
           
 
  By   /s/ Sarah Wu
 
        Name: Sarah Wu         Title: Director    
 
           
 
  By   /s/ Shaheen Malik    
 
                Name: Shaheen Malik         Title: Associate    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender    
 
           
 
  By   /s/ Marcus Tarkington
 
        Name: Marcus Tarkington         Title: Director    
 
           
 
  By   /s/ Rainer Meier    
 
                Name: Ranier Meier         Title: Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  FIFTH THIRD BANK, A MICHIGAN BANKING CORPORATION (FORMERLY
KNOWN AS FIFTH THIRD BANK, EASTERN MICHIGAN), as a Lender    
 
           
 
  By   /s/ Brian Jelinski
 
        Name: Brian Jelinski         Title: Officer    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
NEW YORK BRANCH (successor-by-merger to UFJ Bank Limited), as a Lender    
 
           
 
  By   /s/ Chi-Cheng Chen    
 
                Name: Chi-Cheng Chen         Title:   Authorized Signatory    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  BANK HAPOALIM B.M., as a Lender    
 
           
 
  By        
 
                Name:         Title:    
 
           
 
  By        
 
                Name:         Title:    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  WILLIAM STREET COMMITMENT CORPORATION (recourse only to assets
of William Street Commitment Corporation), as a Lender    
 
           
 
  By        
 
                Name:         Title:    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  MELLON BANK, N.A., as a Lender    
 
           
 
  By   /s/ Thomas J. Tarasovich, Jr.    
 
                Name: Thomas J. Tarasovich, Jr.         Title:   Vice President
   

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  LASALLE BANK NATIONAL ASSOCIATION, as a Lender    
 
           
 
  By        
 
                Name:         Title:    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  MIZUHO CORPORATE BANK, LTD., as a Lender    
 
           
 
  By   /s/ Raymond Ventura    
 
                Name: Raymond Ventura         Title:   Deputy General Manager  
 

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  MORGAN STANLEY BANK, as a Lender    
 
           
 
  By   /s/ Alex Nikolov    
 
                Name: Alex Nikolov         Title:   Second – Vice President    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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                  THE NORTHERN TRUST COMPANY, as a Lender    
 
           
 
  By        
 
                Name:         Title:    

Signature Page to
The Detroit Edison Company
Amendment No. 1 to Second Amended and Restated Five-Year Credit Agreement

 

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EXHIBIT F — FORM OF
COMPLIANCE CERTIFICATE
COMPLIANCE CERTIFICATE

To:   The Lenders parties to the
Credit Agreement Described Below

          This Compliance Certificate is furnished pursuant to that certain
Second Amended and Restated Five-Year Credit Agreement, dated as of October 17,
2005 (as amended or modified from time to time, the “Agreement”) among The
Detroit Edison Company, a Michigan corporation (the “Borrower”), the lenders
parties thereto, and Barclays Bank PLC, as Agent for the lenders. Unless
otherwise defined herein, capitalized terms used in this Compliance Certificate
have the meanings ascribed thereto in the Agreement.
          THE UNDERSIGNED HEREBY CERTIFIES THAT:
          1. I am the duly elected                       of the Borrower;
          2. I have reviewed the terms of the Agreement and I have made, or have
caused to be made under my supervision, a detailed review of the transactions
and conditions of the Borrower and its Subsidiaries during the accounting period
covered by the attached financial statements;
          3. The examinations described in paragraph 2 did not disclose, and I
have no knowledge of, the existence of any condition or event which constitutes
an Event of Default or Default during or at the end of the accounting period
covered by the attached financial statements or as of the date of this
Certificate, except as set forth below; and
          4. Schedule 1 attached hereto sets forth financial data and
computations evidencing the Borrower’s compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.
          Described below are the exceptions, if any, to paragraph 3 by listing,
in detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:
          The foregoing certifications, together with the computations set forth
in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this            day of
                     ,            .

                  THE DETROIT EDISON COMPANY    
 
           
 
  By        
 
                Name:         Title:    

 

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SCHEDULE 1 TO COMPLIANCE CERTIFICATE
Compliance as of ________, ___with
Provisions of Section 5.01(h) of
the Agreement
FINANCIAL COVENANT
Ratio of Total Funded Debt to Capitalization (Section 6.01(i)).

         
(A) Numerator (Total Funded Debt):
       
(i) Debt for borrowed money or which has been incurred in connection with the
acquisition of assets (exclusive of contingent reimbursement obligations in
respect of letters of credit and bankers’ acceptances):
  $                        
(ii) Minus: Nonrecourse Debt:
  -$                        
(iii) Minus: Junior Subordinated Debt:
  -$                        
(iv) Minus: Mandatorily Convertible Securities:
  -$                        
(v) Minus: Hybrid Equity Securities:
  -$                        
(vi) Plus: Capital lease obligations:
  +$                        
(vii) Plus: Guaranty Obligations of Funded Debt of other Persons:
  +$                        
(viii) Numerator: (A)(i) minus (A)(ii) through (A)(v) plus (A)(vi) plus
(A)(vii):
  $                        
 
       
(B) Denominator (Capitalization):
       
(i) Total Funded Debt: (A)(viii)
  $                        
(ii) Plus: Consolidated Net Worth:
  +$                        
(iii) Denominator: (B)(i) plus (B)(ii):
  $                        
 
       
(C) State whether the ratio of (A)(viii) to (B)(iii) was not greater than .65:1:
  YES/NO