Document:

exv4w259

Exhibit 4-259

INDENTURE

DATED AS OF OCTOBER 1, 2008

 

THE DETROIT EDISON COMPANY

(2000 2nd Avenue, Detroit, Michigan 48226)

TO

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

(Successor to J.P. Morgan Trust Company, National Association)

(719 Griswold Street, Suite 930, Detroit, Michigan 48226)

AS TRUSTEE

 

SUPPLEMENTAL TO MORTGAGE AND DEED OF TRUST

DATED AS OF OCTOBER 1, 1924

PROVIDING FOR

(A) GENERAL AND REFUNDING MORTGAGE BONDS,

2008 SERIES J

AND

(B)      RECORDING AND FILING DATA

1

 

TABLE OF CONTENTS*

	 	 	 	 	 
	 	 	PAGE
	PARTIES
	 	 	3	 
	RECITALS
	 	 	3	 
	Original Indenture and Supplementals
	 	 	3	 
	Issue of Bonds Under Indenture
	 	 	3	 
	Bonds Heretofore Issued
	 	 	4	 
	Reason for Creation of New Series
	 	 	10	 
	Bonds to be 2008 Series J
	 	 	10	 
	Further Assurance
	 	 	10	 
	Authorization of Supplemental Indenture
	 	 	11	 
	Consideration for Supplemental Indenture
	 	 	11	 
	PART I. CREATION OF THREE HUNDRED FIFTY-THIRD SERIES OF BONDS, GENERAL AND REFUNDING
MORTGAGE BONDS, 2008 SERIES J
	 	 	11	 
	Sec. 1. Terms of Bonds of 2008 Series J
	 	 	11	 
	Sec. 2. Release
	 	 	13	 
	Sec. 3. Redemption of Bonds of 2008 Series J
	 	 	14	 
	Sec. 4. Redemption of Bonds of 2008 Series J in Event of Acceleration of
Notes
	 	 	14	 
	Sec. 5. Form of Bonds of 2008 Series J
	 	 	15	 
	Form of Trustee’s Certificate
	 	 	16	 
	Form of Reverse of Bond
	 	 	16	 
	PART II. RECORDING AND FILING DATA
	 	 	19	 
	Recording and Filing of Original Indenture
	 	 	19	 
	Recording and Filing of Supplemental Indentures
	 	 	19	 
	Recording and Filing of Supplemental Indenture Dated as of June 1, 2008
	 	 	24	 
	Recording and Filing of Supplemental Indenture Dated as of July 1, 2008
	 	 	25	 
	Recording of Certificates of Provision for Payment
	 	 	25	 
	PART III. THE TRUSTEE
	 	 	26	 
	Terms and Conditions of Acceptance of Trust by Trustee
	 	 	26	 
	PART IV. MISCELLANEOUS
	 	 	26	 
	Confirmation of Section 318(c) of Trust Indenture Act
	 	 	26	 
	Execution in Counterparts
	 	 	26	 
	EXECUTION
	 	 	27	 
	Testimonium
	 	 	27	 
	Execution by Company
	 	 	28	 
	Acknowledgment of Execution by Company
	 	 	29	 
	Execution by Trustee
	 	 	30	 
	Acknowledgment of Execution by Trustee
	 	 	31	 
	Affidavit as to Consideration and Good Faith
	 	 	32	 

 

			
	*	 	This Table of Contents shall not have any bearing upon the interpretation of any of the terms
or provisions of this Indenture.

2

 

	 	 	 
	PARTIES.

	 	SUPPLEMENTAL INDENTURE, dated as of the 1st day of October, in the year
2008, between THE DETROIT EDISON COMPANY, a corporation organized and
existing under the laws of the State of Michigan and a public utility,
having its corporate offices at 2000 2nd Avenue, Detroit, Michigan
48226 (hereinafter called the “Company”), party of the first part, and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (successor to J.P.
Morgan Trust Company, National Association), a trust company organized
and existing under the laws of the United States, having a corporate
trust office at 719 Griswold Street, Suite 930, Detroit, Michigan
48226, as successor Trustee under the Mortgage and Deed of Trust
hereinafter mentioned (hereinafter called the “Trustee”), party of the
second part.
	 
	 	 
	ORIGINAL
INDENTURE AND
SUPPLEMENTALS.

	 	WHEREAS, the Company has heretofore executed and delivered its Mortgage
and Deed of Trust (hereinafter referred to as the “Original
Indenture”), dated as of October 1, 1924, to the Trustee, for the
security of all bonds of the Company outstanding thereunder, and
pursuant to the terms and provisions of the Original Indenture,
indentures dated as of, respectively, June 1, 1925, August 1, 1927,
February 1, 1931, June 1, 1931, October 1, 1932, September 25, 1935,
September 1, 1936, November 1, 1936, February 1, 1940, December 1,
1940, September 1, 1947, March 1, 1950, November 15, 1951, January 15,
1953, May 1, 1953, March 15, 1954, May 15, 1955, August 15, 1957, June
1, 1959, December 1, 1966, October 1, 1968, December 1, 1969, July 1,
1970, December 15, 1970, June 15, 1971, November 15, 1971, January 15,
1973, May 1, 1974, October 1, 1974, January 15, 1975, November 1, 1975,
December 15, 1975, February 1, 1976, June 15, 1976, July 15, 1976,
February 15, 1977, March 1, 1977, June 15, 1977, July 1, 1977, October
1, 1977, June 1, 1978, October 15, 1978, March 15, 1979, July 1, 1979,
September 1, 1979, September 15, 1979, January 1, 1980, April 1, 1980,
August 15, 1980, August 1, 1981, November 1, 1981, June 30, 1982,
August 15, 1982, June 1, 1983, October 1, 1984, May 1, 1985, May 15,
1985, October 15, 1985, April 1, 1986, August 15, 1986, November 30,
1986, January 31, 1987, April 1, 1987, August 15, 1987, November 30,
1987, June 15, 1989, July 15, 1989, December 1, 1989, February 15,
1990, November 1, 1990, April 1, 1991, May 1, 1991, May 15, 1991,
September 1, 1991, November 1, 1991, January 15, 1992, February 29,
1992, April 15, 1992, July 15, 1992, July 31, 1992, November 30, 1992,
December 15, 1992, January 1, 1993, March 1, 1993, March 15, 1993,
April 1, 1993, April 26, 1993, May 31, 1993, June 30, 1993, June 30,
1993, September 15, 1993, March 1, 1994, June 15, 1994, August 15,
1994, December 1, 1994, August 1, 1995, August 1, 1999, August 15,
1999, January 1, 2000, April 15, 2000, August 1, 2000, March 15, 2001,
May 1, 2001, August 15, 2001, September 15, 2001, September 17, 2002,
October 15, 2002, December 1, 2002, August 1, 2003, March 15, 2004,
July 1, 2004, February 1, 2005, April 1, 2005, August 1, 2005,
September 15, 2005, September 30, 2005, May 15, 2006, December 1, 2006,
December 1, 2007, April 1, 2008, May 1, 2008, June 1, 2008 and July 1,
2008 supplemental to the Original Indenture, have heretofore been
entered into between the Company and the Trustee (the Original
Indenture and all indentures supplemental thereto together being
hereinafter sometimes referred to as the “Indenture”); and
	 
	 	 
	ISSUE OF BONDS UNDER INDENTURE.

	 	WHEREAS, the Indenture provides that said bonds shall be issuable in
one or more series, and makes provision that the rates of interest and
dates for the payment thereof, the date of maturity or dates of
maturity, if of serial maturity,

3

 

	 	 	 
	 

	 	the terms and rates of optional
redemption (if redeemable),
the forms of registered bonds without
coupons of any series and any other provisions and agreements in
respect thereof, in the Indenture provided and permitted, as the Board
of Directors may determine, may be expressed in a supplemental
indenture to be made by the Company to the Trustee thereunder; and
	 
	 	 
	BONDS
HERETOFORE
ISSUED.

	 	WHEREAS, bonds in the principal amount of Twelve billion nine hundred
eighty-one million three hundred fifty-two thousand dollars
($12,981,352,000) have heretofore been issued under the Indenture as
follows, viz:

	 	 	 	 	 
	(1)

	 	Bonds of Series A
	 	— Principal Amount $26,016,000,
	 
	 	 	 	 
	(2)

	 	Bonds of Series B
	 	— Principal Amount $23,000,000,
	 
	 	 	 	 
	(3)

	 	Bonds of Series C
	 	— Principal Amount $20,000,000,
	 
	 	 	 	 
	(4)

	 	Bonds of Series D
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(5)

	 	Bonds of Series E
	 	— Principal Amount $15,000,000,
	 
	 	 	 	 
	(6)

	 	Bonds of Series F
	 	— Principal Amount $49,000,000,
	 
	 	 	 	 
	(7)

	 	Bonds of Series G
	 	— Principal Amount $35,000,000,
	 
	 	 	 	 
	(8)

	 	Bonds of Series H
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(9)

	 	Bonds of Series I
	 	— Principal Amount $60,000,000,
	 
	 	 	 	 
	(10)

	 	Bonds of Series J
	 	— Principal Amount $35,000,000,
	 
	 	 	 	 
	(11)

	 	Bonds of Series K
	 	— Principal Amount $40,000,000,
	 
	 	 	 	 
	(12)

	 	Bonds of Series L
	 	— Principal Amount $24,000,000,
	 
	 	 	 	 
	(13)

	 	Bonds of Series M
	 	— Principal Amount $40,000,000,
	 
	 	 	 	 
	(14)

	 	Bonds of Series N
	 	— Principal Amount $40,000,000,
	 
	 	 	 	 
	(15)

	 	Bonds of Series O
	 	— Principal Amount $60,000,000,
	 
	 	 	 	 
	(16)

	 	Bonds of Series P
	 	— Principal Amount $70,000,000,
	 
	 	 	 	 
	(17)

	 	Bonds of Series Q
	 	— Principal Amount $40,000,000,
	 
	 	 	 	 
	(18)

	 	Bonds of Series W
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(19)

	 	Bonds of Series AA
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(20)

	 	Bonds of Series BB
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(21)

	 	Bonds of Series CC
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(22)

	 	Bonds of Series UU
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 

4

 

	 	 	 	 	 
	(23-31)

	 	Bonds of Series DDP Nos. 1-9
	 	— Principal Amount $14,305,000,
	 
	 	 	 	 
	(32-45)

	 	Bonds of Series FFR Nos. 1-14
	 	— Principal Amount $45,600,000,
	 
	 	 	 	 
	(46-67)

	 	Bonds of Series GGP Nos. 1-22
	 	— Principal Amount $42,300,000,
	 
	 	 	 	 
	(68)

	 	Bonds of Series HH
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(69-90)

	 	Bonds of Series IIP Nos. 1-22
	 	— Principal Amount $3,750,000,
	 
	 	 	 	 
	(91-98)

	 	Bonds of Series JJP Nos. 1-8
	 	— Principal Amount $6,850,000,
	 
	 	 	 	 
	(99-107)

	 	Bonds of Series KKP Nos. 1-9
	 	— Principal Amount $34,890,000,
	 
	 	 	 	 
	(108-122)

	 	Bonds of Series LLP Nos. 1-15
	 	— Principal Amount $8,850,000,
	 
	 	 	 	 
	(123-143)

	 	Bonds of Series NNP Nos. 1-21
	 	— Principal Amount $47,950,000,
	 
	 	 	 	 
	(144-161)

	 	Bonds of Series OOP Nos. 1-18
	 	— Principal Amount $18,880,000,
	 
	 	 	 	 
	(162-180)

	 	Bonds of Series QQP Nos. 1-19
	 	— Principal Amount $13,650,000,
	 
	 	 	 	 
	(181-195)

	 	Bonds of Series TTP Nos. 1-15
	 	— Principal Amount $3,800,000,
	 
	 	 	 	 
	(196)

	 	Bonds of 1980 Series A
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(197-221)

	 	Bonds of 1980 Series CP Nos.
1-25
	 	— Principal Amount $35,000,000,
	 
	 	 	 	 
	(222-232)

	 	Bonds of 1980 Series DP Nos.
1-11
	 	— Principal Amount $10,750,000,
	 
	 	 	 	 
	(233-248)

	 	Bonds of 1981 Series AP Nos.
1-16
	 	— Principal Amount $124,000,000,
	 
	 	 	 	 
	(249)

	 	Bonds of 1985 Series A
	 	— Principal Amount $35,000,000,
	 
	 	 	 	 
	(250)

	 	Bonds of 1985 Series B
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(251)

	 	Bonds of Series PP
	 	— Principal Amount $70,000,000,
	 
	 	 	 	 
	(252)

	 	Bonds of Series RR
	 	— Principal Amount $70,000,000,
	 
	 	 	 	 
	(253)

	 	Bonds of Series EE
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(254-255)

	 	Bonds of Series MMP and MMP
No. 2
	 	— Principal Amount $5,430,000,
	 
	 	 	 	 
	(256)

	 	Bonds of Series T
	 	— Principal Amount $75,000,000,
	 
	 	 	 	 
	(257)

	 	Bonds of Series U
	 	— Principal Amount $75,000,000,

5

 

	 	 	 	 	 
	(258)

	 	Bonds of 1986 Series B
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(259)

	 	Bonds of 1987 Series D
	 	— Principal Amount $250,000,000,
	 
	 	 	 	 
	(260)

	 	Bonds of 1987 Series E
	 	— Principal Amount $150,000,000,
	 
	 	 	 	 
	(261)

	 	Bonds of 1987 Series C
	 	— Principal Amount $225,000,000,
	 
	 	 	 	 
	(262)

	 	Bonds of Series V
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(263)

	 	Bonds of Series SS
	 	— Principal Amount $150,000,000,
	 
	 	 	 	 
	(264)

	 	Bonds of 1980 Series B
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(265)

	 	Bonds of 1986 Series C
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(266)

	 	Bonds of 1986 Series A
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(267)

	 	Bonds of 1987 Series B
	 	— Principal Amount $175,000,000,
	 
	 	 	 	 
	(268)

	 	Bonds of Series X
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(269)

	 	Bonds of 1987 Series F
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(270)

	 	Bonds of 1987 Series A
	 	— Principal Amount $300,000,000,
	 
	 	 	 	 
	(271)

	 	Bonds of Series Y
	 	— Principal Amount $60,000,000,
	 
	 	 	 	 
	(272)

	 	Bonds of Series Z
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(273)

	 	Bonds of 1989 Series A
	 	— Principal Amount $300,000,000,
	 
	 	 	 	 
	(274)

	 	Bonds of 1984 Series AP
	 	— Principal Amount $2,400,000,
	 
	 	 	 	 
	(275)

	 	Bonds of 1984 Series BP
	 	— Principal Amount $7,750,000,
	 
	 	 	 	 
	(276)

	 	Bonds of Series R
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(277)

	 	Bonds of Series S
	 	— Principal Amount $150,000,000,
	 
	 	 	 	 
	(278)

	 	Bonds of 1993 Series D
	 	— Principal Amount $100,000,000,
	 
	 	 	 	 
	(279)

	 	Bonds of 1992 Series E
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(280)

	 	Bonds of 1993 Series B
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(281)

	 	Bonds of 1989 Series BP
	 	— Principal Amount $66,565,000,
	 
	 	 	 	 
	(282)

	 	Bonds of 1990 Series A
	 	— Principal Amount $194,649,000,
	 
	 	 	 	 
	(283)

	 	Bonds of 1990 Series D
	 	— Principal Amount $0,
	 
	 	 	 	 
	(284)

	 	Bonds of 1993 Series G
	 	— Principal Amount $225,000,000,

6

 

	 	 	 	 	 
	 
	 	 	 	 
	(285)

	 	Bonds of 1993 Series K
	 	— Principal Amount $160,000,000,
	 
	 	 	 	 
	(286)

	 	Bonds of 1991 Series EP
	 	— Principal Amount $41,480,000,
	 
	 	 	 	 
	(287)

	 	Bonds of 1993 Series H
	 	— Principal Amount $50,000,000,
	 
	 	 	 	 
	(288)

	 	Bonds of 1999 Series D
	 	— Principal Amount $40,000,000,
	 
	 	 	 	 
	(289)

	 	Bonds of 1991 Series FP
	 	— Principal Amount $98,375,000,
	 
	 	 	 	 
	(290)

	 	Bonds of 1992 Series BP
	 	— Principal Amount $20,975,000,
	 
	 	 	 	 
	(291)

	 	Bonds of 1992 Series D
	 	— Principal Amount $300,000,000,
	 
	 	 	 	 
	(292)

	 	Bonds of 1992 Series CP
	 	— Principal Amount $35,000,000,
	 
	 	 	 	 
	(293)

	 	Bonds of 1993 Series C
	 	— Principal Amount $225,000,000,
	 
	 	 	 	 
	(294)

	 	Bonds of 1993 Series E
	 	— Principal Amount $400,000,000,
	 
	 	 	 	 
	(295)

	 	Bonds of 1993 Series J
	 	— Principal Amount $300,000,000,
	 
	 	 	 	 
	(296-301)

	 	Bonds of Series KKP Nos. 10-15
	 	— Principal Amount $179,590,000,
	 
	 	 	 	 
	(302)

	 	Bonds of 1989 Series BP No. 2
	 	— Principal Amount $36,000,000,
	 
	 	 	 	 
	(303)

	 	Bonds of 1993 Series FP
	 	— Principal Amount $5,685,000,
	 
	 	 	 	 
	(304)

	 	Bonds of 1993 Series IP
	 	— Principal Amount $5,825,000,
	 
	 	 	 	 
	(305)

	 	Bonds of 1994 Series AP
	 	— Principal Amount $7,535,000,
	 
	 	 	 	 
	(306)

	 	Bonds of 1994 Series BP
	 	— Principal Amount $12,935,000,
	 
	 	 	 	 
	(307)

	 	Bonds of 1994 Series DP
	 	— Principal Amount $23,700,000,
	 
	 	 	 	 
	(308)

	 	Bonds of 1994 Series C
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(309)

	 	Bonds of 2000 Series A
	 	— Principal Amount $220,000,000,
	 
	 	 	 	 
	(310)

	 	Bonds of 2005 Series A
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(311)

	 	Bonds of 1995 Series AP
	 	— Principal Amount $97,000,000,
	 
	 	 	 	 
	(312)

	 	Bonds of 1995 Series BP
	 	— Principal Amount $22,175,000,
	 
	 	 	 	 
	(313)

	 	Bonds of 2001 Series D
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(314)

	 	Bonds of 2005 Series B
	 	— Principal Amount $200,000,000,
	 
	 	 	 	 
	(315)

	 	Bonds of 2006 Series CT
	 	— Principal Amount $68,500,000,

7

 

	 	 	 	 	 
	(316)

	 	Bonds of 2005 Series DT
	 	— Principal Amount $119,175,000, and
	 
	 	 	 	 
	(317)

	 	Bonds of 1991 Series AP
	 	— Principal Amount $32,375,000;

	 	 	 
	 

	 	all of which have either been retired and cancelled, or no longer
represent obligations of the Company, having matured or having been
called for redemption and funds necessary to effect the payment,
redemption and retirement thereof having been deposited with the
Trustee as a special trust fund to be applied for such purpose;
	 
	 	 
	(318)

	 	Bonds of 1990 Series B in the principal amount of Two hundred fifty-six
million nine hundred thirty-two thousand dollars ($256,932,000) of
which One hundred eighty million eight hundred four thousand dollars
($180,804,000) principal amount have heretofore been retired;
	 
	 	 
	(319)

	 	Bonds of 1990 Series C in the principal amount of Eighty-five million
four hundred seventy-five thousand dollars ($85,475,000) of which
Sixty-four million nine hundred sixty-one thousand dollars
($64,961,000) principal amount have heretofore been retired;
	 
	 	 
	(320)

	 	INTENTIONALLY RESERVED FOR 1990 SERIES E;
	 
	 	 
	(321)

	 	INTENTIONALLY RESERVED FOR 1990 SERIES F;
	 
	 	 
	(322)

	 	Bonds of 1991 Series BP in the principal amount of Twenty-five million
nine hundred ten thousand dollars ($25,910,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(323)

	 	Bonds of 1991 Series CP in the principal amount of Thirty-two million
eight hundred thousand dollars ($32,800,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(324)

	 	Bonds of 1991 Series DP in the principal amount of Thirty-seven million
six hundred thousand dollars ($37,600,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(325)

	 	Bonds of 1992 Series AP in the principal amount of Sixty-six million
dollars ($66,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(326)

	 	Bonds of 1993 Series AP in the principal amount of Sixty-five million
dollars ($65,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(327)

	 	Bonds of 1999 Series AP in the principal amount of One hundred eighteen
million three hundred sixty thousand dollars ($118,360,000), all of
which are outstanding at the date hereof;
	 
	 	 
	(328)

	 	Bonds of 1999 Series BP in the principal amount of Thirty-nine million
seven hundred forty-five thousand dollars ($39,745,000), all of which
are outstanding of the date hereof;
	 
	 	 
	(329)

	 	Bonds of 1999 Series CP in the principal amount of Sixty-six million
five hundred sixty-five thousand dollars ($66,565,000), all of which
are outstanding at the date hereof;

8

 

	 	 	 
	(330)

	 	Bonds of 2000 Series B in the principal amount of Fifty million seven
hundred forty-five thousand dollars ($50,745,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(331)

	 	Bonds of 2001 Series AP in the principal amount of Thirty-one million
($31,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(332)

	 	Bonds of 2001 Series BP in the principal amount of Eighty-two million
three hundred fifty thousand ($82,350,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(333)

	 	Bonds of 2001 Series CP in the principal amount of One hundred
thirty-nine million eight hundred fifty-five thousand dollars
($139,855,000), all of which are outstanding at the date hereof;
	 
	 	 
	(334)

	 	Bonds of 2001 Series E in the principal amount of Five hundred million
dollars ($500,000,000), all of which are outstanding at the date
hereof;
	 
	 	 
	(335)

	 	Bonds of 2002 Series A in the principal amount of Two hundred
twenty-five million dollars ($225,000,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(336)

	 	Bonds of 2002 Series B in the principal amount of Two hundred
twenty-five million dollars ($225,000,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(337)

	 	Bonds of 2002 Series C in the principal amount of Sixty-four million
three hundred thousand dollars ($64,300,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(338)

	 	Bonds of 2002 Series D in the principal amount of Fifty-five million
nine hundred seventy-five thousand dollars ($55,975,000), all of which
are outstanding at the date hereof;
	 
	 	 
	(339)

	 	Bonds of 2003 Series A in the principal amount of Forty-nine million
dollars ($49,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(340)

	 	Bonds of 2004 Series A in the principal amount of Thirty-six million
dollars ($36,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(341)

	 	Bonds of 2004 Series B in the principal amount of Thirty-one million
nine hundred eighty thousand dollars ($31,980,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(342)

	 	Bonds of 2004 Series D in the principal amount of Two hundred million
dollars ($200,000,000), all of which are outstanding at the date
hereof;
	 
	 	 
	(343)

	 	Bonds of 2005 Series AR in the principal amount of Two hundred million
dollars ($200,000,000), all of which are outstanding at the date
hereof;
	 
	 	 
	(344)

	 	Bonds of 2005 Series BR in the principal amount of Two hundred million
dollars ($200,000,000), all of which are outstanding at the date
hereof;
	 
	 	 

9

 

	 	 	 
	(345)

	 	Bonds of 2005 Series C in the principal amount of One hundred million
dollars ($100,000,000), all of which are outstanding at the date
hereof;
	 
	 	 
	(346)

	 	Bonds of 2005 Series E in the principal amount of Two hundred fifty
million dollars ($250,000,000), all of which are outstanding at the
date hereof;
	 
	 	 
	(347)

	 	Bonds of 2006 Series A in the principal amount of Two hundred fifty
million dollars ($250,000,000), all of which are outstanding at the
date hereof;
	 
	 	 
	(348)

	 	Bonds of 2007 Series A in the principal amount of Fifty million dollars
($50,000,000), all of which are outstanding at the date hereof;
	 
	 	 
	(349)

	 	Bonds of 2008 Series DT in the principal amount of Sixty-eight million
five hundred thousand dollars ($68,500,000), all of which are
outstanding at the date hereof;
	 
	 	 
	(350)

	 	Bonds of 2008 Series ET in the principal amount of One hundred nineteen
million one hundred seventy-five thousand dollars ($119,175,000), all
of which are outstanding at the date hereof;
	 
	 	 
	(351)

	 	Bonds of 2008 Series G in the principal amount of Three hundred million
dollars ($300,000,000), all of which are outstanding at the date
hereof; and
	 
	 	 
	(352)

	 	Bonds of 2008 Series KT in the principal amount of Thirty-two million
three hundred seventy-five thousand dollars ($32,375,000), all of which
are outstanding at the date hereof;
	 
	 	 
	 

	 	accordingly, the Company has issued and has presently outstanding Three
billion eight hundred nine million eight hundred seventy-seven thousand
dollars ($3,809,877,000) aggregate principal amount of its General and
Refunding Mortgage Bonds (the “Bonds”) at the date hereof.

	 	 	 
	REASON FOR CREATION OF NEW
SERIES.

	 	WHEREAS, the Company intends to issue a series of Notes under the Note
Indenture herein referred to, and, pursuant to the Note Indenture, the
Company has agreed to issue its General and Refunding Mortgage Bonds
under the Indenture in order further to secure its obligations with
respect to such Notes; and
	 
	 	 
	BONDS TO BE 2008 SERIES J.

	 	WHEREAS, for such purpose the Company desires by this Supplemental
Indenture to create a new series of bonds, to be designated “General
and Refunding Mortgage Bonds, 2008 Series J,” in the aggregate
principal amount of Two hundred fifty million dollars ($250,000,000),
to be authenticated and delivered pursuant to Section 8 of Article III
of the Indenture; and
	 
	 	 
	FURTHER ASSURANCE.

	 	WHEREAS, the Original Indenture, by its terms, includes in the property
subject to the lien thereof all of the estates and properties, real,
personal and mixed, rights, privileges and franchises of every nature
and kind and wheresoever situate, then or thereafter owned or possessed
by or belonging to the Company or to which it was then or at any time
thereafter might be entitled in law or in equity (saving and excepting,
however, the property therein specifically excepted or released from
the lien thereof), and the Company therein covenanted that it would,
upon reasonable request, execute and deliver such further instruments
as may be necessary or proper for the better assuring

10

 

	 	 	 
	 

	 	and confirming
unto the Trustee all or any part of the trust estate, whether then or
thereafter owned or acquired by the Company (saving and excepting,
however, property specifically excepted or released from the lien
thereof); and
	 
	 	 
	AUTHORIZATION OF SUPPLEMENTAL
INDENTURE.

	 	WHEREAS, the Company in the exercise of the powers and authority
conferred upon and reserved to it under and by virtue of the provisions
of the Indenture, and pursuant to resolutions of its Board of
Directors, has duly resolved and determined to make, execute and
deliver to the Trustee a supplemental indenture in the form hereof for
the purposes herein provided; and
WHEREAS, all conditions and requirements necessary to make this
Supplemental Indenture a valid and legally binding instrument in
accordance with its terms have been done, performed and fulfilled, and
the execution and delivery hereof have been in all respects duly
authorized;
	 
	 	 
	CONSIDERATION FOR SUPPLEMENTAL
INDENTURE.

	 	NOW, THEREFORE, THIS INDENTURE WITNESSETH: That The Detroit Edison
Company, in consideration of the premises and of the covenants
contained in the Indenture and of the sum of One Dollar ($1.00) and
other good and valuable consideration to it duly paid by the Trustee at
or before the ensealing and delivery of these presents, the receipt
whereof is hereby acknowledged, hereby covenants and agrees to and with
the Trustee and its successors in the trusts under the Original
Indenture and in said indentures supplemental thereto as follows:
	 
	 	 
	 

	 	PART I.

CREATION OF THREE HUNDRED FIFTY-THIRD

SERIES OF BONDS,

GENERAL AND REFUNDING MORTGAGE BONDS,

2008 SERIES J

	 	 	 
	TERMS OF BONDS OF
2008 SERIES J.

	 	SECTION 1. The Company hereby creates the three hundred fifty-third series of bonds to
be issued under and secured by the Original Indenture as amended to date and as
further amended by this Supplemental Indenture, to be designated, and to be
distinguished from the bonds of all other series, by the title “General and Refunding
Mortgage Bonds, 2008 Series J” (elsewhere herein referred to as the “bonds of 2008
Series J”). The aggregate principal amount of bonds of 2008 Series J shall be limited
to Two hundred fifty million dollars ($250,000,000), except as provided in Sections 7
and 13 of Article II of the Original Indenture with respect to exchanges and
replacements of bonds, and except further that the Company may, without the consent of
any holder of the bonds of 2008 Series J, “reopen” the bonds of 2008 Series J so as to
increase the aggregate principal amount outstanding to equal the aggregate principal
amount of Notes (as defined below) outstanding upon a “reopening” of the series, so
long as any additional bonds of 2008 Series J have the same tenor and terms as the
bonds of 2008 Series J established hereby.
	 
	 	 
	 

	 	Subject to the release provisions set forth below, each bond of 2008 Series J is to be
irrevocably assigned to, and registered in the name of, The Bank of New York Mellon
Trust Company, N.A., as trustee, or a successor trustee (said

11

 

	 	 	 
	 

	 	trustee or any successor
trustee being hereinafter referred to as the “Note Indenture Trustee”), under the
collateral trust indenture, dated as of June 30, 1993, as supplemented (the “Note
Indenture”), between the Note Indenture Trustee and the Company, to secure payment of
the Company’s 2008 Series J 6.40% Senior Notes due 2013 (for purposes of this Part I,
the “Notes”).
	 
	 	 
	 

	 	The bonds of 2008 Series J shall be issued as registered bonds without coupons in
denominations of a multiple of $1,000. The bonds of 2008 Series J shall be issued in
the aggregate principal amount of $250,000,000, shall mature on October 1, 2013
(subject to earlier redemption or release) and shall bear interest at the rate of
6.40% per annum, payable semi-annually in arrears on April 1 and October 1 of each
year (commencing April 1, 2009), until the principal thereof shall have become due and
payable and thereafter until the Company’s obligation with respect to the payment of
said principal shall have been discharged as provided in the Indenture.
	 
	 	 
	 

	 	The bonds of 2008 Series J shall be payable as to principal, premium, if any, and
interest as provided in the Indenture, but only to the extent and in the manner herein
provided. The bonds of 2008 Series J shall be payable, as to principal, premium, if
any, and interest, at the office or agency of the Company in the Borough of Manhattan,
the City and State of New York, in any coin or currency of the United States of
America which at the time of payment is legal tender for public and private debts.
	 
	 	 
	 

	 	Except as provided herein, each bond of 2008 Series J shall be dated the date of its
authentication and interest shall be payable on the principal represented thereby from
the April 1 or October 1 next preceding the date thereof to which interest has been
paid on bonds of 2008 Series J, unless the bond is authenticated on a date to which
interest has been paid, in which case interest shall be payable from the date of
authentication, or unless the date of authentication is prior to April 1, 2009 in
which case interest shall be payable from October 10, 2008.
	 
	 	 
	 

	 	The bonds of 2008 Series J in definitive form shall be, at the election of the
Company, fully engraved or shall be lithographed or printed in authorized
denominations as aforesaid and numbered R-1 and upwards (with such further designation
as may be appropriate and desirable to indicate by such designation the form, series
and denomination of bonds of 2008 Series J). Until bonds of 2008 Series J in
definitive form are ready for delivery, the Company may execute, and upon its request
in writing the Trustee shall authenticate and deliver in lieu thereof, bonds of 2008
Series J in temporary form, as provided in Section 10 of Article II of the Indenture.
Temporary bonds of 2008 Series J, if any, may be printed and may be issued in
authorized denominations in substantially the form of definitive bonds of 2008
Series J, but without a recital of redemption prices and with such omissions,
insertions and variations as may be appropriate for temporary bonds, all as may be
determined by the Company.
	 
	 	 
	 

	 	Interest on any bond of 2008 Series J that is payable on any interest payment date and
is punctually paid or duly provided for shall be paid to the person in whose name that
bond, or any previous bond to the extent evidencing the same debt as that evidenced by
that bond, is registered at the close of business on the regular record date for such
interest, which regular record date shall be the

12

 

	 	 	 
	 

	 	fifteenth calendar day (whether or
not a business day) next preceding such interest payment date. If the Company shall
default in the payment of the interest due on any interest payment date on the
principal represented by any bond of 2008 Series J, such defaulted interest shall
forthwith cease to be payable to the registered holder of that bond on the relevant
regular record date by virtue of his having been such holder, and such defaulted
interest may be paid to the registered holder of that bond (or any bond or bonds of
2008 Series J issued upon transfer or exchange thereof) on the date of payment of such
defaulted interest or, at the election of the Company, to the person in whose name
that bond (or any bond or bonds of 2008 Series J issued upon transfer or exchange
thereof) is registered on a subsequent record date established by notice given by mail
by or on behalf of the Company to the holders of bonds of 2008 Series J not less than
ten (10) days preceding such subsequent record date, which subsequent record date
shall be at least five (5) days prior to the payment date of such defaulted interest.
	 
	 	 
	 

	 	Bonds of 2008 Series J shall not be assignable or transferable except as may be set
forth under Section 405 of the Note Indenture or in the supplemental note indenture
relating to the Notes, or, subject to compliance with applicable law, as may be
involved in the course of the exercise of rights and remedies consequent upon an Event
of Default under the Note Indenture. Any such transfer shall be made upon surrender
thereof for cancellation at the office or agency of the Company in the Borough of
Manhattan, the City and State of New York, together with a written instrument of
transfer (if so required by the Company or by the Trustee) in form approved by the
Company duly executed by the holder or by its duly authorized attorney. Bonds of 2008
Series J shall in the same manner be exchangeable for a like aggregate principal
amount of bonds of 2008 Series J upon the terms and conditions specified herein and in
Section 7 of Article II of the Indenture. The Company waives its rights under Section
7 of Article II of the Indenture not to make exchanges or transfers of bonds of 2008
Series J during any period of ten (10) days next preceding any redemption date for
such bonds.
	 
	 	 
	 

	 	Bonds of 2008 Series J, in definitive and temporary form, may bear such legends as may
be necessary to comply with any law or with any rules or regulations made pursuant
thereto or as may be specified in the Note Indenture.
	 
	 	 
	 

	 	Upon payment of the principal or premium, if any, or interest on the Notes, whether at
maturity or prior to maturity by redemption or otherwise, or upon provision for the
payment thereof having been made in accordance with Article V of the Note Indenture,
bonds of 2008 Series J in a principal amount equal to the principal amount of such
Notes, shall, to the extent of such payment of principal, premium or interest, be
deemed fully paid and the obligation of the Company thereunder to make such payment
shall forthwith cease and be discharged, and, in the case of the payment of principal
and premium, if any, such bonds shall be surrendered for cancellation or presented for
appropriate notation to the Trustee.
	 
	 	 
	RELEASE.

	 	SECTION 2. From and after the Release Date (as defined in the Note Indenture), the
bonds of 2008 Series J shall be deemed fully paid, satisfied and discharged and the
obligation of the Company thereunder shall be terminated. On the Release Date, the
bonds of 2008 Series J shall be surrendered to and

13

 

	 	 	 
	 

	 	canceled by the Trustee. The
Company covenants and agrees that, prior to the Release Date, it will not take any
action that would cause the outstanding principal amount of the bonds of 2008 Series J
to be less than the then-outstanding principal amount of the Notes.
	 
	 	 
	REDEMPTION OF BONDS
OF 2008 SERIES J.

	SECTION 3. Bonds of 2008 Series J shall be redeemed on the respective dates and in the
respective principal amounts which correspond to the redemption dates for, and the
principal amounts to be redeemed of, the Notes.
	 
	 	 
	 

	 	In the event the Company elects to redeem any Notes prior to maturity in accordance
with the provisions of the Note Indenture, the Company shall give the Trustee notice
of redemption of bonds of 2008 Series J on the same date as it gives notice of
redemption of Notes to the Note Indenture Trustee.
	 
	 	 
	REDEMPTION OF BONDS
OF 2008 SERIES J IN
EVENT OF
ACCELERATION OF
NOTES.

	 	SECTION 4. In the event of an Event of Default under the Note Indenture and the
acceleration of all Notes, the bonds of 2008 Series J shall be redeemable in whole
upon receipt by the Trustee of a written demand (hereinafter called a “Redemption
Demand”) from the Note Indenture Trustee stating that there has occurred under the
Note Indenture both an Event of Default and a declaration of acceleration of payment
of principal, accrued interest and premium, if any, on the Notes, specifying the last
date to which interest on the Notes has been paid (such date being hereinafter
referred to as the “Initial Interest Accrual Date”) and demanding redemption of the
bonds of said series. The Trustee shall, within five (5) days after receiving such
Redemption Demand, mail a copy thereof to the Company marked to indicate the date of
its receipt by the Trustee. Promptly upon receipt by the Company of such copy of a
Redemption Demand, the Company shall fix a date on which it will redeem the bonds of
said series so demanded to be redeemed (hereinafter called the “Demand Redemption
Date”). Notice of the date fixed as the Demand Redemption Date shall be mailed by the
Company to the Trustee at least ten (10) days prior to such Demand Redemption Date.
The date to be fixed by the Company as and for the Demand Redemption Date may be any
date up to and including the earlier of (x) the 60th day after receipt by the Trustee
of the Redemption Demand or (y) the maturity date of such bonds first occurring
following the 20th day after the receipt by the Trustee of the Redemption Demand;
provided, however, that if the Trustee shall not have received such notice fixing the
Demand Redemption Date on or before the 10th day preceding the earlier of such dates,
the Demand Redemption Date shall be deemed to be the earlier of such dates. The
Trustee shall mail notice of the Demand Redemption Date (such notice being hereinafter
called the “Demand Redemption Notice”) to the Note Indenture Trustee not more than ten
(10) nor less than five (5) days prior to the Demand Redemption Date.
	 
	 	 
	 

	 	Each bond of 2008 Series J shall be redeemed by the Company on the Demand Redemption
Date therefor upon surrender thereof by the Note Indenture Trustee to the Trustee at a
redemption price equal to the principal amount thereof plus accrued interest thereon
at the rate specified for such bond from the Initial Interest Accrual Date to the
Demand Redemption Date plus an amount equal to the aggregate premium, if any, due and
payable on such Demand Redemption Date on all Notes; provided, however, that in the
event of a receipt by the Trustee of a notice that, pursuant to Section 602 of the
Note Indenture, the Note Indenture Trustee has terminated proceedings to enforce any
right under the Note Indenture, then any Redemption Demand shall

14

 

	 	 	 
	 
	 	 
	 

	 	thereby be rescinded
by the Note Indenture Trustee, and no Demand Redemption Notice shall be given, or, if
already given, shall be automatically annulled; but no such rescission or annulment
shall extend to or affect any subsequent default or impair any right consequent
thereon.
	 
	 	 
	 

	 	Anything herein contained to the contrary notwithstanding, the Trustee is not
authorized to take any action pursuant to a Redemption Demand and such Redemption
Demand shall be of no force or effect, unless it is executed in the name of the Note
Indenture Trustee by its President or one of its Vice Presidents.
	 
	 	 
	FORM
OF BONDS OF
2008 SERIES J.

	 	SECTION 5. The bonds of 2008 Series J (including the reverse thereof) and the form of
Trustee’s Certificate to be endorsed on such bonds shall be substantially in the
following forms, respectively:
	 
	 	 
	 

	 	THE DETROIT EDISON COMPANY

GENERAL AND REFUNDING MORTGAGE BOND

2008 SERIES J
	 
	 	 
	 

	 	Notwithstanding any provisions hereof or in the Indenture, this bond is not assignable
or transferable except as may be required to effect a transfer to any successor
trustee under the Collateral Trust Indenture, dated as of June 30, 1993, as amended,
and as further supplemented by the supplemental indenture thereto dated as of
October 1, 2008, between The Detroit Edison Company and The Bank of New York Mellon
Trust Company, N.A., as Note Indenture Trustee, or, subject to compliance with
applicable law, as may be involved in the course of the exercise of rights and
remedies consequent upon an Event of Default under said Indenture.
	 
	 	 

	 	 	 	 	 
	 

	 	$                                        
	 	No. R-                    

	 	 	 
	 

	 	THE DETROIT EDISON COMPANY (hereinafter called the “Company”), a corporation of the
State of Michigan, for value received, hereby promises to pay to The Bank of New York
Mellon Trust Company, N. A., as Note Indenture Trustee, or registered assigns, at the
Company’s office or agency in the Borough of Manhattan, the City and State of New
York, the principal sum of               
                  
        Dollars ($        
      
                    
      ) in lawful money
of the United States of America on October 1, 2013 (subject to earlier redemption or
release) and interest thereon at the rate of 6.40% per annum, in like lawful money,
from October 10, 2008, and after the first payment of interest on bonds of this Series
has been made or otherwise provided for, from the most recent date to which interest
has been paid or otherwise provided for, semi-annually on April 1 and October 1 of
each year (commencing April 1, 2009), until the Company’s obligation with respect to
payment of said principal shall have been discharged, all as provided, to the extent
and in the manner specified in the Indenture hereinafter mentioned and in the
supplemental indenture pursuant to which this bond has been issued.
	 
	 	 
	 

	 	Under a Collateral Trust Indenture, dated as of June 30, 1993, as amended and as
further supplemented as of October 1, 2008 (hereinafter called the “Note Indenture”),
between the Company and The Bank of New York Mellon Trust Company, N.A., as successor
trustee (hereinafter called the “Note Indenture Trustee”), the Company has issued its
2008 Series J 6.40% Senior Notes due

15

 

	 	 	 
	 

	 	2013 (the “Notes”). This bond was originally
issued to the Note Indenture Trustee so as to secure the payment of the Notes.
Payments of principal of, or premium, if any, or interest on, the Notes shall
constitute like payments on this bond as further provided herein and in the
supplemental indenture pursuant to which this bond has been issued.
	 
	 	 
	 

	 	Reference is hereby made to such further provisions of this bond set forth on the
reverse hereof and such provisions shall for all purposes have the same effect as
though set forth in this place. 
	 
	 	 
	 

	 	
This bond shall not be valid or become obligatory for any purpose until The Bank of
New York Mellon Trust Company, N.A., the Trustee under the Indenture, or its successor
thereunder, shall have signed the form of certificate endorsed hereon.
	 
	 	 
	 

	 	IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY has caused this instrument to be
executed by an authorized officer, with his or her manual or facsimile signatures, and
its corporate seal, or a facsimile thereof, to be impressed or imprinted hereon and
the same to be attested by its Corporate Secretary or Assistant Corporate Secretary by
manual or facsimile signature.
	 
	 	 
	 

	 	Dated:                                         

	 	 	 	 	 
	 	THE DETROIT EDISON COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 	 	 
	 	 	[Corporate Seal]	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

	 	 	 
	 

	 	[FORM OF TRUSTEE’S CERTIFICATE]
	 
	 	 
	FORM OF TRUSTEE’S
CERTIFICATE.

	 	This bond is one of the bonds, of the series designated therein, described in the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON 

TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	

 	 
	 	 	Authorized Representative 	 
	 	 	 	 
	 

	 	 	 
	 

	 	[FORM OF REVERSE OF BOND]
	 
	 	 
	FORM OF REVERSE OF 

BOND

	 	This bond is one of an authorized issue of bonds of the Company, unlimited as

16

 

	 	 	 
	 

	 	to
amount except as provided in the Indenture hereinafter mentioned or any indentures
supplemental thereto, and is one of a series of General and Refunding Mortgage Bonds
known as 2008 Series J, limited to an aggregate principal amount of $250,000,000,
except as otherwise provided in the Indenture hereinafter mentioned. This bond and
all other bonds of said series are issued and to be issued under, and are all equally
and ratably secured (except insofar as any sinking, amortization, improvement or
analogous fund, established in accordance with the provisions of the Indenture
hereinafter mentioned, may afford additional security for the bonds of any particular
series and except as provided in Section 3 of Article VI of said Indenture) by an
Indenture, dated as of October 1, 1924, duly executed by the Company to The Bank of
New York Mellon Trust Company, N.A., as successor Trustee, to which Indenture and all
indentures supplemental thereto (including the Supplemental Indenture dated as of
October 1, 2008) reference is hereby made for a description of the properties and
franchises mortgaged and conveyed, the nature and extent of the security, the terms
and conditions upon which the bonds are issued and under which additional bonds may be
issued, and the rights of the holders of the bonds and of the Trustee in respect of
such security (which Indenture and all indentures supplemental thereto, including the
Supplemental Indenture dated as of October 1, 2008, are hereinafter collectively
called the “Indenture”). As provided in the Indenture, said bonds may be for various
principal sums and are issuable in series, which may mature at different times, may
bear interest at different rates and may otherwise vary as in said Indenture provided.
With the consent of the Company and to the extent permitted by and as provided in the
Indenture, the rights and obligations of the Company and of the holders of the bonds
and the terms and provisions of the Indenture, or of any indenture supplemental
thereto, may be modified or altered in certain respects by affirmative vote of at
least eighty-five percent (85%) in amount of the bonds then outstanding, and, if the
rights of one or more, but less than all, series of bonds then outstanding are to be
affected by the action proposed to be taken, then also by affirmative vote of at least
eighty-five percent (85%) in amount of the series of bonds so to be affected
(excluding in every instance bonds disqualified from voting by reason of the Company’s
interest therein as specified in the Indenture); provided, however, that, without the
consent of the holder hereof, no such modification or alteration shall, among other
things, affect the terms of payment of the principal of or the interest on this bond,
which in those respects is unconditional.
	 
	 	 
	 

	 	This bond is redeemable prior to the Release Date upon the terms and conditions set
forth in the Indenture, including provision for redemption upon demand of the Note
Indenture Trustee following the occurrence of an Event of Default under the Note
Indenture and the acceleration of the principal of the Notes.
	 
	 	 
	 

	 	Under the Indenture, funds may be deposited with the Trustee (which shall have become
available for payment), in advance of the redemption date of any of the bonds of 2008
Series J (or portions thereof), in trust for the redemption of such bonds (or portions
thereof) and the interest due or to become due thereon, and thereupon all obligations
of the Company in respect of such bonds (or portions thereof) so to be redeemed and
such interest shall cease and be discharged, and the holders thereof shall thereafter
be restricted exclusively to such funds for any and all claims of whatsoever nature on
their part under the

17

 

	 	 	 
	 

	 	Indenture or with respect to such bonds (or portions thereof) and
interest.
	 
	 	 
	 

	 	In case an event of default, as defined in the Indenture, shall occur, the principal
of all the bonds issued thereunder may become or be declared due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.
	 
	 	 
	 

	 	Upon payment of the principal of, or premium, if any, or interest on, the Notes,
whether at maturity or prior to maturity by redemption or otherwise or upon provision
for the payment thereof having been made in accordance with Article V of the Note
Indenture, bonds of 2008 Series J in a principal amount equal to the principal amount
of such Notes, and having both a corresponding maturity date and interest rate shall,
to the extent of such payment of principal, premium or interest, be deemed fully paid
and the obligation of the Company thereunder to make such payment shall forthwith
cease and be discharged, and, in the case of the payment of principal and premium, if
any, such bonds of said series shall be surrendered for cancellation or presented for
appropriate notation to the Trustee.
	 
	 	 
	 

	 	This bond is not assignable or transferable except as set forth under Section 405 of
the Note Indenture or in the supplemental indenture relating to the Notes, or, subject
to compliance with applicable law, as may be involved in the course of the exercise of
rights and remedies consequent upon an Event of Default under the Note Indenture. Any
such transfer shall be made by the registered holder hereof, in person or by his
attorney duly authorized in writing, on the books of the Company kept at its office or
agency in the Borough of Manhattan, the City and State of New York, upon surrender and
cancellation of this bond, and thereupon, a new registered bond of the same series of
authorized denominations for a like aggregate principal amount will be issued to the
transferee in exchange therefor, and this bond with others in like form may in like
manner be exchanged for one or more new bonds of the same series of other authorized
denominations, but of the same aggregate principal amount, all as provided and upon
the terms and conditions set forth in the Indenture, and upon payment, in any event,
of the charges prescribed in the Indenture.
	 
	 	 
	 

	 	From and after the Release Date (as defined in the Note Indenture), the bonds of 2008
Series J shall be deemed fully paid, satisfied and discharged and the obligation of
the Company thereunder shall be terminated. On the Release Date, the bonds of 2008
Series J shall be surrendered to and cancelled by the Trustee. The Company covenants
and agrees that, prior to the Release Date, it will not take any action that would
cause the outstanding principal amount of the bond of 2008 Series J to be less than
the then outstanding principal amount of the Notes.
	 
	 	 
	 

	 	No recourse shall be had for the payment of the principal of or the interest on this
bond, or for any claim based hereon or otherwise in respect hereof or of the
Indenture, or of any indenture supplemental thereto, against any incorporator, or
against any past, present or future stockholder, director or officer, as such, of the
Company, or of any predecessor or successor corporation, either directly or through
the Company or any such predecessor or successor corporation, whether for amounts
unpaid on stock subscriptions or by virtue of any constitution, statute or rule of
law, or by the enforcement of

18

 

	 	 	 
	

	 	any assessment or penalty or otherwise howsoever; all
such liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released by every holder or owner hereof, as
more fully provided in the Indenture.
	 
	 	 
	 

	 	PART II.
	 
	 	 
	 

	 	RECORDING AND FILING DATA
	 
	 	 

	 	 	 
	RECORDING AND FILING OF ORIGINAL
INDENTURE.

	 	The Original Indenture and indentures
supplemental thereto have been
recorded and/or filed and Certificates
of Provision for Payment have been
recorded as hereinafter set forth.
	 
	 	 
	 

	 	The Original Indenture has been
recorded as a real estate mortgage and
filed as a chattel Mortgage in the
offices of the respective Registers of
Deeds of certain counties in the State
of Michigan as set forth in the
Supplemental Indenture dated as of
September 1, 1947, has been recorded
as a real estate mortgage in the
office of the Register of Deeds of
Genesee County, Michigan as set forth
in the Supplemental Indenture dated as
of May 1, 1974, has been filed in the
Office of the Secretary of State of
Michigan on November 16, 1951 and has
been filed and recorded in the office
of the Interstate Commerce Commission
on December 8, 1969.
	 
	 	 
	RECORDING AND FILING OF
SUPPLEMENTAL INDENTURES.

	 	Pursuant to the terms and provisions
of the Original Indenture, indentures
supplemental thereto heretofore
entered into have been Recorded as a
real estate mortgage and/or filed as a
chattel mortgage or as a financing
statement in the offices of the
respective Registers of Deeds of
certain counties in the State of
Michigan, the Office of the Secretary
of State of Michigan and the Office of
the Interstate Commerce Commission or
the Surface Transportation Board, as
set forth in supplemental indentures
as follows:

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	June 1, 1925(a)(b)

	 	Series B Bonds
	 	February 1, 1940
	August 1, 1927(a)(b)

	 	Series C Bonds
	 	February 1, 1940
	February 1, 1931(a)(b)

	 	Series D Bonds
	 	February 1, 1940
	June 1, 1931(a)(b)

	 	Subject Properties
	 	February 1, 1940
	October 1, 1932(a)(b)

	 	Series E Bonds
	 	February 1, 1940
	September 25, 1935(a)(b)

	 	Series F Bonds
	 	February 1, 1940
	September 1, 1936(a)(b)

	 	Series G Bonds
	 	February 1, 1940
	November 1, 1936(a)(b)

	 	Subject Properties
	 	February 1, 1940
	February 1, 1940(a)(b)

	 	Subject Properties
	 	September 1, 1947
	December 1, 1940(a)(b)

	 	Series H Bonds and Additional
Provisions
	 	September 1, 1947
	September 1, 1947(a)(b)(c)

	 	Series I Bonds, Subject
Properties and Additional
Provisions
	 	November 15, 1951
	March 1, 1950(a)(b)(c)

	 	Series J Bonds and Additional
Provisions
	 	November 15, 1951

19

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	November 15, 1951(a)(b)(c)

	 	Series K Bonds, Additional
Provisions and Subject Properties
	 	January 15, 1953
	January 15, 1953(a)(b)

	 	Series L Bonds
	 	May 1, 1953
	May 1, 1953(a)

	 	Series M Bonds and Subject
Properties
	 	March 15, 1954
	March 15, 1954(a)(c)

	 	Series N Bonds and Subject
Properties
	 	May 15, 1955
	May 15, 1955(a)(c)

	 	Series O Bonds and Subject
Properties
	 	August 15, 1957
	August 15, 1957(a)(c)

	 	Series P Bonds, Additional
Provisions and Subject Properties
	 	June 1, 1959
	June 1, 1959(a)(c)

	 	Series Q Bonds and Subject
Properties
	 	December 1, 1966
	December 1, 1966(a)(c)

	 	Series R Bonds, Additional
Provisions and Subject Properties
	 	October 1, 1968
	October 1, 1968(a)(c)

	 	Series S Bonds and Subject
Properties
	 	December 1, 1969
	December 1, 1969(a)(c)

	 	Series T Bonds and Subject
Properties
	 	July 1, 1970
	July 1, 1970(c)

	 	Series U Bonds and Subject
Properties
	 	December 15, 1970
	December 15, 1970(c)

	 	Series V Bonds and Series W Bonds
	 	June 15, 1971
	June 15, 1971(c)

	 	Series X Bonds and Subject
Properties
	 	November 15, 1971
	November 15, 1971(c)

	 	Series Y Bonds and Subject
Properties
	 	January 15, 1973
	January 15, 1973(c)

	 	Series Z Bonds and Subject
Properties
	 	May 1, 1974
	May 1, 1974

	 	Series AA Bonds and Subject
Properties
	 	October 1, 1974
	October 1, 1974

	 	Series BB Bonds and Subject
Properties
	 	January 15, 1975
	January 15, 1975

	 	Series CC Bonds and Subject
Properties
	 	November 1, 1975
	November 1, 1975

	 	Series DDP Nos. 1-9 Bonds and
Subject Properties
	 	December 15, 1975
	December 15, 1975

	 	Series EE Bonds and Subject
Properties
	 	February 1, 1976
	February 1, 1976

	 	Series FFR Nos. 1-13 Bonds
	 	June 15, 1976
	June 15, 1976

	 	Series GGP Nos. 1-7 Bonds and
Subject Properties
	 	July 15, 1976
	July 15, 1976

	 	Series HH Bonds and Subject
Properties
	 	February 15, 1977

20

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	February 15, 1977

	 	Series MMP Bonds and Subject
Properties
	 	March 1, 1977
	March 1, 1977

	 	Series IIP Nos. 1-7 Bonds, Series
	 	June 15, 1977
	 

	 	JJP Nos. 1-7 Bonds, Series KKP	 	 
	 

	 	Nos. 1-7 Bonds and Series LLP	 	 
	 

	 	Nos. 1-7 Bonds	 	 
	June 15, 1977

	 	Series FFR No. 14 Bonds and
	 	July 1, 1977
	 

	 	Subject Properties	 	 
	July 1, 1977

	 	Series NNP Nos. 1-7 Bonds and
	 	October 1, 1977
	 

	 	Subject Properties	 	 
	October 1, 1977

	 	Series GGP Nos. 8-22 Bonds and
	 	June 1, 1978
	 

	 	Series OOP Nos. 1-17 Bonds and	 	 
	 

	 	Subject Properties	 	 
	June 1, 1978

	 	Series PP Bonds, Series QQP Nos.
1-9 Bonds and Subject Properties
	 	October 15, 1978
	October 15, 1978

	 	Series RR Bonds and Subject
	 	March 15, 1979
	 

	 	Properties	 	 
	March 15, 1979

	 	Series SS Bonds and Subject
Properties
	 	July 1, 1979
	July 1, 1979

	 	Series IIP Nos. 8-22 Bonds,
	 	September 1, 1979
	 

	 	Series NNP Nos. 8-21 Bonds and	 	 
	 

	 	Series TTP Nos. 1-15 Bonds and	 	 
	 

	 	Subject Properties	 	 
	September 1, 1979

	 	Series JJP No. 8 Bonds, Series
	 	September 15, 1979
	 

	 	KKP No. 8 Bonds,
Series LLP Nos. 8-15 Bonds, Series MMP No. 2 Bonds and Series OOP No. 18 Bonds
and Subject Properties	 	 
	September 15, 1979

	 	Series UU Bonds
	 	January 1, 1980
	January 1, 1980

	 	1980 Series A Bonds and Subject
Properties
	 	April 1, 1980
	April 1, 1980

	 	1980 Series B Bonds
	 	August 15, 1980
	August 15, 1980

	 	Series QQP Nos. 10-19 Bonds,
1980 Series CP Nos. 1-12 Bonds and 1980 Series DP No. 1-11
Bonds and Subject Properties
	 	August 1, 1981
	August 1, 1981

	 	1980 Series CP Nos. 13-25 Bonds
and Subject Properties
	 	November 1, 1981
	November 1, 1981

	 	1981 Series AP Nos. 1-12 Bonds
	 	June 30, 1982
	June 30, 1982

	 	Article XIV Reconfirmation
	 	August 15, 1982
	August 15, 1982

	 	1981 Series AP Nos. 13-14 Bonds
and Subject Properties
	 	June 1, 1983
	June 1, 1983

	 	1981 Series AP Nos. 15-16 Bonds
and Subject Properties
	 	October 1, 1984

21

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	October 1, 1984

	 	1984 Series AP Bonds and 1984
	 	May 1, 1985
	 

	 	Series BP Bonds and Subject
Properties	 	 
	May 1, 1985

	 	1985 Series A Bonds
	 	May 15, 1985
	May 15, 1985

	 	1985 Series B Bonds and Subject
Properties
	 	October 15, 1985
	October 15, 1985

	 	Series KKP No. 9 Bonds and
Subject Properties
	 	April 1, 1986
	April 1, 1986

	 	1986 Series A Bonds and Subject
Properties
	 	August 15, 1986
	August 15, 1986

	 	1986 Series B Bonds and Subject
Properties
	 	November 30, 1986
	November 30, 1986

	 	1986 Series C Bonds
	 	January 31, 1987
	January 31, 1987

	 	1987 Series A Bonds
	 	April 1, 1987
	April 1, 1987

	 	1987 Series B Bonds and 1987
Series C Bonds
	 	August 15, 1987
	August 15, 1987

	 	1987 Series D Bonds, 1987 Series
	 	November 30, 1987
	 

	 	E Bonds and Subject Properties	 	 
	November 30, 1987

	 	1987 Series F Bonds
	 	June 15, 1989
	June 15, 1989

	 	1989 Series A Bonds
	 	July 15, 1989
	July 15, 1989

	 	Series KKP No. 10 Bonds
	 	December 1, 1989
	December 1, 1989

	 	Series KKP No. 11 Bonds
and 1989 Series BP Bonds
	 	February 15, 1990
	February 15, 1990

	 	1990 Series A Bonds, 1990 Series
	 	November 1, 1990
	 

	 	B Bonds, 1990 Series C Bonds,	 	 
	 

	 	1990 Series D Bonds, 1990 Series	 	 
	 

	 	E Bonds and 1990 Series F Bonds	 	 
	November 1, 1990

	 	Series KKP No. 12 Bonds
	 	April 1, 1991
	April 1, 1991

	 	1991 Series AP Bonds
	 	May 1, 1991
	May 1, 1991

	 	1991 Series BP Bonds and 1991
	 	May 15, 1991
	 

	 	Series CP Bonds	 	 
	May 15, 1991

	 	1991 Series DP Bonds
	 	September 1, 1991
	September 1, 1991

	 	1991 Series EP Bonds
	 	November 1, 1991
	November 1, 1991

	 	1991 Series FP Bonds
	 	January 15, 1992
	January 15, 1992

	 	1992 Series BP Bonds
	 	February 29, 1992 and April 15,
1992
	February 29, 1992

	 	1992 Series AP Bonds
	 	April 15, 1992
	April 15, 1992

	 	Series KKP No. 13 Bonds
	 	July 15, 1992
	July 15, 1992

	 	1992 Series CP Bonds
	 	November 30, 1992
	July 31, 1992

	 	1992 Series D Bonds
	 	November 30, 1992
	November 30, 1992

	 	1992 Series E Bonds and 1993
Series B Bonds
	 	March 15, 1993
	December 15, 1992

	 	Series KKP No. 14 Bonds
and 1989 Series BP No. 2 Bonds
	 	March 15, 1993

22

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	January 1, 1993

	 	1993 Series C Bonds
	 	April 1, 1993
	March 1, 1993

	 	1993 Series E Bonds
	 	June 30, 1993
	March 15, 1993

	 	1993 Series D Bonds
	 	September 15, 1993
	April 1, 1993

	 	1993 Series FP Bonds and 1993
	 	September 15, 1993
	 

	 	Series IP Bonds	 	 
	April 26, 1993

	 	1993 Series G Bonds and 

Amendment of Article II, Section
5
	 	September 15, 1993
	May 31, 1993

	 	1993 Series J Bonds
	 	September 15, 1993
	June 30, 1993

	 	1993 Series AP Bonds
	 	(d)
	June 30, 1993

	 	1993 Series H Bonds
	 	(d)
	September 15, 1993

	 	1993 Series K Bonds
	 	March 1, 1994
	March 1, 1994

	 	1994 Series AP Bonds
	 	June 15, 1994
	June 15, 1994

	 	1994 Series BP Bonds
	 	December 1, 1994
	August 15, 1994

	 	1994 Series C Bonds
	 	December 1, 1994
	December 1, 1994

	 	Series KKP No. 15 Bonds and 1994
Series DP Bonds
	 	August 1, 1995
	August 1, 1995

	 	1995 Series AP Bonds and 1995
Series BP Bonds
	 	August 1, 1999
	August 1, 1999

	 	1999 Series AP Bonds, 1999 Series
BP Bonds and 1999 Series CP Bonds
	 	(d)
	August 15, 1999

	 	1999 Series D Bonds
	 	(d)
	January 1, 2000

	 	2000 Series A Bonds
	 	(d)
	April 15, 2000

	 	Appointment of Successor Trustee
	 	(d)
	August 1, 2000

	 	2000 Series BP Bonds
	 	(d)
	March 15, 2001

	 	2001 Series AP Bonds
	 	(d)
	May 1, 2001

	 	2001 Series BP Bonds
	 	(d)
	August 15, 2001

	 	2001 Series CP Bonds
	 	(d)
	September 15, 2001

	 	2001 Series D Bonds and 2001
Series E Bonds
	 	(d)
	September 17, 2002

	 	Amendment of Article XIII,
Section 3 and Appointment of
Successor Trustee
	 	(d)
	October 15, 2002

	 	2002 Series A Bonds and 2002
Series B Bonds
	 	(d)
	December 1, 2002

	 	2002 Series C Bonds and 2002
Series D Bonds
	 	(d)
	August 1, 2003

	 	2003 Series A Bonds
	 	(d)
	March 15, 2004

	 	2004 Series A Bonds and 2004
Series B Bonds
	 	(d)
	July 1, 2004

	 	2004 Series D Bonds
	 	(d)
	February 1, 2005

	 	2005 Series A Bonds and 2005
Series B Bonds
	 	May 15, 2006

23

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	April 1, 2005

	 	2005 Series AR Bonds and 2005
Series BR Bonds
	 	May 15, 2006
	August 1, 2005

	 	2005 Series DT Bonds
	 	May 15, 2006
	September 15, 2005

	 	2005 Series C Bonds
	 	May 15, 2006
	September 30, 2005

	 	2005 Series E Bonds
	 	May 15, 2006
	May 15, 2006

	 	2006 Series A Bonds
	 	December 1, 2006
	December 1, 2006

	 	2006 Series CT Bonds
	 	December 1, 2007
	December 1, 2007

	 	2007 Series A Bonds
	 	April 1, 2008
	April 1, 2008

	 	2008 Series DT Bonds
	 	May 1, 2008
	May 1, 2008

	 	2008 Series ET Bonds
	 	July 1, 2008
	June 1, 2008

	 	2008 Series G Bonds
	 	October 1, 2008
	July 1, 2008

	 	2008 Series KT Bonds
	 	October 1, 2008

 

			
	(a)	 	See Supplemental Indenture dated as of July 1, 1970 for Interstate Commerce Commission
filing and recordation information.
	 
	(b)	 	See Supplemental Indenture dated as of May 1, 1953 for Secretary of State of Michigan
filing information.
	 
	(c)	 	See Supplemental Indenture dated as of May 1, 1974 for County of Genesee, Michigan
recording and filing information.
	 
	(d)	 	Recording and filing information for this Supplemental Indenture has not been set forth
in a subsequent Supplemental Indenture.

	 	 	 
	RECORDING AND FILING OF SUPPLEMENTAL
INDENTURE DATED AS OF JUNE 1, 2008.

	 	Further, pursuant to the terms and
provisions of the Original
Indenture, a Supplemental Indenture
dated as of June 1, 2008 providing
for the terms of bonds to be issued
thereunder of 2008 Series G has
heretofore been entered into between
the Company and the Trustee and has
been filed in the Office of the
Secretary of State of Michigan as a
financing statement on June 12, 2008
(Filing No. 2008093593-4), has been
filed and recorded in the Office of
the Surface Transportation Board
(Recordation No. 5485-SSSSS) on June
11, 2008, and has been recorded as a
real estate mortgage in the offices
of the respective Register of Deeds
of certain counties in the State of
Michigan, as follows:

	 	 	 	 	 	 	 
	 	 	 	 	Liber/               	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Genesee
	 	6/13/08	 	200806130047816	 	N/A
	Huron
	 	6/12/08	 	1247	 	14
	Ingham
	 	6/12/08	 	3309	 	1205
	Lapeer
	 	6/12/08	 	2335	 	673
	Lenawee
	 	6/11/08	 	2366	 	896
	Livingston
	 	6/11/08	 	2008R018716	 	N/A
	Macomb
	 	6/12/08	 	19375	 	148
	Mason
	 	6/11/08	 	2008R03376	 	N/A
	Monroe
	 	6/11/08	 	2008R11950	 	N/A
	Oakland
	 	6/11/08	 	40385	 	186
	St. Clair
	 	6/11/08	 	3853	 	582

24

 

	 	 	 	 	 	 	 
	 	 	 	 	Liber/     	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Sanilac
	 	6/11/08	 	1036	 	446
	Tuscola
	 	6/25/08	 	200800909496	 	N/A
	 
	 	 	 	or 1152	 	975
	Washtenaw
	 	6/11/08	 	4685	 	866
	Wayne
	 	6/11/08	 	47285	 	832

	 	 	 
	RECORDING AND FILING OF SUPPLEMENTAL
INDENTURE DATED AS OF JULY 1, 2008.

	 	Further, pursuant to the terms and
provisions of the Original
Indenture, a Supplemental Indenture
dated as of July 1, 2008 providing
for the terms of bonds to be issued
thereunder of 2008 Series KT has
heretofore been entered into between
the Company and the Trustee and has
been filed in the Office of the
Secretary of State of Michigan as a
financing statement on July 3, 2008
(Filing No. 2008105821-4), has been
filed and recorded in the Office of
the Surface Transportation Board
(Recordation No. 5485-TTTTT) on July
8, 2008, and has been recorded as a
real estate mortgage in the offices
of the respective Register of Deeds
of certain counties in the State of
Michigan, as follows:

	 	 	 	 	 	 	 
	 	 	 	 	Liber/                	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Genesee
	 	7/07/08	 	200807070051942	 	N/A
	Huron
	 	7/03/08	 	1250	 	286
	Ingham
	 	7/07/08	 	3312	 	521
	Lapeer
	 	7/03/08	 	2338	 	972
	Lenawee
	 	7/03/08	 	2368	 	237
	Livingston
	 	7/03/08	 	2008R020847	 	N/A
	Macomb
	 	7/21/08	 	19421	 	808
	Mason
	 	7/03/08	 	2008R03743	 	N/A
	Monroe
	 	7/03/08	 	2008R13393	 	N/A
	Oakland
	 	7/08/08	 	40440	 	057
	St. Clair
	 	7/03/08	 	3859	 	691
	Sanilac
	 	7/03/08	 	1038	 	702
	Tuscola
	 	7/03/08	 	200800909796	 	N/A
	 
	 	 	 	or 1153	 	510
	Washtenaw
	 	7/03/08	 	4689	 	542
	Wayne
	 	7/03/08	 	47330	 	1198

	 	 	 
	RECORDING OF CERTIFICATES OF
PROVISION FOR PAYMENT.

	 	All the bonds of Series A which were
issued under the Original Indenture
dated as of October 1, 1924, and of
Series B, Series C, Series D,
Series E, Series F, Series G,
Series H, Series I, Series J,
Series K, Series L, Series M,
Series N, Series O, Series P,
Series Q, Series R, Series S,
Series T, Series U, Series V,
Series W, Series X, Series Y,
Series Z, Series AA, Series BB,
Series CC, Series DDP Nos. 1-9,
Series EE, Series FFR Nos. 1-13,
Series GGP Nos. 1-7, Series HH,
Series MMP, Series  IP Nos. 1-7,
Series JJP Nos. 1-7, Series KKP
Nos. 1-7, Series LLP Nos. 1-7,
Series FFR No. 14, Series NNP
Nos. 1-7, Series GGP Nos. 8-22,
Series OOP Nos. 1-17, Series PP,
Series QQP Nos. 1-9, Series RR,
Series SS, Series IIP Nos. 8-22,
Series NNP Nos. 8-21, Series TTP
Nos. 1-15, Series JJP No. 8,
Series KKP No. 8, Series LLP
Nos. 8-15, Series MMP No. 2,
Series OOP No. 18, Series UU, 1980
Series A, 1980

25

 

	 	 	 
	 

	 	Series B, Series QQP
Nos. 10-19, 1980 Series CP
Nos. 1-12, 1980 Series DP Nos. 1-11,
1980 Series CP Nos. 13-25, 1981
Series AP Nos. 1-12, 1981 Series AP
Nos. 13-14, 1981 Series AP
Nos. 15-16, 1984 Series AP, 1984
Series BP, 1985 Series A, 1985
Series B, Series KKP No. 9, 1986
Series A, 1986 Series B, 1986
Series C, 1987 Series A, 1987
Series B, 1987 Series C, 1987
Series D, 1987 Series E, 1987
Series F, 1989 Series A, Series KKP
No. 10, Series KKP No. 11, 1989
Series BP, 1990 Series A, 1990
Series D, 1991 Series EP, 1991
Series FP, 1992 Series BP, Series
KKP No. 13, 1992 Series CP, 1992
Series D, Series KKP No. 14, 1989
Series BP No. 2, 1993 Series B, 1993
Series C, 1993, 1993 Series H, 1993
Series E, 1993 Series D, 1993
Series FP, 1993 Series IP, 1993
Series G, 1993 Series J, 1993
Series K, 1994 Series
 AP, 1994
Series BP, 1994 Series C, Series
KKP No. 15, 1994 Series DP, 1995
Series AP, 1995 Series BP, 1999
Series D, 2000 Series A, 2001
Series D, 2005 Series A, and 2005
Series B, which were issued under
Supplemental Indentures as described
in the Recording and Filing of
Supplemental Indentures section
above, have matured or have been
called for redemption and funds
sufficient for such payment or
redemption have been irrevocably
deposited with the Trustee for that
purpose; and Certificates of
Provision for Payment have been
recorded in the offices of the
respective Registers of Deeds of
certain counties in the State of
Michigan, with respect to all bonds
of Series A, B, C, D, E, F, G, H, K,
L, M, O, W, BB, CC, DDP Nos. 1 and
2, FFR Nos. 1-3, GGP Nos. 1 and 2,
IIP No. 1, JJP No. 1, KKP No. 1, LLP
No. 1 and GGP No. 8.

	 	 	 
	 

	 	PART III.
	 
	 	 
	 

	 	THE TRUSTEE.
	 
	 	 
	TERMS AND CONDITIONS OF ACCEPTANCE
OF TRUST BY TRUSTEE.

	 	The Trustee hereby accepts the trust
hereby declared and provided, and
agrees to perform the same upon the
terms and conditions in the Original
Indenture, as amended to date and as
supplemented by this Supplemental
Indenture, and in this Supplemental
Indenture set forth, and upon the
following terms and conditions:
	 
	 	 
	 

	 	The Trustee shall not be responsible
in any manner whatsoever for and in
respect of the validity or
sufficiency of this Supplemental
Indenture or the due execution
hereof by the Company or for or in
respect of the recitals contained
herein, all of which recitals are
made by the Company solely.
	 
	 	 
	 

	 	PART IV.
	 
	 	 
	 

	 	MISCELLANEOUS.
	 
	 	 
	CONFIRMATION OF SECTION 318(c) OF
TRUST INDENTURE ACT.

	 	Except to the extent specifically
provided therein, no provision of
this Supplemental Indenture or any
future supplemental indenture is
intended to modify, and the parties
do hereby adopt and confirm, the
provisions of Section 318(c) of the
Trust Indenture Act which amend and
supersede provisions of the
Indenture in effect prior to
November 15, 1990.
	 
	 	 
	EXECUTION IN COUNTERPARTS.

	 	THIS SUPPLEMENTAL INDENTURE MAY BE
SIMULTANEOUSLY EXECUTED IN ANY
NUMBER OF COUNTERPARTS, EACH OF
WHICH WHEN SO EXECUTED SHALL BE
DEEMED TO BE AN ORIGINAL; BUT SUCH
COUNTERPARTS SHALL TOGETHER
CONSTITUTE BUT ONE

26

 

	 	 	 
	 

	 	AND THE SAME
INSTRUMENT.
	 
	 	 
	TESTIMONIUM.

	 	IN WITNESS WHEREOF, THE DETROIT
EDISON COMPANY AND THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A. HAVE
CAUSED THESE PRESENTS TO BE SIGNED
IN THEIR RESPECTIVE CORPORATE NAMES
BY THEIR RESPECTIVE CHAIRMEN OF THE
BOARD, PRESIDENTS, VICE PRESIDENTS,
ASSISTANT VICE PRESIDENTS,
TREASURERS OR ASSISTANT TREASURERS
AND IMPRESSED WITH THEIR RESPECTIVE
CORPORATE SEALS, ATTESTED BY THEIR
RESPECTIVE SECRETARIES OR ASSISTANT
SECRETARIES, ALL AS OF THE DAY AND
YEAR FIRST ABOVE WRITTEN.

27

 

	 	 	 	 	 
	EXECUTION BY
COMPANY.	 	THE DETROIT EDISON COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/Paul A. Stadnikia
	 

	 	 	 	 
	(Corporate Seal)

	 	Name:
	 	Paul A. Stadnikia
	 

	 	Title:
	 	Assistant Treasurer

	 	 	 	 	 	 	 
	 

	 	Attest:
	 	 
 

 
	 	 
	 

	 	By:

Name:
	 	/s/Sharon L. Sabat
 

Sharon L. Sabat
	 	 
	 

	 	Title:
	 	Assistant Corporate Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	Signed, sealed and delivered by

THE DETROIT EDISON COMPANY

in the presence of	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Kathleen M. Hier	 	 
	 	 	 	 	 
	 	 	Name: Kathleen M. Hier	 	 
	 
	 	 	 	 	 	 
	 	 	/s/John P. Demody, Jr	 	 
	 	 	 	 	 
	 	 	Name: John P. Dermody Jr.	 	 

28

 

	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN
	)	 		 
	 

	 	 	) SS	

	 

	 	COUNTY OF WAYNE
	)	 	 	 

	 	 	 
	ACKNOWLEDGMENT OF EXECUTION
BY
COMPANY.

	 	On this 9th day of October 2008, before me,
the subscriber, a Notary Public within and
for the County of Wayne, in the State of
Michigan, personally appeared Paul A.
Stadnikia, to me personally known, who,
being by me duly sworn, did say that he
does business at 2000 2nd Avenue, Detroit,
Michigan 48226 and is the Assistant
Treasurer of THE DETROIT EDISON COMPANY,
one of the corporations described in and
which executed the foregoing instrument;
that he knows the corporate seal of the
said corporation and that the seal affixed
to said instrument is the corporate seal of
said corporation; and that said instrument
was signed and sealed in behalf of said
corporation by authority of its Board of
Directors and that he subscribed his name
thereto by like authority; and said Paul A.
Stadnikia acknowledged said instrument to
be the free act and deed of said
corporation.
	 
	 	 
	(Notarial Seal)

	 	/s/Stephanie V. Washio
	 

	 	 

	 

	 	Stephanie V. Washio, Notary Public
	 

	 	County of Wayne, State of Michigan
	 

	 	My Commission Expires: May 18, 2012

29

 

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

	 	By:
	 	/s/Joseph A. Brassard III
	 

	 	 	 	 
	(Corporate Seal)

	 	Name:
	 	Joseph A. Brassard III
	 

	 	Title:
	 	Vice President

	 	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/Alexis M. Johnson
 

Alexis M. Johnson 

Authorized Representative
	 	 
	 
	 	 	 	 	 	 
	 	 	Signed, sealed and delivered by

THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A.

in the presence of	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Anthony G. Morrow	 	 
	 	 	 	 	 
	 	 	Name: Anthony G. Morrow	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Daniel T. Richards	 	 
	 	 	 	 	 
	 	 	Name: Daniel T. Richards	 	 

30

 

	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN
	)	 		 
	 

	 	 	) SS	

	 

	 	COUNTY OF WAYNE
	)	 	 	 

	 	 	 
	ACKNOWLEDGMENT OF EXECUTION
BY TRUSTEE.

	 	On this 9th  day of October
2008, before me, the subscriber, a Notary
Public within and for the County of Wayne,
in the State of Michigan, personally
appeared Joseph A. Brassard III, to me
personally known, who, being by me duly
sworn, did say that his business office is
located at 719 Griswold Street, Suite 930,
Detroit, Michigan 48226, and he is an Vice
President of THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., one of the
corporations described in and which
executed the foregoing instrument; that he
knows the corporate seal of the said
corporation and that the seal affixed to
said instrument is the corporate seal of
said corporation; and that said instrument
was signed and sealed in behalf of said
corporation by authority of its Board of
Directors and that he subscribed his name
thereto by like authority; and said Joseph
A. Brassard III acknowledged said
instrument to be the free act and deed of
said corporation.

	 	 	 	 
	(Notarial Seal)

	 	/s/Stephanie V. Washio	 
	 

	 	 	 
	 

	 	Stephanie V. Washio, Notary Public	 
	 

	 	County of Wayne, State of Michigan	 
	 

	 	My Commission Expires: May 18, 2012	 

31

 

	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN
	)	 		 
	 

	 	 	) SS	

	 

	 	COUNTY OF WAYNE
	)	 	 	 

	 	 	 
	AFFIDAVIT AS TO CONSIDERATION AND
GOOD FAITH.

	 	Paul A. Stadnikia, being duly sworn,
says: that he is the Assistant
Treasurer of THE DETROIT EDISON
COMPANY, the Mortgagor named in the
foregoing instrument, and that he
has knowledge of the facts in regard
to the making of said instrument and
of the consideration therefor; that
the consideration for said
instrument was and is actual and
adequate, and that the same was
given in good faith for the purposes
in such instrument set forth.

	 	 	 	 
	 

	 	/s/Paul A. Stadnikia
	 

	 	 
	 

	 	Name: Paul A. Stadnikia
	 

	 	Title: Assistant Treasurer

	 

	 	The Detroit Edison Company
	 
	 	 
	 

	 	Sworn to before me this 9th
 day of October 2008
	 

	 	

	 	 	 	 
	(Notarial Seal)

	 	/s/Stephanie V. Washio	 
	 

	 	 	 
	 

	 	Stephanie V. Washio, Notary Public	 
	 

	 	County of Wayne, State of Michigan	 
	 

	 	My Commission Expires: May 18, 2012	 

32

 

This instrument was drafted by:

Anthony G. Morrow, Esq.

2000 2nd Avenue

688 WCB

Detroit, Michigan 48226

When recorded return to:

Stephanie V. Washio

2000 2nd Avenue

688 WCB

Detroit, Michigan 48226

33exv4w260

Exhibit 4-260

 

THE DETROIT EDISON COMPANY

AND

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

TRUSTEE

 

TWENTY-SEVENTH SUPPLEMENTAL INDENTURE

DATED AS OF OCTOBER 1, 2008

 

SUPPLEMENTING THE COLLATERAL TRUST INDENTURE

DATED AS OF JUNE 30, 1993

PROVIDING FOR

2008 SERIES J 6.40% SENIOR NOTES DUE 2013

 

 

 

     SUPPLEMENTAL INDENTURE, dated as of the 1st day of October 2008, between THE DETROIT EDISON
COMPANY, a corporation organized and existing under the laws of the State of Michigan (the
“Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association
organized under the laws of the United States of America, having a corporate trust office in the
City of Detroit, Michigan, as successor trustee (the “Trustee”);

     WHEREAS, the Company has heretofore executed and delivered to the Trustee a Collateral Trust
Indenture dated as of June 30, 1993 (the “Original Indenture”), as supplemented, providing for the
issuance by the Company from time to time of its debt securities; and

     WHEREAS, the Company now desires to provide for the issuance of an additional series of its
senior debt securities pursuant to the Original Indenture; and

     WHEREAS, the Company intends hereby to designate a series of debt securities which shall have
the benefit of the provisions of Article Four of the Original Indenture and the other related
provisions of the Original Indenture relating to the grant of security, subject to the release
provisions provided for herein, and which shall have the terms and variations from the provisions
of the Original Indenture as set forth herein; and

     WHEREAS, the Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, including Section 1001 thereof, and pursuant
to appropriate resolutions of the Board of Directors, has duly determined to make, execute and
deliver to the Trustee this Twenty-Seventh Supplemental Indenture to the Original Indenture as
permitted by Sections 201 and 301 of the Original Indenture in order to establish the form or terms
of, and to provide for the creation and issue of, a series of its debt securities under the
Original Indenture, which shall be known as the 2008 Series J 6.40% Senior Notes due 2013.

     WHEREAS, all things necessary to make such debt securities, when executed by the Company and
authenticated and delivered by the Trustee or any Authenticating Agent and issued upon the terms
and subject to the conditions hereinafter and in the Original Indenture set forth against payment
therefor, the valid, binding and legal obligations of the Company and to make this Twenty-Seventh
Supplemental Indenture a valid, binding and legal agreement of the Company, have been done;

     NOW, THEREFORE, THIS TWENTY-SEVENTH SUPPLEMENTAL INDENTURE WITNESSETH that, in order to
establish the terms of a series of debt securities, and for and in consideration of the premises
and of the covenants contained in the Original Indenture and in this Twenty-Seventh Supplemental
Indenture and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, it is mutually covenanted and agreed as follows:

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ARTICLE ONE

DEFINITIONS AND OTHER

PROVISIONS OF GENERAL APPLICATION

     SECTION 1.01. Definitions. Each capitalized term that is used herein and is defined in the
Original Indenture shall have the meaning specified in the Original Indenture unless such term is
otherwise defined herein. The following terms shall have the respective meanings set forth below:

     “Business Day” means any day other than a day on which banking institutions in the State of
New York or the State of Michigan are authorized or obligated pursuant to law or executive order to
close.

     “Capitalization” means the total of all the following items appearing on, or included in, the
consolidated balance sheet of the Company: (i) liabilities for indebtedness maturing more than 12
months from the date of determination; and (ii) common stock, common stock expense, accumulated
other comprehensive income or loss, preferred stock, preference stock, premium on capital stock and
retained earnings (however the foregoing may be designated), less, to the extent not otherwise
deducted, the cost of shares of capital stock of the Company held in its treasury, if any. Subject
to the foregoing, Capitalization shall be determined in accordance with generally accepted
accounting principles and practices applicable to the type of business in which the Company is
engaged and may be determined as of a date not more than 60 days prior to the happening of the
event for which the determination is being made. In connection with such determination, the
Company shall certify to the Trustee that it has, prior to making its final determination,
consulted with the independent accountants regularly retained by the Company.

     “Debt” means any outstanding debt for money borrowed evidenced by notes, debentures, bonds or
other securities, or guarantees of any debt.

     “Net Tangible Assets” means the amount shown as total assets on the consolidated balance sheet
of the Company, less (i) intangible assets including, but without limitation, such items as
goodwill, trademarks, trade names, patents, unamortized debt discount and expense and other
regulatory assets carried as an asset on the Company’s consolidated balance sheet, and (ii)
appropriate adjustments, if any, on account of minority interests. Net Tangible Assets shall be
determined in accordance with generally accepted accounting principles and practices applicable to
the type of business in which the Company is engaged and may be determined as of a date not more
than 60 days prior to the happening of the event for which such determination is being made. In
connection with such determination, the Company shall certify to the Trustee that it has, prior to
making its final determination, consulted with the independent accountants regularly retained by
the Company.

     “Operating Property” means (i) any interest in real property owned by the Company and (ii) any
asset owned by the Company that is depreciable in accordance with generally accepted accounting
principles, excluding, in either case, any interest of the Company as lessee under any lease
(except for a lease that results from a Sale and Lease-Back Transaction) that has been or would be
capitalized on the books of the lessee in accordance with generally accepted accounting principles.

2

 

     “Original Issue Date” means October 10, 2008.

     “Pledged Bonds” means the related series of Bonds and any other Mortgage Bonds issued to
secure Securities subject to the release provisions provided herein or in any other supplemental
indenture to the Original Indenture.

     “Release Date” means the date as of which all Mortgage Bonds, (i) other than the Pledged
Bonds, including the related series of Bonds, and (ii) other than outstanding Mortgage Bonds
(exclusive of Pledged Bonds) which do not in aggregate principal amount exceed the greater of 5% of
the Net Tangible Assets of the Company or 5% of the Capitalization of the Company, have been
retired through payment, redemption or otherwise, provided that no default or Event of Default has
occurred and, at such time, is continuing under the Original Indenture.

     “Sale and Lease-Back Transaction” means any arrangement with any person providing for the
leasing to the Company of any Operating Property (except for leases for a term, including any
renewal or potential renewal, of not more than 48 months), which Operating Property has been or is
to be sold or transferred by the Company to the person; provided, however, Sale and Lease-Back
Transaction shall not include any arrangement first entered into prior to the date hereof and shall
not include any transaction pursuant to which the Company sells Operating Property to, and
thereafter purchases energy or services from, any entity, which transaction is ordered or
authorized by any regulatory authority having jurisdiction over the Company or its operations or is
entered into pursuant to any plan or program of industry restructuring ordered or authorized by any
such regulatory authority.

     “Substitute Mortgage” means a mortgage indenture of the Company, other than the Mortgage,
designated by the Company to the Trustee as a Substitute Mortgage pursuant to Section 4.03 hereof.
The lien of the Substitute Mortgage shall have such priority, and be with respect to such property,
as shall be specified by the Company in its sole discretion.

     “Substitute Mortgage Bonds” means any mortgage bonds issued by the Company under a Substitute
Mortgage and delivered to the Trustee pursuant to Section 4.03 hereof or pursuant to the comparable
provision of any other supplemental indenture relating to Securities subject to the release
provisions.

     “Value” means, with respect to a Sale and Lease-Back Transaction, as of any particular time,
the amount equal to the greater of (i) the net proceeds to the Company from the sale or transfer of
the property leased pursuant to the Sale and Lease-Back Transaction or (ii) the net book value of
the property, as determined by the Company in accordance with generally accepted accounting
principles at the time of entering into the Sale and Lease-Back Transaction, in either case
multiplied by a fraction, the numerator of which shall be equal to the number of full years of the
term of the lease that is part of the Sale and Lease-Back Transaction remaining at the time of
determination and the denominator of which shall be equal to the number of full years of the term,
without regard, in any case, to any renewal or extension options contained in the lease.

     SECTION 1.02. Section References. Each reference to a particular section set forth in this
Twenty-Seventh Supplemental Indenture shall, unless the context otherwise requires, refer to this
Twenty-Seventh Supplemental Indenture.

3

 

ARTICLE TWO

TITLE AND TERMS OF THE SECURITIES

     SECTION 2.01. Title of the Securities; Stated Maturity. This Twenty-Seventh Supplemental
Indenture hereby establishes a series of Securities, which shall be known as the Company’s “2008
Series J 6.40% Senior Notes due 2013” (the “Notes”). For purposes of the Original Indenture, the
Notes shall constitute a single series of Securities. The Stated Maturity on which the principal
of the Notes shall be due and payable will be October 1, 2013.

     SECTION 2.02. Certain Variations from the Original Indenture.

     (a) The Notes shall have the benefit of the provisions of Article Four of the Original
Indenture and shall have the benefit of, or be subject to, the other related provisions of the
Original Indenture relating to the grant of security, including (for avoidance of doubt and not for
purposes of limitation) the Granting Clause, the definitions of “Deliverable Mortgage Bonds,”
“Deliverable Securities,” “Designated Mortgage Bonds,” “Grant,” “Mortgage,” “Mortgage Bonds,”
“Mortgage Trustee,” “Previously Delivered Mortgage Bonds,” and “Trust Estate,” Section 301(20),
Sections 301(a)(v), (ix), (x) and (xi), Sections 301(b)(ii) and (iii), Section 301(d), and Sections
601(4) and (8), subject, in each case, to the release provisions provided for in Section 4.02
herein. In addition, on and after the Release Date, unless Substitute Mortgage Bonds are issued to
secure the Notes, the Notes shall have the benefit of the additional covenants set forth in Article
Three hereof.

     (b) Section 503 of the Original Indenture shall apply to the Notes. The following shall be an
additional condition to defeasance of the Notes under Section 503: the Company shall have delivered
to the Trustee an Opinion of Counsel stating that (i) the Company has received from the Internal
Revenue Service a letter ruling, or there has been published by the Internal Revenue Service a
Revenue Ruling, or (ii) since the date of execution of this Twenty-Seventh Supplemental Indenture,
there has been a change in the applicable U.S. Federal income tax law, in either case to the effect
that, the Holders of such Outstanding Notes appertaining thereto will not recognize income, gain or
loss for U.S. Federal income tax purposes as a result of such defeasance and will be subject to
U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have
been the case if such defeasance had not occurred, and, also, to the effect that, after the
123rd day after the date of deposit, all money and other property as provided pursuant
to Section 503 of the Original Indenture (including the proceeds thereof) deposited or caused to be
deposited with the Trustee (or other qualifying trustee) pursuant to Section 503 of the Original
Indenture to be held in trust will not be subject to any case or proceeding (whether voluntary or
involuntary) in respect of the Company under any Federal or State bankruptcy, insolvency,
reorganization or other similar law, or any decree or order for relief in respect of the Company
issued in connection therewith.

     SECTION 2.03. Amount and Denominations; DTC

     (a) The aggregate principal amount of Notes that may be issued under this Twenty-Seventh
Supplemental Indenture is limited to $250,000,000 (except as provided in Section 301(2) of the
Original Indenture); provided that the Company may, without the consent of the Holders of the

4

 

Outstanding Notes, “reopen” the series of the Notes so as to increase the aggregate principal
amount of the Notes Outstanding in compliance with the procedures set forth in the Original
Indenture, including Section 301 and Section 303 thereof, so long as any such additional Notes have
the same terms, conditions and CUSIP number (including, without limitation, rights to security and
to receive accrued and unpaid interest) as the Notes then Outstanding. No additional Notes may be
issued if an Event of Default has occurred with respect to the Notes. The Notes shall be issuable
only in fully registered form and, as permitted by Section 301 and Section 302 of the Original
Indenture, in denominations of $1,000 and integral multiples thereof. The Notes will initially be
issued in global form (the “Global Securities”) under a book-entry system, registered in the name
of The Depository Trust Company, as depository (“DTC”), or its nominee, which is hereby designated
as “Depository” under the Indenture.

     (b) If (i) the Depository notifies the Company that it is unwilling or unable to continue as
Depository for such Global Security or if at any time such Depository ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, and, in either such case, the Company
does not appoint a successor Depository within 90 days thereafter, or (ii) there shall have
occurred and be continuing an Event of Default or an event which, with the giving of notice or
lapse of time, or both, would constitute an Event of Default, certificates for the Notes will be
registered and delivered to the Holders of record. Upon receipt of a withdrawal request from the
Company, the Depository will notify its participants of the receipt of a withdrawal request from
the Company, notifying participants that they may utilize the Depository’s withdrawal procedures
if they wish to withdraw their securities from the Depository. To the extent that the book-entry
system is discontinued, or if the Company fails to appoint a successor Depository, certificates
for the Notes will be registered and delivered to the Holders of record.

     SECTION 2.04. Certain Terms of the Notes.

     (a) The Notes shall bear interest at the rate of 6.40% per annum on the principal amount
thereof from the date of original issuance, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, until the principal of the Notes becomes due and
payable, and on any overdue principal and premium and (to the extent that payment of such interest
is enforceable under applicable law) on any overdue installment of interest at the same rate per
annum during such overdue period. Interest on the Notes will be payable semi-annually in arrears
on April 1 and October 1 of each year (each such date, an “Interest Payment Date”), commencing
April 1, 2009. The amount of interest payable for any period shall be computed on the basis of a
360-day year and twelve 30-day months.

     (b) In the event that any Interest Payment Date, redemption date or other date of Maturity of
the Notes is not a Business Day, then payment of the amount payable on such date will be made on
the next succeeding day which is a Business Day (and without any interest or other payment in
respect of any such delay), in each case with the same force and effect as if made on such date.
The interest installment so payable, and punctually paid or duly provided for, on any Interest
Payment Date with respect to any Note will, as provided in the Original Indenture, be paid to the
person in whose name the Note (or one or more Predecessor Securities, as defined in the Original
Indenture) is registered at the close of business on the relevant record date for such interest
installment, which shall be the fifteenth calendar day (whether or not a Business Day) prior to the
relevant Interest Payment Date (the “Regular Record Date”). Any such interest installment not

5

 

punctually paid or duly provided for shall forthwith cease to be payable to the registered
Holders on such Regular Record Date, and may either be paid to the person in whose name the Note
(or one or more Predecessor Securities) is registered at the close of business on a Special Record
Date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be
given to the registered Holders of the Notes not less than ten days prior to such Special Record
Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Original Indenture. The principal of,
and premium, if any, and the interest on the Notes shall be payable at the office or agency of the
Company maintained for that purpose in the Borough of Manhattan, the City of New York, in any coin
or currency of the United States of America that at the time of payment is legal tender for payment
of public and private debts; provided, however, that payment of interest may be made at the option
of the Company by check mailed to the registered Holder at the close of business on the Regular
Record Date at such address as shall appear in the Security Register. Notwithstanding the
foregoing, so long as the Notes are Global Securities and are held in book-entry form through the
facilities of the Depository, payments on the Notes will be made to the Depository or its nominee
in accordance with arrangements then in effect between the Trustee and the Depository.

     (c) The Notes are not subject to repayment at the option of the Holders thereof and are not
subject to any sinking fund. As provided in the form of Notes attached hereto as Exhibit A, the
Notes are subject to optional redemption, as a whole or in part, by the Company prior to Stated
Maturity of the principal thereof on the terms set forth therein. Except as modified in the form
of Notes, redemptions shall be effected in accordance with Article Twelve of the Original
Indenture.

     (d) The Notes shall have such other terms and provisions as are set forth in the form of Notes
attached hereto as Exhibit A (which is incorporated by reference in and made a part of this
Twenty-Seventh Supplemental Indenture as if set forth in full at this place).

     SECTION 2.06. Form of Notes. Attached hereto as Exhibit A is the form of the Notes. If the
Company elects to have the Notes secured by Substitute Mortgage Bonds on and after the Release
Date, the terms of the Notes shall be amended to make appropriate reference to the Substitute
Mortgage and the Substitute Mortgage Bonds; provided, that the consent of Holders shall not be
required in connection with such amendment.

ARTICLE THREE

ADDITIONAL COVENANTS

     SECTION 3.01. Limitations on Liens.

     (a) From and after the Release Date, unless Substitute Mortgage Bonds are issued to secure the
Notes, so long as any Notes are outstanding, the Company may not issue, assume, guarantee
(including any contingent obligation to purchase) or permit to exist any Debt that is secured by
any mortgage, security interest, pledge or lien (“Lien”) of or upon any Operating Property owned by
the Company, whether owned at the Release Date or subsequently acquired, without effectively
securing the Notes (together with, if the Company shall so determine, any other

6

 

indebtedness of the Company ranking equally with the Notes) equally and ratably with the Debt
(but only so long as the Debt is so secured).

     The foregoing restriction will not apply to:

     (i) Liens on any Operating Property existing at the time of its acquisition and not created
in contemplation of the acquisition;

     (ii) Liens on Operating Property of a corporation existing at the time the corporation is
merged into or consolidated with the Company, or at the time the corporation disposes of
substantially all of its properties (or those of a division) to the Company, provided that the
Lien is not extended to property owned by the Company immediately prior to the merger,
consolidation or other disposition and is not created in contemplation of the merger,
consolidation or other disposition;

     (iii) Liens on Operating Property to secure the cost of acquisition, construction,
development or substantial repair, alteration or improvement of such property or to secure
indebtedness incurred to provide funds for any of these purposes or for reimbursement of funds
previously expended for any of these purposes, provided the Liens are created or assumed
contemporaneously with, or within 18 months after, the acquisition or the completion of
substantial repair or alteration, construction, development or substantial improvement or within
6 months thereafter pursuant to a commitment for financing arranged with a lender or investor
within such 18-month period;

     (iv) Liens in favor of the United States or any state or any department, agency or
instrumentality or political subdivision of the United States or any state, or for the benefit
of holders of securities issued by any of these entities, to secure any Debt incurred for the
purpose of financing all or any part of the purchase price or the cost of substantially
repairing or altering, constructing, developing or substantially improving the Operating
Property; or

     (v) Any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the exceptions listed above,
provided, however, that the principal amount of Debt secured thereby and not otherwise
authorized by those exceptions listed above shall not exceed the principal amount of Debt, plus
any premium or fee payable in connection with any such extension, renewal or replacement, so
secured at the time of such extension, renewal or replacement.

     (b) Notwithstanding the foregoing restrictions, the Company may issue, assume or guarantee
Debt secured by a Lien which would otherwise be subject to the foregoing restrictions up to an
aggregate amount which, together with all other of the Company’s secured Debt (not including
secured Debt permitted under any of the foregoing exceptions) and the Value of Sale and Lease-Back
Transactions existing at such time (other than Sale and Lease-Back Transactions the proceeds of
which have been applied to the retirement of certain indebtedness, Sale and Lease-Back Transactions
in which the property involved would have been permitted to be subjected to a Lien under any of the
foregoing exceptions, and Sale and Lease-Back Transactions that are permitted by the first sentence
of Section 3.02 below), does not exceed the greater of 10% of the Company’s Net Tangible Assets or
10% of the Company’s Capitalization. The foregoing

7

 

restrictions do not limit the Company’s ability to place Liens on (i) the capital stock of any
of the Company’s subsidiaries or (ii) the assets of any of the Company’s subsidiaries.

     SECTION 3.02. Limitations on Sale and Lease-Back Transactions. So long as the Notes are
outstanding from and after the Release Date, unless Substitute Mortgage Bonds are issued to secure
the Notes, the Company may not enter into or permit to exist any Sale and Lease-Back Transaction
with respect to any Operating Property (except for leases for a term, including any renewal or
potential renewal, of not more than 48 months), if the purchaser’s commitment is obtained more than
18 months after the later of the completion of the acquisition, construction or development of the
Operating Property or the placing in operation of the Operating Property or of the Operating
Property as constructed or developed or substantially repaired, altered or improved. This
restriction will not apply if (a) the Company would be entitled pursuant to Section 3.01(a) above
to issue, assume, guarantee or permit to exist Debt secured by a Lien on the Operating Property
without equally and ratably securing the Notes, (b) after giving effect to the Sale and Lease-Back
Transaction, pursuant to Section 3.01(b) above, the Company could incur at least $1.00 of
additional Debt secured by Liens (other than Liens permitted by clause (a)), or (c) the Company
applies within 180 days an amount equal to, in the case of a sale or transfer for cash, the net
proceeds (not less than the fair value of the Operating Property so leased), and, otherwise, an
amount equal to the fair value (as determined by the Board of Directors of the Company) of the
Operating Property so leased to the retirement of Notes or other Debt of the Company ranking
equally with the Notes; provided, however, that any such retirement of Notes shall be in accordance
with the terms and provisions of the Indenture and the Notes; provided, further, that the amount to
be applied to such retirement of Notes or other Debt shall be reduced by an amount equal to the sum
of (a) an amount equal to the redemption price with respect to Notes delivered within such one
hundred eighty (180)-day period to the Trustee for retirement and cancellation and (b) the
principal amount, plus any premium or fee paid in connection with any redemption in accordance with
the terms of other Debt voluntarily retired by the Company within such one hundred eighty (180)-day
period, excluding in each case retirements pursuant to mandatory sinking fund or prepayment
provisions and payments at Stated Maturity.

     SECTION 3.03. Waiver. Section 1109 of the Original Indenture shall apply to the covenants set
forth in Sections 3.01 and 3.02 above at any time such covenants are in effect.

ARTICLE FOUR

SECURITY AND RELEASE PROVISIONS

     SECTION 4.01. Security. Subject to Section 4.02 below, as provided in and pursuant to Article
Four of the Original Indenture, the Notes will be secured as to payments of principal, interest and
premium, if any, by a series of Mortgage Bonds (the “General and Refunding Mortgage Bonds, 2008
Series J”, the “Bonds,” the “Bonds of the related series” or the “related series of Bonds”) of the
Company to be issued concurrently with the issuance of the Notes under and secured by a Mortgage
and Deed of Trust, dated as of October 1, 1924, between the Company and The Bank of New York Mellon
Trust Company, N.A., as successor trustee (the “Mortgage Trustee”), as amended and supplemented by
various supplemental indentures, including the supplemental indenture, dated as of October 1, 2008,
creating the Bonds (collectively, the “Mortgage”), pledged by the Company for the benefit of the
Holders of the

8

 

Notes to the Trustee under this Twenty-Seventh Supplemental Indenture. The Bonds shall be
issued in an aggregate principal amount equal to the aggregate principal amount of the Notes.

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

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

     Notwithstanding anything in the Original Indenture to the contrary, from and after the Release
Date, the obligation of the Company to make payment with respect to the principal of and premium,
if any, and interest on the Bonds shall be deemed satisfied and discharged as provided in the
supplemental indenture or indentures to the Mortgage creating such Bonds and the Bonds shall cease
to secure in any manner Notes theretofore or subsequently issued; the Trustee shall thereupon
surrender the Bonds to the Mortgage Trustee for cancellation and execute and deliver such proper
instruments of release as may be required. From and after the Release Date, all Notes, whether
theretofore or subsequently issued, shall be secured by Substitute Mortgage Bonds pursuant to
Section 4.03 below, and any conditions to the issuance of Notes that refer or relate to Bonds or
the Mortgage shall be inapplicable (except as such conditions shall be deemed to refer to
Substitute Mortgage Bonds or a Substitute Mortgage pursuant to Section 4.03 below). From and after
the Release Date, the Company shall not issue any additional Mortgage Bonds, including Pledged
Bonds, under the Mortgage. Notice of the occurrence of the Release Date shall be given by the
Trustee to the Holders of the Notes in the manner provided for in the Original Indenture not later
than 30 days after the Company notifies the Trustee of the occurrence of the Release Date.

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

     When the obligation of the Company to make payments with respect to the principal of, and
premium, if any, and interest on all or any part of the Bonds shall be satisfied or deemed
satisfied pursuant to the Original Indenture or pursuant to this Twenty-Seventh Supplemental
Indenture,

9

 

the Trustee shall, upon written request of the Company, deliver to the Company without charge
therefor all of the Bonds so satisfied or deemed satisfied, together with such appropriate
instruments of transfer or release as may be reasonably requested by the Company. All Bonds
delivered to the Company in accordance with this Section shall be delivered by the Company to the
Mortgage Trustee for cancellation.

     SECTION 4.03. Substitute Mortgage Bonds.

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

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

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

(A) a supplemental indenture to the Original Indenture that provides among other things,
that on the delivery of the Substitute Mortgage Bonds described in Section 4.03(b), the
Company shall deliver to the Trustee in trust for the benefit of the Holders as described
in

10

 

Section 4.03(a) hereof, and the Trustee shall accept therefor, related series of Substitute
Mortgage Bonds registered in the name of the Trustee and conforming to the requirements
herein and therein specified;

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

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

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

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

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

     SECTION 4.04. Events of Default.

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

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

11

 

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

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

ARTICLE FIVE

MISCELLANEOUS PROVISIONS

     The Trustee makes no undertaking or representations in respect of, and shall not be
responsible in any manner whatsoever for and in respect of, the validity or sufficiency of this
Twenty-Seventh Supplemental Indenture or the proper authorization or the due execution hereof by
the Company or for or in respect of the recitals and statements contained herein, all of which
recitals and statements are made solely by the Company.

     Except as expressly amended hereby and by the supplemental indenture appointing the Trustee as
successor trustee, the Original Indenture shall continue in full force and effect in accordance
with the provisions thereof and the Original Indenture is in all respects hereby ratified and
confirmed. This Twenty-Seventh Supplemental Indenture and all its provisions shall be deemed a
part of the Original Indenture in the manner and to the extent herein and therein provided.

     This Twenty-Seventh Supplemental Indenture and the Notes shall be governed by, and construed
in accordance with, the laws of the State of New York.

     This Twenty-Seventh Supplemental Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

12

 

     IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Seventh Supplemental Indenture
to be duly executed and attested, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	THE DETROIT EDISON COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Paul A. Stadnikia
 

	 	 
	 

	 	Name:
	 	Paul A. Stadnikia	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 

	 	 	 	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	By:

	 	/s/Sharon L. Sabat
 

	 	 
	Name:

	 	Sharon L. Sabat	 	 
	Title:

	 	Assistant Corporate Secretary	 	 

13

 

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

	 	By:
	 	/s/Joseph A. Brassard III	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph A. Brassard III	 	 
	 

	 	Title:
	 	Vice President	 	 

	 	 	 	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	By:

	 	/s/Alexis M. Johnson
	 	 
	 

	 	 	 	 
	Name:

	 	Alexis M. Johnson	 	 
	Title:

	 	Authorized Officer	 	 

14

 

EXHIBIT A

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (“DTC”), TO A NOMINEE OF DTC OR BY DTC OR ANY
SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR. UNLESS THIS NOTE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL, INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

			
	 	 	 
	NO. R-___
	 	$                    
	CUSIP 250847 EE6	 	 

THE DETROIT EDISON COMPANY

2008 SERIES J 6.40% SENIOR NOTES DUE 2013

Principal Amount: $                                        

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not a Business Day)
prior to the relevant Interest Payment Date

Original Issue Date: October 10, 2008

Stated Maturity: October 1, 2013

Interest Payment Dates: April 1 and October 1 of each year, commencing April 1, 2009

Interest Rate: 6.40% per annum

     THE DETROIT EDISON COMPANY, a corporation duly organized and existing under the laws of the
State of Michigan (the “Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered
assigns, at the office or agency of the Company in the City of New York, New York, the principal
sum of                                         dollars ($            
        ) on October 1, 2013 (the “Stated Maturity”), in the
coin or currency of the United States, and to pay interest thereon from the Original Issue Date
shown above, or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, in arrears on each Interest Payment Date as specified above, commencing on April 1,
2009 and on the Stated Maturity at the

A-1

 

rate per annum shown above (the “Interest Rate”) until the principal hereof is due and
payable, and on any overdue principal and premium and on any overdue installment of interest. The
interest installment so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered on the Regular Record Date as specified above next
preceding such Interest Payment Date. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or
one or more Predecessor Securities) is registered at the close of business on a Special Record Date
to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be
given to Holders of Notes of this series not less than ten days prior to such Special Record Date,
or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Notes of this series shall be listed, and upon such
notice as may be required by any such exchange, all as more fully provided in the Indenture.

     Payments of interest on this Note will include interest accrued to but excluding the
respective Interest Payment Dates. Interest payments for this Note shall be computed and paid on
the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue
principal and premium, if any, and, to the extent lawful, on overdue installments of interest at
the rate per annum borne by this Note. In the event that any Interest Payment Date, Redemption
Date or Maturity Date is not a Business Day, then the required payment of principal, premium, if
any, and interest will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), in each case with the same force and
effect as if made on such date. “Business Day” means any day other than a day on which banking
institutions in the State of New York or the State of Michigan are authorized or obligated pursuant
to law or executive order to close.

     Payment of principal of, premium, if any, and interest on the Notes shall be made in such coin
or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts. Payments of principal of, premium, if any, and interest on Notes
represented by a Global Security shall be made by wire transfer of immediately available funds to
the Holder of such Global Security, provided that, in the case of payments of principal and
premium, if any, such Global Security is first surrendered to the Paying Agent (as defined in the
Indenture). If any of the Notes of this series are no longer represented by a Global Security, (i)
payments of principal, premium, if any, and interest due at the Stated Maturity or earlier
redemption of such Securities shall be made at the office of the Paying Agent upon surrender of
such Securities to the Paying Agent, and (ii) payments of interest shall be made, at the option of
the Company, subject to such surrender where applicable, by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register.

     UNTIL THE RELEASE DATE (AS DEFINED BELOW), THIS NOTE SHALL BE SECURED BY GENERAL AND REFUNDING
MORTGAGE BONDS, 2008 SERIES J (THE “MORTGAGE BONDS”) ISSUED AND DELIVERED BY THE COMPANY TO THE
TRUSTEE (AS DEFINED BELOW) UNDER THE COMPANY’S SUPPLEMENTAL INDENTURE DATED AS OF OCTOBER 1, 2008,
SUPPLEMENTING THE MORTGAGE AND DEED OF TRUST DATED AS OF OCTOBER 1, 1924 BETWEEN THE COMPANY AND
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (THE “MORTGAGE TRUSTEE”), PLEDGED BY THE COMPANY
FOR THE BENEFIT OF THE HOLDERS OF

A-2

 

THE NOTES TO THE TRUSTEE UNDER THE INDENTURE (THE “MORTGAGE”). ON THE RELEASE DATE, THE NOTES
SHALL CEASE TO BE SECURED BY SUCH MORTGAGE BONDS AND, SHALL BE SECURED BY SUBSTITUTE MORTGAGE BONDS
UNDER A SUBSTITUTE MORTGAGE.

     This Note shall not be entitled to any benefit under the Indenture hereinafter referred to, be
valid or become obligatory for any purpose until the Certificate of Authentication hereon shall
have been signed by or on behalf of the Trustee.

     Unless the Certificate of Authentication hereon has been executed by the Trustee or a duly
appointed Authentication Agent referred to herein, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

     This Note is one of a duly authorized series of Securities of the Company (herein sometimes
referred to as the “Notes”), specified in the Indenture, all issued or to be issued in one or more
series under and pursuant to a Collateral Trust Indenture dated as of June 30, 1993 (the “Original
Indenture”) duly executed and delivered between the Company and The Bank of New York Mellon Trust
Company, N.A., as successor Trustee (herein referred to as the “Trustee”), as supplemented through
and including a Twenty-Seventh Supplemental Indenture dated as of October 1, 2008 (together with
the Original Indenture, the “Indenture”) between the Company and the Trustee, to which Indenture
and all indentures supplemental thereto reference is hereby made for a description of the
respective rights, limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the registered Holders of the Notes and of the terms upon which the Notes
are, and are to be, authenticated and delivered.

     This Note is not subject to repayment at the option of the Holder hereof. Except as provided
below, this Note is not redeemable by the Company prior to maturity and is not subject to any
sinking fund.

     This Note will be redeemable at the option of the Company, in whole at any time or in part
from time to time (any such date of optional redemption, an “Optional Redemption Date,” which shall
be a “Redemption Date” for purposes of the Indenture), at an optional redemption price (which shall
be a “Redemption Price” for purposes of the Indenture) equal to the greater of (i) 100% of the
principal amount of this Note to be redeemed and (ii) the sum of the present values of the
remaining scheduled payments of principal and interest of this Note to be redeemed (not including
any portion of any payments of interest accrued to the Optional Redemption Date) until Stated
Maturity, in each case discounted from their respective scheduled payment dates to such Optional
Redemption Date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the
Adjusted Treasury Rate (as defined below) plus 50 basis points, as determined by the Reference
Treasury Dealer (as defined below), plus, in each case, accrued and unpaid interest thereon to the
Redemption Date.

     Notwithstanding the foregoing, installments of interest on this Note that are due and payable
on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the Interest
Payment Date to the registered Holders as of the close of business on the relevant Record Date.

     “Adjusted Treasury Rate” means, with respect to any Optional Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
calculated on the third Business Day preceding such Optional Redemption Date assuming a

A-3

 

price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Optional Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Reference Treasury Dealer as having a maturity comparable to the remaining term of this Note that
would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of
this Note.

     “Comparable Treasury Price” means, with respect to any Optional Redemption Date, (i) the
average of the Reference Treasury Dealer Quotations for such Optional Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee
obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such
quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation.

     “Reference Treasury Dealer” means each of: (i) Barclays Capital Inc., Citigroup Global Markets
Inc. and Greenwich Capital Markets, Inc. (or their respective affiliates which are Primary Treasury
Dealers), and their respective successors; provided, however, that if any of the foregoing shall
cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury
Dealer”), the Company will substitute therefor another Primary Treasury Dealer; and (ii) any other
Primary Treasury Dealer(s) selected by the Trustee after consultation with the Company.

     “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
and any Optional Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Optional Redemption Date.

     Notice of any optional redemption will be mailed at least 30 days but not more than 60 days
before the Optional Redemption Date to the Holder hereof at its registered address.

     If notice has been provided in accordance with the Indenture and funds for the redemption of
this Note called for redemption have been made available on the Redemption Date, this Note will
cease to bear interest on the date fixed for redemption. Thereafter, the only right of the Holder
hereof will be to receive payment of the Redemption Price.

     The Company will notify the Trustee at least 60 days prior to giving notice of redemption (or
such shorter period as is satisfactory to the Trustee) of the aggregate principal amount of Notes
to be redeemed and the Redemption Date. If the Company elects to redeem all or a portion of the
Notes, the redemption will be conditional upon receipt by the Paying Agent or the Trustee of monies
sufficient to pay the Redemption Price. If the Notes are only partially redeemed by the Company,
the Trustee shall select which Notes are to be redeemed in a manner it deems fair and appropriate
in accordance with the terms of the Indenture.

     In the event of redemption of this Note in part only, a new Note or Notes of this series for
the unredeemed portion hereof will be issued in the name of the registered Holder hereof upon the
cancellation hereof.

A-4

 

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of all of the Notes may be declared, and upon such declaration shall
become, due and payable, in the manner, with the effect and subject to the conditions provided in
the Indenture.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Note upon compliance by the Company with certain conditions set forth therein.

     The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the registered Holders of not less than a majority in aggregate principal amount of the outstanding
Securities of each series affected at the time, as defined in the Indenture, to execute
supplemental indentures for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental indenture or of modifying
in any manner the rights of the registered Holders of the Securities; provided, however, that no
such supplemental indenture shall (i) extend the fixed maturity of any Securities of any series, or
reduce the principal amount thereof, or reduce the rate of or extend the time of payment of
interest thereon, or reduce any premium payable upon the redemption thereof, without the consent of
the registered Holder of each Security so affected or (ii) reduce the aforesaid percentage of
Securities, the registered Holders of which are required to consent to any such supplemental
indenture, without the consent of the registered Holders of each Security then outstanding and
affected thereby. The Indenture also contains provisions permitting (i) the registered Holders of
at least 66 2/3% in aggregate principal amount of the Securities of all series at the time
outstanding affected thereby, on behalf of the registered Holders of the Securities of such series,
to waive compliance by the Company with certain provisions of the Indenture and (ii) the registered
Holders of a majority in aggregate principal amount of the Securities of all series at the time
outstanding affected thereby, on behalf of the registered Holders of the Securities of such series,
to waive certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the registered Holder of this Note (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such registered Holder and upon all future registered Holders and
owners of this Note and of any Note issued in exchange hereof or in place hereof (whether by
registration of transfer or otherwise), irrespective of whether or not any notation of such consent
or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time and place and at the rate and in the coin or
currency herein prescribed.

     Prior to the Release Date, the Notes of this series shall be secured by a series of Mortgage
Bonds (the “Related Series of Bonds”), delivered by the Company to the Trustee for the benefit of
the Holders of the Notes. Reference is made to the Mortgage and the Indenture for a description of
the rights of the Trustee as Holder of the Related Series of Bonds, the property mortgaged and
pledged under the Mortgage and the rights of the Company and of the Mortgage Trustee in respect
thereof, the duties and immunities of the Mortgage Trustee and the terms and conditions upon which
the Related Series of Bonds are secured and the circumstances under which additional Mortgage Bonds
may be issued.

     FROM AND AFTER SUCH TIME AS ALL BONDS, OTHER THAN (1) PLEDGED BONDS, INCLUDING THE RELATED
SERIES OF BONDS, AND (2) MORTGAGE BONDS

A-5

 

(EXCLUSIVE OF PLEDGED BONDS) WHICH DO NOT IN AGGREGATE PRINCIPAL AMOUNT EXCEED THE GREATER OF
FIVE PERCENT (5%) OF NET TANGIBLE ASSETS OR FIVE PERCENT (5%) OF CAPITALIZATION, HAVE BEEN RETIRED
THROUGH PAYMENT, REDEMPTION OR OTHERWISE (INCLUDING THOSE MORTGAGE BONDS THE PAYMENT FOR WHICH HAS
BEEN PROVIDED FOR IN ACCORDANCE WITH THE MORTGAGE) AT, BEFORE OR AFTER THE MATURITY THEREOF,
PROVIDED THAT NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING (THE “RELEASE DATE”),
THE RELATED SERIES OF BONDS SHALL CEASE TO SECURE THE NOTES IN ANY MANNER AND SHALL INSTEAD BE
SECURED BY SUBSTITUTE MORTGAGE BONDS PURSUANT TO SECTION 4.03 OF THE TWENTY-SEVENTH SUPPLEMENTAL
INDENTURE DATED AS OF OCTOBER 1, 2008 TO THE INDENTURE DESCRIBED ABOVE.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register of the Company, upon surrender of
this Note for registration of transfer at the office or agency of the Company in any place where
the principal of and any interest on this Note are payable or at such other offices or agencies as
the Company may designate, duly endorsed by or accompanied by a written instrument or instruments
of transfer in form satisfactory to the Company and the Security Registrar or any transfer agent
duly executed by the registered Holder hereof or his or her attorney duly authorized in writing,
and thereupon one or more new Notes of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be made for any such transfer, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge payable in relation
thereto.

     Prior to due presentment for registration of transfer of this Note, the Company, the Trustee,
any Paying Agent and any Note Registrar may deem and treat the registered Holder hereof as the
absolute owner hereof (whether or not this Note shall be overdue and notwithstanding any notice of
ownership or writing hereon made by anyone other than the Note Registrar) for the purpose of
receiving payment of or on account of the principal hereof and interest due hereon and for all
other purposes, and neither the Company nor the Trustee nor any Paying Agent nor any Security
Registrar shall be affected by any notice to the contrary.

     The Notes of this series are issuable only in fully registered form without coupons in
denominations of $1,000 and any integral multiple thereof. This Global Security is exchangeable
for Notes in definitive form only under certain limited circumstances set forth in the Indenture.
As provided in the Indenture and subject to certain limitations therein set forth, Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this series of a
different authorized denomination, as requested by the registered Holder surrendering the same.

     As set forth in, and subject to the provisions of, the Indenture, no Holder of any Note will
have any right to institute any proceeding with respect to the Indenture or for any remedy
thereunder, unless (i) such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default with respect to the Notes of this series, (ii) the Holders of not less
than 25% in principal amount of the outstanding Notes of this series shall have made written
request, and offered reasonable indemnity, to the Trustee to institute such proceeding as trustee,
(iii) the Trustee shall have failed to institute such proceeding within 60 days and (iv) the
Trustee shall not have received from the Holders of a majority in principal amount of the
outstanding

A-6

 

Notes of this series a direction inconsistent with such request within such 60-day period;
provided, however, that such limitations do not apply to a suit instituted by the Holder hereof for
the enforcement of payment of the principal of or any interest on this Note on or after the
respective due dates expressed herein.

     All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

A-7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Note to be duly executed and attested,
all as of the day and year first above written.

THE DETROIT EDISON COMPANY

[Corporate Seal]

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

A-8

 

CERTIFICATE OF AUTHENTICATION

     This is one of the Notes of the series of Notes described in the within mentioned Indenture.

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

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	Date:                    

A-9

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

      

(Please insert Social Security or Other Identifying Number of Assignee)

      

(Please print or type name and address, including zip code of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and appointing such
person attorneys to transfer the within Note on the books of the Issuer, with full power of
substitution in the premises.

Dated:                                         

     NOTICE: The signature of this assignment must correspond with the name as written upon the
face of the within Note in every particular, without alteration or enlargement or any change
whatever and NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of
the Securities Transfer Agents Medallion Program (“STAMP”), the Stock Exchange, Inc. Medallion
Signature Program (“MSP”). When assignment is made by a guardian, trustee, executor or
administrator, an officer of a corporation, or anyone in a representative capacity, proof of his or
her authority to act must accompany this Note.

A-10

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