Document:

exv4w256

Exhibit 4-256

 

THE DETROIT EDISON COMPANY

AND

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

TRUSTEE

 

TWENTY-FIFTH SUPPLEMENTAL INDENTURE

DATED AS OF JUNE 1, 2008

 

SUPPLEMENTING THE COLLATERAL TRUST INDENTURE

DATED AS OF JUNE 30, 1993

PROVIDING FOR

2008 SERIES G 5.60% SENIOR NOTES DUE 2018

 

 

 

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

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

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

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

     WHEREAS, the Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, including Section 1001 thereof, and pursuant
to appropriate resolutions of the Board of Directors, has duly determined to make, execute and
deliver to the Trustee this Twenty-Fifth Supplemental Indenture to the Original Indenture as
permitted by Sections 201 and 301 of the Original Indenture in order to establish the form or terms
of, and to provide for the creation and issue of, a series of its debt securities under the
Original Indenture, which shall be known as the 2008 Series G 5.60% Senior Notes due 2018.

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

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

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ARTICLE ONE

DEFINITIONS AND OTHER

PROVISIONS OF GENERAL APPLICATION

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

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

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

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

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

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

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     “Original Issue Date” means June 11, 2008.

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

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

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

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

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

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

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

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ARTICLE TWO

TITLE AND TERMS OF THE SECURITIES

     SECTION 2.01. Title of the Securities; Stated Maturity. This Twenty-Fifth Supplemental
Indenture hereby establishes a series of Securities, which shall be known as the Company’s “2008
Series G 5.60% Senior Notes due 2018” (the “Notes”). For purposes of the Original Indenture, the
Notes shall constitute a single series of Securities. The Stated Maturity on which the principal
of the Notes shall be due and payable will be June 15, 2018.

     SECTION 2.02. Certain Variations from the Original Indenture.

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

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

     SECTION 2.03. Amount and Denominations; DTC

     (a) The aggregate principal amount of Notes that may be issued under this Twenty-Fifth
Supplemental Indenture is limited to $300,000,000 (except as provided in Section 301(2) of the
Original Indenture); provided that the Company may, without the consent of the Holders of the

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

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

     SECTION 2.04. Certain Terms of the Notes.

     (a) The Notes shall bear interest at the rate of 5.60% per annum on the principal amount
thereof from the date of original issuance, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, until the principal of the Notes becomes due and
payable, and on any overdue principal and premium and (to the extent that payment of such interest
is enforceable under applicable law) on any overdue installment of interest at the same rate per
annum during such overdue period. Interest on the Notes will be payable semi-annually in arrears
on June 15 and December 15 of each year (each such date, an “Interest Payment Date”), commencing
December 15, 2008. The amount of interest payable for any period shall be computed on the basis of
a 360-day year and twelve 30-day months.

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

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

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

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

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

ARTICLE THREE

ADDITIONAL COVENANTS

     SECTION 3.01. Limitations on Liens.

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

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

     The foregoing restriction will not apply to:

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

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

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

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

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

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

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

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

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

ARTICLE FOUR

SECURITY AND RELEASE PROVISIONS

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

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

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

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

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

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

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

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

     SECTION 4.03. Substitute Mortgage Bonds.

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

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

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

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

10

 

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

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

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

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

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

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

     SECTION 4.04. Events of Default.

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

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

11

 

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

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

ARTICLE FIVE

MISCELLANEOUS PROVISIONS

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

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

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

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

12

 

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

	 	 	 	 	 	 
	 	 	THE DETROIT EDISON COMPANY	 
	 
	 	 	 	 	 
	 

	 	By: /s/Paul A. Stadnikia	 
	 

	 	 
	 
	 

	 	Name: 
	Paul A. Stadnikia	 
	 

	 	Title:
	Assistant Treasurer	 

ATTEST:

	 	 	 	 	 
	By:  /s/Sandra Kay Ennis
 

	 	 
	
Name: 

	
 

Sandra Kay Ennis
	 	 
	Title:

	Corporate Secretary	 	 

13

 

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

	 	By: 
/s/J. Michael Banas
	 

	 	 

	 

	 	Name: 

J. Michael Banas
	 

	 	Title: 
Vice President

ATTEST:

	 	 	 	 	 
	By:  

/s/Alexis M. Johnson
 

	 	 
	
Name: 
Alexis M. Johnson
	 	 
	Title: 
Authorized Officer	 	 

14

 

EXHIBIT A

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

	 	 	 	 	 
	NO. R-___
	$	 		 
	 
	 	 	 	 
	CUSIP 
              
             
     
        
	 	 	 	 

THE DETROIT EDISON COMPANY

2008 SERIES G 5.60% SENIOR NOTES DUE 2018

Principal Amount: $

Authorized Denomination: $1,000

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

Original Issue Date: June 11, 2008

Stated Maturity: June 15, 2018

Interest Payment Dates: June 15 and December 15 of each year, commencing December 15, 2008

Interest Rate: 5.60% per annum

     THE DETROIT EDISON COMPANY, a corporation duly organized and existing under the laws of the
State of Michigan (the “Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered
assigns, at the office or agency of the Company in The City of New York, New York, the principal
sum of
                  
 ($                  
         
) on June 15, 2018 (the “Stated Maturity”), in the coin or
currency of the United States, and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, in arrears on each Interest Payment Date as specified above, commencing on December
15, 2008 and on the Stated Maturity at the rate per

A-1 

 

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

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

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

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

A-2 

 

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

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

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

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

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

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

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

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

A-3 

 

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

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

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

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

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

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

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

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

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

A-4 

 

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

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

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

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

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

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

A-5 

 

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

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

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

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

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

A-6 

 

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

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

A-7 

 

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

	 	 	 	 	 	 
	 	 	THE DETROIT EDISON COMPANY	 
	 
	 	 	 	 	 
	[Corporate Seal]
	 	 	 	 	 
	 

	 	By:	 	 	 
	 	 	 
	 
	 

	 	Name:	 	 	 
	 

	 	Title:	 	 	 

ATTEST:

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

A-8 

 

CERTIFICATE OF AUTHENTICATION

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

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

as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Date:                                        

A-9 

 

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

					
	 
	 

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

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

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

Dated:                                        

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

A-10exv4w257

Exhibit 4-257

INDENTURE

DATED AS OF JULY 1, 2008

 

THE DETROIT EDISON COMPANY

(2000 2nd Avenue, Detroit, Michigan 48226)

TO

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

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

AS
TRUSTEE

 

SUPPLEMENTAL TO MORTGAGE AND DEED OF TRUST

DATED AS OF OCTOBER 1, 1924

PROVIDING FOR

(A) GENERAL AND REFUNDING MORTGAGE BONDS,

2008 SERIES KT

AND

(B) RECORDING AND FILING DATA

 

 

TABLE OF CONTENTS*

	 	 	 	 	 
	 	 	PAGE
	PARTIES
	 	 	3	 
	RECITALS
	 	 	3	 
	Original Indenture and Supplementals
	 	 	3	 
	Issue of Bonds Under Indenture
	 	 	3	 
	Bonds Heretofore Issued
	 	 	4	 
	Reason for Creation of New Series
	 	 	10	 
	Bonds to be 2008 Series KT
	 	 	10	 
	Further Assurance
	 	 	10	 
	Authorization of Supplemental Indenture
	 	 	11	 
	Consideration for Supplemental Indenture
	 	 	11	 
	PART I. CREATION OF THREE HUNDRED FIFTY-SECOND SERIES OF BONDS, GENERAL AND
REFUNDING
 MORTGAGE BONDS, 2008 SERIES KT
	 	 	11	 
	Sec. 1. Terms of Bonds of 2008 Series KT
	 	 	11	 
	Sec. 2. Release
	 	 	14	 
	Sec. 3. Redemption of Bonds of 2008 Series KT
	 	 	14	 
	Sec. 4. Redemption of Bonds of 2008 Series KT in Event of
Acceleration of Notes or in Event of Redemption of Notes

Upon
Acceleration of Strategic Fund Bonds
	 	 	14	 
	Sec. 5. Form of Bonds of 2008 Series KT
	 	 	15	 
	Form of Trustee’s Certificate
	 	 	19	 
	PART II. RECORDING AND FILING DATA
	 	 	20	 
	Recording and Filing of Original Indenture
	 	 	20	 
	Recording and Filing of Supplemental Indentures
	 	 	20	 
	Recording and Filing of Supplemental Indenture Dated as of May 1, 2008
	 	 	25	 
	Recording of Certificates of Provision for Payment
	 	 	26	 
	PART III. THE TRUSTEE
	 	 	26	 
	Terms and Conditions of Acceptance of Trust by Trustee
	 	 	26	 
	PART IV. MISCELLANEOUS
	 	 	27	 
	Confirmation of Section 318(c) of Trust Indenture Act
	 	 	27	 
	Execution in Counterparts
	 	 	27	 
	EXECUTION
	 	 	27	 
	Testimonium
	 	 	27	 
	Execution by Company
	 	 	28	 
	Acknowledgment of Execution by Company
	 	 	29	 
	Execution by Trustee
	 	 	30	 
	Acknowledgment of Execution by Trustee
	 	 	31	 
	Affidavit as to Consideration and Good Faith
	 	 	32	 

 

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

2

 

	 	 	 
	PARTIES.

	 	SUPPLEMENTAL INDENTURE, dated as of the 1st day of July,
in the year 2008, between THE DETROIT EDISON COMPANY, a
corporation organized and existing under the laws of the
State of Michigan and a public utility (hereinafter
called the “Company”), party of the first part, and J.P.
Morgan Trust Company, National Association, a trust
company organized and existing under the laws of the
United States, having a corporate trust agency office at
719 Griswold Street, Suite 930, Detroit, Michigan 48226,
as successor Trustee under the Mortgage and Deed of Trust
hereinafter mentioned (hereinafter called the “Trustee”),
party of the second part.
	 
	 	 
	ORIGINAL INDENTURE AND
SUPPLEMENTALS.

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

	 	 WHEREAS, the Indenture provides that said bonds shall be
issuable in one or more series, and makes provision that
the rates of interest and dates for the payment thereof,
the date of maturity or dates of maturity, if of serial
maturity, the terms and rates of optional redemption (if
redeemable), the forms of registered bonds without
coupons of any series and any other provisions and

3

 

	 	 	 
	 

	 	agreements in respect thereof, in the Indenture provided
and permitted, as the Board of Directors may determine,
may be expressed in a supplemental indenture to be made
by the Company to the Trustee thereunder; and
	 
	 	 
	BONDS HERETOFORE ISSUED.

	 	WHEREAS, bonds in the principal amount of Twelve billion
nine hundred forty eight million nine hundred
seventy-seven thousand dollars ($12,948,977,000) have
heretofore been issued under the Indenture as follows,
viz:

	 	 	 	 	 
	(1)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4

 

	 	 	 	 	 
	 
	 	 	 	 
	(23-31)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	 	Bonds of Series U
	 	— Principal Amount $75,000,000,
	 
	 	 	 	 
	(258)

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

5

 

	 	 	 	 	 
	(259)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6

 

	 	 	 	 	 
	(285)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	 	Bonds of 2005 Series DT
	 	— Principal Amount $119,175,000, and
	 
	 	 	 	 
	(316)

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

7

 

	 	 	 
	 

	 	all of which have either been retired and cancelled, or no longer represent
obligations of the Company, having matured or having been called for
redemption and funds necessary to effect the payment, redemption and
retirement thereof having been deposited with the Trustee as a special trust
fund to be applied for such purpose;
	 
	 	 
	(317)

	 	Bonds of 1990 Series B in the principal amount of Two hundred fifty-six
million nine hundred thirty-two thousand dollars ($256,932,000) of which One
hundred eighty million eight hundred four thousand dollars ($180,804,000)
principal amount have heretofore been retired;
	 
	 	 
	(318)

	 	Bonds of 1990 Series C in the principal amount of Eighty-five million four
hundred seventy-five thousand dollars ($85,475,000) of which Sixty four
million nine hundred sixty one thousand dollars ($64,961,000) principal amount
have heretofore been retired;
	 
	 	 
	(319)

	 	INTENTIONALLY RESERVED FOR 1990 SERIES E;
	 
	 	 
	(320)

	 	INTENTIONALLY RESERVED FOR 1990 SERIES F;
	 
	 	 
	(321)

	 	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;
	 
	 	 
	(322)

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

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

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

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

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

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

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

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

8

 

	 	 	 
	 

	 	outstanding at the date hereof;
	 
	 	 
	(330)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9

 

	 	 	 
	(345)

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

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

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

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

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

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

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

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

	 	 	 
	REASON FOR CREATION OF NEW SERIES.

	 	WHEREAS, the Company intends to issue a series of Notes
under the Note Indenture herein referred to, and,
pursuant to the Note Indenture, in order to secure its
obligations under the Loan Agreement dated as of July 1,
2008 between the Company and the Michigan Strategic Fund
relating to the Michigan Strategic Fund Variable Rate
Limited Obligation Refunding Revenue Bonds (The Detroit
Edison Company Exempt Facilities Project), Series 2008KT
(the “Strategic Fund Bonds”) being issued under the Trust
Indenture dated as of July 1, 2008 (the “Strategic Fund
Indenture”) between the Michigan Strategic Fund and The
Bank of New York Mellon Trust Company, N.A., as trustee
(the “Strategic Fund Bond Trustee”), the Company has
agreed to issue its General and Refunding Mortgage Bonds
under the Indenture in order further to secure its
obligations with respect to such Notes; and
	 
	 	 
	BONDS TO BE 2008 SERIES KT.

	 	WHEREAS, for such purpose the Company desires by this
Supplemental Indenture to create a new series of bonds,
to be designated “General and Refunding Mortgage Bonds,
2008 Series KT,” in the aggregate principal amount of
Thirty-two million three hundred seventy-five thousand
dollars ($32,375,000), 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

10

 

	 	 	 
	 

	 	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 SUPPLEMENTAL
INDENTURE.

	 	WHEREAS, the Company in the exercise of the powers and
authority conferred upon and reserved to it under and by
virtue of the provisions of the Indenture, and pursuant
to resolutions of its Board of Directors, has duly
resolved and determined to make, execute and deliver to
the Trustee a supplemental indenture in the form hereof
for the purposes herein provided; and
	 
	 	 
	 

	 	WHEREAS, all conditions and requirements necessary to
make this Supplemental Indenture a valid and legally
binding instrument in accordance with its terms have been
done, performed and fulfilled, and the execution and
delivery hereof have been in all respects duly
authorized;
	 
	 	 
	CONSIDERATION FOR SUPPLEMENTAL
INDENTURE.

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

			
	 
	 

	 	PART I.
	 
	 

	 	CREATION OF THREE HUNDRED FIFTY-SECOND
	 

	 	SERIES OF BONDS,
	 

	 	GENERAL AND REFUNDING MORTGAGE BONDS,
	 

	 	2008 SERIES KT
	 
	 	 
	TERMS OF BONDS OF
2008 SERIES KT.

	 	SECTION 1. The Company hereby creates the three hundred fifty-second series of bonds
to be issued under and secured by the Original Indenture as amended to date and as
further amended by this Supplemental Indenture, to be designated, and to be
distinguished from the bonds of all other series, by the title “General and
Refunding Mortgage Bonds, 2008 Series KT” (elsewhere herein referred to as the
“bonds of 2008 Series KT”). The aggregate principal amount of bonds of 2008 Series
KT shall be limited to Thirty-two million three hundred seventy-five thousand
dollars ($32,375,000), except as provided in Sections 7 and 13 of Article II of the
Original Indenture with respect to exchanges and replacements of bonds.
	 
	 	 
	 

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

11

 

	 	 	 
	 

	 	Indenture Trustee”),
under the collateral trust indenture, dated as of June 30, 1993, as supplemented
(the “Note Indenture”), between the Note Indenture Trustee and the Company, to
secure payment of the Company’s 2008 Series KT Variable Rate Senior Notes due 2020
(for purposes of this Part I, the “Notes”).
	 
	 	 
	 

	 	The bonds of 2008 Series KT shall be issued as registered bonds without coupons in
denominations of a multiple of $1,000. The bonds of 2008 Series KT shall be issued
in the aggregate principal amount of $32,375,000, shall mature on July 1, 2020
(subject to earlier redemption or release) and shall bear interest at the rate of
interest established for the Strategic Fund Bonds from time to time in accordance
with the Strategic Fund Indenture, payable on such dates as interest shall be
payable on the Strategic Fund Bonds, until the principal thereof shall have become
due and payable and thereafter until the Company’s obligation with respect to the
payment of said principal shall have been discharged as provided in the Indenture.
	 
	 	 
	 

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

	 	Except as provided herein, each bond of 2008 Series KT shall be dated the date of
its authentication and interest shall be payable on the principal represented
thereby from the next preceding date to which interest has been paid on bonds of
2008 Series KT, 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 the first date on which interest is
payable on the Strategic Fund Bonds, in which case interest shall be payable from
July 3, 2008.
	 
	 	 
	 

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

	 	Interest on any bond of 2008 Series KT 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

12

 

	 	 	 
	 

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

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

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

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

	 	In the event the Company desires to provide for the payment of bonds of 2008 Series
KT, in lieu of defeasing such bonds in accordance with the Indenture, it shall
either redeem an equal principal amount of Strategic Fund Bonds or take

13

 

	 	 	 
	 

	 	such action
as shall be required by Article VIII of the Strategic Fund Indenture to defease an
equal principal amount of the Strategic Fund Bonds. Pursuant to Section 2.03(c) of
the Twenty-Sixth Supplemental Indenture to the Note Indenture dated July 1, 2008,
such redemption or defeasance shall result in the discharge of the Company’s
obligation with respect to such Notes and the cancellation thereof which, in
accordance with the preceding paragraph, shall result in the discharge of the
Company’s obligation with respect to the applicable bonds of 2008 Series KT and
cancellation thereof.
	 
	 	 
	 

	 	Any amount payable by the Company in respect of principal of bonds of 2008 Series
KT, whether at maturity or prior to maturity by redemption or upon acceleration or
otherwise, in a circumstance where there has not been a corresponding payment of
principal of Strategic Fund Bonds shall be applied simultaneously to the redemption
or defeasance of an equal principal amount of Strategic Fund Bonds in accordance
with the Strategic Fund Indenture. In the event the amount so paid is insufficient
to provide for such redemption or defeasance, the Company shall pay such additional
amount as shall be necessary to make up for the deficiency.
	 
	 	 
	RELEASE.

	 	SECTION 2. From and after the Release Date (as defined in the Note Indenture), the
bonds of 2008 Series KT shall be deemed fully paid, satisfied and discharged and the
obligation of the Company thereunder shall be terminated. On the Release Date, the
bonds of 2008 Series KT 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 2008 Series
KT to be less than the then-outstanding principal amount of the Notes.
	 
	 	 
	REDEMPTION OF BONDS
OF 2008 SERIES KT.

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

	 
	 	 
	 

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

	 	SECTION 4. In the event of an Event of Default under the Note Indenture and the
acceleration of all Notes, the bonds of 2008 Series KT shall be redeemable in whole
upon receipt by the Trustee of a written demand (hereinafter called a “Redemption
Demand”) from the Note Indenture Trustee stating that there has occurred under the
Note Indenture both an Event of Default and a declaration of acceleration of payment
of principal, accrued interest and premium, if any, on the Notes, specifying the
last date to which interest on the Notes has been paid (such date being hereinafter
referred to as the “Initial Interest Accrual Date”) and demanding redemption of the
bonds of said series. In addition, in the event of a required redemption of the
Notes upon demand of the Bond Trustee prior to the Release Date upon a declaration
of acceleration of the payment of the Strategic Fund Bonds, the bonds of 2008 Series
KT shall be redeemable in whole upon receipt by the Trustee of a Redemption Demand
from the Note Indenture Trustee stating that such redemption of the Notes is
required, stating that the redemption price was not paid when due and demanding
redemption of the bonds of 2008 Series KT. The Trustee shall,

14

 

	 	 	 
	 

	 	within five (5) days
after receiving such Redemption Demand, mail a copy thereof to the Company marked to
indicate the date of its receipt by the Trustee. Promptly upon receipt by the
Company of such copy of a Redemption Demand, the Company shall fix a date on which
it will redeem the bonds of said series so demanded to be redeemed (hereinafter
called the “Demand Redemption Date”). Notice of the date fixed as the Demand
Redemption Date shall be mailed by the Company to the Trustee at least ten (10) days
prior to such Demand Redemption Date. The date to be fixed by the Company as and
for the Demand Redemption Date may be any date up to and including the earlier of
(x) the 60th day after receipt by the Trustee of the Redemption Demand or (y) the
maturity date of such bonds first occurring following the 20th day after the receipt
by the Trustee of the Redemption Demand; provided, however, that if the Trustee
shall not have received such notice fixing the Demand Redemption Date on or before
the 10th day preceding the earlier of such dates, the Demand Redemption Date shall
be deemed to be the earlier of such dates. The Trustee shall mail notice of the
Demand Redemption Date (such notice being hereinafter called the “Demand Redemption
Notice”) to the Note Indenture Trustee not more than ten (10) nor less than five (5)
days prior to the Demand Redemption Date.
	 
	 	 
	 

	 	Each bond of 2008 Series KT shall be redeemed by the Company on the Demand
Redemption Date therefor upon surrender thereof by the Note Indenture Trustee to the
Trustee at a redemption price equal to the principal amount thereof plus accrued
interest thereon at the rate specified for such bond from the Initial Interest
Accrual Date to the Demand Redemption Date plus an amount equal to the aggregate
premium, if any, due and payable on such Demand Redemption Date on all Notes;
provided, however, that in the event of a receipt by the Trustee of a notice that,
pursuant to Section 602 of the Note Indenture, the Note Indenture Trustee has
terminated proceedings to enforce any right under the Note Indenture, then any
Redemption Demand shall thereby be rescinded by the Note Indenture Trustee, and no
Demand Redemption Notice shall be given, or, if already given, shall be
automatically annulled; but no such rescission or annulment shall extend to or
affect any subsequent default or impair any right consequent thereon.
	 
	 	 
	 

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

OF BONDS OF

	 	SECTION 5. The bonds of 2008 Series KT and the form of Trustee’s Certificate to be
endorsed on such bonds shall be substantially in the following forms, respectively:
	2008 SERIES KT.
	 	 
	 
	 

	 	THE DETROIT EDISON COMPANY
	 

	 	GENERAL AND REFUNDING MORTGAGE BOND
	 

	 	2008 SERIES KT
	 
	 	 
	 

	 	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 July 1, 2008, between

15

 

	 	 	 
	 

	 	The Detroit
Edison Company and The Bank of New York Mellon Trust Company, N.A., as Note
Indenture Trustee, or, subject to compliance with applicable law, as may be involved
in the course of the exercise of rights and remedies consequent upon an Event of
Default under said Indenture.
	 
	 	 
	 

	 	$                    
                    
                    
         
                    
                    
                                         No. R-___
	 
	 	 
	 

	 	THE DETROIT EDISON COMPANY (hereinafter called the “Company”), a corporation of the
State of Michigan, for value received, hereby promises to pay to The Bank of New
York Mellon Trust Company, N.A., as Note Indenture Trustee, or registered assigns,
at the Company’s office or agency in the Borough of Manhattan, the City and State of
New York, the principal sum of                      Dollars ($                    ) in
lawful money of the United States of America on July 1, 2020 (subject to earlier
redemption or release) and interest thereon at the rate of interest established for
the Strategic Fund Bonds from time to time in accordance with the Strategic Fund
Indenture, in like lawful money, from July 3, 2008, and after the first payment of
interest on bonds of this Series has been made or otherwise provided for, from the
most recent date to which interest has been paid or otherwise provided for, on such
dates as interest shall be payable on the Strategic Fund Bonds, 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 July 1, 2008 (hereinafter called the “Note Indenture”),
between the Company and The Bank of New York Mellon Trust Company, N.A., as
successor trustee (hereinafter called the “Note Indenture Trustee”), the Company has
issued its 2008 Series KT Variable Rate Senior Notes due 2020 (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.
	 
	 	 
	 

	 	The Notes were issued to secure the Company’s obligations under the Loan Agreement
dated as of July 1, 2008 between the Company and the Michigan Strategic Fund
relating to the Michigan Strategic Fund Variable Rate Limited Obligation Refunding
Revenue Bonds (The Detroit Edison Company Exempt Facilities Project), Series 2008KT
(the “Strategic Fund Bonds”) being issued under the Trust Indenture dated as of July
1, 2008 (the “Strategic Fund Indenture”) between the Michigan Strategic Fund and The
Bank of New York Mellon Trust Company, N.A., as trustee (the “Strategic Fund Bond
Trustee”).
	 
	 	 
	 

	 	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 2008 Series KT, limited to an aggregate principal amount of $32,375,000,
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,

16

 

	 	 	 
	 

	 	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 Trustee, to
which Indenture and all indentures supplemental thereto (including the Supplemental
Indenture dated as of July 1, 2008) reference is hereby made for a description of
the properties and franchises mortgaged and conveyed, the nature and extent of the
security, the terms and conditions upon which the bonds are issued and under which
additional bonds may be issued, and the rights of the holders of the bonds and of
the Trustee in respect of such security (which Indenture and all indentures
supplemental thereto, including the Supplemental Indenture dated as of July 1, 2008,
are hereinafter collectively called the “Indenture”). As provided in the Indenture,
said bonds may be for various principal sums and are issuable in series, which may
mature at different times, may bear interest at different rates and may otherwise
vary as in said Indenture provided. With the consent of the Company and to the
extent permitted by and as provided in the Indenture, the rights and obligations of
the Company and of the holders of the bonds and the terms and provisions of the
Indenture, or of any indenture supplemental thereto, may be modified or altered in
certain respects by affirmative vote of at least eighty-five percent (85%) in amount
of the bonds then outstanding, and, if the rights of one or more, but less than all,
series of bonds then outstanding are to be affected by the action proposed to be
taken, then also by affirmative vote of at least eighty-five percent (85%) in amount
of the series of bonds so to be affected (excluding in every instance bonds
disqualified from voting by reason of the Company’s interest therein as specified in
the Indenture); provided, however, that, without the consent of the holder hereof,
no such modification or alteration shall, among other things, affect the terms of
payment of the principal of or the interest on this bond, which in those respects is
unconditional.
	 
	 	 
	 

	 	This bond is redeemable prior to the Release Date upon the terms and conditions set
forth in the Indenture, including provision for redemption upon demand of the Note
Indenture Trustee following the occurrence of an Event of Default under the Note
Indenture and the acceleration of the principal of the Notes and including provision
for redemption upon demand of the Note Indenture Trustee in the event of a required
redemption of the Notes following a declaration of acceleration of the Strategic
Fund Bonds, such demand stating that such redemption of the Notes is required,
stating that the redemption price thereof was not paid when due and demanding
redemption of this bond.
	 
	 	 
	 

	 	Under the Indenture, funds may be deposited with the Trustee (which shall have
become available for payment), in advance of the redemption date of any of the bonds
of 2008 Series KT (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. In the event the Company desires to provide for
the payment of bonds of 2008 Series KT, in lieu of defeasing such bonds in
accordance with the Indenture, the Company shall either redeem an equal principal
amount of

17

 

	 	 	 
	 

	 	Strategic Fund Bonds or take such action as shall be required by the
Strategic Fund Indenture to defease an equal principal amount of Strategic Fund
Bonds.
	 
	 	 
	 

	 	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.
	 
	 	 
	 

	 	Any amount payable by the Company in respect of principal of bonds of 2008 Series
KT, whether at maturity or prior to maturity by redemption or otherwise, in a
circumstance where there has not been a corresponding payment of principal of
Strategic Fund Bonds shall be applied simultaneously to the redemption or defeasance
of an equal principal amount of Strategic Fund Bonds in accordance with the
Strategic Fund Indenture.
	 
	 	 
	 

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

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

	 	From and after the Release Date (as defined in the Note Indenture), the bonds of
2008 Series KT shall be deemed fully paid, satisfied and discharged and the
obligation of the Company thereunder shall be terminated. On the Release Date, the
bonds of 2008 Series KT 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 bonds of 2008 Series
KT to be less than the then-outstanding principal amount of the Notes.

18

 

	 	 	 
	 

	 	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.
	 
	 	 
	 

	 	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 or her manual or facsimile signatures,
and its corporate seal, or a facsimile thereof, to be impressed or imprinted hereon
and the same to be attested by its Corporate Secretary or Assistant Corporate
Secretary by manual or facsimile signature.
	 
	 	 
	 

	 	Dated:                     

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	THE DETROIT EDISON COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[Corporate Seal]	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Attest:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

[FORM OF TRUSTEE’S CERTIFICATE]

	 	 	 
	FORM OF TRUSTEE’S
CERTIFICATE.

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	J.P. MORGAN TRUST COMPANY,	 	 
	 	 	 	 	 	 	NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	     Authorized Representative	 	 

19

 

	 	 	 
	 

	 	PART II.
	 
	 

	 	RECORDING AND FILING DATA
	 
	 	 
	RECORDING AND FILING OF
ORIGINAL INDENTURE.

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

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

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

	 	 	 	 	 
	 	 	 	 	Recorded
and/or Filed
	 	 	 	 	as
Set Forth in
	Supplemental
Indenture	 	Purpose
of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	 
	June 1, 1925(a)(b)
	 	Series B Bonds	 	February 1, 1940
	August 1, 1927(a)(b)
	 	Series C Bonds	 	February 1, 1940
	February 1, 1931(a)(b)
	 	Series D Bonds	 	February 1, 1940
	June 1, 1931(a)(b)
	 	Subject Properties	 	February 1, 1940
	October 1, 1932(a)(b)
	 	Series E Bonds	 	February 1, 1940
	September 25, 1935(a)(b)
	 	Series F Bonds	 	February 1, 1940
	September 1, 1936(a)(b)
	 	Series G Bonds	 	February 1, 1940
	November 1, 1936(a)(b)
	 	Subject Properties	 	February 1, 1940
	February 1, 1940(a)(b)
	 	Subject Properties	 	September 1, 1947
	December 1, 1940(a)(b)
	 	Series H Bonds and	 	September 1, 1947
	 
	 	Additional Provisions	 	 
	September 1, 1947(a)(b)(c)
	 	Series I Bonds, Subject	 	November 15, 1951
	 
	 	Properties and Additional 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	 	January 15, 1953
	 
	 	Provisions and Subject Properties	 	 
	January 15, 1953(a)(b)
	 	Series L Bonds	 	May 1, 1953

20

 

	 	 	 	 	 
	 	 	 	 	Recorded
and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	 
	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	 	June 1, 1959
	 
	 	Provisions and Subject Properties	 	 
	June 1, 1959(a)(c)
	 	Series Q Bonds and Subject Properties	 	December 1, 1966
	December 1, 1966(a)(c)
	 	Series R Bonds, Additional	 	October 1, 1968
	 
	 	Provisions and Subject 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 Bonds and Series W Bonds	 	June 15, 1971
	June 15, 1971(c)
	 	Series X Bonds and Subject Properties	 	November 15, 1971
	November 15, 1971(c)
	 	Series Y Bonds and Subject Properties	 	January 15, 1973
	January 15, 1973(c)
	 	Series Z Bonds and Subject Properties	 	May 1, 1974
	May 1, 1974
	 	Series AA Bonds and Subject Properties	 	October 1, 1974
	October 1, 1974
	 	Series BB Bonds and Subject Properties	 	January 15, 1975
	January 15, 1975
	 	Series CC Bonds and Subject Properties	 	November 1, 1975
	November 1, 1975
	 	Series DDP Nos. 1-9 Bonds and Subject Properties	 	December 15, 1975
	December 15, 1975
	 	Series EE Bonds and Subject Properties	 	February 1, 1976
	February 1, 1976
	 	Series FFR Nos. 1-13 Bonds	 	June 15, 1976
	June 15, 1976
	 	Series GGP Nos. 1-7 Bonds and Subject Properties	 	July 15, 1976
	July 15, 1976
	 	Series HH Bonds and Subject Properties	 	February 15, 1977
	February 15, 1977
	 	Series MMP Bonds and Subject
Properties	 	March 1, 1977

21

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	 
	March 1, 1977
	 	Series IIP Nos. 1-7 Bonds, Series JJP Nos. 1-7 Bonds, Series
KKP Nos. 1-7 Bonds and Series LLP Nos. 1-7 Bonds	 	June 15, 1977
	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 Bonds and Subject Properties	 	June 1, 1978
	June 1, 1978
	 	Series PP Bonds, Series QQP Nos. 1-9 Bonds and Subject Properties	 	October 15, 1978
	October 15, 1978
	 	Series RR Bonds and Subject 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 and Series TTP Nos. 1-15 Bonds and Subject Properties	 	September 1, 1979
	September 1, 1979
	 	Series JJP No. 8 Bonds, Series KKP
No. 8 Bonds, Series LLP Nos. 8-15 Bonds, Series
MMP No. 2 Bonds and Series OOP No.
18 Bonds and Subject Properties	 	September 15, 1979
	September 15, 1979
	 	Series UU Bonds	 	January 1, 1980
	January 1, 1980
	 	1980 Series A Bonds and Subject Properties	 	April 1, 1980
	April 1, 1980
	 	1980 Series B Bonds	 	August 15, 1980
	August 15, 1980
	 	Series QQP Nos. 10-19 Bonds, 1980
Series CP Nos. 1-12 Bonds and 1980 Series DP No. 1-11 Bonds and Subject Properties	 	August 1, 1981
	August 1, 1981
	 	1980 Series CP Nos. 13-25 Bonds and
Subject Properties	 	November 1, 1981
	November 1, 1981
	 	1981 Series AP Nos. 1-12 Bonds	 	June 30, 1982
	June 30, 1982
	 	Article XIV Reconfirmation	 	August 15, 1982
	August 15, 1982
	 	1981 Series AP Nos. 13-14 Bonds and Subject Properties	 	June 1, 1983
	June 1, 1983
	 	1981 Series AP Nos. 15-16 Bonds and Subject Properties	 	October 1, 1984

22

 

	 	 	 	 	 
	 	 	 	 	Recorded
and/or Filed
	 	 	 	 	as
Set Forth in
	Supplemental
Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated
as of	 	Indenture	 	Indenture
Dated as of
	October 1, 1984
	 	1984 Series AP Bonds and 1984
Series BP Bonds and Subject Properties	 	May 1, 1985
	May 1, 1985
	 	1985 Series A Bonds	 	May 15, 1985
	May 15, 1985
	 	1985 Series B Bonds and Subject Properties	 	October 15, 1985
	October 15, 1985
	 	Series KKP No. 9 Bonds and Subject Properties	 	April 1, 1986
	April 1, 1986
	 	1986 Series A Bonds and Subject Properties	 	August 15, 1986
	August 15, 1986
	 	1986 Series B Bonds and Subject Properties	 	November 30, 1986
	November 30, 1986
	 	1986 Series C Bonds	 	January 31, 1987
	January 31, 1987
	 	1987 Series A Bonds	 	April 1, 1987
	April 1, 1987
	 	1987 Series B Bonds and 1987 Series C Bonds	 	August 15, 1987
	August 15, 1987
	 	1987 Series D Bonds, 1987 Series E
Bonds and Subject Properties	 	November 30, 1987
	November 30, 1987
	 	1987 Series F Bonds	 	June 15, 1989
	June 15, 1989
	 	1989 Series A Bonds	 	July 15, 1989
	July 15, 1989
	 	Series KKP No. 10 Bonds	 	December 1, 1989
	December 1, 1989
	 	Series KKP No. 11 Bonds and 1989 Series BP Bonds	 	February 15, 1990
	February 15, 1990
	 	1990 Series A Bonds, 1990 Series B
Bonds, 1990 Series C Bonds, 1990 Series D Bonds, 1990 Series E Bonds
and 1990 Series F Bonds	 	November 1, 1990
	November 1, 1990
	 	Series KKP No. 12 Bonds	 	April 1, 1991
	April 1, 1991
	 	1991 Series AP Bonds	 	May 1, 1991
	May 1, 1991
	 	1991 Series BP Bonds and 1991 Series CP Bonds	 	May 15, 1991
	May 15, 1991
	 	1991 Series DP Bonds	 	September 1, 1991
	September 1, 1991
	 	1991 Series EP Bonds	 	November 1, 1991
	November 1, 1991
	 	1991 Series FP Bonds	 	January 15, 1992
	January 15, 1992
	 	1992 Series BP Bonds and April 15, 1992	 	February 29, 1992
	February 29, 1992
	 	1992 Series AP Bonds	 	April 15, 1992
	April 15, 1992
	 	Series KKP No. 13 Bonds	 	July 15, 1992
	July 15, 1992
	 	1992 Series CP Bonds	 	November 30, 1992
	July 31, 1992
	 	1992 Series D Bonds	 	November 30, 1992
	November 30, 1992
	 	1992 Series E Bonds and 1993 Series B Bonds	 	March 15, 1993
	December 15, 1992
	 	Series KKP No. 14 Bonds and 1989
Series BP No. 2 Bonds	 	March 15, 1993

23

 

	 	 	 	 	 
	 	 	 	 	Recorded
and/or Filed
	 	 	 	 	as
Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	 
	January 1, 1993
	 	1993 Series C Bonds	 	April 1, 1993
	March 1, 1993
	 	1993 Series E Bonds	 	June 30, 1993
	March 15, 1993
	 	1993 Series D Bonds	 	September 15, 1993
	April 1, 1993
	 	1993 Series FP Bonds and 1993 Series IP Bonds	 	September 15, 1993
	April 26, 1993
	 	1993 Series G Bonds and Amendment of Article II, Section 5	 	September 15, 1993
	May 31, 1993
	 	1993 Series J Bonds	 	September 15, 1993
	June 30, 1993
	 	1993 Series AP Bonds	 	(d)

	June 30, 1993
	 	1993 Series H Bonds	 	(d)

	September 15, 1993
	 	1993 Series K Bonds	 	March 1, 1994
	March 1, 1994
	 	1994 Series AP Bonds	 	June 15, 1994
	June 15, 1994
	 	1994 Series BP Bonds	 	December 1, 1994
	August 15, 1994
	 	1994 Series C Bonds	 	December 1, 1994
	December 1, 1994
	 	Series KKP No. 15 Bonds and 1994 Series DP Bonds	 	August 1, 1995
	August 1, 1995
	 	1995 Series AP Bonds and 1995 Series BP Bonds	 	August 1, 1999
	August 1, 1999
	 	1999 Series AP Bonds, 1999 Series
BP Bonds and 1999 Series CP Bonds	 	(d)

	August 15, 1999
	 	1999 Series D Bonds	 	(d)

	January 1, 2000
	 	2000 Series A Bonds	 	(d)

	April 15, 2000
	 	Appointment of Successor Trustee	 	(d)

	August 1, 2000
	 	2000 Series BP Bonds	 	(d)

	March 15, 2001
	 	2001 Series AP Bonds	 	(d)

	May 1, 2001
	 	2001 Series BP Bonds	 	(d)

	August 15, 2001
	 	2001 Series CP Bonds	 	(d)

	September 15, 2001
	 	2001 Series D Bonds and 2001 Series E Bonds	 	(d)

	September 17, 2002
	 	Amendment of Article XIII, Section
3 and Appointment of Successor Trustee	 	(d)

	October 15, 2002
	 	2002 Series A Bonds and 2002 Series B Bonds	 	(d)

	December 1, 2002
	 	2002 Series C Bonds and 2002 Series D Bonds	 	(d)

	August 1, 2003
	 	2003 Series A Bonds	 	(d)

	March 15, 2004
	 	2004 Series A Bonds and	 	(d)

	 
	 	2004 Series B Bonds	 	 
	July 1, 2004
	 	2004 Series D Bonds	 	(d)

	February 1, 2005
	 	2005 Series A Bonds and 2005 Series B Bonds	 	May 15, 2006

24

 

	 	 	 	 	 
	 	 	 	 	Recorded and/or Filed
	 	 	 	 	as Set Forth in
	Supplemental Indenture	 	Purpose of Supplemental	 	Supplemental
	Dated as of	 	Indenture	 	Indenture Dated as of
	 
	April 1, 2005
	 	2005 Series AR Bonds and 2005 Series BR Bonds	 	May 15, 2006
	August 1, 2005
	 	2005 Series DT Bonds	 	May 15, 2006
	September 15, 2005
	 	2005 Series C Bonds	 	May 15, 2006
	September 30, 2005
	 	2005 Series E Bonds	 	May 15, 2006
	May 15, 2006
	 	2006 Series A Bonds	 	December 1, 2006
	December 1, 2006
	 	2006 Series CT Bonds	 	December 1, 2007
	December 1, 2007
	 	2007 Series A Bonds	 	April 1, 2008
	April 1, 2008
	 	2008 Series DT Bonds	 	May 1, 2008

 

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

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

	 	Further, pursuant to the terms and
provisions of the Original
Indenture, a Supplemental Indenture
dated as of May 1, 2008 providing
for the terms of bonds to be issued
thereunder of 2008 Series ET has
heretofore been entered into between
the Company and the Trustee and has
been filed in the Office of the
Secretary of State of Michigan as a
financing statement on May 29, 2008
(Filing No. 2008084434-7), has been
filed and recorded in the Office of
the Surface Transportation Board on
May 29, 2008 (Recordation No.
5485-RRRRR), and has been recorded
as a real estate mortgage in the
offices of the respective Register
of Deeds of certain counties in the
State of Michigan, as follows:

	 	 	 	 	 	 	 
	 	 	 	 	Liber/	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Genesee

	 	5/29/08
	 	200805290042551
	 	N/A
	Huron

	 	5/30/08
	 	1245
	 	268
	Ingham

	 	5/29/08
	 	3308
	 	671
	Lapeer

	 	5/29/08
	 	2333
	 	196
	Lenawee

	 	5/29/08
	 	2366
	 	254
	Livingston

	 	5/29/08
	 	2008R-017529
	 	N/A
	Macomb

	 	5/30/08
	 	19356
	 	657
	Mason

	 	5/29/08
	 	2008R03162
	 	N/A
	Monroe

	 	5/29/08
	 	2008R11041
	 	N/A
	Oakland

	 	6/4/08
	 	40357
	 	348
	St. Clair

	 	5/29/08
	 	3849
	 	735
	Sanilac

	 	5/29/08
	 	1035
	 	273
	Tuscola

	 	5/29/08
	 	1150
	 	1083
	Washtenaw

	 	5/29/08
	 	4683
	 	794

25

 

	 	 	 	 	 	 	 
	 	 	 	 	Liber/	 	 
	County	 	Recorded	 	Instrument no.	 	Page
	Wayne

	 	5/29/08
	 	47263
	 	550

	 	 	 
	RECORDING OF CERTIFICATES OF
PROVISION FOR PAYMENT.

	 	All the bonds of Series A which were
issued under the Original Indenture
dated as of October 1, 1924, and of
Series B, Series C, Series D, Series
E, Series F, Series G, Series H,
Series I, Series J, Series K, Series
L, Series M, Series N, Series O,
Series P, Series Q, Series R, Series
S, Series T, Series U, Series V,
Series W, Series X, Series Y, Series
Z, Series AA, Series BB, Series CC,
Series DDP Nos. 1-9, Series EE,
Series FFR Nos. 1-13, Series GGP
Nos. 1-7, Series HH, Series MMP,
Series IP Nos. 1-7, Series JJP Nos.
1-7, Series KKP Nos. 1-7, Series LLP
Nos. 1-7, Series FFR No. 14, Series
NNP Nos. 1-7, Series GGP Nos. 8-22,
Series OOP Nos. 1-17, Series PP,
Series QQP Nos. 1-9, Series RR,
Series SS, Series IIP Nos. 8-22,
Series NNP Nos. 8-21, Series TTP
Nos. 1-15, Series JJP No. 8, Series
KKP No. 8, Series LLP Nos. 8-15,
Series MMP No. 2, Series OOP No. 18,
Series UU, 1980 Series A, 1980
Series B, Series QQP Nos. 10-19,
1980 Series CP Nos. 1-12, 1980
Series DP Nos. 1-11, 1980 Series CP
Nos. 13-25, 1981 Series AP Nos.
1-12, 1981 Series AP Nos. 13-14,
1981 Series AP Nos. 15-16, 1984
Series AP, 1984 Series BP, 1985
Series A, 1985 Series B, Series KKP
No. 9, 1986 Series A, 1986 Series B,
1986 Series C, 1987 Series A, 1987
Series B, 1987 Series C, 1987 Series
D, 1987 Series E, 1987 Series F,
1989 Series A, Series KKP No. 10,
Series KKP No. 11, 1989 Series BP,
1990 Series A, 1990 Series D, 1991
Series EP, 1991 Series FP, 1992
Series BP, Series KKP No. 13, 1992
Series CP, 1992 Series D, Series KKP
No. 14, 1989 Series BP No. 2, 1993
Series B, 1993 Series C, 1993, 1993
Series H, 1993 Series E, 1993 Series
D, 1993 Series FP, 1993 Series IP,
1993 Series G, 1993 Series J, 1993
Series K, 1994 Series AP, 1994
Series BP, 1994 Series C, Series
KKP No. 15, 1994 Series DP, 1995
Series AP, 1995 Series BP, 1999
Series D, 2000 Series A, 2001 Series
D, 2005 Series A, and 2005 Series B,
which were issued under Supplemental
Indentures as described in the
Recording and Filing of Supplemental
Indentures section above, have
matured or have been called for
redemption and funds sufficient for
such payment or redemption have been
irrevocably deposited with the
Trustee for that purpose; and
Certificates of Provision for
Payment have been recorded in the
offices of the respective Registers
of Deeds of certain counties in the
State of Michigan, with respect to
all bonds of Series A, B, C, D, E,
F, G, H, K, L, M, O, W, BB, CC, DDP
Nos. 1 and 2, FFR Nos. 1-3, GGP Nos.
1 and 2, IIP No. 1, JJP No. 1, KKP
No. 1, LLP No. 1 and GGP No. 8.
	 
	 

	 	PART III.
	 
	 

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

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

	 	The Trustee shall not be responsible
in any manner whatsoever for and in
respect of the validity or
sufficiency of this Supplemental
Indenture or the due execution
hereof by the Company or for or in
respect of the recitals contained

26

 

	 	 	 
	 

	 	herein, all of which recitals are
made by the Company solely.
	 
	PART IV.
	 
	MISCELLANEOUS.
	 
	 	 
	CONFIRMATION OF SECTION 318(c) OF
TRUST INDENTURE ACT.

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

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

27

 

	 	 	 	 	 	 	 
	EXECUTION BY
COMPANY.	 	THE DETROIT EDISON COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Paul A. Stadnikia
 

	 	 
	(Corporate Seal)	 	Name: Paul A. Stadnikia	 	 
	 	 	Title: Assistant Treasurer	 	 

	 	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 
	 
	 

	 	By:
	 	/s/Sandra Kay Ennis
 

	 	 
	 	 	Name: Sandra Kay Ennis	 	 
	 	 	Title: Corporate Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	Signed, sealed and delivered by	 	 
	 	 	THE DETROIT EDISON COMPANY	 	 
	 	 	in the presence of	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Anthony G. Morrow	 	 
	 	 	 	 	 
	 	 	Name: Anthony G. Morrow	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Daniel T. Richards	 	 
	 	 	 	 	 
	 	 	Name: Daniel T. Richards	 	 

28

 

	 	 	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN 	)	 	 	 	 	 
	 

	 	 	)  SS	 	 	 	 	 
	 

	 	COUNTY OF WAYNE 	)	 	 	 	 	 

	 	 	 
	ACKNOWLEDGMENT OF EXECUTION
BY
COMPANY.

	 	On this 1st day of July 2008,
before me, the subscriber, a Notary Public
within and for the County of Wayne, in the
State of Michigan, acting in the County of
Wayne, personally appeared Paul A.
Stadnikia, to me personally known, who,
being by me duly sworn, did say that he
does business at 2000 2nd Avenue, Detroit,
Michigan 48226 and is the Assistant
Treasurer of THE DETROIT EDISON COMPANY,
one of the corporations described in and
which executed the foregoing instrument;
that he knows the corporate seal of the
said corporation and that the seal affixed
to said instrument is the corporate seal of
said corporation; and that said instrument
was signed and sealed in behalf of said
corporation by authority of its Board of
Directors and that he subscribed his name
thereto by like authority; and said Paul A.
Stadnikia acknowledged said instrument to
be the free act and deed of said
corporation.

	 	 	 	 	 
	(Notarial Seal)

	 	/s/Stephanie V. Washio
 

Stephanie V. Washio
	 	 
	 

	 	Notary Public, Wayne County, MI	 	 
	 

	 	Acting in Wayne	 	 
	 

	 	My Commission Expires: May 18, 2012	 	 

29

 

	 	 	 	 	 	 	 
	EXECUTION BY TRUSTEE.	 	J.P. MORGAN TRUST COMPANY,	 	 
	 	 	NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/J. Michael Banas
 

	 	 
	(Corporate Seal)	 	Name: J. Michael Banas	 	 
	 	 	Title: Authorized Representative	 	 

	 	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 
	 

	 	By:
	/s/Nan L. Packard
 

	 	 
	 	 	Name: Nan L. Packard	 	 
	 	 	Title: Authorized Representative	 	 
	 
	 	 	 	 	 	 
	 	 	Signed, sealed and delivered by	 	 
	 	 	J. P. MORGAN TRUST COMPANY,	 	 
	 	 	NATIONAL ASSOCIATION	 	 
	 	 	in the presence of	 	 
	 
	 	 	 	 	 	 
	 	 	/s/John Dermody	 	 
	 	 	 	 	 
	 	 	Name: John Dermody	 	 
	 
	 	 	 	 	 	 
	 	 	/s/Kathleen Hier	 	 
	 	 	 	 	 
	 	 	Name: Kathleen Hier	 	 

30

 

	 	 	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN
	)	 	 	 	 	 
	 

	 	 	 ) SS	 	 	 	 	 
	 

	 	COUNTY OF WAYNE
	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ACKNOWLEDGMENT OF
EXECUTION BY TRUSTEE.	 	On this 2nd day of July 2008,
before me, the subscriber, a Notary Public
within and for the County of Macomb, in the
State of Michigan, acting in the County of
Wayne, personally appeared J. Michael Banas,
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 an Authorized
Representative 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 J.
Michael Banas acknowledged said instrument to
be the free act and deed of said corporation.
	 
	 	 	 	 	 	 	 	 
	(Notarial Seal)	 	/s/Shirley A. Markulin
	 	 	 	 	 
	 	 	Shirley A. Markulin
	 	 	Notary Public, Macomb County, Michigan
	 	 	Acting in Wayne County
	 	 	My Commission Expires January 14, 2012

31

 

	 	 	 	 	 	 	 	 	 
	 

	 	STATE OF MICHIGAN
	)	 	 	 	 	 
	 

	 	 	) SS	 	 	 	 	 
	 

	 	COUNTY OF WAYNE
	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	AFFIDAVIT AS TO CONSIDERATION AND
GOOD FAITH.	 	Paul A. Stadnikia, being duly sworn,
says: that he is the Assistant
Treasurer of THE DETROIT EDISON
COMPANY, the Mortgagor named in the
foregoing instrument, and that he
has knowledge of the facts in regard
to the making of said instrument and
of the consideration therefor; that
the consideration for said
instrument was and is actual and
adequate, and that the same was
given in good faith for the purposes
in such instrument set forth.
	 
	 	 	 	 	 	 	 	 
	 	 	/s/Paul A. Stadnikia
	 	 	 	 	 
	 	 	Name: Paul A. Stadnikia
	 	 	Title: Assistant Treasurer
	 	 	The Detroit Edison Company
	 
	 	 	 	 	 	 	 	 
	 	 	Sworn to before me this 1st day of July 2008
	 
	 	 	 	 	 	 	 	 
	(Notarial Seal)	 	/s/Stephanie V. Washio
	 	 	 	 	 
	 	 	Stephanie V. Washio
	 	 	Notary Public, Wayne County, MI
	 	 	Acting in Wayne
	 	 	My Commission Expires: May 18, 2012

32

 

This instrument was drafted by:

Daniel T. Richards, Esq.

2000 2nd Avenue

688 WCB

Detroit, Michigan 48226

When recorded return to:

Stephanie V. Washio

2000 2nd Avenue

688 WCB

Detroit, Michigan 48226

33

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