Document:

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                                                                     EXHIBIT 4.3

                                    INDENTURE

                            DATED AS OF APRIL 1, 2005

                                 ---------------

                           THE DETROIT EDISON COMPANY
                                (2000 2nd Avenue,
                            Detroit, Michigan 48226)

                                       TO

                 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION
                  (SUCCESSOR TO BANK ONE, NATIONAL ASSOCIATION)
                  611 Woodward Avenue, 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,
                                 2005 SERIES AR,

                    (B) GENERAL AND REFUNDING MORTGAGE BONDS,
                                 2005 SERIES BR,

                                       AND

                          (C) RECORDING AND FILING DATA

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                               TABLE OF CONTENTS*

<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              ----
<S>                                                                                           <C>
PARTIES                                                                                         1
  Original Indenture and Supplementals.....................................................     1
  Issue of Bonds Under Indenture...........................................................     2
  Bonds Heretofore Issued..................................................................     2
  Reason for Creation of New Series........................................................     9
  Bonds to be 2005 Series AR and 2005 Series BR............................................    10
  Further Assurance........................................................................    10
  Authorization of Supplemental Indenture..................................................    10
  Consideration for Supplemental Indenture.................................................    11
PART I. CREATION OF THREE HUNDRED FORTY-FIRST SERIES OF
BONDS. GENERAL AND REFUNDING MORTGAGE BONDS, 2005 SERIES AR                                    11
  Sec. 1.  Terms of Bonds of 2005 Series AR................................................    11
           Release.........................................................................    14
  Sec. 2.  Redemption of Bonds of 2005 Series AR...........................................    14
  Sec. 3.  Redemption of Bonds of 2005 Series AR in event of acceleration of Notes.........    15
  Sec. 4.  Form of Bonds of 2005 Series AR.................................................    16
           Form of Trustee's Certificate                                                       18
PART II. CREATION OF THREE HUNDRED FORTY-SECOND SERIES OF BONDS. GENERAL AND REFUNDING
MORTGAGE BONDS, 2005 SERIES BR                                                                 21
  Sec. 1.  Terms of Bonds of 2005 Series BR................................................    21
           Release.........................................................................    24
  Sec. 2.  Redemption of Bonds of 2005 Series BR...........................................    25
  Sec. 3.  Redemption of Bonds of 2005 Series BR in event of acceleration of Notes.........    25
  Sec. 4.  Form of Bonds of 2005 Series BR.................................................    26
           Form of Trustee's Certificate...................................................    28
PART III. RECORDING AND FILING DATA                                                            31
  Recording and Filing of Original Indenture...............................................    31
  Recording and Filing of Supplemental Indentures..........................................    31
  Recording of Certificates of Provision for Payment.......................................    36
PART IV. THE TRUSTEE                                                                           37
  Terms and Conditions of Acceptance of Trust by Trustee...................................    37
PART V. MISCELLANEOUS                                                                          37
  Confirmation of Section 318(c) of Trust Indenture Act....................................    37
  Execution in Counterparts................................................................    37
  Testimonium..............................................................................    37
  Execution by The Detroit Edison Company..................................................    38
  Acknowledgment of Execution by Company...................................................    39
  Execution by Trustee.....................................................................    40
  Acknowledgment of Execution by Trustee...................................................    41
  Affidavit as to Consideration and Good Faith.............................................    42
</TABLE>

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

                                      (i)
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PARTIES.         SUPPLEMENTAL INDENTURE, dated as of the 1st day of April,
                 in the year 2005, between THE DETROIT EDISON COMPANY, a
                 corporation organized and existing under the laws of the State
                 of Michigan and a public utility (hereinafter called the
                 "Company"), party of the first part, and J.P. Morgan Trust
                 Company, National Association (successor to Bank One,
                 National Association), a trust company organized and existing
                 under the laws of the United States, having a corporate trust
                 office at 611 Woodward Avenue, 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         WHEREAS, the Company has heretofore executed and delivered
INDENTURE AND    its  Mortgage and Deed of Trust (hereinafter referred to
SUPPLEMENTALS.   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 and January 1, 2000, April

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                 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 and February 1, 2005 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   WHEREAS, the Indenture provides that said bonds shall be
UNDER            issuable in one or more series, and makes provision that the
INDENTURE.       rates of interest and dates for the payment thereof, the date
                 of maturity or dates of maturity, if of serial maturity, 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            WHEREAS, bonds in the principal amount of Eleven billion two
HERETOFORE       hundred twenty-three million six hundred twenty-seven thousand
ISSUED.          ($11,223,627,000) 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,

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(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,

(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,

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(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           --  Principal Amount $10,750,000,
            Nos. 1-11

(233-248)   Bonds of 1981 Series AP           --  Principal Amount $124,000,000,
            Nos. 1-16

(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           --  Principal Amount $5,430,000,
            MMP No. 2

(256)       Bonds of Series T                 --  Principal Amount $75,000,000,

(257)       Bonds of Series U                 --  Principal Amount $75,000,000,

(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,

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(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 1993 Series G            --  Principal Amount $225,000,000,

                                        5
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(284)       Bonds of 1993 Series K            --  Principal Amount $160,000,000,

(285)       Bonds of 1991 Series EP           --  Principal Amount $41,480,000,

(286)       Bonds of 1993 Series H            --  Principal Amount $50,000,000,

(287)       Bonds of 1999 Series D            --  Principal Amount $40,000,000,

(288)       Bonds of 1991 Series FP           --  Principal Amount $98,375,000,

(289)       Bonds of 1992 Series BP           --  Principal Amount $20,975,000,

(290)       Bonds of 1992 Series D            --  Principal Amount $300,000,000,

(291)       Bonds of 1992 Series CP           --  Principal Amount $35,000,000,

(292)       Bonds of 1993 Series C            --  Principal Amount $225,000,000,

(293)       Bonds of 1993 Series E            --  Principal Amount $400,000,000,

(294)       Bonds of 1993 Series J            --  Principal Amount $300,000,000,

(295-300)   Bonds of Series KKP Nos. 10-15    --  Principal Amount $179,590,000,

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

(302)       Bonds of 1993 Series FP           --  Principal Amount $5,685,000,

(303)       Bonds of 1993 Series IP           --  Principal Amount $5,825,000,

(304)       Bonds of 1994 Series AP           --  Principal Amount $7,535,000,

(305)       Bonds of 1994 Series BP           --  Principal Amount $12,935,000,

(306)       Bonds of 1994 Series DP           --  Principal Amount $23,700,000,

(307)       Bonds of 1994 Series C            --  Principal Amount $200,000,000,
                                              and

(308)       Bonds of 2000 Series A            --  Principal Amount $220,000,000,

            all of which have either been retired and cancelled, or no longer
            represent obligations of the Company, having matured or having been
            called for

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            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;

(309)       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 fifty-two million two
            hundred fifty-six thousand dollars ($152,256,000) principal
            amount havetofore been retired and One hundred four million six
            hundred seventy-six thousand dollars ($104,676,000) principal
            amount are outstanding at the date hereof;

(310)       Bonds of 1990 Series C in the principal amount of Eighty-five
            million four hundred seventy-five thousand dollars ($85,475,000)
            of which Fifty-four million seven hundred four thousand dollars
            ($54,704,000) principal amount have heretofore been retired and
            Thirty million seven hundred seventy-one thousand dollars
            ($30,771,000) principal amount are outstanding at the date
            hereof;

(311)       Bonds of 1991 Series AP 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;

(312)       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;

(313)       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;

(314)       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;

(315)       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;

(316)       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;

(317)       Bonds of 1995 Series AP in the principal amount of Ninety-seven
            million dollars ($97,000,000), all of which are outstanding at
            the date hereof;

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(318)       Bonds of 1995 Series BP in the principal amount of Twenty-two
            million, one hundred seventy-five thousand dollars ($22,175,000),
            all of which are outstanding at the date hereof;

(319)       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;

(320)       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;

(321)       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;

(322)       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;

(323)       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;

(324)       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;

(325)       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;

(326)       Bonds of 2001 Series D in the principal amount of Two hundred
            million dollars ($200,000,000), all of which are outstanding at
            the date hereof;

(327)       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;

(328)       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;

(329)       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;

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(330)       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;

(331)       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;

(332)       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;

(333)       INTENTIONALLY RESERVED FOR 1990 SERIES D;

(334)       INTENTIONALLY RESERVED FOR 1990 SERIES E;

(335)       INTENTIONALLY RESERVED FOR 1990 SERIES F;

(336)       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;

(337)       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; and

(338)       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;

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

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

            accordingly, the Company has issued and has presently
            outstanding Three billion thirty million one hundred eighty-two
            thousand dollars ($3,030,182,000) aggregate principal amount of
            its General and Refunding Mortgage Bonds (the "Bonds") at the
            date hereof.

REASON FOR          WHEREAS, the Company intends to issue series of Notes under
CREATION OF         the Note Indenture herein referred to, and, pursuant to the
NEW SERIES.         Note Indenture, the Company has agreed to issue its General
                    and Refunding Mortgage Bonds under the Indenture in

                                        9
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                    order further to secure its obligations with respect to such
                    Notes; and

BONDS TO BE 2005    WHEREAS, for such purpose the Company desires by this
SERIES AR AND 2005  Supplemental Indenture to create two new series of bonds, to
SERIES BR.          be designated "General and Refunding Mortgage Bonds, 2005
                    Series AR" in the aggregate principal amount of two hundred
                    million dollars ($200,000,000) and "General and Refunding
                    Mortgage Bonds, 2005 Series BR" in the aggregate principal
                    amount of two hundred million dollars ($200,000,000), 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 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    WHEREAS, the Company in the exercise of the powers and
SUPPLEMENTAL        authority conferred upon and reserved to it under and by
INDENTURE.          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;

                                       10
<PAGE>

CONSIDERATION FOR   NOW, THEREFORE, THIS INDENTURE WITNESSETH: That The Detroit
SUPPLEMENTAL        Edison Company, in consideration of the premises and of the
INDENTURE.          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 FORTY-FIRST
                            SERIES OF BONDS, GENERAL
                          AND REFUNDING MORTGAGE BONDS,
                              2005 SERIES AR BONDS

TERMS OF            SECTION 1. The Company hereby creates the three hundred
BONDS OF            forty-first series of bonds to be issued under and secured
2005 SERIES AR.     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, 2005
                    Series AR" (elsewhere herein referred to as the "bonds of
                    2005 Series AR"). The aggregate principal amount of bonds of
                    2005 Series AR shall be limited to two hundred million
                    dollars ($200,000,000), 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 2005 Series AR, "reopen" the bonds of 2005 Series
                    AR 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 2005 Series AR
                    have the same tenor and terms as the bonds of 2005 Series AR
                    established hereby.

                    Subject to the release provisions set forth below, each
                    bond of 2005 Series AR is to be irrevocably assigned to,
                    and registered in the name of, J.P. Morgan Trust
                    Company, National Association, as trustee, or a
                    successor trustee (said 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 (the "Note Indenture"), as
                    supplemented, between the Note Indenture Trustee and the
                    Company,

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<PAGE>

                    to secure payment of the Company's 2005 Series AR 4.80%
                    Senior Notes due 2015 (for purposes of this Part I, the
                    "4.80% Notes").

                    The bonds of 2005 Series AR shall be issued as
                    registered bonds without coupons in denominations of a
                    multiple of $1,000. The bonds of 2005 Series AR shall be
                    issued in the aggregate principal amount of
                    $200,000,000, shall mature on February 15, 2015 (subject
                    to earlier redemption or release) and shall bear
                    interest at the rate of 4.80% per annum, payable
                    semi-annually in arrears on February 15 and August 15 of
                    each year (commencing August 15, 2005), 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
                    2005 Series AR shall bear additional interest
                    ("Additional Interest") pursuant to that certain
                    Registration Rights Agreement, dated as of February 7,
                    2005, among the Company and the other parties named
                    therein upon the occurrence of any Registration Default
                    (as defined therein). Additional Interest shall be
                    payable on the applicable interest payment dates to the
                    same persons and in the same manner as provided herein
                    for payments of ordinary interest.

                    The bonds of 2005 Series AR 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 2005 Series AR shall be
                    payable, both as to principal 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 2005 Series AR
                    shall be dated the date of its authentication and
                    interest shall be payable on the principal represented
                    thereby from the February 15 or August 15 next preceding
                    the date thereof to which interest has been paid on
                    bonds of 2005 Series AR, 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 August 15, 2005, in which case interest shall
                    be payable from February 7, 2005.

                    The bonds of 2005 Series AR 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 1 and upwards

                                       12
<PAGE>

                    (with such further designation as may be appropriate and
                    desirable to indicate by such designation the form, series
                    and denomination of bonds of 2005 Series AR). Until bonds of
                    2005 Series AR 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 2005 Series AR in temporary form, as provided in
                    Section 10 of Article II of the Indenture. Temporary bonds
                    of 2005 Series AR, if any, may be printed and may be issued
                    in authorized denominations in substantially the form of
                    definitive bonds of 2005 Series AR, 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 2005 Series AR 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 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 2005 Series AR,
                    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 2005 Series AR 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 2005 Series AR 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 2005 Series AR
                    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 2005 Series AR 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 4.80% 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

                                       13
<PAGE>

                    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 2005 Series AR shall
                    in the same manner be exchangeable for a like aggregate
                    principal amount of bonds of 2005 Series AR 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 2005 Series AR during
                    any period of ten (10) days next preceding any
                    redemption date for such bonds.

                    Bonds of 2005 Series AR, 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 4.80% 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 2005 Series AR in a principal amount equal to the
                    principal amount of such 4.80% 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.            From and after the Release Date (as defined in the Note
                    Indenture), the bonds of 2005 Series AR 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 2005 Series AR shall be surrendered to
                    and 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 2005 Series AR to be less than the then
                    outstanding principal amount of the 4.80% Notes.

REDEMPTION          SECTION 2. Bonds of 2005  shall be redeemed on the
OF                  respective  Series dates and in the respective principal
BONDS OF 2005       amounts which correspond to the AR. redemption dates for,
SERIES AR           and the principal amounts to be redeemed of, the
                    4.80% Notes.

                                       14
<PAGE>

                    In the event the Company elects to redeem any 4.80% 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 2005 Series AR on the same date as it
                    gives notice of redemption of 4.80% Notes to the Note
                    Indenture Trustee.

REDEMPTION          SECTION 3. In the event of an Event of Default under the
OF                  Note Indenture and the acceleration of all 4.80% Notes, the
BONDS OF 2005       bonds of 2005 Series AR shall be redeemable in whole upon
SERIES AR IN        receipt by the Trustee of  a written demand (hereinafter
EVENT OF            called a "Redemption Demand") from the  Note Indenture
ACCELERATION        Trustee stating that there has occurred under the Note
OF                  Indenture both an Event of Default and a declaration of
NOTES.              acceleration of payment of principal, accrued interest
                    and premium, if any, on the 4.80% Notes, specifying the
                    last date to which interest on the 4.80% 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 2005 Series AR 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

                                       15
<PAGE>

                    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 4.80%
                    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 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                SECTION 4. The bonds of 2005 Series AR and the form of
OF BONDS OF         Trustee's Certificate to be endorsed on such bonds shall be
2005 SERIES AR.     substantially in the following forms, respectively:

                           THE DETROIT EDISON COMPANY
                       GENERAL AND REFUNDING MORTGAGE BOND
                                 2005 SERIES AR

                    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 as of April 1, 2005, between The Detroit
                    Edison Company and J.P. Morgan Trust Company, National
                    Association, 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 J.P. Morgan
                    Trust Company,

                                       16
<PAGE>

                    National Association, 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 February 15, 2015
                    (subject to earlier redemption or release) and interest
                    thereon at the rate of 4.80% per annum, in like lawful
                    money, from February 7, 2005, 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
                    February 15 and August 15 of each year (commencing
                    August 15, 2005), 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 April
                    1, 2005 (hereinafter called the "Note Indenture"),
                    between the Company and J.P. Morgan Trust Company,
                    National Association, as trustee (hereinafter called the
                    "Note Indenture Trustee"), the Company has issued its
                    2005 Series AR 4.80% Senior Notes due 2015 (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 J.P. Morgan Trust Company, National
                    Association, 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 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 Vice President and Corporate Secretary
                    or Assistant Corporate Secretary by manual or facsimile
                    signature.

                                       17
<PAGE>

                    Dated:  _____________

                           THE DETROIT EDISON COMPANY

                           By: AUTHORIZED OFFICER

                    [SEAL]

                    Attest:  AUTHORIZED OFFICER

                         [FORM OF TRUSTEE'S CERTIFICATE]

FORM OF             This bond is one of the bonds, of the series designated
TRUSTEE'S           therein, described in the within-mentioned Indenture.
CERTIFICATE.
                    J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as
                    Trustee

                    By _______________________
                    Authorized Officers

                                    [FORM OF REVERSE OF BOND]

                    This bond is one of an authorized issue of bonds of the
                    Company, unlimited as 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 2005 Series AR,
                    limited to an aggregate principal amount of
                    $200,000,000, 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 J.P. Morgan
                    Trust Company, National Association, as successor in
                    interest to Bank One, National Association, as Trustee,
                    to which Indenture and all indentures supplemental
                    thereto (including the Supplemental Indenture dated as
                    of April 1, 2005) reference is hereby made for a
                    description of the properties and franchises mortgaged
                    and

                                       18
<PAGE>

                    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 April 1, 2005, 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
                    2005 Series AR (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 Indenture or with respect to such bonds
                    (or portions thereof) and interest.

                                       19
<PAGE>

                    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 2005
                    Series AR 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 2005 Series AR 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 2005 Series AR 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

                                       20
<PAGE>

                    that would cause the outstanding principal amount of the
                    bond of 2005 Series AR 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 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.
                     CREATION OF THREE HUNDRED FORTY-SECOND
                            SERIES OF BONDS, GENERAL
                          AND REFUNDING MORTGAGE BONDS,
                              2005 SERIES BR BONDS

TERMS OF            SECTION 1. The Company hereby creates the three hundred
BONDS OF            series of bonds to be issued under and secured by the
2005 SERIES BR.     Original forty-second 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, sby the title "General and Refunding Mortgage
                    Bonds, 2005 Series BR" (elsewhere herein referred to as the
                    "bonds of 2005 Series BR"). The aggregate principal amount
                    of  bonds of 2005 Series BR shall be limited to two hundred
                    million dollars ($200,000,000), 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 2005 Series BR, "reopen"
                    the bonds of 2005 Series BR 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 2005 Series BR have the same
                    tenor and terms as the bonds of 2005 Series BR
                    established hereby.

                    Subject to the release provisions set forth below, each
                    bond of 2005 Series BR is to be irrevocably assigned to,
                    and registered in the name of,

                                       21
<PAGE>

                    J.P. Morgan Trust Company, National Association, as trustee,
                    or a successor trustee (said 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 (the "Note Indenture"), as
                    supplemented, between the Note Indenture Trustee and the
                    Company, to secure payment of the Company's 2005 Series
                    BR 5.45% Senior Notes due 2035 (for purposes of this
                    Part II, the "5.45% Notes").

                    The bonds of 2005 Series BR shall be issued as
                    registered bonds without coupons in denominations of a
                    multiple of $1,000. The bonds of 2005 Series BR shall be
                    issued in the aggregate principal amount of
                    $200,000,000, shall mature on February 15, 2035 (subject
                    to earlier redemption or release) and shall bear
                    interest at the rate of 5.45% per annum, payable
                    semi-annually in arrears on February 15 and August 15 of
                    each year (commencing August 15, 2005), 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
                    2005 Series BR shall bear additional interest
                    ("Additional Interest") pursuant to that certain
                    Registration Rights Agreement, dated as of February 7,
                    2005, among the Company and the other parties named
                    therein upon the occurrence of any Registration Default
                    (as defined therein). Additional Interest shall be
                    payable on the applicable interest payment dates to the
                    same persons and in the same manner as provided herein
                    for payments of ordinary interest.

                    The bonds of 2005 Series BR 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 2005 Series BR shall be
                    payable, both as to principal 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 2005 Series BR
                    shall be dated the date of its authentication and
                    interest shall be payable on the principal represented
                    thereby from the February 15 or August 15 next preceding
                    the date thereof to which interest has been paid on
                    bonds of 2005 Series BR, 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 August 15, 2005, in which case interest shall
                    be payable from February 7, 2005.

                                       22
<PAGE>

                    The bonds of 2005 Series BR 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 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 2005 Series BR). Until bonds of
                    2005 Series BR 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 2005 Series BR in temporary form,
                    as provided in Section 10 of Article II of the
                    Indenture. Temporary bonds of 2005 Series BR, if any,
                    may be printed and may be issued in authorized
                    denominations in substantially the form of definitive
                    bonds of 2005 Series BR, 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 2005 Series BR 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 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 2005 Series BR,
                    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 2005 Series BR 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 2005 Series BR 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 2005 Series BR
                    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 2005 Series BR 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 5.45% Notes, or, subject to

                                       23
<PAGE>

                    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 2005 Series BR shall in the same
                    manner be exchangeable for a like aggregate principal
                    amount of bonds of 2005 Series BR 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 2005 Series BR during
                    any period of ten (10) days next preceding any
                    redemption date for such bonds.

                    Bonds of 2005 Series BR, 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 5.45% 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 2005 Series BR in a principal amount equal to the
                    principal amount of such 5.45% 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.            From and after the Release Date (as defined in the Note
                    Indenture), the bonds of 2005 Series BR 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 2005 Series BR shall be surrendered to
                    and 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 2005 Series BR to be less than the then
                    outstanding principal amount of the 5.45% Notes.

                                       24
<PAGE>

REDEMPTION          SECTION 2. Bonds of 2005 Series BR shall be redeemed on the
OF                  respective  dates and in the respective principal amounts
BONDS OF 2005       which correspond to the redemption dates for, and the
SERIES BR           principal amounts to be redeemed of, the 5.45% Notes.

                    In the event the Company elects to redeem any 5.45%
                    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 2005 Series
                    BR on the same date as it gives notice of redemption of
                    5.45% Notes to the Note Indenture Trustee.

REDEMPTION OF       SECTION 3. In the event of an Event of Default under the
BONDS OF 2005       Note Indenture  Series and the acceleration of all 5.45%
SERIES BR IN        Notes, the bonds of 2005 Series BR   shall be redeemable in
EVENT OF            whole upon receipt by the Trustee of a written demand
ACCELERATION        (hereinafter called a "Redemption Demand") from the Note
OF                  Indenture Trustee stating that there has occurred under the
NOTES.              Note Indenture both an Event of Default and a declaration of
                    acceleration of payment of principal, accrued interest
                    and premium, if any, on the 5.45% Notes, specifying the
                    last date to which interest on the 5.45% 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.

                                       25
<PAGE>

                    Each bond of 2005 Series BR 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 5.45%
                    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 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                SECTION 4. The bonds of 2005 Series BR and the form of
OF BONDS OF         Trustee's Certificate to be endorsed on such bonds shall be
2005 SERIES BR.     substantially in the following forms, respectively:

                           THE DETROIT EDISON COMPANY
                       GENERAL AND REFUNDING MORTGAGE BOND
                                 2005 SERIES BR

                    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 as of April 1, 2005, between The Detroit
                    Edison Company and J.P. Morgan Trust Company, National
                    Association, 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-

                                       26
<PAGE>

                    THE DETROIT EDISON COMPANY (hereinafter called the
                    "Company"), a corporation of the State of Michigan, for
                    value received, hereby promises to pay to J.P. Morgan
                    Trust Company, National Association, 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 February 15, 2035 (subject to earlier
                    redemption or release) and interest thereon at the rate
                    of 5.45% per annum, in like lawful money, from February
                    7, 2005, 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
                    February 15 and August 15 of each year (commencing
                    August 15, 2005), 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 April
                    1, 2005 (hereinafter called the "Note Indenture"),
                    between the Company and J.P. Morgan Trust Company,
                    National Association, as trustee (hereinafter called the
                    "Note Indenture Trustee"), the Company has issued its
                    2005 Series BR 5.45% Senior Notes due 2035 (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 J.P. Morgan Trust Company, National
                    Association, 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 manual or facsimile signatures, and
                    its corporate seal, or a facsimile thereof, to be
                    impressed or imprinted hereon and the same to be
                    attested

                                       27
<PAGE>

                    by its Vice President and Corporate Secretary or Assistant
                    Corporate Secretary by manual or facsimile signature.

                    Dated:  _____________

                           THE DETROIT EDISON COMPANY

                             By: AUTHORIZED OFFICER

                    [SEAL]

                    Attest:  AUTHORIZED OFFICER

                         [FORM OF TRUSTEE'S CERTIFICATE]

FORM OF             This bond is one of the bonds, of the series designated
TRUSTEE'S           therein, described in the within-mentioned Indenture.
CERTIFICATE.
                    J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as
                    Trustee

                    By _______________________
                    Authorized Officer

                            [FORM OF REVERSE OF BOND]

                    This bond is one of an authorized issue of bonds of the
                    Company, unlimited as 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 2005 Series BR,
                    limited to an aggregate principal amount of
                    $200,000,000, 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 J.P. Morgan
                    Trust Company, National Association, as successor in
                    interest to Bank One, National Association, as Trustee,
                    to which Indenture and all indentures supplemental
                    thereto (including the Supplemental Indenture dated as
                    of April 1, 2005) reference is hereby made for a
                    description of the properties and franchises mortgaged
                    and conveyed,

                                       28
<PAGE>

                    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
                    April 1, 2005, 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
                    2005 Series BR (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 Indenture or with respect to such bonds
                    (or portions thereof) and interest.

                                       29
<PAGE>

                    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 2005
                    Series BR 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 2005 Series BR 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 2005 Series BR 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 2005

                                       30
<PAGE>

                    Series BR 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 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 III.

                            RECORDING AND FILING DATA

RECORDING           The Original Indenture and indentures supplemental thereto
AND FILING OF       have been  recorded and/or filed and Certificates of
ORIGINAL            Provision for Payment have  been recorded as hereinafter set
INDENTURE.          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           Pursuant to the terms and provisions of the Original
AND FILING OF       Indenture, indentures supplemental thereto heretofore
SUPPLEMENTAL        entered into have been  Recorded as a real estate mortgage
INDENTURES.         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, as set forth in
                    supplemental indentures as follows:

                                       31
<PAGE>

<TABLE>
<CAPTION>
                                                                                           RECORDED AND/OR
                                                                                          FILED AS SET FORTH
      SUPPLEMENTAL                               PURPOSE OF                                 IN SUPPLEMENTAL
       INDENTURE                                SUPPLEMENTAL                                   INDENTURE
      DATED AS OF                                INDENTURE                                   DATED AS OF:
      ------------                              ------------                              ------------------
<S>                            <C>                                                        <C>
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          November 15, 1951
                               Provisions
March 1, 1950(a)(b)(c)         Series J Bonds and Additional Provisions                   November 15, 1951
November 15, 1951(a)(b)(c)     Series K Bonds Additional Provisions and Subject           January 15, 1953
                               Properties
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           June 1, 1959
                               Properties
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           October 1, 1968
                               Properties
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 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
</TABLE>

                                       32
<PAGE>

<TABLE>
<CAPTION>
                                                                                           RECORDED AND/OR
                                                                                          FILED AS SET FORTH
      SUPPLEMENTAL                               PURPOSE OF                                 IN SUPPLEMENTAL
       INDENTURE                                SUPPLEMENTAL                                   INDENTURE
      DATED AS OF                                INDENTURE                                   DATED AS OF:
      ------------                              ------------                              ------------------
<S>                            <C>                                                        <C>
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
February 15, 1977              Series MMP Bonds and Subject Properties                    March 1, 1977
March 1, 1977                  Series IIP Nos. 1-7 Bonds, Series JJP Nos. 1-7 Bonds,      June 15, 1977
                               Series KKP Nos. 1-7 Bonds and Series LLP Nos. 1-7 Bonds
June 15, 1977                  Series FFR No. 14 Bonds and Subject Properties             July 1, 1977
July 1, 1977                   Series NNP Nos. 1-7 Bonds and Subject Properties           October 1, 1977
October 1, 1977                Series GGP Nos. 8-22 Bonds and Series OOP Nos. 1-17        June 1, 1978
                               Bonds and Subject Properties
June 1, 1978                   Series PP Bonds, Series QQP Nos. 1-9 Bonds and Subject     October 15, 1978
                               Properties
October 15, 1978               Series RR Bonds and Subject Properties                     March 15, 1979
March 15, 1979                 Series SS Bonds and Subject Properties                     July 1, 1979
July 1, 1979                   Series IIP Nos. 8-22 Bonds, Series NNP Nos. 8-21 Bonds     September 1, 1979
                               and Series TTP Nos. 1-15 Bonds and Subject Properties
</TABLE>

                                       33
<PAGE>

<TABLE>
<CAPTION>
                                                                                           RECORDED AND/OR
                                                                                          FILED AS SET FORTH
      SUPPLEMENTAL                               PURPOSE OF                                 IN SUPPLEMENTAL
       INDENTURE                                SUPPLEMENTAL                                   INDENTURE
      DATED AS OF                                INDENTURE                                   DATED AS OF:
      ------------                              ------------                              ------------------
<S>                            <C>                                                        <C>
September 1, 1979              Series JJP No. 8 Bonds, Series KKP No. 8 Bonds, Series     September 15, 1979
                               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      August 1, 1981
                               Bonds and 1980 Series DP No. 1-11 Bonds and Subject
                               Properties
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 and Subject Properties           June 1, 1983
June 1, 1983                   1981 Series AP Nos. 15-16 and Subject Properties           October 1, 1984
October 1, 1984                1984 Series AP and 1984 Series BP Bonds and Subject        May 1, 1985
                               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 and Subject Properties                       August 15, 1986
August 15, 1986                1986 Series B and Subject Properties                       November 30, 1986
November 30, 1986              1986 Series C                                              January 31, 1987
January 31, 1987               1987 Series A                                              April 1, 1987
April 1, 1987                  1987 Series B and 1987 Series C                            August 15, 1987
August 15, 1987                1987 Series D and 1987 Series E and Subject Properties     November 30, 1987
November 30, 1987              1987 Series F                                              June 15, 1989
June 15, 1989                  1989 Series A                                              July 15, 1989
July 15, 1989                  Series KKP No. 10                                          December 1, 1989
</TABLE>

                                       34
<PAGE>

<TABLE>
<CAPTION>
                                                                                                  RECORDED AND/OR
                                                                                                 FILED AS SET FORTH
      SUPPLEMENTAL                               PURPOSE OF                                        IN SUPPLEMENTAL
       INDENTURE                                SUPPLEMENTAL                                          INDENTURE
      DATED AS OF                                INDENTURE                                          DATED AS OF:
      ------------                              ------------                                     ------------------
<S>                            <C>                                                        <C>
December 1, 1989               Series KKP No. 11 and 1989 Series BP                       February 15, 1990
February 15, 1990              1990 Series A, 1990 Series B, 1990 Series C, 1990          November 1, 1990
                               Series D, 1990 Series E and 1990 Series F
November 1, 1990               Series KKP No. 12                                          April 1, 1991
April 1, 1991                  1991 Series AP                                             May 1, 1991
May 1, 1991                    1991 Series BP and 1991 Series CP                          May 15, 1991
May 15, 1991                   1991 Series DP                                             September 1, 1991
September 1, 1991              1991 Series EP                                             November 1, 1991
November 1, 1991               1991 Series FP                                             January 15, 1992
January 15, 1992               1992 Series BP                                             February 29, 1992 and April 15, 1992
February 29, 1992              1992 Series AP                                             April 15, 1992
April 15, 1992                 Series KKP No. 13                                          July 15, 1992
July 15, 1992                  1992 Series CP                                             November 30, 1992
July 31, 1992                  1992 Series D                                              November 30, 1992
November 30, 1992              1992 Series E and 1993 Series D                            March 15, 1993
December 15, 1992              Series KKP No. 14 and 1989 Series BP No. 2                 March 15, 1992
January 1, 1993                1993 Series C                                              April 1, 1993
March 1, 1993                  1993 Series E                                              June 30, 1993
March 15, 1993                 1993 Series D                                              September 15, 1993
April 1, 1993                  1993 Series FP and 1993 Series IP                          September 15, 1993
April 26, 1993                 1993 Series G and Amendment of Article II, Section 5       September 15, 1993
May 31, 1993                   1993 Series J                                              September 15, 1993
September 15, 1993             1993 Series K                                              March 1, 1994
March 1, 1994                  1994 Series AP                                             June 15, 1994
June 15, 1994                  1994 Series BP                                             December 1, 1994
August 15, 1994                1994 Series C                                              December 1, 1994
December 1, 1994               Series KKP No. 15 and 1994 Series DP                       August 1, 1995
August 1, 1995                 1995 Series AP and 1995 Series DP                          August 1, 1999
</TABLE>

                                       35
<PAGE>

      (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.

RECORDING OF            All the bonds of Series A which were issued under the
CERTIFICATES OF         Original Indenture dated as of October 1, 1924, and of
PROVISION FOR           Series B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q,
PAYMENT.                R, S, W, Y, Z, AA, BB, CC, DDP Nos. 1-9, FFR Nos. 1-14,
                        GGP Nos. 1-22, HH, IIP Nos. 1-22, JJP Nos. 1-8, KKP Nos.
                        1-9, LLP Nos. 1-15, NNP Nos. 1-21, OOP Nos. 1-18, QQP
                        Nos. 1-17, TTP Nos. 1-15, UU, 1980 Series A, 1980 Series
                        CP Nos. 1-25, 1980 Series DP Nos. 1-11, 1981 Series AP
                        Nos. 1-16, 1984 Series AP, 1984 Series BP, 1985 Series
                        A, 1985 Series B, 1987 Series A, PP, RR, EE, MMP, MMP
                        No. 2, 1989 Series A, 1990 Series A, 1993 Series D, 1993
                        Series G and 1993 Series H which were issued under
                        Supplemental Indentures dated as of, respectively, June
                        1, 1925, August 1, 1927, February 1, 1931, October 1,
                        1932, September 25, 1935, September 1, 1936, December 1,
                        1940, September 1, 1947, November 15, 1951, January 15,
                        1953, May 1, 1953, March 15, 1954, May 15, 1955, August
                        15, 1957, December 15, 1970, November 15, 1971, January
                        15, 1973, May 1, 1974, October 1, 1974, January 15,
                        1975, November 1, 1975, February 1, 1976, June 15, 1976,
                        July 15, 1976, October 1, 1977, March 1, 1977, July 1,
                        1979, March 1, 1977, March 1, 1977, March 1, 1977,
                        September 1, 1979, July 1, 1977, July 1, 1979, September
                        15, 1979, October 1, 1977, June 1, 1978, October 1,
                        1977, July 1, 1979, January 1, 1980, August 15, 1980,
                        November 1, 1981, October 1, 1984 May 1, 1985, May 15,
                        1985, January 31, 1987, June 1, 1978, October 15, 1978,
                        December 15, 1975, February 15, 1977, September 1, 1979,
                        June 15, 1989, February 15, 1990, March 15, 1993, April
                        26, 1992 and September 15, 1992 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.

                                       36
<PAGE>

                                    PART IV.

                                  THE TRUSTEE.

TERMS AND CONDITIONS    The Trustee hereby accepts the trust hereby declared and
OF ACCEPTANCE OF        provided, and agrees to perform the same upon the terms
TRUST BY TRUSTEE.       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 V.

                                 MISCELLANEOUS.

CONFIRMATION OF         Except to the extent specifically provided therein, no
SECTION 318 (c) OF      provision of this Supplemental Indenture or any future
TRUST INDENTURE ACT.    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            THIS SUPPLEMENTAL INDENTURE MAY BE SIMULTANEOUSLY
COUNTERPARTS.           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 AND
                        THE SAME INSTRUMENT.

TESTIMONIUM.            IN WITNESS WHEREOF, THE DETROIT EDISON COMPANY AND J.P.
                        MORGAN TRUST COMPANY, NATIONAL ASSOCIATION 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.

                                       37
<PAGE>

THE DETROIT EDISON COMPANY,

(Corporate Seal)    By: ____________________________________
                        Name:
                        Title:

EXECUTION

Attest:

By: __________________________________
    Name:
    Title:

Signed, sealed and delivered by

THE DETROIT EDISON COMPANY,
in the presence of

______________________________________
Name:

______________________________________
Name:

                                       38
<PAGE>

STATE OF MICHIGAN

SS.:

COUNTY OF WAYNE

Acknowledgement of      On this ____ day of _______ 2005, before me, the
Execution by Company.   subscriber, a Notary Public within and for the County of
                        Wayne, in the State of Michigan, acting in the County of
                        Wayne, personally appeared N.A. Khouri, 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 Vice President and 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 N.A. Khouri
                        acknowledged said instrument to be the free act and deed
                        of said corporation.

(Notarial Seal)

                             _______________________________
                             Notary Public, State of Michigan
                             County of Wayne
                             My Commission Expires ________________
                             Acting in the County of Wayne

                                       39
<PAGE>

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

(Corporate Seal)  By:________________________________
                     Name:
                     Title:

Attest:

Name: ________________________
Title: _______________________

Signed, sealed and delivered by

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,
in the presence of

______________________________________
Name:

______________________________________
Name:

                                       40
<PAGE>

                                STATE OF MICHIGAN
                                SS:
                                COUNTY OF WAYNE

Acknowledgment of       On this _____ day of __________ 2005, before me, the
Execution by Trustee.   subscriber, a Notary Public within and for the County of
                        Wayne, in the State of Michigan, personally appeared
                        ________________, to me personally known, who, being by
                        me duly sworn, did say that his business office is
                        located at 611 Woodward Avenue, Detroit, Michigan 48226,
                        and he is ___________________ of J.P. MORGAN TRUST
                        COMPANY, NATIONAL ASSOCIATION, 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 ________________ acknowledged said instrument
                        to be the free act and deed of said corporation.

(Notarial Seal)         ____________________________________
                        Notary Public, State of Michigan
                        No.
                        County of Wayne
                        Commission Expires _________________
                        Acting in the County of ____________

                                       41
<PAGE>

                                STATE OF MICHIGAN
                                SS:
                                COUNTY OF WAYNE.

Affidavit as            N.A. Khouri being duly sworn, says that he is the Vice
to Consideration        President and Treasurer of THE DETROIT EDISON COMPANY,
and Good Faith.         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.

                     _______________________________________
                     N.A. Khouri
                     Vice President and Treasurer
                     The Detroit Edison Company

              Sworn to before me this ____ day of __________, 2005

(Notarial Seal)      _______________________________________
                     Notary Public, State of Michigan
                     County of Wayne
                     My Commission Expires _______________
                     Acting in the County of Wayne

                                       42
<PAGE>

                         This instrument was drafted by
                           Teresa M. Sebastian, Esq.,

                             When recorded return to
                            Teresa M. Sebastian, Esq.
                                 2000 2nd Avenue
                                     688 WCB
                             Detroit, Michigan 48226

                                       43exv10w1

 

Exhibit 10.1

CSX Corporation

2002 Corporate Director Deferred Compensation Plan

(As amended through April 4, 2005)

          The purpose of this Plan is to permit members of the Board of Directors of CSX Corporation to
elect deferred receipt of director’s fees. This Plan is intended to constitute a deferred
compensation plan for corporate director’s fees. This Plan is not intended to replace or supercede
any prior Director’s deferral plans.

	 	1.  	Definitions

          The following words or terms used herein shall have the following meanings:

	 	(a)  	“Account” or “Accounts” — means the
bookkeeping account(s) maintained for each Participant to record the amount of
Director’s Fees he has elected to defer, as adjusted pursuant to Section 4.
	 
	 	(b)  	“Administrator” — means CSX Corporation

	 	(i)  	Prior to a Change of Control, the
Administrator shall be responsible for the general administration of
the Plan, claims review, and for carrying out its provisions.
Administration of the Plan shall be carried out consistent with the
terms of the Plan.
	 
	 	(ii)  	Following a Change of Control, the Benefits
Trust Committee may remove and/or replace the Administrator.
	 
	 	(iii)  	The Administrator shall have sole and
absolute discretion to interpret the Plan and determine eligibility
for and benefits hereunder. Decisions of the Administrator regarding
participation in and the calculation of benefits under the Plan shall
at all times be binding and conclusive on Participants, their
beneficiaries, heirs and assigns.
	 
	 	(iv)  	Notwithstanding subsection (iii) above,
following a Change of Control, final benefit determinations for
Participants, their beneficiaries, heirs and assigns and decisions
regarding benefit claims under the Plan shall rest with the Benefits
Trust Committee or its delegate in its sole judgment and absolute
discretion.

	 	(c)  	“Benefits Trust Committee” — means the committee
established pursuant to the CSX Corporation and Affiliated Companies Benefits
Assurance Trust document.
	 
	 	(d)  	“Board” — means the Board of Directors of CSX.

 

 

	 	(e)  	“Change of Control” — means any of the following:

	 	(i)  	Stock Acquisition. The
acquisition, by any individual, entity or group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)(a “Person”) of beneficial ownership
(within the meaning of Rule 13d(3) promulgated under the Exchange
Act) of 20% or more of either (A) the then outstanding shares of
common stock of the Corporation (the “Outstanding Corporation Common
Stock”), or (B) the combined voting power of the then outstanding
voting securities of the Corporation entitled to vote generally in
the election of directors (the “Outstanding Corporation Voting
Securities”); provided, however, that for purposes of
this subsection (i), the following acquisitions shall not constitute
a Change of Control: (A) any acquisition directly from the
Corporation; (B) any acquisition by the Corporation; (C) any
acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Corporation or any corporation controlled by the
Corporation; or (D) any acquisition by any corporation pursuant to a
transaction which complies with clauses (A), (B) and (C) of
subsection (iii) of this Section 2(d); or
	 
	 	(ii)  	Board Composition. Individuals
who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a
majority of the Board of Directors; provided, however, that any
individual becoming a director subsequent to the date hereof whose
election or nomination for election by the Corporation’s
shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board of Directors; or
	 
	 	(iii)  	Business Combination. Approval by
the shareholders of the Corporation of a reorganization, merger,
consolidation or sale or other disposition of all or substantially
all of the assets of the Corporation or its principal subsidiary that
is not subject, as a matter of law or contract, to approval by the
Interstate Commerce Commission or any successor

- 2 -

 

	 	   	agency or regulatory body having jurisdiction over such
transactions (the “Agency”) (a “Business Combination”), in each
case, unless, following such Business Combination:

	 	(A)  	all or substantially all of
the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Corporation Common Stock and
Outstanding Corporation Voting Securities immediately prior
to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting
power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may
be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation
which as a result of such transaction owns the Corporation or
its principal subsidiary or all or substantially all of the
assets of the Corporation or its principal subsidiary either
directly or through one or more subsidiaries) in
substantially the same proportions as their ownership,
immediately prior to such Business Combination of the
Outstanding Corporation Common Stock and Outstanding
Corporation Voting Securities, as the case may be;
	 
	 	(B)  	no Person (excluding any
corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of the Corporation
or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common stock of
the corporation resulting from such Business Combination or
the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such
ownership existed prior to the Business Combination; and
	 
	 	(C)  	at least a majority of the
members of the board of directors resulting from such
Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement, or of the
action of the Board of Directors, providing for such Business
Combination; or

- 3 -

 

	 	(iv)  	Regulated Business Combination.
Approval by the shareholders of the Corporation of a Business
Combination that is subject, as a matter of law or contract, to
approval by the Agency (a “Regulated Business Combination”) unless
such Business Combination complies with clauses (A), (B) and (C) of
subsection (iii) of this Section 2(d); or

	 	(v)  	Liquidation or Dissolution.
Approval by the shareholders of the Corporation of a complete
liquidation or dissolution of the Corporation or its principal
subsidiary.

	 	(f)  	“CSX” or “Corporation” — means CSX
Corporation
	 
	 	(g)  	“CSX’s Accountants” — means the independent
accountants, actuaries, benefits consulting firm or other entity engaged by
CSX to provide Participant’s accounting services for the Plan and, if selected
or changed following a Change of Control, approved by the Benefits Trust
Committee.
	 
	 	(h)  	“Deferral Agreement” — means an agreement between a
Participant and CSX under which the Participant agrees to defer Director’s
Fees under the Plan. The Deferral Agreement shall be on a form prescribed by
the Administrator and shall include any amendments, attachments or appendices.
	 
	 	(i)  	“Director’s Fees” — means any compensation, whether
for retainer, for Board meetings or for Committee meetings or otherwise,
payable either in cash or in stock, earned by a Member for services rendered
as a Member.
	 
	 	(j)  	“Distribution Event” — means any of the events
listed in Section 1(e), “Change of Control,” with the following modification:
the words “Approval by the shareholders of the Corporation of,” in the first
line of Sections 1(e)(iii) and 1(e)(iv) are replaced for purposes of this
Section 1(j) with the words, “Consummation of, i.e., actual change in
ownership of Outstanding Corporation Common Stock, Outstanding Corporation
Voting Securities, and/or assets of the Corporation or its principal
subsidiary by reason of,”.
	 
	 	(k)  	“Effective Date” — means January 1, 2003.
	 
	 	(l)  	“Enrollment Form” — means the form prescribed by the
Administrator that a Member who has previously made deferrals under a prior
CSX deferral plan for Directors may file pursuant to Section 4 in order to
become a Participant in the Plan.

- 4 -

 

	 	(m)  	“Form of Payment Election” — means the election by
the Participant of the form of distribution (lump sum or installments) he
will receive from his Account pursuant to Section 6.
	 
	 	(n)  	“Member” — means any person duly elected to the
Board.
	 
	 	(o)  	“Partial Distribution Election” — means a
Distribution Election for a portion of a Participant’s Account under Section
5.
	 
	 	(p)  	“Participant” — means any Member who elects to
participate in the Plan.
	 
	 	(q)  	“Plan” — means the CSX Directors Deferred
Compensation Plan.
	 
	 	(r)  	“Secretary” — means the Corporate Secretary of CSX.
	 
	 	(s)  	“Trust” — means the trust created under the CSX and
Affiliated Companies Benefits Assurance Trust Agreement or a grantor trust or
trusts established by CSX which will substantially conform to the terms of the
Internal Revenue Service model trust as described in Revenue Procedure 92-64,
1992-2 C.B. 422. Except as provided in Section 9, CSX is not obligated to
make any contribution to the Trust.
	 
	 	(t)  	“Term” — means the annual term for which a Member is
elected to serve on the Board of Directors of CSX.
	 
	 	(u)  	“Valuation Date”  — means the last day of each
calendar quarter and such other dates as the Administrator deems necessary or
appropriate to value the Participants’ benefits under this Plan. However,
following a Change of Control, the selection of a Valuation Date other than
the last day of each calendar quarter shall be subject to the approval of the
Benefits Trust Committee.

          In any instance in which the male gender is used herein, it shall also include persons of the
female gender in appropriate circumstances.

	 	2.  	Participation

          A Member may elect to become a Participant for any Term by filing an initial Deferral
Agreement or an Enrollment Form with the Secretary not later than (i) the Effective date or (ii) a
date six months prior to the Annual Meeting for the Term for which Director’s Fees are to be
earned, whichever is later. Such Deferral Agreement shall be effective for purposes of deferring
Director’s Fees only as provided in Section 3. Such Enrollment Form shall be effective for
purposes of transferring balances previously deferred under a prior Company deferral plan to the
Participant’s Accounts only as provided in Section 4. Following a Change of Control, all Deferral
Elections are subject to the approval of the Benefits Trust Committee.

- 5 -

 

	 	3.  	Deferral of Director’s Fees

	 	(a)  	CSX shall, during any year in which a Participant has a
Deferral Election on file with the Secretary, withhold and defer payment of
all or any specified part of Participant’s Director’s Fees in accordance with
his Deferral Election. A Participant may elect to change the amount of
Director’s Fees he elects to defer, modify a Deferral Agreement or revoke a
Deferral Agreement by filing a new Deferral Agreement with the Secretary not
later than (i) a date six months prior to the Annual Meeting for the Term for
which Director’s Fees are to be earned or (ii) November 1 of the calendar year
immediately prior to the Annual Meeting for the Term for which Director’s Fees
are to be earned, whichever is later.
	 
	 	(b)  	Any person who becomes a Member and who was not a Member six
months prior to the beginning of his Term as a Member may file a Deferral
Election during the first thirty (30) days he is a Member.

	 	4.  	Participant’s Accounts

	 	(a)  	So long as he or she is a Member, a Participant may elect on
a Deferral Agreement or other form provided by the Administrator to have all
or any portion of his or her eligible deferred Director’s Fees, not required
to be credited or actually credited to the Stock Account pursuant to the terms
of the CSX Corporation Stock Plan for Directors, credited to an
interest-accruing account (“Interest Account”), a CSX Phantom Stock Account
(“Phantom Stock Account”), and/or an account or accounts related to the
earnings benchmarks used in conjunction with the 2002 Deferred Compensation
Plan of CSX Corporation and Affiliated Companies (the “Executive Deferred
Compensation Plan” or “EDC Plan”) (other than the CSX Common Stock Fund) (an
“EDC Plan Benchmark Account”) approved from time to time by the Administrator.
	 
	 	(b)  	A Participant who is eligible to receive a portion of his
Director’s Fees in CSX common stock pursuant to the CSX Corporation Stock Plan
for Directors may file with the Secretary a Deferral Agreement with respect to
such CSX common stock. A Participant’s Stock Account (“Stock Account”) will
be created when he files his initial Deferral Agreement with respect to
Director’s Fees payable in CSX common stock.
	 
	 	(c)  	Interest shall accrue on the Interest Account from the first
day of the month following the deferred Director’s Fee would otherwise have
been paid to the Participant until it is actually paid, such

- 6 -

 

	 	   	interest to be credited to the Participant’s Account and compounded
quarterly at the end of each calendar quarter. The rate of interest will
be reviewed periodically, provided, however, following a Change of
Control, any change in the rate of interest is subject to the approval of
the Benefits Trust Committee. Effective January 1, 2004, interest will be
credited quarterly based on the annual rate of 10-year U.S. Treasury bonds
as published by the Wall Street Journal as of the first business day of
October in the preceding calendar year. Such rate will be reviewed and
updated annually.
	 
	 	(d)  	Credits to the Phantom Stock Account and the Stock Account
shall be in full and fractional units based on the average of the high and low
price for CSX common stock as reported on the New York Stock Exchange -
Composite Listing (“NYSE”) on the date the Director’s Fees would otherwise
have been paid to the Participant.
	 
	 	(e)  	Dividends shall be credited in full and fractional units to
the Phantom Stock Account based on the number of units in the Account on the
record date and calculated based on the average of the high and low price for
CSX common stock on the dividend payment date.
	 
	 	(f)  	Dividends shall be credited in full and fractional units to
the Stock Account based on the number of units in the Account on the record
date and calculated based on (i) the actual purchase price of CSX common stock
acquired to the extent shares are actually purchased by the trustee of the
Director’s Stock Trust or a successor trust, or (ii) the number of units in
the Account on the record date and calculated based on the average of the high
and low price for CSX common stock on the dividend payment date.
	 
	 	(g)  	A Participant, while a Member, may elect at any time to
transfer all or any portion of amounts deferred, including all earnings
thereon, between his or her Interest Account, Phantom Stock Account, and/or an
EDC Plan Benchmark Account on forms provided by and pursuant to rules
established by the Administrator. No transfer (as opposed to mandatory or
elective deferrals) may be made into or out of a Stock Account while a
Participant is a Member.
	 
	 	(h)  	A Member who has previously deferred shares of CSX common
stock granted pursuant to the CSX Corporation Stock Plan for Directors (“Stock
Plan”) may elect to have a Stock Account created for him in the Plan on the
Effective Date by filing an Enrollment Form with the Secretary on or before
the Effective Date. Filing the Enrollment Form will cause the transfer of
such previously deferred share balances to the Participant’s Stock

- 7 -

 

	 	   	Account on the Effective Date, and the Member will enjoy all rights and
privileges of a Participant including the ability to file initial
Distribution Elections and Form of Payment Elections. A properly filed
Enrollment Form will cause all prior elections made with respect to such
previously deferred shares to be void immediately, unless otherwise stated
in this Section 4.
	 
	 	(i)  	A Member who is a participant in the CSX Corporation
Corporate Director Deferred Compensation Plan (“Director Plan”) may elect to
have an Interest Account or a Phantom Stock Account created for him in the
Plan on the Effective Date by filing an Enrollment Form with the Secretary on
or before the Effective Date. Filing the Enrollment Form will cause the
transfer of balances previously deferred to the Participant’s Accounts on the
Effective Date, and the Member will enjoy all rights and privileges of a
Participant including the ability to file initial Distribution Elections and
Form of Payment Elections and to transfer shares between an Interest Account
and a Phantom Stock Account. A properly filed Enrollment Form will cause all
prior elections made under the Director Plan to be void immediately, unless
otherwise stated in this Section 4.
	 
	 	(j)  	With respect to transfers to a Participant’s Accounts of
amounts previously deferred pursuant to Sections 4(h) and 4(i):

	 	(i)  	No initial Distribution Election made with
respect to such previously deferred amounts which designates
distribution upon attainment of a designated age under Section 5 that
will be attained within 12 months following the Effective Date shall
be filed.
	 
	 	(ii)  	No initial Distribution Election made with
respect to such previously deferred amounts which designates
distribution upon the Participant’s retirement from the Board under
Section 5 shall be effective if distribution would occur within 12
months following the Effective Date.
	 
	 	(iii)  	Any prior election made with respect to
such previously deferred amounts which designates distribution upon
the Participant’s retirement from the Board shall remain in effect
for 12 months following the Effective Date, and shall be void
thereafter.

	 	(k)  	The value of a Participant’s Interest Account shall be the
sum of amounts deferred and all interest accrued thereon. The value of a
Phantom Stock Account or Stock Account shall be the value of the units in a
Participant’s Account based on the average of the high

- 8 -

 

	 	   	and low price for CSX common stock as reported on the NYSE on the last
business day prior to the date of any lump sum or installment
distribution. The value of a Phantom Stock Account or Stock Account will
fluctuate in value in line with the fluctuation in the price of CSX common
stock. There can be no assurance on the market value of CSX common stock
either at the time of crediting to a Participant’s Account or at any time
during the distribution period, nor can there be any assurance as to the
continuation of dividends.
	 
	 	(l)  	EDC Plan Benchmark Accounts will be credited with earnings,
gains, and losses, and valued in the manner such accounts are maintained and
administered under the EDC Plan.

	 	5.  	Distribution of Deferred Director’s Fees

	 	(a)  	Amounts deferred under the Plan and credited to an Account
shall be distributed to a Participant from such Account in a lump sum one year
following the date in which a Participant ceases to be a Member, unless he
shall file a Distribution Election as provided in this Section 5 or a Form of
Payment Election as provided in Section 6.
	 
	 	(b)  	A Participant may file with the Secretary a Distribution
Election for the distribution from an Account upon:

	 	(i)  	attainment of a designated age, however, he
shall not elect an age that he will attain less than one year
subsequent to his Distribution Election; or
	 
	 	(ii)  	retirement from the Board.

	 	(c)  	A Participant may file a Distribution Election or change a
Distribution Election at any time prior to:

	 	(i)  	a date that is 30 days subsequent to the
date of his retirement from the Board in the case of his initial
Distribution Election; or
	 
	 	(ii)  	one year prior to the date distribution is
to commence under his Distribution Election then in effect,

	   	after which time no Distribution Election shall be filed.

	 	(d)  	A Participant may make a Partial Distribution Election with
respect to any portion of a Participant’s Account, provided no Distribution
Election shall be made for a portion of an Account less than $2,000, as
determined as of the date the election is made.

- 9 -

 

	 	   	No Participant shall have more than two Distribution Elections in effect
for an Account at any time.
	 
	 	(e)  	Except in the event of retirement from the board,
distribution made pursuant to a Distribution Election shall not commence prior
to a date that is three years subsequent to the date the Participant first
makes a Deferral under either this Plan or a predecessor plan which provides
for the deferral of Director’s Fees
	 
	 	(f)  	Any Distribution Election made in proper form by a
Participant shall be effective and distribution shall commence pursuant to
such Distribution Election. Any Distribution Election not made in proper form
shall be void. Distributions from a Participant’s Stock Account shall be made
only in shares of CSX common stock.
	 
	 	(g)  	A Participant may request and receive a withdrawal from his
Account at any time without filing a Distribution Election under this Section
5. Any such withdrawal shall result in the forfeiture of an amount equal to
the portion of the Participant’s Account that is withdrawn, multiplied by the
Mid-term Applicable Federal Rate determined as of the Valuation Date upon
which the withdrawal is effective. Notwithstanding the preceding, following a
Change of Control, any decisions or determinations by the Administrator under
this Section 5 shall be subject to the approval of the Benefits Trust
Committee.
	 
	 	(h)  	A Participant may make one additional election to defer (but
not accelerate) commencement of payment under the Plan at any time six months
before payments are to have commenced (“Re-deferral Election). Such
Re-deferral Election shall be made in a form prescribed by the Administrator.
If such Re-deferral Election is to a designated age the re-deferral shall be
for a period not less than one year from the date the Re-deferral Election is
made.

	 	6.  	Form of Payment

	   	            The Form of Payment Elections provided in this Section 6 shall be made in writing and may be
changed at any time prior to a date that is six months prior to the date distribution is to
commence, after which time the Form of Payment Election shall be irrevocable. If installment
payments are elected for an Account, payments shall be made, as the Participant may elect, for
either (a) five years, (b) ten years, or (c) fifteen years. Installments shall be on an annual or
quarterly basis as the Participant may elect. The amount of each installment shall be determined
by multiplying the value of the Participant’s account at the end of the calendar quarter
immediately preceding the installment date by a fraction, the numerator of which shall be one (1)
and the denominator of which shall be the number of installment payments over which payment of such
amount is to be made, less the number of installment payments theretofore made.

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In the case of installments from a Stock Account, fractional share amounts shall be rounded up
to the next highest whole share amount, except in the case of the final installment, in which case
a cash payment will be made for any fractional shares.

	 	7.  	Death of a Participant

	 	(a)  	In the event a Participant shall die while he is a Member,
the balance of his Accounts shall be paid in either a lump sum or installments
(consistent with the Form of Payment Elections made by the Participant as
described in Section 6) to his Designated Beneficiary. Each Participant may
file with the Secretary a Designation of Beneficiary for this purpose.
	 
	 	(b)  	In the event a Participant shall die after he ceases to be a
Member and before he has received complete distribution from his Account, the
balance credited to his Account, (including applicable interest) shall be paid
to his Designated Beneficiary consistent with the Form of Payment Elections
made by the Participant as described in Section 6.
	 
	 	(c)  	In the event a Participant shall not file a Designation of
Beneficiary, or his Designated Beneficiary is not living at the Participant’s
death, the balance credited to his Accounts, (including applicable interest)
shall be paid in full to his estate not later than the tenth day of the
calendar year following his date of death.

	 	8.  	Obligation of CSX

          This Plan shall be unfunded and credits to the Accounts of each Participant shall not be set
apart for him nor otherwise made available so that he may draw upon it at any time, except as
provided in this Plan. Neither any Participant nor his Designated Beneficiary shall have any
right, title, or interest in such credits or any claim against them. Payments may only be made at
such times and in the manner expressly provided in this Plan. CSX’s contractual obligation is to
make the payments when due. No notes or security for the payment of any Participant’s account
shall be issued by CSX.

	 	9.  	Change of Control

	 	(a)  	If a Change of Control has occurred, the Administrator shall
cause CSX to contribute to the Trust, within 7 days of such Change of Control,
a lump sum payment equal to the unfunded aggregate value of the amount each
Participant would be eligible to receive under 9(b) below (but calculated with
respect to the Valuation Date described in this sentence, rather than the date
of the applicable Distribution Event) as of the latest Valuation Date
coinciding with or preceding the date of Change of Control to the extent such
amounts are not already in the Trust. The aggregate value of the amount of
the lump sum to be contributed to the Trust pursuant to

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	 	   	this Section 9 shall be determined by CSX’s Accountants after consultation
with the entity then maintaining the Plan’s records. Thereafter, CSX’s
Accountants shall annually determine as of a Valuation Date for each
Participant not receiving a lump sum payment pursuant to Section 9(b),
below, the amounts which would be payable under such subsection were a
Distribution Event to occur at the date of such determination. To the
extent that the value of the assets held in the Trust relating to this
Plan do not equal the aggregate amount described in the preceding
sentence, at the time of the valuation, as determined by CSX’s
Accountants, CSX shall make a lump sum contribution to the Trust equal to
the difference. In no event, however, shall the Company’s contribution to
the Trust be less than the amount that would have been contributed thereto
with respect to liabilities relating to the Plan (including related
administrative and investment expenses), pursuant to and at the time and
in the manner provided under Section 1(h) of the Trust.

	 	(b)  	In the event a Distribution Event has occurred, the trustee
of the Trust shall, within 45 days of such Distribution Event, pay to each
Participant not making an election under 9(c) below, a lump sum payment equal
to the amount the Participant would have been entitled to receive determined
under Section 6 had he ceased to be a Member and selected an immediate lump
sum payment. The amount of each Participant’s lump sum payment shall be
determined by CSX’s Accountants.
	 
	 	(c)  	New Participants in the Plan may elect in a time and manner
determined by the Administrator, but in no event later than 90 days after
becoming a Participant, to have amounts and benefits determined and payable
under the terms of the Plan as if a Distribution Event had not occurred. A
Participant who has made an election, as set forth in the preceding sentence,
may, at any time and from time to time, change that election; provided,
however, a change of election that is made within one year of a Distribution
Event shall be invalid.
	 
	 	(d)  	Notwithstanding anything in the Plan to the contrary, each
Participant who has made an election under Section 9(c), above, may elect
within 90 days following a Distribution Event, in a time and manner determined
by the Administrator, to receive a lump sum payment calculated under the
provisions of 9(b), above, determined as of the Valuation Date next preceding
such payment, except that such calculated amount shall be reduced by 5% and
such reduction shall be irrevocably forfeited to CSX by the Participant.
Furthermore, as a result of such election, the Participant shall no longer be
eligible to participate or otherwise

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	 	   	benefit from the Plan. Payments under this Section 9(d) shall be made not
later than 7 days following receipt by CSX of the Participant’s election.
The Administrator shall, no later than 7 days after a Distribution Event
has occurred, give written notification to each Participant eligible to
make an election under this Section 9(d), that a Distribution Event has
occurred and informing such Participant of the availability of the
election.

	 	10.  	Claims Against Participant’s Account

          No credits to the account of any Participant under this Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to do so shall be void. Nor shall any credit be subject to attachment or legal process for
debts or other obligations. Nothing contained in this Plan shall give any Participant any
interest, lien, or claim against any specific asset of CSX. No Participant or his Designated
Beneficiary shall have any rights other than as a general creditor of CSX.

	 	11.  	Competition by Participant

          In the event a Participant ceases to be a Member and becomes a proprietor, officer, partner,
employee, director, or otherwise becomes affiliated with any business that is in competition with
the Corporation, the entire balance credited to his account, including interest, or the value of
the units in his Phantom Stock Account or Stock Account, if prior to a Change of Control, may, if
directed by the Board in its sole discretion, be paid immediately to him in a lump sum. Following
a Change of Control, such a decision by the Board is subject to the approval of the Benefits Trust
Committee.

	 	12.  	Payment of Credit Balance to Participant’s Account

          Notwithstanding anything herein to the contrary, prior to a Change of Control, the Board may,
in its sole discretion, direct payment in a lump sum, of any or all of the credit balance appearing
at the time in the account of a Participant, and/or of the value of the units in his Phantom Stock
Account or Stock Account. Following a Change of Control, such action by the Board is subject to
the approval of the Benefits Trust Committee.

          Further, the obligations of CSX and the benefit due any Participant or Designated Beneficiary
under the Plan shall be reduced by any amount received in regard thereto under the Trust or any
similar trust or other vehicle.

	 	13.  	Joint and Several Obligation

          To the extent reflected by resolutions of the applicable boards of directors, obligations for
benefits under this Plan shall be joint and several.

- 13 -

 

	 	14.  	Amendment or Termination

          Prior to a Change of Control, this Plan may be altered, amended, suspended, or terminated at
any time by the Board, on the recommendation of the Compensation Committee of the Board, provided,
however, that no alteration, amendment, suspension, or termination shall be made to this Plan which
would result in the distribution of amounts credited to the accounts of all Participants in any
manner other than is provided in this Plan without the consent of all Participants.

	 	15.  	Impact of Future Legislation or Regulation

	 	(a)  	This Section 15 shall become operative upon the enactment of
any change in applicable statutory law or the promulgation by the Internal
Revenue Service of a final regulation or other pronouncement having the force
of law, which statutory law, as changed, or final regulation or pronouncement,
as promulgated, would cause any Participant to include in his federal gross
income amounts accrued by the Participant under the Plan on a date (an “Early
Taxation Event”) prior to the date on which such amounts are made available to
him or her hereunder.
	 
	 	(b)  	Notwithstanding any other Section of this Plan to the
contrary (but subject to subsection (c), below), as of an Early Taxation
Event, the feature or features of this Plan, or the election by a Participant
that would cause the Early Taxation Event shall be null and void, to the
extent, and only to the extent, required to prevent the Participant from being
required to include in his federal gross income amounts accrued by the
Participant under the Plan prior to the date on which such amounts are made
available to him hereunder. By way of example, but not by way of limiting the
generality of the foregoing, if a statute is enacted that would require a
Participant to include in his or her federal gross income amounts accrued by
the Participant under the Plan prior to the date on which such amounts are
made available to him or her because of the Participant’s right to receive a
distribution of a portion of his Account under Section 6(h), the right of all
Participants to receive distributions under Section 6(h) shall be null and
void as of the effective date of that statute. If only a portion of a
Participant’s Account is impacted by the change in the law, then only such
portion shall be subject to this Section, with the remainder of the Account
not so affected being subject to such rights and features as if the law were
not changed. If the law only impacts Participants who have a certain status
with respect to the Company, then only such Participants shall be subject to
this Section.
	 
	 	(c)  	Notwithstanding Section 15(b) above, if an Early Taxation
Event occurs (e.g., if a change in law is retroactive), the amounts that
become taxable on the Early Taxation Event shall be distributed to each
Participant as soon as practicable following such Early Taxation Event or
if later, the date of enactment or promulgation.

- 14 -

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