Document:

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                                                                   EXHIBIT 4-231

                               DTE ENERGY COMPANY,

                              THE BANK OF NEW YORK,
                      AS COLLATERAL AGENT, CUSTODIAL AGENT
                           AND SECURITIES INTERMEDIARY

                                       AND

                              THE BANK OF NEW YORK,
                           AS PURCHASE CONTRACT AGENT

                                PLEDGE AGREEMENT

                            DATED AS OF JUNE 25, 2002

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                                TABLE OF CONTENTS

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                                                ARTICLE I

                                               DEFINITIONS

SECTION 1.1          Definitions..................................................................................2

                                                ARTICLE II

                                      PLEDGE; CONTROL AND PERFECTION

SECTION 2.1          The Pledge...................................................................................4
SECTION 2.2          Control and Perfection.......................................................................5

                                               ARTICLE III

                                      PAYMENTS ON PLEDGED COLLATERAL

SECTION 3.1          Payments.....................................................................................7
SECTION 3.2          Application of Payments......................................................................8

                                                ARTICLE IV

                         SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

SECTION 4.1          Collateral Substitution and the Creation of Stripped Equity Security Units...................9
SECTION 4.2          Collateral Substitution and the Re-Creation of Equity Security Units.........................9
SECTION 4.3          Termination Event...........................................................................10
SECTION 4.4          Early Settlement; Merger Early Settlement; Cash Settlement..................................11
SECTION 4.5          Remarketing: Application of Proceeds: Settlement............................................11

                                                ARTICLE V

                                          VOTING RIGHTS -- NOTES

SECTION 5.1          Exercise by Purchase Contract Agent.........................................................13
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                                                ARTICLE VI

                                RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

SECTION 6.1          Rights and Remedies of the Collateral Agent.................................................14
SECTION 6.2          Substitutions...............................................................................15
SECTION 6.3          Tax Event Redemption........................................................................15

                                               ARTICLE VII

                                REPRESENTATIONS AND WARRANTIES; COVENANTS

SECTION 7.1          Representations and Warranties..............................................................16
SECTION 7.2          Covenants...................................................................................16

                                               ARTICLE VIII

                                           THE COLLATERAL AGENT

SECTION 8.1          Appointment, Powers and Immunities..........................................................17
SECTION 8.2          Instructions of the Company.................................................................18
SECTION 8.3          Reliance....................................................................................19
SECTION 8.4          Rights in Other Capacities..................................................................19
SECTION 8.5          Non-Reliance on Collateral Agent............................................................19
SECTION 8.6          Compensation and Indemnity..................................................................20
SECTION 8.7          Failure to Act..............................................................................20
SECTION 8.8          Resignation and Removal.....................................................................21
SECTION 8.9          Right to Appoint Agent or Advisor...........................................................22
SECTION 8.10         Survival....................................................................................22
SECTION 8.11         Exculpation.................................................................................22

                                                ARTICLE IX

                                                AMENDMENT

SECTION 9.1          Amendment Without Consent of Holders........................................................22
SECTION 9.2          Amendment with Consent of Holders...........................................................23
SECTION 9.3          Execution of Amendments.....................................................................24
SECTION 9.4          Effect of Amendments........................................................................24
SECTION 9.5          Reference to Amendments.....................................................................24

                                                ARTICLE X

                                              MISCELLANEOUS

SECTION 10.1         No Waiver...................................................................................24
SECTION 10.2         Governing Law...............................................................................25
SECTION 10.3         Notices.....................................................................................25
SECTION 10.4         Successors and Assigns......................................................................25
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SECTION 10.5         Counterparts................................................................................26
SECTION 10.6         Severability................................................................................26
SECTION 10.7         Expenses Etc................................................................................26
SECTION 10.8         Security Interest Absolute..................................................................26
SECTION 10.9         Waiver of Jury Trial........................................................................27

EXHIBIT A             Instruction from Purchase Contract Agent to Collateral Agent
EXHIBIT B             Instruction to Purchase Contract Agent
EXHIBIT C             Instruction to Custodial Agent Regarding Remarketing
EXHIBIT D             Instruction to Custodial Agent Regarding Withdrawal from Remarketing
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                                PLEDGE AGREEMENT

         PLEDGE AGREEMENT, dated as of June 25, 2002 (this "Agreement"), among
DTE ENERGY COMPANY, a Michigan corporation (the "Company"), THE BANK OF NEW
YORK, a New York banking corporation, not individually but solely as collateral
agent (in such capacity, together with its successors in such capacity, the
"Collateral Agent"), as custodial agent (in such capacity, together with its
successors in such capacity, the "Custodial Agent") and as "securities
intermediary" as defined in Section 8-102(a)(14) of the Code (as defined herein)
(in such capacity, together with its successors in such capacity, the
"Securities Intermediary"), and THE BANK OF NEW YORK, a New York banking
corporation, not individually but solely as purchase contract agent and as
attorney-in-fact of the Holders from time to time of the Equity Security Units
and Stripped Equity Security Units (in such capacity, together with its
successors in such capacity, the "Purchase Contract Agent") under the Purchase
Contract Agreement (as defined herein).

                                    RECITALS

         WHEREAS, the Company and the Purchase Contract Agent are parties to the
Purchase Contract Agreement, dated as of the date hereof (as modified and
supplemented and in effect from time to time, the "Purchase Contract
Agreement"), pursuant to which there may be issued 6,000,000 Equity Security
Units of the Company (or 6,900,000 Equity Security Units if the Underwriters
exercise their over-allotment option in full) each having a Stated Amount of
$25.

         WHEREAS, each Equity Security Unit will be comprised of (a) a Purchase
Contract and (b) either beneficial ownership of (i) a Note, (ii) following the
successful remarketing of the Notes in accordance with the Purchase Contract
Agreement and the Remarketing Agreement, the appropriate Applicable Ownership
Interest in the Treasury Portfolio or (iii) following a Tax Event Redemption in
accordance with the Purchase Contract Agreement, the appropriate Applicable
Ownership Interest in the Tax Event Treasury Portfolio.

         WHEREAS, in accordance with the terms of the Purchase Contract
Agreement, a holder of Equity Security Units may separate the Notes from the
related Purchase Contracts by substituting for such Notes Treasury Securities
that will pay in the aggregate an amount equal to the aggregate principal amount
of such Equity Security Units. Upon such separation, the Equity Security Units
will become Stripped Equity Security Units. Each Stripped Equity Security Unit
will be comprised of (a) a Purchase Contract and (b) a 1/40 undivided beneficial
interest in a Treasury Security.

         WHEREAS, pursuant to the terms of the Purchase Contract Agreement and
the Purchase Contracts, the Holders, from time to time, of the Equity Security
Units and Stripped Equity Security Units have irrevocably authorized the
Purchase Contract Agent, as attorney-in-fact of such Holders, among other
things, to execute and deliver this Agreement on behalf of such Holders and to
grant the pledge provided hereby of the Notes, any Treasury Securities and any
Applicable Ownership Interest in the Treasury Portfolio or Tax Event Treasury
Portfolio, as the case may be, delivered in exchange therefor to secure each
Holder's obligations under the related Purchase Contract, as provided herein and
subject to the terms hereof.

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         NOW, THEREFORE, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company, the
Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Purchase Contract Agent, on its own behalf and as attorney-in-fact of the
Holders from time to time of the Equity Security Units and Stripped Equity
Security Units, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1 Definitions.

         For all purposes of this agreement, except as otherwise expressly
provided or unless the context otherwise requires:

         (a) capitalized terms used but not defined herein are used as defined
in the Purchase Contract Agreement;

         (b) the defined terms in this Agreement have the meanings assigned to
them in this Article and include the plural as well as the singular; and

         (c) the words "herein," ""hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision.

         "Agreement" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

         "Code" has the meaning specified in Section 6.1(a) hereof.

         "Collateral" has the meaning specified in Section 2.1(a) hereof.

         "Collateral Account" means the securities account (number 016352)
maintained at The Bank of New York in the name "The Bank of New York, a New York
banking corporation, as Purchase Contract Agent on behalf of the holders of
certain securities of DTE Energy Company, Collateral Account subject to the
security interest of The Bank of New York, as Collateral Agent, for the benefit
of DTE Energy Company, as pledgee" and any successor account.

         "Collateral Agent" has the meaning specified in the first paragraph of
this Agreement

         "Company" means the Person named as the "Company" in the first
paragraph of this Agreement until a successor shall have become such pursuant to
the applicable provisions of the Purchase Contract Agreement, and thereafter
"Company" shall mean such successor.

         "Custodial Agent" has the meaning specified in the first paragraph of
this Agreement.

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         "Intermediary" means any entity that in the ordinary course of its
business maintains securities accounts for others and is acting in that
capacity.

         "Pledge" has the meaning specified in Section 2.1 hereof.

         "Pledged Applicable Ownership Interest in the Treasury Portfolio" has
the meaning specified in Section 2.1(c) hereof.

         "Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio" has the meaning specified in Section 2.1(c) hereof.

         "Pledged Notes" has the meaning specified in Section 2.1(c) hereof.

         "Pledged Treasury Securities" has the meaning specified in Section
2.1(c) hereof.

         "Proceeds" means all interest, dividends, cash, instruments,
securities, financial assets (as defined in Section 8-102(a)(9) of the Code) and
other property from time to time received, receivable or otherwise distributed
upon the sale, exchange, collection or disposition of the Collateral or any
proceeds thereof.

         "Purchase Contract Agent" has the meaning specified in the first
paragraph of this Agreement.

         "Purchase Contract Agreement" has the meaning specified in the
Recitals.

         "Securities Intermediary" has the meaning specified in the first
paragraph of this Agreement.

         "Security Entitlement" has the meaning set forth in Section
8-102(a)(17) of the Code.

         "Separate Notes" means any Notes that are not Pledged Notes.

         "Tax Event Redemption Date" means the date upon which a Tax Event
Redemption is to occur.

         "TRADES Regulations" means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357, as amended from
time to time. Unless otherwise defined herein, all terms defined in the TRADES
Regulations are used herein as therein defined.

         "Transfer" means, with respect to the Collateral and in accordance with
the instructions of the Collateral Agent, the Purchase Contract Agent or the
Holder, as applicable:

                  (i) in the case of Collateral consisting of securities which
         cannot be delivered by book-entry or which the parties agree are to be
         delivered in physical form, delivery in appropriate physical form to
         the recipient accompanied by any duly executed instruments of transfer,
         assignments in blank, transfer tax stamps and any other documents
         necessary to constitute a legally valid transfer to the recipient;

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                  (ii) in the case of Collateral consisting of securities
         maintained in book-entry form by causing a "securities intermediary"
         (as defined in Section 8-102(a)(14) of the Code) to (a) credit a
         "security entitlement" (as defined in Section 8-102(a)(17) of the Code)
         with respect to such securities to a "securities account" (as defined
         in Section 8-501(a) of the Code) maintained by or on behalf of the
         recipient and (b) to issue a confirmation to the recipient with respect
         to such credit. In the case of Collateral to be delivered to the
         Collateral Agent, the securities intermediary shall be the Securities
         Intermediary and the securities account shall be the Collateral
         Account. In addition, any Transfer of Treasury Securities and
         appropriate Applicable Ownership Interest in the Treasury Portfolio or
         Tax Event Treasury Portfolio hereunder shall be made in accordance with
         the TRADES Regulations and other applicable law.

                                   ARTICLE II

                         PLEDGE; CONTROL AND PERFECTION

         SECTION 2.1 The Pledge.

         (a) The Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, and the Purchase Contract Agent, as such
attorney-in-fact and as nominal owner of the Collateral, hereby pledge and grant
to the Collateral Agent, for the benefit of the Company, as collateral security
for the performance when due by such Holders of their respective obligations
under the related Purchase Contracts, a security interest in all of the right,
title and interest of the Purchase Contract Agent and such Holders in:

                  (i) (A) the Notes and any Applicable Ownership Interest in the
         Treasury Portfolio or Tax Event Treasury Portfolio, as the case may be,
         constituting a part of the Equity Security Units, or the Treasury
         Securities constituting a part of the Stripped Equity Security Units,
         (B) any Treasury Securities delivered in exchange for any Notes in
         accordance with Section 4.1 hereof, and (C) any Notes delivered in
         exchange for any Treasury Securities in accordance with Section 4.2
         hereof, in each case that have been Transferred to or otherwise
         received by the Collateral Agent and not released by the Collateral
         Agent to such Holders under the provisions of this Agreement;

                  (ii) the Collateral Account and all securities, financial
         assets, security entitlements, cash and other property credited thereto
         and all Security Entitlements related thereto; and

                  (iii) all Proceeds of the foregoing (all of the foregoing,
         collectively, the "Collateral").

         (b) Prior to or concurrently with the execution and delivery of this
Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the
Equity Security Units, shall cause the Notes comprising a part of the Equity
Security Units to be Transferred to the Securities Intermediary for credit to
the Collateral Account.

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         (c) The pledge provided in this Section 2.1 is herein referred to as
the "Pledge" and the Notes (or the Notes that are delivered pursuant to Section
6.2 hereof), Treasury Securities or Applicable Ownership Interest in the
Treasury Portfolio or Tax Event Treasury Portfolio, as the case may be, subject
to the Pledge, excluding any Notes or Treasury Securities released from the
Pledge as provided in Sections 4.1 and 4.2 hereof, respectively, are hereinafter
referred to as "Pledged Notes," "Pledged Treasury Securities," "Pledged
Applicable Ownership Interest in the Treasury Portfolio," or "Pledged Applicable
Ownership Interest in the Tax Event Treasury Portfolio," respectively. Subject
to the Pledge and the provisions of Section 2.2 hereof, the Holders from time to
time shall have full beneficial ownership of the Collateral. For purposes of
perfecting the Pledge under applicable law, including, to the extent applicable,
the TRADES Regulations or the Uniform Commercial Code as adopted and in effect
in any applicable jurisdiction, the Collateral Agent shall be the agent of the
Company as provided herein. Whenever directed by the Collateral Agent acting on
behalf of the Company, the Securities Intermediary shall have the right to
re-register in its name the Notes or any other securities held in physical form.

         (d) Except as may be required in order to release Notes in connection
with a Tax Event Redemption or with a Holder's election to convert its
investment from an Equity Security Unit to a Stripped Equity Security Unit, or
except as otherwise required to release Notes as specified herein, neither the
Collateral Agent, the Custodial Agent nor the Securities Intermediary shall
relinquish physical possession of any certificate evidencing a Note prior to the
termination of this Agreement. If it becomes necessary for the Securities
Intermediary to relinquish physical possession of a certificate in order to
release a portion of the Notes evidenced thereby from the Pledge, the Company or
the Purchase Contract Agent shall use its best efforts to obtain physical
possession of a replacement certificate evidencing any Notes remaining subject
to the Pledge hereunder registered to the Securities Intermediary or endorsed in
blank within fifteen days of the date the Securities Intermediary relinquished
possession. The Securities Intermediary shall promptly notify the Company and
the Collateral Agent of the Securities Intermediary's failure to obtain
possession of any such replacement certificate as required hereby.

         SECTION 2.2 Control and Perfection.

         (a) In connection with the Pledge granted in Section 2.1, and subject
to the other provisions of this Agreement, the Holders from time to time acting
through the Purchase Contract Agent, as their attorney-in-fact, and the Purchase
Contract Agent as nominal owner of the Collateral hereby authorize and direct
the Securities Intermediary (without the necessity of obtaining the further
consent of the Purchase Contract Agent or any of the Holders), and the
Securities Intermediary agrees, to comply with and follow any instructions and
entitlement orders (as defined in Section 8-102(a)(8) of the Code) that the
Collateral Agent may deliver with respect to the Collateral Account, the
Collateral credited thereto and any Security Entitlements with respect to any
thereof. In the event the Securities Intermediary receives from the Holders or
the Purchase Contract Agent entitlement orders which conflict with entitlement
orders received from the Collateral Agent, the Securities Intermediary shall
follow the entitlement orders received from the Collateral Agent. Such
instructions and entitlement orders may, without limitation, direct the
Securities Intermediary to transfer, redeem, assign, or otherwise deliver the
Notes, the Treasury Securities, any Applicable Ownership Interest in the
Treasury Portfolio or the Tax

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Event Treasury Portfolio, as the case may be, and any Security Entitlements with
respect thereto or sell, liquidate or dispose of such assets through a broker
designated by the Company, and to pay and deliver any income, proceeds or other
funds derived therefrom to the Company. The Holders from time to time acting
through the Purchase Contract Agent hereby further authorize and direct the
Collateral Agent, as agent of the Company, to itself issue instructions and
entitlement orders, and to otherwise take action, with respect to the Collateral
Account, the Collateral credited thereto and any Security Entitlements with
respect thereto, pursuant to the terms and provisions hereof, all without the
necessity of obtaining the further consent of the Purchase Contract Agent or any
of the Holders. The Collateral Agent shall be the agent of the Company and shall
act only in accordance with the terms hereof or as otherwise directed in writing
by the Company. Without limiting the generality of the foregoing, the Collateral
Agent shall issue entitlement orders to the Securities Intermediary as directed
in writing by the Company.

         (b) The Securities Intermediary hereby confirms and agrees that:

                  (i) all securities or other property underlying any financial
         assets credited to the Collateral Account shall be registered in the
         name of the Securities Intermediary, or its nominee, indorsed to the
         Securities Intermediary, or its nominee, or in blank or credited to
         another Collateral Account maintained in the name of the Securities
         Intermediary and in no case will any financial asset credited to the
         Collateral Account be registered in the name of the Purchase Contract
         Agent, the Collateral Agent, the Company or any Holder, or payable to
         the order of, or specially indorsed to, the Purchase Contract Agent,
         the Collateral Agent, the Company or any Holder except to the extent
         the foregoing have been specially indorsed to the Securities
         Intermediary or in blank;

                  (ii) all property delivered to the Securities Intermediary
         pursuant to this Pledge Agreement (including, without limitation, any
         Notes, Treasury Securities or any Applicable Ownership Interest in the
         Treasury Portfolio or Tax Event Treasury Portfolio, as the case may be)
         will be promptly credited to the Collateral Account;

                  (iii) the Collateral Account is an account to which financial
         assets are or may be credited, and the Securities Intermediary shall,
         subject to the terms of this Agreement, treat the Purchase Contract
         Agent as entitled to exercise the rights of any financial asset
         credited to the Collateral Account;

                  (iv) the Securities Intermediary has not entered into, and
         until the termination of this Agreement will not enter into, any
         agreement with any other Person relating to the Collateral Account
         and/or any financial assets credited thereto pursuant to which it has
         agreed to comply with entitlement orders (as defined in Section
         8-102(a)(8) of the Code) of such other Person;

                  (v) the Securities Intermediary has not entered into, and
         until the termination of this Agreement will not enter into, any
         agreement with the Company, the Collateral Agent or the Purchase
         Contract Agent purporting to limit or condition the obligation of

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         the Securities Intermediary to comply with entitlement orders as set
         forth in this Section 2.2 hereof;

                  (vi) the Securities Intermediary hereby agrees that each item
         of property (whether investment property, financial asset, security,
         instrument or cash) credited to the Collateral Account shall be treated
         as a "financial asset" within the meaning of Section 8-102(a)(9) of the
         Code; and

                  (vii) in the event of any conflict between this Agreement (or
         any portion thereof) and any other agreement now existing or hereafter
         entered into, the terms of this Agreement shall prevail.

         (c) The Purchase Contract Agent hereby irrevocably constitutes and
appoints the Collateral Agent and the Company, with full power of substitution,
as the Purchase Contract Agent's attorney-in-fact to take on behalf of, and in
the name, place and stead of, the Purchase Contract Agent and the Holders, any
action necessary or desirable to perfect and to keep perfected the security
interest in the Collateral referred to in Section 2.1. The grant of such
power-of-attorney shall not be deem ed to require of the Collateral Agent any
specific duties or obligations not otherwise assumed by the Collateral Agent
hereunder. Notwithstanding the foregoing, in no event shall the Collateral Agent
or Securities Intermediary be responsible for the preparation or filing of any
financing or continuation statements in the appropriate jurisdictions or
responsible for maintenance or perfection of any security interest hereunder.

                                   ARTICLE III

                         PAYMENTS ON PLEDGED COLLATERAL

         SECTION 3.1 Payments.

         So long as the Purchase Contract Agent is the registered owner of the
Pledged Notes, Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio, Pledged Applicable Ownership Interest in the Treasury Portfolio or
Pledged Treasury Securities, it shall receive all payments thereon. If the
Pledged Notes are reregistered, such that the Collateral Agent becomes the
registered holder, all payments of the principal of, or interest on, the Pledged
Notes and all payments of the principal of, or cash distributions on, any
Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio,
Pledged Treasury Securities or any Pledged Applicable Ownership Interest in the
Treasury Portfolio, that are received by the Collateral Agent and that are
properly payable hereunder, shall be paid by the Collateral Agent by wire
transfer in same day funds:

                  (i) in the case of (A) quarterly cash distributions on Equity
         Security Units that include Pledged Notes, any Pledged Applicable
         Ownership Interest in the Tax Event Treasury Portfolio or any Pledged
         Applicable Ownership Interest in the Treasury Portfolio, any interest
         payments with respect to the Pledged Notes or the appropriate Pledged
         Applicable Ownership Interest in the Treasury Portfolio or the Tax
         Event Treasury Portfolio (in each case, as specified in clause (B) of
         the definition of Applicable

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         Ownership Interest), as the case may be, and (B) any payments of
         principal or, if applicable, the appropriate Applicable Ownership
         Interest in the Treasury Portfolio or the Tax Event Treasury Portfolio
         (in each case, as specified in clause (A) of the definition of such
         term), as the case may be, with respect to any Notes, or the
         appropriate Applicable Ownership Interest in the Treasury Portfolio or
         the Tax Event Treasury Portfolio, as the case may be, that have been
         released from the Pledge pursuant to Section 4.3 hereof, to the
         Purchase Contract Agent, for the benefit of the relevant Holders of the
         Equity Security Units, to the account designated by the Purchase
         Contract Agent for such purpose, no later than 11:00 a.m., New York
         City time, on the Business Day such payment is received by the
         Collateral Agent (provided that in the event such payment is received
         by the Collateral Agent on a day that is not a Business Day or after
         9:00 a.m., New York City time, on a Business Day, then such payment
         shall be made no later than 11:00 a.m., New York City time, on the next
         succeeding Business Day);

                  (ii) in the case of any payments with respect to any Treasury
         Securities that have been released from the Pledge pursuant to Section
         4.3 hereof, to the Holders of the Stripped Equity Security Units to the
         accounts designated by them in writing for such purpose no later than
         2:00 p.m., New York City time, on the Business Day such payment is
         received by the Collateral Agent (provided that in the event such
         payment is received by the Collateral Agent on a day that is not a
         Business Day or after 10 a.m., New York City time, on a Business Day,
         then such payment shall be made no later than 11:00 a.m., New York City
         time, on the next succeeding Business Day); and

                  (iii) in the case of payments in respect of any Pledged Notes,
         Pledged Treasury Securities or the appropriate Pledged Applicable
         Ownership Interest in the Treasury Portfolio or Tax Event Treasury
         Portfolio (in each case, as specified in clause (A) of the definition
         of Applicable Ownership Interest), as the case may be, to be paid upon
         settlement of such Holder's obligations to purchase Common Stock under
         the Purchase Contract, to the Company on the Stock Purchase Date in
         accordance with the procedure set forth in Section 4.5(a) or 4.5(b)
         hereof, in full satisfaction of the respective obligations of the
         Holders under the related Purchase Contracts.

         SECTION 3.2 Application of Payments.

         All payments received by the Purchase Contract Agent as provided herein
shall be applied by the Purchase Contract Agent pursuant to the provisions of
the Purchase Contract Agreement. If, notwithstanding the foregoing, the Purchase
Contract Agent shall receive any payments of principal on account of any Note or
the appropriate Applicable Ownership Interest in the Treasury Portfolio or Tax
Event Treasury Portfolio (in each case, as specified in clause (A) of the
definition of Applicable Ownership Interest), as applicable, that, at the time
of such payment, is a Pledged Note, appropriate Pledged Applicable Ownership
Interest in the Treasury Portfolio or appropriate Pledged Applicable Ownership
Interest in the Tax Event Treasury Portfolio (in each case, as specified in
clause (A) of the definition of Applicable Ownership Interest), as the case may
be, or the Purchase Contract Agent shall receive any payments of principal on
account of any Treasury Securities that, at the time of such payment, are
Pledged Treasury Securities, the Purchase Contract Agent shall hold the same as
trustee of an express trust for the benefit of the

                                       8
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Company (and promptly deliver the same over to the Company) for application to
the obligations of the Holders under the related Purchase Contracts, and the
Holders shall acquire no right, title or interest in any such payments of
principal so received.

                                   ARTICLE IV

             SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

         SECTION 4.1 Collateral Substitution and the Creation of Stripped Equity
                     Security Units.

         At any time prior to the earlier of a successful remarketing of the
Notes in accordance with the provisions of Section 5.4 of the Purchase Contract
Agreement or a Tax Event Redemption Date, a Holder of Equity Security Units
shall have the right to substitute Treasury Securities for the Pledged Notes
securing such Holder's obligations under the Purchase Contracts comprising a
part of such Equity Security Units, in integral multiples of 40 Equity Security
Units, by (a) Transferring to the Collateral Agent Treasury Securities having an
aggregate principal amount at maturity equal to the aggregate Stated Amount of
such Equity Security Units and (b) delivering such Equity Security Units to the
Purchase Contract Agent, accompanied by a notice, substantially in the form of
Exhibit B hereto, to the Purchase Contract Agent stating that such Holder has
caused a Transfer of Treasury Securities to the Collateral Agent pursuant to
clause (a) above (stating the principal amount and the CUSIP numbers of the
Treasury Securities Transferred by such Holder) and requesting that the Purchase
Contract Agent instruct the Collateral Agent to release from the Pledge the
Pledged Notes related to such Equity Security Units, whereupon the Purchase
Contract Agent shall promptly give such instruction in writing to the Collateral
Agent in the form provided in Exhibit A hereto; provided that, notwithstanding
the foregoing, such Holder may not substitute such Treasury Securities for such
Pledged Notes pursuant to this Section 4.1 during any period beginning after
5:00 p.m., New York City time, on the fourth Business Day immediately preceding
the first Business Day of a Remarketing Period and, if applicable, ending at
9:00 a.m., New York City time, on the fourth Business Day immediately succeeding
the third Business Day of such Remarketing Period. Upon receipt of Treasury
Securities from a Holder of Equity Security Units and the related written
instruction from the Purchase Contract Agent, the Collateral Agent shall release
the Pledged Notes and shall promptly Transfer such Pledged Notes, free and clear
of any lien, pledge or security interest created hereby, to the Purchase
Contract Agent. All items Transferred and/or substituted by any Holder pursuant
to this Section 4.1, Section 4.2 or any other Section of this Agreement shall be
Transferred and/or substituted free and clear of all liens, claims and
encumbrances.

         SECTION 4.2 Collateral Substitution and the Re-Creation of Equity
                     Security Units.

         At any time prior to the earlier of a successful remarketing of the
Notes in accordance with the provisions of Section 5.4 of the Purchase Contract
Agreement or a Tax Event Redemption Date, a Holder of Stripped Equity Security
Units shall have the right to reestablish Equity Security Units consisting of
the Purchase Contracts and Notes in integral multiples of 40

                                       9
<PAGE>

Stripped Equity Security Units by (x) Transferring to the Collateral Agent Notes
in an aggregate principal amount equal to the aggregate principal amount at
maturity of the Treasury Securities comprising part of such Stripped Equity
Security Units and (y) delivering such Stripped Equity Security Units to the
Purchase Contract Agent, accompanied by a notice, substantially in the form of
Exhibit B hereto, to the Purchase Contract Agent stating that such Holder has
Transferred Notes to the Collateral Agent and requesting that the Purchase
Contract Agent instruct the Collateral Agent to release from the Pledge the
Pledged Treasury Securities related to such Stripped Equity Security Units,
whereupon the Purchase Contract Agent shall give such instruction to the
Collateral Agent in the form provided in Exhibit A hereto; provided that,
notwithstanding the foregoing, such Holder of Stripped Equity Security Units
shall not have the right to reestablish Equity Security Units pursuant to this
Section 4.2 during any period beginning after 5:00 p.m., New York City time, on
the fourth Business Day immediately preceding the first Business Day of a
Remarketing Period and, if applicable, ending at 9:00 a.m., New York City time,
on the fourth Business Day immediately succeeding the third Business Day such
Remarketing Period. Upon receipt of the Notes from such Holder and the
instruction from the Purchase Contract Agent, the Collateral Agent shall release
the Pledged Treasury Securities and shall promptly Transfer such Pledged
Treasury Securities, free and clear of any lien, pledge or security interest
created hereby, to the Purchase Contract Agent.

         SECTION 4.3 Termination Event.

         (a) Upon receipt by the Collateral Agent of written notice from the
Company or the Purchase Contract Agent that there has occurred a Termination
Event, the Collateral Agent shall release all Collateral from the Pledge and
shall promptly Transfer any Pledged Notes, Pledged Applicable Ownership Interest
in the Treasury Portfolio or Pledged Applicable Ownership Interest in the Tax
Event Treasury Portfolio, as the case may be, and Pledged Treasury Securities to
the Purchase Contract Agent for the benefit of the Holders of the Equity
Security Units and the Stripped Equity Security Units, respectively, free and
clear of any lien, pledge or security interest or other interest created hereby.

         (b) If such Termination Event shall result from the Company's becoming
a debtor under the Bankruptcy Code, and if the Collateral Agent shall for any
reason fail promptly to effectuate the release and Transfer of all Pledged
Notes, Pledged Applicable Ownership Interest in the Treasury Portfolio, Pledged
Applicable Ownership Interest in the Tax Event Treasury Portfolio, or Pledged
Treasury Securities, as the case may be, as provided by this Section 4.3, the
Purchase Contract Agent shall:

                  (i) use its best efforts to obtain at the expense of the
         Company an opinion of counsel reasonably acceptable to the Collateral
         Agent to the effect that, as a result of the Company's being the debtor
         in such a bankruptcy case, the Collateral Agent will not be prohibited
         from releasing or Transferring the Collateral as provided in this
         Section 4.3, and shall deliver such opinion to the Collateral Agent
         within ten days after the occurrence of such Termination Event, and if
         (y) the Purchase Contract Agent shall be unable to obtain such opinion
         within ten days after the occurrence of such Termination Event or (z)
         the Collateral Agent shall continue, after delivery of such opinion, to
         refuse to effectuate the release and Transfer of all Pledged Notes,
         Pledged Applicable Ownership Interest in

                                       10
<PAGE>

         the Treasury Portfolio, Pledged Applicable Ownership Interest in the
         Tax Event Treasury Portfolio or Pledged Treasury Securities, as the
         case may be, as provided in this Section 4.3, then the Purchase
         Contract Agent shall, at the Company's expense and within fifteen days
         after the occurrence of such Termination Event, commence an action or
         proceeding in the court with jurisdiction of the Company's case under
         the Bankruptcy Code seeking an order requiring the Collateral Agent to
         effectuate the release and transfer of all Pledged Notes, Pledged
         Applicable Ownership Interest in the Treasury Portfolio, Pledged
         Applicable Ownership Interest in the Tax Event Treasury Portfolio or
         Pledged Treasury Securities, as the case may be, as provided by this
         Section 4.3 or

                  (ii) commence an action or proceeding like that described in
         subsection (i)(z) hereof within ten days after the occurrence of such
         Termination Event.

         SECTION 4.4 Early Settlement; Merger Early Settlement; Cash Settlement.

         Upon written notice to the Collateral Agent by the Purchase Contract
Agent that one or more Holders of Equity Security Units or Stripped Equity
Security Units have elected to effect Early Settlement or Merger Early
Settlement or that one or more Holders of Equity Security Units have elected to
effect Cash Settlement, in each case, of their respective obligations under the
Purchase Contracts forming a part of such Equity Security Units or Stripped
Equity Security Units in accordance with the terms of the Purchase Contracts and
the Purchase Contract Agreement (setting forth the number of such Purchase
Contracts as to which such Holders have elected to effect Early Settlement,
Merger Early Settlement or Cash Settlement), and that the Purchase Contract
Agent has received from such Holders, and paid to the Company, as confirmed to
the Collateral Agent in writing by the Company, the related Early Settlement
Amounts, Merger Early Settlement Amounts or the Purchase Prices in the case of
the Cash Settlement, as the case may be, pursuant to the terms of the Purchase
Contracts and the Purchase Contract Agreement and that all conditions to such
Early Settlement, Merger Early Settlement or Cash Settlement, as the case may
be, have been satisfied, then the Collateral Agent shall release from the Pledge
(a) Pledged Notes, the appropriate Pledged Applicable Ownership Interest in the
Tax Event Treasury Portfolio or the appropriate Pledged Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, in the case of a Holder
of Equity Security Units effecting Early Settlement or Merger Early Settlement
or (b) Pledged Treasury Securities, in the case of a Holder of Stripped Equity
Security Units effecting Early Settlement or Merger Early Settlement, relating
to such Purchase Contracts as to which such Holders have elected to effect Early
Settlement, Merger Early Settlement or Cash Settlement, and shall Transfer all
such Pledged Notes, Pledged Applicable Ownership Interests in the Treasury
Portfolio, Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio or Pledged Treasury Securities, as the case may be, free and clear of
the Pledge created hereby, to the Purchase Contract Agent for the benefit of
such Holders.

         SECTION 4.5 Remarketing: Application of Proceeds: Settlement.

         (a) Pursuant to the Purchase Contract Agreement, the Purchase Contract
Agent shall notify, by 10:00 a.m., New York City time, on the third Business Day
immediately preceding the first Business Day of a Remarketing Period, the
Remarketing Agent and the Collateral Agent of

                                       11
<PAGE>

the aggregate principal amount of Notes comprising Equity Security Units to be
remarketed. The Collateral Agent shall, by 12:00 p.m., New York City time, on
the third Business Day immediately preceding the first Business Day of a
Remarketing Period, without any instruction from Holders of Equity Security
Units, deliver the Pledged Notes to be remarketed to the Remarketing Agent for
remarketing. After deducting as the remarketing fee an amount not exceeding 25
basis points (0.25%) of the total proceeds of such remarketing of Pledged Notes,
the Remarketing Agent will deliver the Treasury Portfolio purchased from the
proceeds of the remarketing to the Purchase Contract Agent, which shall
thereupon deliver such Treasury Portfolio to the Collateral Agent. Upon receipt
of the Treasury Portfolio from the Purchase Contract Agent following a
successful remarketing, (i) the Collateral Agent, for the benefit of the
Company, shall thereupon hold in the Collateral Account such Treasury Portfolio
to secure the obligations under the Purchase Contracts of Holders of Equity
Security Units and to fund the quarterly interest payment due to such Holders of
Equity Security Units on the Stock Purchase Date, and (ii) the remaining
portion, if any, of the proceeds of such successful remarketing shall be
distributed by the Remarketing Agent to the Purchase Contract Agent for payment
to such Holders of Equity Security Units. On the Stock Purchase Date, the
Collateral Agent shall, at the direction of the Company, (i) apply that portion
of the payments received in respect of the Pledged Applicable Ownership Interest
in the Treasury Portfolio equal to the aggregate Stated Amount of the related
Equity Security Units to satisfy in full the obligations of such Holders of
Equity Security Units to pay the Purchase Price under the related Purchase
Contracts and (ii) apply the remaining portion to pay the quarterly interest
payment due to such Holders of Equity Security Units on such Stock Purchase
Date, which such quarterly interest payment shall be paid on the Pledged Notes
in an amount equal to the Coupon Rate for such quarterly interest payment.

         (b) Within three Business Days following any Last Failed Remarketing,
the Pledged Notes delivered to the Remarketing Agent pursuant to Section 4.5(a)
hereof shall be returned to the Collateral Agent, together with written notice
from the Remarketing Agent of the Last Failed Remarketing. The Collateral Agent,
for the benefit of the Company, shall thereupon hold such Pledged Notes to
secure the obligations of Holders of Equity Security Units under the Purchase
Contracts. The Remarketing Agent shall make one or more attempts to remarket the
Notes in accordance with the procedures set forth in the Purchase Contract
Agreement and the Remarketing Agreement, provided that the requirements of
Section 5.4(b)(ii) of the Purchase Contract Agreement have been met. If by 4:00
p.m., New York City time, on the fifth Business Day immediately preceding the
Stock Purchase Date the Remarketing Agent has failed to remarket the Notes at
approximately, but not less than, 100.50% of the Remarketing Value (as described
in the Purchase Contract Agreement) resulting in an event of default under the
Purchase Contract Agreement, the Remarketing Agent shall advise the Collateral
Agent in writing that it has failed to remarket the related Pledged Notes of
such Holders of Equity Security Units on such date. The Collateral Agent, for
the benefit of the Company will, at the written direction of the Company,
exercise its rights as a secured party with respect to the Pledged Notes and use
commercially reasonable efforts to dispose of the Pledged Notes in accordance
with applicable law and apply the proceeds from such disposition in full
satisfaction of such Holders' obligations to pay the Purchase Price for the
Common Stock; provided, that if upon the occurrence of a Last Failed Remarketing
on the fifth Business Day immediately preceding the Stock Purchase Date, the
Collateral Agent exercises such rights for the benefit of the Company

                                       12
<PAGE>

with respect to such Pledged Notes, any accrued and unpaid interest on
such Pledged Notes will become payable by the Company to the Purchase Contract
Agent for payment to the Holder of the Equity Security Units to which such
Pledged Notes relate in accordance with the Purchase Contract Agreement.

         (c) In the event a Holder of Stripped Equity Security Units has not
made an Early Settlement or Merger Early Settlement of the Purchase Contracts
underlying its Stripped Equity Security Units, such Holder shall be deemed to
have elected to pay for the shares of Common Stock to be issued under such
Purchase Contracts from the payments received in respect of the related Pledged
Treasury Securities. Without receiving any instruction from any such Holder, the
Collateral Agent shall apply such payments to the settlement of such Purchase
Contracts on the Stock Purchase Date. In the event the payments received in
respect of the related Pledged Treasury Securities are in excess of the
aggregate Purchase Price of the Purchase Contracts being settled thereby, the
Collateral Agent shall distribute such excess, when received, to the Purchase
Contract Agent for the benefit of such Holders of Stripped Equity Security
Units.

         (d) On or prior to 11:00 a.m., New York City time, on the fourth
Business Day preceding the first Business Day of any Remarketing Period, holders
of Separate Notes may elect to have their Separate Notes remarketed by
delivering their Separate Notes, together with a notice of such election,
substantially in the form of Exhibit C hereto, to the Custodial Agent. On the
third Business Day prior to the first Business Day of any Remarketing Period, by
10:00 a.m., New York City time, the Custodial Agent shall notify the Remarketing
Agent of the number of such Separate Notes to be remarketed. The Custodial Agent
will hold such Separate Notes in an account separate from the Collateral
Account. A holder of Separate Notes electing to have its Separate Notes
remarketed will also have the right to withdraw such election by written notice
to the Custodial Agent, substantially in the form of Exhibit D hereto, on or
prior to the fifth Business Day immediately preceding the first Business Day of
any Remarketing Period and any Subsequent Remarketing Period, upon which notice
the Custodial Agent will return such Separate Notes to such holder. By 12:00
p.m. New York City time on the third Business Day immediately preceding the
first Business Day of any Remarketing Period and any Subsequent Remarketing
Period, the Custodial Agent at the written direction of the Remarketing Agent
will deliver to the Remarketing Agent for remarketing all Separate Notes
delivered to the Custodial Agent pursuant to this Section 4.5(d) and not
withdrawn pursuant to the terms hereof prior to such date. The portion of the
proceeds from such remarketing equal to the amount calculated in respect of such
Separate Notes as set forth in Section 5.4(b) of the Purchase Contract Agreement
will automatically be remitted by the Remarketing Agent to the Custodial Agent
for the benefit of the holders of such Separate Notes In addition, after
deducting as the remarketing fee an amount not exceeding 25 basis points (0.25%)
of the total proceeds of such remarketing of such Separate Notes, the
Remarketing Agent will remit to the Custodial Agent the remaining portion of the
proceeds, if any, for the benefit of such holders of such Separate Notes. If,
despite using its reasonable best efforts, the Remarketing Agent advises the
Custodial Agent in writing that there has been a Last Failed Remarketing on the
last Business Day of a Remarketing Period, the Remarketing Agent shall, within
three Business Days of such Last Failed Remarketing, return such Separate Notes
to the Custodial Agent for redelivery to such holders of such Separate Notes.

                                       13
<PAGE>

                                    ARTICLE V

                             VOTING RIGHTS -- NOTES

         SECTION 5.1 Exercise by Purchase Contract Agent.

         The Purchase Contract Agent may exercise, or refrain from exercising,
any and all voting and other consensual rights pertaining to the Pledged Notes
or any part thereof for any purpose not inconsistent with the terms of this
Agreement and in accordance with the terms of the Purchase Contract Agreement;
provided, that the Purchase Contract Agent shall not exercise or, as the case
may be, shall not refrain from exercising such right if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on
the value of all or any of the Pledged Notes; and provided, further, that the
Purchase Contract Agent shall give the Company and the Collateral Agent at least
five days prior written notice of the manner in which it intends to exercise, or
its reasons for refraining from exercising, any such right. Upon receipt of any
notices and other communications in respect of any Pledged Notes, including
notice of any meeting at which holders of Notes are entitled to vote or
solicitation of consents, waivers or proxies of holders of Notes, the Collateral
Agent shall use reasonable efforts to send promptly to the Purchase Contract
Agent such notice or communication, and as soon as reasonably practicable after
receipt of a written request therefor from the Purchase Contract Agent, execute
and deliver to the Purchase Contract Agent such proxies and other instruments in
respect of such Pledged Notes (in form and substance satisfactory to the
Collateral Agent) as are prepared by the Company with respect to the Pledged
Notes.

                                   ARTICLE VI

                    RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

         SECTION 6.1 Rights and Remedies of the Collateral Agent.

         (a) In addition to the rights and remedies available at law or in
equity, after an event of default under the Purchase Contracts, the Collateral
Agent shall have all of the rights and remedies with respect to the Collateral
of a secured party under the Uniform Commercial Code (or any successor thereto)
as in effect in the State of New York from time to time (the "Code") (whether or
not the Code is in effect in the jurisdiction where the rights and remedies are
asserted) and the TRADES Regulations and such additional rights and remedies to
which a secured party is entitled under the laws in effect in any jurisdiction
where any rights and remedies hereunder may be asserted. Wherever reference is
made in this Agreement to any section of the Code, such reference shall be
deemed to include a reference to any provision of the Code that is a successor
to, or amendment of, such section. Without limiting the generality of the
foregoing, such remedies may include, to the extent permitted by applicable law,
(i) retention of the Pledged Notes or other Collateral in full satisfaction of
the Holders' obligations under the Purchase Contracts or (ii) sale of the
Pledged Notes or other Collateral in one or more public or private sales, in
each case at the written direction of the Company.

                                       14
<PAGE>

         (b) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on account of any Pledged Notes, Pledged
Applicable Ownership Interest in the Treasury Portfolio, Pledged Applicable
Ownership Interest in the Tax Event Treasury Portfolio or Pledged Treasury
Securities as provided in Article III hereof in satisfaction of the obligations
of the Holders of Equity Security Units or Stripped Equity Security Units of
which such Pledged Notes, Pledged Applicable Ownership Interest in the Treasury
Portfolio, Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio or Pledged Treasury Securities, as applicable, is a part under the
related Purchase Contracts, the inability to make such payments shall constitute
an event of default under the Purchase Contracts and the Collateral Agent shall
have and may exercise, with reference to such Pledged Notes, Pledged Treasury
Securities, Pledged Applicable Ownership Interest in the Treasury Portfolio or
Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio, as
applicable, and such obligations of such Holder, any and all of the rights and
remedies available to a secured party under the Code and the TRADES Regulations
after default by a debtor, and as otherwise granted herein or under any other
law.

         (c) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of,
or interest on, the Pledged Notes, or (ii) the principal amount of, or interest
(if any) on, the Pledged Applicable Ownership Interest in the Treasury
Portfolio, Pledged Applicable Ownership Interest of the Tax Event Treasury
Portfolio or Pledged Treasury Securities, subject, in each case, to the
provisions of Article III, and as otherwise granted herein.

         (d) The Purchase Contract Agent, individually and as attorney-in-fact
for each Holder of Equity Security Units and Stripped Equity Security Units,
agrees that, from time to time, upon the written request of the Company or the
Collateral Agent (acting upon the written request of the Company), the Purchase
Contract Agent or such Holder shall execute and deliver such further documents
and do such other acts and things as the Company or the Collateral Agent (acting
upon the written request of the Company) may reasonably request in order to
maintain the Pledge, and the perfection and priority thereof, and to confirm the
rights of the Collateral Agent hereunder. The Purchase Contract Agent shall have
no liability to any Holder for executing any documents or taking any such acts
requested by the Company or the Collateral Agent (acting upon the written
request of the Company) hereunder, except for liability for its own negligent
act, its own negligent failure to act, its bad faith or its own willful
misconduct.

         SECTION 6.2 Substitutions.

         Whenever a Holder has the right to substitute Treasury Securities or
Notes, as the case may be, for Collateral held by the Collateral Agent, such
substitution shall not constitute a novation of the security interest created
hereby.

         SECTION 6.3 Tax Event Redemption.

         Upon the occurrence of a Tax Event Redemption prior to a successful
remarketing of the Pledged Notes, the aggregate Redemption Price payable on the
Tax Event Redemption Date with

                                       15

<PAGE>

respect to such Pledged Notes shall be delivered to the Collateral Agent by the
Trustee on or prior to 12:00 p.m., New York City time, on such date by wire
transfer in immediately available funds at such place and at such account as may
be designated by the Collateral Agent in exchange for the Pledged Notes. In the
event the Collateral Agent receives such Redemption Price, the Collateral Agent
will, at the written direction of the Company, apply an amount, out of such
Redemption Price, equal to the aggregate Redemption Amount with respect to the
Pledged Notes to purchase from the Quotation Agent the Tax Event Treasury
Portfolio and promptly remit the remaining portion of such Redemption Price to
the Purchase Contract Agent for payment to the Holders of Equity Security Units.
The Collateral Agent shall Transfer the Tax Event Treasury Portfolio to the
Collateral Account to secure the obligation of all Holders of Equity Security
Units to purchase Common Stock of the Company under the Purchase Contracts
constituting a part of such Equity Security Units, in substitution for the
Pledged Notes. Thereafter the Collateral Agent shall have such security
interests, rights and obligations with respect to the Tax Event Treasury
Portfolio as it had in respect of the Pledged Notes as provided in Articles II,
III, IV, V and VI, and any reference herein to the Notes shall be deemed to be a
reference to such Tax Event Treasury Portfolio, and any reference herein to
interest on the Notes shall be deemed to be a reference to distributions on such
Tax Event Treasury Portfolio.

                                   ARTICLE VII

                    REPRESENTATIONS AND WARRANTIES; COVENANTS

         SECTION 7.1 Representations and Warranties.

         The Holders from time to time, acting through the Purchase Contract
Agent as their attorney-in-fact (it being understood that the Purchase Contract
Agent shall not be liable for any representation or warranty made by or on
behalf of a Holder), hereby represent and warrant to the Collateral Agent, which
representations and warranties shall be deemed repeated on each day a Holder
Transfers Collateral that:

         (a) such Holder has the power to grant a security interest in and lien
on the Collateral;

         (b) such Holder is the sole beneficial owner of the Collateral and, in
the case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer,
the Collateral it Transfers to the Collateral Agent, free and clear of any
security interest, lien, encumbrance, call, liability to pay money or other
restriction other than the security interest and lien granted under Section 2.1
hereof;

         (c) upon the Transfer of the Collateral to the Collateral Account, the
Collateral Agent, for the benefit of the Company, will have a valid and
perfected first priority security interest therein (assuming that any central
clearing operation or any Intermediary or other entity not within the control of
the Holder involved in the Transfer of the Collateral, including the Collateral
Agent, gives the notices and takes the action required of it hereunder and under
applicable law for perfection of that interest and assuming the establishment
and exercise of control pursuant to Section 2.2 hereof); and

                                       16
<PAGE>

         (d) the execution and performance by the Holder of its obligations
under this Agreement will not result in the creation of any security interest,
lien or other encumbrance on the Collateral other than the security interest and
lien granted under Section 2.1 hereof or violate any provision of any existing
law or regulation applicable to it or of any mortgage, charge, pledge,
indenture, contract or undertaking to which it is a party or which is binding on
it or any of its assets.

         SECTION 7.2 Covenants.

         The Holders from time to time, acting through the Purchase Contract
Agent as their attorney-in-fact (it being understood that the Purchase Contract
Agent shall not be liable for any covenant made by or on behalf of a Holder),
hereby covenant to the Collateral Agent that for so long as the Collateral
remains subject to the Pledge:

         (a) neither the Purchase Contract Agent nor such Holders will create or
purport to create or allow to subsist any mortgage, charge, lien, pledge or any
other security interest whatsoever over the Collateral or any part of it other
than pursuant to this Agreement; and

         (b) neither the Purchase Contract Agent nor such Holders will sell or
otherwise dispose (or attempt to dispose) of the Collateral or any part of it
except for the beneficial interest therein, subject to the pledge hereunder,
transferred in connection with the Transfer of the Equity Security Units and
Stripped Equity Security Units.

                                  ARTICLE VIII

                              THE COLLATERAL AGENT

         SECTION 8.1 Appointment, Powers and Immunities.

         (a) The Collateral Agent shall act as agent for the Company hereunder
with such powers as are specifically vested in the Collateral Agent by the terms
of this Agreement, together with such other powers as are reasonably incidental
thereto. Each of the Collateral Agent, the Custodial Agent and the Securities
Intermediary:

                  (i) shall have no duties or responsibilities except those
         expressly set forth in this Agreement and no implied covenants or
         obligations shall be inferred from this Agreement against any of them,
         nor shall any of them be bound by the provisions of any agreement by
         any party hereto beyond the specific terms hereof;

                  (ii) shall not be responsible for any recitals contained in
         this Agreement, or in any certificate or other document referred to or
         provided for in, or received by it under, this Agreement, the Equity
         Security Units or Stripped Equity Security Units or the Purchase
         Contract Agreement, or for the value, validity, effectiveness,
         genuineness, enforceability or sufficiency of this Agreement (other
         than as against the Collateral Agent), the Equity Security Units or
         Stripped Equity Security Units or the Purchase Contract Agreement or
         any other document referred to or provided for herein or therein or for
         any failure by the Company or any other Person (except the Collateral
         Agent, the

                                       17
<PAGE>

         Custodial Agent or the Securities Intermediary, as the case may be)
         to perform any of its obligations hereunder or thereunder or for the
         perfection, priority or, except as expressly required hereby,
         existence, validity, perfection or maintenance of any security
         interest created hereunder;

                  (iii) shall not be required to initiate or conduct any
         litigation or collection proceedings hereunder (except in the case of
         the Collateral Agent, pursuant to written directions furnished under
         Section 8.2 hereof, subject to Section 8.6 hereof);

                  (iv) shall not be responsible for any action taken or omitted
         to be taken by it hereunder or under any other document or instrument
         referred to or provided for herein or in connection herewith or
         therewith, except for its own gross negligence, bad faith or willful
         misconduct; and

                  (v) shall not be required to advise any party as to selling or
         retaining, or taking or refraining from taking any action with respect
         to, the Equity Security Units or Stripped Equity Security Units or
         other property deposited hereunder.

         Subject to the foregoing, during the term of this Agreement, the
Collateral Agent shall take all reasonable action in connection with the
safekeeping and preservation of the Collateral hereunder.

         (b) No provision of this Agreement shall require the Collateral Agent,
the Custodial Agent or the Securities Intermediary to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder. In no event shall the Collateral Agent, the Custodial
Agent or the Securities Intermediary be liable for any amount in excess of the
value of the Collateral or for any special, indirect, individual, consequential
damages or lost profits or loss of business, arising in connection with this
Agreement even if the Collateral Agent, the Custodial Agent or the Securities
Intermediary has been advised of the likelihood of such loss or damage being
incurred and regardless of the form of action. Notwithstanding the foregoing,
the Collateral Agent, the Custodial Agent, the Purchase Contract Agent and
Securities Intermediary, each in its individual capacity, hereby waive any right
of setoff, bankers lien, liens or perfection rights as securities intermediary
or any counterclaim with respect to any of the Collateral.

         (c) The Collateral Agent, Custodial Agent and Securities Intermediary
shall have no liability whatsoever for the action or inaction of any Clearing
Agency or any book-entry system thereof. In no event shall any Clearing Agency
or any book-entry system thereof be deemed an agent or subcustodian of the
Collateral Agent, Custodial Agent and Securities Intermediary. The Collateral
Agent, Custodial Agent and Securities Intermediary shall not be responsible or
liable for any failure or delay in the performance of its obligations under this
Agreement arising out of or caused, directly or indirectly, by circumstances
beyond its reasonable control, including, without limitation, acts of God;
earthquakes; fires; floods; war (whether declared or undeclared); terrorism;
civil or military disturbances; sabotage; epidemics; riots; interruptions, loss
or malfunctions of utilities, computer (hardware or software) or communications
service; accidents;

                                       18
<PAGE>

labor disputes; acts of civil or military authority; governmental actions; or
inability to obtain labor, material, equipment or transportation.

         SECTION 8.2 Instructions of the Company.

         The Company shall have the right, by one or more instruments in writing
executed and delivered to the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, to direct the time, method and
place of conducting any proceeding for the realization of any right or remedy
available to the Collateral Agent, or of exercising any power conferred on the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided, however, that (i) such direction shall
not conflict with the provisions of any law or of this Agreement and (ii) the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
receive indemnity reasonably satisfactory to it as provided herein. Nothing in
this Section 8.2 shall impair the right of the Collateral Agent in its
discretion to take any action or omit to take any action which it deems proper
and which is not inconsistent with such direction.

         SECTION 8.3 Reliance.

         Each of the Securities Intermediary, the Custodial Agent and the
Collateral Agent shall be entitled conclusively to rely upon any certification,
order, judgment, opinion, notice or other communication (including, without
limitation, any thereof by telephone or facsimile) reasonably believed by it to
be genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons (without being required to determine the correctness of
any fact stated therein), and upon advice of legal counsel and other experts
selected by the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be. As to any matters not expressly provided for
by this Agreement, the Collateral Agent, the Custodial Agent and the Securities
Intermediary shall in all cases be fully protected in acting, or in refraining
from acting, hereunder in accordance with instructions given by the Company in
accordance with this Agreement.

         SECTION 8.4 Rights in Other Capacities.

         The Collateral Agent, the Custodial Agent and the Securities
Intermediary and their affiliates may (without having to account therefor to the
Company) accept deposits from, lend money to, make their investments in and
generally engage in any kind of banking, trust or other business with the
Purchase Contract Agent, any Holder of Equity Security Units or Stripped Equity
Security Units and any holder of Separate Notes (and any of their respective
subsidiaries or affiliates) as if it were not acting as the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, and the
Collateral Agent, the Custodial Agent and the Securities Intermediary and their
affiliates may accept fees and other consideration from the Purchase Contract
Agent, any Holder of Equity Security Units or Stripped Equity Security Units or
any holder of Separate Notes without having to account for the same to the
Company; provided that each of the Securities Intermediary, the Custodial Agent
and the Collateral Agent covenants and agrees with the Company that, except as
provided in this Agreement, it shall not accept, receive or permit there to be
created in favor of itself (and waives any right of set-off or

                                       19

<PAGE>

banker's lien with respect to) and shall take no affirmative action to permit
there to be created in favor of any other Person, any security interest, lien or
other encumbrance of any kind in or upon the Collateral and the Collateral shall
not be commingled with any other assets of any such Person.

         SECTION 8.5 Non-Reliance on Collateral Agent.

         None of the Securities Intermediary, the Custodial Agent or the
Collateral Agent shall be required to keep itself informed as to the performance
or observance by the Purchase Contract Agent or any Holder of Equity Security
Units or Stripped Equity Security Units of this Agreement, the Purchase Contract
Agreement, the Equity Security Units or Stripped Equity Security Units or any
other document referred to or provided for herein or therein or to inspect the
properties or books of the Purchase Contract Agent or any Holder of Equity
Security Units or Stripped Equity Security Units. The Collateral Agent, the
Custodial Agent and the Securities Intermediary shall not have any duty or
responsibility to provide the Company or the Remarketing Agent with any credit
or other information concerning the affairs, financial condition or business of
the Purchase Contract Agent, any Holder of Equity Security Units or Stripped
Equity Security Units or any holder of Separate Notes (or any of their
respective subsidiaries or affiliates) that may come into the possession of the
Collateral Agent, the Custodial Agent or the Securities Intermediary or any of
their respective affiliates.

         SECTION 8.6 Compensation and Indemnity.

         The Company agrees:

         (a) to pay each of the Collateral Agent, the Custodial Agent and the
Securities Intermediary from time to time such compensation as shall be agreed
in writing between the Company and the Collateral Agent, Custodial Agent or the
Securities Intermediary, as the case may be, for all services rendered by each
of them hereunder, and

         (b) to fully indemnify the Collateral Agent, the Custodial Agent, the
Securities Intermediary, the Purchase Contract Agent and their officers,
directors and agents for, and to hold each of them harmless from and against,
any and all loss, liability, claim, damage or reasonable out-of-pocket expense
incurred without gross negligence, bad faith or willful misconduct on its part,
arising out of or in connection with the acceptance or administration of its
powers and duties under this Agreement, including the out-of-pocket costs and
expenses (including fees and expenses of counsel) of defending itself against
any claim or liability in connection with the exercise or performance of such
powers and duties or collecting such amounts. The Collateral Agent, the
Custodial Agent and the Securities Intermediary shall each promptly notify the
Company of any third party claim that may give rise to the indemnity hereunder
and give the Company the opportunity to participate in the defense of such claim
with counsel reasonably satisfactory to the indemnified party, and no such claim
shall be settled without the written consent of the Company, which consent shall
not be unreasonably withheld. The provisions of this Section 8.6 shall survive
the resignation or removal of the Collateral Agent, the Custodial Agent and the
Securities Intermediary or the termination of this Agreement.

                                       20
<PAGE>

         SECTION 8.7 Failure to Act.

         In the event of any ambiguity in the provisions of this Agreement or
any dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent, Custodial Agent and the Securities Intermediary shall be
entitled, after prompt notice to the Company and the Purchase Contract Agent, at
its sole option, to refuse to comply with any and all claims, demands or
instructions with respect to such property or funds so long as such dispute or
conflict shall continue, and none of the Collateral Agent, Custodial Agent or
the Securities Intermediary shall be or become liable in any way to any of the
parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions. The Collateral Agent, Custodial Agent and the
Securities Intermediary shall be entitled to refuse to act until either (i) such
conflicting or adverse claims or demands shall have been finally determined by a
court of competent jurisdiction or settled by agreement between the conflicting
parties as evidenced in a writing, reasonably satisfactory to the Collateral
Agent, Custodial Agent or the Securities Intermediary, as the case may be, or
(ii) the Collateral Agent, the Custodial Agent or the Securities Intermediary,
as the case may be, shall have received security or an indemnity reasonably
satisfactory to the Collateral Agent, Custodial Agent or the Securities
Intermediary, as the case may be, sufficient to save the Collateral Agent,
Custodial Agent or the Securities Intermediary, as the case may be, harmless
from and against any and all loss, liability or reasonable out-of-pocket expense
that the Collateral Agent, Custodial Agent or the Securities Intermediary, as
the case may be, may incur by reason of its acting without willful misconduct or
gross negligence. The Collateral Agent, Custodial Agent or the Securities
Intermediary may in addition elect to commence an interpleader action or seek
other judicial relief or orders as the Collateral Agent, Custodial Agent or the
Securities Intermediary, as the case may be, may deem necessary. Notwithstanding
anything contained herein to the contrary, none of the Collateral Agent,
Custodial Agent or the Securities Intermediary shall be required to take any
action that is in its opinion contrary to law or to the terms of this Agreement,
or which would in its opinion subject it or any of its officers, employees or
directors to liability.

         SECTION 8.8 Resignation and Removal.

         Subject to the appointment and acceptance of a successor Collateral
Agent, Custodial Agent or Securities Intermediary, as provided below, (a) the
Collateral Agent, Custodial Agent and the Securities Intermediary may resign at
any time by giving notice thereof to the Company and the Purchase Contract Agent
as attorney-in-fact for the Holders of Equity Security Units and Stripped Equity
Security Units, (b) the Collateral Agent, Custodial Agent and the Securities
Intermediary may be removed at any time by the Company, (c) if the Collateral
Agent, Custodial Agent or the Securities Intermediary fails to perform any of
its material obligations hereunder in any material respect for a period of not
less than 20 days after receiving written notice of such failure by the Purchase
Contract Agent and such failure shall be continuing, the Collateral Agent,
Custodial Agent or the Securities Intermediary may be removed by the Purchase
Contract Agent, and (d) if the Collateral Agent, the Custodial Agent or the
Securities Intermediary is the same Person as the Purchase Contract Agent and an
event of default occurs under the Purchase Contract Agreement or this Agreement,
except an event of default as a result of a Last Failed Remarketing on the fifth
Business Day immediately preceding the Stock Purchase Date, the Collateral
Agent, the Custodial Agent or the Securities Intermediary shall resign
immediately in

                                       21
<PAGE>

accordance with the provisions of Section 8.8 hereof. The Purchase Contract
Agent shall promptly notify the Company of any removal of the Collateral Agent,
the Custodial Agent or the Securities Intermediary pursuant to clause (c) of the
immediately preceding sentence. The Company shall promptly notify the Purchase
Contract Agent of any removal of the Collateral Agent, the Custodial Agent or
the Securities Intermediary pursuant to clause (b) of the second preceding
sentence. Upon any such resignation or removal, the Company shall have the right
to appoint a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. If no successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be, shall have been so
appointed and shall have accepted such appointment within 30 days after the
retiring Collateral Agent's, Custodial Agent's or Securities Intermediary's
giving of notice of resignation or such removal, then the retiring Collateral
Agent, Custodial Agent or Securities Intermediary, as the case may be, may at
the Company's expense petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. Each of the Collateral Agent, Custodial Agent
and the Securities Intermediary shall be a bank which has an office in New York,
New York with a combined capital and surplus of at least $50,000,000. Upon the
acceptance of any appointment as Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, hereunder by a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, such successor
shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, Custodial Agent or
Securities Intermediary, as the case may be, and the retiring Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, shall take all
appropriate action to transfer any money and property held by it hereunder
(including the Collateral) to such successor after the payment of any
outstanding fees, expenses and indemnities due and owing to such remaining
party, its counsel and its agents. The retiring Collateral Agent, Custodial
Agent or Securities Intermediary shall, upon such succession, be discharged from
its duties and obligations as Collateral Agent, Custodial Agent or Securities
Intermediary hereunder. After any retiring Collateral Agent's, Custodial Agent's
or Securities Intermediary's resignation hereunder as Collateral Agent,
Custodial Agent or Securities Intermediary, the provisions of this Section 8.8,
and Section 8.6 hereof, shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as the
Collateral Agent, Custodial Agent or Securities Intermediary. Any resignation or
removal of the Collateral Agent hereunder shall be deemed for all purposes of
this Agreement as the simultaneous resignation or removal of the Custodial Agent
and the Securities Intermediary hereunder.

         SECTION 8.9 Right to Appoint Agent or Advisor.

         The Collateral Agent shall have the right to appoint or consult with
agents or advisors in connection with any of its duties hereunder, and the
Collateral Agent shall not be liable for any action taken or omitted by, or in
reliance upon the advice of, such agents or advisors selected in good faith. The
appointment of agents (other than legal counsel) pursuant to this Section 8.9
shall be subject to prior consent of the Company, which consent shall not be
unreasonably withheld.

                                       22
<PAGE>

         SECTION 8.10 Survival.

         The provisions of this Article VIII shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent, the Custodial
Agent or the Securities Intermediary.

         SECTION 8.11 Exculpation.

         Anything in this Agreement to the contrary notwithstanding, in no event
shall any of the Collateral Agent, the Custodial Agent or the Securities
Intermediary or their officers, employees or agents be liable under this
Agreement to any third party for indirect, special, punitive or consequential
loss or damage of any kind whatsoever, including lost profits, whether or not
the likelihood of such loss or damage was known to the Collateral Agent, the
Custodial Agent or the Securities Intermediary, or any of them.

                                   ARTICLE IX

                                    AMENDMENT

         SECTION 9.1 Amendment Without Consent of Holders.

         Without the consent of any Holders or the holders of any Separate
Notes, the Company, when authorized by a Board Resolution, the Collateral Agent,
the Custodial Agent, the Securities Intermediary and the Purchase Contract
Agent, at any time and from time to time, may amend this Agreement, in form
satisfactory to the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Purchase Contract Agent, for any of the
following purposes:

                  (i) to evidence the succession of another Person to the
         Company, and the assumption by any such successor of the covenants of
         the Company;

                  (ii) to add to the covenants of the Company for the benefit of
         the Holders, or to surrender any right or power herein conferred upon
         the Company so long as such covenants or such surrender do not
         adversely affect the validity, perfection or priority of the security
         interests granted or created hereunder;

                  (iii) to evidence and provide for the acceptance of
         appointment hereunder by a successor Collateral Agent, Custodial Agent,
         Securities Intermediary or Purchase Contract Agent; or

                  (iv) to cure any ambiguity, to correct or supplement any
         provisions herein which may be inconsistent with any other such
         provisions herein, or to make any other provisions with respect to such
         matters or questions arising under this Agreement, provided such action
         shall not adversely affect the interests of the Holders.

                                       23
<PAGE>

         SECTION 9.2 Amendment with Consent of Holders.

         With the consent of the Holders of not less than a majority of the
Purchase Contracts at the time outstanding, by Act of said Holders delivered to
the Company, the Purchase Contract Agent or the Collateral Agent, as the case
may be, the Company, when duly authorized by a Board Resolution, the Purchase
Contract Agent, the Collateral Agent, the Custodial Agent and the Securities
Intermediary may amend this Agreement for the purpose of modifying in any manner
the provisions of this Agreement or the rights of the Holders in respect of the
Equity Security Units or Stripped Equity Security Units; provided, however, that
no such supplemental agreement shall, without the consent of the Holder of each
Outstanding Unit adversely affected thereby,

                  (i) change the amount or type of Collateral underlying an
         Equity Security Unit or Stripped Equity Security Unit (except for the
         rights of holders of Equity Security Units to substitute the Treasury
         Securities for the Pledged Notes or the rights of Holders of Stripped
         Equity Security Units to substitute Notes for the Pledged Treasury
         Securities), impair the right of the Holder of any Equity Security Unit
         or Stripped Equity Security Unit to receive distributions on the
         underlying Collateral or otherwise adversely affect the Holder's rights
         in or to such Collateral; or

                  (ii) otherwise effect any action that would require the
         consent of the Holder of each Outstanding Unit affected thereby
         pursuant to the Purchase Contract Agreement if such action were
         effected by an agreement supplemental thereto; or

                  (iii) reduce the percentage of Purchase Contracts the consent
         of whose Holders is required for any such amendment.

         It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed amendment, but it shall be
sufficient if such Act shall approve the substance thereof.

         SECTION 9.3 Execution of Amendments.

         In executing any amendment permitted by this Section, the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent shall receive and (subject to Section 8.1 hereof, with respect to
the Collateral Agent, and Section 7.1 of the Purchase Contract Agreement, with
respect to the Purchase Contract Agent) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions precedent, if
any, to the execution and delivery of such amendment have been satisfied and, in
the case of an amendment pursuant to Section 9.1, that such amendment does not
adversely affect the validity, perfection or priority of the security interests
granted or created hereunder.

         SECTION 9.4 Effect of Amendments.

         Upon the execution of any amendment under this Article IX, this
Agreement shall be modified in accordance therewith, and such amendment shall
form a part of this Agreement for

                                       24
<PAGE>

all purposes; and every Holder of Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered under the
Purchase Contract Agreement shall be bound thereby.

         SECTION 9.5 Reference to Amendments.

         Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any amendment pursuant to this Section may, and
shall if required by the Collateral Agent or the Purchase Contract Agent, bear a
notation in form approved by the Purchase Contract Agent and the Collateral
Agent as to any matter provided for in such amendment. If the Company shall so
determine, new Certificates so modified as to conform, in the opinion of the
Collateral Agent, the Purchase Contract Agent and the Company, to any such
amendment may be prepared and executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Purchase Contract Agent
in accordance with the Purchase Contract Agreement and without charge or expense
to the Holders in exchange for outstanding Certificates.

                                    ARTICLE X

                                  MISCELLANEOUS

         SECTION 10.1 No Waiver.

         No failure on the part of any party hereto or any of its agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by any party hereto or any of its agents of
any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein
are cumulative and are not exclusive of any remedies provided by law.

         SECTION 10.2 Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS
OF LAWS. Without limiting the foregoing, the above choice of law is expressly
agreed to by the Securities Intermediary, the Collateral Agent, the Custodial
Agent and the Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, in connection with the establishment and
maintenance of the Collateral Account, which law, for purposes of the Code,
shall be deemed to be the law governing all Security Entitlements related
thereto. In addition, such parties agree that, for purposes of the Code, New
York shall be the Securities Intermediary's jurisdiction. The Company, the
Collateral Agent and the Holders from time to time of the Equity Security Units
and Stripped Equity Security Units, acting through the Purchase Contract Agent
as their attorney-in-fact, hereby submit to the nonexclusive jurisdiction of the
United States District Court for the Southern District of New York and of any
New York state court sitting in New York City for the purposes of all legal
proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby. The Company, the Collateral Agent and the Holders from time
to time of

                                       25
<PAGE>

the Equity Security Units and Stripped Equity Security Units, acting through the
Purchase Contract Agent as their attorney-in-fact, irrevocably waive, to the
fullest extent permitted by applicable law, any objection which they may now or
hereafter have to the laying of the venue of any such proceeding brought in such
a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.

         SECTION 10.3 Notices.

         Unless otherwise stated herein, all notices, requests, consents and
other communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "Address for Notices" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when personally delivered or, in the case of a mailed notice or
notice transmitted by telecopier, upon receipt, in each case given or addressed
as aforesaid.

         SECTION 10.4 Successors and Assigns.

         This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary and the Purchase Contract Agent,
and the Holders from time to time of the Equity Security Units or Stripped
Equity Security Units, by their acceptance of the same, shall be deemed to have
agreed to be bound by the provisions hereof and to have ratified the agreements
of, and the grant of the Pledge hereunder by, the Purchase Contract Agent.

         SECTION 10.5 Counterparts.

         This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

         SECTION 10.6 Severability.

         If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intentions of the parties
hereto as nearly as may be possible and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

         SECTION 10.7 Expenses Etc.

         The Company agrees to reimburse the Collateral Agent, the Securities
Intermediary and the Custodial Agent for:

                                       26
<PAGE>
         (a) all reasonable costs and all reasonable expenses of the Collateral
Agent, the Custodial Agent and the Securities Intermediary (including, without
limitation, the reasonable fees and expenses of counsel to the Collateral Agent,
the Custodial Agent and the Securities Intermediary and its agents), in
connection with (i) the negotiation, preparation, execution and delivery or
performance of this Agreement and (ii) any modification, supplement or waiver of
any of the terms of this Agreement;

         (b) all reasonable costs and expenses of the Collateral Agent
(including, without limitation, reasonable fees and expenses of counsel) in
connection with (i) any enforcement or proceedings resulting or incurred in
connection with causing any Holder of Equity Security Units or Stripped Equity
Security Units to satisfy its obligations under the Purchase Contracts forming a
part of the Equity Security Units and Stripped Equity Security Units and (ii)
the enforcement of this Section 10.7; and

         (c) all transfer, stamp, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any other document referred to herein and all
costs, expenses, taxes, assessments and other charges incurred in connection
with any filing, registration, recording or perfection of any security interest
contemplated hereby.

         SECTION 10.8 Security Interest Absolute.

         All rights of the Collateral Agent and security interests hereunder,
and all obligations of the Holders from time to time hereunder, shall be
absolute and unconditional irrespective of:

         (a) any lack of validity or enforceability of any provision of the
Purchase Contracts or the Equity Security Units or Stripped Equity Security
Units or any other agreement or instrument relating thereto;

         (b) any change in the time, manner or place of payment of, or any other
term of, or any increase in the amount of, all or any of the obligations of
Holders of Equity Security Units or Stripped Equity Security Units under the
related Purchase Contracts, or any other amendment or waiver of any term of, or
any consent to any departure from any requirement of, the Purchase Contract
Agreement or any Purchase Contract or any other agreement or instrument relating
thereto; or

         (c) any other circumstance which might otherwise constitute a defense
available to, or discharge of, a borrower, a guarantor or a pledgor.

         SECTION 10.9 Waiver of Jury Trial.

         EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                            [SIGNATURE PAGE FOLLOWS]

                                       27

<PAGE>

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

                               DTE ENERGY COMPANY

                               By:__________________________________________
                                  Name:  D.R. Murphy
                                  Title: Assistant Treasurer

                               Address for Notices:
                               2000 2nd Avenue, 850 WCB
                               Detroit, Michigan 48226-1279
                               Attention:  Assistant Treasurer
                               Telecopy: (313) 235-6743

                               THE BANK OF NEW YORK, as Purchase Contract Agent
                               and as attorney-in-fact of the Holders from time
                               to time of the Equity Security Units and
                               Stripped Equity Security Units

                               By:__________________________________________
                                  Name:
                                  Title:

                               Address for Notices:
                               101 Barclay Street
                               New York, New York 10286
                               Attention: Corporate Trust Administration
                               Telecopy: (212) 896-7298

                               THE BANK OF NEW YORK, as Collateral Agent,
                               Custodial Agent and Securities Intermediary

                               By:__________________________________________
                                  Name:
                                  Title:

                               Address for Notices:
                               101 Barclay Street
                               New York, New York 10286
                               Attention: Corporate Trust Administration
                               Telecopy: (212) 896-7298

<PAGE>
                                    EXHIBIT A

                       INSTRUCTION FROM PURCHASE CONTRACT
                            AGENT TO COLLATERAL AGENT

THE BANK OF NEW YORK,
as Collateral Agent
101 Barclay Street
New York, New York 10286

Re: Equity Security Units of DTE ENERGY COMPANY (the "Company")

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

         We hereby notify you in accordance with Section [4.1] [4.2] of the
Pledge Agreement, dated as of June 25, 2002 (the "Pledge Agreement") among the
Company, you, as Collateral Agent, Custodial Agent and Securities Intermediary
and us, as Purchase Contract Agent and as attorney-in-fact for the holders of
[Equity Security Units] [Stripped Equity Security Units] from time to time, that
the holder of Equity Security Units or Stripped Equity Security Units listed
below (the "Holder") has elected to substitute [$________ aggregate principal
amount of Treasury Securities (CUSIP No. 912803AG8)] [$________ aggregate
principal amount of Notes] in exchange for the related [Pledged Notes] [Pledged
Treasury Securities] held by you in accordance with the Pledge Agreement and has
delivered to us a notice stating that the Holder has Transferred [Treasury
Securities] [Notes] to you, as Collateral Agent. We hereby instruct you, upon
receipt of such [Pledged Treasury Securities] [Pledged Notes], and upon the
payment by such Holder of any applicable fees, to release the [Notes] [Treasury
Securities] related to such [Equity Security Units] [Stripped Equity Security
Units] to us in accordance with the Holder's instructions. Capitalized terms
used herein but not defined shall have the meaning set forth in the Pledge
Agreement.

Date:
                           THE BANK OF NEW YORK,
                           as Purchase Contract Agent

                           By:__________________________________________
                              Name:
                              Title:

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes] for the [Pledged Notes] [Pledged Treasury
Securities]:

Name:____________________________________

Social Security or other Taxpayer Identification
Number, if any:__________________________

Address:_____________________________

_____________________________________

DTC Account No.__________________

                                      A-1
<PAGE>

                                    EXHIBIT B

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

THE BANK OF NEW YORK,
as Purchase Contract Agent
101 Barclay Street
New York, New York 10286
Attn: Corporate Trust Administration
Telecopy: (212) 896-7298

Re: Equity Security Units of DTE ENERGY COMPANY (the "Company")

         The undersigned Holder hereby notifies you that it has delivered to The
Bank of New York, as Collateral Agent, Custodial Agent and Securities
Intermediary [$________ aggregate principal amount of Treasury Securities (CUSIP
No. 912803AG8)] [$_________ aggregate principal amount of Notes] in exchange for
the related [Pledged Notes] [Pledged Treasury Securities] held by the Collateral
Agent, in accordance with Section [4.1] [4.2] of the Pledge Agreement, dated
June 25, 2002 (the "Pledge Agreement"), among you, the Company and the
Collateral Agent. The undersigned Holder has paid the Collateral Agent all
applicable fees relating to such exchange. The undersigned Holder hereby
instructs you to instruct the Collateral Agent to release to you on behalf of
the undersigned Holder the [Pledged Notes] [Pledged Treasury Securities] related
to such [Equity Security Units] [Stripped Equity Security Units]. Capitalized
terms used herein but not defined shall have the meaning set forth in the Pledge
Agreement.

Date:______________________________     Signature:______________________________

                                        Signature Guarantee:____________________

Please print name and address of Registered Holder:

Name:__________________________________________

Social Security or other Taxpayer Identification Number, if any:

_______________________________________________

Address:_______________________________________

_______________________________________________

DTC Participant No._____________

                                      B-1
<PAGE>

                                    EXHIBIT C

              INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

THE BANK OF NEW YORK,
as Custodial Agent
101 Barclay Street
New York, New York 10286
Attention:  Corporate Trust Administration

Re:  Notes of DTE ENERGY COMPANY (the "Company")

         The undersigned hereby notifies you in accordance with Section 4.5(d)
of the Pledge Agreement, dated as of June 25, 2002 (the "Pledge Agreement"),
among the Company, yourselves, as Collateral Agent, Securities Intermediary and
Custodial Agent, and The Bank of New York, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Equity Security Units and Stripped Equity
Security Units from time to time, that the undersigned elects to deliver
$________ aggregate principal amount of Notes for delivery to the Remarketing
Agent on or prior to 11:00 a.m., New York City time, on the fourth Business Day
immediately preceding the first Business Day of any Remarketing Period or any
Subsequent Remarketing Period for remarketing pursuant to Section 4.5(d) of the
Pledge Agreement. The undersigned will, upon request of the Remarketing Agent,
execute and deliver any additional documents deemed by the Remarketing Agent or
by the Company to be necessary or desirable to complete the sale, assignment and
transfer of the Notes tendered hereby.

         The undersigned hereby instructs you, upon receipt of the proceeds of
such remarketing from the Remarketing Agent, net of amounts payable to the
Remarketing Agent in accordance with the Pledge Agreement, to deliver such
proceeds to the undersigned in accordance with the instructions indicated herein
under "A. Payment Instructions." The undersigned hereby instructs you, in the
event of a Last Failed Remarketing in the Remarketing Period to which this
notice relates, upon receipt of the Notes tendered herewith from the Remarketing
Agent, to be delivered to the person(s) and the address(es) indicated herein
under "B. Delivery Instructions."

         With this notice, the undersigned hereby (i) represents and warrants
that the undersigned has full power and authority to tender, sell, assign and
transfer the Notes tendered hereby and that the undersigned is the record owner
of any Notes tendered herewith in physical form or a participant in The
Depository Trust Company ("DTC") and the beneficial owner of any Notes tendered
herewith by book-entry transfer to your account at DTC and (ii) agrees to be
bound by the terms and conditions of Section 4.5(d) of the Pledge Agreement.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

Date:______________________________      Signature:_____________________________

                                         Signature Guarantee:___________________

Name:

Social Security or other Taxpayer Identification Number, if any:

Address:
                                      C-1
<PAGE>

A.   PAYMENT INSTRUCTIONS

Proceeds of the remarketing should be paid by check in the name of the person(s)
set forth below and mailed to the address set forth below.

Name(s):                  ------------------------------------------------------
                                              (Please Print)

Address:                  ------------------------------------------------------
                                              (Please Print)

(Zip Code)
(Tax Identification or Social Security Number):

B.   DELIVERY INSTRUCTIONS

In the event of a Last Failed Remarketing in a Remarketing Period to which this
notice relates, Notes which are in physical form should be delivered to the
person(s) set forth below and mailed to the address set forth below.

Name(s):                  ------------------------------------------------------
                                              (Please Print)

Address:                  ------------------------------------------------------
                                              (Please Print)

(Zip Code)
(Tax Identification or Social Security Number):

In the event of a Last Failed Remarketing in a Remarketing Period to which this
notice relates, Notes which are in book-entry form should be credited to the
account at The Depository Trust Company set forth below.

Name of Account Party:                                       DTC Account Number:

                                      C-2

<PAGE>

                                    EXHIBIT D

                    INSTRUCTION TO CUSTODIAL AGENT REGARDING

                           WITHDRAWAL FROM REMARKETING

THE BANK OF NEW YORK,
as Custodial Agent
101 Barclay Street
New York, New York 10286
Attention:  Corporate Trust Administration

Re:  Notes of DTE ENERGY COMPANY (the "Company")

         The undersigned hereby notifies you in accordance with Section 4.5(d)
of the Pledge Agreement, dated as of June 25, 2002 (the "Pledge Agreement"),
among the Company, yourselves, as Collateral Agent, Securities Intermediary and
Custodial Agent and The Bank of New York, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Equity Security Units and Stripped Equity
Security Units from time to time, that the undersigned elects to withdraw the
$_________ aggregate principal amount of Notes delivered to the Custodial Agent
on ________, 2005 for remarketing pursuant to Section 4.5(d) of the Pledge
Agreement. The undersigned hereby instructs you to return such Notes to the
undersigned in accordance with the undersigned's instructions. With this notice,
the Undersigned hereby agrees to be bound by the terms and conditions of Section
4.5(d) of the Pledge Agreement. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date:______________________________    Signature:_______________________________

                                       Signature Guarantee:_____________________

Name:

Social Security or other Taxpayer Identification Number, if any:

Address:

In the event of a Last Failed Remarketing in a Remarketing Period to which this
notice relates, Notes which are in book-entry form should be credited to the
account at The Depository Trust Company set forth below.

Name of Account Party:                                       DTC Account Number:

                                      D-1<PAGE>
                                                                   EXHIBIT 4-232

                               DTE ENERGY COMPANY

                                       AND

                              THE BANK OF NEW YORK,

                           AS PURCHASE CONTRACT AGENT

                           PURCHASE CONTRACT AGREEMENT

                           Dated as of June 25, 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                        <C>                                                                                 <C>
                                                           ARTICLE I.

                                     DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 1.1                Definitions............................................................................1

SECTION 1.2                Compliance Certificates And Opinions..................................................13

SECTION 1.3                Form Of Documents Delivered To Agent..................................................13

SECTION 1.4                Acts Of Holders; Record Dates.........................................................14

SECTION 1.5                Notices...............................................................................15

SECTION 1.6                Notice To Holders; Waiver.............................................................16

SECTION 1.7                Effect Of Headings And Table Of Contents..............................................17

SECTION 1.8                Successors And Assigns................................................................17

SECTION 1.9                Separability Clause...................................................................17

SECTION 1.10               Benefits Of Agreement.................................................................17

SECTION 1.11               Governing Law.........................................................................17

SECTION 1.12               Legal Holidays........................................................................17

SECTION 1.13               Counterparts..........................................................................18

SECTION 1.14               Inspection Of Agreement...............................................................18

                                                       ARTICLE II.

                                                    CERTIFICATE FORMS

SECTION 2.1                Forms Of Certificates Generally.......................................................18

SECTION 2.2                Form Of Agent's Certificate Of Authentication.........................................19
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                                                                                                                PAGE
<S>                        <C>                                                                                 <C>

                                                           ARTICLE III.

                                   THE EQUITY SECURITY UNITS AND STRIPPED EQUITY SECURITY UNITS

SECTION 3.1                Title And Terms; Denominations........................................................19

SECTION 3.2                Rights And Obligations Evidenced By The Certificates..................................20

SECTION 3.3                Execution, Authentication, Delivery And Dating........................................21

SECTION 3.4                Temporary Certificates................................................................21

SECTION 3.5                Registration; Registration Of Transfer And Exchange...................................22

SECTION 3.6                Book-Entry Interests..................................................................23

SECTION 3.7                Notices To Holders....................................................................24

SECTION 3.8                Appointment Of Successor Clearing Agency..............................................24

SECTION 3.9                Definitive Certificates...............................................................24

SECTION 3.10               Mutilated, Destroyed, Lost And Stolen Certificates....................................25

SECTION 3.11               Persons Deemed Owners.................................................................26

SECTION 3.12               Cancellation..........................................................................27

SECTION 3.13               Establishment Of Stripped Equity Security Units.......................................27

SECTION 3.14               Reestablishment Of Equity Security Units..............................................29

SECTION 3.15               Transfer Of Collateral Upon Occurrence Of Termination Event...........................30

SECTION 3.16               No Consent To Assumption..............................................................31

</TABLE>

                                       ii
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<CAPTION>

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<S>                        <C>                                                                                 <C>
                                                       ARTICLE IV.

                                                        THE NOTES

SECTION 4.1                Payment Of Interest; Rights To Interest Payments Preserved; Notice....................31

SECTION 4.2                Notice And Voting.....................................................................32

SECTION 4.3                Tax Event Redemption..................................................................32

                                                              ARTICLE V.

                                               THE PURCHASE CONTRACTS; THE REMARKETING

SECTION 5.1                Purchase Of Shares Of Common Stock....................................................33

SECTION 5.2                Contract Adjustment Payments..........................................................35

SECTION 5.3                Deferral Of Contract Adjustment Payments..............................................36

SECTION 5.4                Payment Of Purchase Price; Remarketing................................................38

SECTION 5.5                Issuance Of Shares Of Common Stock....................................................42

SECTION 5.6                Adjustment Of Settlement Rate.........................................................43

SECTION 5.7                Notice Of Adjustments And Certain Other Events........................................49

SECTION 5.8                Termination Event; Notice.............................................................50

SECTION 5.9                Early Settlement......................................................................50

SECTION 5.10               Early Settlement Upon Merger..........................................................52

SECTION 5.11               Charges And Taxes.....................................................................54

SECTION 5.12               No Fractional Shares..................................................................54

SECTION 5.13               Registration Statement and Prospectus.................................................55

                                                            ARTICLE VI.

                                                             REMEDIES

SECTION 6.1                Unconditional Right Of Holders To Purchase Common Stock...............................55

SECTION 6.2                Restoration Of Rights And Remedies....................................................56

SECTION 6.3                Rights And Remedies Cumulative........................................................56
</TABLE>

                                      iii
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<CAPTION>

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<S>                        <C>                                                                                <C>
SECTION 6.4                Delay or Omission Not Waiver..........................................................56

SECTION 6.5                Undertaking For Costs.................................................................56

SECTION 6.6                Waiver Of Stay Or Extension Laws......................................................56

                                                          ARTICLE VII.

                                                            THE AGENT

SECTION 7.1                Certain Duties, Rights And Immunities.................................................57

SECTION 7.2                Notice Of Default.....................................................................59

SECTION 7.3                Certain Rights Of Agent...............................................................59

SECTION 7.4                Not Responsible For Recitals, Etc.....................................................60

SECTION 7.5                May Hold Equity Security Units and Stripped Equity Security Units And Other
                           Dealings..............................................................................60

SECTION 7.6                Money Held In Custody.................................................................60

SECTION 7.7                Compensation And Reimbursement........................................................60

SECTION 7.8                Corporate Agent Required; Eligibility.................................................61

SECTION 7.9                Resignation And Removal; Appointment Of Successor.....................................61

SECTION 7.10               Acceptance Of Appointment By Successor................................................62

SECTION 7.11               Merger, Conversion, Consolidation Or Succession To Business...........................63

SECTION 7.12               Preservation Of Information; Communications To Holders................................63

SECTION 7.13               Failure to Act........................................................................64

SECTION 7.14               No Obligations Of Agent...............................................................64

SECTION 7.15               Tax Compliance........................................................................64
</TABLE>

                                       iv
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<CAPTION>

                                                                     .                                         PAGE
<S>                        <C>                                                                                 <C>
                                                          ARTICLE VIII.

                                                     SUPPLEMENTAL AGREEMENTS

SECTION 8.1                Supplemental Agreements Without Consent Of Holders....................................65

SECTION 8.2                Supplemental Agreements With Consent Of Holders.......................................65

SECTION 8.3                Execution Of Supplemental Agreements..................................................66

SECTION 8.4                Effect Of Supplemental Agreements.....................................................67

SECTION 8.5                Reference To Supplemental Agreements..................................................67

                                                            ARTICLE IX.

                                             CONSOLIDATION, MERGER, SALE OR CONVEYANCE

SECTION 9.1                Covenant Not To Merge, Consolidate, Sell Or Convey Property Except Under
                           Certain Conditions....................................................................67

SECTION 9.2                Rights And Duties Of Successor Corporation............................................67

SECTION 9.3                Opinion Of Counsel Given To Agent.....................................................68

                                                           ARTICLE X.

                                                           COVENANTS

SECTION 10.1               Performance Under Purchase Contracts..................................................68

SECTION 10.2               Maintenance Of Office Or Agency.......................................................68

SECTION 10.3               Company To Reserve Common Stock.......................................................69

SECTION 10.4               Covenants As To Common Stock..........................................................69

SECTION 10.5               Statements Of Officer Of The Company As To Default....................................69

Exhibit A --      Form of Equity Security Unit Certificate
Exhibit B --      Form of Stripped Equity Security Unit Certificate
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<S>              <C>                                                                                           <C>
Exhibit C --      Instruction from Purchase Contract Agent to Collateral Agent
                  (Collateral Substitution)
Exhibit D --      Instruction to Purchase Contract Agent
                  (Collateral Substitution)
Exhibit E --      Notice to Settle by Separate Cash
Exhibit F --      Form of Remarketing Agreement
</TABLE>

                                       vi
<PAGE>

         PURCHASE CONTRACT AGREEMENT (the "Agreement"), dated as of June 25,
2002, between DTE ENERGY COMPANY, a Michigan corporation (the "Company"), and
The Bank of New York, a New York banking corporation, acting as purchase
contract agent for the Holders of Equity Security Units and Stripped Equity
Security Units from time to time (the "Agent").

                                    RECITALS

         The Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Equity Security Units and Stripped
Equity Security Units.

         All things necessary to make the Purchase Contracts, when the
Certificates are executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Agent, as provided in this Agreement, the
valid and legally binding obligations of the Company, and to constitute this
Agreement a valid agreement of the Company, in accordance with its terms, have
been done.

                                   WITNESSETH:

         For and in consideration of the premises and the purchase of the Equity
Security Units by the Holders thereof, it is mutually agreed as follows:

                                   ARTICLE I.

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         SECTION 1.1 Definitions. For all purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires:

                  (a) the terms defined in this Article have the meanings
         assigned to them in this Article and include the plural as well as the
         singular, and nouns and pronouns of the masculine gender include the
         feminine and neuter genders;

                  (b) all accounting terms not otherwise defined herein have the
         meanings assigned to them in accordance with generally accepted
         accounting principles in the United States;

                  (c) the words "herein," "hereof" and "hereunder" and other
         words of similar import refer to this Agreement as a whole and not to
         any particular Article, Section or other subdivision; and

                  (d) the following terms have the meanings given to them in
this Section 1.1(d):

         "Act" when used with respect to any Holder, has the meaning specified
in Section 1.4.

         "Affiliate" has the same meaning as given to that term in Rule 405
promulgated under the Securities Act or any successor rule thereunder.

<PAGE>

         "Agent" means the Person named as the "Agent" in the first paragraph of
this instrument until a successor Agent shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter "Agent" shall mean such
Person.

         "Agreement" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

         "Applicable Market Value" has the meaning specified in Section 5.1(c).

         "Applicable Ownership Interest" means, with respect to an Equity
Security Unit and the Treasury Securities in the Treasury Portfolio or the Tax
Event Treasury Portfolio, (A) a 1/40, or 2.5%, undivided beneficial ownership
interest in a $1,000 principal or interest amount of a principal or interest
strip in a U.S. Treasury security included in such Treasury Portfolio or Tax
Event Treasury Portfolio that matures on the Business Day immediately preceding
the Stock Purchase Date and (B) for the scheduled interest Payment Date on the
Notes that occurs on the Stock Purchase Date, in the case of the Treasury
Portfolio, or for each scheduled interest Payment Date on the Notes that occurs
after the Tax Event Redemption Date and on or before the Stock Purchase Date, in
the case of the Tax Event Treasury Portfolio, a 0.02875% undivided beneficial
ownership interest in a $1,000 principal or interest amount of a principal or
interest strip in a U.S. Treasury security included in the Treasury Portfolio or
the Tax Event Treasury Portfolio that matures on the Business Day immediately
preceding the applicable interest Payment Date or Dates.

         "Applicants" has the meaning specified in Section 7.12(b).

         "Bankruptcy Code" means Title 11 of the United States Code, or any
other law of the United States that from time to time provides a uniform system
of bankruptcy laws.

         "Beneficial Owner" means, with respect to a Book-Entry Interest, a
Person who is the beneficial owner of such Book-Entry Interest as reflected on
the books of the Clearing Agency or on the books of a Person maintaining an
account with such Clearing Agency (directly as a Clearing Agency Participant or
as an indirect participant, in each case in accordance with the rules of such
Clearing Agency).

         "Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that board.

         "Board Resolution" means (i) a copy of a resolution certified by the
Secretary or the Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, (ii) a copy of a unanimous written consent of the Board of
Directors or (iii) a certificate signed by the authorized officer or officers to
whom the Board of Directors has delegated its authority, and in each case,
delivered to the Agent.

                                       2
<PAGE>

         "Book-Entry Interest" means a beneficial interest in a Global
Certificate, ownership and transfers of which shall be maintained and made
through book entries by a Clearing Agency as described in Section 3.6.

         "Business Day" means any day other than a Saturday, Sunday or any other
day on which banking institutions and trust companies in The State of New York
or at a place of payment are authorized or required by law, regulation or
executive order to be closed.

         "Capital Stock" means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or interests
in (however designated, whether voting or non-voting) corporate stock or similar
interests in other types of entities.

         "Cash Merger" has the meaning set forth in Section 5.10.

         "Cash Settlement" has the meaning set forth in Section 5.4(a).

         "Certificate" means an Equity Security Unit Certificate or a Stripped
Equity Security Unit Certificate.

         "Clearing Agency" means an organization registered as a "Clearing
Agency" pursuant to Section 17A of the Exchange Act that is acting as a
depositary for the Equity Security Units and Stripped Equity Security Units and
in whose name, or in the name of a nominee of that organization, shall be
registered a Global Certificate and which shall undertake to effect book-entry
transfers and pledges of the Equity Security Units and Stripped Equity Security
Units.

         "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time the Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

         "Closing Price" has the meaning specified in Section 5.1(c).

         "Collateral" has the meaning specified in Section 2.1(a) of the Pledge
Agreement.

         "Collateral Agent" means The Bank of New York, a New York banking
corporation, as Collateral Agent under the Pledge Agreement until a successor
Collateral Agent shall have become such pursuant to the applicable provisions of
the Pledge Agreement, and thereafter "Collateral Agent" shall mean the Person
who is then the Collateral Agent thereunder.

         "Collateral Substitution" has the meaning specified in Section 3.13(a).

         "Common Stock" means the common stock, without par value, of the
Company. At the date of this Agreement, each share of Common Stock has attached
to it the right to purchase from the Company one one-hundreth of a share of
Series A Junior Participating Preferred Stock, without par value, of the
Company, at a price of $90.00 per one one-hundreth of a preferred share, subject
to adjustment, as provided in the Rights Agreement, dated September 23, 1997,
between the Company and The Detroit Edison Company, as rights agent.

                                       3
<PAGE>

         "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor shall have become such pursuant
to the applicable provision of this Agreement, and thereafter "Company" shall
mean such successor.

         "Constituent Person" has the meaning specified in Section 5.6(b).

         "Contract Adjustment Payments" means, in the case of Equity Security
Units and Stripped Equity Security Units, the amount payable by the Company in
respect of each Purchase Contract constituting a part of such Equity Security
Units or Stripped Equity Security Units, equal to 4.15% per year of the Stated
Amount, in each case computed (1) for any full quarterly period on the basis of
a 360-day year of twelve 30-day months and (2) for any period shorter than a
full quarterly period, on the basis of a 30-day month and for periods less than
a month, on the basis of the actual number of days elapsed per 30-day month,
plus any Deferred Contract Adjustment Payments accumulated pursuant to Section
5.3.

         "Corporate Trust Office" means the office of the Agent at which, at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at 101 Barclay Street, New York, New
York 10286, Attention: Corporate Trust Administration.

         "Corporation" includes corporations, limited liability companies, and
except for purposes of Article IX, associations, companies and business trusts.

         "Coupon Rate" means the percentage rate per annum at which each Note
will bear interest initially.

         "Current Market Price" has the meaning specified in Section 5.6(a)(8).

         "Custodial Agent" means The Bank of New York, a New York banking
corporation, as Custodial Agent under the Pledge Agreement until a successor
Custodial Agent shall have become such pursuant to the applicable provisions of
the Pledge Agreement, and thereafter "Custodial Agent" shall mean the Person who
is then the Custodial Agent thereunder.

         "Deferred Contract Adjustment Payments" has the meaning specified in
Section 5.3.

         "Depositary" means, initially, DTC, until another Clearing Agency
becomes its successor.

         "DTC" means The Depository Trust Company, the initial Clearing Agency.

         "Early Settlement" has the meaning specified in Section 5.9(a).

         "Early Settlement Amount" has the meaning specified in Section 5.9(a).

         "Early Settlement Date" has the meaning specified in Section 5.9(a).

         "Early Settlement Rate" has the meaning specified in Section 5.9(b).

                                       4
<PAGE>

         "Equity Security Units" means the collective rights and obligations of
a Holder of an Equity Security Unit Certificate in respect of a Note or the
appropriate Applicable Ownership Interest in the Treasury Portfolio or the Tax
Event Treasury Portfolio, as the case may be, subject in each case to the Pledge
thereof, and the related Purchase Contract.

         "Equity Security Unit Certificate" means a certificate evidencing the
rights and obligations of a Holder in respect of the number of Equity Security
Units specified on such certificate, substantially in the form of Exhibit A
hereto.

         "Equity Security Unit Register" and "Equity Security Units Registrar"
have the respective meanings specified in Section 3.5(a).

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and any statute successor thereto, in each case as amended from time to time,
and the rules and regulations promulgated thereunder.

         "Expiration Date" has the meaning specified in Section 1.4(f).

         "Expiration Time" has the meaning specified in Section 5.6(a)(6).

         "Failed Remarketing" has the meaning specified in Section 5.4(b)(ii).

         "Fair Market Value" with respect to securities distributed in a
Spin-Off means (a) in the case of any Spin-Off that is effected simultaneously
with an initial public offering of such securities, the initial public offering
price of those securities, and (b) in the case of any other Spin-Off, the
average of the Sale Prices of those securities over the first 10 Trading Days
after the effective date of such Spin-Off.

         "Global Certificate" means a Certificate that evidences all or part of
the Equity Security Units or Stripped Equity Security Units and is registered in
the name of a Depositary or a nominee thereof.

         "Holder" means the Person in whose name the Equity Security Units or
Stripped Equity Security Units evidenced by an Equity Security Unit Certificate
and/or a Stripped Equity Security Unit Certificate is registered in the related
Equity Security Unit Register and/or the Stripped Equity Security Unit Register,
as the case may be.

         "Indenture" means the Amended and Restated Indenture, dated as of April
9, 2001, between the Company and the Trustee and as further supplemented by any
officers' certificate or supplemental indenture.

         "Issuer Order" or "Issuer Request" means a written order or request
signed in the name of the Company by the Chairman of the Board, its President, a
Vice-President, its Treasurer, an Assistant Treasurer, its Controller, an
Assistant Controller, its Secretary or an Assistant Secretary and delivered to
the Agent.

         "Last Failed Remarketing" has the meaning specified in Section
5.4(b)(ii).

                                       5
<PAGE>

         "Merger Early Settlement" has the meaning specified in Section 5.10.

         "Merger Early Settlement Amount" has the meaning specified in Section
5.10.

         "Merger Early Settlement Date" has the meaning specified in Section
5.10.

         "Non-electing Share" has the meaning specified in Section 5.6(b).

         "Notes" means the series of senior debt securities of the Company
designated the 4.60% Senior Notes due 2007, to be issued under the Indenture.

         "NYSE" has the meaning specified in Section 5.1.

         "Officer's Certificate" means a certificate signed by the Chairman of
the Board, the President, a Vice-President, the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an
Assistant Secretary of the Company and delivered to the Agent.

         "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company or an Affiliate.

         "Outstanding Units" means, as of the date of determination, all Equity
Security Units and Stripped Equity Security Units evidenced by Certificates
theretofore authenticated, executed and delivered under this Agreement, except:

                           (i) If a Termination Event has occurred, (A) Stripped
                  Equity Security Units and (B) Equity Security Units for which
                  the related Note or the appropriate Applicable Ownership
                  Interest in the Treasury Portfolio or Tax Event Treasury
                  Portfolio, as the case may be, has been theretofore deposited
                  with the Agent in trust for the Holders of such Equity
                  Security Units;

                           (ii) Equity Security Units and Stripped Equity
                  Security Units evidenced by Certificates theretofore cancelled
                  by the Agent or delivered to the Agent for cancellation or
                  deemed cancelled pursuant to the provisions of this Agreement;
                  and

                           (iii) Equity Security Units and Stripped Equity
                  Security Units evidenced by Certificates in exchange for or in
                  lieu of which other Certificates have been authenticated,
                  executed on behalf of the Holder and delivered pursuant to
                  this Agreement, other than any such Certificate in respect of
                  which there shall have been presented to the Agent proof
                  satisfactory to it that such Certificate is held by a bona
                  fide purchaser in whose hands the Equity Security Units or
                  Stripped Equity Security Units evidenced by such Certificate
                  are valid obligations of the Company;

provided, that in determining whether the Holders of the requisite number of the
Equity Security Units or Stripped Equity Security Units have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, Equity
Security Units and Stripped Equity Security Units

                                       6
<PAGE>

owned by the Company or any Affiliate of the Company shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Agent
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Equity Security Units and Stripped
Equity Security Units that a Responsible Officer of the Agent actually knows to
be so owned shall be so disregarded. Equity Security Units or Stripped Equity
Security Units so owned that have been pledged in good faith may be regarded as
Outstanding Units if the pledgee establishes to the satisfaction of the Agent
the pledgee's right so to act with respect to such Equity Security Units or
Stripped Equity Security Units and that the pledgee is not the Company or any
Affiliate of the Company.

         "Payment Date" means each February 16, May 16, August 16 and November
16, commencing August 16, 2002.

         "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         "Pledge" means the pledge under the Pledge Agreement of the Notes, the
Treasury Securities or the appropriate Applicable Ownership Interest in the
Treasury Portfolio or Tax Event Treasury Portfolio constituting a part of the
Equity Security Units, or the Treasury Securities constituting a part of the
Stripped Equity Security Units, property, cash, securities, financial assets and
security entitlements of the Collateral Account (as defined in the Pledge
Agreement) and any proceeds of any of the foregoing.

         "Pledge Agreement" means the Pledge Agreement, dated as of the date
hereof, by and among the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Agent, on its own behalf and as attorney-in-fact
for the Holders from time to time of the Equity Security Units and Stripped
Equity Security Units.

         "Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio" has the meaning set forth in Section 2.1(c) of the Pledge Agreement.

         "Pledged Applicable Ownership Interest in the Treasury Portfolio" has
the meaning set forth in Section 2.1(c) of the Pledge Agreement.

         "Pledged Notes" has the meaning set forth in Section 2.1(c) of the
Pledge Agreement.

         "Pledged Treasury Securities" has the meaning set forth in Section
2.1(c) of the Pledge Agreement.

         "Predecessor Certificate" means a Predecessor Equity Security Unit
Certificate or a Predecessor Stripped Equity Security Unit Certificate.

         "Predecessor Equity Security Unit Certificate" of any particular Equity
Security Unit Certificate means every previous Equity Security Unit Certificate
evidencing all or a portion of the rights and obligations of the Company and the
Holder under the Equity Security Units evidenced thereby; and, for the purposes
of this definition, any Equity Security Unit Certificate

                                        7
<PAGE>

authenticated and delivered under Section 3.10 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Equity Security Unit Certificate shall be
deemed to evidence the same rights and obligations of the Company and the Holder
as the mutilated, destroyed, lost or stolen Equity Security Unit Certificate.

         "Predecessor Stripped Equity Security Unit Certificate" of any
particular Stripped Equity Security Unit Certificate means every previous
Stripped Equity Security Unit Certificate evidencing all or a portion of the
rights and obligations of the Company and the Holder under the Stripped Equity
Security Units evidenced thereby; and, for the purposes of this definition, any
Stripped Equity Security Unit Certificate authenticated and delivered under
Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Stripped Equity Security Unit Certificate shall be deemed to evidence the
same rights and obligations of the Company and the Holder as the mutilated,
destroyed, lost or stolen Stripped Equity Security Unit Certificate.

         "Purchase Contract," when used with respect to any Equity Security
Units or Stripped Equity Security Units, means the contract forming a part of
such Equity Security Units or Stripped Equity Security Units and obligating the
Company to sell and the Holder of such Equity Security Units or Stripped Equity
Security Units to purchase Common Stock on the terms and subject to the
conditions set forth in Article Five.

         "Purchase Contract Settlement Fund" has the meaning specified in
Section 5.5.

         "Purchase Price" has the meaning specified in Section 5.1.

         "Purchased Shares" has the meaning specified in Section 5.6(a)(6).

         "Quotation Agent" means UBS Warburg LLC or Salomon Smith Barney Inc.,
or their respective successors or any other primary U.S. government securities
dealer in New York City selected by the Company.

         "Record Date" for the distribution payable on any Payment Date means,
as to any Global Certificate, the Business Day immediately preceding such
Payment Date, and as to any other Certificate, the 15th day preceding such
Payment Date.

         "Redemption Amount" means, (A) in the case of a Tax Event Redemption
occurring prior to the earlier of a successful remarketing of the Notes and the
Stock Purchase Date, for each Note the product of (i) the principal amount of
such Note and (ii) a fraction whose numerator is the applicable Tax Event
Treasury Portfolio Purchase Price and whose denominator is the aggregate
principal amount of Notes outstanding on the Tax Event Redemption Date, and (B)
in the case of a Tax Event Redemption occurring on or after the earlier of a
successful remarketing of the Notes and the Stock Purchase Date, for each Note
the principal amount of the Note.

         "Redemption Price" means the redemption price per Note equal to the
Redemption Amount plus any accrued and unpaid interest on such Note to the date
of redemption.

         "Reference Price" has the meaning specified in Section 5.1(a)(ii).

                                       8
<PAGE>

         "Register" means the Equity Security Unit Register or the Stripped
Equity Security Unit Register, as applicable.

         "Registrar" means the Equity Security Unit Registrar or the Stripped
Equity Security Unit Registrar, as applicable.

         "Remarketing Agent" has the meaning specified in Section 5.4(b)(i).

         "Remarketing Agreement" means the Remarketing Agreement entered into by
and among the Company, the Remarketing Agent and the Agent.

         "Remarketing Date" means the third Business Day immediately preceding
May 16, 2005.

         "Remarketing Fee" has the meaning specified in Section 5.4(b)(i).

         "Remarketing Period" means any of the following three Business Day
periods: (i) the Remarketing Date and each of the two immediately succeeding
Business Days; (ii) the three Business Days immediately preceding July 1, 2005;
or (iii) the seventh, sixth and fifth Business Days immediately preceding August
16, 2005.

         "Remarketing Value" means the sum of

                           (i) the value at the Remarketing Date or any
                  Subsequent Remarketing Date, as the case may be, of U.S.
                  Treasury securities that will pay, on the Business Day
                  immediately preceding the Payment Date falling on the Stock
                  Purchase Date, an amount of cash equal to the aggregate
                  interest payments that are scheduled to be payable on that
                  Payment Date, on (a) the Notes which are included in Equity
                  Security Units and (b) the Separate Notes that are to be
                  remarketed pursuant to Section 4.5(d) of the Pledge Agreement,
                  assuming for that purpose that the interest rate on the Notes
                  is equal to the Coupon Rate, and

                           (ii) the value at the Remarketing Date or the
                  Subsequent Remarketing Date, as the case may be, of U.S.
                  Treasury securities that will pay, on the Business Day
                  immediately preceding the Stock Purchase Date, an amount of
                  cash equal to the principal amount (a) of such Notes that are
                  included in Equity Security Units and (b) the Separate Notes
                  which are to be remarketed pursuant to Section 4.5(d) of the
                  Pledge Agreement,

provided that for purposes of clauses (i) and (ii) above, the Remarketing Value
shall be calculated on the assumptions that (x) the U.S. Treasury securities are
highly liquid and mature on or within 35 days prior to the Stock Purchase Date,
as determined in good faith by the Remarketing Agent in a manner intended to
minimize the cash value of the U.S. Treasury securities, and (y) the U.S.
Treasury securities are valued based on the ask-side price of the U.S. Treasury
securities at a time between 9:00 a.m. and 11:00 a.m., New York City time,
selected by the Remarketing Agent, on the Remarketing Date or any Subsequent
Remarketing Date, as the case may be, as determined on a third-day settlement
basis by a reasonable and customary means selected in good faith by the
Remarketing Agent, plus accrued interest to that date.

                                       9
<PAGE>
         "Reorganization Event" has the meaning specified in Section 5.6(b).

         "Reset Rate" has the meaning specified in Section 5.4(b)(i) and shall
be established pursuant to Section 5.4(b)(i) or (ii), as appropriate.

         "Responsible Officer" means, when used with respect to the Agent, any
officer within the corporate trust department of the Agent (or any successor of
the Agent), including any Vice President, any assistant Vice President, the
treasurer, any assistant treasurer, any trust officer, any senior trust officer
or any other officer of the Agent who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such
Person's knowledge of and familiarity with the particular subject and who, in
each of the above cases, shall have direct responsibility for the administration
of this Agreement.

         "Sale Price" of the Common Stock or any securities distributed in a
Spin-Off, as the case may be, on any Trading Day means the closing sale price
per share (or if no closing sale price is reported, the average of the per share
bid and per share ask prices or, if more than one per share bid or per share ask
price, the average of the average per share bid and the average per share asked
prices) on such Trading Day as reported in composite transactions for the
principal U.S. securities exchange on which the Common Stock or such securities
are traded or, if the Common Stock or such securities are not listed on a U.S.
national or regional securities exchange, as reported by Nasdaq.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Securities Intermediary" means The Bank of New York, a New York
banking corporation, in its capacity as Securities Intermediary under the Pledge
Agreement, together with its successors in such capacity.

         "Separate Notes" has the meaning set forth in the Pledge Agreement.

         "Settlement Date" means any Early Settlement Date or Merger Early
Settlement Date or the Stock Purchase Date.

         "Settlement Rate" has the meaning specified in Section 5.1.

         "Spin-Off" means a dividend or other distribution of shares of Capital
Stock of any class or series, or similar equity interests, of or relating to a
subsidiary or other business unit of the Company.

         "Stated Amount" means, with respect to any one Equity Security Unit or
Stripped Equity Security Unit, $25.

         "Stock Purchase Date" means August 16, 2005.

                                       10
<PAGE>

         "Stripped Equity Security Units" means the collective rights and
obligations of a holder of a Stripped Equity Security Unit Certificate in
respect of a 1/40 undivided beneficial interest in a Treasury Security, subject
in each case to the Pledge thereof, and the related Purchase Contract.

         "Stripped Equity Security Unit Certificate" means a certificate
evidencing the rights and obligations of a Holder in respect of the number of
Stripped Equity Security Units specified on such certificate, substantially in
the form of Exhibit B hereto.

         "Stripped Equity Security Unit Register" and "Stripped Equity Security
Unit Registrar" have the respective meanings specified in Section 3.5(a).

         "Subsequent Remarketing Date" means, provided there has been one or
more Failed Remarketings, the date on which the Remarketing Agent has
consummated a successful remarketing in accordance with Section 5.4 hereof, such
date to be no later than the fifth Business Day immediately preceding the Stock
Purchase Date.

         "Tax Event" means the receipt by the Company of an opinion of a
nationally recognized tax counsel experienced in such matters to the effect that
there is more than an insubstantial risk that interest payable by the Company on
the Notes on the next Payment Date would not be deductible, in whole or in part,
by the Company for United States federal income tax purposes, as a result of (a)
any amendment to, or change (including any announced proposed change) in, the
laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority thereof or therein affecting taxation, (b) any
amendment to or change in an official interpretation or application of such laws
or regulations by any legislative body, court, governmental agency or regulatory
authority or (c) any official interpretation or pronouncement that provides for
a position with respect to such laws or regulations that differs from the
generally accepted position on June 19, 2002, which amendment, change or
proposed change is effective or which interpretation or pronouncement is
announced on or after June 19, 2002.

         "Tax Event Redemption" means, if a Tax Event shall occur and be
continuing, the redemption of the Notes, at the option of the Company, in whole
but not in part, on not less than 30 days nor more than 60 days' written notice.

         "Tax Event Redemption Date" means the date upon which a Tax Event
Redemption is to occur.

         "Tax Event Treasury Portfolio" means portfolio of principal or interest
strips of U.S. Treasury Securities that mature on (1) the Business Day
immediately preceding the Stock Purchase Date in an aggregate amount equal to
the aggregate principal amount of the Notes included in the Equity Security
Units on the Tax Event Redemption Date and (2) with respect to each scheduled
interest Payment Date on the Notes that occurs after the Tax Event Redemption
Date and on or before the Stock Purchase Date, interest or principal strips of
U.S. Treasury Securities that mature on the Business Day immediately preceding
such interest Payment Date in an aggregate amount equal to the aggregate
interest payment that would be due on the aggregate principal amount of the
Notes outstanding on the Tax Event Redemption Date.

                                       11
<PAGE>

         "Tax Event Treasury Portfolio Purchase Price" means the lowest
aggregate price quoted by a primary U.S. government securities dealer in New
York City to the Quotation Agent on the third Business Day immediately preceding
the Tax Event Redemption Date for the purchase of the Treasury Portfolio for
settlement on the Tax Event Redemption Date.

         "Termination Date" means the date, if any, on which a Termination Event
occurs.

         "Termination Event" means the occurrence of any of the following
events:

                           (i) at any time on or prior to the Stock Purchase
                  Date, a judgment, decree or court order shall have been
                  entered granting relief under the Bankruptcy Code or any other
                  similar Federal or state law, adjudicating the Company to be
                  insolvent, or approving as properly filed a petition seeking
                  reorganization or liquidation of the Company under the
                  Bankruptcy Code or any other similar applicable federal or
                  state law, and, unless such judgment, decree or order shall
                  have been entered within 60 days prior to the Stock Purchase
                  Date, such decree or order shall have continued undischarged
                  and unstayed for a period of 60 days;

                           (ii) at any time on or prior to the Stock Purchase
                  Date, a judgment, decree or court order for the appointment of
                  a receiver or liquidator or trustee or assignee in bankruptcy
                  or insolvency of the Company or of its property, or for the
                  winding up or liquidation of its affairs, shall have been
                  entered, and, unless such judgment, decree or order shall have
                  been entered within 60 days prior to the Stock Purchase Date,
                  such judgment, decree or order shall have continued
                  undischarged and unstayed for a period of 60 days; or

                           (iii) at any time on or prior to the Stock Purchase
                  Date, the Company shall file a petition for relief under the
                  Bankruptcy Code or any other similar federal or state law, or
                  shall consent to the filing of a bankruptcy proceeding against
                  it, or shall file a petition or answer or consent seeking
                  reorganization or liquidation under the Bankruptcy Code or any
                  other similar federal or state law, or shall consent to the
                  filing of any such petition, or shall consent to the
                  appointment of a receiver or liquidator or trustee or assignee
                  in bankruptcy or insolvency of it or of its property, or shall
                  make an assignment for the benefit of creditors, or shall
                  admit in writing its inability to pay its debts generally as
                  they become due.

         "Threshold Appreciation Price" has the meaning specified in Section
5.1(a)(i).

         "TIA" means the Trust Indenture Act of 1939, as amended.

         "Trading Day" has the meaning specified in Section 5.1(c).

         "Transaction Documents" has the meaning specified in Section 7.1(a).

         "Treasury Portfolio" has the meaning specified in Section 5.4(b)(i).

                                       12
<PAGE>

         "Treasury Security" means a zero-coupon U.S. Treasury security (CUSIP
Number 912803AG8) maturing on August 15, 2005 that will pay $1,000 on such
maturity date.

         "Trustee" means The Bank of New York, a New York banking corporation,
as trustee under the Indenture, or any successor thereto.

         "Underwriting Agreement" means the Underwriting Agreement relating to
the Equity Security Units and Stripped Equity Security Units dated June 19, 2002
among the Company and the underwriters named therein.

         "Vice-President" means any vice-president, whether or not designated by
a number or a word or words added before or after the title "vice-president."

         SECTION 1.2 Compliance Certificates And Opinions. Except as otherwise
expressly provided by this Agreement, upon any application or request by the
Company to the Agent to take any action under any provision of this Agreement,
the Company shall furnish to the Agent an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with and, if requested by the Agent, an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Agreement relating to such
particular application or request, no additional certificate or opinion need be
furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement (other than the Officer's
Certificate provided for in Section 10.5) shall include:

                  (a) a statement that the Person signing such certificate or
         opinion has read such covenant or condition and the definitions herein
         relating thereto;

                  (b) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (c) a statement that, in the opinion of such Person, he or she
         has made such examination or investigation as is necessary to enable
         such individual to express an informed opinion as to whether or not
         such covenant or condition has been complied with; and

                  (d) a statement as to whether, in the opinion of such
         individual, such condition or covenant has been complied with.

         SECTION 1.3   Form Of Documents Delivered To Agent.

                  (a) In any case where several matters are required to be
         certified by, or covered by an opinion of, any specified Person, it is
         not necessary that all such matters be

                                       13
<PAGE>

         certified by, or covered by the opinion of, only one such Person, or
         that they be so certified or covered by only one document, but one such
         Person may certify or give an opinion with respect to some matters and
         one or more other such Persons as to other matters, and any such Person
         may certify or give an opinion as to such matters in one or several
         documents.

                  (b) Any certificate or opinion of an officer of the Company
         may be based, insofar as it relates to legal matters, upon a
         certificate or opinion of, or representations by, counsel, unless such
         officer knows, or in the exercise of reasonable care should know, that
         the certificate or opinion or representations with respect to the
         matters upon which his certificate or opinion is based are erroneous.
         Any such certificate or Opinion of Counsel may be based, insofar as it
         relates to factual matters, upon a certificate or opinion of, or
         representations by, an officer or officers of the Company stating that
         the information with respect to such factual matters is in the
         possession of the Company unless such counsel knows, or in the exercise
         of reasonable care should know, that the certificate or opinion or
         representations with respect to such matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

         SECTION 1.4   Acts Of Holders; Record Dates.

                  (a) Any request, demand, authorization, direction, notice,
         consent, waiver or other action provided by this Agreement to be given
         or taken by Holders may be embodied in and evidenced by one or more
         instruments of substantially similar tenor signed by such Holders in
         person or by agent duly appointed in writing; and, except as herein
         otherwise expressly provided, such action shall become effective when
         such instrument or instruments are delivered to the Agent and, where it
         is hereby expressly required, to the Company. Such instrument or
         instruments (and the action embodied therein and evidenced thereby) are
         herein sometimes referred to as the "Act" of the Holders signing such
         instrument or instruments. Proof of execution of any such instrument or
         of a writing appointing any such agent shall be sufficient for any
         purpose of this Agreement and (subject to Section 7.1) conclusive in
         favor of the Agent and the Company, if made in the manner provided in
         this Section.

                  (b) The fact and date of the execution by any Person of any
         such instrument or writing may be proved in any manner which the Agent
         deems sufficient.

                  (c) The ownership of Equity Security Units or Stripped Equity
         Security Units shall be proved by the Equity Security Unit Register or
         the Stripped Equity Security Unit Register, as the case may be.

                  (d) Any request, demand, authorization, direction, notice,
         consent, waiver or other Act of the Holder of any Certificate shall
         bind every future Holder of the same Certificate and the Holder of
         every Certificate issued upon the registration of transfer

                                       14
<PAGE>

         thereof or in exchange therefor or in lieu thereof in respect of
         anything done, omitted or suffered to be done by the Agent or the
         Company in reliance thereon, whether or not notation of such action is
         made upon such Certificate.

                  (e) The Company may set any day as a record date for the
         purpose of determining the Holders of Outstanding Units entitled to
         give, make or take any request, demand, authorization, direction,
         notice, consent, waiver or other action provided or permitted by this
         Agreement to be given, made or taken by Holders of Equity Security
         Units and Stripped Equity Security Units. If any record date is set
         pursuant to this paragraph, the Holders of the Outstanding Units on
         such record date, and no other Holders, shall be entitled to take the
         relevant action with respect to the Equity Security Units or the
         Stripped Equity Security Units, as the case may be, whether or not such
         Holders remain Holders after such record date; provided that no such
         action shall be effective hereunder unless taken on or prior to the
         applicable Expiration Date by Holders of the requisite number of
         Outstanding Units on such record date. Nothing in this paragraph shall
         be construed to prevent the Company from setting a new record date for
         any action for which a record date has previously been set pursuant to
         this paragraph (whereupon the record date previously set shall
         automatically and with no action by any Person be cancelled and of no
         effect), and nothing in this paragraph shall be construed to render
         ineffective any action taken by Holders of the requisite number of
         Outstanding Units on the date such action is taken. Promptly after any
         record date is set pursuant to this paragraph, the Company, at its own
         expense, shall cause notice of such record date, the proposed action by
         Holders and the applicable Expiration Date to be given to the Agent in
         writing and to each Holder of Equity Security Units and Stripped Equity
         Security Units in the manner set forth in Section 1.6. Notwithstanding
         the foregoing, for purposes of distributions payable on any Payment
         Date, the Record Date shall be, as to any Global Certificate, the
         Business Day immediately preceding such Payment Date.

                  (f) With respect to any record date set pursuant to this
         Section, the Company may designate any date as the "Expiration Date"
         and from time to time may change the Expiration Date to any earlier or
         later day; provided that no such change shall be effective unless
         notice of the proposed new Expiration Date is given to the Agent in
         writing, and to each Holder of Equity Security Units and Stripped
         Equity Security Units in the manner set forth in Section 1.6, on or
         prior to the existing Expiration Date. If an Expiration Date is not
         designated with respect to any record date set pursuant to this
         Section, the Company shall be deemed to have initially designated the
         180th day after such record date as the Expiration Date with respect
         thereto, subject to its right to change the Expiration Date as provided
         in this paragraph. Notwithstanding the foregoing, no Expiration Date
         shall be later than the 180th day after the applicable record date.

         SECTION 1.5 Notices. Any request, demand, authorization, direction,
notice, consent, waiver or Act of Holders or other document provided or
permitted by this Agreement to be made upon, given or furnished to, or filed
with:

                  (a) the Agent by any Holder or by the Company shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if made, given, furnished

                                       15
<PAGE>

         or filed in writing and personally delivered, mailed, first-class
         postage prepaid, telecopied or delivered by overnight air courier
         guaranteeing next day delivery, to the Agent at 101 Barclay Street, New
         York, New York 10286 , Attention: Corporate Trust Administration,
         telecopy: (212) 896-7298, or at any other address furnished in writing
         by the Agent to the Holders and the Company; or

                  (b) the Company by the Agent or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if made, given, furnished or filed in writing and
         personally delivered, mailed, first-class postage prepaid, telecopied
         or delivered by overnight air courier guaranteeing next day delivery,
         to the Company at DTE Energy Company, 2000 2nd Avenue, 850 WCB,
         Detroit, Michigan 48226-1279, Attention: Assistant Treasurer, telecopy:
         (313) 235-6743 or at any other address furnished in writing to the
         Agent by the Company; or

                  (c) the Collateral Agent by the Agent, the Company or any
         Holder shall be sufficient for every purpose hereunder (unless
         otherwise herein expressly provided) if made, given, furnished or filed
         in writing and personally delivered, mailed, first-class postage
         prepaid, telecopied or delivered by overnight air courier guaranteeing
         next day delivery, addressed to the Collateral Agent at 101 Barclay
         Street, New York, New York 10286, Attention: Corporate Trust
         Administration, telecopy: (212) 896-7298, or at any other address
         furnished in writing by the Collateral Agent to the Agent, the Company
         and the Holders; or

                  (d) the Trustee by the Company shall be sufficient for every
         purpose hereunder (unless otherwise herein expressly provided) if made,
         given, furnished or filed in writing and personally delivered, mailed,
         first-class postage prepaid, telecopied or delivered by overnight air
         courier guaranteeing next day delivery, addressed to the Trustee at 101
         Barclay Street, New York, New York 10286, Attention: Corporate Trust
         Administration, telecopy: (212) 896-7298 or at any other address
         furnished in writing by the Trustee to the Company.

         SECTION 1.6   Notice To Holders; Waiver.

                  (a) Where this Agreement provides for notice to Holders of any
         event, such notice shall be sufficiently given (unless otherwise herein
         expressly provided) if in writing and mailed, first-class postage
         prepaid, to each Holder affected by such event, at its address as it
         appears in the applicable Register, not later than the latest date, and
         not earlier than the earliest date, prescribed for the giving of such
         notice. In any case where notice to Holders is given by mail, neither
         the failure to mail such notice, nor any defect in any notice so mailed
         to any particular Holder shall affect the sufficiency of such notice
         with respect to other Holders. Where this Agreement provides for notice
         in any manner, such notice may be waived in writing by the Person
         entitled to receive such notice, either before or after the event, and
         such waiver shall be the equivalent of such notice. Waivers of notice
         by Holders shall be filed with the Agent, but such filing shall not be
         a condition precedent to the validity of any action taken in reliance
         upon such waiver.

                                       16
<PAGE>

                  (b) In case by reason of the suspension of regular mail
         service or by reason of any other cause it shall be impracticable to
         give such notice by mail, then such notification as shall be made with
         the approval of the Agent shall constitute a sufficient notification
         for every purpose hereunder.

         SECTION 1.7 Effect Of Headings And Table Of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 1.8 Successors And Assigns. All covenants and agreements in
this Agreement by the Company shall bind its successors and assigns, whether so
expressed or not.

         SECTION 1.9 Separability Clause. In case any provision in this
Agreement or in the Equity Security Units or Stripped Equity Security Units
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof and thereof shall not in any
way be affected or impaired thereby.

         SECTION 1.10 Benefits Of Agreement. Nothing in this Agreement or in the
Equity Security Units or Stripped Equity Security Units, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder and, to the extent provided hereby, the Holders, any benefits or any
legal or equitable right, remedy or claim under this Agreement. The Holders from
time to time shall be beneficiaries of this Agreement and shall be bound by all
of the terms and conditions hereof and of the Equity Security Units and Stripped
Equity Security Units evidenced by their Certificates by their acceptance of
delivery of such Certificates.

         SECTION 1.11 Governing Law. This Agreement and the Equity Security
Units and Stripped Equity Security Units shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
principles of conflicts of laws.

         SECTION 1.12   Legal Holidays.

                  (a) In any case where any Payment Date shall not be a Business
         Day, then (notwithstanding any other provision of this Agreement or the
         Equity Security Unit Certificates) payments on the Notes shall not be
         made on such date, but such payments shall be made on the next
         succeeding Business Day with the same force and effect as if made on
         such Payment Date, provided that no interest shall accrue or be payable
         by the Company for the period from and after any such Payment Date,
         except that if such next succeeding Business Day is in the next
         succeeding calendar year, such payment shall be made on the immediately
         preceding Business Day with the same force and effect as if made on
         such Payment Date.

                  (b) If any date on which Contract Adjustment Payments are to
         be made on the Purchase Contracts is not a Business Day, then payment
         of the Contract Adjustment Payments payable on that date will be made
         on the next succeeding day which is a Business Day, and no interest or
         additional payment will be paid in respect of the delay. However, if
         that Business Day is in the next succeeding calendar year, the payment
         will

                                       17
<PAGE>

         be made on the immediately preceding Business Day with the same force
         and effect as if made on that Payment Date.

                  (c) In any case where the Stock Purchase Date shall not be a
         Business Day, then (notwithstanding any other provision of this
         Agreement or the Certificates), the Purchase Contracts shall not be
         performed on such date, but the Purchase Contracts shall be performed
         on the immediately following Business Day with the same force and
         effect as if performed on the Stock Purchase Date.

         SECTION 1.13 Counterparts. This Agreement may be executed in any number
of counterparts by the parties hereto, each of which, when so executed and
delivered, shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

         SECTION 1.14 Inspection Of Agreement. A copy of this Agreement shall be
available at all reasonable times during normal business hours at the Corporate
Trust Office for inspection by any Holder.

                                   ARTICLE II.

                                CERTIFICATE FORMS

         SECTION 2.1   Forms Of Certificates Generally.

                  (a) The Equity Security Unit Certificates (including the form
         of Purchase Contract forming part of the Equity Security Units
         evidenced thereby) shall be in substantially the form set forth in
         Exhibit A hereto, with such letters, numbers or other marks of
         identification or designation and such legends or endorsements printed,
         lithographed or engraved thereon as may be required by the rules of any
         securities exchange or quotation system on which the Equity Security
         Units are listed or quoted for trading or any depositary therefor, or
         as may, consistently herewith, be determined by the officers of the
         Company executing such Equity Security Unit Certificates, as evidenced
         by their execution of the Equity Security Unit Certificates.

                  (b) The definitive Equity Security Unit Certificates shall be
         printed, lithographed or engraved on steel engraved borders or may be
         produced in any other manner, all as determined by the officers of the
         Company executing such Equity Security Unit Certificates, consistent
         with the provisions of this Agreement, as evidenced by their execution
         thereof.

                  (c) The Stripped Equity Security Unit Certificates (including
         the form of Purchase Contracts forming part of the Stripped Equity
         Security Units evidenced thereby) shall be in substantially the form
         set forth in Exhibit B hereto, with such letters, numbers or other
         marks of identification or designation and such legends or endorsements
         printed, lithographed or engraved thereon as may be required by the
         rules of any securities exchange or the quotation system on which the
         Stripped Equity Security Units may be

                                       18
<PAGE>

         listed or quoted for trading or any depositary therefor, or as may,
         consistently herewith, be determined by the officers of the Company
         executing such Stripped Equity Security Unit Certificates, as evidenced
         by their execution of the Stripped Equity Security Unit Certificates.

                  (d) The definitive Stripped Equity Security Unit Certificates
         shall be printed, lithographed or engraved on steel engraved borders or
         may be produced in any other manner, all as determined by the officers
         of the Company executing such Stripped Equity Security Unit
         Certificates, consistent with the provisions of this Agreement, as
         evidenced by their execution thereof.

                  (e) Every Global Certificate authenticated, executed on behalf
         of the Holders and delivered hereunder shall bear a legend in
         substantially the following form:

                  "THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING
                  OF THE PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED)
                  AND IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A
                  NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN
                  WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER
                  OF THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN
                  THE NAME OF ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR A
                  NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
                  IN THE PURCHASE CONTRACT AGREEMENT."

         SECTION 2.2   Form Of Agent's Certificate Of Authentication.

                  (a) The form of the Agent's certificate of authentication of
         the Equity Security Units shall be in substantially the form set forth
         on the form of the Equity Security Unit Certificates.

                  (b) The form of the Agent's certificate of authentication of
         the Stripped Equity Security Units shall be in substantially the form
         set forth on the form of the Stripped Equity Security Unit
         Certificates.

                                  ARTICLE III.

         THE EQUITY SECURITY UNITS AND STRIPPED EQUITY SECURITY UNITS

         SECTION 3.1   Title And Terms; Denominations.

                  (a) The aggregate number of Equity Security Units and Stripped
         Equity Security Units, if any, evidenced by Certificates authenticated,
         executed on behalf of the Holders and delivered hereunder is limited to
         6,000,000 (6,900,000 if the Underwriters' (as defined in the
         Underwriting Agreement) over-allotment option pursuant to the
         Underwriting Agreement is exercised in full), except for Certificates
         authenticated,

                                       19
<PAGE>

         executed and delivered upon registration of transfer of, in exchange
         for, or in lieu of, other Certificates pursuant to Section 3.4, 3.5,
         3.10, 3.13, 3.14, 5.9, 5.10 or 8.5.

                  (b) The Certificates shall be issuable only in registered form
         and only in denominations of a single Equity Security Unit or a single
         Stripped Equity Security Unit and any integral multiple thereof.

         SECTION 3.2   Rights And Obligations Evidenced By The Certificates.

                  (a) Each Equity Security Unit Certificate shall evidence the
         number of Equity Security Units specified therein, with each such
         Equity Security Unit representing the ownership by the Holder thereof
         of a beneficial interest in a Note or the appropriate Applicable
         Ownership Interest in the Treasury Portfolio or Tax Event Treasury
         Portfolio, as the case may be, subject to the Pledge of such Note or
         such Applicable Ownership Interest in the Treasury Portfolio or Tax
         Event Treasury Portfolio, as the case may be, by such Holder pursuant
         to the Pledge Agreement, and the rights and obligations of the Holder
         thereof and the Company under one Purchase Contract. The Agent as
         attorney-in-fact for, and on behalf of, the Holder of each Equity
         Security Unit shall pledge, pursuant to the Pledge Agreement, the Note
         or the appropriate Applicable Ownership Interest in the Treasury
         Portfolio or Tax Event Treasury Portfolio, as the case may be, forming
         a part of such Equity Security Unit, to the Collateral Agent and grant
         to the Collateral Agent a security interest in the right, title, and
         interest of such Holder in such Note or such Applicable Ownership
         Interest in the Treasury Portfolio or Tax Event Treasury Portfolio, as
         the case may be, for the benefit of the Company, to secure the
         obligation of the Holder under each Purchase Contract to purchase the
         Common Stock of the Company. Prior to the purchase of shares of Common
         Stock under each Purchase Contract, such Purchase Contracts shall not
         entitle the Holders of Equity Security Unit Certificates to any of the
         rights of a holder of shares of Common Stock, including, without
         limitation, the right to vote or receive any dividends or other
         payments or to consent or to receive notice as stockholders in respect
         of the meetings of stockholders or for the election of directors of the
         Company or for any other matter, or any other rights whatsoever as
         stockholders of the Company.

                  (b) Each Stripped Equity Security Unit Certificate shall
         evidence the number of Stripped Equity Security Units specified
         therein, with each such Stripped Equity Security Unit representing the
         ownership by the Holder thereof of a 1/40 undivided beneficial interest
         in a Treasury Security, subject to the Pledge of such interest in such
         Treasury Security by such Holder pursuant to the Pledge Agreement, and
         the rights and obligations of the Holder thereof and the Company under
         one Purchase Contract. Prior to the purchase of shares of Common Stock
         under each Purchase Contract, such Purchase Contracts shall not entitle
         the Holders of Stripped Equity Security Unit Certificates to any of the
         rights of a holder of shares of Common Stock, including, without
         limitation, the right to vote or receive any dividends or other
         payments or to consent or to receive notice as stockholders in respect
         of the meetings of stockholders or for the election of directors of the
         Company or for any other matter, or any other rights whatsoever as
         stockholders of the Company.

                                       20
<PAGE>

         SECTION 3.3   Execution, Authentication, Delivery And Dating.

                  (a) Subject to the provisions of Sections 3.13 and 3.14, upon
         the execution and delivery of this Agreement, and at any time and from
         time to time thereafter, the Company may deliver Certificates executed
         by the Company to the Agent for authentication, execution on behalf of
         the Holders and delivery, together with its Issuer Order for
         authentication of such Certificates, and the Agent in accordance with
         such Issuer Order shall authenticate, execute on behalf of the Holders
         and deliver such Certificates.

                  (b) The Certificates shall be executed on behalf of the
         Company by the Chairman of the Board, its President, its Treasurer, any
         Assistant Treasurer or any of its Vice Presidents and delivered to the
         Agent. The signature of any of these officers on the Certificates may
         be manual or facsimile.

                  (c) Certificates bearing the manual or facsimile signatures of
         individuals who were at any time the proper officers of the Company
         shall bind the Company, notwithstanding that such individuals or any of
         them have ceased to hold such offices prior to the authentication and
         delivery of such Certificates or did not hold such offices at the date
         of such Certificates.

                  (d) No Purchase Contract evidenced by a Certificate shall be
         valid until such Certificate has been executed on behalf of the Holder
         by the manual or facsimile signature of an authorized officer of the
         Agent, as such Holder's attorney-in-fact. Such signature by an
         authorized officer of the Agent shall be conclusive evidence that the
         Holder of such Certificate has entered into the Purchase Contracts
         evidenced by such Certificate.

                  (e) Each Certificate shall be dated the date of its
         authentication.

                  (f) No Certificate shall be entitled to any benefit under this
         Agreement or be valid or obligatory for any purpose unless there
         appears on such Certificate a certificate of authentication
         substantially in the form provided for herein executed by an authorized
         officer of the Agent by manual signature, and such certificate upon any
         Certificate shall be conclusive evidence, and the only evidence, that
         such Certificate has been duly authenticated and delivered hereunder.

         SECTION 3.4   Temporary Certificates.

                  (a) Pending the preparation of definitive Certificates, the
         Company shall execute and deliver to the Agent, and the Agent shall
         authenticate, execute on behalf of the Holders, and deliver, in lieu of
         such definitive Certificates, temporary Certificates which are in
         substantially the form set forth in Exhibit A or Exhibit B hereto, as
         the case may be, with such letters, numbers or other marks of
         identification or designation and such legends or endorsements printed,
         lithographed or engraved thereon as may be required by the rules of any
         securities exchange on which the Equity Security Units or

                                       21
<PAGE>

         Stripped Equity Security Units, as the case may be, are listed, or as
         may, consistent herewith, be determined by the officers of the Company
         executing such Certificates, as evidenced by their execution of the
         Certificates.

                  (b) If temporary Certificates are issued, the Company will
         cause definitive Certificates to be prepared without unreasonable
         delay. After the preparation of definitive Certificates, the temporary
         Certificates shall be exchangeable for definitive Certificates upon
         surrender of the temporary Certificates at the Corporate Trust Office,
         at the expense of the Company and without charge to the Holder. Upon
         surrender for cancellation of any one or more temporary Certificates,
         the Company shall execute and deliver to the Agent, and the Agent shall
         authenticate, execute on behalf of the Holder, and deliver in exchange
         therefor, one or more definitive Certificates of like tenor and
         denominations and evidencing a like number of Equity Security Units or
         Stripped Equity Security Units, as the case may be, as the temporary
         Certificate or Certificates so surrendered. Until so exchanged, the
         temporary Certificates shall in all respects evidence the same benefits
         and the same obligations with respect to the Equity Security Units or
         Stripped Equity Security Units, as the case may be, evidenced thereby
         as definitive Certificates.

         SECTION 3.5   Registration; Registration Of Transfer And Exchange.

                  (a) The Agent shall keep at the Corporate Trust Office a
         register (the "Equity Security Unit Register") in which, subject to
         such reasonable regulations as it may prescribe, the Agent shall
         provide for the registration of Equity Security Unit Certificates and
         of transfers of Equity Security Unit Certificates (the Agent, in such
         capacity, the "Equity Security Units Registrar") and a register (the
         "Stripped Equity Security Unit Register") in which, subject to such
         reasonable regulations as it may prescribe, the Agent shall provide for
         the registration of the Stripped Equity Security Unit Certificates and
         transfers of Stripped Equity Security Unit Certificates (the Agent, in
         such capacity, the "Stripped Equity Security Unit Registrar").

                  (b) Upon surrender for registration of transfer of any
         Certificate at the Corporate Trust Office, the Company shall execute
         and deliver to the Agent, and the Agent shall authenticate, execute on
         behalf of the designated transferee or transferees, and deliver, in the
         name of the designated transferee or transferees, one or more new
         Certificates of like tenor and denominations, and evidencing a like
         number of Equity Security Units or Stripped Equity Security Units, as
         the case may be.

                  (c) At the option of the Holder, Certificates may be exchanged
         for other Certificates, of like tenor and denominations and evidencing
         a like number of Equity Security Units or Stripped Equity Security
         Units, as the case may be, upon surrender of the Certificates to be
         exchanged at the Corporate Trust Office. Whenever any Certificates are
         so surrendered for exchange, the Company shall execute and deliver to
         the Agent, and the Agent shall authenticate, execute on behalf of the
         Holder, and deliver the Certificates which the Holder making the
         exchange is entitled to receive.

                                       22
<PAGE>

                  (d) All Certificates issued upon any registration of transfer
         or exchange of a Certificate shall evidence the ownership of the same
         number of Equity Security Units or Stripped Equity Security Units, as
         the case may be, and be entitled to the same benefits and subject to
         the same obligations, under this Agreement as the Equity Security Units
         or Stripped Equity Security Units, as the case may be, evidenced by the
         Certificate surrendered upon such registration of transfer or exchange.

                  (e) Every Certificate presented or surrendered for
         registration of transfer or for exchange shall (if so required by the
         Agent) be duly endorsed, or be accompanied by a written instrument of
         transfer in form satisfactory to the Company and the Agent duly
         executed, by the Holder thereof or its attorney duly authorized in
         writing.

                  (f) No service charge shall be made for any registration of
         transfer or exchange of a Certificate, but the Company and the Agent
         may require payment from the Holder of a sum sufficient to cover any
         tax or other governmental charge that may be imposed in connection with
         any registration of transfer or exchange of Certificates, other than
         any exchanges pursuant to Sections 3.4, 3.9 and 8.5 not involving any
         transfer.

                  (g) Notwithstanding the foregoing, the Company shall not be
         obligated to execute and deliver to the Agent, and the Agent shall not
         be obligated to authenticate, execute on behalf of the Holder and
         deliver any Certificate presented or surrendered for registration of
         transfer or for exchange on or after the Business Day immediately
         preceding the earlier of the Stock Purchase Date or the Termination
         Date. In lieu of delivery of a new Certificate, upon satisfaction of
         the applicable conditions specified above in this Section and receipt
         of appropriate registration or transfer instructions from such Holder,
         the Agent shall,

                           (i) if the Stock Purchase Date has occurred, deliver
                  the shares of Common Stock issuable in respect of the Purchase
                  Contracts forming a part of the Equity Security Units or
                  Stripped Equity Security Units, as the case may be, evidenced
                  by such Certificate,

                           (ii) in the case of Equity Security Units, if a
                  Termination Event shall have occurred prior to the Stock
                  Purchase Date, transfer the Notes or the appropriate
                  Applicable Ownership Interest in the Treasury Portfolio or Tax
                  Event Treasury Portfolio, as applicable, relating to such
                  Equity Security Units or, in the case of Stripped Equity
                  Security Units, if a Termination Event shall have occurred
                  prior to the Stock Purchase Date, transfer the Treasury
                  Securities relating to such Stripped Equity Security Units,

         in each case subject to the applicable conditions and in accordance
         with the applicable provisions of Article V.

         SECTION 3.6 Book-Entry Interests. The Certificates, on original
issuance, will be issued in the form of one or more fully registered Global
Certificates, to be delivered to the Depositary or its custodian by, or on
behalf of, the Company. Each such Global Certificate shall

                                       23
<PAGE>

initially be registered in the applicable Register in the name of the Depositary
or its nominee, and no Beneficial Owner will receive a definitive Certificate
representing such Beneficial Owner's interest in such Global Certificate, except
as provided in Section 3.9. The Agent shall enter into agreements with the
Depositary if so requested by the Company in order to effect the book-entry
provisions of this Agreement. Unless and until definitive, fully registered
Certificates have been issued to Beneficial Owners pursuant to Section 3.9:

                  (a) the provisions of this Section 3.6 shall be in full force
         and effect;

                  (b) the Company shall be entitled to deal with the Clearing
         Agency for all purposes of this Agreement (including receiving
         approvals, votes or consents hereunder) as the Holder of the Equity
         Security Units and Stripped Equity Security Units and the sole holder
         of the Global Certificate(s) and shall have no obligation to the
         Beneficial Owners;

                  (c) to the extent that the provisions of this Section 3.6
         conflict with any other provisions of this Agreement, the provisions of
         this Section 3.6 shall control; and

                  (d) the rights of the Beneficial Owners shall be exercised
         only through the Clearing Agency and shall be limited to those
         established by law and agreements between such Beneficial Owners and
         the Clearing Agency and/or the Clearing Agency Participants. The
         Clearing Agency will make book-entry transfers among Clearing Agency
         Participants.

         SECTION 3.7 Notices To Holders. Whenever a notice or other
communication to the Holders is required to be given under this Agreement, the
Company or the Company's agent shall give such notices and communications to the
Holders and, with respect to any Equity Security Units or Stripped Equity
Security Units registered in the name of a Clearing Agency or the nominee of a
Clearing Agency, the Company or the Company's agent shall, except as set forth
herein, have no obligations to the Beneficial Owners.

         SECTION 3.8 Appointment Of Successor Clearing Agency. If any Clearing
Agency elects to discontinue its services as securities depositary with respect
to the Equity Security Units and Stripped Equity Security Units, the Company
may, in its sole discretion, appoint a successor Clearing Agency with respect to
the Equity Security Units and Stripped Equity Security Units.

         SECTION 3.9   Definitive Certificates.  If

                           (i) a Clearing Agency has notified the Company that
                  it is unwilling or unable to continue as securities depositary
                  and a successor Clearing Agency is not appointed within 90
                  days after such discontinuance pursuant to Section 3.8,

                           (ii) the Company determines not to have the Equity
                  Security Units and Stripped Equity Security Units represented
                  by Global Certificates or permit any of the Global
                  Certificates to be exchangeable or there is a continuing
                  default by the Company in respect of the Company's obligations
                  under one or more Purchase Contracts, the Indenture, this
                  Agreement, the Notes, the Equity Security Units, the Stripped
                  Equity Security Units, the Pledge Agreement or any other
                  principal

                                       24
<PAGE>

                  agreements or instruments executed in connection with the
                  issuance of Equity Securities Units or Stripped Equity
                  Security Units, or

                           (iii) a Clearing Agency has ceased to be qualified to
                  act as securities depositary with respect to the Equity
                  Securities Units and Stripped Equity Security Units and a
                  successor Clearing Agency is not appointed with 90 days after
                  the Company learns that such Clearing Agency is no longer
                  qualified,

then upon surrender of the Global Certificates representing the Book-Entry
Interests with respect to the Equity Security Units and Stripped Equity Security
Units by the Clearing Agency, accompanied by registration instructions, the
Company shall cause definitive Certificates to be delivered to Beneficial Owners
in accordance with the instructions of the Clearing Agency. The Company and the
Agent shall not be liable for any delay in delivery of such instructions and may
conclusively rely on and shall be protected in relying on, such instructions.

         SECTION 3.10   Mutilated, Destroyed, Lost And Stolen Certificates.

                  (a) If any mutilated Certificate is surrendered to the Agent,
         the Company shall execute and deliver to the Agent, and the Agent shall
         authenticate, execute on behalf of the Holder, and deliver in exchange
         therefor, a new Certificate at the cost of the Holder, evidencing the
         same number of Equity Security Units or Stripped Equity Security Units,
         as the case may be, and bearing a Certificate number not
         contemporaneously outstanding.

                  (b) If there shall be delivered to the Company and the Agent
         (i) evidence to their satisfaction of the destruction, loss or theft of
         any Certificate, and (ii) such security or indemnity at the cost of the
         Holder as may be required by them to hold each of them and any agent of
         any of them harmless, then, in the absence of notice to the Company or
         the Agent that such Certificate has been acquired by a bona fide
         purchaser, the Company shall execute and deliver to the Agent, and the
         Agent shall authenticate, execute on behalf of the Holder, and deliver
         to the Holder, in lieu of any such destroyed, lost or stolen
         Certificate, a new Certificate, evidencing the same number of Equity
         Security Units or Stripped Equity Security Units, as the case may be,
         and bearing a Certificate number not contemporaneously outstanding.

                  (c) Notwithstanding the foregoing, the Company shall not be
         obligated to execute and deliver to the Agent, and the Agent shall not
         be obligated to authenticate, execute on behalf of the Holder, and
         deliver to the Holder, a Certificate on or after the Business Day
         immediately preceding the earlier of the Stock Purchase Date or the
         Termination Date. In lieu of delivery of a new Certificate, upon
         satisfaction of the applicable conditions specified above in this
         Section and receipt of appropriate registration or transfer
         instructions from such Holder, the Agent shall (i) if the Stock
         Purchase Date has occurred, deliver the shares of Common Stock issuable
         in respect of the Purchase Contracts forming a part of the Equity
         Security Units or Stripped Equity Security Units evidenced by such
         Certificate, or (ii) if a Termination Event shall have occurred prior
         to the Stock Purchase Date, transfer the Notes, the appropriate
         Applicable Ownership Interest in the Treasury Portfolio or Tax Event
         Treasury Portfolio, or the

                                       25

<PAGE>

         Treasury Securities, as the case may be, evidenced thereby, in each
         case subject to the applicable conditions and in accordance with the
         applicable provisions of Article V.

                  (d) Upon the issuance of any new Certificate under this
         Section, the Company and the Agent may require the payment by the
         Holder of a sum sufficient to cover any tax or other governmental
         charge that may be imposed in relation thereto and any other expenses
         (including the fees and expenses of the Agent) connected therewith.

                  (e) Every new Certificate issued pursuant to this Section in
         lieu of any destroyed, lost or stolen Certificate shall constitute an
         original additional contractual obligation of the Company and of the
         Holder in respect of the Equity Security Units or Stripped Equity
         Security Units, as the case may be, evidenced thereby, whether or not
         the destroyed, lost or stolen Certificate (and the Equity Security
         Units and Stripped Equity Security Units evidenced thereby) shall be at
         any time enforceable by anyone, and shall be entitled to all the
         benefits and be subject to all the obligations of this Agreement
         equally and proportionately with any and all other Certificates
         delivered hereunder.

                  (f) The provisions of this Section are exclusive and shall
         preclude (to the extent lawful) all other rights and remedies with
         respect to the replacement or payment of mutilated, destroyed, lost or
         stolen Certificates.

         SECTION 3.11 Persons Deemed Owners.

                  (a) Prior to due presentment of a Certificate for registration
         of transfer, the Company and the Agent, and any agent of the Company or
         the Agent, may treat the Person in whose name such Certificate is
         registered as the owner of the Equity Security Units or Stripped Equity
         Security Units, as the case may be, evidenced thereby, for the purpose
         of receiving interest payments on the Notes, receiving payment of
         Contract Adjustment Payments, performance of the Purchase Contracts and
         for all other purposes whatsoever (subject to Sections 4.1(a) and
         5.2(a)), whether or not any such payments shall be overdue and
         notwithstanding any notice to the contrary, and neither the Company nor
         the Agent, nor any agent of the Company or the Agent, shall be affected
         by notice to the contrary.

                  (b) Notwithstanding the foregoing, with respect to any Global
         Certificate, nothing herein shall prevent the Company, the Agent or any
         agent of the Company or the Agent, from giving effect to any written
         certification, proxy or other authorization furnished by any Clearing
         Agency (or its nominee), as a Holder, with respect to such Global
         Certificate or impair, as between such Clearing Agency and owners of
         beneficial interests in such Global Certificate, the operation of
         customary practices governing the exercise of rights of such Clearing
         Agency (or its nominee) as Holder of such Global Certificate. None of
         the Company, the Agent, or any agent of the Company or the Agent, will
         have any responsibility or liability for any aspect of the records
         relating to or payments made on account of beneficial ownership
         interests of a Global Certificate or maintaining, supervising or
         reviewing any records relating to such beneficial ownership interests.

                                       26
<PAGE>

         SECTION 3.12   Cancellation.

                  (a) All Certificates surrendered (i) for delivery of shares of
         Common Stock on or after any Settlement Date; (ii) upon the transfer of
         Notes, the appropriate Applicable Ownership Interest in the Treasury
         Portfolio or Tax Event Treasury Portfolio, or Treasury Securities, as
         the case may be, after the occurrence of a Termination Event; or (iii)
         upon the registration of a transfer or exchange of an Equity Security
         Unit or Stripped Equity Security Unit, as the case may be, shall, if
         surrendered to any Person other than the Agent, be delivered to the
         Agent and, if not already cancelled, shall be promptly cancelled by it.
         The Company may at any time deliver to the Agent for cancellation any
         Certificates previously authenticated, executed and delivered hereunder
         which the Company may have acquired in any manner whatsoever, and all
         Certificates so delivered shall, upon Issuer Order, be promptly
         cancelled by the Agent. No Certificates shall be authenticated,
         executed on behalf of the Holder and delivered in lieu of or in
         exchange for any Certificates cancelled as provided in this Section,
         except as expressly permitted by this Agreement. All cancelled
         Certificates held by the Agent shall be disposed of by the Agent in
         accordance with its customary procedures unless otherwise directed by
         Issuer Order.

                  (b) If the Company or any Affiliate of the Company shall
         acquire any Certificate, such acquisition shall not operate as a
         cancellation of such Certificate unless and until such Certificate is
         delivered to the Agent cancelled or for cancellation.

         SECTION 3.13   Establishment Of Stripped Equity Security Units.

                  (a) Subject to the next succeeding sentence, a holder may
         separate the Pledged Notes from the related Purchase Contracts in
         respect of the Equity Security Units held by such Holder by
         substituting for such Pledged Notes Treasury Securities that will pay,
         on the Stock Purchase Date, an amount equal to the aggregate principal
         amount of such Notes (a "Collateral Substitution"), at any time from
         and after the date of this Agreement and prior to the earlier of a
         successful remarketing of the Notes in accordance with the provisions
         of Section 5.4 hereof or the date, if any, on which the Notes are
         called for redemption by the Company in connection with a Tax Event
         Redemption, by (i) depositing with the Collateral Agent Treasury
         Securities having an aggregate principal amount at maturity equal to
         the aggregate Stated Amount of such Equity Security Units, and (ii)
         transferring the related Equity Security Units to the Agent accompanied
         by a notice to the Agent, substantially in the form of Exhibit D
         hereto, stating that the Holder has transferred the relevant amount of
         Treasury Securities to the Collateral Agent and requesting that the
         Agent instruct the Collateral Agent to release the Pledged Notes
         underlying such Equity Security Units, whereupon the Agent shall
         promptly give such instruction to the Collateral Agent, substantially
         in the form of Exhibit C hereto. Notwithstanding the foregoing, Holders
         may not effect Collateral Substitution during any period beginning
         after 5:00 p.m., New York City time, on the fourth Business Day
         immediately preceding the first Business Day of a Remarketing Period
         and ending, if applicable, at 9:00 a.m., New York City time, on the
         fourth Business Day immediately succeeding the third Business Day of
         such Remarketing Period. Upon receipt of the

                                       27

<PAGE>

         Treasury Securities described in clause (i) above and the instruction
         described in clause (ii) above, in accordance with the terms of the
         Pledge Agreement, the Collateral Agent will release to the Agent, on
         behalf of the Holder, such Pledged Notes from the Pledge, free and
         clear of the Company's security interest therein, and upon receipt
         thereof the Agent shall promptly:

                           (i) cancel the related Equity Security Units;

                           (ii) transfer the Pledged Notes to the Holder; and

                           (iii) authenticate, execute on behalf of such Holder
                  and deliver to such Holder a Stripped Equity Security Unit
                  Certificate executed by the Company in accordance with Section
                  3.3 evidencing (x) the same number of Purchase Contracts as
                  were evidenced by the cancelled Equity Security Units and (y)
                  the amount of Treasury Securities deposited as provided above.

                  (b) Holders who elect to separate the Pledged Notes from the
         related Purchase Contract and to substitute Treasury Securities for
         such Pledged Notes shall be responsible for any fees or expenses
         payable to the Collateral Agent for its services as Collateral Agent in
         respect of the substitution, and the Company shall not be responsible
         for any such fees or expenses.

                  (c) Collateral Substitutions may be made only in integral
         multiples of 40 Equity Security Units.

                  (d) In the event a Holder making a Collateral Substitution
         pursuant to this Section 3.13 fails to effect a book-entry transfer of
         the Equity Security Units or fails to deliver an Equity Security Unit
         Certificate to the Agent after depositing Treasury Securities with the
         Collateral Agent, the Pledged Notes constituting a part of such Equity
         Security Unit and any distributions on such Pledged Notes shall be held
         in the name of the Agent or its nominee in trust for the benefit of
         such Holder, until such Equity Security Units are so transferred or the
         Equity Security Unit Certificate is so delivered, as the case may be,
         or, with respect to an Equity Security Unit Certificate, such Holder
         provides evidence satisfactory to the Company and the Agent that such
         Equity Security Unit Certificate has been destroyed, lost or stolen,
         together with any indemnity that may be required by the Agent and the
         Company.

                  (e) Except as described in this Section 3.13, for so long as
         the Purchase Contract underlying an Equity Security Unit remains in
         effect, such Equity Security Units shall not be separable into its
         constituent parts, and the rights and obligations of the Holder of such
         Equity Security Units in respect of the Note and the Purchase Contract
         comprising such Equity Security Units may be acquired, and may be
         transferred and exchanged, only as an Equity Security Unit.

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<PAGE>

         SECTION 3.14   Reestablishment Of Equity Security Units.

                  (a) Subject to the next succeeding sentence, a Holder of
         Stripped Equity Security Units may reestablish Equity Security Units at
         any time from and after the date of this Agreement and prior to the
         earlier of a successful remarketing of the Notes in accordance with the
         provisions of Section 5.4 hereof or the date, if any, on which the
         Notes are called for redemption by the Company in connection with a Tax
         Event Redemption, by (i) depositing with the Collateral Agent Notes
         having an aggregate principal amount equal to the aggregate principal
         amount at maturity of the Treasury Securities comprising part of the
         Stripped Equity Security Units and (ii) transferring such Stripped
         Equity Security Units to the Agent accompanied by a notice to the
         Agent, substantially in the form of Exhibit D hereto, stating that the
         Holder has transferred the relevant amount of Notes to the Collateral
         Agent and requesting that the Agent instruct the Collateral Agent to
         release the Pledged Treasury Securities underlying such Stripped Equity
         Security Units, whereupon the Agent shall promptly give such
         instruction to the Collateral Agent, substantially in the form of
         Exhibit C hereto. Notwithstanding the foregoing, a Holder may not
         reestablish Equity Security Units during any period beginning after
         5:00 p.m., New York City time, on the fourth Business Day immediately
         preceding the first Business Day of a Remarketing Period and, if
         applicable, ending at 9:00 a.m., New York City time, on the fourth
         business day immediately succeeding the third Business Day of such
         Remarketing Period. Upon receipt of the Notes described in clause (i)
         above and the instruction described in clause (ii) above, in accordance
         with the terms of the Pledge Agreement, the Collateral Agent will
         release to the Agent, on behalf of the Holder, such Pledged Treasury
         Securities from the Pledge, free and clear of the Company's security
         interest therein, and upon receipt thereof the Agent shall promptly:

                           (i) cancel the related Stripped Equity Security
                  Units;

                           (ii) transfer the Pledged Treasury Securities to the
                  Holder; and

                           (iii) authenticate, execute on behalf of such Holder
                  and deliver an Equity Security Unit Certificate executed by
                  the Company in accordance with Section 3.3 evidencing (x) the
                  same number of Purchase Contracts as were evidenced by the
                  cancelled Stripped Equity Security Units and (y) the principal
                  amount of Notes deposited as provided above.

                  (b) Equity Security Units may be reestablished only in
         integral multiples of 40 Stripped Equity Security Units for 40 Equity
         Security Units.

                  (c) Except as provided in this Section 3.14, for so long as
         the Purchase Contract underlying a Stripped Equity Security Unit
         remains in effect, such Stripped Equity Security Unit shall not be
         separable into its constituent parts, and the rights and obligations of
         the Holder of such Stripped Equity Security Unit in respect of the
         Treasury Security and Purchase Contract comprising such Stripped Equity
         Security Unit may be acquired, and may be transferred and exchanged,
         only as a Stripped Equity Security Unit.

                                       29
<PAGE>

                  (d) Holders of Stripped Equity Security Units who reestablish
         Equity Security Units shall be responsible for any fees or expenses
         payable to the Collateral Agent for its services as Collateral Agent in
         respect of the substitution, and the Company shall not be responsible
         for any such fees or expenses.

                  (e) In the event a Holder who reestablishes Equity Security
         Units pursuant to this Section 3.14 fails to effect a book-entry
         transfer of the Stripped Equity Security Units or fails to deliver a
         Stripped Equity Security Unit Certificate to the Agent after depositing
         Pledged Notes with the Collateral Agent, the Treasury Securities
         constituting a part of such Stripped Equity Security Units, and any
         distributions on such Treasury Securities shall be held in the name of
         the Agent or its nominee in trust for the benefit of such Holder, until
         such Stripped Equity Security Units are so transferred or the Stripped
         Equity Security Unit Certificate is so delivered, as the case may be,
         or, with respect to a Stripped Equity Security Unit Certificate, such
         Holder provides evidence satisfactory to the Company and the Agent that
         such Stripped Equity Security Unit Certificate has been destroyed, lost
         or stolen, together with any indemnity that may be required by the
         Agent and the Company.

         SECTION 3.15 Transfer Of Collateral Upon Occurrence Of Termination
Event. Upon the occurrence of a Termination Event and the transfer to the Agent
of the Notes, the appropriate Applicable Ownership Interest in the Treasury
Portfolio or Tax Event Treasury Portfolio underlying the Equity Security Units,
or the Treasury Securities underlying the Stripped Equity Security Units, as the
case may be, pursuant to the terms of the Pledge Agreement, the Agent shall
request transfer instructions with respect to such Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio or Tax Event Treasury
Portfolio, or Treasury Securities, as the case may be, from each Holder by
written request mailed to such Holder at its address as it appears in the Equity
Security Unit Register or the Stripped Equity Security Unit Register, as the
case may be. Upon book-entry transfer of the Equity Security Units or Stripped
Equity Security Units, as the case may be, or delivery of an Equity Security
Unit Certificate or Stripped Equity Security Unit Certificate to the Agent with
such transfer instructions, the Agent shall transfer the Notes, the appropriate
Applicable Ownership Interest in the Treasury Portfolio or Tax Event Treasury
Portfolio underlying such Equity Security Units, or Treasury Securities
underlying the Stripped Equity Security Unit, as the case may be, to such Holder
by book-entry transfer, or other appropriate procedures, in accordance with such
instructions. In the event a Holder of Equity Security Units or Stripped Equity
Security Units fails to effect such transfer or delivery, the Notes, the
appropriate Applicable Ownership Interest in the Treasury Portfolio or Tax
Exempt Treasury Portfolio, as the case may be, underlying such Equity Security
Units, or Treasury Securities underlying such Stripped Equity Security Units, as
the case may be, and any distributions thereon, shall be held in the name of the
Agent or its nominee in trust for the benefit of such Holder, until such Equity
Security Units or Stripped Equity Security Units, as the case may be, are
transferred or the Equity Security Unit Certificate or Stripped Equity Security
Unit Certificate is surrendered or such Holder provides satisfactory evidence
that such Equity Security Unit Certificate or Stripped Equity Security Unit
Certificate has been destroyed, lost or stolen, together with any indemnity that
may be required by the Agent and the Company. In the case of the Treasury
Portfolio, Tax Event Treasury Portfolio or any Treasury Securities, the Agent
may dispose of the subject securities for cash and pay the applicable portion of
such cash to the

                                       30

<PAGE>

Holders in lieu of such Holders' Applicable Ownership Interest in such Treasury
Portfolio or Tax Event Treasury Portfolio, or any Treasury Securities, where
such Holder would otherwise have been entitled to receive less than $1,000 of
any such security.

         SECTION 3.16 No Consent To Assumption. Each Holder of Equity Security
Units or Stripped Equity Security Units, as the case may be, by acceptance
thereof, shall be deemed expressly to have withheld any consent to the
assumption under Section 365 of the Bankruptcy Code or otherwise, of the
Purchase Contract by the Company, any receiver, liquidator or person or entity
performing similar functions or its trustee in the event that the Company
becomes the debtor under the Bankruptcy Code or subject to other similar state
or federal law providing for reorganization or liquidation.

                                   ARTICLE IV.

                                    THE NOTES

         SECTION 4.1 Payment Of Interest; Rights To Interest Payments Preserved;
Notice.

                  (a) A payment on any Note or Applicable Ownership Interest in
         the Treasury Portfolio or Tax Event Treasury Portfolio, as the case may
         be, which is paid on any Payment Date other than a Payment Date with
         respect to the Stated Amount due on the Applicable Ownership Interest
         in the Treasury Portfolio or Tax Event Treasury Portfolio shall,
         subject to receipt thereof by the Agent from the Collateral Agent (if
         the Collateral Agent is the registered owner thereof) as provided by
         the terms of the Pledge Agreement, be paid to the Person in whose name
         the Equity Security Unit Certificate (or one or more Predecessor Equity
         Security Unit Certificates) of which such Note or the appropriate
         Applicable Ownership Interest in the Treasury Portfolio or Tax Event
         Treasury Portfolio, as the case may be, is a part is registered at the
         close of business on the Record Date for such Payment Date.

                  (b) Each Equity Security Unit Certificate evidencing Notes or
         the appropriate Applicable Ownership Interest in the Treasury Portfolio
         or Tax Event Treasury Portfolio, as the case may be, delivered under
         this Agreement upon registration of transfer of or in exchange for or
         in lieu of any other Equity Security Unit Certificate shall carry the
         rights to interest accrued and unpaid, which were carried by the Notes
         or the appropriate Applicable Ownership Interest in the Treasury
         Portfolio or Tax Event Treasury Portfolio, as the case may be,
         underlying such other Equity Security Unit Certificate.

                  (c) In the case of any Equity Security Units with respect to
         which Early Settlement of the underlying Purchase Contract is effected
         on an Early Settlement Date, Merger Early Settlement of the underlying
         Purchase Contract is effected on a Merger Early Settlement Date, Cash
         Settlement is effected on the eighth Business Day immediately preceding
         the Stock Purchase Date, or a Collateral Substitution is effected, in
         each case on a date that is after any Record Date and on or prior to
         the next succeeding Payment Date, payments on the Note or the
         appropriate or Applicable Ownership Interest in the Treasury Portfolio
         or Tax Event Portfolio, as the case may be, underlying such

                                       31

<PAGE>

         Equity Security Units otherwise payable on such Payment Date shall be
         payable on such Payment Date notwithstanding such Early Settlement,
         Merger Early Settlement, Cash Settlement or Collateral Substitution, as
         the case may be, and such payments shall, subject to receipt thereof by
         the Agent, be payable to the Person in whose name the Equity Security
         Unit Certificate (or one or more Predecessor Equity Security Unit
         Certificates) was registered at the close of business on the Record
         Date. Except as otherwise expressly provided in the immediately
         preceding sentence, in the case of any Equity Security Units with
         respect to which Early Settlement, Merger Early Settlement or Cash
         Settlement of the underlying Purchase Contract is effected, or with
         respect to which a Collateral Substitution has been effected, payments
         on the related Notes or payments on the appropriate Applicable
         Ownership Interest in the Treasury Portfolio or Tax Event Treasury
         Portfolio, as the case may be, that would otherwise be payable after
         the applicable Settlement Date or after such Collateral Substitution,
         as the case may be, shall not be payable hereunder to the Holder of
         such Equity Security Units; provided, that to the extent that such
         Holder continues to hold the Separate Notes that formerly comprised a
         part of such Holder's Equity Security Units, such Holder shall be
         entitled to receive the payments on such Separate Notes.

                  (d) By purchasing and accepting the Equity Security Units or
         the Separate Notes, a Holder of the Equity Security Units or a holder
         of the Separate Notes, as the case may be, will be deemed to have
         agreed to treat for all U.S. federal income tax purposes the Notes
         forming a part of such Equity Security Units or the Separate Notes, as
         the case may be, as "contingent payment debt instrument" as the term is
         used in Treasury regulations section 1275-4.

         SECTION 4.2 Notice And Voting. Under the terms of the Pledge Agreement,
the Agent will be entitled to exercise the voting and any other consensual
rights pertaining to the Pledged Notes but only to the extent instructed by the
Holders as described below. Upon receipt of notice of any meeting at which
holders of Notes are entitled to vote or upon any solicitation of consents,
waivers or proxies of holders of Notes, the Agent shall, as soon as practicable
thereafter, mail to the Holders of Equity Security Units a notice (a) containing
such information as is contained in the notice or solicitation, (b) stating that
each Holder on the record date set by the Agent therefor (which, to the extent
possible, shall be the same date as the record date for determining the holders
of Notes entitled to vote) shall be entitled to instruct the Agent as to the
exercise of the voting rights pertaining to the Pledged Notes underlying their
Equity Security Units and (c) stating the manner in which such instructions may
be given. Upon the written request of the Holders of Equity Security Units on
such record date, the Agent shall endeavor insofar as practicable to vote or
cause to be voted, in accordance with the instructions set forth in such
requests, the maximum number of Pledged Notes as to which any particular voting
instructions are received. In the absence of specific instructions from the
Holder of an Equity Security Unit, the Agent shall abstain from voting the
Pledged Note underlying such Equity Security Units. The Company hereby agrees,
if applicable, to solicit Holders of Equity Security Units to timely instruct
the Agent in order to enable the Agent to vote such Pledged Notes.

         SECTION 4.3 Tax Event Redemption. Upon the occurrence of a Tax Event
Redemption prior to the earlier of a successful remarketing of the Notes or the
Stock Purchase

                                       32

<PAGE>

Date, the Company shall instruct the Collateral Agent in writing to apply, and
upon such written instruction the Collateral Agent shall apply, out of the
aggregate Redemption Price for the Notes that are components of Equity Security
Units, an amount equal to the aggregate Redemption Amount for the Notes that are
components of Equity Security Units to purchase on behalf of the Holders of
Equity Security Units the Tax Event Treasury Portfolio and promptly remit the
remaining portion of such Redemption Price to the Agent for payment to the
Holders of such Equity Security Units. The Tax Event Treasury Portfolio will be
substituted for the Pledged Notes, and will be pledged to the Collateral Agent
in accordance with the terms of the Pledge Agreement to secure the obligation of
each Holder of an Equity Security Unit to purchase the Common Stock under the
Purchase Contract constituting a part of such Equity Security Units. Following
the occurrence of a Tax Event Redemption prior to the earlier of a successful
remarketing of the Notes or the Stock Purchase Date, the Holders of Equity
Security Units and the Collateral Agent shall have such security interests,
rights and obligations with respect to the Tax Event Treasury Portfolio as the
Holder of Equity Security Units and the Collateral Agent had in respect of the
Notes, as the case may be, subject to the Pledge thereof as provided in Articles
II, III, IV, V and VI of the Pledge Agreement, and any reference herein or in
the Certificates to the Note shall be deemed to be a reference to such Tax Event
Treasury Portfolio and any reference herein or in the Certificates to interest
on the Notes shall be deemed to be a reference to corresponding distributions on
the Tax Event Treasury Portfolio. The Company may cause to be made in any Equity
Security Unit Certificates thereafter to be issued such change in phraseology
and form (but not in substance) as may be appropriate to reflect the
substitution of the Tax Event Treasury Portfolio for Notes as collateral.

         The Company shall cause notice of any Tax Event Redemption to be
mailed, at least 30 calendar days but not more than 60 calendar days before such
Tax Event Redemption Date, to each Holder of Notes to be redeemed at its
registered address.

         Upon the occurrence of a Tax Event Redemption after the successful
remarketing of the Notes, the Redemption Price will be payable in cash to the
holders of the Notes.

                                   ARTICLE V.

                     THE PURCHASE CONTRACTS; THE REMARKETING

         SECTION 5.1   Purchase Of Shares Of Common Stock.

                  (a) Each Purchase Contract shall, unless an Early Settlement
         has occurred in accordance with Section 5.9, or a Merger Early
         Settlement has occurred in accordance with Section 5.10, obligate the
         Holder of the related Equity Security Units or Stripped Equity Security
         Units, as the case may be, to purchase, and the Company to sell, on the
         Stock Purchase Date at a price equal to $25 (the "Purchase Price"), a
         number of newly issued shares of Common Stock equal to the Settlement
         Rate unless, on or prior to the Stock Purchase Date, there shall have
         occurred a Termination Event with respect to the Equity Security Units
         or Stripped Equity Security Units, as the case may be, of which such
         Purchase Contract is a part. The "Settlement Rate" is equal to,

                                       33

<PAGE>

                           (i) if the Applicable Market Value (as defined below)
                  is greater than or equal to $51.90 (the "Threshold
                  Appreciation Price"), 0.4817 shares of Common Stock per
                  Purchase Contract,

                           (ii) if the Applicable Market Value is less than the
                  Threshold Appreciation Price, but is greater than $43.25 (the
                  "Reference Price"), the number of shares of Common Stock per
                  Purchase Contract equal to the Stated Amount of the related
                  Equity Security Units or Stripped Equity Security Units, as
                  the case may be, divided by the Applicable Market Value, and

                           (iii) if the Applicable Market Value is equal to or
                  less than the Reference Price, 0.5780 shares of Common Stock
                  per Purchase Contract,

         in each case subject to adjustment as provided in Section 5.6 (and in
         each case rounded upward or downward to the nearest 1/10,000th of a
         share). As provided in Section 5.12, no fractional shares of Common
         Stock will be issued upon settlement of Purchase Contracts.

                  (b) No fractional shares of Common Stock will be issued by the
         Company with respect to the payment of Contract Adjustment Payments on
         the Stock Purchase Date. In lieu of fractional shares otherwise
         issuable with respect to such payment of Contract Adjustment Payments,
         the Holder will be entitled to receive an amount in cash as provided in
         Section 5.12.

                  (c) The "Applicable Market Value" means the average of the
         Closing Prices per share of Common Stock on each of the 20 consecutive
         Trading Days ending on the third Trading Day immediately preceding the
         Stock Purchase Date. The "Closing Price" of the Common Stock on any
         date of determination means the closing sale price (or, if no closing
         price is reported, the last reported sale price) of the Common Stock on
         the New York Stock Exchange (the "NYSE") on such date or, if the Common
         Stock is not listed for trading on the NYSE on any such date, as
         reported in the composite transactions for the principal United States
         securities exchange on which the Common Stock is so listed, or if the
         Common Stock is not so listed on a United States national or regional
         securities exchange, as reported by The Nasdaq Stock Market, or, if the
         Common Stock is not so reported, the last quoted bid price for the
         Common Stock in the over-the-counter market as reported by the National
         Quotation Bureau or similar organization, or, if such bid price is not
         available, the market value of the Common Stock on such date as
         determined by a nationally recognized independent investment banking
         firm retained for this purpose by the Company. A "Trading Day" means a
         day on which the Common Stock (A) is not suspended from trading on any
         national or regional securities exchange or association or
         over-the-counter market at the close of business and (B) has traded at
         least once on the national or regional securities exchange or
         association or over-the-counter market that is the primary market for
         the trading of the Common Stock.

                  (d) Each Holder of an Equity Security Unit or Stripped Equity
         Security Unit, as the case may be, by its acceptance thereof,
         irrevocably authorizes the Agent to enter

                                       34
<PAGE>

         into and perform the related Purchase Contract on its behalf as its
         attorney-in-fact (including the execution of Certificates on behalf of
         such Holder), agrees to be bound by the terms and provisions thereof,
         covenants and agrees to perform its obligations under such Purchase
         Contracts, and consents to the provisions hereof, irrevocably
         authorizes the Agent as its attorney-in-fact to enter into and perform
         the Pledge Agreement on its behalf as its attorney-in-fact, and
         consents to and agrees to be bound by the Pledge of the Notes, the
         appropriate Applicable Ownership Interest in the Treasury Portfolio or
         Tax Event Treasury Portfolio, as the case may be, or the Treasury
         Securities, pursuant to the Pledge Agreement; provided that upon a
         Termination Event, the rights of the Holder of such Equity Security
         Units or Stripped Equity Security Units, as the case may be, under the
         Purchase Contract may be enforced without regard to any other rights or
         obligations. Each Holder of an Equity Security Unit or Stripped Equity
         Security Unit, as the case may be, by its acceptance thereof, further
         covenants and agrees, that, to the extent and in the manner provided in
         Section 5.4 and the Pledge Agreement, but subject to the terms thereof,
         payments in respect of the Notes, the appropriate Applicable Ownership
         Interest in the Treasury Portfolio or Tax Event Treasury Portfolio, as
         the case may be, in the case of Holders of Equity Security Units, or
         the Treasury Securities, in the case of Holders of Stripped Equity
         Security Units, to be paid upon settlement of such Holder's obligations
         to purchase Common Stock under the Purchase Contract, shall be paid on
         the Stock Purchase Date by the Collateral Agent to the Company in
         satisfaction of such Holder's obligations under such Purchase Contract.

                  (e) Upon registration of transfer of a Certificate, the
         transferee shall be bound (without the necessity of any other action on
         the part of such transferee) under the terms of this Agreement, the
         Purchase Contracts underlying such Certificate and the Pledge
         Agreement, and the transferor shall be released from the obligations
         under this Agreement, the Purchase Contracts underlying the
         Certificates so transferred and the Pledge Agreement. The Company
         covenants and agrees, and each Holder of a Certificate, by its
         acceptance thereof, likewise covenants and agrees, to be bound by the
         provisions of this paragraph.

         SECTION 5.2 Contract Adjustment Payments.

                  (a) Contract Adjustment Payments shall accrue on each Purchase
         Contract constituting a part of an Equity Security Unit or Stripped
         Equity Security Unit at 4.15% per year of the Stated Amount of such
         Equity Security Units or Stripped Equity Security Units, from and
         including June 25, 2002 through but excluding the Stock Purchase Date,
         provided that no Contract Adjustment Payment shall accrue after an
         Early Settlement or Merger Early Settlement. Subject to Section 5.3
         herein, the Company shall pay, on each Payment Date, the Contract
         Adjustment Payments, if any, payable in respect of each Purchase
         Contract to the Person in whose name a Certificate (or one or more
         Predecessor Certificates) is registered at the close of business on the
         Record Date immediately preceding such Payment Date in such coin or
         currency of the United States as at the time of payment shall be legal
         tender for payments. The Contract Adjustment Payments, if any, will be
         payable at the office in New York, New York, maintained for that
         purpose or, at the option of the Company, by check mailed to the
         address of the
                                       35

<PAGE>

         Person entitled thereto at such Person's address as it appears on the
         Register or by wire transfer to the account designated to the Agent by
         a prior written notice by such Person delivered at least ten Business
         Days prior to the applicable Payment Date.

                  (b) Upon the occurrence of a Termination Event, the Company's
         obligation to pay Contract Adjustment Payments (including any
         accumulated Deferred Contract Adjustment Payments), if any, shall
         cease.

                  (c) Each Certificate delivered under this Agreement upon
         registration of transfer of or in exchange for or in lieu of (including
         as a result of a Collateral Substitution or the re-establishment of an
         Equity Security Unit) any other Certificate shall carry the rights to
         Contract Adjustment Payments, if any, accumulated and unpaid, and to
         accumulate Contract Adjustment Payments, if any, which were carried by
         the Purchase Contracts underlying such other Certificates.

                  (d) Subject to Sections 5.9 and 5.10, in the case of any
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, with respect to which Early Settlement or Merger Early
         Settlement of the underlying Purchase Contract is effected on an Early
         Settlement Date or a Merger Early Settlement Date, respectively, or in
         respect of which Cash Settlement of the underlying Purchase Contract is
         effected on the eighth Business Day immediately preceding the Stock
         Purchase Date, or with respect to which a Collateral Substitution or an
         establishment or re-establishment of an Equity Security Unit pursuant
         to Section 3.13 or Section 3.14 is effected, in each case on a date
         that is after any Record Date and on or prior to the next succeeding
         Payment Date, Contract Adjustment Payments on the Purchase Contract
         underlying such Equity Security Units or Stripped Equity Security
         Units, as the case may be, otherwise payable on such Payment Date shall
         be payable on such Payment Date notwithstanding such Cash Settlement,
         Early Settlement, Merger Early Settlement, Collateral Substitution or
         establishment or re-establishment of Equity Security Units, and such
         Contract Adjustment Payments shall be paid to the Person in whose name
         the Certificate evidencing such Equity Security Units or Stripped
         Equity Security Units (or one or more Predecessor Certificates) is
         registered at the close of business on such Record Date. Except as
         otherwise expressly provided in the immediately preceding sentence, in
         the case of any Equity Security Units or Stripped Equity Security Units
         with respect to which Cash Settlement (in the case of Equity Security
         Units only), Early Settlement or Merger Early Settlement is effected or
         with respect to which a Collateral Substitution or an establishment or
         re-establishment of an Equity Security Unit has been effected, Contract
         Adjustment Payments, if any, that would otherwise be payable after the
         Early Settlement Date, Merger Early Settlement Date, Collateral
         Substitution or such establishment or re-establishment with respect to
         such Purchase Contract shall not be payable.

         SECTION 5.3   Deferral Of Contract Adjustment Payments.

                  (a) The Company shall have the right, at any time prior to the
         Stock Purchase Date, to defer the payment of any or all of the Contract
         Adjustment Payments otherwise payable on any Payment Date, but only if
         the Company shall give the Holders and the

                                       36

<PAGE>

         Agent written notice of its election to defer each such deferred
         Contract Adjustment Payment (specifying the amount to be deferred) at
         least ten Business Days prior to the earlier of (i) the next succeeding
         Payment Date or (ii) the date the Company is required to give notice of
         the Record Date or Payment Date with respect to payment of such
         Contract Adjustment Payments to the NYSE or other applicable
         self-regulatory organization or to Holders of the Equity Security Units
         and Stripped Equity Security Units, but in any event not less than one
         Business Day prior to such Record Date. Any Contract Adjustment
         Payments so deferred shall, to the extent permitted by law, bear
         additional Contract Adjustment Payments thereon at the rate of 8.75%
         per year (computed on the basis of a 360-day year of twelve 30-day
         months), compounding on each succeeding Payment Date, until paid in
         full (such deferred installments of Contract Adjustment Payments, if
         any, together with the additional Contract Adjustment Payments
         accumulated thereon, being referred to herein as the "Deferred Contract
         Adjustment Payments"). Deferred Contract Adjustment Payments, if any,
         shall be due on the next succeeding Payment Date except to the extent
         that payment is deferred pursuant to this Section 5.3. No Contract
         Adjustment Payments may be deferred to a date that is after the Stock
         Purchase Date and no such deferral period may end other than on a
         Payment Date. If the Purchase Contracts are terminated upon the
         occurrence of a Termination Event, the Holder's right to receive
         Contract Adjustment Payments and Deferred Contract Adjustment Payments,
         if any, will terminate. In the event that the Company elects to defer
         Contract Adjustment Payments in part, such deferral shall be pro rata
         in respect of all outstanding Purchase Contracts.

                  (b) In the event that the Company elects to defer the payment
         of Contract Adjustment Payments on the Purchase Contracts until a
         Payment Date prior to the Stock Purchase Date, then all Deferred
         Contract Adjustment Payments, if any, shall be payable to the
         registered Holders as of the close of business on the Record Date
         immediately preceding such Payment Date.

                  (c) In the event that the Company elects to defer the payment
         of Contract Adjustment Payments on the Purchase Contracts until the
         Stock Purchase Date, the Company may elect to pay each Holder on the
         Stock Purchase Date, in lieu of a cash payment, a number of shares of
         Common Stock (in addition to a number of shares of Common Stock equal
         to the Settlement Rate) equal to (A) the aggregate amount of Deferred
         Contract Adjustment Payments payable to such Holder (net of any
         required tax withholding on such Deferred Contract Adjustment Payment,
         which shall be remitted to the appropriate taxing jurisdiction) divided
         by (B) the Applicable Market Value.

                  (d) No fractional shares of Common Stock will be issued by the
         Company with respect to the payment of Deferred Contract Adjustment
         Payments on the Stock Purchase Date. In lieu of fractional shares
         otherwise issuable with respect to such payment of Deferred Contract
         Adjustment Payments, the Holder will be entitled to receive an amount
         in cash as provided in Section 5.12.

                  (e) In the event the Company exercises its option to defer the
         payment of Contract Adjustment Payments then, until the Deferred
         Contract Adjustment Payments have been paid, the Company shall not, and
         shall not permit any subsidiary of the

                                       37

<PAGE>

         Company to, declare or pay dividends on, make distributions with
         respect to, or redeem, purchase or acquire, or make a liquidation
         payment with respect to, any of the Company's Common Stock other than:

                           (i) purchases, redemptions or acquisitions of shares
                  of Common Stock in connection with any employment contract,
                  benefit plan or other similar arrangement with or for the
                  benefit of employees, officers or directors or a stock
                  purchase or dividend reinvestment plan, or the satisfaction by
                  the Company of its obligations pursuant to any contract or
                  security outstanding on the date the Company exercises its
                  right to defer the Contract Adjustment Payments;

                           (ii) as a result of a reclassification of the
                  Company's Capital Stock or the exchange or conversion of one
                  class or series of the Company's Capital Stock for another
                  class or series of the Company's Capital Stock;

                           (iii) the purchase of fractional interests of the
                  Common Stock pursuant to the conversion or exchange provisions
                  of such Common Stock or the security being converted or
                  exchanged;

                           (iv) dividends or distributions payable solely in the
                  Company's Common Stock (or rights to acquire Common Stock) or
                  repurchases, acquisitions or redemptions of Common Stock in
                  connection with the issuance or exchange of the Common Stock
                  (or securities convertible into or exchangeable for shares of
                  the Company's Common Stock); or

                           (v) redemptions, exchanges or repurchases of any
                  rights outstanding under a shareholder rights plan or the
                  declaration or payment thereunder of a dividend or
                  distribution of or with respect to rights in the future.

         SECTION 5.4   Payment Of Purchase Price; Remarketing.

                  (a) Unless a Tax Event Redemption, Termination Event, Merger
         Early Settlement or Early Settlement has occurred, or a remarketing has
         not been successful as of June 30, 2005, each Holder of an Equity
         Security Unit may pay in cash ("Cash Settlement") the Purchase Price
         for the shares of Common Stock to be purchased pursuant to a Purchase
         Contract if such Holder notifies the Agent by use of a notice in
         substantially the form of Exhibit E hereto of its intention to make a
         Cash Settlement. Such notice shall be made not earlier than 9:00 a.m.,
         New York City time, on the tenth Business Day immediately preceding the
         Stock Purchase Date and no later than 5:00 p.m., New York City time, on
         the ninth Business Day immediately preceding the Stock Purchase Date.
         The Agent shall promptly notify the Collateral Agent of the receipt of
         such a notice from a Holder intending to make a Cash Settlement.

                           (i) A Holder of an Equity Security Unit who has so
                  notified the Agent of its intention to make a Cash Settlement
                  is required to pay the Purchase Price to the Collateral Agent
                  prior to 11:00 a.m., New York City time, on the eighth

                                       38

<PAGE>

                  Business Day immediately preceding the Stock Purchase Date in
                  lawful money of the United States by certified or cashiers'
                  check or wire transfer, in each case payable to or upon the
                  order of the Company. Any cash received by the Collateral
                  Agent will be paid to the Company on the Stock Purchase Date
                  in settlement of the Purchase Contract in accordance with the
                  terms of this Agreement and the Pledge Agreement.

                           (ii) If a Holder of an Equity Security Unit fails to
                  notify the Agent of its intention to make a Cash Settlement in
                  accordance with paragraph (a) above, or does notify the Agent
                  as provided in paragraph (a)(i) above of its intention to pay
                  the Purchase Price in cash, but fails to make such payment as
                  required by paragraph (a)(i) above, the Holder shall be deemed
                  to have consented to the disposition of the Pledged Notes
                  pursuant to the remarketing to occur in the Remarketing Period
                  commencing the seventh Business Day immediately preceding the
                  Stock Purchase Date as described in paragraph (b) below.

                  (b) (1) The Company shall engage a nationally recognized
         investment bank (the "Remarketing Agent") pursuant to the Remarketing
         Agreement to be mutually agreed on by the Company, the Agent and the
         Remarketing Agent, but substantially as set forth in Exhibit F hereto,
         to sell the Notes of Holders of Equity Security Units and holders of
         Separate Notes that have elected to participate in the remarketing
         pursuant to the procedures set forth in Section 4.5(d) of the Pledge
         Agreement. On the seventh Business Day immediately preceding the first
         Business Day of any Remarketing Period, the Remarketing Agent shall
         give holders of Separate Notes notice of the remarketing (the form of
         which notice to be provided by the Company) by release of such
         information by means of Bloomberg and Reuters newswire or any
         successor(s) to such service(s). The Agent shall notify, by 10:00 a.m.,
         New York City time, on the third Business Day immediately preceding the
         first Business Day of any Remarketing Period, the Remarketing Agent and
         the Collateral Agent of the aggregate number of Notes of Equity
         Security Unit Holders to be remarketed. On the third Business Day
         immediately preceding the first Business Day of any Remarketing Period,
         no later than by 10:00 a.m. New York City time, pursuant to the terms
         of the Pledge Agreement, the Custodial Agent will notify the
         Remarketing Agent of the aggregate number of Separate Notes to be
         remarketed. On the third Business Day immediately preceding the first
         Business Day of any Remarketing Period, the Collateral Agent and the
         Custodial Agent, pursuant to the terms of the Pledge Agreement, will
         deliver for remarketing to the Remarketing Agent all Notes to be
         remarketed. Upon receipt of such notice from the Custodial Agent and
         such Notes from the Collateral Agent and the Custodial Agent, the
         Remarketing Agent will, on the Remarketing Date and on any Subsequent
         Remarketing Date in accordance with the provisions of Section
         5.4(b)(ii) below, use its commercially reasonable best efforts to (i)
         establish a rate of interest that, in the opinion of the Remarketing
         Agent, will, when applied to the Notes included in the remarketing,
         enable the then current aggregate market value of the Notes to have a
         value equal to approximately, but not less than, 100.50% of the
         Remarketing Value as of the Remarketing Date or as of any Subsequent
         Remarketing Date, as the case may be (the "Reset Rate") and (ii) sell
         such Notes on such date at a price equal to approximately, but not less
         than, 100.50% of the Remarketing Value. The

                                       39

<PAGE>
         Remarketing Agent will deduct as a remarketing fee an amount not
         exceeding 25 basis points (0.25%) of the total proceeds from the
         remarketing (the "Remarketing Fee"). The Remarketing Agent will use the
         remaining proceeds from the successful remarketing to purchase the
         appropriate U.S. Treasury securities (the "Treasury Portfolio") (with
         the CUSIP numbers, if any, selected by the Remarketing Agent) described
         in clauses (i) and (ii) of the definition of Remarketing Value related
         to the Notes of Holders of Equity Security Units that were remarketed.
         On or prior to the third Business Day following the Remarketing Date
         (or in the event that the Notes are not successfully remarketed on the
         Remarketing Date, on or prior to the third Business Day immediately
         following the applicable Subsequent Remarketing Date), the Remarketing
         Agent shall deliver such Treasury Portfolio to the Agent, which shall
         thereupon deliver such Treasury Portfolio to the Collateral Agent. The
         Collateral Agent, for the benefit of the Company, will thereupon apply
         such Treasury Portfolio, in accordance with the Pledge Agreement, to
         secure such Holders' obligations under the Purchase Contracts. The
         Remarketing Agent will remit (1) the portion of the proceeds from the
         remarketing attributable to the Separate Notes to the holders of
         Separate Notes that were remarketed and (2) the remaining portion of
         the proceeds, less those proceeds used to purchase the Treasury
         Portfolio, to the Holders of the Equity Security Units that were
         remarketed, all determined on a pro rata basis, in each case, net of
         the remarketing fee, on or prior to the third Business Day following
         the Remarketing Date (or in the event that the Notes are not
         successfully remarketed on the Remarketing Date, on or prior to the
         third Business Day immediately following the applicable Subsequent
         Remarketing Date for a successful remarketing). Holders whose Notes are
         so remarketed will not otherwise be responsible for the payment of any
         Remarketing Fee in connection therewith.

                           (i) If, in spite of using its commercially reasonable
                  best efforts, the Remarketing Agent cannot establish the Reset
                  Rate and remarket the Notes included in the remarketing at a
                  price equal to approximately, but not less than, 100.50% of
                  the Remarketing Value on the Remarketing Date, the Remarketing
                  Agent will attempt to again establish the Reset Rate and
                  remarket the Notes included in the remarketing at a price
                  equal to approximately, but not less than, 100.50% of the
                  Remarketing Value on each of the two immediately following
                  Business Days. If the Remarketing Agent cannot remarket the
                  Notes included in the remarketing at a price equal to
                  approximately, but not less than, 100.50% of the Remarketing
                  Value on either of those days, it will attempt to establish
                  the Reset Rate and remarket the Notes included in the
                  remarketing at a price equal to approximately, but not less
                  than, 100.50% of the Remarketing Value on each of the three
                  Business Days immediately preceding July 1, 2005. If the
                  Remarketing Agent cannot establish the Reset Rate and remarket
                  the Notes included in the remarketing at a price equal to
                  approximately, but not less than, 100.50% of the Remarketing
                  Value on any of the three Business Days immediately preceding
                  July 1, 2005, the Remarketing Agent will further attempt to
                  establish the Reset Rate and remarket the Notes included in
                  the remarketing at a price equal to approximately, but not
                  less than, 100.50% of the Remarketing Value on each of the
                  seventh, sixth and fifth Business Days immediately preceding
                  the Stock

                                       40
<PAGE>

                  Purchase Date. If the Remarketing Agent cannot establish the
                  Reset Rate and remarket the Notes included in the remarketing
                  at a price equal to approximately, but not less than, 100.50%
                  of the Remarketing Value on any of the Remarketing Date or the
                  two Business Days immediately following the Remarketing Date,
                  on any of the three Business Days immediately preceding July
                  1, 2005 or on the seventh or sixth or fifth Business Day
                  immediately preceding the Stock Purchase Date, the remarketing
                  on each such date will be deemed to have failed (each, a
                  "Failed Remarketing"). In addition, if, in spite of using its
                  commercially reasonable best efforts, the Remarketing Agent
                  fails to remarket the Notes included in the remarketing at
                  100.50% of the Remarketing Value in accordance with the terms
                  of the Pledge Agreement by 4:00 p.m., New York City time, on
                  the last Business Day in a Remarketing Period, a "Last Failed
                  Remarketing" will be deemed to have occurred for that
                  Remarketing Period. Within three Business Days following the
                  date of any Last Failed Remarketing, the Remarketing Agent
                  shall return any Notes delivered to it to the Collateral
                  Agent. In the event of a Last Failed Remarketing on the fifth
                  Business Day immediately preceding the Stock Purchase Date,
                  (1) the Reset Rate on the Notes will be determined as set
                  forth in the Notes and (2) an event of default shall be deemed
                  to have occurred under this Agreement and the Pledge Agreement
                  and in accordance with the terms of the Pledge Agreement, the
                  Collateral Agent, for the benefit of the Company, shall, in
                  respect of the Notes comprising components of Equity Security
                  Units, exercise its rights as a secured party with respect to
                  such Notes, including those actions specified in subsection
                  (b) (iii) below; provided, that if upon a Last Failed
                  Remarketing on the fifth Business Day immediately preceding
                  the Stock Purchase Date, the Collateral Agent delivers a Note
                  to the Company in full satisfaction of the Holder's obligation
                  under the related Purchase Contract, any accrued and unpaid
                  interest on such Note will become payable by the Company to
                  the Agent for payment to the Holder of the Equity Security
                  Units to which such Note relates. Such payment will be made by
                  the Company on or prior to 11:00 a.m., New York City time, on
                  the Stock Purchase Date in lawful money of the United States
                  by certified or cashier's check or wire transfer in
                  immediately available funds payable to or upon the order of
                  the Agent. The Company will cause a notice of any Last Failed
                  Remarketing to be released by means of Bloomberg and Reuters
                  newswire or any successor(s) to such service(s). In addition,
                  the Company will request, not later than seven nor more than
                  15 calendar days prior to any Remarketing Period, that the
                  Depositary notify its participants holding Notes, Equity
                  Security Units or Stripped Equity Security Units, as the case
                  may be, of the remarketing.

                           (ii) With respect to any Notes that constitute part
                  of Equity Security Units that are subject to a Last Failed
                  Remarketing on the fifth Business Day immediately preceding
                  the Stock Purchase Date, the Collateral Agent for the benefit
                  of the Company reserves all of its rights as a secured party
                  with respect thereto and, subject to applicable law and
                  Section 5.4 (e) below, may, among other things, permit the
                  Company to cause the Notes to be sold or to retain and

                                       41
<PAGE>

                  cancel such Notes, in either case, in full satisfaction of the
                  Holders' obligations under the Purchase Contracts.

                  (c) Upon the maturity of the Pledged Treasury Securities
         underlying the Stripped Equity Security Units and the Pledged
         Applicable Ownership Interest in the Treasury Portfolio or the Pledged
         Applicable Ownership Interest in the Tax Event Treasury Portfolio, as
         the case may be, underlying the Equity Security Units on the Stock
         Purchase Date, the Collateral Agent shall remit to the Company an
         amount equal to the aggregate Purchase Price applicable to such Equity
         Security Units and Stripped Equity Security Units, as payment for the
         Common Stock issuable upon settlement thereof without receiving any
         instructions from the Holders of such Equity Security Units and
         Stripped Equity Security Units. In the event the payments in respect of
         the Pledged Treasury Securities, Pledged Applicable Ownership Interest
         in the Treasury Portfolio or Pledged Applicable Ownership Interest in
         the Tax Event Treasury Portfolio underlying Equity Security Units or
         Stripped Equity Security Units, as the case may be, is in excess of the
         Purchase Price of the Purchase Contract being settled thereby, the
         Collateral Agent will distribute such excess to the Agent for the
         benefit of the Holder of such Equity Security Units or Stripped Equity
         Security Units, as the case may be, when received.

                  (d) Any distribution to Holders of excess funds and interest
         described in Section 5.4(b) and (c) above shall be payable at the
         office of the Agent in The City of New York maintained for that purpose
         or, at the option of the Holder or the holder of Separate Notes, as
         applicable, by check mailed to the address of the Person entitled
         thereto at such address as it appears on the Register or by wire
         transfer to an account specified by the Holder or the holder of
         Separate Notes, as applicable.

                  (e) The obligations of each Holder to pay the Purchase Price
         are non-recourse obligations and except to the extent paid by Cash
         Settlement, Early Settlement or Merger Early Settlement, are payable
         solely out of the proceeds of any Collateral pledged to secure the
         obligations of the Holders and in no event will Holders be liable for
         any deficiency between such payments and the Purchase Price.

                  (f) Notwithstanding anything to the contrary herein, the
         Company shall not be obligated to issue any Common Stock in respect of
         a Purchase Contract or deliver any certificates therefor to the Holder
         of the related Equity Security Units or Stripped Equity Security Units,
         as the case may be, unless the Company shall have received payment in
         full for the shares of Common Stock to be purchased thereunder by such
         Holder in the manner herein set forth.

                  (g) In the event of a successful remarketing, the interest
         rate on all of the outstanding Notes (whether or not included in the
         remarketing) shall be adjusted to the Reset Rate.

         SECTION 5.5 Issuance Of Shares Of Common Stock. Unless a Termination
Event shall have occurred on or prior to the Stock Purchase Date or an Early
Settlement or a Merger Early Settlement shall have occurred, on the Stock
Purchase Date, upon its receipt of payment for

                                       42

<PAGE>

the shares of Common Stock purchased by the Holders pursuant to the foregoing
provisions of this Article and subject to Section 5.6, the Company shall issue
and deposit with the Agent, for the benefit of the Holders of the Outstanding
Units, one or more certificates representing the newly issued shares of Common
Stock registered in the name of the Agent (or its nominee) as custodian for the
Holders (such certificates for shares of Common Stock, together with any
dividends or distributions for which a record date and payment date for such
dividend or distribution has occurred after the Stock Purchase Date, being
hereinafter referred to as the "Purchase Contract Settlement Fund") to which the
Holders are entitled hereunder. Subject to the foregoing, upon surrender of a
Certificate to the Agent on or after the Stock Purchase Date, together with
settlement instructions thereon duly completed and executed, the Holder of such
Certificate shall be entitled to receive in exchange therefor a certificate
representing that number of whole shares of Common Stock which such Holder is
entitled to receive pursuant to the provisions of this Article V (after taking
into account all Equity Security Units and Stripped Equity Security Units then
held by such Holder) together with cash in lieu of fractional shares as provided
in Section 5.12 and any dividends or distributions with respect to such shares
constituting part of the Purchase Contract Settlement Fund, but without any
interest thereon, and the Certificate so surrendered shall forthwith be
cancelled. Such shares shall be registered in the name of the Holder or the
Holder's designee as specified in the settlement instructions provided by the
Holder to the Agent. If any shares of Common Stock issued in respect of a
Purchase Contract are to be registered to a Person other than the Person in
whose name the Certificate evidencing such Purchase Contract is registered, no
such registration shall be made unless the Person requesting such registration
has paid any transfer and other taxes required by reason of such registration in
a name other than that of the registered Holder of such Certificate or has
established to the satisfaction of the Company that such tax either has been
paid or is not payable.

         SECTION 5.6 Adjustment Of Settlement Rate.

                  (a) Adjustments for Dividends, Distributions, Stock Splits,
         Etc.

                           (1) Stock Dividends. In case the Company shall pay or
                  make a dividend or other distribution on the Common Stock in
                  Common Stock, the Settlement Rate, as in effect at the opening
                  of business on the day following the date fixed for the
                  determination of stockholders entitled to receive such
                  dividend or other distribution shall be increased by dividing
                  such Settlement Rate by a fraction of which the numerator
                  shall be the number of shares of Common Stock outstanding at
                  the close of business on the date fixed for such determination
                  and the denominator shall be the sum of such number of shares
                  and the total number of shares constituting such dividend or
                  other distribution, such increase to become effective
                  immediately after the opening of business on the day following
                  the date fixed for such determination. For the purposes of
                  this paragraph (1), the number of shares of Common Stock at
                  the time outstanding shall not include shares held in the
                  treasury of the Company but shall include any shares issuable
                  in respect of any scrip certificates issued in lieu of
                  fractions of shares of Common Stock. The Company will not pay
                  any dividend or make any distribution on shares of Common
                  Stock held in the treasury of the Company.

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<PAGE>

                           (2) Stock Purchase Rights. In case the Company shall
                  issue rights, options or warrants to all holders of its Common
                  Stock entitling them to subscribe for or purchase shares of
                  Common Stock at a price per share less than the Current Market
                  Price per share of the Common Stock on the date fixed for the
                  determination of stockholders entitled to receive such rights,
                  options or warrants (other than pursuant to a dividend
                  reinvestment, share purchase or similar plan), the Settlement
                  Rate in effect at the opening of business on the day following
                  the date fixed for such determination shall be increased by
                  dividing such Settlement Rate by a fraction, the numerator of
                  which shall be the number of shares of Common Stock
                  outstanding at the close of business on the date fixed for
                  such determination plus the number of shares of Common Stock
                  which the aggregate of the offering price of the total number
                  of shares of Common Stock so offered for subscription or
                  purchase would purchase at such Current Market Price and the
                  denominator of which shall be the number of shares of Common
                  Stock outstanding at the close of business on the date fixed
                  for such determination plus the number of shares of Common
                  Stock so offered for subscription or purchase, such increase
                  to become effective immediately after the opening of business
                  on the day following the date fixed for such determination.
                  For the purposes of this paragraph (2), the number of shares
                  of Common Stock at any time outstanding shall not include
                  shares held in the treasury of the Company but shall include
                  any shares issuable in respect of any scrip certificates
                  issued in lieu of fractions of shares of Common Stock.

                           (3) Stock Splits; Reverse Splits. In case outstanding
                  shares of Common Stock shall be subdivided or split into a
                  greater number of shares of Common Stock, the Settlement Rate
                  in effect at the opening of business on the day following the
                  day upon which such subdivision or split becomes effective
                  shall be proportionately increased, and, conversely, in case
                  outstanding shares of Common Stock shall each be combined into
                  a smaller number of shares of Common Stock, the Settlement
                  Rate in effect at the opening of business on the day following
                  the day upon which such combination becomes effective shall be
                  proportionately reduced, such increase or reduction, as the
                  case may be, to become effective immediately after the opening
                  of business on the day following the day upon which such
                  subdivision, split or combination becomes effective.

                           (4) Debt or Asset Distributions. (i) In case the
                  Company shall, by dividend or otherwise, distribute to all
                  holders of its Common Stock evidences of its indebtedness,
                  shares of Capital Stock of the Company, securities, cash or
                  other assets (excluding any dividend or distribution covered
                  by clause (1) above or (2) above and any dividend or
                  distribution paid exclusively in cash and any dividend, shares
                  of capital stock of any class or series, or similar equity
                  interests, of or relating to a subsidiary or other business
                  unit in the case of a Spin-Off referred to in the next
                  paragraph), the Settlement Rate shall be adjusted so that the
                  same shall equal the rate determined by dividing the
                  Settlement Rate in effect immediately prior to the close of
                  business on the date fixed for the determination of
                  stockholders entitled to receive such distribution by a
                  fraction, the numerator of

                                       44
<PAGE>

                  which shall be the Current Market Price per share of the
                  Common Stock on the date fixed for such determination less the
                  then fair market value (as determined by the Board of
                  Directors, whose determination shall be conclusive and
                  described in a Board Resolution filed with the Agent) of the
                  portion of the evidences of indebtedness, shares of Capital
                  Stock of the Company, securities, cash or other assets so
                  distributed applicable to one share of Common Stock and the
                  denominator of which shall be such Current Market Price per
                  share of the Common Stock, such adjustment to become effective
                  immediately prior to the opening of business on the day
                  following the date fixed for the determination of stockholders
                  entitled to receive such distribution. In any case in which
                  this paragraph (4) is applicable, paragraph (2) of this
                  Section shall not be applicable.

                                    (ii) In the case of a Spin-Off, the
                           Settlement Rate in effect immediately before the
                           close of business on the record date fixed for
                           determination of stockholders entitled to receive
                           that distribution will be increased by multiplying
                           the Settlement Rate by a fraction, the numerator of
                           which is the Current Market Price per share of the
                           Common Stock plus the Fair Market Value of the
                           portion of those shares of Capital Stock or similar
                           equity interests so distributed applicable to one
                           share of Common Stock and the denominator of which is
                           the Current Market Price per share of the Common
                           Stock. Any adjustment to the settlement rate under
                           this paragraph 4(ii) will occur at the earlier of (1)
                           the tenth Trading Day from, and including, the
                           effective date of the Spin-Off and (2) the date of
                           the securities being offered in the "Initial Public
                           Offering" of the Spin-Off, if that Initial Public
                           Offering is effected simultaneously with the
                           Spin-Off. For purposes of this Section 5.6(a)(4)(ii),
                           the term "Initial Public Offering" means the first
                           time securities of the same class or type as the
                           securities being distributed in the spin-off are
                           offered to the public for cash in a bona fide
                           offering.

                           (5) Cash Distributions. In case the Company shall, by
                  dividend or otherwise, distribute to all holders of its Common
                  Stock cash (excluding any cash that is distributed in a
                  Reorganization Event to which Section 5.6(b) applies or as
                  part of a distribution referred to in paragraph (4) of this
                  Section) (i) in an aggregate amount that, combined together
                  with (ii) the aggregate amount of any other distributions to
                  all holders of its Common Stock made exclusively in cash
                  within the 12 months preceding the date of payment of such
                  distribution and in respect of which no adjustment pursuant to
                  this paragraph (5) or paragraph (6) of this Section has been
                  made and (iii) the aggregate of any cash plus the fair market
                  value as of the date of the expiration of the tender or
                  exchange offer referred to below (as determined by the Board
                  of Directors, whose determination shall be conclusive and
                  described in a Board Resolution) of consideration payable in
                  respect of any tender or exchange offer by the Company or any
                  of its subsidiaries for all or any portion of the Common Stock
                  concluded within the 12 months preceding the date of payment
                  of the distribution described in clause (i) above and in
                  respect of which no adjustment pursuant to this paragraph (5)
                  or paragraph (6)

                                       45
<PAGE>

                  of this Section has been made, exceeds 15% of the product of
                  the Current Market Price per share of the Common Stock on the
                  date for the determination of holders of shares of Common
                  Stock entitled to receive such distribution times the number
                  of shares of Common Stock outstanding on such date, then, and
                  in each such case, immediately after the close of business on
                  such date for determination, the Settlement Rate shall be
                  increased so that the same shall equal the rate determined by
                  dividing the Settlement Rate in effect immediately prior to
                  the close of business on the date fixed for determination of
                  the stockholders entitled to receive such distribution by a
                  fraction (A) the numerator of which shall be equal to the
                  Current Market Price per share of the Common Stock on the date
                  fixed for such determination less an amount equal to the
                  quotient of (x) the combined amount distributed or payable in
                  the transactions described in clauses (i), (ii) and (iii)
                  above and (y) the number of shares of Common Stock outstanding
                  on such date for determination and (B) the denominator of
                  which shall be equal to the Current Market Price per share of
                  the Common Stock on such date for determination.

                           (6) Tender Offers. In case (i) a tender or exchange
                  offer made by the Company or any subsidiary of the Company for
                  all or any portion of the Common Stock shall expire and such
                  tender or exchange offer (as amended upon the expiration
                  thereof) shall require the payment to stockholders (based on
                  the acceptance (up to any maximum specified in the terms of
                  the tender or exchange offer) of Purchased Shares) of an
                  aggregate consideration having a fair market value (as
                  determined by the Board of Directors, whose determination
                  shall be conclusive and described in a Board Resolution) that
                  combined together with (ii) the aggregate of the cash plus the
                  fair market value (as determined by the Board of Directors,
                  whose determination shall be conclusive and described in a
                  Board Resolution), as of the expiration of such tender or
                  exchange offer, of consideration payable in respect of any
                  other tender or exchange offer, by the Company or any
                  subsidiary of the Company for all or any portion of the Common
                  Stock expiring within the 12 months preceding the expiration
                  of such tender or exchange offer and in respect of which no
                  adjustment pursuant to paragraph (5) of this Section or this
                  paragraph (6) has been made and (iii) the aggregate amount of
                  any distributions to all holders of the Company's Common Stock
                  made exclusively in cash within the 12 months preceding the
                  expiration of such tender or exchange offer and in respect of
                  which no adjustment pursuant to paragraph (5) of this Section
                  or this paragraph (6) has been made, exceeds 15% of the
                  product of the Current Market Price per share of the Common
                  Stock as of the last time (the "Expiration Time") tenders
                  could have been made pursuant to such tender or exchange offer
                  (as it may be amended) times the number of shares of Common
                  Stock outstanding (including any tendered shares) on the
                  Expiration Time, then, and in each such case, immediately
                  prior to the opening of business on the day after the date of
                  the Expiration Time, the Settlement Rate shall be adjusted so
                  that the same shall equal the rate determined by dividing the
                  Settlement Rate immediately prior to the close of business on
                  the date of the Expiration Time by a fraction (A) the
                  numerator of which shall be equal to (x) the product of (I)
                  the

                                       46
<PAGE>

                  Current Market Price per share of the Common Stock on the date
                  of the Expiration Time and (II) the number of shares of Common
                  Stock outstanding (including any tendered shares) on the
                  Expiration Time less (y) the amount of cash plus the fair
                  market value (determined as aforesaid) of the aggregate
                  consideration payable to stockholders based on the
                  transactions described in clauses (i), (ii) and (iii) above
                  (assuming in the case of clause (i) the acceptance, up to any
                  maximum specified in the terms of the tender or exchange
                  offer, of Purchased Shares), and (B) the denominator of which
                  shall be equal to the product of (x) the Current Market Price
                  per share of the Common Stock as of the Expiration Time and
                  (y) the number of shares of Common Stock outstanding
                  (including any tendered shares) as of the Expiration Time less
                  the number of all shares validly tendered and not withdrawn as
                  of the Expiration Time (the shares deemed so accepted, up to
                  any such maximum, being referred to as the "Purchased
                  Shares").

                           (7) Reclassification. The reclassification of Common
                  Stock into securities including securities other than Common
                  Stock (other than any reclassification upon a Reorganization
                  Event to which Section 5.6(b) applies) shall be deemed to
                  involve (i) a distribution of such securities other than
                  Common Stock to all holders of Common Stock (and the effective
                  date of such reclassification shall be deemed to be "the date
                  fixed for the determination of stockholders entitled to
                  receive such distribution" and the "date fixed for such
                  determination" within the meaning of paragraph (4) of this
                  Section), and (ii) a subdivision, split or combination, as the
                  case may be, of the number of shares of Common Stock
                  outstanding immediately prior to such reclassification into
                  the number of shares of Common Stock outstanding immediately
                  thereafter (and the effective date of such reclassification
                  shall be deemed to be "the day upon which such subdivision or
                  split becomes effective" or "the day upon which such
                  combination becomes effective," as the case may be, and "the
                  day upon which such subdivision, split or combination becomes
                  effective" within the meaning of paragraph (3) of this
                  Section).

                           (8) "Current Market Price". The "Current Market
                  Price" of the Common Stock means (a) on any day the average of
                  the Sales Prices for the 5 consecutive Trading Days preceding
                  the earlier of the day preceding the day in question and the
                  day before the "ex date" with respect to the issuance or
                  distribution requiring computation, (b) in the case of any
                  Spin-Off that is effected simultaneously with an Initial
                  Public Offering of the securities being distributed in the
                  Spin-Off, the Sale Price of the Common Stock on the Trading
                  Day on which the initial public offering price of the
                  securities being distributed in the Spin-Off is determined,
                  and (c) in the case of any other Spin-Off, the average of the
                  Sale Prices of the Common Stock over the first 10 Trading Days
                  after the effective date of such Spin-Off. For purposes of
                  this paragraph, the term "ex date," when used with respect to
                  any issuance or distribution, shall mean the first date on
                  which the Common Stock trades regular way on such exchange or
                  in such market without the right to receive such issuance or
                  distribution.

                                       47
<PAGE>

                           (9) Calculation of Adjustments. All adjustments to
                  the Settlement Rate shall be calculated to the nearest
                  1/10,000th of a share of Common Stock (or if there is not a
                  nearest 1/10,000th of a share to the next lower 1/10,000th of
                  a share). No adjustment in the Settlement Rate shall be
                  required unless such adjustment would require an increase or
                  decrease of at least one percent therein; provided, that any
                  adjustments which by reason of this subparagraph are not
                  required to be made shall be carried forward and taken into
                  account in any subsequent adjustment. If an adjustment is made
                  to the Settlement Rate pursuant to paragraph (1), (2), (3),
                  (4), (5), (6), (7) or (10) of this Section 5.6(a), an
                  adjustment shall also be made to the Applicable Market Value
                  solely to determine which of clauses (i), (ii) or (iii) of the
                  definition of Settlement Rate in Section 5.1(a) will apply on
                  the Stock Purchase Date. Such adjustment shall be made by
                  multiplying the Applicable Market Value by a fraction, the
                  numerator of which shall be the Settlement Rate immediately
                  after such adjustment pursuant to paragraph (1), (2), (3),
                  (4), (5), (6), (7) or (10) of this Section 5.6(a) and the
                  denominator of which shall be the Settlement Rate immediately
                  before such adjustment; provided, that if such adjustment to
                  the Settlement Rate is required to be made pursuant to the
                  occurrence of any of the events contemplated by paragraph (1),
                  (2), (3), (4), (5), (7) or (10) of this Section 5.6(a) during
                  the period taken into consideration for determining the
                  Applicable Market Value, appropriate and customary adjustments
                  shall be made to the Settlement Rate.

                           (10) Increase of Settlement Rate. The Company may
                  make such increases in the Settlement Rate, in addition to
                  those required by this Section, as it considers to be
                  advisable in order to avoid or diminish any income tax to any
                  holders of shares of Common Stock resulting from any dividend
                  or distribution of stock or issuance of rights or warrants to
                  purchase or subscribe for stock or from any event treated as
                  such for income tax purposes or for any other reasons.

                  (b) Adjustment for Consolidation, Merger or Other
         Reorganization Event. In the event of

                           (1) any consolidation or merger of the Company with
                  or into another Person (other than a merger or consolidation
                  in which the Company is the continuing corporation and in
                  which the Common Stock outstanding immediately prior to the
                  merger or consolidation is not exchanged for cash, securities
                  or other property of the Company or another corporation),

                           (2) any sale, transfer, lease or conveyance to
                  another Person of the property of the Company as an entirety
                  or substantially as an entirety,

                           (3) any statutory exchange of securities of the
                  Company with another Person (other than in connection with a
                  merger or acquisition), or

                           (4) any liquidation, dissolution or winding up of the
                  Company other than as a result of or after the occurrence of a
                  Termination Event

                                       48

<PAGE>

(any such event, a "Reorganization Event"), each share of Common Stock covered
by each Purchase Contract forming a part of an Equity Security Unit or Stripped
Equity Security Unit, as the case may be, immediately prior to such
Reorganization Event shall, after such Reorganization Event, be converted for
purposes of the Purchase Contract into the kind and amount of securities, cash
and other property receivable in such Reorganization Event (without any interest
thereon, and without any right to dividends or distribution thereon which have a
record date that is prior to the Stock Purchase Date) per share of Common Stock
by a holder of Common Stock that (i) is not a Person with which the Company
consolidated or into which the Company merged or which merged into the Company
or to which such sale or transfer was made, as the case may be (any such Person,
a "Constituent Person"), or an Affiliate of a Constituent Person to the extent
such Reorganization Event provides for different treatment of Common Stock held
by Affiliates of the Company and non-Affiliates, and (ii) failed to exercise his
rights of election, if any, as to the kind or amount of securities, cash and
other property receivable upon such Reorganization Event (provided that if the
kind or amount of securities, cash and other property receivable upon such
Reorganization Event is not the same for each share of Common Stock held
immediately prior to such Reorganization Event by other than a Constituent
Person or an Affiliate thereof and in respect of which such rights of election
shall not have been exercised ("Non-electing Share"), then for the purpose of
this Section the kind and amount of securities, cash and other property
receivable upon such Reorganization Event by each Non-electing Share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
Non-electing Shares). On the Stock Purchase Date, the Settlement Rate then in
effect will be applied to the value on the Stock Purchase Date of such
securities, cash or other property.

         In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires the assets of the
Company or, in the event of a liquidation or dissolution of the Company, the
Company or a liquidating trust created in connection therewith, shall execute
and deliver to the Agent an agreement supplemental hereto providing that the
Holder of each Outstanding Unit shall have the rights provided by this Section
5.6. Such supplemental agreement shall provide for adjustments which, for events
subsequent to the effective date of such supplemental agreement, shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section. The above provisions of this Section shall similarly apply to
successive Reorganization Events.

         SECTION 5.7 Notice Of Adjustments And Certain Other Events.

                  (a) Whenever the Settlement Rate is adjusted as herein
         provided, the Company shall:

                           (i) forthwith compute the Settlement Rate and the
                  Applicable Market Value in accordance with Section 5.6 and
                  prepare and transmit to the Agent an Officer's Certificate
                  setting forth the Settlement Rate and the Applicable Market
                  Value, the method of calculation thereof in reasonable detail,
                  and the facts requiring such adjustment and upon which such
                  adjustment is based; and

                           (ii) as soon as practicable following the occurrence
                  of an event that requires an adjustment to the Settlement Rate
                  pursuant to Section 5.6 (or if the

                                       49
<PAGE>

                  Company is not aware of such occurrence, as soon as
                  practicable after becoming so aware), provide a written notice
                  to the Holders of the Equity Security Units and Stripped
                  Equity Security Units of the occurrence of such event and a
                  statement in reasonable detail setting forth the method by
                  which the adjustment to the Settlement Rate and the Applicable
                  Market Value was determined and setting forth the adjusted
                  Settlement Rate and the Applicable Market Value.

                  (b) The Agent shall not at any time be under any duty or
         responsibility to any Holder of Equity Security Units or Stripped
         Equity Security Units to determine whether any facts exist which may
         require any adjustment of the Settlement Rate and the Applicable Market
         Value, or with respect to the nature or extent or calculation of any
         such adjustment when made, or with respect to the method employed in
         making the same. The Agent shall not be accountable with respect to the
         validity or value (or the kind or amount) of any shares of Common
         Stock, or of any securities or property, which may at the time be
         issued or delivered with respect to any Purchase Contract; and the
         Agent makes no representation with respect thereto. The Agent shall not
         be responsible for any failure of the Company to issue, transfer or
         deliver any shares of Common Stock pursuant to a Purchase Contract or
         to comply with any of the duties, responsibilities or covenants of the
         Company contained in this Article.

         SECTION 5.8 Termination Event; Notice. The Purchase Contracts and all
obligations and rights of the Company and the Holders thereunder, including the
rights and obligations of Holders to purchase Common Stock, shall immediately
and automatically terminate, without the necessity of any notice or action by
any Holder, the Agent or the Company, if, on or prior to the Stock Purchase
Date, a Termination Event shall have occurred. Upon and after the occurrence of
a Termination Event, the Equity Security Units shall thereafter represent the
right to receive the Notes or the appropriate Applicable Ownership Interest in
the Treasury Portfolio or Tax Event Treasury Portfolio, as the case may be,
forming a part of such Equity Security Units, and the Stripped Equity Security
Units shall thereafter represent the right to receive the Treasury Securities
forming a part of such Stripped Equity Security Units, in each case in
accordance with the provisions of Section 4.3 of the Pledge Agreement. Upon the
occurrence of a Termination Event, the Company shall promptly but in no event
later than two Business Days thereafter give written notice to the Agent, the
Collateral Agent and to the Holders, at their addresses as they appear in the
Register.

         SECTION 5.9 Early Settlement.

                  (a) Subject to and upon compliance with the provisions of this
         Section 5.9, Purchase Contracts underlying Equity Security Units or
         Stripped Equity Security Units having an aggregate Stated Amount equal
         to $1,000 or an integral multiple thereof, may, at the option of the
         Holder thereof, be settled early ("Early Settlement") not later than
         11:00 a.m., New York City time, on the eleventh Business Day
         immediately preceding the Stock Purchase Date; provided, however, that
         no Holder may effect an Early Settlement during the period starting at
         5:00 p.m., New York City time, on the fourth Business Day immediately
         preceding the first Business Day of any Remarketing Period and ending
         9:00 a.m., New York City time, on the fourth Business Day immediately

                                       50
<PAGE>

         succeeding the third Business Day in such Remarketing Period. In order
         to exercise the right to effect Early Settlement with respect to any
         Purchase Contracts, the Holder of the Certificate evidencing the
         related Equity Security Units or Stripped Equity Security Units, as the
         case may be, shall deliver such Certificate to the Agent at the
         Corporate Trust Office duly endorsed for transfer to the Company or in
         blank with the form of Election to Settle Early on the reverse thereof
         duly completed and accompanied by payment payable to the Company in
         immediately available funds in an amount (the "Early Settlement
         Amount") equal to (A) the product of (i) the Stated Amount of such
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, multiplied by (ii) the number of Purchase Contracts with
         respect to which the Holder has elected to effect Early Settlement,
         plus (B) if such delivery is made with respect to any Purchase
         Contracts during the period from the close of business on any Record
         Date next preceding any Payment Date to the opening of business on such
         Payment Date, an amount equal to the Contract Adjustment Payments, if
         any, payable on such Payment Date with respect to such Purchase
         Contracts; provided that no payment shall be required pursuant to
         clause (B) of this sentence if the Company shall have elected to defer
         the Contract Adjustment Payments that would otherwise be payable on
         such Payment Date. Except as provided in the immediately preceding
         sentence and subject to Section 5.2(d), no payment or adjustment shall
         be made upon Early Settlement of any Purchase Contract on any Contract
         Adjustment Payments accumulated on such Purchase Contract or on account
         of any dividends on the Common Stock issued upon such Early Settlement.
         If the foregoing requirements are first satisfied with respect to
         Purchase Contracts underlying any Equity Security Units or Stripped
         Equity Security Units, as the case may be, at or prior to 5:00 p.m.,
         New York City time, on a Business Day, such day shall be the "Early
         Settlement Date" with respect to such Equity Security Units or Stripped
         Equity Security Units, as the case may be, and if such requirements are
         first satisfied after 5:00 p.m., New York City time, on a Business Day
         or on a day that is not a Business Day, the "Early Settlement Date"
         with respect to such Equity Security Units or Stripped Equity Security
         Units, as the case may be, shall be the next succeeding Business Day.

                  If the Treasury Portfolio or the Tax Event Treasury Portfolio
         has replaced the Notes as a component of the Equity Security Units
         following the occurrence of a successful remarketing of the Notes or a
         Tax Event Redemption Date, respectively, holders of Equity Security
         Units may effect Early Settlement only in multiples of 80,000 Equity
         Security Units.

                  (b) Upon Early Settlement of any Purchase Contract by the
         Holder of the related Equity Security Units or Stripped Equity Security
         Units, as the case may be, the Company shall issue, and the Holder
         shall be entitled to receive, 0.4817 shares of Common Stock on account
         of such Purchase Contract (the "Early Settlement Rate"). The Early
         Settlement Rate shall be adjusted in the same manner and at the same
         time as the Settlement Rate is adjusted. As promptly as practicable
         after Early Settlement of Purchase Contracts in accordance with the
         provisions of this Section 5.9, the Company shall issue and shall
         deliver to the Agent at the Corporate Trust Office a certificate or
         certificates for the full number of shares of Common Stock issuable
         upon such Early

                                       51

<PAGE>

         Settlement together with payment in lieu of any fraction of a share, as
         provided in Section 5.12.

                  (c) No later than the third Business Day after the applicable
         Early Settlement Date the Company shall cause (i) the shares of Common
         Stock issuable upon Early Settlement of Purchase Contracts to be issued
         and delivered, and (ii) the related Pledged Notes or Pledged Applicable
         Ownership Interest in the Treasury Portfolio or Pledged Applicable
         Ownership Interest in the Tax Event Treasury Portfolio, in the case of
         Equity Security Units, or the related Pledged Treasury Securities, in
         the case of Stripped Equity Security Units, to be released from the
         Pledge by the Collateral Agent and transferred, in each case, to the
         Agent for delivery to the Holder thereof or the Holder's designee.

                  (d) Upon Early Settlement of any Purchase Contracts, and
         subject to receipt of shares of Common Stock from the Company and the
         Pledged Notes, Pledged Applicable Ownership Interest in the Treasury
         Portfolio, Pledged Applicable Ownership Interest in the Tax Event
         Treasury Portfolio or Pledged Treasury Securities, as the case may be,
         from the Collateral Agent, as applicable, the Agent shall, in
         accordance with the instructions provided by the Holder thereof on the
         applicable form of Election to Settle Early on the reverse of the
         Certificate evidencing the related Equity Security Units or Stripped
         Equity Security Units, as the case may be, (i) transfer to the Holder
         the Pledged Notes, Pledged Applicable Ownership Interest in the
         Treasury Portfolio, Pledged Applicable Ownership Interest in the Tax
         Event Treasury Portfolio or Pledged Treasury Securities, as the case
         may be, forming a part of such Equity Security Units or Stripped Equity
         Security Units, as the case may be, and (ii) deliver to the Holder a
         certificate or certificates for the full number of shares of Common
         Stock issuable upon such Early Settlement together with payment in lieu
         of any fraction of a share, as provided in Section 5.12.

                  (e) In the event that Early Settlement is effected with
         respect to Purchase Contracts underlying less than all the Equity
         Security Units or Stripped Equity Security Units, as the case may be,
         evidenced by a Certificate, upon such Early Settlement the Company
         shall execute and the Agent shall authenticate, execute and deliver to
         the Holder thereof, at the expense of the Company, a Certificate
         evidencing the Equity Security Units or Stripped Equity Security Units,
         as the case may be, as to which Early Settlement was not effected.

         SECTION 5.10 Early Settlement Upon Merger.

                  (a) In the event of a merger or consolidation of the Company
         of the type described in clause (1) of Section 5.6(b) in which the
         Common Stock outstanding immediately prior to such merger or
         consolidation is exchanged for consideration consisting of at least 30%
         cash or cash equivalents (any such event a "Cash Merger"), then the
         Company (or the successor to the Company hereunder) shall be required
         to offer the Holder of each Equity Security Unit or Stripped Equity
         Security Unit, as the case may be, the right to settle the Purchase
         Contract underlying such Equity Security Units or Stripped Equity
         Security Units, as the case may be, prior to the Stock Purchase Date
         ("Merger Early Settlement") as provided herein. On or before the fifth
         Business Day

                                       52
<PAGE>

         after the consummation of a Cash Merger, the Company or, at the request
         and expense of the Company, the Agent, shall give all Holders notice of
         the occurrence of the Cash Merger and of the right of Merger Early
         Settlement arising as a result thereof. The Company shall also deliver
         a copy of such notice to the Agent and the Collateral Agent.

Each such notice shall contain:

                           (i) the date, which shall be not less than 20 nor
                  more than 30 calendar days after the date of such notice, on
                  which the Merger Early Settlement will be effected (the
                  "Merger Early Settlement Date");

                           (ii) the date, which shall be on or one Business Day
                  prior to the Merger Early Settlement Date, by which the Merger
                  Early Settlement right must be exercised;

                           (iii) the Settlement Rate in effect as a result of
                  such Cash Merger and the kind and amount of securities, cash
                  and other property receivable by the Holder upon settlement of
                  each Purchase Contract pursuant to Section 5.6(b); and

                           (iv) the instructions a Holder must follow to
                  exercise the Merger Early Settlement right.

                  (b) To exercise a Merger Early Settlement right, a Holder
         shall deliver to the Agent at the Corporate Trust Office on or before
         5:00 p.m., New York City time, on the date specified in the notice
         (which date shall be no later than 5:00 p.m., New York City time, on
         the Business Day immediately preceding the Merger Early Settlement
         Date) the Certificate(s) evidencing the Equity Security Units or
         Stripped Equity Security Units, as the case may be, with respect to
         which the Merger Early Settlement right is being exercised duly
         endorsed for transfer to the Company or in blank with the form of
         Election to Settle Early on the reverse thereof duly completed and
         accompanied by payment payable to the Company in the form of a wire
         transfer of immediately available funds or a certified or cashier's
         check in an amount equal to the Early Settlement Amount (the "Merger
         Early Settlement Amount").

                  (c) On the Merger Early Settlement Date, the Company shall
         deliver or cause to be delivered (i) the cash, securities and other
         property to be received by such exercising Holder, equal to the
         Settlement Rate as adjusted pursuant to Section 5.6, in respect of the
         number of Purchase Contracts for which such Merger Early Settlement
         right was exercised, and (ii) the related Pledged Notes, Pledged
         Applicable Ownership Interest in the Treasury Portfolio or Pledged
         Applicable Ownership Interest in the Tax Event Treasury Portfolio, in
         the case of Equity Security Units, or Pledged Treasury Securities, in
         the case of Stripped Equity Security Units, to be released from the
         Pledge by the Collateral Agent and transferred, in each case, to the
         Agent for delivery to the Holder thereof or the Holder's designee. In
         the event a Merger Early Settlement right shall be exercised by a
         Holder in accordance with the terms hereof, all references herein to
         Stock Purchase Date shall be deemed to refer to such Merger Early
         Settlement Date.

                                       53
<PAGE>

                  (d) Upon Merger Early Settlement of any Purchase Contracts,
         and subject to receipt of such net cash, securities or other property
         from the Company and the Pledged Notes, Pledged Applicable Ownership
         Interest in the Treasury Portfolio, Pledged Applicable Ownership
         Interest in the Tax Event Treasury Portfolio or Pledged Treasury
         Securities, as the case may be, from the Collateral Agent, as
         applicable, the Agent shall, in accordance with the instructions
         provided by the Holder thereof on the applicable form of Election to
         Settle Early on the reverse of the Certificate evidencing the related
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, (i) transfer to the Holder the Pledged Notes, Pledged
         Applicable Ownership Interest in the Treasury Portfolio, Pledged
         Applicable Ownership Interest in the Tax Event Treasury Portfolio, or
         Pledged Treasury Securities, as the case may be, forming a part of such
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, and (ii) deliver to the Holder such cash, securities or other
         property issuable upon such Merger Early Settlement together with
         payment in lieu of any fraction of a share, as provided in Section
         5.12.

                  (e) In the event that Merger Early Settlement is effected with
         respect to Purchase Contracts underlying less than all the Equity
         Security Units or Stripped Equity Security Units, as the case may be,
         evidenced by a Certificate, upon such Merger Early Settlement the
         Company (or the successor to the Company hereunder) shall execute and
         the Agent shall authenticate, execute and deliver to the Holder
         thereof, at the expense of the Company, a Certificate evidencing the
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, as to which Merger Early Settlement was not effected.

                  If the Treasury Portfolio or the Tax Event Treasury Portfolio
         has replaced the Notes as a component of the Equity Security Units
         following the occurrence of a successful remarketing of the Notes or a
         Tax Event Redemption Date, respectively, holders of Equity Security
         Units may effect Merger Early Settlement only in multiples of 80,000
         Equity Security Units.

         SECTION 5.11 Charges And Taxes. The Company will pay all stock transfer
and similar taxes attributable to the initial issuance and delivery of the
shares of Common Stock pursuant to the Purchase Contracts and in payment of any
Deferred Contract Adjustment Payments; provided, that the Company shall not be
required to pay any such tax or taxes which may be payable in respect of any
exchange of or substitution for a Certificate evidencing an Equity Security Unit
or Stripped Equity Security Unit, as the case may be, or any issuance of a share
of Common Stock in a name other than that of the registered Holder of a
Certificate surrendered in respect of the Equity Security Units and Stripped
Equity Security Units evidenced thereby, other than in the name of the Agent, as
custodian for such Holder, and the Company shall not be required to issue or
deliver such share certificates or Certificates unless and until the Person or
Persons requesting the transfer or issuance thereof shall have paid to the
Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid or that no such tax is due.

         SECTION 5.12 No Fractional Shares. No fractional shares or scrip
representing fractional shares of Common Stock shall be issued or delivered upon
settlement on the Stock Purchase Date or upon Early Settlement or Merger Early
Settlement of any Purchase Contracts.

                                       54
<PAGE>

If Certificates evidencing more than one Purchase Contract shall be surrendered
for settlement at one time by the same Holder, the number of full shares of
Common Stock which shall be delivered upon settlement shall be computed on the
basis of the aggregate number of Purchase Contracts evidenced by the
Certificates so surrendered. Instead of any fractional share of Common Stock
which would otherwise be deliverable upon settlement of any Purchase Contracts
on the applicable Settlement Date or upon Early Settlement or Merger Early
Settlement, the Company, through the Agent, shall make a cash payment in respect
of such fractional shares in an amount equal to the value of such fractional
shares times the Applicable Market Value. The Company shall provide the Agent
from time to time with sufficient funds to permit the Agent to make all cash
payments required by this Section 5.12 in a timely manner.

         SECTION 5.13 Registration Statement and Prospectus. To permit and
enable the Holders to exercise their rights of Cash Settlement, Early Settlement
or Merger Early Settlement under Section 5.4(a), 5.9 or 5.10, as the case may
be, if and to the extent required by applicable law, regulations or
interpretations in effect at the time in the view of counsel to the Company, the
Company shall use commercially reasonable efforts, (i) to have a registration
statement relating to the Common Stock effective under the Securities Act and
(ii) to furnish a current final prospectus and, if applicable, a final
prospectus supplement, in each case in a form that may be used in connection
with the settlement and delivery of the Common Stock pursuant to such Cash
Settlement, Early Settlement or Merger Early Settlement under Section 5.4(a),
5.9 or 5.10, as applicable. The Company shall also take all such actions as may
(upon advice of counsel to the Company) be necessary or desirable under state
securities or blue sky laws in connection with any such Cash Settlement, Early
Settlement or Merger Early Settlement under Section 5.4(a), 5.9 or 5.10, as
applicable. The Company shall pay all expenses relating thereto.

                                   ARTICLE VI.

                                    REMEDIES

         SECTION 6.1 Unconditional Right Of Holders To Purchase Common Stock.
The Holder of any Equity Security Units or Stripped Equity Security Units, as
the case may be, shall have the right, which is absolute and unconditional,

                  (a) subject to the right of the Company to defer payment
         thereof pursuant to Section 5.3, and to the forfeiture of any Deferred
         Contract Adjustment Payments upon Early Settlement pursuant to Section
         5.9(a) or upon Merger Early Settlement pursuant to Section 5.10 or upon
         the occurrence of a Termination Event, to receive payment of each
         installment of the Contract Adjustment Payments, if any, with respect
         to the Purchase Contract constituting a part of such Equity Security
         Units or Stripped Equity Security Units, as the case may be, on the
         respective Payment Date for such Equity Security Units or Stripped
         Equity Security Units, as the case may be, and

                  (b) to purchase Common Stock pursuant to the Purchase Contract
         constituting a part of such Equity Security Units or Stripped Equity
         Security Units and to institute suit for the enforcement of any such
         right to purchase Common Stock, and such rights shall not be impaired
         without the consent of such Holder.

                                       55
<PAGE>

         SECTION 6.2 Restoration Of Rights And Remedies. If any Holder has
instituted any proceeding to enforce any right or remedy under this Agreement
and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company and such Holder shall be
restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of such Holder shall continue as though no
such proceeding had been instituted.

         SECTION 6.3 Rights And Remedies Cumulative. Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Certificates in the last paragraph of Section 3.10, no right or
remedy herein conferred upon or reserved to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

         SECTION 6.4 Delay or Omission Not Waiver. No delay or omission of any
Holder to exercise any right or remedy upon a default shall impair any such
right or remedy or constitute a waiver of any such right. Every right and remedy
given by this Article or by law to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by such Holders.

         SECTION 6.5 Undertaking For Costs. All parties to this Agreement agree,
and each Holder of an Equity Security Unit or Stripped Equity Security Unit, as
the case may be, by its acceptance of such Equity Security Units or Stripped
Equity Security Units, as the case may be, shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Agreement, or in any suit against the Agent for any
action taken, suffered or omitted by it as Agent, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
provided that the provisions of this Section shall not apply to any suit
instituted by the Company, to any suit instituted by the Agent, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% of the Outstanding Units, or to any suit instituted by any Holder for
the enforcement of distributions on any Notes on any Purchase Contract on or
after the respective Payment Date therefor in respect of any Equity Security
Units or Stripped Equity Security Units, as the case may be, held by such
Holder, or for enforcement of the right to purchase shares of Common Stock under
the Purchase Contract constituting part of any Equity Security Units or Stripped
Equity Security Units, as the case may be, held by such Holder.

         SECTION 6.6 Waiver Of Stay Or Extension Laws. The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Agreement; and
the Company (to the extent that it may lawfully do so)

                                       56
<PAGE>

hereby expressly waives all benefit or advantage of any such law, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

                                  ARTICLE VII.

                                    THE AGENT

         SECTION 7.1 Certain Duties, Rights And Immunities.

                  (a) The Agent shall act as agent for the Holders of the Equity
         Security Units and Stripped Equity Security Units hereunder with such
         powers as are specifically vested in the Agent by the terms of this
         Agreement, the Pledge Agreement, the Remarketing Agreement, the Notes
         and the Equity Security Units and Stripped Equity Security Units, and
         any documents evidencing thereof or related thereto (the "Transaction
         Documents"), together with such other powers as are reasonably
         incidental thereto. The Agent:

                           (1) shall have no duties or responsibilities except
                  those expressly set forth in the Transaction Documents and no
                  implied covenants or obligations shall be inferred from any
                  Transaction Documents against the Agent, nor shall the Agent
                  be bound by the provisions of any agreement by any party
                  hereto beyond the specific terms hereof;

                           (2) shall be entitled conclusively to rely upon (x)
                  any certification, order, judgment, opinion, notice or other
                  communication (including, without limitation, any thereof by
                  telephone or facsimile) reasonably believed by it to be
                  genuine and correct and to have been signed or sent by or on
                  behalf of the proper Person or Persons (without being required
                  to determine the correctness of any fact stated therein), (y)
                  the truth of the statements and the correctness of the
                  opinions expressed therein and (z) advice and statements of
                  legal counsel and other experts selected by the Agent;

                           (3) as to any matters not expressly provided for by
                  any Transaction Document, shall in all cases be fully
                  protected in acting, or in refraining from acting, hereunder
                  or thereunder in accordance with instructions given by the
                  Company or the Holders in accordance with the Transaction
                  Documents;

                           (4) shall not be responsible for any recitals
                  contained in any Transaction Document, or in any certificate
                  or other document referred to or provided for in, or received
                  by it under, any Transaction Document or the Equity Security
                  Units or Stripped Equity Security Units, or for the value,
                  validity, effectiveness, genuineness, enforceability or
                  sufficiency of any Transaction Document (other than as against
                  the Agent) or the Equity Security Units or Stripped Equity
                  Security Units or any other document referred to or provided
                  for herein or therein or for any failure by the Company, any
                  Holder or any other Person (except the Agent) to perform any
                  of its obligations hereunder or thereunder or for the
                  perfection, priority or, except as expressly required hereby,

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<PAGE>

                  existence, validity, perfection or maintenance of any security
                  interest created under the Pledge Agreement, or for the use or
                  application by the Company of the proceeds in respect of the
                  Purchase Contracts;

                           (5) shall not be required to initiate or conduct any
                  litigation or collection proceedings hereunder;

                           (6) shall not be responsible for any action taken or
                  omitted to be taken by it hereunder or under any other
                  document or instrument referred to or provided for herein or
                  in connection herewith or therewith, except for its own gross
                  negligence, bad faith or willful misconduct; and

                           (7) shall not be required to advise any party as to
                  selling or retaining, or taking or refraining from taking any
                  action with respect to, the Equity Security Units or Stripped
                  Equity Security Units or other rights under any Transaction
                  Document.

                  (b) No provision of any Transaction Document shall be
         construed to relieve the Agent from liability for its own negligent
         action, its own negligent failure to act, its own bad faith, or its own
         willful misconduct, except that:

                           (1) this paragraph (b) shall not be construed to
                  limit the effect of paragraph (a) of this Section;

                           (2) the Agent shall not be liable for any error of
                  judgment made in good faith by a Responsible Officer, unless
                  it shall be proved that the Agent was grossly negligent in
                  ascertaining the pertinent facts; and

                           (3) in no event shall the Agent be required to expend
                  or risk its own funds or otherwise incur any financial
                  liability in the performance of any of its duties hereunder.

                  (c) In no event shall the Agent or its officers, employees or
         agents be liable for any special, indirect, individual, punitive or
         consequential loss or damages, lost profits or loss of business,
         arising in connection with any Transaction Document, whether or not the
         likelihood of such loss or damage was known to the Agent, and
         regardless of the form of action.

                  (d) Whether or not therein expressly so provided, every
         provision of every Transaction Document relating to the conduct or
         affecting the liability of or affording protection to the Agent shall
         be subject to the provisions of this Section.

                  (e) The Agent is authorized to execute and deliver the Pledge
         Agreement and the Remarketing Agreement and any supplement thereto in
         its capacity as Agent.

                  (f) The Agent shall have no liability whatsoever for the
         action or inaction of any Clearing Agency or any book-entry system
         thereof. In no event shall any Clearing

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<PAGE>

         Agency or any book-entry system thereof be deemed an agent or
         subcustodian of the Agent.

                  (g) The Agent shall not be responsible or liable for any
         failure or delay in the performance of its obligations under any
         Transaction Document arising out of or caused, directly or indirectly,
         by circumstances beyond its reasonable control, including, without
         limitation, acts of God; acts of terrorism; earthquakes; fires; floods;
         wars; civil or military disturbances; sabotage; epidemics; riots;
         interruptions, loss or malfunctions of utilities, computer (hardware or
         software) or communications service; accidents; labor disputes; acts of
         civil or military authority; governmental actions; or inability to
         obtain labor, material, equipment or transportation.

         SECTION 7.2 Notice Of Default. Within 30 days after the occurrence of
any default by the Company hereunder of which a Responsible Officer of the Agent
has actual knowledge, the Agent shall transmit by mail to the Company and the
Holders of Equity Security Units and Stripped Equity Security Units, as their
names and addresses appear in the Register, notice of such default hereunder,
unless such default shall have been cured or waived.

         SECTION 7.3 Certain Rights Of Agent. Subject to the provisions of
Section 7.1:

                  (a) request or direction of the Company mentioned herein shall
         be sufficiently evidenced by an Officer's Certificate, Issuer Order or
         Issuer Request, and any resolution of the Board of Directors of the
         Company may be sufficiently evidenced by a Board Resolution;

                  (b) whenever in the administration of this Agreement the Agent
         shall deem it desirable that a matter be proved or established prior to
         taking, suffering or omitting any action hereunder, the Agent (unless
         other evidence be herein specifically prescribed) may, in the absence
         of bad faith on its part, rely upon an Officer's Certificate of the
         Company;

                  (c) the Agent may consult with counsel and the advice of such
         counsel or any Opinion of Counsel shall be full and complete
         authorization and protection in respect of any action taken, suffered
         or omitted by it hereunder in good faith and in reliance thereon;

                  (d) the Agent shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note, other evidence of indebtedness
         or other paper or document, but the Agent, in its discretion, may make
         reasonable further inquiry or investigation into such facts or matters
         related to the execution, delivery and performance of the Purchase
         Contracts as it may see fit, and, if the Agent shall determine to make
         such further inquiry or investigation, it shall be given a reasonable
         opportunity to examine the books, records and premises of the Company,
         personally or by agent or attorney; and

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<PAGE>

                  (e) the Agent may execute any of the powers hereunder or
         perform any duties hereunder either directly or by or through agents or
         attorneys or an Affiliate of the Agent and the Agent shall not be
         responsible for any misconduct or negligence on the part of any agent
         or attorney or an Affiliate appointed with due care by it hereunder.

         SECTION 7.4 Not Responsible For Recitals, Etc. The recitals contained
herein and in the Certificates shall be taken as the statements of the Company.

         SECTION 7.5 May Hold Equity Security Units and Stripped Equity Security
Units And Other Dealings. Any Registrar or any other agent of the Company, or
the Agent and its Affiliates, in their individual or any other capacity, may
become the owner or pledgee of Equity Security Units or Stripped Equity Security
Units, as the case may be, and may otherwise deal with the Company, the
Collateral Agent or any other Person with the same rights it would have if it
were not Registrar or such other agent, or the Agent. The Agent and its
Affiliates may (without having to account therefor to the Company or any Holder
of Equity Security Units or Stripped Equity Security Units or holder of Separate
Notes) accept deposits from, lend money to, make their investments in and
generally engage in any kind of banking, trust or other business with the
Company, any Holder of Equity Security Units or Stripped Equity Security Units
and any holder of Separate Notes (and any of their respective subsidiaries or
Affiliates) as if it were not acting as the Agent and the Agent and their
Affiliates may accept fees and other consideration from the Company, any Holder
of Equity Security Units or Stripped Equity Security Units or any holder of
Separate Notes without having to account for the same to any such Person.

         SECTION 7.6 Money Held In Custody. Money held by the Agent in custody
hereunder need not be segregated from the Agent's other funds except to the
extent required by law or provided herein. The Agent shall be under no
obligation to invest or pay interest on any money received by it hereunder
except as otherwise agreed in writing with the Company.

         SECTION 7.7   Compensation And Reimbursement.  The Company agrees:

                  (a) to pay to the Agent from time to time compensation for all
         services rendered by it hereunder or under the Transaction Documents as
         shall be agreed in writing from time to time between the Company and
         the Agent;

                  (b) to reimburse the Agent upon its request for all reasonable
         expenses, disbursements and advances incurred or made by the Agent in
         accordance with any provision of this Agreement or the Transaction
         Documents (including the reasonable compensation and the reasonable
         expenses and disbursements of its agents and counsel), except any such
         expense, disbursement or advance as shall have been caused by its own
         negligence, willful misconduct or bad faith; and

         (c) to fully indemnify the Agent and any predecessor Agent for, and to
         hold it harmless against, any and all loss, liability, claim, damage or
         reasonable out-of-pocket expense incurred without gross negligence,
         willful misconduct or bad faith on its part, arising out of or in
         connection with the acceptance or administration of its duties under
         the Transaction Documents, including the costs and expenses (including
         reasonable fees

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<PAGE>

         and expenses of counsel) of defending itself against any claim or
         liability in connection with the exercise or performance of any of its
         powers or duties under the Transaction Documents. The Agent shall
         promptly notify the Company of any third party claim which may give
         rise to the indemnity hereunder and give the Company the opportunity to
         participate in the defense of such claim with counsel reasonably
         satisfactory to the indemnified party, and no such claim shall be
         settled without the written consent of the Company, which consent shall
         not be unreasonably withheld, provided that any failure to give any
         such notice shall not affect the obligation of the Company under this
         Section.

The provisions of this Section 7.7 shall survive the termination of this
Agreement or the resignation or removal of the Agent.

         SECTION 7.8 Corporate Agent Required; Eligibility. There shall at all
times be an Agent hereunder which shall be a Corporation organized and doing
business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to exercise corporate trust
powers, having (or being a member of a bank holding company having) a combined
capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and having a Corporate Trust Office in
the Borough of Manhattan, The City of New York, if there be such a Corporation,
qualified and eligible under this Article and willing to act on reasonable
terms. If such Corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Agent shall cease to be eligible in accordance with the provisions
of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

         SECTION 7.9   Resignation And Removal; Appointment Of Successor.

                  (a) No resignation or removal of the Agent and no appointment
         of a successor Agent pursuant to this Article shall become effective
         until the acceptance of appointment by the successor Agent in
         accordance with the applicable requirements of Section 7.10.

                  (b) The Agent may resign at any time by giving written notice
         thereof to the Company 60 days prior to the effective date of such
         resignation. If the instrument of acceptance by a successor Agent
         required by Section 7.10 shall not have been delivered to the Agent
         within 30 days after the giving of such notice of resignation, the
         resigning Agent may petition at the expense of the Company any court of
         competent jurisdiction for the appointment of a successor Agent.

                  (c) The Agent may be removed at any time by Act of the Holders
         of a majority in number of the Outstanding Units delivered to the Agent
         and the Company. If the instrument of acceptance by a successor Agent
         required by Section 7.10 shall not have been delivered to the Agent
         within 30 days after the giving of such notice of resignation,

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<PAGE>

         the Holders or the resigning Agent may petition any court of competent
         jurisdiction for the appointment of a successor Agent.

                  (d)   If at any time:

                           (1) the Agent fails to comply with Section 310(b) of
                  the TIA, as if the Agent were a trustee under an indenture
                  qualified under the TIA, after written request therefor by the
                  Company or by any Holder who has been a bona fide Holder of an
                  Equity Security Unit or Stripped Equity Security Unit for at
                  least six months; or

                           (2) the Agent shall cease to be eligible under
                  Section 7.8 and shall fail to resign after written request
                  therefor by the Company or by any such Holder; or

                           (3) the Agent shall become incapable of acting or
                  shall be adjudged a bankrupt or insolvent or a receiver of the
                  Agent or of its property shall be appointed or any public
                  officer shall take charge or control of the Agent or of its
                  property or affairs for the purpose of rehabilitation,
                  conservation or liquidation;

then, in any such case, (x) the Company by a Board Resolution may remove the
Agent, or (y) any Holder who has been a bona fide Holder of an Equity Security
Unit or Stripped Equity Security Unit for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Agent and the appointment of a successor
Agent.

                  (e) If the Agent shall resign, be removed or become incapable
         of acting, or if a vacancy shall occur in the office of Agent for any
         cause, the Company, by a Board Resolution, shall promptly appoint a
         successor Agent and shall comply with the applicable requirements of
         Section 7.10. If no successor Agent shall have been so appointed by the
         Company and accepted appointment in the manner required by Section
         7.10, any Holder who has been a bona fide Holder of an Equity Security
         Unit or Stripped Equity Security Unit for at least six months may, on
         behalf of himself and all others similarly situated, petition any court
         of competent jurisdiction for the appointment of a successor Agent.

                  (f) Company shall give, or shall cause such successor Agent to
         give, notice of each resignation and each removal of the Agent and each
         appointment of a successor Agent by mailing written notice of such
         event by first-class mail, postage prepaid, to all Holders as their
         names and addresses appear in the applicable Register. Each notice
         shall include the name of the successor Agent and the address of its
         Corporate Trust Office.

         SECTION 7.10   Acceptance Of Appointment By Successor.

                  (a) In case of the appointment hereunder of a successor Agent,
         every such successor Agent so appointed shall execute, acknowledge and
         deliver to the Company and to the retiring Agent an instrument
         accepting such appointment, and thereupon the resignation or removal of
         the retiring Agent shall become effective and such successor

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<PAGE>

         Agent, without any further act, deed or conveyance, shall become vested
         with all the rights, powers, agencies and duties of the retiring Agent;
         but, on the request of the Company or the successor Agent, such
         retiring Agent shall, upon payment of its charges pursuant to Section
         7.7, execute and deliver an instrument transferring to such successor
         Agent all the rights, powers and trusts of the retiring Agent and duly
         assign, transfer and deliver to such successor Agent all property and
         money held by such retiring Agent hereunder.

                  (b) Upon request of any such successor Agent, the Company
         shall execute any and all instruments for more fully and certainly
         vesting in and confirming to such successor Agent all such rights,
         powers and agencies referred to in paragraph (a) of this Section.

                  (c) No successor Agent shall accept its appointment unless at
         the time of such acceptance such successor Agent shall be qualified and
         eligible under this Article.

         SECTION 7.11 Merger, Conversion, Consolidation Or Succession To
Business. Any Corporation into which the Agent may be merged or converted or
with which it may be consolidated, or any Corporation resulting from any merger,
conversion or consolidation to which the Agent shall be a party, or any
Corporation succeeding to all or substantially all the corporate trust business
of the Agent, shall be the successor of the Agent hereunder, provided such
Corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Certificates shall have been
authenticated and executed on behalf of the Holders, but not delivered, by the
Agent then in office, any successor by merger, conversion or consolidation to
such Agent shall adopt such authentication and execution and deliver the
Certificates so authenticated and executed with the same effect as if such
successor Agent had itself authenticated and executed such Equity Security Units
and Stripped Equity Security Units.

         SECTION 7.12   Preservation Of Information; Communications To Holders.

                  (a) The Agent shall preserve, in as current a form as is
         reasonably practicable, the names and addresses of Holders received by
         the Agent in its capacity as Registrar.

                  (b) If three or more Holders (herein referred to as
         "Applicants") apply in writing to the Agent, and furnish to the Agent
         reasonable proof that each such applicant has owned an Equity Security
         Unit or Stripped Equity Security Unit, as the case may be, for a period
         of at least six months preceding the date of such application, and such
         application states that the applicants desire to communicate with other
         Holders with respect to their rights under this Agreement or under the
         Equity Security Units or Stripped Equity Security Units, as the case
         may be, and is accompanied by a copy of the form of proxy or other
         communication which such applicants propose to transmit, then the Agent
         shall mail to all the Holders copies of the form of proxy or other
         communication which is specified in such request, with reasonable
         promptness after a tender to the Agent of the materials to be mailed
         and of payment, or provision, in the absence of bad faith, satisfactory
         to the Agent for the payment, of the reasonable expenses of such
         mailing.

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<PAGE>

         SECTION 7.13 Failure to Act. In the event of any ambiguity in the
provisions of any Transaction Document or any dispute between or conflicting
claims by or among the parties hereto or any other Person, the Agent shall be
entitled, after prompt notice to the Company and the Holders of Equity Security
Units and Stripped Equity Security Units, at its sole option, to refuse to
comply with any and all such claims, demands or instructions so long as such
dispute or conflict shall continue, and the Agent shall not be or become liable
in any way to any of the parties hereto for its failure or refusal to comply
with such conflicting claims, demands or instructions. The Agent shall be
entitled to refuse to act until either (i) such conflicting or adverse claims or
demands shall have been finally determined by a court of competent jurisdiction
or settled by agreement between the conflicting parties as evidenced in a
writing, reasonably satisfactory to the Agent, or (ii) the Agent shall have
received security or an indemnity reasonably satisfactory to the Agent
sufficient to save the Agent harmless from and against any and all loss,
liability or reasonable out-of-pocket expense which the Agent may incur by
reason of its acting without bad faith, willful misconduct or gross negligence.
The Agent may in addition elect to commence an interpleader action or seek other
judicial relief or orders as the Agent may deem necessary. Notwithstanding
anything contained herein to the contrary, the Agent shall not be required to
take any action that is in its opinion contrary to law or to the terms of any
Transaction Document, or which would in its opinion subject it or any of its
officers, employees or directors to liability.

         SECTION 7.14 No Obligations Of Agent. Except to the extent otherwise
provided in this Agreement, the Agent assumes no obligation and shall not be
subject to any liability under this Agreement, the Pledge Agreement or any
Purchase Contract in respect of the obligations of the Holder of any Equity
Security Units or Stripped Equity Security Units thereunder. The Company agrees,
and each Holder of a Certificate, by such Holder's acceptance thereof, shall be
deemed to have agreed, that the Agent's execution of the Certificates on behalf
of the Holders shall be solely as agent and attorney-in-fact for the Holders,
and that the Agent shall have no obligation to perform such Purchase Contracts
on behalf of the Holders, except to the extent expressly provided in Article V.

         SECTION 7.15   Tax Compliance.

                  (a) The Agent, on its own behalf and on behalf of the Company,
         will comply with all applicable certification, information reporting
         and withholding (including "backup" withholding) requirements imposed
         on it as a paying agent by applicable tax laws, regulations or
         administrative practice with respect to any payments made with respect
         to the Equity Security Units and Stripped Equity Security Units.

                  (b) The Agent shall comply with any reasonable written
         direction timely received from the Company with respect to the
         application of such requirements to particular payments or Holders or
         in other particular circumstances, and may for purposes of this
         Agreement rely on any such direction in accordance with the provisions
         of Section 7.1(a)(2).

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<PAGE>

                  (c) The Agent shall maintain all appropriate records
         documenting compliance with such requirements, and shall make such
         records available, on written request, to the Company or its authorized
         representative within a reasonable period of time after receipt of such
         request.

                                  ARTICLE VIII.

                             SUPPLEMENTAL AGREEMENTS

         SECTION 8.1 Supplemental Agreements Without Consent Of Holders. Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Agent, at any time and from time to time, may enter into one or more
agreements supplemental hereto, in form satisfactory to the Company and the
Agent, for any of the following purposes:

                  (a) to evidence the succession of another Person to the
         Company, and the assumption by any such successor of the covenants of
         the Company herein and in the Certificates; or

                  (b) to add to the covenants of the Company for the benefit of
         the Holders, or to surrender any right or power herein conferred upon
         the Company; or

                  (c) to evidence and provide for the acceptance of appointment
         hereunder by a successor Agent; or

                  (d) to make provision with respect to the rights of Holders
         pursuant to the requirements of Section 5.6(b) or 5.10; or

                  (e) to cure any ambiguity, to correct or supplement any
         provisions herein which may be inconsistent with any other provisions
         herein, or to make any other provisions with respect to such matters or
         questions arising under this Agreement, provided such action shall not
         adversely affect the interests of the Holders.

         SECTION 8.2   Supplemental Agreements With Consent Of Holders.

                  (a) With the consent of the Holders of not less than a
         majority of the outstanding Equity Security Units and Stripped Equity
         Security Units voting together as one class, by Act of said Holders
         delivered to the Company and the Agent, the Company, when authorized by
         a Board Resolution, and the Agent may enter into an agreement or
         agreements supplemental hereto, in form satisfactory to the Company and
         the Agent, for the purpose of modifying in any manner the terms of the
         Purchase Contracts, or the provisions of this Agreement or the rights
         of the Holders in respect of the Equity Security Units and Stripped
         Equity Security Units; provided, that, except as contemplated herein,
         no such supplemental agreement shall, without the consent of the Holder
         of each Outstanding Unit affected thereby:

                           (1)   change any Payment Date;

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<PAGE>

                           (2) change the amount or the type of Collateral
                  required to be Pledged to secure a Holder's Obligations under
                  the Purchase Contract, impair the right of the Holder of any
                  Purchase Contract to receive distributions on the related
                  Collateral (except for the rights of Holders of Equity
                  Security Units to substitute the Treasury Securities for the
                  Pledged Notes, Pledged Applicable Ownership Interest in the
                  Treasury Portfolio or Pledged Applicable Ownership Interest in
                  the Tax Event Treasury Portfolio, or the rights of holders of
                  Stripped Equity Security Units to substitute Notes for the
                  Pledged Treasury Securities) or otherwise adversely affect the
                  Holder's rights in or to such Collateral or materially
                  adversely alter the rights in or to such Collateral;

                           (3) reduce any Contract Adjustment Payments, if any,
                  or any Deferred Contract Adjustment Payment, or change any
                  place where, or the coin or currency in which, any Contract
                  Adjustment Payment is payable;

                           (4) impair the right to institute suit for the
                  enforcement of any Purchase Contract, any Contract Adjustment
                  Payment, if any, or any Deferred Contract Adjustment Payment,
                  if any;

                           (5) reduce the number of shares of Common Stock to be
                  purchased pursuant to any Purchase Contract, increase the
                  price to purchase shares of Common Stock upon settlement of
                  any Purchase Contract, change the Stock Purchase Date or
                  otherwise materially adversely affect the Holder's rights
                  under any Purchase Contract; or

                           (6) reduce the percentage of the outstanding Purchase
                  Contracts the consent of whose Holders is required for any
                  such supplemental agreement;

         provided, that if any amendment or proposal referred to above would
         adversely affect only the Equity Security Units or the Stripped Equity
         Security Units, then only the affected class of Holder as of the record
         date for the Holders entitled to vote thereon will be entitled to vote
         on such amendment or proposal, and such amendment or proposal shall not
         be effective except with the consent of Holders of not less than a
         majority or, in the case of proposals specified in clauses (1) through
         (6) above, 100% of such class.

                  (b) It shall not be necessary for any Act of Holders under
         this Section to approve the particular form of any proposed
         supplemental agreement, but it shall be sufficient if such Act shall
         approve the substance thereof.

         SECTION 8.3 Execution Of Supplemental Agreements. In executing, or
accepting the additional agencies created by, any supplemental agreement
permitted by this Article or the modifications thereby of the agencies created
by this Agreement, the Agent shall be provided and (subject to Section 7.1)
shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental agreement is authorized or permitted by this
Agreement. The Agent may, but shall not be obligated to, enter into any such
supplemental agreement which affects the Agent's own rights, duties or
immunities under this Agreement or otherwise.

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<PAGE>

         SECTION 8.4 Effect Of Supplemental Agreements. Upon the execution of
any supplemental agreement under this Article, this Agreement shall be modified
in accordance therewith, and such supplemental agreement shall form a part of
this Agreement for all purposes; and every Holder of Certificates theretofore or
thereafter authenticated, executed on behalf of the Holders and delivered
hereunder shall be bound thereby.

         SECTION 8.5 Reference To Supplemental Agreements. Certificates
authenticated, executed on behalf of the Holders and delivered after the
execution of any supplemental agreement pursuant to this Article may, and shall
if required by the Agent, bear a notation in form approved by the Agent as to
any matter provided for in such supplemental agreement. If the Company shall so
determine, new Certificates so modified as to conform, in the opinion of the
Agent and the Company, to any such supplemental agreement may be prepared and
executed by the Company and authenticated, executed on behalf of the Holders and
delivered by the Agent in exchange for outstanding Certificates.

                                   ARTICLE IX.

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

         SECTION 9.1 Covenant Not To Merge, Consolidate, Sell Or Convey Property
Except Under Certain Conditions. The Company covenants that it will not (a)
merge or consolidate with any other Person or (b) sell, assign, transfer, lease
or convey all or substantially all of its properties and assets to any Person or
group of affiliated Persons in one transaction or a series of related
transactions other than, with respect to clause (b), a direct or indirect
wholly-owned subsidiary of the Company, unless (i) either the Company shall be
the continuing Corporation, or the successor (if other than the Company) shall
be a Corporation organized and existing under the laws of the United States of
America or a State thereof or the District of Columbia and such Corporation
shall expressly assume all the obligations of the Company under the Purchase
Contracts, the Notes, this Agreement, the Remarketing Agreement and the Pledge
Agreement by one or more supplemental agreements in form reasonably satisfactory
to the Agent and the Collateral Agent, executed and delivered to the Agent and
the Collateral Agent by such Corporation, and (ii) the Company or such successor
Corporation, as the case may be, shall not, immediately after such merger or
consolidation, or such sale, assignment, transfer, lease or conveyance, be in
default in the performance of any covenant or condition hereunder, under any of
the Purchase Contracts, under the Remarketing Agreement, or under the Pledge
Agreement. Notwithstanding anything herein to the contrary, a wholly-owned
subsidiary of the Company to whom the Company has sold, assigned, transferred,
leased or conveyed all or substantially all of its properties and assets shall
be required to expressly assume by a supplemental agreement, executed and
delivered to the Agent, in form satisfactory to the Agent, all the obligations
of the Company under Section 7.7.

         SECTION 9.2   Rights And Duties Of Successor Corporation.

                  (a) In case of any such consolidation, merger, sale,
         assignment, transfer, lease or conveyance and upon any such assumption
         by a successor Corporation in accordance with Section 9.1, such
         successor Corporation shall succeed to and be substituted for the

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         Company with the same effect as if it had been named herein as the
         Company and thereafter, except in the case of a lease, the predecessor
         Person shall be relieved of all obligations and covenants under the
         Purchase Contracts, the Notes, this Agreement, the Remarketing
         Agreement and the Pledge Agreement. Such successor Corporation
         thereupon may cause to be signed, and may issue either in its own name
         or in the name of the Company, any or all of the Certificates
         evidencing Equity Security Units and Stripped Equity Security Units
         issuable hereunder which theretofore shall not have been signed by the
         Company and delivered to the Agent; and, upon the order of such
         successor Corporation, instead of the Company, and subject to all the
         terms, conditions and limitations in this Agreement prescribed, the
         Agent shall authenticate and execute on behalf of the Holders and
         deliver any Certificates which previously shall have been signed and
         delivered by the officers of the Company to the Agent for
         authentication and execution, and any Certificate evidencing Equity
         Security Units or Stripped Equity Security Units which such successor
         Corporation thereafter shall cause to be signed and delivered to the
         Agent for that purpose. All the Certificates so issued shall in all
         respects have the same legal rank and benefit under this Agreement as
         the Certificates theretofore or thereafter issued in accordance with
         the terms of this Agreement as though all of such Certificates had been
         issued at the date of the execution hereof.

                  (b) In case of any such consolidation, merger, sale,
         assignment, transfer, lease or conveyance such change in phraseology
         and form (but not in substance) may be made in the Certificates
         evidencing Equity Security Units and Stripped Equity Security Units
         thereafter to be issued as may be appropriate.

         SECTION 9.3 Opinion Of Counsel Given To Agent. The Agent, subject to
Sections 7.1 and 7.3, shall receive an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, sale, assignment, transfer, lease or
conveyance, and any such assumption, complies with the provisions of this
Article and that all conditions precedent to the consummation of any such
consolidation, merger, sale, assignment, transfer, lease or conveyance have been
met.

                                   ARTICLE X.

                                    COVENANTS

         SECTION 10.1 Performance Under Purchase Contracts. The Company
covenants and agrees for the benefit of the Holders from time to time of the
Equity Security Units and Stripped Equity Security Units that it will duly and
punctually perform its obligations under the Purchase Contracts in accordance
with the terms of the Purchase Contracts and this Agreement.

         SECTION 10.2   Maintenance Of Office Or Agency.

                  (a) The Company will maintain in the Borough of Manhattan, The
         City of New York an office or agency where Certificates may be
         presented or surrendered for payment of Contract Adjustment Payments,
         acquisition of shares of Common Stock upon settlement of the Purchase
         Contracts on any Settlement Date and for transfer of Collateral

                                       68
<PAGE>

         upon occurrence of a Termination Event, where Certificates may be
         surrendered for registration of transfer or exchange, for a Collateral
         Substitution or reestablishment of Equity Security Units and where
         notices and demands to or upon the Company in respect of the Equity
         Security Units and Stripped Equity Security Units and this Agreement
         may be served. The Company will give prompt written notice to the Agent
         of the location, and any change in the location, of such office or
         agency. If at any time the Company shall fail to maintain any such
         required office or agency or shall fail to furnish the Agent with the
         address thereof, such presentations, surrenders, notices and demands
         may be made or served at the Corporate Trust Office, and the Company
         hereby appoints the Agent as its agent to receive all such
         presentations, surrenders, notices and demands.

                  (b) The Company may also from time to time designate one or
         more other offices or agencies where Certificates may be presented or
         surrendered for any or all such purposes and may from time to time
         rescind such designations; provided, that no such designation or
         rescission shall in any manner relieve the Company of its obligation to
         maintain an office or agency in the Borough of Manhattan, The City of
         New York for such purposes. The Company will give prompt written notice
         to the Agent of any such designation or rescission and of any change in
         the location of any such other office or agency. The Company hereby
         designates as the place of payment for the Equity Security Units and
         Stripped Equity Security Units the Corporate Trust Office and appoints
         the Agent at its Corporate Trust Office as paying agent in such city.

         SECTION 10.3 Company To Reserve Common Stock. The Company shall at all
times prior to the Stock Purchase Date reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock or treasury
Common Stock the full number of shares of Common Stock issuable against tender
of payment in respect of all Purchase Contracts constituting a part of the
Equity Security Units and Stripped Equity Security Units evidenced by
outstanding Certificates.

         SECTION 10.4 Covenants As To Common Stock. The Company covenants that
all shares of Common Stock which may be issued against tender of payment in
respect of any Purchase Contract constituting a part of the Outstanding Units
will, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable.

         SECTION 10.5 Statements Of Officer Of The Company As To Default. The
Company will deliver to the Agent, within 120 days after the end of each fiscal
year of the Company ending after the date hereof, an Officer's Certificate,
stating whether or not to the best knowledge of the signer thereof the Company
is in default in the performance and observance of any of the terms, provisions
and conditions hereof, and if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which such Officer may have
knowledge. The Company shall deliver to the Agent, as soon as possible and in
any event within five days after the Company becomes aware of the occurrence of
any default under this Agreement or an event which, with notice or the lapse of
time or both, would constitute a default under this Agreement, an Officers'
Certificate setting forth the details of such default and the action which the
Company proposes to take with respect thereto.

                            [SIGNATURE PAGES FOLLOW]
                                       69
<PAGE>

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

                                        DTE ENERGY COMPANY

                                        By:
                                           -------------------------------------
                                           Name:  D.R. Murphy
                                           Title: Assistant Treasurer

                                        THE BANK OF NEW YORK,
                                        as Purchase Contract Agent

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       70
<PAGE>

                                    EXHIBIT A
                    FORM OF EQUITY SECURITY UNIT CERTIFICATE

         [FOR INCLUSION IN GLOBAL CERTIFICATES ONLY - THIS CERTIFICATE IS A
GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT (AS
HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A
NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR
A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE
CONTRACT AGREEMENT.

         Unless this Certificate is presented by an authorized representative of
The Depository Trust Company (55 Water Street, New York, New York) to the
Company or its agent for registration of transfer, exchange or payment, and any
Certificate issued is registered in the name of Cede & Co., or such other name
as requested by an authorized representative of The Depository Trust Company,
and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.]

               (Form of Face of Equity Security Unit Certificate)

No. ______________                                         CUSIP No. 233331 20 6
Number of Equity Security Units____________

         This Equity Security Unit Certificate certifies that [For inclusion in
Global Certificates only --Cede & Co.] is the registered Holder of the number of
Equity Security Units set forth above [For inclusion in Global Certificates only
-- or such other number of Equity Security Units reflected in the Schedule of
Increases or Decreases in Global Certificates attached hereto]. Each Equity
Security Unit represents (i) either (a) beneficial ownership by the Holder of
one 4.60% Senior Note due 2007 (the "Note") of DTE ENERGY COMPANY, a Michigan
corporation (the "Company"), having a principal amount of $25, subject to the
Pledge of such Note by such Holder pursuant to the Pledge Agreement, or (b) if
the Note has been remarketed by the Remarketing Agent, the appropriate
Applicable Ownership Interest in the Treasury Portfolio, subject to the Pledge
of such Applicable Ownership Interest in the Treasury Portfolio by such Holder
pursuant to the Pledge Agreement, or (c) if a Tax Event Redemption has occurred,
the appropriate Applicable Ownership Interest in the Tax Event Treasury
Portfolio subject to the Pledge of such Applicable Ownership Interest in the Tax
Event Treasury Portfolio pursuant to the Pledge Agreement, and (ii) the rights
and obligations of the Holder under one Purchase Contract with the Company. All
capitalized terms used herein which are defined in the Purchase Contract
Agreement have the meaning set forth therein.

         Pursuant to the Pledge Agreement, the Note or the appropriate
Applicable Ownership Interest in the Treasury Portfolio or Applicable Ownership
Interest in the Tax Event Treasury Portfolio, as the case may be, constituting
part of each Equity Security Unit evidenced hereby has

                                      A-1
<PAGE>

been pledged to the Collateral Agent, for the benefit of the Company, to secure
the obligations of the Holder under the Purchase Contract comprising a part of
such Equity Security Unit.

         The Pledge Agreement provides that all payments in respect of the
Pledged Notes, Pledged Applicable Ownership Interest in the Treasury Portfolio
or Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio
received by the Collateral Agent shall be paid by the Collateral Agent by wire
transfer in same day funds (i) in the case of (A) quarterly cash distributions
on Equity Security Units which include Pledged Notes, Pledged Applicable
Ownership Interest in the Treasury Portfolio or Pledged Applicable Ownership
Interest in the Tax Event Treasury Portfolio and (B) any payments in respect of
the Notes, Applicable Ownership Interest in the Treasury Portfolio or Applicable
Ownership Interest in the Tax Event Treasury Portfolio, as the case may be, that
have been released from the Pledge pursuant to the Pledge Agreement, to the
Agent to the account designated by the Agent, no later than 11:00 a.m., New York
City time, on the Business Day such payment is received by the Collateral Agent
(provided that in the event such payment is received by the Collateral Agent on
a day that is not a Business Day or after 9:00 a.m., New York City time, on a
Business Day, then such payment shall be made no later than 9:30 a.m., New York
City time, on the next succeeding Business Day) and (ii) in the case of payments
in respect of any Pledged Notes, Pledged Applicable Ownership Interest in the
Treasury Portfolio or Pledged Applicable Ownership Interest in the Tax Event
Treasury Portfolio, as the case may be, to be paid upon settlement of such
Holder's obligations to purchase Common Stock under the Purchase Contract, to
the Company on the Stock Purchase Date (as defined herein) in accordance with
the terms of the Pledge Agreement, in full satisfaction of the respective
obligations of the Holders of the Equity Security Units of which such Pledged
Notes, Pledged Applicable Ownership Interest in the Treasury Portfolio or
Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio, as
the case may be, are a part under the Purchase Contracts forming a part of such
Equity Security Units. Quarterly distributions on Equity Security Units that
include Pledged Notes, Pledged Applicable Ownership Interest in the Treasury
Portfolio or Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio, as the case may be, which are payable quarterly in arrears on
February 16, May 16, August 16 and November 16 each year commencing August 16,
2002 (a "Payment Date"), shall, subject to receipt thereof by the Agent from the
Collateral Agent (if the Collateral Agent is the registered owner thereof), be
paid to the Person in whose name this Equity Security Unit Certificate (or a
Predecessor Equity Security Unit Certificate) is registered at the close of
business on the Record Date for such Payment Date.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Equity Security Unit Certificate to purchase, and the Company to sell, on August
16, 2005 (the "Stock Purchase Date"), at a price equal to $25 (the "Stated
Amount"), a number of newly issued shares of Common Stock, without par value
("Common Stock"), of the Company, equal to the Settlement Rate, unless on or
prior to the Stock Purchase Date there shall have occurred a Termination Event
or a Cash Settlement, Early Settlement or Merger Early Settlement with respect
to the Equity Security Units of which such Purchase Contract is a part, all as
provided in the Purchase Contract Agreement and more fully described on the
reverse hereof. The Purchase Price (as defined herein) for the shares of Common
Stock purchased pursuant to each Purchase Contract evidenced hereby, if not paid
earlier, shall be paid on the Stock Purchase Date by application of payments
received in respect of the Pledged Notes pursuant to a successful remarketing,
Pledged

                                      A-2
<PAGE>

Applicable Ownership Interest in the Treasury Portfolio or Pledged Applicable
Ownership Interest in the Tax Event Treasury Portfolio (as specified in clause
(A) of the definition of "Applicable Ownership Interest"), as the case may be,
pledged to secure the obligations of the Holder under such Purchase Contract.

         Payments on the Notes or the appropriate Applicable Ownership Interest
in the Treasury Portfolio or Applicable Ownership Interest in the Tax Event
Treasury Portfolio, as the case may be, will be payable at the office of the
Agent in The City of New York or, at the option of the Company, by check mailed
to the address of the Person entitled thereto as such address appears on the
Equity Security Unit Register or by wire transfer to an account specified by
such Person at least ten Business Days prior to the applicable Payment Date.

         The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of an Equity Security Unit evidenced hereby an amount (the
"Contract Adjustment Payment") equal to 4.15% per year of the Stated Amount,
computed (1) for any full quarterly period, on the basis of a 360-day year of
twelve 30-day months and (2) for any period shorter than a full quarterly
period, on the basis of a 30-day month and for periods less than a month, on the
basis of the actual number of days elapsed per 30-day month, subject to deferral
at the option of the Company as provided in the Purchase Contract Agreement and
more fully described on the reverse hereof (provided that if any date on which a
Contract Adjustment Payment is to be made on the Purchase Contracts is not a
Business Day, then payment of such Contract Adjustment Payment payable on such
date will be made on the next succeeding day which is a Business Day, and no
interest or payment will be paid in respect of such delay, except that if such
next succeeding Business Day is in the next succeeding calendar year, then such
payment will be made on the immediately preceding Business Day with the same
force and effect as it made on such Payment Date). Such Contract Adjustment
Payments shall be payable to the Person in whose name this Equity Security Unit
Certificate (or a Predecessor Equity Security Unit Certificate) is registered at
the close of business on the Record Date for such Payment Date.

         Contract Adjustment Payments will be payable at the office of the Agent
in The City of New York or, at the option of the Company, by check mailed to the
address of the Person entitled thereto as such address appears on the Equity
Security Unit Register or by wire transfer to the account designated to the
Agent by a prior written notice by such Person delivered at least ten Business
Days prior to the applicable Payment Date.

         Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Equity Security Unit Certificate shall not
be entitled to any benefit under the Pledge Agreement or the Purchase Contract
Agreement or be valid or obligatory for any purpose.

                                      A-3
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                        DTE ENERGY COMPANY

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        HOLDER SPECIFIED ABOVE (as to
                                        obligations of such Holder under the
                                        Purchase Contracts evidenced hereby)

                                        By: THE BANK OF NEW YORK, not
                                            individually but solely as
                                            Attorney-in-Fact of such Holder

                                        By:
                                           -------------------------------------
                                           Authorized Signatory

                                      A-4
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

         This is one of the Equity Security Unit Certificates referred to in the
within-mentioned Purchase Contract Agreement.

                                        THE BANK OF NEW YORK,
                                        as Purchase Contract Agent

Dated:                                  By:
                                           -------------------------------------
                                           Authorized Signatory

                                      A-5
<PAGE>

              (Form of Reverse of Equity Security Unit Certificate)

         Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of June 25, 2002 (as may be supplemented from time
to time, the "Purchase Contract Agreement"), between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder,
herein called the "Agent"), to which Purchase Contract Agreement and
supplemental agreements thereto reference is hereby made for a description of
the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Agent, the Company, and the Holders and of the terms upon
which the Equity Security Unit Certificates are, and are to be, executed and
delivered. In the case of any inconsistency between this Certificate and the
Purchase Contract Agreement, the terms of the Purchase Contract Agreement shall
prevail.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Equity Security Unit Certificate to purchase, and the Company to sell, on the
Stock Purchase Date at a price equal to $25 (the "Purchase Price"), a number of
shares of Common Stock of the Company equal to the Settlement Rate, unless, on
or prior to the Stock Purchase Date, there shall have occurred a Termination
Event or an Early Settlement, Merger Early Settlement or Cash Settlement with
respect to the Equity Security Units of which such Purchase Contract is a part.
The "Settlement Rate" is equal to (a) if the Applicable Market Value (as defined
below) is greater than or equal to $51.90 (the "Threshold Appreciation Price"),
0.4817 shares of Common Stock per Purchase Contract, (b) if the Applicable
Market Value is less than the Threshold Appreciation Price but is greater than
$43.25 (the "Reference Price"), the number of shares of Common Stock per
Purchase Contract equal to the Stated Amount divided by the Applicable Market
Value and (c) if the Applicable Market Value is less than or equal to the
Reference Price, 0.5780 shares of Common Stock per Purchase Contract, in each
case subject to adjustment as provided in the Purchase Contract Agreement. No
fractional shares of Common Stock will be issued upon settlement of Purchase
Contracts, as provided in the Purchase Contract Agreement.

         The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 consecutive Trading Days ending on
the third Trading Day immediately preceding the Stock Purchase Date.

         The "Closing Price" of the Common Stock on any date of determination
means the closing sale price (or, if no closing price is reported, the last
reported sale price) of the Common Stock on the New York Stock Exchange (the
"NYSE") on such date or, if the Common Stock is not listed for trading on the
NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is so
listed, or if the Common Stock is not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or, if the
Common Stock is not so reported, the last quoted bid price for the Common Stock
in the over-the-counter market as reported by the National Quotation Bureau or
similar organization, or, if such bid price is not available, the market value
of the Common Stock on such date as determined by a nationally recognized
independent investment banking firm retained for this purpose by the Company.

                                      A-6
<PAGE>

         A "Trading Day" means a day on which the Common Stock (A) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the- counter market that is the primary market for the
trading of the Common Stock.

         Each Purchase Contract evidenced hereby may be settled prior to the
Stock Purchase Date through Early Settlement, Merger Early Settlement or Cash
Settlement, in accordance with the terms of the Purchase Contract Agreement.

         In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Equity Security Unit Certificate shall pay the Purchase Price for
the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby (i) by effecting a Cash Settlement, Early Settlement or Merger
Early Settlement, (ii) by application of payments received in respect of the
Pledged Applicable Ownership Interest in the Treasury Portfolio acquired from
the proceeds of a remarketing of the related Pledged Notes underlying the Equity
Security Units represented by this Equity Security Unit Certificate, or (iii) if
a Tax Event Redemption Date has occurred prior to the successful remarketing of
the Notes by application of payments received in respect of the Pledged
Applicable Ownership Interest in the Tax Event Treasury Portfolio purchased by
the Collateral Agent on behalf of the Holder of this Equity Security Unit
Certificate. If, as provided in the Purchase Contract Agreement, upon the
occurrence of a Last Failed Remarketing on the fifth Business Day immediately
proceeding the Stock Purchase Date the Collateral Agent, for the benefit of the
Company, exercises its rights as a secured creditor with respect to the Pledged
Notes related to this Equity Security Unit Certificate, any accrued and unpaid
interest on such Pledged Notes will become payable by the Company to the Holder
of this Equity Security Unit Certificate in the manner provided for in the
Purchase Contract Agreement.

         The Company shall not be obligated to issue any shares of Common Stock
in respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment in full of the aggregate Purchase
Price for the shares of Common Stock to be purchased thereunder in the manner
herein set forth.

         Under the terms of the Pledge Agreement, the Agent will be entitled to
exercise the voting and any other consensual rights pertaining to the Pledged
Notes. Upon receipt of notice of any meeting at which holders of Notes are
entitled to vote or upon the solicitation of consents, waivers or proxies of
holders of Notes, the Agent shall, as soon as practicable thereafter, mail to
the Holders of Equity Security Units a notice (a) containing such information as
is contained in the notice or solicitation, (b) stating that each such Holder on
the record date set by the Agent therefor (which, to the extent possible, shall
be the same date as the record date for determining the holders of Notes
entitled to vote) shall be entitled to instruct the Agent as to the exercise of
the voting rights pertaining to the Pledged Notes constituting a part of such
Holder's Equity Security Units and (c) stating the manner in which such
instructions may be given. Upon the written request of the Holders of Equity
Security Units on such record date, the Agent shall endeavor insofar as
practicable to vote or cause to be voted, in accordance with the instructions
set forth in such requests, the maximum number of Pledged Notes as to which any
particular voting instructions are received. In the absence of specific
instructions from the Holder of an

                                      A-7
<PAGE>

Equity Security Unit, the Agent shall abstain from voting the Pledged Note
evidenced by such Equity Security Units.

         The Equity Security Unit Certificates are issuable only in registered
form and only in denominations of a single Equity Security Unit and any integral
multiple thereof. The transfer of any Equity Security Unit Certificate will be
registered and Equity Security Unit Certificates may be exchanged as provided in
the Purchase Contract Agreement. The Equity Security Unit Registrar may require
a Holder, among other things, to furnish appropriate endorsements and transfer
documents permitted by the Purchase Contract Agreement. No service charge shall
be required for any such registration of transfer or exchange, but the Company
and the Agent may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith. The Holder of an Equity
Security Unit may substitute for the Pledged Notes, securing its obligations
under the related Purchase Contract Treasury Securities in accordance with the
terms of the Purchase Contract Agreement and the Pledge Agreement. From and
after such Collateral Substitution, the Equity Security Units for which such
Pledged Treasury Securities secures the Holder's obligation under the Purchase
Contract shall be referred to as a "Stripped Equity Security Unit." A Holder
that elects to substitute a Treasury Security for Pledged Notes, thereby
creating Stripped Equity Security Units, shall be responsible for any fees or
expenses payable in connection therewith. Except as provided in the Purchase
Contract Agreement, for so long as the Purchase Contract underlying an Equity
Security Unit remains in effect, such Equity Security Unit shall not be
separable into its constituent parts, and the rights and obligations of the
Holder of such Equity Security Unit in respect of the Pledged Note, and Purchase
Contract constituting such Equity Security Unit may be transferred and exchanged
only as an Equity Security Unit.

         A Holder of Stripped Equity Security Units may reestablish Equity
Security Units by delivering to the Collateral Agent Notes in exchange for the
release of the Pledged Treasury Securities in accordance with the terms of the
Purchase Contract Agreement and the Pledge Agreement.

         Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Equity Security Unit
Certificate evidencing such Purchase Contract is registered at the close of
business on the Record Date for such Payment Date. Contract Adjustment Payments,
if any, will be payable at the office of the Agent in The City of New York or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such address as it appears on the Equity Security Unit
Register or by wire transfer to the account designated by such Person in writing
at least ten Business Days prior to the applicable Payment Date.

         The Company shall have the right, at any time prior to the Stock
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer Contract
Adjustment Payments as provided in the Purchase Contract Agreement. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, bear
additional Contract Adjustment Payments thereon at the rate of 4.15% per year

                                      A-8
<PAGE>

(computed on the basis of a 360-day year of twelve 30-day months), compounding
on each succeeding Payment Date, until paid in full (such deferred installments
of Contract Adjustment Payments, if any, together with the additional Contract
Adjustment Payments, if any, accumulated thereon, are referred to herein as the
"Deferred Contract Adjustment Payments"). Deferred Contract Adjustment Payments,
if any, shall be due on the next succeeding Payment Date except to the extent
that payment is deferred pursuant to the Purchase Contract Agreement. No
Contract Adjustment Payments may be deferred to a date that is after the Stock
Purchase Date and no such deferral period may end other than on a Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Stock Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Stock Purchase Date, the
Holder of this Equity Security Unit Certificate will receive on the Stock
Purchase Date, if the Company so elects, in lieu of a cash payment, a number of
shares of Common Stock (in addition to the number of shares of Common Stock
equal to the Settlement Rate) equal to (i) the aggregate amount of Deferred
Contract Adjustment Payments payable to the Holder of this Equity Security Unit
Certificate divided by (ii) the Applicable Market Value.

         In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and shall not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of its Common Stock other than (i) purchases, redemptions
or acquisitions of shares of Common Stock in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
employees, officers or directors or a stock purchase or dividend reinvestment
plan, or the satisfaction by the Company of its obligations pursuant to any
contract or security outstanding on the date the Company exercises its rights to
defer the Contract Adjustment Payments; (ii) as a result of a reclassification
of the Company's Capital Stock or the exchange or conversion of one class or
series of for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Common Stock
pursuant to the conversion or exchange provisions of such Common Stock or the
security being converted or exchanged; (iv) dividends or distributions payable
solely in the Company's Common Stock (or rights to acquire Common Stock) or
repurchases, acquisitions or redemptions of Common Stock in connection with the
issuance or exchange of the Common Stock (or securities convertible into or
exchangeable for shares of the Company's Common Stock); or (v) redemptions,
exchanges or repurchases of any rights outstanding under a shareholder rights
plan or the declaration or payment thereunder of a dividend or distribution of
or with respect to rights in the future.

         The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive and the obligation of the Company to pay Contract Adjustment
Payments, if any, or any Deferred Contract

                                      A-9
<PAGE>

Adjustment Payments, and the rights of the Holders to purchase Common Stock,
shall immediately and automatically terminate, without the necessity of any
notice or action by any Holder, the Agent or the Company, if, on or prior to the
Stock Purchase Date, a Termination Event shall have occurred. Upon the
occurrence of a Termination Event, the Company shall promptly but in no event
later than two Business Days thereafter give written notice to the Agent, the
Collateral Agent and to the Holders, at their addresses as they appear in the
Equity Security Unit Register. Upon and after the occurrence of a Termination
Event, the Collateral Agent shall release the Pledged Notes, Pledged Applicable
Ownership Interest in the Treasury Portfolio or Pledged Applicable Ownership
Interest in the Tax Event Treasury Portfolio, as the case may be, from the
Pledge in accordance with the provisions of the Pledge Agreement.

         Upon registration of transfer of this Equity Security Unit Certificate,
the transferee shall be bound (without the necessity of any other action on the
part of such transferee, except as may be required by the Agent pursuant to the
Purchase Contract Agreement), under the terms of the Purchase Contract Agreement
and the Purchase Contracts evidenced hereby and the transferor shall be released
from the obligations under the Purchase Contracts evidenced by this Equity
Security Unit Certificate. The Company covenants and agrees, and the Holder, by
its acceptance hereof, likewise covenants and agrees, to be bound by the
provisions of this paragraph.

         The Holder of this Equity Security Unit Certificate, by its acceptance
hereof, authorizes the Agent to enter into and perform the related Purchase
Contracts forming part of the Equity Security Units evidenced hereby on his
behalf as his attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform such Holder's obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement,
authorizes the Agent to enter into and perform the Pledge Agreement on such
Holder's behalf as attorney-in-fact, and consents to the Pledge of the Notes or
the appropriate Applicable Ownership Interest in the Treasury Portfolio or
Applicable Ownership Interest in the Tax Event Treasury Portfolio, as the case
may be, underlying this Equity Security Unit Certificate pursuant to the Pledge
Agreement. The Holder further covenants and agrees, that, to the extent and in
the manner provided in the Purchase Contract Agreement and the Pledge Agreement,
but subject to the terms thereof, payments in respect of the Pledged Notes,
Pledged Applicable Ownership Interest in the Treasury Portfolio or Pledged
Applicable Ownership Interest in the Tax Event Treasury Portfolio, as the case
may be, to be paid upon settlement of such Holder's obligations to purchase
Common Stock under the Purchase Contract, shall be paid on the Stock Purchase
Date by the Collateral Agent to the Company in satisfaction of such Holder's
obligations under such Purchase Contract and such Holder shall acquire no right,
title or interest in such payments.

         Each Holder of any Equity Security Units or Stripped Equity Security
Units, and each Beneficial Owner thereof, by its acceptance thereof or of its
interest therein, further agrees to treat (i) itself as the owner of the related
Notes, Applicable Ownership Interest in the Treasury Portfolio, Applicable
Ownership Interest in the Tax Event Treasury Portfolio or Treasury Securities,
as the case may be, (ii) the Notes as indebtedness of the Company, and (iii) the
Purchase Contract and the Notes, the Treasury Portfolio, the Tax Event Treasury
Portfolio of

                                      A-10
<PAGE>

Treasury Securities, as the case may be, as separate financial instruments, in
each case, for all tax purposes.

         Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.

         The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to its principles of conflicts of laws.

         The Company, the Agent and its Affiliates and any agent of the Company
or the Agent may treat the Person in whose name this Equity Security Unit
Certificate is registered as the owner of the Equity Security Units evidenced
hereby for the purpose of receiving quarterly payments on the Notes, the
Applicable Ownership Interest in the Treasury Portfolio or the Applicable
Ownership Interest in the Tax Event Treasury Portfolio, as the case may be,
receiving payments of Contract Adjustment Payments, if any, and any Deferred
Contract Adjustment Payments, performance of the Purchase Contracts and for all
other purposes whatsoever (subject to the Record Date provisions hereof),
whether or not any payments in respect thereof be overdue and notwithstanding
any notice to the contrary, and neither the Company, the Agent, such Affiliates
nor any such agent shall be affected by notice to the contrary.

         The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of shares of Common Stock.

         A copy of the Purchase Contract Agreement is available for inspection
at the offices of the Agent.

                                      A-11
<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common

UNIF GIFT MIN ACT - Custodian

                                        ----------------------------------------
                                        (cust)                           (minor)

                                        Under Uniform Gifts to Minors Act

                                        ----------------------------------------
                                                        (State)

TEN ENT - as tenants by the entireties

JT TEN - as joint tenants with right of survivorship and not as tenants in
common

Additional abbreviations may also be used though not in the above list.

                                      A-12
<PAGE>

                                   ASSIGNMENT

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

________________________________________________________________________________

________________________________________________________________________________

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)_______________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Equity Security Unit Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ____________________________ attorney to
transfer said Equity Security Unit Certificates on the books of DTE ENERGY
COMPANY with full power of substitution in the premises.

Dated: _______________________ Signature: ______________________________________

NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Equity Security Unit Certificates in every
particular, without alteration or enlargement or any change whatsoever.

Signature Guarantee: ___________________________________________________________

                                      A-13
<PAGE>

                             SETTLEMENT INSTRUCTIONS

The undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon settlement on or after the Stock Purchase Date of the Purchase
Contracts underlying the number of Equity Security Units evidenced by this
Equity Security Unit Certificate be registered in the name of, and delivered,
together with a check in payment for any fractional share, to the undersigned at
the address indicated below unless a different name and address have been
indicated below. If shares are to be registered in the name of a Person other
than the undersigned, the undersigned will pay any transfer tax payable incident
thereto.

Dated: ___________________              Signature:______________________________

                                        Signature Guarantee:____________________
                                        (if assigned to another person)

If shares are to be registered in the   REGISTERED HOLDER Please print
name of and delivered to a Person other name and address of Registered Holder:
than the Holder, please (i) print such
Person's name and address and (ii)
provide a guarantee of your signature:

___________________________________     ________________________________________
Name                                    Name

___________________________________     ________________________________________
Address                                 Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-14
<PAGE>

                            ELECTION TO SETTLE EARLY

         The undersigned Holder of this Equity Security Unit Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Equity Security Units evidenced by this
Equity Security Unit Certificate specified below. The option to effect Early
Settlement may be exercised only with respect to Purchase Contracts underlying
Equity Security Units with an aggregate Stated Amount equal to $1,000 or an
integral multiple thereof, subject to the provisions of the within-mentioned
Purchase Contract Agreement relating to Early Settlement following a successful
remarketing or a Tax Event Redemption Date. The undersigned Holder directs that
a certificate for shares of Common Stock deliverable upon such Early Settlement
be registered in the name of, and delivered, together with a check in payment
for any fractional share and any Equity Security Unit Certificate representing
any Equity Security Units evidenced hereby as to which Early Settlement of the
related Purchase Contracts is not effected, to the undersigned at the address
indicated below unless a different name and address have been indicated below.
Pledged Notes, Pledged Applicable Ownership Interest in the Treasury Portfolio
or the Pledged Applicable Ownership Interest in the Tax Event Treasury
Portfolio, as the case may be, deliverable upon such Early Settlement will be
transferred in accordance with the transfer instructions set forth below. If
shares are to be registered in the name of a Person other than the undersigned,
the undersigned will pay any transfer tax payable incident thereto.

Dated: ___________________              Signature: _____________________________
                                        Signature Guarantee: ___________________

Number of Equity Security Units evidenced hereby as to which Early Settlement of
the related Purchase Contracts is being elected:

If shares of Common Stock are to be     REGISTERED HOLDER
registered in the name of and
delivered to and Pledged Notes,
Pledged Applicable Ownership Interest
in the Treasury Portfolio or Pledged
Applicable Ownership Interest in the    Please print name and address of
Tax Event Treasury  Portfolio, as the   Registered Holder:
case may be, are to be transferred to
a Person other than the Holder, please
print such Person's name and address:

___________________________________     ________________________________________
Name                                    Name

___________________________________     ________________________________________
Address                                 Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-15
<PAGE>

Transfer instructions for Pledged Notes, Pledged Applicable Ownership Interest
in the Treasury Portfolio or the Pledged Applicable Ownership Interest in the
Tax Event Treasury Portfolio, as the case may be, transferable upon Early
Settlement or a Termination Event:

                                      A-16
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The following increases or decreases in this Global Certificate have been made:

<TABLE>
<CAPTION>
                           Amount of Decrease                            Stated Amount of the
                           in Stated Amount of   Amount of Increase in    Global Certificate
                               the Global         Stated Amount of the      Following Such          Signature of
         Date                  Certificate         Global Certificate    Decrease or Increase   Authorizing Officer
---------------------     --------------------- ----------------------- ---------------------- ----------------------
<S>                       <C>                   <C>                     <C>                    <C>

</TABLE>

                                      A-17

<PAGE>

                                    EXHIBIT B

                FORM OF STRIPPED EQUITY SECURITY UNIT CERTIFICATE

[FOR INCLUSION IN GLOBAL CERTIFICATES ONLY -- THIS CERTIFICATE IS A GLOBAL
CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT (AS
HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF A CLEARING AGENCY OR A
NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR
A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE
CONTRACT AGREEMENT.

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the Company or
its agent for registration of transfer, exchange or payment, and any Certificate
issued is registered in the name of Cede & Co., or such other name as requested
by an authorized representative of The Depository Trust Company, and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.]

           [Form of Face of Stripped Equity Security Unit Certificate]

No. ___________________                                 CUSIP No. 233331 30 5
Number of Stripped Equity Security Units _______________

         This Stripped Equity Security Unit Certificate certifies that [For
inclusion in Global Certificates only -- Cede & Co.] is the registered Holder of
the number of Stripped Equity Security Units set forth above [For inclusion in
Global Certificates only -- or such other number of Stripped Equity Security
Units reflected in the Schedule of Increases or Decreases in Global Certificate
attached hereto]. Each Stripped Equity Security Unit represents (i) a 1/40
undivided beneficial ownership interest in a Treasury Security, subject to the
Pledge of such interest in such Treasury Security by such Holder pursuant to the
Pledge Agreement, and (ii) the rights and obligations of the Holder under one
Purchase Contract with DTE ENERGY COMPANY, a Michigan corporation (the
"Company"). All capitalized terms used herein which are defined in the Purchase
Contract Agreement have the meaning set forth therein.

         Pursuant to the Pledge Agreement, the Treasury Security constituting
part of each Stripped Equity Security Unit evidenced hereby has been pledged to
the Collateral Agent, for the benefit of the Company, to secure the obligations
of the Holder under the Purchase Contract comprising a part of such Stripped
Equity Security Unit.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Equity Security Unit Certificate to purchase, and the Company to sell,
on August 16, 2005 (the "Stock Purchase Date"), at a price equal to $25 (the
"Stated Amount"), a number of shares of Common

                                      B-1
<PAGE>

Stock, without par value ("Common Stock"), of the Company, equal to the
Settlement Rate, unless on or prior to the Stock Purchase Date there shall have
occurred a Termination Event or an Early Settlement or Merger Early Settlement
with respect to the Stripped Equity Security Units of which such Purchase
Contract is a part, all as provided in the Purchase Contract Agreement and more
fully described on the reverse hereof. The Purchase Price (as defined herein)
for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby, if not paid earlier, shall be paid on the Stock Purchase Date
by application of payments received in respect of the Pledged Treasury
Securities pledged to secure the obligations under such Purchase Contract in
accordance with the terms of the Pledge Agreement.

         The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Stripped Equity Security Unit evidenced hereby an
amount (the "Contract Adjustment Payments") equal to 4.15% per year of the
Stated Amount, computed (1) for any full quarterly period, on the basis of a
360-day year of twelve 30-day months and (2) for any period shorter than a full
quarterly period on the basis of a 30-day month and for periods less than a
month, on the basis of the actual number of days elapsed per 30-day month,
subject to deferral at the option of the Company as provided in the Purchase
Contract Agreement and more fully described on the reverse hereof (provided that
if any date on which Contract Adjustment Payments are to be made on the Purchase
Contracts is not a Business Day, then payment of the Contract Adjustment
Payments payable on that date will be made on the next succeeding day which is a
Business Day, and no interest or payment will be paid in respect of the delay,
except that if such next succeeding Business Day is in the next succeeding
calendar year, such payment will be made on the immediately preceding Business
Day with the same force and effect as if made on such Payment Date). Such
Contract Adjustment Payments shall be payable to the Person in whose name this
Stripped Equity Security Unit Certificate (or a Predecessor Stripped Equity
Security Unit Certificate) is registered at the close of business on the Record
Date for such Payment Date.

         Contract Adjustment Payments, if any, will be payable at the office of
the Agent in the City of New York or, at the option of the Company, by check
mailed to the address of the Person entitled thereto at such address as it
appears on the Stripped Equity Security Unit Register or by wire transfer to the
account designated by such Person in writing at least ten Business Days prior to
the applicable Payment Date.

         Reference is hereby made to the further provisions set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Agent by manual signature, this Stripped Equity Security Unit Certificate
shall not be entitled to any benefit under the Pledge Agreement or the Purchase
Contract Agreement or be valid or obligatory for any purpose.

                                      B-2
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                  DTE ENERGY COMPANY

                                  By:______________________________________
                                     Name:
                                     Title:

                                  HOLDER SPECIFIED ABOVE (as to obligations
                                      of such Holder under the
                                      Purchase Contracts)

                                  By: THE BANK OF NEW YORK, not individually but
                                      solely as Attorney-in-Fact of such Holder

                                      By:___________________________________
                                         Authorized Signatory

                                      B-3
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

         This is one of the Stripped Equity Security Units referred to in the
within-mentioned Purchase Contract Agreement.

                                      THE BANK OF NEW YORK, as Purchase
                                      Contract Agent

Dated:                                By:_______________________________
                                         Authorized Signatory

                                      B-4
<PAGE>

             (Reverse of Stripped Equity Security Unit Certificate)

         Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of June 25, 2002 (as may be supplemented from time
to time, the "Purchase Contract Agreement"), between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder,
herein called the "Agent"), to which the Purchase Contract Agreement and
supplemental agreements thereto reference is hereby made for a description of
the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Agent, the Company and the Holders and of the terms upon which
the Stripped Equity Security Unit Certificates are, and are to be, executed and
delivered. In the case of any inconsistency between this Certificate and the
Purchase Contract Agreement, the terms of the Purchase Contract Agreement shall
prevail.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Stripped Equity Security Unit Certificate to purchase, and the Company to sell,
on the Stock Purchase Date at a price equal to $25 (the "Purchase Price"), a
number of shares of Common Stock of the Company equal to the Settlement Rate,
unless, on or prior to the Stock Purchase Date, there shall have occurred a
Termination Event or an Early Settlement or Merger Early Settlement respect to
the Stripped Equity Security Units of which such Purchase Contract is a part.
The "Settlement Rate" is equal to (a) if the Applicable Market Value (as defined
below) is greater than or equal to $51.90 (the "Threshold Appreciation Price"),
0.4817 shares of Common Stock per Purchase Contract, (b) if the Applicable
Market Value is less than the Threshold Appreciation Price but is greater than
$43.25, the number of shares of Common Stock per Purchase Contract equal to the
Stated Amount divided by the Applicable Market Value and (c) if the Applicable
Market Value is less than or equal to $43.25, 0.5780 shares of Common Stock per
Purchase Contract, in each case subject to adjustment as provided in the
Purchase Contract Agreement. No fractional shares of Common Stock will be issued
upon settlement of Purchase Contracts, as provided in the Purchase Contract
Agreement.

         The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 consecutive Trading Days ending on
the third Trading Day immediately preceding the Stock Purchase Date.

         The "Closing Price" of the Common Stock on any date of determination
means the closing sale price (or, if no closing price is reported, the last
reported sale price) of the Common Stock on the New York Stock Exchange (the
"NYSE") on such date or, if the Common Stock is not listed for trading on the
NYSE on any such date, as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is so
listed, or if the Common Stock is not so listed on a United States national or
regional securities exchange, as reported by The Nasdaq Stock Market, or, if the
Common Stock is not so reported, the last quoted bid price for the Common Stock
in the over-the-counter market as reported by the National Quotation Bureau or
similar organization, or, if such bid price is not available, the market value
of the Common Stock on such date as determined by a nationally recognized
independent investment banking firm retained for this purpose by the Company.

                                      B-5
<PAGE>

         A "Trading Day" means a day on which the Common Stock (A) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Stock.

         Each Purchase Contract evidenced hereby may be settled prior to the
Stock Purchase Date through Early Settlement or Merger Early Settlement, in
accordance with the terms of the Purchase Contract Agreement.

         In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Stripped Equity Security Unit Certificate shall pay the Purchase
Price for the shares of Common Stock purchased pursuant to each Purchase
Contract evidenced hereby (i) by effecting an Early Settlement or Merger Early
Settlement or (ii) by application of payments received in respect of the Pledged
Treasury Securities underlying the Stripped Equity Security Units represented by
this Stripped Equity Security Unit Certificate.

         The Company shall not be obligated to issue any shares of Common Stock
in respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment in full of the aggregate Purchase
Price for the shares of Common Stock to be purchased thereunder in the manner
herein set forth.

         The Stripped Equity Security Unit Certificates are issuable only in
registered form and only in denominations of a single Stripped Equity Security
Unit and any integral multiple thereof. The transfer of any Stripped Equity
Security Unit Certificate will be registered and Stripped Equity Security Unit
Certificates may be exchanged as provided in the Purchase Contract Agreement.
The Stripped Equity Security Unit Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents permitted by
the Purchase Contract Agreement. No service charge shall be required for any
such registration of transfer or exchange, but the Company and the Agent may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith. The Holder of a Stripped Equity Security
Unit may substitute for the Pledged Treasury Securities securing its obligations
under the related Purchase Contract in accordance with the terms of the Purchase
Contract Agreement and the Pledge Agreement. From and after such substitution,
the Stripped Equity Security Unit for which such Pledged Notes secures the
Holder's obligation under the Purchase Contract shall be referred to as an
"Equity Security Unit." A Holder that elects to substitute Notes for Pledged
Treasury Securities, thereby reestablishing Equity Security Units, shall be
responsible for any fees or expenses payable in connection therewith. Except as
provided in the Purchase Contract Agreement, for so long as the Purchase
Contract underlying a Stripped Equity Security Unit remains in effect, such
Stripped Equity Security Unit shall not be separable into its constituent parts,
and the rights and obligations of the Holder of such Stripped Equity Security
Units in respect of the Pledged Treasury Security and the Purchase Contract
constituting such Stripped Equity Security Units may be transferred and
exchanged only as a Stripped Equity Security Unit.

                                      B-6
<PAGE>

         Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, payable in respect of each
Purchase Contract to the Person in whose name the Stripped Equity Security Unit
Certificate evidencing such Purchase Contract is registered at the close of
business on the Record Date for such Payment Date. Contract Adjustment Payments,
if any, will be payable at the office of the Agent in the City of New York or,
at the option of the Company, by check mailed to the address of the Person
entitled thereto at such address as it appears on the Stripped Equity Security
Unit Register or by wire transfer to the account designated by such Person in
writing at least ten Business Days prior to the applicable Payment Date.

         The Company shall have the right, at any time prior to the Stock
Purchase Date, to defer the payment of any or all of the Contract Adjustment
Payments otherwise payable on any Payment Date, but only if the Company shall
give the Holders and the Agent written notice of its election to defer Contract
Adjustment Payments as provided in the Purchase Contract Agreement. Any Contract
Adjustment Payments so deferred shall, to the extent permitted by law, bear
additional Contract Adjustment Payments thereon at the rate of 4.15% per year
(computed on the basis of a 360-day year of twelve 30-day months), compounding
on each succeeding Payment Date, until paid in full (such deferred installments
of Contract Adjustment Payments, if any, together with the additional Contract
Adjustment Payments accumulated thereon, are referred to herein as the "Deferred
Contract Adjustment Payments"). Deferred Contract Adjustment Payments, if any,
shall be due on the next succeeding Payment Date except to the extent that
payment is deferred pursuant to the Purchase Contract Agreement. No Contract
Adjustment Payments may be deferred to a date that is after the Stock Purchase
Date and no such deferral period may end other than on a Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until a Payment Date prior to the
Stock Purchase Date, then all Deferred Contract Adjustment Payments, if any,
shall be payable to the registered Holders as of the close of business on the
Record Date immediately preceding such Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments on the Purchase Contracts until the Stock Purchase Date, the
Holder of this Stripped Equity Security Unit Certificate will receive on the
Stock Purchase Date, if the Company so elects, in lieu of a cash payment, a
number of shares of Common Stock (in addition to the number of shares of Common
Stock equal to the Settlement Rate) equal to (i) the aggregate amount of
Deferred Contract Adjustment Payments payable to the Holder of this Stripped
Equity Security Unit Certificate divided by (ii) the Applicable Market Value.

         In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and shall not permit any
subsidiary of the Company to, declare or pay dividends on, make distributions
with respect to, or redeem, purchase or acquire, or make a liquidation payment
with respect to, any of its Common Stock other than (i) purchases, redemptions
or acquisitions of shares of Common Stock in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
employees, officers or directors or a stock purchase or dividend reinvestment
plan, or the satisfaction by the

                                      B-7
<PAGE>

Company of its obligations pursuant to any contract or security outstanding on
the date the Company exercises its rights to defer the Contract Adjustment
Payments; (ii) as a result of a reclassification of the Company's Capital Stock
or the exchange or conversion of one class or series of the Company's Capital
Stock for another class or series of the Company's Capital Stock; (iii) the
purchase of fractional interests in shares of the Company's Common Stock
pursuant to the conversion or exchange provisions of such Common Stock or the
security being converted or exchanged; (iv) dividends or distributions payable
solely in Common Stock (or rights to acquire Common Stock) or repurchases,
acquisitions or redemptions of Common Stock in connection with the issuance or
exchange of the Common Stock (or securities convertible into or exchangeable for
shares of the Company's Common Stock); or (v) redemptions, exchanges or
repurchases of any rights outstanding under a shareholder rights plan or the
declaration or payment thereunder of a dividend or distribution of or with
respect to rights in the future.

         The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive and the obligation of the Company to pay Contract Adjustment
Payments, if any, or any Deferred Contract Adjustment Payments, and the rights
and obligations of Holders to purchase Common Stock, shall immediately and
automatically terminate, without the necessity of any notice or action by any
Holder, the Agent or the Company, if, on or prior to the Stock Purchase Date, a
Termination Event shall have occurred. Upon the occurrence of a Termination
Event, the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Agent, the Collateral Agent and to the
Holders, at their addresses as they appear in the Stripped Equity Security Unit
Register. Upon and after the occurrence of a Termination Event, the Collateral
Agent shall release the Pledged Treasury Securities from the Pledge in
accordance with the provisions of the Pledge Agreement.

         Upon registration of transfer of this Stripped Equity Security Unit
Certificate, the transferee shall be bound (without the necessity of any other
action on the part of such transferee, except as may be required by the Agent
pursuant to the Purchase Contract Agreement), under the terms of the Purchase
Contract Agreement and the Purchase Contracts evidenced hereby and the
transferor shall be released from the obligations under the Purchase Contracts
evidenced by this Stripped Equity Security Unit Certificate. The Company
covenants and agrees, and the Holder, by his acceptance hereof, likewise
covenants and agrees, to be bound by the provisions of this paragraph.

         The Holder of this Stripped Equity Security Unit Certificate, by his
acceptance hereof, authorizes the Agent to enter into and perform the related
Purchase Contracts forming part of the Stripped Equity Security Units evidenced
hereby on his behalf as its attorney-in-fact, expressly withholds any consent to
the assumption (i.e., affirmance) of the Purchase Contracts by the Company or
its trustee in the event that the Company becomes the subject of a case under
the Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform such Holder's obligations under such Purchase
Contracts, consents to the provisions of the Purchase Contract Agreement,
authorizes the Agent to enter into and perform the Pledge Agreement on such
Holder's behalf as attorney-in-fact, and consents to the Pledge of the Treasury
Securities underlying this Stripped Equity Security Unit Certificate pursuant to
the Pledge Agreement. The Holder further covenants and agrees, that, to the
extent and in the

                                      B-8
<PAGE>

manner provided in the Purchase Contract Agreement and the Pledge Agreement, but
subject to the terms thereof, payments in respect of the Pledged Treasury
Securities, to be paid upon settlement of such Holder's obligations to purchase
Common Stock under the Purchase Contract, shall be paid on the Stock Purchase
Date by the Collateral Agent to the Company in satisfaction of such Holder's
obligations under such Purchase Contract and such Holder shall acquire no right,
title or interest in such payments.

         Each Holder of any Equity Security Units or Stripped Equity Security
Units, and each Beneficial Owner thereof, by its acceptance thereof or of its
interest therein, further agrees to treat (i) itself as the owner of the related
Notes, Applicable Ownership Interest in the Treasury Portfolio, Applicable
Ownership Interest in the Tax Event Treasury Portfolio or Treasury Securities,
as the case may be, (ii) the Notes as indebtedness of the Company, and (iii) the
Purchase Contract and the Notes, the Treasury Portfolio, the Tax Event Treasury
Portfolio of Treasury Securities, as the case may be, as separate financial
instruments, in each case, for all tax purposes.

         Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.

         The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to its principles of conflicts of laws.

         The Company, the Agent and its Affiliates and any agent of the Company
or the Agent may treat the Person in whose name this Stripped Equity Security
Unit Certificate is registered as the owner of the Stripped Equity Security
Units evidenced hereby for the purpose of receiving any Contract Adjustment
Payments and any Deferred Contract Adjustment Payments, performance of the
Purchase Contracts and for all other purposes whatsoever (subject to the Record
Date provisions hereof), whether or not any payments in respect thereof be
overdue and notwithstanding any notice to the contrary, and neither the Company,
the Agent, such Affiliate, nor any such agent shall be affected by notice to the
contrary.

         The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of shares of Common Stock.

A copy of the Purchase Contract Agreement is available for inspection at the
offices of the Agent.

                                      B-9
<PAGE>

                                  ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common

UNIF GIFT MIN ACT - Custodian

                                   ---------------------------------
                                   (cust)                    (minor)

                                   Under Uniform Gifts to Minors Act

                                   ---------------------------------
                                                (State)

TEN ENT - as tenants by the entireties

JT TEN - as joint tenants with right of survivorship and not as tenants in
common

Additional abbreviations may also be used though not in the above list.

                                      B-10
<PAGE>

                                   ASSIGNMENT

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

______________________________________________________________________________

______________________________________________________________________________

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Stripped Equity Security Unit Certificates and all rights thereunder,
hereby irrevocably constituting and appointing ____________________________
attorney to transfer said Equity Security Unit Certificates on the books of DTE
ENERGY COMPANY with full power of substitution in the premises.

Dated: _______________________ Signature:_______________________________

NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Stripped Equity Security Unit Certificates
in every particular, without alteration or enlargement or any change whatsoever.

Signature Guarantee:_____________________________________________________

                                      B-11
<PAGE>

                             SETTLEMENT INSTRUCTIONS

The undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon settlement on or after the Stock Purchase Date of the Purchase
Contracts underlying the number of Stripped Equity Security Units evidenced by
this Stripped Equity Security Unit Certificate be registered in the name of, and
delivered, together with a check in payment for any fractional share, to the
undersigned at the address indicated below unless a different name and address
have been indicated below. If shares are to be registered in the name of a
Person other than the undersigned, the undersigned will pay any transfer tax
payable incident thereto.

Dated:___________________________  Signature:________________________________

                                   Signature Guarantee:______________________
                                   (if assigned to another person)

If shares are to be registered in       REGISTERED HOLDER Please print name and
the name of and delivered to a          address Registered Holder:
Person other than the Holder,
please (i) print such Person's
name and address and (ii) provide
a guarantee of your signature:

________________________________        ___________________________________
Name                                    Name

________________________________        ___________________________________
Address                                 Address

Social Security or other Taxpayer
Identification Number, if any

                                      B-12
<PAGE>

                            ELECTION TO SETTLE EARLY

The undersigned Holder of this Stripped Equity Security Unit Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Stripped Equity Security Units evidenced by
this Stripped Equity Security Unit Certificate specified below. The option to
effect Early Settlement may be exercised only with respect to Purchase Contracts
underlying Stripped Equity Security Units with an aggregate Stated Amount equal
to $1,000 or an integral multiple thereof. The undersigned Holder directs that a
certificate for shares of Common Stock deliverable upon such Early Settlement be
registered in the name of, and delivered, together with a check in payment for
any fractional share and any Stripped Equity Security Unit Certificate
representing any Stripped Equity Security Units evidenced hereby as to which
Early Settlement of the related Purchase Contracts is not effected, to the
undersigned at the address indicated below unless a different name and address
have been indicated below. Pledged Notes deliverable upon such Early Settlement
will be transferred in accordance with the transfer instructions set forth
below. If shares are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

Dated:__________________________     Signature:________________________________

                                     Signature Guarantee:______________________

Number of Stripped Equity Security Units evidenced hereby as to which Early
Settlement of the related Purchase Contracts is being elected:

If shares of Common Stock are to be          REGISTERED HOLDER
registered in the name of and delivered
to and Pledged Notes are to be transferred
to a Person other than the Holder, please    Please print name and address of
print such Person's name and address:        Registered Holder:

______________________________________        __________________________________
Name                                          Name

______________________________________        __________________________________
Address                                       Address

Social Security or other Taxpayer Identification Number,
if any

Transfer instructions for Pledged Treasury Securities transferable upon Early
Settlement or a Termination Event:

                                      B-13
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The following increases or decreases in this Global Certificate have been made:

<TABLE>
<CAPTION>

                           Amount of Decrease                            Stated Amount of the
                           in Stated Amount of   Amount of Increase in    Global Certificate
                               the Global         Stated Amount of the     Following Such           Signature of
         Date                 Certificate          Global Certificate    Decrease or Increase    Authorizing Officer
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>                       <C>                    <C>                     <C>                     <C>

</TABLE>

                                      B-14
<PAGE>

                                    EXHIBIT C

                   INSTRUCTION FROM PURCHASE CONTRACT AGENT TO
                                COLLATERAL AGENT

THE BANK OF NEW YORK,
as Collateral Agent
101 Barclay Street
New York, New York 10286
Attn:  Corporate Trust Administration

         Re:   Equity Security Units of DTE ENERGY COMPANY (the "Company")

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

We hereby notify you in accordance with Section [4.1] [4.2] of the Pledge
Agreement, dated as of June 25, 2002 (the "Pledge Agreement") among the Company,
you, as Collateral Agent, Custodial Agent and Securities Intermediary and us, as
Purchase Contract Agent and as attorney-in-fact for the holders of [Equity
Security Units] [Stripped Equity Security Units] from time to time, that the
holder of Equity Security Units and Stripped Equity Security Units listed below
(the "Holder") has elected to substitute [$_____ aggregate principal amount of
Treasury Securities (CUSIP No. 912803AG8)] [$_______ aggregate principal amount
of Notes, the Applicable Ownership Interest of the Treasury Portfolio or the
Applicable Ownership Interest in the Tax Event Treasury Portfolio, as the case
may be,] in exchange for the related [Pledged Notes, the appropriate Pledged
Applicable Ownership Interest of the Treasury Portfolio or the appropriate
Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio, as
the case may be,] [Pledged Treasury Securities] held by you in accordance with
the Pledge Agreement and has delivered to us a notice stating that the Holder
has Transferred [Treasury Securities] [Notes, the appropriate Applicable
Ownership Interest of the Treasury Portfolio or the appropriate Applicable
Ownership Interest in the Tax Event Treasury Portfolio, as the case may be,] to
you, as Collateral Agent. We hereby instruct you, upon receipt of such [Pledged
Treasury Securities] [Pledged Notes, the appropriate Pledged Applicable
Ownership Interest of the Treasury Portfolio or the appropriate Pledged
Applicable Ownership Interest in the Tax Event Treasury Portfolio, as the case
may be,], and upon the payment by such Holder of any applicable fees, to release
the [Notes, the appropriate Applicable Ownership Interest of the Treasury
Portfolio or the appropriate Applicable Ownership Interest in the Tax Event
Treasury Portfolio, as the case may be,] [Treasury Securities] related to such
[Equity Security Units] [Stripped Equity Security Units] to us in accordance
with the Holder's instructions. Capitalized terms used herein but not defined
shall have the meaning set forth in the Pledge Agreement.

Date: _____________________

                                       THE BANK OF NEW YORK,
                                       as Purchase Contract Agent

                                       By:____________________________
                                          Name:
                                          Title:

                                      C-1
<PAGE>

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes, the appropriate Applicable Ownership Interest in
the Treasury Portfolio or the appropriate Applicable Ownership Interest in the
Tax Event Treasury Portfolio] for the [Pledged Notes, the appropriate Pledged
Applicable Ownership Interest in the Treasury Portfolio or the appropriate
Pledged Applicable Ownership Interest in the Tax Event Treasury Portfolio]
[Pledged Treasury Securities]:

Name:__________________________________________________________________________

Social Security or other Taxpayer Identification Number, if any:_______________

Address:_______________________________________________________________________

DTC Account No._______________________________

                                       C-2
<PAGE>

                                    EXHIBIT D

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

THE BANK OF NEW YORK,
as Purchase Contract Agent
101 Barclay Street
New York, New York 10286
Attn:  Corporate Trust Administration
Telecopy:  (212) 896-7298

         Re:   Equity Security Units of DTE ENERGY COMPANY (the "Company")

The undersigned Holder hereby notifies you that it has delivered to The Bank of
New York, as Collateral Agent, Custodial Agent and Securities Intermediary
[$_______ aggregate principal amount of Treasury Securities (CUSIP No.
912803AG8)] [$_______ aggregate principal amount of Notes, the appropriate
Applicable Ownership Interest in the Treasury Portfolio or the appropriate
Applicable Ownership Interest in the Tax Event Treasury Portfolio, as the case
may be] in exchange for the related [Pledged Notes, Pledged Applicable Ownership
Interest in the Treasury Portfolio or the appropriate Pledged Applicable
Ownership Interest in the Tax Event Treasury Portfolio, as the case may be]
[Pledged Treasury Securities] held by the Collateral Agent, in accordance with
Section [4.1] [4.2] of the Pledge Agreement, dated June 25, 2002 (the "Pledge
Agreement"), among you, the Company and the Collateral Agent. The undersigned
Holder has paid the Collateral Agent all applicable fees relating to such
exchange. The undersigned Holder hereby instructs you to instruct the Collateral
Agent to release to you on behalf of the undersigned Holder the [Pledged Notes,
the appropriate Pledged Applicable Ownership Interest in the Treasury Portfolio
or the appropriate Pledged Applicable Ownership Interest in the Tax Event
Treasury Portfolio, as the case may be] [Pledged Treasury Securities] related to
such [Equity Security Units] [Stripped Equity Security Units]. Capitalized terms
used herein but not defined shall have the meaning set forth in the Pledge
Agreement.

Date: ____________________    Signature:___________________________________

                              Signature Guarantee:_________________________

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

Please print name and address of Registered Holder:___________________________

Name:_________________________________________________________________________

Social Security or other Taxpayer Identification Number, if any:______________

Address:______________________________________________________________________

DTC Participant No. _______________________

                                      D-1
<PAGE>

                                    EXHIBIT E

                        NOTICE TO SETTLE BY SEPARATE CASH

THE BANK OF NEW YORK,
as Purchase Contract Agent
101 Barclay Street
New York, New York 10286
Attn:  Corporate Trust Administration
Telecopy:  (212) 896-7298

         Re:   Equity Security Units of DTE ENERGY COMPANY (the "Company")

The undersigned Holder hereby irrevocably notifies you in accordance with
Section 5.4 of the Purchase Contract Agreement dated as of June 25, 2002 among
the Company and yourselves, as Purchase Contract Agent and as Attorney-in-Fact
for the Holders of the Purchase Contracts, that such Holder has elected to pay
to the Collateral Agent, on or prior to 11:00 a.m., New York City time, on the
eighth Business Day immediately preceding the Stock Purchase Date, (in lawful
money of the United States by [certified or cashiers check or] wire transfer, in
each case in immediately available funds), $_________ as the Purchase Price for
the shares of Common Stock issuable to such Holder by the Company under the
related Purchase Contract on the Stock Purchase Date. The undersigned Holder
hereby instructs you to notify promptly the Collateral Agent of the undersigned
Holder's election to make such cash settlement with respect to the Purchase
Contracts related to such Holder's Equity Security Units.

Dated: ____________________    Signature: _________________________________

                               Signature Guarantee: _______________________

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

Please print name and address of Registered Holder:____________________________

Social Security or other Taxpayer Identification Number, if any:_______________

DTC Participant No._____________________

                                      E-1
<PAGE>

                                    EXHIBIT F

                          FORM OF REMARKETING AGREEMENT

                                      F-1

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