Document:

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                                                                EXHIBIT (10)(b)

                          PALISADES NUCLEAR POWER PLANT

                            POWER PURCHASE AGREEMENT

                                     BETWEEN

                         ENTERGY NUCLEAR PALISADES, LLC

                                       AND

                            CONSUMERS ENERGY COMPANY

                            DATED AS OF JULY 11, 2006

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                            POWER PURCHASE AGREEMENT
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
ARTICLE I: DEFINITIONS....................................................     1
   1.1.   Defined Terms...................................................     1
   1.2.   Rules of Interpretation.........................................     8

ARTICLE II: PURCHASE OF CAPACITY, ENERGY, AND ANCILLARY SERVICES..........    10
   2.1.   Capacity Sale and Purchase......................................    10
   2.2.   Energy Sale and Purchase........................................    10
   2.3.   Ancillary Services..............................................    10
   2.4.   Replacement Energy and Replacement Capacity.....................    11
   2.5.   Delivery Point..................................................    13
   2.6.   Entitlement Due to Uprate.......................................    14
   2.7.   Capacity Accreditation..........................................    14
   2.8.   Reactive Power..................................................    15
   2.9.   Station Power Service...........................................    15

ARTICLE III: PAYMENTS.....................................................    15
   3.1.   Purchase Payments...............................................    15
   3.2.   Peak Adjustment Payment.........................................    16

ARTICLE IV: MAINTENANCE AND OPERATION.....................................    16
   4.1.   Scheduled Maintenance...........................................    16
   4.2.   Derate Notices..................................................    18
   4.3.   Other Operations Obligations....................................    18

ARTICLE V: METERING, BILLING AND PAYMENT..................................    19
   5.1.   Metering........................................................    19
   5.2.   Billing and Payment.............................................    21
   5.3.   Scheduling......................................................    22

ARTICLE VI: FORCE MAJEURE.................................................    23
   6.1.   Conditions of Excuse from Performance...........................    23
   6.2.   No Termination; Extension of Term...............................    23
   6.3.   Adjustment Payments.............................................    24

ARTICLE VII: EVENTS OF DEFAULT; REMEDIES..................................    24
   7.1.   List of Default Events..........................................    24
   7.2.   Seller's Security...............................................    25
   7.3.   Buyer's Security................................................    26
   7.4.   No Consequential Damages........................................    27

ARTICLE VIII: REPRESENTATIONS AND WARRANTIES..............................    27
   8.1.   Representations and Warranties of Buyer.........................    27
   8.2.   Representations and Warranties of Seller........................    28
</TABLE>

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<TABLE>
<S>                                                                          <C>
ARTICLE IX: INDEMNITY AND LIMITATION OF LIABILITY.........................    29
   9.1.   Title and Risk of Loss..........................................    29
   9.2.   Indemnification.................................................    29
   9.3.   No Partnership..................................................    30
   9.4.   Responsibility for Employees....................................    30

ARTICLE X: TERM...........................................................    30
   10.1.  Term............................................................    30
   10.2.  Termination.....................................................    30
   10.3.  Effect of Termination...........................................    31

ARTICLE XI: RECORDS.......................................................    31
   11.1.  Inspection of Records...........................................    31

ARTICLE XII: ADMINISTRATIVE COMMITTEE.....................................    31
   12.1.  Purpose.........................................................    31
   12.2.  Membership......................................................    32
   12.3.  Meetings........................................................    32
   12.4.  Functions.......................................................    32
   12.5.  Expenses........................................................    32

ARTICLE XIII: NOTICES.....................................................    32
   13.1.  Notices in Writing..............................................    32
   13.2.  Date of Notification............................................    33
   13.3.  Oral Notice in Emergency........................................    33

ARTICLE XIV: CONFIDENTIALITY..............................................    33
   14.1.  Non-Disclosure to Third Parties.................................    33
   14.2.  Disclosure Permitted............................................    34
   14.3.  Survival of Confidentiality.....................................    34

ARTICLE XV: INSURANCE.....................................................    34
   15.1.  Coverage and Amounts of Seller and Buyer........................    34
   15.2.  Coverage for Full Term..........................................    35

ARTICLE XVI: ASSIGNMENT...................................................    35
   16.1.  Binding Effect..................................................    35
   16.2.  General.........................................................    36
   16.3.  Assignment to an Affiliate......................................    36
   16.4.  Assignment to Lenders...........................................    36

ARTICLE XVII: MISCELLANEOUS...............................................    36
   17.1.  Dispute Resolution..............................................    36
   17.2.  Recording Telephone Conversations...............................    37
   17.3.  Compliance with Laws............................................    37
   17.4.  Taxes and Other Charges.........................................    38
   17.5.  Future Attributes...............................................    38
</TABLE>

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<TABLE>
<S>                                                                          <C>
   17.6.  Financial Transmission Rights...................................    38
   17.7.  Governing Law; Venue............................................    39
   17.8.  Entire Agreement; Amendment.....................................    39
   17.9.  No Implied Waiver...............................................    39
   17.10. Severability....................................................    40
   17.11. No Exclusivity/Dedication of Assets.............................    40
   17.12. Expenses........................................................    40
   17.13. Counterparts....................................................    40
   17.14. Survival........................................................    40
   17.15. Third-Party Beneficiary.........................................    41
   17.16. Mobile-Sierra...................................................    41
   17.17. Forward Contract................................................    41
</TABLE>

          Exhibits

Exhibit A Capacity and Energy Charges
Exhibit B Buyer's Capacity Amount
Exhibit C Capacity and Energy Charge Shaping Factors
Exhibit D Diagram of Billing Meters
Exhibit E Form of Seller's Guaranty
Exhibit F Form of Buyer's Guaranty
Exhibit G Peak Adjustment Payment
Exhibit H Scheduling Procedures

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                            POWER PURCHASE AGREEMENT

     This POWER PURCHASE AGREEMENT is made and entered into as of July 11, 2006,
by and between ENTERGY NUCLEAR PALISADES, LLC, a Delaware limited liability
company ("Seller"), and CONSUMERS ENERGY COMPANY, a Michigan corporation
("Buyer") (hereinafter the parties hereto are sometimes referred to collectively
as the "Parties," or individually as a "Party").

                                   WITNESSETH:

     WHEREAS, Buyer is a public utility which operates a system for generation
and distribution of electric power in the State of Michigan; and

     WHEREAS, Buyer intends to transfer to Seller all of its rights, title, and
interests in and to the Palisades Nuclear Power Plant, an approximately 798 MW
(net) nuclear-powered electric generating facility and related assets located in
South Haven, Michigan, NRC Operating License No. DPR-20 (the "Facility"); and

     WHEREAS, in order to continue serving its wholesale and retail customers
following transfer of Buyer's interests in the Facility to Seller, Buyer desires
to purchase, and Seller desires to sell, Capacity, Energy, and all associated
Ancillary Services, on a unit contingent basis, on the terms, and subject to the
conditions, set forth below.

     NOW THEREFORE, in consideration of the mutual agreements contained herein,
the Parties agree as follows:

                             ARTICLE I: DEFINITIONS

1.1. DEFINED TERMS

     As used in this Agreement, the following terms shall have the following
     meanings:

1.   "ACCREDITED CAPACITY" shall mean Capacity or Replacement Capacity that (a)
     meets the resource adequacy requirements in Module E of the MISO Tariff, as
     amended or superseded ("Module E"), and (b) is measured in accordance with
     the "Criteria and Method For the Uniform Rating of Generating Equipment"
     set forth in ECAR 4; provided, however, that if either requirement in (a)
     or (b) is inapplicable, or if both are inapplicable, then Accredited
     Capacity shall mean Capacity or Replacement Capacity that meets the
     applicable requirements for Capacity (the "Effective Capacity
     Requirements") of any Governing Authority having jurisdiction over Buyer,
     including any Capacity from the Facility that may be deemed available under
     the Effective Capacity Requirements even if the Facility is not operating.

2.   "ADMINISTRATIVE COMMITTEE" shall have the meaning set forth in Article XII.

3.   "AFFILIATE" shall mean, with respect to any Person, any other Person (other
     than an individual) that, directly or indirectly, through one or more
     intermediaries, controls, or is

<PAGE>

     controlled by, or is under common control with, such Person. For this
     purpose, "control" means the direct or indirect ownership of fifty percent
     (50%) or more of the outstanding capital stock or other equity interests
     having ordinary voting power.

4.   "AGREEMENT" shall mean this Power Purchase Agreement entered into by Seller
     and Buyer, including all Exhibits and any and all subsequent modifications
     or amendments hereto made in accordance herewith.

5.   "ALTERNATE DELIVERY POINT" shall have the meaning set forth in Section
     2.5(b).

6.   "ANCILLARY SERVICES" shall mean those services during the Term that are
     necessary to support the transmission of electric capacity and energy, and
     support the generation or transmission of Energy from the Facility while
     maintaining reliable operation of the transmission system, associated with
     or otherwise corresponding to the Capacity of the Facility and/or output of
     Energy at such time, which Ancillary Services shall include but not be
     limited to Reactive Power, regulation, and frequency response service.

7.   "ASSET SALE AGREEMENT" shall mean that certain Asset Sale Agreement between
     Buyer and Seller, dated as of the date hereof.

8.   "AUTHORIZATION" shall mean any license, permit, approval, consent, filing,
     waiver, exemption, variance, clearance, entitlement, allowance, franchise,
     or other authorization, whether corporate, governmental or otherwise.

9.   "BILLING CYCLE" shall mean each calendar month during the Term and any
     partial calendar month at the beginning or end of the Term.

10.  "BILLING METERS" means the bi-directional metering devices designated on
     Exhibit D as meters numbered one through four.

11.  "BUSINESS DAY" shall mean any day other than Saturday, Sunday, or any NERC
     holiday.

12.  "BUYER" shall have the meaning set forth in the preamble hereto.

13.  "BUYER'S CAPACITY AMOUNT" shall mean, for any given time, the applicable
     amount calculated in accordance with Exhibit B. The amount specified in the
     column entitled "Buyer's Capacity Amount" in Exhibit B shall equal the
     product of (a) the Capacity rating of the Facility, which shall be set
     forth in the column entitled "Capacity of the Facility" in Exhibit B, and
     determined in accordance with the applicable requirements for Capacity of
     ECAR 4 (or with the Effective Capacity Requirements, if applicable), and
     (b) the Buyer's Entitlement, which shall be set forth in the column
     entitled "Buyer's Entitlement" in Exhibit B, and determined in accordance
     with Section 2.6. The Capacity of the Facility, and the associated amounts
     in the column in Exhibit B entitled "Capacity of the Facility," shall be
     revised during the Term, upon written notice from Seller to Buyer providing
     the results of any net capability testing conducted of the Facility,
     whether or not conducted as part of an Uprate, in accordance with ECAR 4
     (or with the Effective Capacity Requirements, if applicable).

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14.  "BUYER'S GUARANTOR" shall have the meaning set forth in Section 7.3.

15.  "BUYER'S GUARANTY" shall have the meaning set forth in Section 7.3.

16.  "BUYER'S ENTITLEMENT" shall mean the percentage of Capacity, Net Energy
     Output and Ancillary Services allocated to Buyer pursuant to this
     Agreement, which as of the Effective Date is 100%, as may subsequently be
     reduced pursuant to Section 2.6.

17.  "CALENDAR YEAR" shall mean a twelve-month period beginning January 1 and
     ending December 31.

18.  "CAPACITY" shall mean, on or as of any date of determination, a power
     generation unit's capability to generate a specific amount of electrical
     energy at a given point in time.

19.  "CAPACITY PAYMENT" shall have the meaning set forth in Section 3.1(a).

20.  "CLAIMS" shall mean all third party claims or actions, threatened or filed
     and, whether groundless, false, fraudulent or otherwise, that directly or
     indirectly relate to the subject matter of an indemnity, and the resulting
     losses, damages, expenses, reasonable attorneys' fees and court costs.

21.  "CPNODE" shall have the meaning ascribed to such term by MISO in the
     applicable MISO Tariff or related documents, as such relevant meaning or
     relevant term may be modified from time to time.

22.  "DEFAULT INTEREST RATE" shall mean, with respect to all obligations to pay
     sums due under this Agreement, other than cash collateral held as security,
     the Interest Rate plus 200 basis points.

23.  "DELIVERED ENERGY" shall mean, for any period of time, the sum of Buyer's
     Entitlement of Net Energy Output plus Replacement Energy.

24.  "DELIVERY POINT" shall have the meaning set forth in Section 2.5.

25.  "DERATE" shall mean an event or condition which causes the Buyer's
     Entitlement of Net Energy Output to be less than ninety-five percent (95%)
     of the associated Buyer's Capacity Amount.

26.  "DERATE NOTICE" shall have the meaning set forth in Section 4.2.

27.  "DNR" shall mean a Designated Network Resource as defined under applicable
     MISO Tariffs and related documents, as amended or superseded. The term DNR
     shall apply to both the Facility and to the resource selected by Seller,
     and accepted by MISO, to provide Replacement Capacity for Buyer, in
     accordance with the terms and conditions of this Agreement.

28.  "DOWNGRADE EVENT" shall mean, with respect to the Seller's Guarantor or the
     Buyer's Guarantor, any period of time when such party's unsecured, senior
     long-term debt

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     obligations (not supported by third-party credit enhancements) are rated
     below Baa3 by Moody's Investment Services, Inc. (or its successor), and
     rated below BBB- by Standard & Poor's Rating Group (or its successor).

29.  "ECAR 4" shall mean ECAR Document No. 4, "Criteria and Method for the
     Uniform Rating of Generating Equipment," which is an Organizational
     Standard of ReliabilityFirst Corporation, the successor organization to the
     East Central Area Coordination Agreement organization, as such document may
     be amended, superseded or adopted in whole or in part by ReliabilityFirst
     Corporation.

30.  "EFFECTIVE DATE" shall mean the Closing Date, as defined in the Asset Sale
     Agreement.

31.  "ENERGY" shall mean electric energy expressed in MWh.

32.  "ENERGY PAYMENT" shall have the meaning set forth in Section 3.1(b).

33.  "EST" shall mean Eastern Standard Time.

34.  "FACILITY" shall have the meaning set forth in the second recital of this
     Agreement.

35.  "FERC" shall mean the Federal Energy Regulatory Commission or any successor
     thereto.

36.  "FINANCIAL BILATERAL TRANSACTION" shall have the meaning ascribed to such
     term by MISO in the applicable MISO Tariff or related documents, as such
     relevant meaning or relevant term may be modified from time to time.

37.  "FORCE MAJEURE" shall mean an event or circumstance which prevents one
     Party from performing some or all of its obligations hereunder that (a) is
     not within the control of the Party relying thereon, and (b) could not have
     been prevented or avoided by such Party through the exercise of reasonable
     diligence. Subject to the foregoing, Force Majeure may include, without
     limitation, an act of God, war, insurrection, riot, terrorism or shutdowns
     or reductions in Facility output or capabilities required, caused by, or
     related to, directives, orders or requirements of any Governing Authority;
     provided, however, that the following acts, events or causes shall in no
     event constitute an event of Force Majeure: (i) any lack of profitability
     to a Party or any losses incurred by a Party or any other financial
     consideration of a Party; (ii) unavailability of funds or financing; (iii)
     an event caused by conditions of national or local economics or markets;
     and (iv) any failure of equipment which is not itself directly caused by an
     event which would otherwise independently constitute a Force Majeure.

38.  "GENERATION OFFER" shall have the meaning ascribed to such term by MISO in
     the applicable MISO Tariff or related documents, as such relevant meaning
     or relevant term may be modified from time to time.

39.  "GOOD UTILITY PRACTICES" shall mean any applicable practices, methods, and
     acts engaged in or approved by a significant portion of (a) as to Seller,
     the nuclear power electric generating industry, or (b) as to Buyer, the
     electric utility industry, during the relevant

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     time period, or the practices, methods, and acts which, in the exercise of
     reasonable judgment by a prudent nuclear operator (or prudent utility
     operator, if applicable to Buyer) in light of the facts known at the time
     the decision was made, could have been expected to accomplish the desired
     result at a reasonable cost consistent with good business practices,
     reliability, safety, expedition, and the requirements of any Governing
     Authority having jurisdiction. Without limitation of the foregoing, "Good
     Utility Practices" shall include the applicable operating policies,
     standards, criteria, and/or guidelines of NERC, MISO, METC, NRC, RFC and
     any other Governing Authority. "Good Utility Practices" is not intended to
     be limited to the optimum practice, method, or act to the exclusion of all
     others, but rather to the acceptable practices, methods, or acts generally
     accepted in (a) as to Seller, the nuclear power electric generating
     industry, or (b) as to Buyer, the electric utility industry.

40.  "GOVERNING AUTHORITY" shall mean the federal government of the United
     States, and any state, county or local government, and any regulatory
     department, body, political subdivision, commission, bureau,
     administration, agency, instrumentality, ministry, court, judicial or
     administrative body, taxing authority, or other authority of any of the
     foregoing (including, without limitation, any corporation or other entity
     owned or controlled by any of the foregoing), MISO, METC, NERC, RFC, NRC,
     and any other regional reliability council, the Transmission Provider and
     any other regional transmission organization, in each case having
     jurisdiction over either or both of the Parties, the Facility, or the
     Transmission Provider's transmission system, whether acting under express
     or delegated authority.

41.  "INTERCONNECTION AGREEMENT" shall mean, with respect to the Facility, the
     interconnection agreement by and among Seller, MISO and METC, and any other
     agreement by and among Seller, MISO and METC, governing the interconnection
     of the Facility to the MISO or METC system and transmission of Energy from
     the Facility into the MISO or METC system, as amended or superseded.

42.  "INTERCONNECTION POINT" shall mean, with respect to the Facility, the
     Point(s) of Interconnection described in the Interconnection Agreement,
     unless the Parties specifically agree otherwise in writing.

43.  "INTEREST RATE" shall mean, the one-month LIBOR rate as published in The
     Wall Street Journal for the then current month, or in a comparable
     publication.

44.  "LAW" shall mean any law, statute, rule, regulation, or ordinance issued or
     promulgated by a Governing Authority.

45.  "LETTER(S) OF CREDIT" means one or more irrevocable, transferable standby
     Letters of Credit issued by a U.S. commercial bank or a foreign bank with a
     U.S. branch with such bank having a credit rating of at least A- from S&P
     or A3 from Moody's, in a form acceptable to the Party in whose favor the
     Letter of Credit is issued. Costs of a Letter of Credit shall be borne by
     the applicant for such Letter of Credit.

46.  "LMP" shall mean the Locational Marginal Price at the relevant CPNode for
     the relevant

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     hour(s) and day(s), as posted by MISO.

47.  "MAINTENANCE SCHEDULE" shall have the meaning set forth in Section 4.1(a).

48.  "MERCHANT OPERATIONS CENTER" shall mean that operations center responsible
     for monitoring, coordinating and scheduling the outages and dispatch of
     generation facilities.

49.  "METERING PARTY" shall have the meaning set forth in Section 5.1(a).

50.  "METC" shall mean the Michigan Electric Transmission Company, or any
     successor entity.

51.  "MISO" shall mean the Midwest Independent Transmission System Operator,
     Inc., or any successor entity.

52.  "MISO TARIFF" shall mean the "Open Access Transmission and Energy Market
     Tariff for the Midwest Independent Transmission System Operator, Inc.," as
     amended or superseded.

53.  "MPSC" shall have the meaning set forth in Section 10.l.

54.  "MWH" shall mean megawatt hours.

55.  "NERC" shall mean the North American Electric Reliability Council, or any
     successor entity.

56.  "NET ENERGY OUTPUT" shall mean, for any hour during a Billing Cycle and
     with respect to the Facility, (a) if the Facility is operating, total
     Energy output of the Facility as measured at the Delivery Point, less
     Station Power Service Load, which amounts shall be calculated at the
     applicable Billing Meters, and provided that Net Energy Output can in no
     event be less than zero, or (b) if the Facility is not operating, zero. In
     accordance with the foregoing, if the Facility is operating, Net Energy
     Output is equal to the sum of the Billing Meter data for "in" flows less
     the sum of the Billing Meter data for "out" flows; where "in" flows are
     those flows having a direction designated as being from the Facility to the
     transmission system and "out" flows are those flows having a direction
     designated as being from the transmission system to the Facility. The
     absolute value of the data from each Billing Meter shall be used to
     calculate Net Energy Output.

57.  "NRC" shall mean the Nuclear Regulatory Commission, or any successor
     entity.

58.  "OFF-PEAK" shall mean all hours that are not On-Peak hours.

59.  "ON-PEAK" shall mean hour ending 0700 EST through hour ending 2200 EST,
     Monday through Friday, excluding NERC holidays.

60.  "OPERATING DAY" shall have the meaning ascribed to such term by MISO in the
     applicable MISO Tariff or related documents, as such relevant meaning or
     relevant term may be modified from time to time.

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61.  "PARTY" shall have the meaning set forth in the preamble hereto.

62.  "PEAK ADJUSTMENT PAYMENT" shall have the meaning set forth in Section 3.2.

63.  "PERSON" shall mean any legal or natural person, including any individual,
     corporation, partnership, limited liability company, joint stock company,
     association, joint venture, trust, Governing Authority or international
     body or agency, or other entity.

64.  "REACTIVE POWER" shall mean the capability of the Facility when operating
     to produce or absorb reactive power.

65.  "REGULATORY EVENT" shall have the meaning set forth in Section 17.10.

66.  "REPLACEMENT CAPACITY" shall mean, at any time, Accredited Capacity
     supplied to Buyer by Seller from any DNR other than the Facility to
     fulfill, in whole or in part, Seller's obligation to supply Accredited
     Capacity under this Agreement. Replacement Capacity shall not exceed the
     Buyer's Capacity Amount. In addition, Replacement Capacity shall (a) not be
     committed for sale to any third party, and (b) be available at all times to
     serve Buyer's Capacity requirements.

67.  "REPLACEMENT ENERGY" shall mean, at any time, Energy supplied to Buyer by
     Seller from any generation resource other than the Facility to fulfill, in
     part or in whole, Seller's obligation to deliver Energy which, when
     combined with Buyer's Entitlement of Net Energy Output, shall not exceed
     the Buyer's Capacity Amount applicable to Buyer at such time under this
     Agreement.

68.  "RFC" shall mean the ReliabilityFirst Corporation, or any successor entity.

69.  "SCADA" shall mean supervisory, control and data acquisition technology and
     equipment.

70.  "SCHEDULED" or "SCHEDULING" means the actions of Seller, Buyer and/or their
     designated representatives, of notifying, requesting and confirming to each
     other and any third party the quantity and type of Energy to be delivered
     on any Operating Day (a) submitted to MISO by Seller as Seller's Generation
     Offer from the Facility for a relevant Operating Day during the Term
     pursuant to this Agreement, or (b) submitted to MISO by Seller and accepted
     by Buyer as a Financial Bilateral Transaction for a relevant Operating Day
     during the Term pursuant to this Agreement.

71.  "SCHEDULED MAINTENANCE OUTAGE" shall have the meaning set forth in Section
     4.1(a).

72.  "SELLER" shall have the meaning set forth in the preamble hereto.

73.  "SELLER'S GUARANTOR" shall have the meaning set forth in Section 7.2.

74.  "SELLER'S GUARANTY" shall have the meaning set forth in Section 7.2.

75.  "STATION POWER SERVICE LOAD" shall mean, for the Facility and for any hour
     during a

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     Billing Cycle, the sum of the following items: (a) the station start-up
     transformer load for that hour; (b) the safeguard transformer load for that
     hour; and (c) the main transformer load for that hour.

76.  "SUMMER MAINTENANCE OUTAGE" shall have the meaning set forth in Section
     4.1(b)(i).

77.  "TARGET CAPACITY FACTOR" shall mean 0.9500.

78.  "TAX" shall mean all taxes, charges, fees, levies, penalties or other
     assessments imposed by any Governing Authority, including income, gross
     receipts, single business, excise, real or personal property, sales,
     transfer, customs, duties, franchise, payroll, withholding, social
     security, receipts, license, stamp, occupation, employment, or other taxes,
     including any interest, penalties or additions attributable thereto, and
     any payments to any state, local, provincial or foreign taxing authorities
     in lieu of any such taxes, charges, fees, levies or assessments.

79.  "TERM" shall mean the period from and after the Closing as defined in the
     Asset Sale Agreement to and including the date and time on which this
     Agreement is terminated in accordance with the terms hereof.

80.  "TERMINATION DATE" shall have the meaning set forth in Section 10.1.

81.  "TRANSMISSION OWNER" shall mean METC.

82.  "TRANSMISSION PROVIDER" shall mean the MISO.

83.  "UPRATE" shall mean the increase in the maximum power level at which the
     Facility may operate (a) under its NRC license as such license may be
     amended after the date hereof and/or (b) any increase in the power level at
     which the Facility may operate as a result of the replacement or
     modification of the Facility's moisture-separator reheaters.

1.2. RULES OF INTERPRETATION

     (a)  Unless otherwise required by the context in which any term appears:

          (i)  Capitalized terms used in this Agreement shall have the meanings
               specified in this Article.

          (ii) The singular shall include the plural, the plural shall include
               the singular, and the masculine shall include the feminine and
               neuter.

          (iii) References to "Articles," "Sections," or "Exhibits" shall be to
               articles, sections, or exhibits of this Agreement, and references
               to "Paragraphs" or "Clauses" shall be to separate paragraphs or
               clauses of the section or subsection in which the reference
               occurs.

          (iv) The words "herein," "hereof" and "hereunder" shall refer to this
               Agreement as a whole and not to any particular section or
               subsection of

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               this Agreement; and the words "include," "includes" or
               "including" shall mean "including, but not limited to."

          (v)  The term "day" shall mean a calendar day, commencing at 12:00
               a.m. (EST). The term "week" shall mean any seven consecutive day
               period, and the term "month" shall mean a calendar month;
               provided that when a period measured in months commences on a
               date other than the first day of a month, the period shall run
               from the date on which it starts to the corresponding date in the
               next month and, as appropriate, to succeeding months thereafter.
               Whenever an event is to be performed or a payment is to be made
               by a particular date and the date in question falls on a day
               which is not a Business Day, the event shall be performed, or the
               payment shall be made, on the next succeeding Business Day;
               provided, however, that all calculations shall be made regardless
               of whether any given day is a Business Day and whether or not any
               given period ends on a Business Day.

          (vi) All references to a particular entity shall include such entity's
               permitted successors and permitted assigns unless otherwise
               specifically provided herein.

          (vii) All references herein to any Law or to any contract or other
               agreement shall be to such Law, contract or other agreement as
               amended, supplemented or modified from time to time unless
               otherwise specifically provided herein.

     (b)  The titles of the articles and sections herein have been inserted as a
          matter of convenience of reference only, and shall not control or
          affect the meaning or construction of any of the terms or provisions
          hereof.

     (c)  This Agreement was negotiated and prepared by both Parties with advice
          of counsel to the extent deemed necessary by each Party; the Parties
          have agreed to the wording of this Agreement; and none of the
          provisions hereof shall be construed against one Party on the ground
          that such Party is the author of this Agreement or any part hereof.

     (d)  The Exhibits hereto are incorporated in and are intended to be a part
          of this Agreement; provided, however, that in the event of a conflict
          between the terms of any Exhibit and the terms of the remainder of
          this Agreement, the terms of the remainder of this Agreement shall
          take precedence.

                                       9

<PAGE>

                  ARTICLE II: PURCHASE OF CAPACITY, ENERGY, AND
                               ANCILLARY SERVICES

2.1. CAPACITY SALE AND PURCHASE

     Subject to the terms and conditions of this Agreement, Seller agrees to
     sell and supply to Buyer, and Buyer agrees to accept and purchase from
     Seller, Buyer's Entitlement of all Accredited Capacity that Seller has
     available from the Facility for the duration of the Term. Seller agrees to
     sell and supply, and Buyer agrees to accept and purchase from Seller, all
     Accredited Capacity associated with Replacement Capacity that Seller
     supplies to Buyer pursuant to the terms of this Agreement. Buyer's
     obligation to pay for Accredited Capacity sold and supplied by Seller to
     Buyer for any period of time shall be based on the aggregate amount of
     Delivered Energy for that period of time.

2.2. ENERGY SALE AND PURCHASE

     Subject to the terms and conditions of this Agreement, for the duration of
     the Term, Seller shall sell and deliver to Buyer at the Delivery Point, and
     Buyer shall accept and purchase, Buyer's Entitlement of the Net Energy
     Output of the Facility. Buyer also agrees to accept and purchase all
     Replacement Energy that Seller delivers to Buyer pursuant to the terms of
     this Agreement. The amount of all Energy sold and delivered by Seller and
     accepted and purchased by Buyer pursuant to this Section 2.2, for any
     period of time, shall be the aggregate amount of Delivered Energy for such
     period of time.

2.3. ANCILLARY SERVICES

     (a)  The sale of Capacity and Energy hereunder from the Facility to Buyer
          shall include the Ancillary Services associated with Buyer's
          Entitlement of such Capacity and Energy from the Facility. Seller
          agrees to provide and/or execute any documents or agreements necessary
          to transfer to Buyer any revenue in excess of revenues from the sale
          of Energy and Capacity under this Agreement, and any other benefits
          and rights, received by Seller in providing such Ancillary Services.

     (b)  To the extent that Seller's unexcused failure to deliver Ancillary
          Services to Buyer results in any increased cost or penalty incurred by
          Buyer, Seller shall reimburse Buyer for any such increased cost or
          penalty. The amount of such cost or penalty to be reimbursed shall not
          exceed an amount equal to the increased costs or penalties actually
          incurred by Buyer. In the event that during the Term there exists a
          market for the purchase and sale of Ancillary Services, then (i) if
          Seller fails to provide an Ancillary Service required to be delivered
          hereunder from the Facility, Seller shall use commercially reasonable
          efforts to provide Buyer with a replacement for such Ancillary Service
          and (ii) if Seller is unsuccessful in satisfying its obligation under
          clause (i), Seller shall reimburse Buyer for the market-clearing price
          for such undelivered Ancillary Service to the extent such
          market-clearing price exceeds those amounts already due from Seller

                                       10

<PAGE>

          pursuant to this Section 2.3(b).

2.4. REPLACEMENT ENERGY AND REPLACEMENT CAPACITY

     Subject to the provisions of this Agreement, Seller may provide Buyer with
     Replacement Energy and Replacement Capacity and/or Accredited Capacity from
     the Facility as set forth below in this Section 2.4 during a Derate with a
     duration of more than one (1) day, including a Derate caused by a Scheduled
     Maintenance Outage, a Summer Maintenance Outage, or any other scheduled
     outage of the Facility. If Seller supplies Replacement Capacity and/or
     Accredited Capacity from the Facility without also simultaneously
     delivering Replacement Energy, Seller shall be deemed as not having
     supplied Replacement Capacity and as not having delivered Replacement
     Energy. If Seller delivers Replacement Energy without also simultaneously
     supplying Replacement Capacity and/or Accredited Capacity from the
     Facility, Seller shall be deemed as not having supplied Replacement
     Capacity and as not having delivered Replacement Energy. Seller may provide
     Replacement Energy from a generation resource that differs from the DNR
     selected by Seller to supply Replacement Capacity, if any.

     (a)  Notices to Supply Replacement Capacity and Deliver Replacement Energy

          If the event or condition constituting the Derate is an event or
          condition other than a Scheduled Maintenance Outage, Summer
          Maintenance Outage, or any other scheduled outage of the Facility,
          Seller shall notify Buyer's Merchant Operations Center of Seller's
          election in accordance with Section 2.4(b) below to provide or not to
          provide Replacement Capacity (to the extent not supplying Accredited
          Capacity from the Facility) and Replacement Energy no later than the
          second Business Day following the day that the Derate commenced.

          If the event or condition constituting the Derate is a Scheduled
          Maintenance Outage, a Summer Maintenance Outage, or any other
          scheduled outage of the Facility, Seller shall notify Buyer's Merchant
          Operations Center of Seller's election in accordance with Section
          2.4(b) below to provide or not to provide Replacement Capacity (to the
          extent not supplying Accredited Capacity from the Facility) and
          Replacement Energy no later than two (2) Business Days prior to the
          scheduled commencement of such Scheduled Maintenance Outage, Summer
          Maintenance Outage, or other scheduled outage of the Facility.

     (b)  Seller's Replacement Capacity and Replacement Energy Options

          Seller shall have the option of electing to provide: (i) Replacement
          Capacity (to the extent not supplying Accredited Capacity from the
          Facility) and Replacement Energy on a weekly basis, (ii) Replacement
          Capacity (to the extent not supplying Accredited Capacity from the
          Facility) and Replacement Energy for the expected duration of the
          Derate, or (iii) no Replacement Capacity and Replacement Energy for
          the expected duration of the Derate; provided, however, that with
          respect to a Derate other than a Scheduled Maintenance Outage, a
          Summer Maintenance Outage, or another scheduled outage of the
          Facility, Replacement Capacity (to the extent not supplying Accredited
          Capacity from the Facility) and Replacement

                                       11

<PAGE>

          Energy, if provided, must be provided for the remaining duration of
          the Derate commencing with the date that Buyer's Merchant Operations
          Center is notified in accordance with Section 2.4(a) above.
          Notwithstanding anything else in this Agreement to the contrary, if a
          Derate occurs in the month of July or August and is expected to have a
          duration in excess of one (1) week during any part of that two-month
          period, then Seller shall not have option (i) above with respect to
          Replacement Capacity and Replacement Energy but will have options (ii)
          and (iii) above. Notwithstanding the foregoing, Seller's only option
          with respect to a Summer Maintenance Outage is to provide Replacement
          Capacity (to the extent not supplying Accredited Capacity from the
          Facility) and Replacement Energy on a continuous basis for the
          duration of such an outage equal to the Buyer's Capacity Amount.

     (c)  Replacement Energy Scheduling

          Any Replacement Energy Scheduled hereunder shall be Scheduled in
          accordance with Section 5.3, subject to the following:

          (i)  Seller shall provide notice to Buyer of the proposed source and
               Delivery Point (or Alternate Delivery Point, as the case may be)
               of the Replacement Energy by the required time for notices to be
               provided to Buyer pursuant to Section 2.4(a) above; and,

          (ii) Replacement Energy may only be Scheduled and delivered on a
               continuous basis in either (A) a single fixed quantity or (B) a
               quantity varied to reflect expected changes in the Buyer's
               Entitlement of Net Energy Output of the Facility (e.g., changes
               in Facility output or ramp rates or expected resolution of
               outages) such that the aggregate of such Replacement Energy and
               Buyer's Entitlement of Net Energy Output of the Facility will
               result in a single, fixed quantity.

     (d)  Failure to Schedule/Deliver

          If Seller fails to deliver or cause to be delivered all or part of the
          Replacement Energy that is Scheduled in accordance with Section 2.4(c)
          above, or fails to Schedule Replacement Energy in accordance with
          Section 2.4(c) above after providing the requisite notice under
          Section 2.4(a), and such failure is not excused under the terms of
          this Agreement, then Seller shall pay to Buyer, within ten (10)
          Business Days of invoice receipt therefore, an amount equal to the
          positive difference, if any, between (i) the cost incurred by Buyer
          acting in a commercially reasonable manner to replace the Replacement
          Energy not delivered or Scheduled by Seller, including the cost
          incurred by Buyer in purchasing Energy to replace, at the Delivery
          Point, the Replacement Energy not delivered or Scheduled by Seller in
          either a bilateral transaction or the market price at the Delivery
          Point, plus additional transmission charges, if any, reasonably
          incurred by Buyer for the delivery of the Energy to the Delivery
          Point, and (ii) the cost (using the Energy Charge) that Buyer would
          have incurred under this Agreement had the

                                       12

<PAGE>

          Replacement Energy been delivered or Scheduled. Any invoice submitted
          by Buyer to Seller pursuant to this Section 2.4(d) shall include a
          written statement explaining in reasonable detail the calculation of
          the amount due from Seller.

          If Buyer fails to Schedule, receive or cause to be received all or
          part of the Replacement Energy that is Scheduled by Seller in
          accordance with Section 2.4 herein, and such failure is not excused
          under the terms of this Agreement, then Buyer shall pay to Seller,
          within ten (10) Business Days of invoice receipt therefore, an amount
          equal to the negative difference, if any, between (i) the amount
          received by Seller acting in a commercially reasonable manner in the
          reselling at the Delivery Point any Replacement Energy not received by
          Buyer, including the amount received by Seller in reselling any
          Replacement Energy, at the Delivery Point, not received by Buyer in
          either a bilateral transaction or the market price at the Delivery
          Point, less additional transmission charges, if any, and (ii) the
          amount (using the Energy Charge) that Seller would have received under
          this Agreement had the Replacement Energy been received by Buyer. Any
          invoice submitted by Seller to Buyer pursuant to this Section 2.4(d)
          shall include a written statement explaining in reasonable detail the
          calculation of the amount due from Buyer.

     (e)  Failure to Supply

          Seller shall have the option to supply Replacement Capacity to Buyer
          in accordance with this Agreement, provided that the combined amount
          of Capacity supplied from the Facility and the Replacement Capacity is
          equal to or less than the Buyer's Capacity Amount. If Seller fails to
          supply Replacement Capacity (to the extent it is not supplying
          Accredited Capacity from the Facility) after providing the requisite
          notice under Section 2.4(a), and such failure is not excused under the
          terms of this Agreement, then Seller shall pay Buyer, within ten (10)
          Business Days of invoice receipt therefore, an amount equal to the
          positive difference, if any, between (i) the cost incurred by Buyer
          acting in a commercially reasonable manner to replace the Replacement
          Capacity not supplied by Seller, including the cost incurred by Buyer
          in purchasing Capacity to replace the Replacement Capacity not
          supplied by Seller in either a bilateral transaction or the market
          price at the Delivery Point, and (ii) the cost (using the Capacity
          Charge) that Buyer would have incurred under this Agreement had the
          Replacement Capacity been supplied. Any invoice submitted by Buyer to
          Seller pursuant to this Section 2.4(e) shall include a written
          statement explaining in reasonable detail the calculation of the
          amount due from Seller.

     (f)  When supplying Replacement Energy and Replacement Capacity, Seller
          shall not be required to supply Ancillary Services with respect
          thereto.

2.5. DELIVERY POINT

     (a)  If the Facility is the generation source of Energy to be delivered to
          Buyer hereunder, then the "Delivery Point" for such Energy is the
          CPNode that

                                       13

<PAGE>

          corresponds to the Interconnection Point for the main transformer.

     (b)  If the Facility is not the generation source of Energy to be delivered
          to Buyer hereunder (i.e., if Replacement Energy is being supplied),
          then the "Delivery Point" for the Replacement Energy shall be,
          pursuant to the Seller's choice, any of: (i) the CPNode that
          corresponds to the Interconnection Point for the main transformer,
          (ii) any other CPNode located within the METC Sub-Control Area, or
          (iii) the CPNode that corresponds to the Buyer's Load Zone as defined
          by MISO ((ii) or (iii) being the "Alternate Delivery Point").

     (c)  In the event that Seller chooses to deliver Replacement Energy to an
          Alternate Delivery Point permitted by Section 2.5(b) above, Seller
          shall reimburse Buyer for any additional costs (net of any savings)
          incurred by Buyer (relative to that which would have been incurred by
          Buyer if such delivery had been made to the CPNode that corresponds to
          the Interconnection Point) as a result of the delivery of such
          Replacement Energy, including, but not limited to, LMP differentials,
          transmission costs, imbalance penalties or charges, scheduling
          penalties or fees, redispatch costs, cash out charges, congestion
          management fees, Ancillary Service costs associated with the
          incremental transmission, line losses and similar costs, regulation
          and frequency response charges, voltage support charges or any similar
          penalties, fees or charges assessed by Transmission Provider for
          failure to satisfy the Transmission Provider's balance, nomination
          and/or scheduling requirements.

2.6. ENTITLEMENT DUE TO UPRATE

     In the event of an Uprate, Seller shall be entitled to sell, and Buyer
     shall have no right to, all additional Capacity, Energy and Ancillary
     Services attributed to the Uprate. In the event of an Uprate, Seller will
     arrange for a net capability test (the "Uprate Capability Test") in
     accordance with ECAR 4 (or with the Effective Capacity Requirements, if
     applicable) to be conducted, after the Uprate is completed, tested and
     operational as determined by Seller, to calculate the actual net increase
     in the Capacity of the Facility attributable to the Uprate. Once the Uprate
     Capability Test is completed, the Buyer's Entitlement and the associated
     percentages in the column in Exhibit B entitled "Buyer's Entitlement" shall
     be revised, upon written notice from Seller to Buyer, to equal the
     quotient, stated as a percentage, resulting from (a) the Capacity of the
     Facility amount from Exhibit B (without taking into account the effect of
     the Uprate) corresponding to the month in which the Uprate is completed,
     tested and operational as determined by Seller, divided by (b) the Capacity
     rating of the Facility resulting from the Uprate Capability Test. Buyer
     shall be entitled under this Agreement to the Buyer's Entitlement of all
     Capacity made available, or capable of being made available, from the
     Facility (except for Capacity from the Facility attributable to an Uprate),
     and Seller shall not sell or commit to sell such Capacity to any party
     other than Buyer.

2.7. CAPACITY ACCREDITATION

     Seller shall, at its cost and expense, (a) on an annual basis (or more
     frequently as Seller may be directed by any Governing Authority), perform a
     Capacity test of the Facility, in

                                       14

<PAGE>

     accordance with ECAR 4 and Module E, and (b) take all other actions
     reasonably required to cause the Capacity of the Facility and the
     Replacement Capacity to be Accredited Capacity, including the satisfaction
     of all applicable requirements to establish and maintain the DNR status (as
     defined under applicable MISO Tariffs) of the Facility or the source of the
     Replacement Capacity for Buyer.

2.8. REACTIVE POWER

     (a)  Seller agrees that it shall not have any rights to the production or
          absorption of the Reactive Power capabilities of the Facility existing
          as of the time of closing of the transactions contemplated by the
          Asset Sale Agreement (which capabilities are identified in the
          Interconnection Agreement), and that Seller shall not operate the
          Facility to produce real power at a level or in a manner that
          compromises its ability to operate the Facility to produce or absorb
          Reactive Power to maintain the output voltage or power factor at the
          Interconnection Point as specified in the Interconnection Agreement
          or, if the Interconnection Agreement is not applicable, any other
          applicable agreement governing Seller's obligation to provide Reactive
          Power from the Facility. In addition, Seller shall maintain the
          Reactive Power capability of the Facility at the levels set forth in
          the Interconnection Agreement as the same may be amended by the
          parties thereto. Notwithstanding the foregoing, in no event shall
          Seller be required by Buyer to reduce its real power output below the
          Buyer's Capacity Amount for the purpose of producing Reactive Power.

     (b)  Notwithstanding Section 2.8(a), Seller may alter the Facility's
          ability to absorb or produce Reactive Power or otherwise change the
          amount or nature of Reactive Power if such alteration is approved by
          the applicable Governing Authority.

2.9. STATION POWER SERVICE

     During any period in which the Facility is operating, Seller shall be
     entitled to satisfy the Station Power Service Load using Energy generated
     by the Facility. Seller shall be solely responsible for obtaining, at its
     cost, Energy to serve the Station Power Service Load, including any
     transmission charges (if applicable) associated with such Energy, during
     any period of time in which the Facility is not operating, or is not
     generating sufficient Energy to meet the Station Power Service Load. In the
     event that any fees, penalties, or transmission charges are assessed
     against Buyer by any Governing Authority in connection with Seller's
     consumption of Energy to serve the Station Power Service Load or any Energy
     obtained by Seller to serve the Station Power Service Load, Seller shall
     reimburse Buyer for such fees, penalties, or transmission charges or
     Energy.

                              ARTICLE III: PAYMENTS

3.1. PURCHASE PAYMENTS

     The amounts to be paid to the Seller by the Buyer for purchases of
     Capacity, Energy and Ancillary Services under this Agreement shall be
     determined as follows:

                                       15
<PAGE>

     (a)  Capacity Payment. With respect to each Billing Cycle, Buyer shall make
          a payment to Seller equal to the product of: (i) the applicable
          "Capacity Charge" set forth in Exhibit A; (ii) the applicable Capacity
          Charge Shaping Factor set forth in Exhibit C; and (iii) the number of
          MWhs of Delivered Energy for the Billing Cycle (each, a "Capacity
          Payment").

     (b)  Energy Payment. With respect to each Billing Cycle, Buyer shall make a
          payment to Seller equal to the product of: (i) the applicable "Energy
          Charge" set forth in Exhibit A; (ii) the applicable Energy Charge
          Shaping Factor set forth in Exhibit C; and (iii) the number of MWhs of
          Delivered Energy for the Billing Cycle (each, an "Energy Payment").

     (c)  Ancillary Services. The Capacity Payment and the Energy Payment
          include payment for any and all Ancillary Services received by Buyer,
          and no additional payment in respect thereof shall be due at any time.
          Without limiting the generality of the foregoing, Seller specifically
          agrees that it shall not be entitled to any payment for Reactive Power
          under this Agreement, notwithstanding its obligation to operate the
          Facility in accordance with Section 2.8.

3.2. PEAK ADJUSTMENT PAYMENT

     If applicable, Seller shall make a payment to Buyer as determined in
     accordance with Exhibit G (each, a "Peak Adjustment Payment").

                      ARTICLE IV: MAINTENANCE AND OPERATION

4.1. SCHEDULED MAINTENANCE

     (a)  Scheduling Procedure

          Seller shall submit to Buyer a schedule of maintenance of the Facility
          (each, a "Maintenance Schedule" and each item thereon a "Scheduled
          Maintenance Outage") for each Calendar Year during the Term no later
          than twelve (12) months before the beginning of such year (or no later
          than three (3) months prior to the deadline for submittal of any such
          schedule to the Transmission Provider or any other applicable
          Governing Authority, if earlier); except that within thirty (30) days
          following the Effective Date, Seller shall submit to Buyer a
          Maintenance Schedule for the Calendar Year in which the Effective Date
          occurs and for the following Calendar Year. Each Maintenance Schedule
          shall meet the requirements set forth in Section 4.1(b) and shall be
          deemed confidential information and shall be treated accordingly as
          provided in Article XIV of this Agreement; provided, however, that
          Buyer shall have the right, consistent with Section 14.2(a), to submit
          the Maintenance Schedule to the MPSC. Seller shall also submit to
          Buyer any schedule of maintenance provided to the Transmission
          Provider, any Governing Authority or other entity.

     (b)  Limitations on Scheduled Maintenance Outages

                                       16

<PAGE>

          (i)  If Seller plans a Scheduled Maintenance Outage during the period
               from June 1st through August 31st (a "Summer Maintenance
               Outage"), Seller must comply with the notice and Scheduling
               provisions of Section 2.4 and the following terms and conditions:

               (A)  Seller shall supply Replacement Capacity (if and to the
                    extent Accredited Capacity from the Facility is not
                    provided), and Schedule and deliver Replacement Energy, on a
                    continuous basis to the Delivery Point (or Alternate
                    Delivery Point) for each hour of such Summer Maintenance
                    Outage in an amount equal to the Buyer's Capacity Amount;
                    and

               (B)  If Seller fails to deliver or cause to be delivered, or
                    fails to Schedule, all or part of the Replacement Energy
                    required by subsection (i)(A) above, and such failure is not
                    excused under the terms of this Agreement, then Seller shall
                    pay to Buyer, within ten (10) Business Days of invoice
                    receipt therefore, an amount equal to the positive
                    difference, if any, between (1) the cost incurred by Buyer
                    acting in a commercially reasonable manner to replace the
                    Replacement Energy not delivered or Scheduled by Seller,
                    including the cost incurred by Buyer in purchasing Energy to
                    replace, at the Delivery Point, the Replacement Energy not
                    delivered or Scheduled by Seller in either a bilateral
                    transaction or the market price at the Delivery Point, plus
                    additional transmission charges, if any, reasonably incurred
                    by Buyer for the delivery of the Energy to the Delivery
                    Point, and (2) the cost (using the Energy Charge) that Buyer
                    would have incurred under this Agreement had the Replacement
                    Energy been delivered or Scheduled. Any invoice submitted by
                    Buyer to Seller pursuant to this subsection (i)(B) shall
                    include a written statement explaining in reasonable detail
                    the calculation of the amount due from Seller.

               (C)  If Buyer fails to Schedule, receive or cause to be received
                    all or part of the Replacement Energy that is Scheduled by
                    Seller in accordance with subsection (i)(A) above and such
                    failure is not excused under the terms of this Agreement,
                    then Buyer shall pay to Seller, within ten (10) Business
                    Days of invoice receipt therefore, an amount equal to the
                    negative difference, if any, between (1) the amount received
                    by Seller acting in a commercially reasonable manner in the
                    reselling at the Delivery Point any Replacement Energy not
                    received by Buyer, including the amount received by Seller
                    in reselling any Replacement Energy, at the Delivery Point,
                    not received by Buyer in either a bilateral transaction or
                    the market price at the Delivery Point, less additional
                    transmission charges, if any, and (2) the amount (using the
                    Energy Charge) that Seller would have received under this
                    Agreement had the Replacement Energy been received by Buyer.
                    Any invoice submitted by Seller

                                       17

<PAGE>

                    to Buyer pursuant to this subsection (i)(C) shall include a
                    written statement explaining in reasonable detail the
                    calculation of the amount due from Buyer.

               (D)  If Seller fails to supply Replacement Capacity in accordance
                    with subsection (i)(A) above and such failure is not excused
                    under the terms of this Agreement, then Seller shall pay
                    Buyer, within ten (10) Business Days of invoice receipt
                    therefore, an amount equal to the positive difference, if
                    any, between (1) the cost incurred by Buyer to replace the
                    Replacement Capacity not supplied by Seller, including the
                    cost incurred by Buyer in purchasing Capacity to replace the
                    Replacement Capacity or the market price paid by Buyer for
                    Replacement Capacity not supplied by Seller, and (2) the
                    cost (using the Capacity Charge) that Buyer would have
                    incurred under this Agreement had the Replacement Capacity
                    been supplied. Any invoice submitted by Buyer to Seller
                    pursuant to this subsection (i)(D) shall include a written
                    statement explaining in reasonable detail the calculation of
                    the amount due from Seller.

          (ii) The conditions set forth in Section 4.1(b)(i) shall not apply to
               (x) the Scheduled Maintenance Outage which includes the
               Facility's reactor head replacement, (y) the Scheduled
               Maintenance Outage, if any, during which the Facility's steam
               generator is replaced, or (z) any unexpected maintenance outage
               (i.e., a maintenance outage which is scheduled in less than three
               months).

4.2. DERATE NOTICES

     In the event of any Derate, other than a Scheduled Maintenance Outage, any
     Summer Maintenance Outage, or any other scheduled outage of the Facility,
     Seller must notify Buyer's Merchant Operations Center telephonically of
     such Derate as soon as practicable after Seller becomes aware of the
     necessity or occurrence thereof (each, a "Derate Notice"), with written
     confirmation within 24 hours. During any ongoing Derate, Seller shall
     provide daily or more frequent updates to Buyer's Merchant Operations
     Center of the nature and expected duration of such Derate. During the
     course of development of a Derate, Seller shall provide frequent updates as
     to the magnitude and timing of actual and expected output changes of the
     Facility and such other information as may assist Buyer in assessing the
     reliability of output from the Facility.

4.3. OTHER OPERATIONS OBLIGATIONS

     (a)  Permits, Licenses and Approvals; Compliance with Laws

          Seller shall, at its expense, acquire and maintain in effect
          throughout the Term of this Agreement all permits, licenses, approvals
          and other Authorizations of any Governing Authority required for the
          lawful operation and maintenance of the Facility.

                                       18

<PAGE>

     (b)  Information Requirements

          Seller shall provide Buyer with the following real-time telemetered
          data (scanned no less frequently than once every four seconds) for the
          duration of the Term: (i) net output (megawatts and megaVARs), (ii)
          status (i.e., open or closed) of the applicable breaker, (iii)
          operating limits, and (iv) such additional information as may be
          required from time to time by the Transmission Provider or any
          Governing Authority, or Buyer's control area operator, or by Good
          Utility Practices. Seller shall provide Buyer with copies of any
          scheduling notices or requests submitted to the Transmission Provider,
          concurrently with the submission thereof. In addition, Seller shall
          provide Buyer with any other information Buyer may reasonably request
          regarding the operation of the Facility. Seller shall advise Buyer and
          provide information regarding events, ongoing work or Facility status
          which may create a risk of Derates. In no event shall the provisions
          of this Section 4.3(b) require Seller to provide Buyer with any
          information that Seller believes in good faith, based on established
          precedent or reasonable inquiry, violates the rules or regulations on
          transfer of information promulgated by any Governing Authority or
          Transmission Provider.

     (c)  SCADA Data

          Seller shall provide and make available to Buyer, on a real-time
          basis, all data generated by the SCADA system at the Facility,
          including, without limitation, all four-second meter data.

     (d)  Quality of Energy

          All Energy delivered hereunder shall be three-phase, 60 Hertz (plus or
          minus variations as may be required or allowed by the Transmission
          Provider), alternating current, at a voltage acceptable to the
          Transmission Provider, or shall otherwise comply with such other
          specifications of the Transmission Provider, regional reliability
          council or other Governing Authority responsible for the safety and
          reliability of the electric grid with authority over the Delivery
          Point (or Alternate Delivery Point, if applicable) as may be in effect
          at the time of delivery.

     (e)  Compliance with Interconnection Agreement

          To the extent the Interconnection Agreement requires delivery to Buyer
          of information and data substantially similar to that referred to in
          Sections 4.3(b) and (c), the information and data required by the
          Interconnection Agreement shall be delivered to Buyer in lieu of that
          required under Sections 4.3(b) and (c).

                    ARTICLE V: METERING, BILLING AND PAYMENT

5.1. METERING

     (a)  The Billing Meters shall at all times during the Term meet the
          requirements set by

                                       19

<PAGE>

          the Transmission Provider and all applicable Governing Authorities.
          Seller shall arrange with Transmission Owner for Transmission Owner to
          own, operate, test, maintain, and replace the Billing Meters at the
          main transformer (Meters #2 and #3 on Exhibit D). Transmission Owner
          shall be the metering party ("Metering Party") as to such Billing
          Meters. As between Seller and Buyer following the Effective Date,
          Seller shall bear all reasonable, documented costs associated with the
          operation, testing, maintenance, or replacement of the Billing Meters
          at the main transformer. Seller shall use reasonable efforts to cause
          the Transmission Owner to provide metering quantities, in analog
          and/or digital form, to Buyer upon Buyer's request.

     (b)  Buyer shall own, operate, test, maintain, and replace the Billing
          Meters at the start-up transformer and the safeguard transformer
          (Meters #1 and #4 on Exhibit D) in accordance with Good Utility
          Practices. Buyer shall be the Metering Party as to such Billing
          Meters. Following the Effective Date, Seller shall bear all
          reasonable, documented costs associated with the operation, testing,
          maintenance, or replacement of the Billing Meters at the start-up
          transformer or the standby transformer. Buyer shall provide metering
          quantities, in analog and/or digital form, to Seller upon Seller's
          request.

     (c)  The Transmission Owner's and Buyer's Billing Meters, which are shown
          on Exhibit D, shall be used for measurements under this Agreement and
          shall be sufficient to permit an accurate determination of the
          quantity and time of delivery of Energy delivered to Buyer. Buyer
          shall calibrate, and Seller shall use reasonable efforts following the
          Effective Date to cause the Transmission Owner to calibrate, their
          respective Billing Meters at least annually, and otherwise in
          accordance with applicable Governing Authority standards. Seller or
          Seller's representative shall have the right to be present during any
          calibration of the Billing Meters owned by Buyer, and Buyer shall
          provide reasonable notice to Seller of any such calibration. Seller
          agrees, and shall use reasonable efforts to cause the Transmission
          Owner to agree in writing, that upon reasonable notice, Transmission
          Owner (and Seller) shall provide Buyer access to the Billing Meters
          owned by Buyer and Transmission Owner during normal business hours for
          the purpose of reading, inspecting, calibrating, and testing such
          equipment, or witnessing the reading, inspecting, calibrating, and
          testing of such equipment by another party.

     (d)  Check Meters. Seller, at its option and expense, may install and
          operate on its premises and on its side of the Interconnection Points,
          one or more check meters to check the Billing Meters owned by Buyer.
          Seller is responsible for any separate arrangements to install check
          meters with respect to the Billing Meters owned by Transmission Owner.
          All such check meters shall be for check purposes only and shall not
          be used for the measurement of Energy flows for purposes of this
          Agreement, except as provided in Section 5.1(e) below. The check
          meters shall be subject at all reasonable times to inspection and
          examination by Transmission Provider, Buyer or their designees. The
          installation, operation and maintenance thereof shall be performed
          entirely by

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<PAGE>

          Seller in accordance with Good Utility Practice.

     (e)  Testing of Metering Equipment. Seller and Buyer agree, and Seller
          shall use reasonable efforts to cause the Transmission Owner to agree
          in writing to the following: the Metering Party shall inspect and test
          its Billing Meters upon installation and at least once every two (2)
          years thereafter. If requested to do so by a Party, the Metering Party
          shall, at the requesting Party's expense, inspect and test Billing
          Meters more frequently than once every two (2) years. The Metering
          Party shall give reasonable notice to the other Party of the time when
          any inspection or test shall take place, and the other Party may have
          representatives present at the test or inspection. In addition, Seller
          shall have the right to inspect Buyer's Billing Meters from time to
          time at its discretion. If at any time a Billing Meter is found to be
          inaccurate or defective, it shall be adjusted, repaired or replaced at
          Seller's expense, in order to provide accurate metering, unless the
          inaccuracy or defect is due to the Metering Party's failure to
          maintain, then the Metering Party shall pay. If a Billing Meter fails
          to register, or if the measurement made by a Billing Meter during a
          test varies by more than one-half of one percent (0.5%) from the
          measurement made by the standard meter used in the test, the Metering
          Party shall adjust the measurements by correcting all measurements for
          the period during which the Billing Meter was in error by using
          Seller's check meters, if installed and if, when tested, varied less
          than the Billing Meter. If no such check meters are installed, the
          Parties shall use the best available data for the period in question.
          If no other data are available, or if the period cannot be reasonably
          ascertained, the adjustment shall be for the period immediately
          preceding the test of the Billing Meter equal to one-half the time
          from the date of the previous test of the Billing Meter.

     (f)  Seller and Buyer agree, and Seller shall use reasonable efforts to
          cause the Transmission Owner to agree in writing, to the following: at
          Seller's expense, the metered data shall be telemetered by the
          Metering Party to one or more locations, designated by Transmission
          Owner and one or more locations designated by Buyer.

5.2. BILLING AND PAYMENT

     (a)  Seller shall send a billing statement to Buyer on or before the tenth
          (10th) day after the end of each Billing Cycle. If any net amount is
          due to Seller pursuant to any such billing statement, Buyer shall pay
          such amount to Seller by the later of (i) ten (10) Business Days after
          receipt of such billing statement, or (ii) the 20th day of the month
          in which the billing statement was received. If any net amount is due
          to Buyer pursuant to any such billing statement, Seller shall pay such
          amount to Buyer by the later of (i) ten (10) Business Days after
          receipt of such billing statement, or (ii) the 20th day of the month
          in which the billing statement was received. The billing statement
          shall show the kilowatt-hours of Delivered Energy for such Billing
          Cycle; the amounts due Seller for that Billing Cycle in respect of (i)
          the Capacity Payment and the Energy Payment, and (ii) any other
          amounts due to Seller hereunder; the amounts due Buyer for that
          Billing Cycle in

                                       21

<PAGE>

          respect of (iii) the Peak Adjustment Payment, and (iv) any other
          amounts due to Buyer hereunder; and the data reasonably pertinent to
          the calculation of the payments due to Seller or Buyer. If meter
          readings cannot be made during such Billing Cycle (or any portion
          thereof), the Buyer shall estimate deliveries to it for such period,
          tender payment accordingly, and make an adjustment for actual
          purchases in the next Billing Cycle's statement. For purposes of
          billing for Replacement Capacity and Replacement Energy, the Capacity
          of the resources providing Replacement Capacity and Replacement Energy
          shall be determined in accordance with Module E of the MISO Tariff,
          such determination to be submitted by Seller and Buyer and the
          Schedule(s) submitted in accordance with Section 2.4 to determine the
          amount of Replacement Capacity and Replacement Energy supplied and
          delivered to Buyer. Any amounts not paid by the due date shall be
          deemed delinquent and shall accrue interest at the Default Interest
          Rate, such interest to be calculated from and including the due date
          to but excluding the date the delinquent amount is paid in full.

     (b)  In the event of a dispute as to the amount of any bill, the disputing
          Party shall notify the other Party of the amount in dispute and Buyer
          or Seller, as applicable, shall pay to the other Party the undisputed
          portion of the bill on or prior to the due date therefor, as
          identified in Section 5.2(a). Buyer or Seller, as applicable, shall
          pay, with an interest charge computed at the Default Interest Rate,
          from and including the date payment was due to but excluding the date
          payment is made, any portion of the disputed amount ultimately found
          to be proper. In the event of a refund, Buyer or Seller, as
          applicable, shall pay, with an interest charge computed at the Default
          Interest Rate, from and including the date the disputed payment was
          made to but excluding the date the refund payment is made, any refund
          amount ultimately found to be due to the other Party.

     (c)  Neither the Buyer nor Seller shall have the right to challenge any
          billing statement rendered or received hereunder after a period of two
          (2) years from the date such statement was rendered. In the event that
          any such billing statement depends in whole or in part upon estimated
          data, this two (2) year limitation period shall be deemed to begin on
          the first day of the Billing Cycle in which such estimated data is
          adjusted to actual.

5.3. SCHEDULING

     Seller shall submit its Generation Offers and Financial Bilateral
     Transactions in accordance with applicable MISO rules and procedures, as
     the same may be amended or superseded, and consistent with offering the
     Facility in the MISO day-ahead market for dispatch as a must-run generation
     unit. The current version of such rules and procedures are attached hereto
     as Exhibit H.

                                       22

<PAGE>

                            ARTICLE VI: FORCE MAJEURE

6.1. CONDITIONS OF EXCUSE FROM PERFORMANCE

     If and to the extent resulting from a Force Majeure a Party hereto is
     rendered unable to perform any of its obligations under this Agreement
     (other than obligations of such Party to pay money when such money is due),
     that Party shall be excused, except as specifically provided elsewhere in
     this Agreement, from whatever performance is prevented by the Force Majeure
     to the extent so prevented, provided that:

     (a)  The Party claiming excuse gives the other Party prompt written notice
          describing how the event qualifies as a Force Majeure;

     (b)  The permitted suspension of performance is of no greater scope and of
          no longer duration than is required by the Force Majeure; provided,
          however, that performance under this Agreement shall only be excused
          for longer than one (1) year by reason of any particular Force Majeure
          if Seller first complies with subsection (e) below;

     (c)  No obligations of a Party hereto under this Agreement which arose and
          accrued before the Force Majeure are excused as a result of the Force
          Majeure;

     (d)  A Party's performance may be excused due to Force Majeure only for so
          long as such Party claiming Force Majeure is exercising commercially
          reasonable efforts consistent with Good Utility Practices to eliminate
          or ameliorate the Force Majeure condition; and

     (e)  Seller shall, within sixty (60) days of the occurrence of a Force
          Majeure affecting Seller's performance under this Agreement that
          Seller reasonably anticipates will last more than twelve (12) months
          after the commencement thereof, deliver to Buyer a detailed plan for
          the remedy of the Force Majeure condition, which plan shall include:
          (i) a detailed specification of Seller's proposal (including a
          timetable) to remedy the Force Majeure condition and restore the
          Facility to maximum attainable operating status, and (ii) Seller's
          decision as to whether it will commence supplying and delivering
          Replacement Capacity and Replacement Energy after the sixth (6th)
          month of the Force Majeure if the Force Majeure condition has not been
          remedied; provided, however, that, if Seller decides to provide
          Replacement Capacity and Replacement Energy after the sixth (6th)
          month of the Force Majeure, Seller must provide both Replacement
          Capacity and Replacement Energy on a continuous basis until the event
          that previously constituted the Force Majeure has been remedied.

6.2. NO TERMINATION; EXTENSION OF TERM

     In no event shall a condition of Force Majeure be grounds for termination
     of this Agreement, or extend the Term of this Agreement.

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<PAGE>

6.3. ADJUSTMENT PAYMENTS

     No Peak Adjustment Payment shall be calculated or accrue in favor of Buyer
     while performance of the Seller is excused pursuant to Section 6.1.

                    ARTICLE VII: EVENTS OF DEFAULT; REMEDIES

7.1. LIST OF DEFAULT EVENTS

     Except as otherwise provided in this Agreement and subject to the
     limitations contained in this Section 7.1, Section 7.2 and Section 7.3, a
     Party shall be entitled to pursue any remedies available to it under
     generally applicable Laws or under this Agreement upon the occurrence of
     any of the following events (except as to the event described in Section
     7.1(f), for which only Seller shall be entitled to pursue any remedies
     available to it under generally applicable Laws or under this Agreement):

     (a)  The failure of the other Party to make any undisputed payment due
          hereunder and such failure shall continue for ten (10) Business Days
          after written notice demanding such payment is received;

     (b)  In the event the other Party shall cease doing business as a going
          concern, shall generally not pay its debts as they become due or admit
          in writing its inability to pay its debts as they become due, shall
          file a voluntary petition in bankruptcy or shall be adjudicated as
          bankrupt or insolvent, or shall file any petition or answer seeking
          any reorganization, arrangement, composition, readjustment,
          liquidation, dissolution or similar relief under the present or any
          future federal bankruptcy code or any other present or future
          applicable Law, or shall seek or consent to or acquiesce in the
          appointment of any trustee, receiver, custodian or liquidator of said
          Party or of all or any substantial part of its properties, or shall
          make an assignment for the benefit of creditors, or said Party shall
          take any corporate action to authorize or that is in contemplation of
          the actions set forth above in this Section 7.1(b);

     (c)  In the event that within thirty (30) days after the commencement of
          any proceeding against either Party seeking any reorganization,
          arrangement, composition, readjustment, liquidation, dissolution or
          similar relief under the present or any future federal bankruptcy code
          or any other statute or Law, such proceeding shall not have been
          dismissed, or if, within thirty (30) days after the appointment
          without the consent or acquiescence of said Party of any trustee,
          receiver, custodian or liquidator of said Party or of all or any
          substantial part of its properties, such appointment shall not have
          been vacated or stayed on appeal or otherwise, or if, within thirty
          (30) days after the expiration of any such stay, such appointment
          shall not have been vacated;

     (d)  Any of the other Party's representations and warranties contained in
          Article VIII hereof was false or misleading in any material respect
          when made, unless the fact, circumstance or condition that is the
          subject of such representation or warranty is

                                       24

<PAGE>

          made true within thirty (30) days after the defaulting Party has
          received notice thereof from the non-defaulting Party;

     (e)  A default in performance by a Party of any agreement, undertaking,
          covenant or other obligation contained in Section 7.2 and Section 7.3,
          and such default shall continue for ten (10) Business Days after
          written notice demanding such performance is received;

     (f)  The failure of either Party to provide the other Party's employees,
          agents, and other representatives reasonable access to test or examine
          the other Party's Billing Meters after receiving notice to do so by
          the applicable Party as required under this Agreement;

     (g)  A material default in performance or observance of any other
          agreement, undertaking, covenant or other material obligation
          contained in this Agreement by a Party unless, within thirty (30) days
          after written notice from the non-defaulting Party specifying the
          nature of such material default, the defaulting Party cures such
          default or, if such cure cannot reasonably be completed within thirty
          (30) days and if the defaulting Party within such thirty (30) day
          period commences, and thereafter proceeds with all due diligence, to
          cure such default, said period shall be extended for such further
          period as shall be necessary for the defaulting Party to cure such
          default with all due diligence, provided that the extended cure period
          shall not exceed ninety (90) days from the date of the original
          notice; or

     (h)  Seller or Buyer shall permanently or persistently fail to perform
          under the terms of this Agreement, such persistent failure continues
          for a period of thirty (30) days following notice to Seller or Buyer
          (as appropriate) of such persistent failure and such failure is not
          due to Force Majeure.

If an event of default under Sections 7.1(a), (b), (c) or (e) occurs, the other
Party (the "Non-Defaulting Party") shall have (in addition to any remedies
available to under generally applicable Laws or under this Agreement) the right
(i) to terminate this Agreement and/or (ii) to suspend performance hereunder
including without limitation the delivery of Energy; provided, however, that
with respect to the circumstances described in Sections 7.1(a) and 7.1(e),
Seller's right to suspend performance hereunder, including without limitation
the delivery of Energy (but not the right to terminate this Agreement) shall
become effective upon the expiration of five (5) Business Days after (iii)
written notice demanding payment is received under Section 7.1.(a), or (iv)
written notice demanding performance is received under Section 7.1(e), as
applicable.

7.2. SELLER'S SECURITY

     (a)  Seller shall provide on the Effective Date, and maintain thereafter
          throughout the remainder of the Term, security for compliance with its
          payment obligations under this Agreement, which shall consist of (1) a
          cash deposit in the amount of $30,000,000, which deposit shall earn
          interest at the Interest Rate, (2) a corporate guaranty (the "Seller's
          Guaranty") in the form attached hereto as Exhibit E, from Entergy
          Corporation, or its Affiliate or successor ("Seller's Guarantor")
          whose

                                       25

<PAGE>

          unsecured, senior long-term debt obligations (not supported by
          third-party credit enhancements) are rated Baa3 or better by Moody's
          Investment Services, Inc. (or its successor), or BBB- or better by
          Standard & Poor's Rating Group (or its successor) in the amount of
          $30,000,000, or (3) a Letter or Letters of Credit in the amount of
          $30,000,000.

     (b)  A default specified in Section 7.1(a) may not be cured by drawing, or
          permitting a draw on, the cash deposit, Seller's Guaranty or Letter of
          Credit, unless the cash deposit, Seller's Guaranty or Letter of Credit
          is immediately replenished up to the required amount of the cash
          deposit, Seller's Guaranty or Letter of Credit under Section 7.2(a).

     (c)  If at any time there shall occur a Downgrade Event with respect to
          Seller's Guarantor or if the rating of the Letter of Credit issuing
          bank falls below the minimum acceptable level as set forth in the
          definition of Letter of Credit, then Buyer may require Seller to
          replace the Seller's Guaranty or Letter of Credit with a Letter of
          Credit acceptable to the beneficiary in the amount of $30,000,000, and
          shall be subject to all terms and conditions of this Agreement
          applicable to a Letter of Credit. In the event Seller shall fail to
          provide such security within ten (10) Business Days of receipt of
          written notice, then a breach of this Agreement shall be deemed to
          have occurred; provided, however, that Seller's obligation to provide
          a Letter of Credit due to a Downgrade Event with respect to Seller's
          Guarantor shall be suspended if the unsecured, senior long-term debt
          obligations (not supported by third-party credit enhancements) of the
          Seller's Guarantor are restored to a rating of Baa3 or better by
          Moody's Investment Services, Inc. (or its successor), or BBB- or
          better by Standard & Poor's Rating Group (or its successor).

7.3. BUYER'S SECURITY

     (a)  Buyer shall provide on the Effective Date, and maintain thereafter
          throughout the remainder of the Term, security for compliance with its
          payment obligations under this Agreement, which shall consist of (1) a
          cash deposit in the amount of $30,000,000, which deposit shall earn
          interest at the Interest Rate, (2) a corporate guaranty (the "Buyer's
          Guaranty") in the form attached hereto as Exhibit F, from CMS Energy
          Corporation, or its Affiliate or successor ("Buyer's Guarantor") whose
          unsecured, senior long-term debt obligations (not supported by
          third-party credit enhancements) are rated Baa3 or better by Moody's
          Investment Services, Inc. (or its successor), or BBB- or better by
          Standard & Poor's Rating Group (or its successor) in the amount of
          $30,000,000, or (3) a Letter or Letters of Credit in the amount of
          $30,000,000.

     (b)  A default specified in Section 7.1(a) may not be cured by drawing, or
          permitting a draw on, the cash deposit, Buyer's Guaranty or Letter of
          Credit, unless the cash deposit, Buyer's Guaranty or Letter of Credit
          is immediately replenished up to the required amount of the cash
          deposit, Buyer's Guaranty or Letter of Credit under Section 7.3(a).

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<PAGE>

     (c)  If at any time there shall occur a Downgrade Event with respect to
          Buyer's Guarantor or if the rating of the Letter of Credit issuing
          bank falls below the minimum acceptable level as set forth in the
          definition of Letter of Credit, then Seller may require Buyer to
          replace the Buyer's Guaranty or Letter of Credit with a Letter of
          Credit acceptable to the beneficiary in the amount of $30,000,000, and
          shall be subject to all terms and conditions of this Agreement
          applicable to a Letter of Credit. In the event Buyer shall fail to
          provide such security within ten (10) Business Days of receipt of
          written notice, then a breach of this Agreement shall be deemed to
          have occurred; provided, however, that Buyer's obligation to provide a
          Letter of Credit due to a Downgrade Event with respect to Buyer's
          Guarantor shall be suspended if the unsecured, senior long-term debt
          obligations (not supported by third-party credit enhancements) of the
          Buyer's Guarantor are restored to a rating of Baa3 or better by
          Moody's Investment Services, Inc. (or its successor), or BBB- or
          better by Standard & Poor's Rating Group (or its successor).

7.4. NO CONSEQUENTIAL DAMAGES

     In actions arising under Section 7.1 of this Agreement, and in all other
     claims arising under this Agreement by either Party against the other
     Party, neither Seller nor the Buyer shall be liable to the other for
     indirect, special, incidental, or consequential damages, except as to the
     indemnification obligations of the Parties under Article IX for the
     indirect, special, or consequential damages of third parties.

                  ARTICLE VIII: REPRESENTATIONS AND WARRANTIES

8.1. REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer makes the following representations and warranties to Seller, each of
     which is true and correct as of the Effective Date:

     (a)  Buyer is a corporation duly organized and in active status under the
          Laws of the State of Michigan.

     (b)  Buyer has all corporate power and authority to enter into and perform
          this Agreement and to carry out the transactions contemplated herein.

     (c)  Buyer's execution, delivery and performance of this Agreement have
          been duly authorized by, and are in accordance with, its articles of
          incorporation and by-laws; this Agreement has been duly executed and
          delivered for it by the signatory so authorized; and this Agreement
          constitutes its legal, valid, and binding obligation, enforceable
          against it in accordance with the terms hereof.

     (d)  Buyer's execution, delivery and performance of this Agreement (i) will
          not result in a breach or violation of, or constitute a default under,
          any Authorization, or any contract, lease or other agreement or
          instrument to which it is a party, or by which it or its properties
          may be bound or affected; and (ii) does not require any

                                       27

<PAGE>

          Authorization, or the consent, authorization or notification of any
          other Person, or any other action by or with respect to any other
          Person (except for Authorizations and consents or authorizations of
          other Persons already obtained, notifications already delivered, or
          other actions already taken).

     (e)  No suit, action or arbitration, or legal, administrative or other
          proceeding is pending or has been threatened against Buyer that would
          affect the validity or enforceability of this Agreement or the ability
          of Buyer to perform its obligations hereunder in any material respect,
          or that would, if adversely determined, have a material adverse effect
          on the business or financial condition of Buyer. There are no
          bankruptcy, insolvency, reorganization, receivership or other
          arrangement proceedings pending against or being contemplated by
          Buyer, or, to Buyer's knowledge, threatened against it.

     (f)  Buyer is not in breach of, in default under, or in violation of, any
          applicable Law, or the provisions of any Authorization, or in breach
          of, in default under, or in violation of, any provision of any
          promissory note, indenture or any evidence of indebtedness or security
          therefor, lease, contract, or other agreement by which it is bound,
          except for any such breaches, defaults or violations which,
          individually or in the aggregate, could not reasonably be expected to
          have a material adverse effect on the business or financial condition
          of Buyer or its ability to perform its obligations hereunder.

8.2. REPRESENTATIONS AND WARRANTIES OF SELLER

     Seller makes the following representations and warranties to Buyer, each of
     which is true as of the Effective Date:

     (a)  Seller is a limited liability company duly organized and in good
          standing under the Laws of the State of Delaware and qualified to do
          business in the State of Michigan.

     (b)  Seller has all limited liability company power and authority to enter
          into and perform this Agreement and to carry out the transactions
          contemplated herein.

     (c)  Seller's execution, delivery and performance of this Agreement have
          been duly authorized by, and are in accordance with, its certificate
          of formation and operating agreement; this Agreement has been duly
          executed and delivered for it by the signatory so authorized; and this
          Agreement constitutes Seller's legal, valid and binding obligation,
          enforceable against it in accordance with the terms hereof.

     (d)  Seller's execution, delivery and performance of this Agreement (i)
          will not result in a breach or violation of, or constitute a default
          under, any Authorization, or any contract, lease or other agreement or
          instrument to which it is a party, or by which it or its properties
          may be bound or affected; and (ii) does not require any Authorization,
          or the consent, authorization or notification of any other Person, or
          any other action by or with respect to any other Person (except for
          Authorizations and consents or authorizations of other Persons already
          obtained, notifications

                                       28

<PAGE>

          already delivered, or other actions already taken).

     (e)  No suit, action or arbitration, or legal, administrative or other
          proceeding is pending or has been threatened against Seller that would
          affect the validity or enforceability of this Agreement or the ability
          of Seller to perform its obligations hereunder in any material
          respect, or that would, if adversely determined, have a material
          adverse effect on the business or financial condition of Seller. There
          are no bankruptcy, insolvency, reorganization, receivership or other
          arrangement proceedings pending against or being contemplated by
          Seller, or, to Seller's knowledge, threatened against it.

     (f)  Seller is not in breach of, in default under, or in violation of, any
          applicable Law, or the provisions of any Authorization, or in breach
          of, in default under, or in violation of, any provision of any
          promissory note, indenture or any evidence of indebtedness or security
          therefor, lease, contract, or other agreement by which it is bound,
          except for any such breaches, defaults or violations which,
          individually or in the aggregate, could not reasonably be expected to
          have a material adverse effect on the business or financial condition
          of Seller or its ability to perform its obligations hereunder.

                ARTICLE IX: INDEMNITY AND LIMITATION OF LIABILITY

9.1. TITLE AND RISK OF LOSS

     Title to and risk of loss related to the Capacity, Energy or Ancillary
     Services shall transfer from Seller to Buyer at the Delivery Point (or
     Alternate Delivery Point, if applicable). Seller warrants that it will
     deliver to Buyer the Capacity, Energy and Ancillary Services free and clear
     of all liens, security interests, claims and encumbrances or any interest
     therein or thereto by any Person arising prior to the Delivery Point (or
     Alternate Delivery Point, if applicable).

9.2. INDEMNIFICATION

     (a)  Each Party shall indemnify, defend and hold harmless the other Party
          from and against any Claims related to, or arising under, this
          Agreement and arising from or out of any event, circumstance, act or
          incident first occurring or existing during the period when control
          and title to Energy, Capacity and Ancillary Services is vested in such
          Party as provided in Section 9.1. Each Party shall indemnify, defend
          and hold harmless the other Party against any charges imposed by
          Governing Authority for which such Party is responsible.

     (b)  Notwithstanding any language to the contrary in this Agreement,
          neither Party shall have liability to the other Party with respect to
          provision of advice, consultation, proposals or recommendations by the
          first Party's personnel or representatives to the second Party whether
          occasioned by comments or requests of or by the second Party or by the
          negligent acts or omissions of employees or representatives of the
          first Party or otherwise, and the second Party shall

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<PAGE>

          indemnify the first Party and hold harmless the first Party from and
          against losses, damages, costs or liabilities arising therefrom.

     (c)  Each Party shall promptly notify the other Party of the assertion of
          any Claim against which such other Party may be required to provide
          indemnity hereunder and shall give such other Party an opportunity to
          defend such Claim. These indemnification provisions are for the
          protection of the Parties hereto only and shall not establish, of
          themselves, any liability to third parties.

9.3. NO PARTNERSHIP

     The Parties do not by this Agreement effect a joint undertaking and do not
     intend to create any joint or several obligations to third parties. Neither
     this Agreement nor any transaction hereunder, shall be construed to create
     a new entity, such as a partnership or a joint venture, or constitute an
     agency or employment relationship. Neither Party shall be under the control
     of or be deemed to control the other Party, and no Party shall have the
     right or power to bind any other Party.

9.4. RESPONSIBILITY FOR EMPLOYEES

     The Parties agree that, as between themselves, each Party shall be
     responsible for the acts and omissions of, and any claims by and
     compensation to, its employees and agents, irrespective of any limitation
     on the amount or type of damages, compensation or benefits payable by or
     for such Party under workers' or workmen's compensation acts, disability
     benefit acts or other employee benefit acts; provided, however, that the
     foregoing is not intended to create third-party beneficiary rights in any
     Person not a Party to this Agreement. Each Party shall indemnify the other
     Party from and against all liabilities, Claims, damages, suits, fines or
     judgments, including reasonable attorneys' fees and defense fees,
     disbursements and expenses, for injury or death to third persons and damage
     to or destruction of property of third persons, to the extent caused by
     such Party's employees or agents.

                                 ARTICLE X: TERM

10.1. TERM

     Subject to the terms and conditions of this Agreement, including the final
     approval of the Michigan Public Service Commission ("MPSC"), this Agreement
     shall commence on the Effective Date and, unless terminated earlier as
     expressly provided herein, shall continue in effect until 11:59:59 p.m.
     (EST) on the Fifteenth (15th) anniversary of the Effective Date (the
     "Termination Date").

10.2. TERMINATION

     If the NRC does not grant the application for renewal of Operating License
     No. DPR-20 for the Facility for an additional twenty years as set forth in
     NRC Docket No. 50-255, the Termination Date shall be March 24, 2011 and
     neither Party shall have any further

                                       30
<PAGE>

     obligations hereunder except for those obligations which survive such
     termination.

     Promptly following Seller's determination that operation of the Facility
     has become materially and economically adverse such that continued
     operation of the Facility is no longer feasible, prudent and/or
     sustainable, Seller shall provide twelve (12) months' written notice to
     Buyer (or longer notice if commercially feasible under the circumstances)
     that Seller will permanently retire the Facility at the expiration of that
     notice period (unless twelve (12) months' notice is not commercially
     feasible under the circumstances, in which case Seller shall provide such
     notice as is commercially feasible under the circumstances). This Agreement
     will terminate at the time specified in such notice which will become the
     Termination Date, and neither Party shall have any further obligations
     hereunder except for those obligations which survive such termination.

10.3. EFFECT OF TERMINATION

     Termination of this Agreement shall not terminate the rights or duties of
     either Party hereunder with respect to any obligations due to be performed
     on or before the effective date of termination. Without limitation of the
     foregoing, Article IX, Article XI and Article XIV shall survive the
     termination of this Agreement.

                               ARTICLE XI: RECORDS

11.1. INSPECTION OF RECORDS

     Buyer and Seller shall maintain, to the extent applicable, for a period of
     not less than seven (7) years from the date of preparation thereof complete
     and accurate records of: (a) all measurements by Billing Meters of
     Delivered Energy pursuant to this Agreement, (b) real and reactive power
     production for each hour, changes in operating status, scheduled outages
     and any unusual conditions found during inspections, and (c) all other data
     and information necessary to calculate payments as provided in this
     Agreement, including invoices, receipts, charts, printouts, and other
     materials and documents. Subject to limitations imposed by applicable Law,
     Seller or Buyer, or their respective representatives shall be permitted to
     inspect such records upon request during normal business hours and copies
     of such records shall be provided, if requested, at the requesting Party's
     expense, within thirty (30) days of such request.

                      ARTICLE XII: ADMINISTRATIVE COMMITTEE

12.1. PURPOSE

     From time to time various administrative and technical matters may arise in
     connection with the terms and conditions of this Agreement which will
     require the cooperation and consultation of the Parties and the exchange of
     information. As a means of providing for such cooperation, consultation and
     exchange, an Administrative Committee is hereby established with the
     functions described in Section 12.4. However, the Administrative Committee
     shall not (a) have the authority to amend this Agreement, or (b) diminish
     in

                                       31

<PAGE>

     any manner the authority or responsibility of either Party as set forth in
     the various sections of this Agreement.

12.2. MEMBERSHIP

     The Administrative Committee shall have two (2) members. Within sixty (60)
     days after execution of this Agreement, each Party shall designate its
     representative on the Administrative Committee and shall promptly give
     written notice thereof to the other Party. Thereafter, each Party shall
     promptly give written notice to the other Party of any change in the
     designation of its representative on the Administrative Committee. All
     actions taken by the Administrative Committee must be approved by both
     members.

12.3. MEETINGS

     Meetings as are reasonably required may be called by either member with as
     much advance notice as is practicable. Meetings may be attended by other
     representatives of the Parties.

12.4. FUNCTIONS

     The Administrative Committee shall have the following functions:

1.   Provide liaison between the Parties at the management level and exchange
     information with respect to significant matters arising under this
     Agreement.

2.   Appoint ad hoc committees, the members of which need not be members of the
     Administrative Committee, as necessary to perform detailed work and conduct
     studies regarding matters requiring investigation.

3.   Review, discuss and attempt to resolve disputes arising under this
     Agreement; provided, nothing herein shall limit the provisions of Section
     17.1.

4.   Provide liaison between the Parties concerning the status of and operation
     of the Facility.

12.5. EXPENSES

     Each Party shall be responsible for the salary and out-of-pocket expenses
     of its representative and its other attendees. All other expenses incurred
     in connection with the performance by the Administrative Committee of its
     functions shall be allocated and paid as determined by the Administrative
     Committee.

                              ARTICLE XIII: NOTICES

13.1. NOTICES IN WRITING

     All notices or other communications which are required or permitted under
     this Agreement shall be effective if they are in writing and delivered
     personally or by certified mail (postage prepaid and return receipt
     requested), reputable overnight delivery service,

                                       32

<PAGE>

     or telecopy or other confirmable form of electronic delivery, to the
     following address (except as to notices which are required by this
     Agreement to be delivered to a Party's Administrative Committee
     representative or to Buyer's Merchant Operations Center, which shall be
     delivered to such Party's Administrative Committee representative or the
     Buyer's Merchant Operations Center, as the case may be):

          (a)  if to Seller:    c/o Entergy Northeast
                                440 Hamilton Avenue
                                White Plains, NY 10601

          With a copy to:       c/o ENTERGY
                                100 First Stamford Place
                                Stamford, CT 06902

          (b)  if to the Buyer: Consumers Energy Company
                                1945 W. Parnall Road
                                Jackson, MI 49201
                                Attention: William E. Garrity

          (c)  or to such other person or address as the addressee may have
               specified in a notice duly given to the sender as provided
               herein.

13.2. DATE OF NOTIFICATION

     All notices or communications duly delivered or mailed and postmarked to a
     Party hereto as provided in Section 13.1 shall be effective as of the date
     of receipt.

13.3. ORAL NOTICE IN EMERGENCY

     Notwithstanding the provisions of Section 13.1, any notice required
     hereunder with respect to an occurrence or event requiring immediate
     attention may be made orally, by telephone or otherwise, provided such
     notice shall be confirmed in writing promptly thereafter. Each Party shall
     make any such oral notice directly to the Administrative Committee
     representative of the other Party.

                          ARTICLE XIV: CONFIDENTIALITY

14.1. NON-DISCLOSURE TO THIRD PARTIES

     Except in any proceeding to approve or enforce this Agreement, Seller and
     Buyer will not disclose to any third person (including any of Seller's
     personnel engaged in electricity market related activity, but excluding
     each Party's employees, lenders, counsel, accountants or advisors who have
     a need to know such information and have agreed to keep such items
     confidential) without the prior written consent of the other Party which
     shall not be unreasonably withheld: (a) the terms or conditions of this
     Agreement or any other agreement between the Parties required hereby or
     referred to herein; or (b) any confidential or proprietary information or
     data, whether oral or written, received from the

                                       33

<PAGE>

     other Party.

14.2. DISCLOSURE PERMITTED

     Notwithstanding Section 14.1, Seller or Buyer may disclose: (a) such
     information as may be required by any applicable Law, regulation, or
     governmental order, including a requirement, regulation or order of the
     MPSC; (b) such information as may reasonably be required by any operator of
     the Facility, or by independent accountants, attorneys, credit rating
     agency representatives, other professional consultants, or prospective
     lenders or investors, subject to reasonable procedures and other safeguards
     to protect the confidentiality of the information disclosed; (c) any
     information which is or becomes publicly known, other than by breach of
     this Agreement by the receiving Party; (d) information which becomes
     available to the receiving Party hereunder without restriction from a third
     party; (e) information which is at any time developed by the receiving
     Party independently of any disclosures hereunder; or (f) such information
     regarding the terms of this Agreement as such Party deems necessary to
     enable it to comply with the Securities Exchange Act of 1934, as amended,
     or the rules, regulations and forms of the Securities and Exchange
     Commission issued thereunder, the rules of the New York Stock Exchange, or
     the rules, regulations or orders of the FERC. In addition, the Buyer or
     Seller may use the confidential information in connection with their
     respective dealings with Governing Authorities of competent jurisdiction.
     In connection with any such use, the Buyer or Seller, as applicable, agrees
     to request confidential treatment of the information.

14.3. SURVIVAL OF CONFIDENTIALITY

     The provisions of this Article XIV shall survive the Termination Date (or
     any earlier termination of this Agreement) for a period of five (5) years.

                              ARTICLE XV: INSURANCE

15.1. COVERAGE AND AMOUNTS OF SELLER AND BUYER. During the Term, Seller and
     Buyer shall procure, pay premiums for and maintain in full force and effect
     the insurance coverages described below.

     (a)  Worker's Compensation Insurance as required by the Laws of the State
          of Michigan, and employer's liability insurance with limits
          established by state or federal Law, if applicable. This policy is to
          be endorsed to include a Waiver of Subrogation in favor of the Buyer
          or Seller, as the case may be.

     (b)  Commercial General Liability Insurance, including coverage for: (i)
          premises/operations, (ii) independent contractor, (iii) products and
          completed operations, (iv) broad form contractual liability, (v) broad
          form property damage, (vi) explosion, collapse and underground damage
          exclusion deletion, and (vii) personal injury, all with limits of not
          less than $25,000,000 each occurrence and in the aggregate. Such
          coverage can be made up of a combination of primary (or

                                       34

<PAGE>

          in lieu thereof, self-insurance of no more than $10,000,000) and
          excess coverage policies.

     (c)  Comprehensive Vehicle Liability Insurance, covering all vehicles and
          automobiles whether owned, leased, or rented when used by such Party
          in connection with performance of this Agreement and including
          coverage for bodily injury and property damage in an amount not less
          than $1,000,000 per accident.

     (d)  Notwithstanding the foregoing, Seller or Buyer may self-insure to meet
          the minimum insurance requirements of Sections 15.1(a) through 15.1(c)
          to the extent it maintains a self-insurance program; provided that
          Seller's or Buyer's, as the case may be (or the Seller's Guarantor or
          Buyer's Guarantor, as the case may be) senior secured debt meets the
          rating specified in Section 7.2(a)(2) or 7.3(a)(2) and that its
          self-insurance program meets minimum insurance requirements under
          Sections 15.1(a) through 15.1(c). For any period of time that Seller
          or Buyer, as the case may be (or Seller's Guarantor or Buyer's
          Guarantor, as the case may be) senior secured debt is unrated, the
          Party shall comply with the insurance requirements applicable to it
          under Sections 15.1(a) through 15.1(c). In the event that a Party is
          permitted to self-insure pursuant to this Section 15.1(d), it shall
          notify the other Party that it meets the minimum insurance requirement
          in a manner consistent with that specified in this Article XV.

     (e)  On the Effective Date, and thereafter from time to time at the request
          of a Party, the other Party shall provide certificates of insurance
          from insurance companies having a Best rating of A minus or better
          confirming that the insurance coverages required herein are
          maintained. Such certificates shall provide that the other Party be
          given thirty (30) days' prior written notice by the insurer, or its
          authorized representative, of any cancellation and ten (10) days'
          prior written notice due to cancellation for non-payment of premiums
          in any required coverage provided by such insurer as evidenced by the
          certificates. In addition, each Party agrees to provide notice to the
          other Party of any material change in the insurance coverages or
          policies required hereby.

15.2. COVERAGE FOR FULL TERM

All required coverages shall remain in full force and effect during the Term.
Buyer's and Seller's liability under this Agreement shall not be limited to or
by the insurance coverage required in this Article XV.

                             ARTICLE XVI: ASSIGNMENT

16.1. BINDING EFFECT

     This Agreement shall be binding upon and shall inure to the benefit of the
     Parties and their respective successors and permitted assignees.

                                       35

<PAGE>

16.2. GENERAL

     Except as provided in this Article XVI, neither Party shall assign or
     otherwise convey any of its right, title, or interest under this Agreement
     without the prior written consent of the other Party hereto (which consent
     shall not be unreasonably withheld or delayed). Seller shall not be
     permitted to assign this Agreement to any Person unless such Person also
     acquires all or substantially all of Seller's interest in the Facility. Any
     assignment or delegation made without required consent shall be null and
     void.

16.3. ASSIGNMENT TO AN AFFILIATE

     Notwithstanding Section 16.2, each Party shall have the right to assign all
     or a portion of its rights or obligations under this Agreement to an
     Affiliate without the consent of the other Party, and such Affiliate to
     which this Agreement has been assigned shall have the right to further
     assign the Agreement back to assigning Party without the consent of the
     other Party; provided, however that (a) the assigning Party shall provide
     written notice of such assignment to the other Party and the assuming
     Affiliate agrees in writing to assume all obligations under this Agreement,
     (b) the assignee can document its financial strength is no worse than that
     of the assignor, or the assignee will provide credit support from an entity
     with financial strength no worse than that of the assignor, and (c) any
     security requirements then in effect pursuant to Article VII remain
     effective following the assignment, or are replaced with equivalent
     security to the reasonable satisfaction of the non-assigning Party. In the
     event of an assignment to an Affiliate pursuant to this section, the
     Parties agree that the assignor is not released from any and all further
     obligations under this Agreement.

16.4. ASSIGNMENT TO LENDERS

     Seller shall have the right to assign all or a portion of its rights or
     obligations under this Agreement to any lender providing financing for
     Seller's acquisition of the Facility as collateral security for obligations
     under the financing documents entered into with such lenders provided that:
     (a) Seller first provides Buyer with written notice of not less than sixty
     (60) days of such collateral assignment; and (b) Buyer consents to the form
     of collateral assignment and related documentation.

                           ARTICLE XVII: MISCELLANEOUS

17.1. DISPUTE RESOLUTION

     If a dispute arises between the Parties relating to this Agreement except
     with respect to the matters set forth in Sections 7.1(a), (b), (c) or (e),
     the following procedure shall be followed except that either Party may seek
     injunctive relief from a court where appropriate in order to maintain the
     status quo while this procedure is being followed.

     (a)  The Parties shall promptly hold a meeting, attended by persons with
          decision-making authority regarding the dispute, to attempt in good
          faith to negotiate a

                                       36

<PAGE>

          resolution of the dispute; provided, however, that no such meeting
          shall be deemed to vitiate or reduce the obligations or liabilities of
          the Parties hereunder or be deemed a waiver of a Party hereof of any
          remedies to which such Party would otherwise be entitled hereunder.

     (b)  If, within thirty (30) days following such meeting, the Parties have
          not succeeded in negotiating a resolution of the dispute, they agree
          to submit the dispute to binding arbitration in accordance with the
          Center for Public Resources Rules for Non-Administered Arbitration of
          Business Disputes, by a neutral arbitrator to be mutually selected by
          the Parties. The cost of the arbitrator shall be borne by the Parties,
          and the Parties shall equally bear the costs of such arbitration. If
          the Parties are unable to agree upon an arbitrator within thirty (30)
          days, the Parties may then petition the Circuit Court of Jackson
          County, Michigan to appoint the arbitrator.

     (c)  In the event the Circuit Court appoints an arbitrator, arbitration
          shall take place in a mutually acceptable location in the State of
          Michigan. Otherwise the location for arbitration shall be mutually
          agreed to by the Parties. In either case the substantive and
          procedural law of the State of Michigan shall apply to the
          proceedings. Equitable remedies shall be available in any arbitration.
          Punitive damages shall not be awarded. The written decision of the
          arbitrator shall be binding on the Parties and the Parties hereby
          agree to execute all necessary documents, including releases and
          subrogation agreements as necessary in order to conclude the matter
          upon the arbitrator rendering a final award. This Section is subject
          to the Federal Arbitration Act, 9 USCA Section 1 et seq. and judgment
          upon the award, if any, may be entered by any court having
          jurisdiction thereof.

17.2. RECORDING TELEPHONE CONVERSATIONS

     Each Party agrees that the other Party or its representatives may record
     any or all telephone conversations between representatives of the two
     Parties pursuant to or relating to this Agreement and will advise the other
     Party that the conversation is being recorded. Seller is hereby advised
     that telephone conversations with Buyer's personnel relating to Articles
     II, IV and V are routinely recorded. Each Party further agrees that such
     recorded telephone conversations shall not be deemed inadmissible in any
     arbitration proceeding or court of law by virtue of the recorded nature of
     the conversations or any authority or lack of authority to make such
     recording. Each Party hereby waives any objection to the introduction of
     such recorded telephone conversations as evidence in any arbitration
     proceeding or court of law to the extent such objections are based on the
     recorded nature of such conversations or the authority or lack of authority
     to make such recording.

17.3. COMPLIANCE WITH LAWS

     Each Party shall at all times conform to all applicable Laws. Each Party
     shall give all required notices, shall procure and maintain all necessary
     Authorizations, governmental permits, licenses and inspections necessary
     for its performance of this Agreement, and shall pay all charges and fees
     in connection therewith.

                                       37

<PAGE>

17.4. TAXES AND OTHER CHARGES

     (a)  Seller's Taxes.

          Seller is liable for and shall pay, or cause to be paid, or reimburse
          Buyer if Buyer has paid, all Taxes applicable to any transaction
          arising out of this Agreement prior to the Delivery Point on the sale
          of Energy, Capacity or Ancillary Services to Buyer. Seller shall
          indemnify, defend and hold harmless Buyer from any Claims for such
          Taxes applicable prior to the Delivery Point.

     (b)  Buyer's Taxes.

          Buyer is liable for and shall pay, or cause to be paid, or reimburse
          Seller if Seller has paid, all Taxes applicable to any transaction
          arising out of this Agreement at or after the Delivery Point on the
          purchase by Buyer of Energy, Capacity or Ancillary Services. Buyer
          shall indemnify, defend and hold harmless Seller from any Claims for
          such Taxes applicable at or after the Delivery Point.

     (c)  Certificate of Tax Exemption.

          Either Party, upon written request of the other, shall provide a
          certificate of exemption or other reasonably satisfactory evidence of
          exemption if either Party is exempt from Taxes.

17.5. FUTURE ATTRIBUTES

     In the event that, at any time during the Term, a change in Law occurs that
     causes capability of the Facility as in existence on the date hereof to
     become a tradable attribute (e.g., emission credit, renewable energy
     credit, environmental credit, "Green" credit, etc.) or otherwise to have a
     market value, Buyer shall be entitled to one hundred percent (100%) of such
     tradable attribute and the benefits of such attribute until the tenth
     (10th) anniversary of the Effective Date and thereafter fifty percent (50%)
     until the Termination Date (with the other fifty percent (50%) belonging to
     Seller), and the Parties shall in good faith negotiate to reflect such
     allocation to Buyer at no additional cost to Buyer. Seller agrees to
     execute a separate agreement to transfer to Buyer any revenue, or any other
     benefit received by Seller for Buyer's tradable attributes and to execute
     all documents and agreements and take all steps necessary to permit Buyer
     to market Buyer's tradable attributes. Seller shall be entitled to all
     attributes and benefits arising from an Uprate.

17.6. FINANCIAL TRANSMISSION RIGHTS

     Buyer shall be entitled to all financial transmission rights or other
     rights and benefits with the Transmission Provider associated with the
     Capacity, Energy and Ancillary Services being purchased hereunder. Seller
     shall cooperate in good faith with Buyer to ensure that such financial
     transmission rights and other rights and benefits are assigned and
     transferred to Buyer at no additional cost to Buyer.

                                       38

<PAGE>

17.7. GOVERNING LAW; VENUE

     This Agreement shall be governed by and construed in accordance with the
     law of the State of Michigan (without giving effect to conflict of law
     principles) as to all matters, including but not limited to matters of
     validity, construction, effect, performance and remedies. THE PARTIES
     HERETO AGREE THAT VENUE IN ANY AND ALL ACTIONS AND PROCEEDINGS RELATED TO
     THE SUBJECT MATTER OF THIS AGREEMENT SHALL BE IN THE UNITED STATES DISTRICT
     COURT FOR THE WESTERN DISTRICT OF MICHIGAN. THE FOREGOING COURT SHALL HAVE
     EXCLUSIVE JURISDICTION FOR SUCH PURPOSES, AND THE PARTIES HERETO
     IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURT AND
     IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
     OF ANY SUCH ACTION OR PROCEEDING. SERVICE OF PROCESS MAY BE MADE IN ANY
     MANNER RECOGNIZED BY SUCH COURT. EACH OF THE PARTIES HERETO IRREVOCABLY
     WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM
     ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT OR THE
     TRANSACTIONS CONTEMPLATED HEREBY.

17.8. ENTIRE AGREEMENT; AMENDMENT

     This Agreement constitutes the entire agreement between the Parties
     pertaining to the subject matter of this Agreement, and supersedes and
     terminates any letters of intent and all prior and contemporaneous
     agreements, understandings, negotiations and discussions with the Parties,
     whether oral or written, regarding said subject matter, and there are no
     warranties, representations or other agreements between the Parties in
     connection with the subject matter of this Agreement, except as
     specifically set forth in this Agreement. NEITHER PARTY TO THIS AGREEMENT
     MAKES ANY REPRESENTATION, WARRANTY OR INDEMNITY, EXPRESS OR IMPLIED, TO THE
     OTHER PARTY TO THIS AGREEMENT EXCEPT FOR THE REPRESENTATIONS, WARRANTIES
     AND INDEMNITIES EXPRESSLY SET FORTH IN THIS AGREEMENT. No amendment,
     supplement, modification, waiver or termination of this Agreement shall be
     binding unless executed in writing by the Party to be bound thereby. No
     waiver of any of the provisions of this Agreement shall be deemed or shall
     constitute a waiver of any other provision of this Agreement, whether or
     not similar, nor shall such waiver constitute a continuing waiver unless
     otherwise expressly provided.

17.9. NO IMPLIED WAIVER

     The failure or delay of any Party hereto to enforce at any time any of the
     provisions of this Agreement, or to require at any time performance of the
     other Party hereto of any of the provisions hereof, shall neither be
     construed to be a waiver of such provisions nor affect the validity of this
     Agreement or any part hereof or the right of such Party thereafter to
     enforce each and every such provision.

                                       39

<PAGE>

17.10. SEVERABILITY

     Any provision of this Agreement declared or rendered unlawful by any
     Governing Authority or deemed unlawful because of a statutory change
     (individually or collectively, such events referred to as a "Regulatory
     Event") will not otherwise affect the remaining lawful obligations that
     arise under this Agreement; provided, however, that if a Regulatory Event
     occurs, the Parties shall use their best efforts to reform this Agreement
     in order to give effect to the original intention of the Parties.
     Additionally, in the event any Governing Authority imposes on Seller, the
     Facility or any Energy, Capacity or Ancillary Services delivered to Buyer
     by Seller pursuant to this Agreement any Tax or other payment obligation
     related to the ownership or operation of the Facility and not otherwise
     generally imposed on electric generation facilities under the jurisdiction
     of such Governing Authority, or energy, capacity or ancillary services
     produced thereby, then in such case the Energy Payment applicable to a
     Billing Cycle shall be increased to reflect fifty percent (50%) of such Tax
     or other payment obligation to the extent paid by Seller in such Billing
     Cycle. The Energy Payment applicable to a Billing Cycle shall be increased
     to reflect one-twelfth of 50% of any incremental real property Taxes paid
     with respect to any spent nuclear fuel storage facility located in
     Charlevoix County, Michigan owned by Seller, to the extent such Taxes with
     respect to such facility exceed $50,000 in the year of the Effective Date,
     or in subsequent years, $50,000 plus 4% per year.

17.11. NO EXCLUSIVITY/DEDICATION OF ASSETS

     This Agreement is not intended to be an exclusive arrangement between Buyer
     and Seller. No undertaking by a Party hereto to the other Party hereto
     under any provision of this Agreement shall constitute the dedication of
     that Party's assets or any portion thereof to the other Party or to the
     public.

17.12. EXPENSES

     Each Party shall pay the fees and expenses of its respective counsel,
     accountants, brokers, consultants, investment bankers and other experts
     incident to the negotiation and preparation of this Agreement.

17.13. COUNTERPARTS

     This Agreement may be executed simultaneously in two (2) or more
     counterparts, each of which shall be deemed an original but all of which
     together shall constitute one and the same instrument.

17.14. SURVIVAL

     The applicable provisions of this Agreement shall continue in effect after
     the termination of this Agreement, to the extent necessary to provide for
     final billing and adjustment, and to make other appropriate settlements
     hereunder. Those provisions hereof that by their express terms are intended
     to survive this Agreement shall so survive for the periods indicated.

                                       40

<PAGE>

17.15. THIRD-PARTY BENEFICIARY

     Nothing expressed or referenced in this Agreement shall be construed to
     give any Person other than the Parties hereto any legal or equitable right,
     remedy or claim under or with respect to this Agreement or any provision of
     this Agreement. This Agreement and the provisions and conditions hereof are
     for the sole and exclusive benefit of the Parties hereto, and their
     permitted successors and permitted assigns.

17.16. MOBILE-SIERRA

     It is the intent of the Parties that the rates and all other terms and
     conditions of the services provided hereunder shall not be subject to
     change under Sections 205 or 206 of the Federal Power Act of 1935, as
     amended, 16 U.S.C. Section 791 et seq. (or any successor legislation),
     without the consent of both Parties. Each of the Parties hereto agrees not
     to unilaterally file with the FERC a change in the rates, terms or
     conditions of this Agreement. Moreover, absent agreement of all Parties to
     a proposed change, the standard of review for changes to any rate, term or
     condition of this Agreement proposed by a non-Party or the FERC or any
     other Governing Authority acting sua sponte shall be the "public interest"
     standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas
     Services Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra
     Pacific Power Co., 350 U.S. 348 (1956). To the extent that the FERC adopts
     specific language that parties must incorporate into agreements in order to
     bind FERC, third parties and themselves to a public interest standard of
     review, the Parties hereby incorporate such language herein by reference.

17.17. FORWARD CONTRACT

     The Parties acknowledge and agree that this Agreement, the transactions
     contemplated hereby, and any security instrument that may be provided by
     either Party under Article VII shall each, and together, constitute one and
     the same "forward contract" within the meaning of the United Stated
     Bankruptcy Code (the "Code"), and Seller, Seller's Guarantor, Buyer, and
     the Buyer's Guarantor shall each constitute a "forward contract merchant"
     under the Code.

                                       41

<PAGE>

          IN WITNESS WHEREOF, each of the Parties hereto has caused this
Agreement to be executed on its behalf by its duly authorized officer as of the
date first set forth above.

                                        ENTERGY NUCLEAR PALISADES, LLC

                                        By: /s/ Gary J. Taylor
                                            ------------------------------------
                                            Gary J. Taylor
                                            President

                                        CONSUMERS ENERGY COMPANY

                                        By: /s/ Robert A. Fenech
                                            ------------------------------------
                                            Robert A. Fenech
                                            Senior Vice President
                                            Nuclear, Fossil & Hydro Operations

                                       42
<PAGE>

                                    EXHIBIT A

                         CAPACITY AND ENERGY CHARGES(1)

<TABLE>
<CAPTION>
            CAPACITY       ENERGY CHARGE (IN      TOTAL
YEAR   CHARGE (IN $/MWH)         $/MWH)        (IN $/MWH)
----   -----------------   -----------------   ----------
<S>    <C>                 <C>                 <C>
2007    [to be inserted]    [to be inserted]     $43.50
2008    [to be inserted]    [to be inserted]     $44.00
2009    [to be inserted]    [to be inserted]     $44.50
2010    [to be inserted]    [to be inserted]     $45.75
2011    [to be inserted]    [to be inserted]     $47.00
2012    [to be inserted]    [to be inserted]     $48.25
2013    [to be inserted]    [to be inserted]     $49.00
2014    [to be inserted]    [to be inserted]     $50.00
2015    [to be inserted]    [to be inserted]     $51.00
2016    [to be inserted]    [to be inserted]     $52.50
2017    [to be inserted]    [to be inserted]     $54.00
2018    [to be inserted]    [to be inserted]     $55.50
2019    [to be inserted]    [to be inserted]     $57.00
2020    [to be inserted]    [to be inserted]     $58.50
2021    [to be inserted]    [to be inserted]     $60.00
2022    [to be inserted]    [to be inserted]     $61.50
2023    [to be inserted]    [to be inserted]     $63.00
</TABLE>

For each month during the Term, the Capacity Charge and the Energy Charge set
forth above shall be adjusted by multiplying the amount of such charge by the
applicable Shaping Factor for such month as set forth on Exhibit C hereto.

----------
(1)  Within three weeks of the execution of this Agreement, Buyer shall provide
     a notice to Seller that shall allocate the Total value for each year in the
     above table as between the Capacity Charge and the Energy Charge, and this
     Exhibit A shall be modified accordingly.

<PAGE>

                                    EXHIBIT B

                             BUYER'S CAPACITY AMOUNT

For any given month during the Term, the Buyer's Capacity Amount shall be as set
forth in the table below:

<TABLE>
<CAPTION>
COLUMN A            COLUMN B                 COLUMN C               COLUMN D
MONTH       CAPACITY OF THE FACILITY   BUYER'S ENTITLEMENT   BUYER'S CAPACITY AMOUNT
--------    ------------------------   -------------------   -----------------------
<S>         <C>                        <C>                   <C>
January              813 MW                    100%                   813 MW
February             811 MW                    100%                   811 MW
March                809 MW                    100%                   809 MW
April                801 MW                    100%                   801 MW
May                  794 MW                    100%                   794 MW
June                 786 MW                    100%                   786 MW
July                 781 MW                    100%                   781 MW
August               778 MW                    100%                   778 MW
September            783 MW                    100%                   783 MW
October              800 MW                    100%                   800 MW
November             809 MW                    100%                   809 MW
December             810 MW                    100%                   810 MW
</TABLE>

Column A - Depicts the month of the year.

Column B - Will be updated over the Term of this Agreement to reflect the
Capacity of the Facility, as determined in accordance with ECAR 4 (or with the
Effective Capacity Requirements, if applicable).

Column C - Indicates the Buyer's Entitlement of the output of the Facility. This
value will be updated only after an Uprate (as defined in 1.1 (83)). The Buyer's
Entitlement shall be determined in accordance with Section 2.6 as follows (both
values shall be determined or measured for the same month):

           Capacity of the Facility before the Uprate Capability Test
    -------------------------------------------------------------------------
       Capacity of the Facility resulting from the Uprate Capability Test

Column D - Shall be the product of Column B and Column C, as those values may be
revised over the Term of this Agreement.

<PAGE>

                                    EXHIBIT C

                   CAPACITY AND ENERGY CHARGE SHAPING FACTORS

<TABLE>
<CAPTION>
MONTH       ON-PEAK HOURS   OFF-PEAK HOURS
-----       -------------   --------------
<S>         <C>             <C>
January         1.350           0.8275
February        1.200           0.6750
March           1.140           0.6750
April           1.140           0.6750
May             1.200           0.6750
June            1.400           0.8250
July            1.500           0.9500
August          1.500           0.9500
September       1.400           0.8275
October         1.140           0.6750
November        1.140           0.6750
December        1.200           0.6750
</TABLE>

<PAGE>

                                    EXHIBIT G

                             PEAK ADJUSTMENT PAYMENT

During the months of July and August for each Calendar Year of the Term (the
"Peak Period"), Seller must achieve a specified capacity factor for the Facility
as set forth in this Exhibit G. If Seller fails to achieve such a capacity
factor for the specified period, Seller shall be responsible for a payment to
Buyer (the "Peak Adjustment Payment") calculated in accordance with the
following formula:

(TEM - DEM) x $20/MWh

where

TEM = Targeted Energy for the month, which shall be the product of: (i) the
applicable Buyer's Capacity Amount for the month; (ii) the number of hours in
the month; and (iii) the Target Capacity Factor.

DEM = Delivered Energy for the month.

If the resulting product of the above formula is positive, then such positive
amount shall equal the Peak Adjustment Payment for the month in question and
Seller shall pay that Peak Adjustment Payment in accordance with this Exhibit G.
If the resulting product is zero or negative, then Seller shall owe no Peak
Adjustment Payment to Buyer for the month. For purposes of calculating the TEM
and DEM, the determination of the applicable number of hours in a month and the
Delivered Energy for a month shall exclude (a) hours within an Summer
Maintenance Outage that occurs in that month and Energy delivered during those
outage hours, and (b) hours for which a damages amount has been paid by, or is
due from, Seller pursuant to Section 2.4(d) or Section 4.1(b).

If it is determined that Seller owes Buyer a Peak Adjustment Payment for a
particular month, Buyer shall have the right to either (a) demand payment of
that Peak Adjustment Payment in writing, in which case Seller shall make such
payment to Buyer within five (5) Business Days after the written demand for
payment is received, or (b) reduce the payments otherwise due to Seller under
this Agreement for the Billing Cycle that includes the month in question by the
amount of the Peak Adjustment Payment.<PAGE>
                                                                EXHIBIT (10)(c)

                            STOCK PURCHASE AGREEMENT

                            DATED AS OF JULY 24, 2006

                                  BY AND AMONG

                            CONSUMERS ENERGY COMPANY,

                               CMS MIDLAND, INC.,

                          CMS MIDLAND HOLDINGS COMPANY

                                       AND

                            MCV POWER PARTNERS, INC.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>       <C>                                                               <C>
                                    ARTICLE I
                           SALE AND PURCHASE OF SHARES

 1.1      Sale and Purchase of CMS Holdings Shares.......................     1
 1.2      Purchase Price.................................................     2
 1.3      Closing........................................................     2
 1.4      Closing Deliveries.............................................     2
 1.5      Purchase Agreement Fee.........................................     2
 1.6      Pre-Closing Restructuring......................................     3

                                   ARTICLE II
                              WARRANTIES OF SELLER

 2.1      Organization and Qualification.................................     3
 2.2      Capitalization; Right and Title to Interests...................     3
 2.3      Authority; Non-Contravention; Statutory Approvals..............     3
 2.4      Litigation.....................................................     4
 2.5      Absence of Defaults............................................     4
 2.6      Composite PPA, etc.............................................     5

                                   ARTICLE III
                           WARRANTIES OF THE COMPANIES

 3.1      Organization and Qualification; Authority; Non-Contravention;
          Statutory Approvals............................................     5
 3.2      Capitalization.................................................     6
 3.3      Financial Statements...........................................     7
 3.4      Absence of Certain Changes or Events...........................     8
 3.5      Tax Matters....................................................     8
 3.6      Litigation.....................................................    10
 3.7      Compliance with Laws...........................................    11
 3.8      Employee Benefits..............................................    11
 3.9      Permits........................................................    13
 3.10     Tangible Property..............................................    13
 3.11     Contracts......................................................    14
 3.12     Environmental Matters..........................................    16
 3.13     Labor Matters..................................................    17
 3.14     Intellectual Property..........................................    17
 3.15     Affiliate Contracts............................................    17
 3.16     Insurance......................................................    18
 3.17     Brokers and Finders............................................    18
 3.18     Absence of Certain Matters and Notices.........................    18
</TABLE>

                                        i

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>       <C>                                                               <C>
                                   ARTICLE IV
                             WARRANTIES OF PURCHASER

 4.1      Organization and Qualification.................................    18
 4.2      Authority; Non-Contravention; Statutory Approvals..............    18
 4.3      Financing......................................................    19
 4.4      Litigation.....................................................    20
 4.5      Investment Intention; Sufficient Investment Experience;
          Independent Investigation......................................    20
 4.6      Brokers and Finders............................................    20
 4.7      Qualified for Permits..........................................    20
 4.8      No Knowledge of Seller or Company Breach.......................    21
 4.9      Environmental Review...........................................    21

                                    ARTICLE V
                                    COVENANTS

 5.1      Conduct of Business............................................    21
 5.2      Regulatory Approvals...........................................    23
 5.3      Required Consents..............................................    23
 5.4      Access.........................................................    23
 5.5      Publicity......................................................    24
 5.6      Fees and Expenses..............................................    24
 5.7      Indemnification of Directors and Officers......................    25
 5.8      Termination of Affiliate Contracts.............................    26
 5.9      Further Assurances.............................................    26
 5.10     Supplements to Company Disclosure Schedules....................    26
 5.11     Change of Name.................................................    27
 5.12     Financing......................................................    27
 5.13     Termination of Tax Sharing Agreements..........................    28
 5.14     Tax Matters....................................................    28
 5.15     Unwind Agreement...............................................    32
 5.16     Books and Records..............................................    32
 5.17     FIRPTA Certificate.............................................    33

                                   ARTICLE VI
                              CONDITIONS TO CLOSING

 6.1      Conditions to the Obligations of the Parties...................    33
 6.2      Conditions to the Obligation of Purchaser......................    33
 6.3      Conditions to the Obligation of Seller.........................    34

                                   ARTICLE VII
                                   TERMINATION

 7.1      Termination....................................................    35
 7.2      Effect of Termination..........................................    36
</TABLE>

                                       ii

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>       <C>                                                               <C>
                                  ARTICLE VIII
                               LIMITS OF LIABILITY

 8.1      Non-Survival of Warranties, Covenants and Agreements...........    36
 8.2      Seller Indemnity...............................................    38
 8.3      Purchaser Indemnity............................................    38
 8.4      Claim Process..................................................    38
 8.5      Limitations on Claims..........................................    40
 8.6      Characterization of Payments for Damages.......................    42

                                   ARTICLE IX
                         DEFINITIONS AND INTERPRETATION

 9.1      Defined Terms..................................................    42
 9.2      Definitions....................................................    44
 9.3      Interpretation.................................................    50

                                    ARTICLE X
                               GENERAL PROVISIONS

 10.1     Notices........................................................    50
 10.2     Binding Effect.................................................    52
 10.3     Assignment; Successors; Third-Party Beneficiaries..............    52
 10.4     Amendment; Waivers; etc........................................    53
 10.5     Entire Agreement...............................................    53
 10.6     Severability...................................................    53
 10.7     Counterparts...................................................    54
 10.8     Governing Law..................................................    54
 10.9     Jurisdiction...................................................    54
 10.10    Limitation on Damages..........................................    54
 10.11    Enforcement....................................................    54
 10.12    No Right of Set-Off............................................    54
</TABLE>

                                       iii
<PAGE>

                                    SCHEDULES

Schedule 1.6           Pre-Closing Restructuring
Schedule 2.3(b)        Seller Required Consents
Schedule 2.3(c)        Seller Required Statutory Approvals
Schedule 2.6           Composite PPA
Schedule 3.1(a)        Organization and Qualification
Schedule 3.1(c)        Company Required Consents
Schedule 3.1(d)        Company Required Statutory Approvals
Schedule 3.2(a)        Partnership and Owner Participant
Schedule 3.2(c)        Agreements regarding Shares and Equity Interests
Schedule 3.4(a)        Absence of Certain Changes or Events
Schedule 3.5           Tax Matters
Schedule 3.6           Litigation
Schedule 3.7(a)        Compliance with Laws
Schedule 3.8(a)        Employee Benefits - A
Schedule 3.8(f)        Employee Benefits - B
Schedule 3.9(a)        Permits
Schedule 3.10          Tangible Property
Schedule 3.11(a)       Contracts - A
Schedule 3.11(b)(i)    Contracts - B
Schedule 3.11(b)(ii)   Contracts - C
Schedule 3.12          Environmental Matters
Schedule 3.13(a)       Labor Matters - A
Schedule 3.13(b)       Labor Matters - B
Schedule 3.15          Affiliate Contracts
Schedule 3.16          Insurance
Schedule 4.2(b)        Purchaser Required Consents
Schedule 4.2(c)        Purchaser Required Statutory Approvals
Schedule 4.3           Financing Arrangements
Schedule 4.4           Purchaser Litigation
Schedule 5.1           Conduct of Business
Schedule 5.4           Access

                                       iv

<PAGE>

                                    SCHEDULES

Schedule 5.8           Termination of Affiliate Contracts
Schedule 6.1(a)        Statutory Approvals
Schedule 6.2(e)        Resignations of Certain Officers & Directors
Schedule 9.2(a)        Knowledge Groups
Schedule 9.2(b)        Purchaser Knowledge Group
Schedule 9.2(c)        Unwind Agreement

                                    EXHIBITS

Exhibit A   SEPA Payment Agreement
Exhibit B   Disclosure Letter
Exhibit C   Instrument of Assignment

                                        v

<PAGE>

                            STOCK PURCHASE AGREEMENT

     This STOCK PURCHASE AGREEMENT (this "Agreement"), dated as of July 24,
2006, is entered into by and among Consumers Energy Company (formerly known as
Consumers Power Company), a Michigan corporation ("Seller"), CMS Midland, Inc.,
a Michigan corporation ("CMS Midland"), CMS Midland Holdings Company, a Michigan
corporation ("CMS Holdings"; each of CMS Midland and CMS Holdings is also
referred to herein as a "Company" and, collectively, the "Companies"), and MCV
Power Partners, Inc., a Delaware corporation ("Purchaser"). Each of Purchaser,
the Companies and Seller are sometimes referred to individually herein as a
"Party" and collectively as the "Parties". Certain other terms are defined
throughout this Agreement and in Section 9.2 hereof.

                                   WITNESSETH:

     WHEREAS Seller owns all the issued and outstanding Equity Interests in (i)
CMS Midland and (ii) CMS Holdings;

     WHEREAS CMS Holdings is a limited partner holding a 46.3818658% equity
interest in First Midland Limited Partnership, a Delaware limited partnership
(the "Owner Participant"), which entered into the Trust Agreement and certain
documents related thereto in respect of the sale and leaseback of a 75.46053%
undivided ownership interest in the MCV Facility;

     WHEREAS pursuant to the Amended and Restated Lease Agreement dated as of
June 1, 1990, as amended, between the Lessor and Midland Cogeneration Venture
Limited Partnership, a Michigan limited partnership (the "Partnership"), as
lessee, the Lessor leases such undivided ownership interest in the MCV Facility
to the Partnership;

     WHEREAS CMS Midland is a general partner holding a 49% (+/- 0.001%) equity
interest in the Partnership as set forth in the MCV Partnership Agreement;

     WHEREAS prior the Closing, Seller shall effect the transactions
contemplated in Schedule 1.6 of the Disclosure Letter; and

     WHEREAS Purchaser desires to purchase from Seller, and Seller desires to
sell to Purchaser, all the CMS Holdings Shares (and indirectly the Equity
Interest in CMS Midland), upon the terms and subject to the conditions set forth
in this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises, covenants and
warranties made in this Agreement and of the mutual benefits to be derived
therefrom, the Parties agree as follows:

<PAGE>

                                    ARTICLE I

                           SALE AND PURCHASE OF SHARES

          1.1 Sale and Purchase of CMS Holdings Shares. Upon the terms and
subject to the conditions of this Agreement, at the Closing, Purchaser shall
purchase from Seller, and Seller shall sell to Purchaser, good and valid title
free and clear of any Liens except those created by Purchaser arising out of
ownership of the Shares by Purchaser, all the CMS Holdings Shares (the
"Transaction").

          1.2 Purchase Price. The consideration to be paid by Purchaser in
respect of the purchase of CMS Holdings Shares (and indirectly the Equity
Interest in CMS Midland) shall be an amount in cash equal to Sixty Million Five
Hundred Thousand DOLLARS ($60,500,000) (the "Purchase Price").

          1.3 Closing. The closing of the Transaction (the "Closing") shall take
place at the offices of Sidley Austin LLP, 787 Seventh Avenue, New York, New
York, at 10:00 a.m., local time, as soon as practicable, but in any event not
later than the second (2nd) Business Day immediately following the date on which
the last of the conditions contained in Article VI is fulfilled or waived
(except for those conditions which by their nature can only be fulfilled at the
Closing, but subject to the fulfillment or waiver of such conditions), or at
such other place, time and date (the "Closing Date") as the Parties may agree.

          1.4 Closing Deliveries. At the Closing:

          (a) Seller shall deliver to Purchaser one or more stock certificates
evidencing the CMS Holdings Shares, duly endorsed in blank or accompanied by
powers duly executed in blank in proper form for transfer.

          (b) Purchaser shall pay, or cause to be paid, to Seller an amount in
cash equal to the Purchase Price, for the CMS Holdings Shares so delivered by
Seller, by wire transfer of immediately available funds to the bank account or
accounts designated by Seller prior to the Closing and application of amounts
previously delivered to Seller pursuant to Section 1.5.

          (c) Seller shall deliver to Purchaser the SEPA Payment Agreement
executed by Purchaser substantially in the form of Exhibit A hereto (the "SEPA
Payment Agreement").

          (d) Each Party shall deliver the certificates, agreements, instruments
and other documents required to be delivered by it pursuant to Article VI
hereof.

          1.5 Purchase Agreement Fee. Simultaneously with the execution of this
Agreement and in consideration of the time expended and expense incurred by
Seller and the Companies in negotiating and executing this Agreement, Purchaser
shall pay to Seller an amount in cash equal to five percent (5%) of the Purchase
Price (such amount, plus any interest deemed earned thereon from (and including)
the date hereof to (but excluding) the Closing Date or date of earlier
termination of this Agreement being referred to as the "Purchase Agreement
Fee"), in each case by wire transfer of immediately available funds to the bank
account or accounts that have been designated by Seller. The Purchase Agreement
Fee will be deemed to earn interest at the Specified Rate. Notwithstanding any
provision to the contrary contained herein, the Purchase Agreement Fee shall be
nonrefundable by Seller except in the event that this Agreement is duly and
validly terminated in accordance with Section 7.1(b) or Section 7.1(c) hereof or
Purchaser duly and validly terminates this Agreement in accordance with Section
7.1(d) hereof, in which event Seller shall pay to Purchaser, no later than ten
(10) Business Days following the effective date of such termination, an amount
equal to the Purchase Agreement Fee received by it pursuant to this Section 1.5
hereof by wire transfer of immediately available funds

                                        2

<PAGE>

to the bank account or accounts designated by Purchaser. The Purchase Agreement
Fee received by Seller shall be credited against (x) the Purchase Price payable
to Seller at the Closing in accordance with Section 1.4 hereof or (y) if this
Agreement is terminated (other than pursuant to Section 7.1(b) or 7.1(d)
hereof), the Damages, if any owed by Purchaser to Seller arising out of breach
of this Agreement by Purchaser. The Purchase Agreement Fee shall not be deemed
to be a liquidated damages payment for any breach by Purchaser of this
Agreement.

          1.6 Pre-Closing Restructuring. Prior to Closing, Seller shall effect
or cause to be effected the transactions contemplated in Schedule 1.6 of the
Disclosure Letter. Such transactions are intended to be a "reorganization" under
Section 368(a) of the Code, and the Parties agree to prepare, or cause to be
prepared, their respective Tax Returns in a manner consistent with such intent.

                                   ARTICLE II

                              WARRANTIES OF SELLER

     Except as disclosed in the Disclosure Letter attached hereto as Exhibit B
(the "Disclosure Letter"), Seller warrants, as to itself only, to Purchaser as
follows in this Article II:

          2.1 Organization and Qualification. Seller is a corporation duly
formed and validly existing under the laws of Michigan, and has full corporate
power and authority to own, lease and operate its assets and properties and to
conduct its business as presently conducted, except where the failure to have
such power and authority would not reasonably be expected to have, individually
or in the aggregate, a Seller Material Adverse Effect.

          2.2 Capitalization; Right and Title to Interests. As of the date
hereof, the authorized capital stock of (i) CMS Midland consists of 100,000
shares of common stock, of which 110 shares are issued and outstanding ("CMS
Midland Shares"), and (ii) CMS Holdings consists of 60,000 shares of common
stock, of which 10 shares are issued and outstanding (the "CMS Holdings Shares"
and, together with the CMS Midland Shares, the "Shares"). As of the date hereof,
CMS Midland Shares constitutes all of the issued and outstanding Equity
Interests in CMS Midland. As of the date hereof, CMS Holdings Shares constitutes
all of the issued and outstanding Equity Interests in CMS Holdings. Seller is
the record and beneficial holder of and has good and valid title to CMS Holdings
Shares and, as of the date hereof, the CMS Midland Shares. Seller holds, and
upon completion of the transactions referred to and as contemplated herein,
Purchaser shall have acquired from Seller, good and valid title to the CMS
Holdings Shares free and clear of any and all Liens.

          2.3 Authority; Non-Contravention; Statutory Approvals.

          (a) Authority. Seller has full corporate power and authority to enter
into this Agreement and, subject to receipt of the Seller Required Statutory
Approvals, to consummate the transactions contemplated hereby. The execution,
delivery and performance by Seller of this Agreement and the consummation by
Seller of the transactions contemplated hereby have been duly and validly
authorized by all requisite corporate action on the part of Seller, and no other
corporate proceedings or approvals on the part of Seller are necessary to
authorize this

                                        3

<PAGE>

Agreement or to consummate the transactions contemplated hereby. This Agreement
has been duly executed and delivered by Seller and, assuming the due
authorization, execution and delivery hereof by each other Party, constitutes
the legal, valid and binding obligation of Seller, enforceable against Seller in
accordance with its terms, except as limited by Laws affecting the enforcement
of creditors' rights generally or by general equitable principles.

          (b) Non-Contravention. The execution and delivery of this Agreement by
Seller does not, and the consummation of the transactions contemplated hereby
will not, result in any violation or breach of or default (with or without
notice or lapse of time or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation under (any such violation,
breach, default, right of termination, cancellation or acceleration is referred
to herein as a "Violation"), or result in the creation of any Lien upon any of
the properties or assets of Seller pursuant to any provision of (i) subject to
obtaining the third-party Consents set forth in Schedule 2.3(b) of the
Disclosure Letter (the "Seller Required Consents"), the Organizational Documents
of Seller; (ii) subject to obtaining the Seller Required Consents, any lease,
mortgage, indenture, note, bond, deed of trust, or other instrument or agreement
of any kind to which it is a party or by which it may be bound; or (iii) subject
to obtaining the Seller Required Statutory Approvals, any Law, Permit or
Governmental Order applicable to it other than in the case of clauses (i), (ii)
and (iii) any such Violation or Lien which would not reasonably be expected to
have, individually or in the aggregate, a Seller Material Adverse Effect or a
Company Material Adverse Effect.

          (c) Statutory Approvals. Except for the filings or approvals (i) set
forth in Schedule 2.3(c) of the Disclosure Letter (the "Seller Required
Statutory Approvals") and (ii) as may be required due to the regulatory or other
status of Purchaser, no Consent of any Governmental Entity is required to be
made or obtained by Seller in connection with the execution and delivery of this
Agreement or the consummation by Seller of the transactions contemplated hereby,
except those which the failure to obtain or make would not reasonably be
expected to have, individually or in the aggregate, a Seller Material Adverse
Effect or a Company Material Adverse Effect.

          2.4 Litigation. There is no action, claim, suit or proceeding at law
or in equity pending or, to the Knowledge of Seller, threatened against Seller
that, if adversely determined, would reasonably be expected to have,
individually or in the aggregate, a Seller Material Adverse Effect. Subject to
obtaining the Seller Required Statutory Approvals, there are no Governmental
Orders of or by any Governmental Entity applicable to Seller except for such
that would not reasonably be expected to have, individually or in the aggregate,
a Seller Material Adverse Effect or a Company Material Adverse Effect.

          2.5 Absence of Defaults. To the Knowledge of Seller, Seller is not in
breach or default under any Affiliate Contract to which Seller is a party, which
breach or default has not been waived, and, to the Knowledge of Seller, no other
party to any such Affiliate Contract to which Seller is a party is in breach or
default, except in each case, for any breach or default that would not
reasonably be expected to have, individually or in the aggregate, a Seller
Material Adverse Effect or a Company Material Adverse Effect.

                                        4

<PAGE>

          2.6 Composite PPA, etc. Attached as Exhibit B to the Consumers Consent
is a true, correct and complete conformed composite copy of the Power Purchase
Agreement dated as of July 17, 1986, as amended, between Seller and MCV as in
effect on June 1, 1990 (the "Composite PPA"). Other than as reflected in the
Composite PPA or as may have been effected by the Consumers Consent, the RCA,
the RDA, the parties' course of dealing under Section 7(c) of the PPA and the
matters listed on Schedule 2.6 of the Disclosure Letter, there are no written
amendments, modifications, additions, deletions or other changes to the
Composite PPA. Prior to and after the Commercial Operation Date (as defined in
the Composite PPA), Seller and the Partnership have entered into various
agreements or undertakings including the Composite PPA and its amendments
related to charges for capacity and energy purchased from the Partnership and
delivered or made available to Seller (the "C&E Agreements"). The C&E Agreements
taken collectively constitute a settlement or resolution of claims relating to
the purchase of energy and capacity purported to be covered thereby for all
periods from the Commerical Operation Date through and including September 15,
2007 and do not act to suspend or otherwise delay or toll Seller's rights to
seek recovery from the Partnership with respect to such energy and capacity
purchases.

                                   ARTICLE III

                           WARRANTIES OF THE COMPANIES

     Except as disclosed in the Disclosure Letter and except for any actions
permitted by Section 5.1 of this Agreement, each of the Companies warrants to
Purchaser as follows in this Article III:

          3.1 Organization and Qualification; Authority; Non-Contravention;
Statutory Approvals.

          (a) Organization and Qualification. Each of the Companies, the
Partnership and the Owner Participant is duly formed, validly existing and in
good standing (to the extent such concepts are recognized under applicable Law)
under the laws of the jurisdiction of its formation, has, as applicable, full
corporate, partnership, limited liability company or similar power and authority
to own, lease and operate its assets and properties and to conduct its business
as presently conducted and is duly qualified to do business and is in good
standing (to the extent such concepts are recognized under applicable Law) as a
foreign corporation, partnership or limited liability company, as applicable, in
all jurisdictions in which such qualification is necessary under applicable Law
as a result of the conduct of its business or the ownership of its properties,
except for those jurisdictions where failure to have such power and authority or
to be so qualified or in good standing would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect. Except as
set forth on Schedule 3.1(a) of the Disclosure Letter, neither the Companies
nor, to the Knowledge of CMS Midland, the Partnership has been qualified to do
business in any jurisdiction as a foreign corporation, partnership or limited
liability company, as the case may be. True and complete copies of the
Organizational Documents of each Company, the Partnership and the Owner
Participant have been made available to the Purchaser.

                                       5

<PAGE>

          (b) Authority. Each of the Companies has full entity power and
authority to enter into this Agreement and, subject to receipt of the Seller
Required Statutory Approvals, to consummate the transactions contemplated
hereby. The execution, delivery and performance by each of the Companies of this
Agreement and the consummation by each of the Companies of the transactions
contemplated hereby have been duly and validly authorized by all requisite
entity action on the part of each of Companies, and no other corporate
proceedings or approvals on the part of the Companies are necessary to authorize
this Agreement or to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by each of the Companies and,
assuming the due authorization, execution and delivery hereof by each other
Party, constitutes the legal, valid and binding obligation of each of the
Companies, enforceable against each of the Companies in accordance with its
terms, except as limited by Laws affecting the enforcement of creditors' rights
generally or by general equitable principles.

          (c) Non-Contravention. The execution and delivery of this Agreement by
each of the Companies does not, and the consummation of the transactions
contemplated hereby will not, result in any Violation or result in the creation
of any Lien upon any of the properties or assets of each of the Companies or, to
the Knowledge of CMS Midland, the Partnership, and to the Knowledge of CMS
Holdings, the Owner Participant and the Lessor, pursuant to any provision of (i)
subject to obtaining the third-party Consents set forth in Schedule 3.1(c) of
the Disclosure Letter (the "Company Required Consents"), the Organizational
Documents of the Company, the Partnership, the Owner Participant or the Lessor,
as applicable; (ii) subject to obtaining the Company Required Consents, any
lease, mortgage, indenture, note, bond, deed of trust, or other instrument or
agreement of any kind to which the Company, the Partnership, the Owner
Participant or the Lessor, as applicable, is a party or by which any of the
Company, the Partnership, the Owner Participant or the Lessor, as applicable,
may be bound; or (iii) subject to obtaining the Seller Required Statutory
Approvals and the Company Required Statutory Approvals, any Law, Permit or
Governmental Order applicable to each of the Companies, the Partnership, the
Owner Participant or the Lessor, as applicable, other than in the case of
clauses (i), (ii) and (iii) any such Violation or Lien which would not
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

          (d) Statutory Approvals. Except for the filings or approvals (i) set
forth in Schedule 3.1(d) of the Disclosure Letter (the "Company Required
Statutory Approvals") and (ii) as may be required due to the regulatory or
corporate status of Purchaser, no Consent of any Governmental Entity is required
to be made or obtained by each of the Companies or, to the Knowledge of CMS
Midland, the Partnership, and to the Knowledge of CMS Holdings, the Owner
Participant and the Lessor, in connection with the execution and delivery of
this Agreement or the consummation by each of the Companies of the transactions
contemplated hereby, except those which the failure to obtain or make would not
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

          3.2 Capitalization.

          (a) Partnership and Owner Participant. Schedule 3.2(a) of the
Disclosure Letter sets forth for each of the Partnership and the Owner
Participant as of the date hereof and as of the Closing Date: (i) its
jurisdiction of formation; (ii) its authorized Equity Interests; (iii) the
number of its issued and outstanding Equity Interests; and (iv) the Equity
Interests that are

                                       6

<PAGE>

owned by the applicable Company. The Equity Interests of the Partnership that
are owned by CMS Midland and the Equity Interests of the Owner Participant that
are owned by CMS Holdings, as applicable, as set forth on Schedule 3.2(a) of the
Disclosure Letter, are owned free and clear of all Liens, other than Permitted
Liens and other than as set forth in Schedule 3.2(a) of the Disclosure Letter.
All the issued and outstanding Equity Interests in each of the Partnership and
the Owner Participant that are owned, directly or indirectly, by a Company, as
applicable, have been duly authorized and are validly issued and fully paid.

          (b) No Other Equity Interests. As of the date hereof, CMS Midland does
not own, directly or indirectly, any Equity Interests in any Person other than
the Partnership and, as of the Closing Date, CMS Midland will not own, directly
or indirectly, any Equity Interests in any Person other than the Partnership,
Alanna Holdings Corporation and Alanna Corporation. As of the date hereof, CMS
Holdings does not own, directly or indirectly, any Equity Interests in any
Person other than the Owner Participant and, as of the Closing Date, CMS
Holdings will not own, directly or indirectly, any Equity Interests in any
Person other than the Owner Participant, CMS Midland, Alanna Holdings
Corporation and Alanna Corporation.

          (c) Agreements with Respect to Shares and Equity Interests of the
Companies, the Partnership and the Owner Participant. Except (i) as set forth in
Schedule 3.2(c) of the Disclosure Letter, (ii) as provided for in the
Organizational Documents of the applicable Company, the Partnership or the Owner
Participant, as applicable, and (iii) as contemplated by Schedule 1.6 of the
Disclosure Letter, there are no:

               (A) subscriptions, options, warrants, calls, conversion,
          exchange, purchase right or other written contracts, rights,
          agreements or commitments of any kind obligating, directly or
          indirectly, a Company, or, to the Knowledge of CMS Midland, the
          Partnership or, to the Knowledge of CMS Holdings, the Owner
          Participant, as applicable, to issue, transfer, sell or otherwise
          dispose of, or cause to be issued, transferred, sold or otherwise
          disposed of, any Equity Interests of a Company, the Partnership or the
          Owner Participant, as applicable, or any securities convertible into
          or exchangeable for any such Equity Interests; or

               (B) agreements, partnership agreements, voting trusts, proxies or
          other agreements, instruments or understandings to which a Company or,
          to the Knowledge of CMS Midland, the Partnership or, to the Knowledge
          of CMS Holdings, the Owner Participant, as applicable, is a party, or
          by which a Company or, to the Knowledge of CMS Midland, the
          Partnership or, to the Knowledge of CMS Holdings, the Owner
          Participant, as applicable, is bound, relating to the voting of any
          shares of the Equity Interests of a Company, the Partnership or the
          Owner Participant, as applicable.

          3.3 Financial Statements. (a) Each of the Companies has provided to
Purchaser copies of its respective unaudited balance sheet as of December 31,
2005 and unaudited statement of operations for the year ended December 31, 2005
(each a "Company Financial Statement" and collectively, the "Companies Financial
Statements"). Each Company Financial Statement, as applicable, fairly presents
in all material respects the consolidated assets and liabilities of such
Company, as the case may be, as of December 31, 2005 and the results of
such Company's operations, as the case may be, for the period indicated (except
for normal and recurring year-end adjustments and for the absence of notes).

                                       7

<PAGE>

          (b) To the Knowledge of CMS Midland, the audited consolidated balance
sheet of the Partnership as of December 31, 2005 and the audited consolidated
statements of operations, statements of partners' equity and comprehensive
income (loss) and statements of cash flows of the Partnership for the year ended
December 31, 2005 (including the notes thereto) included in the Partnership's
Form 10-K for the fiscal year ended December 31, 2005 filed with the U.S.
Securities and Exchange Commission fairly present in all material respects the
consolidated assets and liabilities of the Partnership as of December 31, 2005
and the results of its operations and cash flows for the year ended December 31,
2005.

          (c) To the Knowledge of CMS Holdings, the audited statement of assets,
liabilities and capital of the Owner Participant as of December 31, 2004 and the
audited statement of revenues and expenses, statement of cash flows and
statement of changes in partners' deficit for the year ended December 31, 2004
(including the notes thereto) fairly present in all material respects the
assets, liabilities and capital of the Owner Participant as of December 31, 2004
and its revenues and expenses, changes in partners' deficit and cash flows for
the year ended December 31, 2004.

          3.4 Absence of Certain Changes or Events.

          (a) Since December 31, 2005 through the date hereof, except as set
forth in Schedule 3.4(a) of the Disclosure Letter, other than in connection with
the transactions contemplated by this Agreement, none of the Companies, or, to
the Knowledge of CMS Midland, the Partnership or, to the Knowledge of CMS
Holdings, the Owner Participant, has taken any of the actions set forth in
Sections 5.1(b) through 5.1(o), that, if taken after the execution and delivery
of this Agreement, would require the consent of Purchaser pursuant to Section
5.1.

          (b) Since December 31, 2005, there has not been any change, event,
condition, circumstance, occurrence or development which has had, or would
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

          (c) Since December 31, 2005, none of the Companies or, to the
Knowledge of CMS Midland, the Partnership or, to the Knowledge of CMS Holdings,
the Owner Participant has incurred any Liability that has had, or would
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

          3.5 Tax Matters. Except as set forth in Schedule 3.5 of the Disclosure
Letter, to the Knowledge of the applicable Company:

          (a) each of the Companies and, to the Knowledge of CMS Midland, the
Partnership and, to the Knowledge of CMS Holdings, the Owner Participant has (A)
filed (or there has been filed on its behalf) with the appropriate Governmental
Entity all Material Tax Returns required to have been filed by it, (B) duly paid
in full or made provision in accordance with GAAP (or there has been paid or
provision has been made on its behalf) for the payment of all Taxes shown as due
or payable on such Tax Returns and (C) included in such Tax Returns all
required disclosure of positions taken therein that could give rise to a
substantial underpayment penalty under Section 6662 of the Internal Revenue Code
of 1986, as amended (the "Code"), or any similar provision of state, local or
other Tax law;

                                       8

<PAGE>

          (b) no Material audits or other administrative proceedings or court
proceedings are, as of the date hereof, pending with regard to any Taxes or Tax
Returns of each of the Companies and, to the Knowledge of CMS Midland, the
Partnership and, to the Knowledge of CMS Holdings, the Owner Participant and
none of the Companies and, to the Knowledge of CMS Midland, the Partnership or,
to the Knowledge of CMS Holdings, the Owner Participant has been informed in
writing or orally of the planned commencement of any such audit or
administrative proceedings;

          (c) neither the Companies nor to the Knowledge of CMS Midland with
respect to the Partnership or to the Knowledge of CMS Holdings with respect to
the Owner Participant has waived the applicable statute of limitations for the
assessment or collection of any Material Taxes;

          (d) there are no Liens on any assets of any of the Companies or, to
the Knowledge of CMS Midland, the Partnership or, to the Knowledge of CMS
Holdings, the Owner Participant in connection with the failure to pay any
Material Tax, except to the extent of statutory Liens existing for any Taxes
accruing but not yet due and payable or which are being contested in good faith
by appropriate proceedings and for which adequate reserves have been
established;

          (e) each of the Companies has made available to Purchaser complete and
accurate copies of all material income Tax Returns of such Company (or pro forma
Tax Returns if such Company was included in a consolidated or combined Tax
Return), for the years 2002, 2003, 2004, as filed or subsequently amended;

          (f) all material Taxes which (i) to the Knowledge of CMS Midland, the
Partnership, (ii) to the Knowledge of CMS Holdings, the Owner Participant or
(iii) the Companies have been required to collect or withhold have been duly
collected or withheld, and to the extent required, have been or will be duly
paid when due to the proper Governmental Entity;

          (g) none of the property of any of the Companies, to the Knowledge of
CMS Midland, the Partnership, or, to the Knowledge of CMS Holding, the Owner
Participant is (A) subject to a safe harbor lease (pursuant to Section 168(f)(8)
of the Code as in effect after the Economic Recovery Tax Act of 1981 and before
the Tax Reform Act of 1986) or (B) (other than the existing $200,000,000 of tax
exempt pollution control revenue refunding bonds outstanding with respect to the
Facility) "tax exempt use property" (within the meaning of Section 168(h) of the
Code) or "tax exempt bond financed property" (within the meaning of Section
168(g)(5) of the Code);

                                       9

<PAGE>

          (h) (i) neither of the Companies, or (ii) to the Knowledge of CMS
Midland, the Partnership, or (iii) to the Knowledge of CMS Holding, the Owner
Participant has been a party to a transaction that, after the Closing, will
cause the Companies, the Partnership or the Owner Participant, as applicable, to
recognize gain under either Section 355(d) or 355(e) of the Code;

          (i) CMS Midland is the "tax matters partner" for the Partnership;

          (j) no shareholder of the Companies is a foreign person as defined in
Section 1445 of the Code;

          (k) neither of the Companies has any liability for the Taxes of any
other Person under applicable law, as a transferee or successor, or otherwise;

          (l) no written claim is pending by any authority in a jurisdiction
where any of the Companies, the Partnership (subject to the Knowledge of CMS
Midland) or the Owner Participant (subject to the Knowledge of CMS Holdings)
does not file Tax Returns that such entity is or may be subject to taxation in
that jurisdiction;

          (m) neither of the Companies has engaged in any transaction that would
be reportable pursuant to Treasury Regulation Section 1.6011-4 that has not been
properly reported in its Tax Returns;

          (n) neither of the Companies nor to the Knowledge of CMS Midland with
respect to the Partnership or to the Knowledge of CMS Holdings with respect to
the Owner Participant will be required (i) to include any amount in income for
any taxable period (or portion thereof) beginning after the Closing Date as a
result of a change in accounting method for any prior taxable period or pursuant
to any agreement with any Governmental Entity or (ii) to include in any taxable
period (or portion thereof) beginning after the Closing Date any income that
accrued in a prior period but was not recognized in the prior period as a result
of the installment method of accounting, the completed contract method of
accounting, the long-term contract method of accounting or the cash method of
accounting;

          (o) as of December 31, 2005, the tax basis that CMS Midland had in its
equity interest in the Partnership for purposes of Section 731 of the Code was
not less than $175,000,000 and the capital account with respect to such equity
interest for purposes of Section 704(b) of the Code and the Treasury Regulations
thereto was not less than $175,000,000. As of December 31, 2005, the tax basis
that CMS Holdings had in its equity interest in the Owner Participant for
purposes of Section 731 of the Code was not less than negative $100,000,000
(disregarding the partner's share of partnership liabilities); and

          (p) as of December 31, 2005, the net operating losses of CMS Midland
that were available for a carryforward pursuant to Section 172 of the Code, were
not less than $20,000,000.

          3.6 Litigation. Except as set forth in Schedule 3.6 of the Disclosure
Letter, there is no action, claim, suit or other proceeding at law or in equity
pending or, to the Knowledge of the applicable Company, threatened against a
Company or affecting the assets or properties of a Company that, if adversely
determined, would reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect. Except as set forth in Schedule
3.6 of the Disclosure Letter, to the Knowledge of CMS Midland with respect to
the

                                       10

<PAGE>

Partnership and to the Knowledge of CMS Holdings with respect to the Owner
Participant, there is no action, claim, suit or other proceeding at law or in
equity pending or threatened against the Partnership or the Owner Participant,
as applicable, or affecting its respective assets or properties that, if
adversely determined, would reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse Effect.

          3.7 Compliance with Laws.

          (a) Except as set forth in Schedule 3.7(a) of the Disclosure Letter,
neither of the Companies has been given notice of or been charged with any
violation of, or, to the Knowledge of the applicable Company, is in violation of
or is under investigation with respect to any violation of, any Law or
Governmental Order, except in each case for violations which would not
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect. Except as set forth in Schedule 3.7(a) of the
Disclosure Letter, to the Knowledge of CMS Midland with respect to the
Partnership and to the Knowledge of CMS Holdings with respect to the Owner
Participant, neither the Partnership nor the Owner Participant, as applicable,
has been given notice of or been charged with any violation of, or is in
violation of or is under investigation with respect to any violation of, any Law
or Governmental Order, except for violations which would not reasonably be
expected to have, individually or in the aggregate, a Company Material Adverse
Effect.

          (b) This Section 3.7 does not relate to Tax matters, which are instead
the subject of Section 3.5, employee benefits matters, which are instead the
subject of Section 3.8, Company Permits, which are instead the subject of
Section 3.9, or environmental matters, which are instead the subject of Section
3.12.

          3.8 Employee Benefits.

          (a) Schedule 3.8(a) of the Disclosure Letter contains a list of each
material bonus, incentive or deferred compensation, pension, retirement,
profit-sharing, savings, employment, consulting, compensation, stock purchase,
stock option, phantom stock or other equity-based compensation, severance pay,
termination, change-in-control, retention, salary continuation, vacation, sick
leave, disability, death benefit, group insurance, hospitalization, medical,
dental, life, loan, educational assistance, and other fringe benefit plans,
programs, agreements and arrangements maintained, to the Knowledge of CMS
Midland, by the Partnership or any trade or business, whether or not
incorporated, that together with the Partnership would be deemed a "single
employer" within the meaning of Section 4001 of ERISA (an "ERISA Affiliate") for
the benefit of any employee or former employee of the Partnership (collectively,
the "Partnership Plans").

          (b) With respect to each Partnership Plan, the Partnership has
provided or made available to Purchaser true and complete copies of the
following documents, to the extent applicable: (1) a copy of such Partnership
Plan (including all amendments thereto), (2) a copy of the annual report and
actuarial report, if required under ERISA or the Code, for the two (2) most
recently ended plan years, (3) a copy of the most recent summary plan
description, if required under ERISA, (4) if such Partnership Plan is funded
through a trust or any third party funding vehicle, a copy of the trust or other
funding agreement (including all amendments thereto) and

                                       11

<PAGE>

the most recent financial statements, and (5) the most recent determination or
opinion letter, as applicable, received from the Internal Revenue Service with
respect to such Partnership Plan if it is intended to qualify under Section
401(a) of the Code.

          (c) To the Knowledge of CMS Midland, each Partnership Plan has been
administered in all material respects in compliance with its terms and
applicable Law, including ERISA and the Code. To the Knowledge of CMS Midland,
there is no pending or threatened legal action, suit or claim relating to the
Partnership Plans (other than routine claims for benefits). To the Knowledge of
CMS Midland, each Partnership Plan which is intended to qualify under Section
401(a) of the Code is qualified in form and operation and has received a
favorable determination letter from the Internal Revenue Service and, to the
Knowledge of CMS Midland, no circumstances exist that could be expected to
result in the revocation of any such favorable determination or opinion letter,
as applicable. To the Knowledge of CMS Midland, each funding vehicle of a
Partnership Plan that is intended to be part of a voluntary employees'
beneficiary association within the meaning of Section 501(c)(9) of the Code has
(A) received an opinion letter from the Internal Revenue Service recognizing its
exempt status under Section 501(c)(9) of the Code and (B) filed a timely notice
with the Internal Revenue Service pursuant to Section 505(c) of the Code, and,
to the Knowledge of CMS Midland, no circumstances exist that could be expected
to result in the loss of the exempt status of such funding vehicle under Section
501(c)(9) of the Code.

          (d) To the Knowledge of CMS Midland, neither the Partnership nor any
ERISA Affiliate has ever maintained, contributed to, or had an obligation to
contribute to, a plan that is (i) subject to Title IV of ERISA or Section 412 of
the Code, (ii) a "multiemployer plan" within the meaning of Section 3(37) of
ERISA, (iii) maintained by more than one employer within the meaning of Section
413(c) of the Code, or (iv) a "multiple employer welfare arrangement" within the
meaning of Section 3(40) of ERISA.

          (e) To the Knowledge of CMS Midland, all contributions or premiums to
each Partnership Plan required under the terms of such Partnership Plan or
applicable Law have been timely made. To the Knowledge of CMS Midland, all
Material liabilities or expenses of the Partnership in respect of any
Partnership Plan have been properly accrued on the most recent financial
statements of the Partnership in compliance with GAAP.

          (f) Except as set forth in Schedule 3.8(f) of the Disclosure Letter,
to the Knowledge of CMS Midland, neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will
(either alone or in combination with another event) (i) entitle any current or
former employee or director of the Partnership to any payment or result in any
payment becoming due, increase the amount of any compensation due, or result in
the acceleration of the time of any payment due to any such person or (ii)
increase any benefits otherwise payable under any Partnership Plan or result in
the acceleration of the time of payment or vesting of any benefit under a
Partnership Plan.

          (g) To the Knowledge of CMS Midland, no Partnership Plan provides
benefits, including without limitation death or medical benefits (whether or not
insured), with respect to current or former employees of the Partnership beyond
their retirement or other termination of service, other than (i) coverage
mandated solely by applicable Law, (ii) death

                                       12
<PAGE>

benefits or retirement benefits under any "employee pension benefit plan" within
the meaning of Section 3(2) of ERISA, (iii) deferred compensation benefits
accrued as liabilities on the books of the Partnership or (iv) benefits the
costs of which are borne entirely by the current or former employee or his or
her beneficiary. Except as otherwise provided by applicable Law or written
Partnership Plan terms, to the Knowledge of CMS Midland, there are no
restrictions on the rights of the Partnership to unilaterally amend or terminate
any such Partnership Plan at any time without incurring any material liability
pursuant to the terms thereof.

          (h) Neither of the Companies has any liabilities to any employees or
with respect to any employee benefit plans.

          (i) To the Knowledge of CMS Midland, neither the Partnership nor any
plan fiduciary of any Partnership Plan has engaged in any transaction in
violation of Section 406 of ERISA (for which transaction no exemption exists
under Section 408 of ERISA) or in any "prohibited transaction" as defined in
Section 4975(c)(1) of the Code (for which no exemption exists under Section
4975(c)(2) or 4975(d) of the Code.

          3.9 Permits.

          (a) Except as set forth in Schedule 3.9(a) of the Disclosure Letter,
each of the Companies and, to the Knowledge of CMS Midland, the Partnership and,
to the Knowledge of CMS Holdings, the Owner Participant has all Permits that are
necessary for it to conduct its operations in the manner in which they are
presently conducted, other than any such Permits the failure of which to have
would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect (collectively, "Company Permits"). Except as set
forth in Schedule 3.9(a) of the Disclosure Letter, each Company Permit held by
the applicable Company is in full force and effect other than any failure to be
in full force and effect which would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect. Except as
set forth in Schedule 3.9(a) of the Disclosure Letter, to the Knowledge of CMS
Midland with respect to the Partnership and to the Knowledge of CMS Holdings
with respect to the Owner Participant, each Company Permit held by the
Partnership and the Owner Participant, as applicable, is in full force and
effect other than any failure to be in full force and effect which would not
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect.

          (b) This Section 3.9 does not relate to environmental matters, which
are instead the subject of Section 3.12.

          3.10 Tangible Property. Except as to CMS Midland as specified in
Schedule 3.10 of the Disclosure Letter, neither Company (i) now owns, controls
or possesses any tangible property (real or personal), or interest therein, and
(ii) has ever owned, controlled or possessed any tangible property (real or
personal), except, in each case, such property as is owned, controlled and
possessed by the Partnership, the Owner Participant or the Lessor, as the case
may be.

                                       13

<PAGE>

          3.11 Contracts.

          (a) Set forth in Schedule 3.11(a) of the Disclosure Letter is, as of
the date hereof, a list of the following agreements and contracts to which the
Companies or, to the Knowledge of CMS Midland, the Partnership or, to the
Knowledge of CMS Holdings, the Owner Participant is a party or by which any of
their respective properties or assets are bound, other than any insurance
policies covering the Companies, the Partnership or the Owner Participant or any
of their respective assets (the agreements and contracts set forth in Schedule
3.11(a) of the Disclosure Letter are referred to herein as the "Company Material
Contracts" and, as used in this Section 3.11, "Contracting Party" shall refer to
any Company, the Partnership or the Owner Participant party to such Company
Material Contract):

               (i) (A) all currently effective MCV Gas Contracts and MCV Gas
          Transportation Agreements (as each such term is defined in the MCV
          Partnership Agreement), (B) all currently effective Dow Contracts,
          other Backup Agreements, Consumers Contracts, Facilities Agreements,
          Transaction Documents and Financing Documents (as each such term is
          defined in Appendix A; in each case by trust where there are separate
          documents for each undivided interest transaction), (C) each
          assignment to The Dow Chemical Company ("Dow") of an --- interest in
          any MCV Gas Contract or MCV Transportation Contract and (D) each
          contract or agreement to which a Company is party in its individual
          capacity;

               (ii) all Operating Contracts providing for the payment by or to
          the Contracting Party in excess of $2,500,000 (the "Agreed Amount")
          per year, other than (x) any agreements with any Company or the
          Partnership or the Owner Participant to document certain intercompany
          loans or (y) any agreements among any Company, the Partnership or the
          Owner Participant for the provision of services and/or payment of
          costs, which are terminable by either party thereto upon not more than
          sixty (60) days' notice;

               (iii) all Trading Contracts which (A) provide for payment to or
          from the Contracting Party in excess of the Agreed Amount per year (or
          its equivalent as of the date of this Agreement in foreign currency if
          such agreement is denominated in foreign currency) or (B) have a
          notional amount in excess of the Agreed Amount;

               (iv) all contracts (other than Operating Contracts) requiring a
          future capital expenditure by the Contracting Party in excess of the
          Agreed Amount in any twelve-month period;

               (v) all contracts or agreements under which the Contracting Party
          is obligated to sell real or personal property having a value in
          excess of the Agreed Amount other than in the ordinary course of
          business;

               (vi) all shareholders, partnership, voting or similar agreements
          to which the Partnership or the Owner Participant is a party, by which
          the Partnership or the Owner Participant is bound or to which the
          Partnership or the Owner

                                       14

<PAGE>

          Participant is subject (other than any such agreements of the
          Partnership or the Owner Participant that is wholly owned, directly or
          indirectly, by any Company, or by which any such Person is bound);

               (vii) all contracts or agreements under which the Contracting
          Party (1) created, incurred, assumed or guaranteed (or may create,
          incur, assume or guarantee) indebtedness, (2) granted a Lien on its
          assets, whether tangible or intangible, to secure such indebtedness or
          (3) extended credit or advanced funds to any Person, in each case, in
          excess of the Agreed Amount;

               (viii) all executory contracts for the purchase or sale of any
          business, corporation, partnership, joint venture, association or
          other business organization or any division, assets, operating unit or
          product line thereof which have a purchase or sale price in excess of
          the Agreed Amount;

               (ix) to the Knowledge of the applicable Company, all contracts or
          agreements establishing any joint venture;

               (x) all agreements that grant a right of first refusal or similar
          right with respect to (A) any assets of the Contracting Party having a
          value in excess of the Agreed Amount or (B) any direct or indirect
          economic interest in the Contracting Party having a value in excess of
          the Agreed Amount;

               (xi) any contract or agreement providing for the use of material
          Intellectual Property which has an annual license payment or fee in
          excess of $500,000; and

               (xii) any other agreement not covered in clauses (i) through (xi)
          above that involves payment by or to the Contracting Party of more
          than the Agreed Amount annually or twice the Agreed Amount in the
          aggregate under such agreement, other than those that can be
          terminated without penalty in excess of 20% of the Agreed Amount to
          the Contracting Party upon not more than sixty (60) days' notice.

          (b) Except as set forth in Schedule 3.11(b)(i) of the Disclosure
Letter, the Companies have made available to Purchaser complete and correct
copies of all Company Material Contracts. Except as set forth in Schedule
3.11(b)(ii) of the Disclosure Letter, each Company Material Contract is (i) to
the Knowledge of the applicable Company with respect to Company Material
Contracts to which any of the Partnership, the Owner Participant or the Lessor
is a party, in full force and effect and (ii) the valid and binding obligation
of the Companies or, to the Knowledge of the applicable Company, the
Partnership, the Owner Participant and the Lessor, as the case may be, and, to
the Knowledge of the applicable Company, of each other party thereto, in each
case (x) except as limited by Laws affecting the enforcement of creditors'
rights generally or by general equitable principles and (y) with such exceptions
as would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect. Except as set forth in Schedule 3.11(b)(ii) of
the Disclosure Letter, none of the Companies or, to the Knowledge of the
applicable Company, the Partnership,

                                       15

<PAGE>

the Owner Participant or the Lessor is in breach or default under any Company
Material Contract, which breach or default has not been waived, and, to the
Knowledge of the applicable Company, no other party to any Company Material
Contract is in breach or default, except in each case, for any breach or default
that would not reasonably be expected to have, individually or in the aggregate,
a Company Material Adverse Effect. To the Knowledge of CMS Midland, no "Lease
Default" or "Lease Event of Default" (as such defined terms are applicable)
exists under a Company Material Contract to which the Partnership is a party.

          3.12 Environmental Matters. Except as set forth in Schedule 3.12 of
the Disclosure Letter, or as would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect:

          (a) each of the Companies and, to the Knowledge of the applicable
Company, the Partnership and the Lessor, are in compliance with all applicable
Environmental Laws, including having and complying with all terms and conditions
of all Permits required under applicable Environmental Laws or that are
necessary for them to conduct their operations in the manner in which they are
presently conducted and all such Permits are in full force and effect and not
subject to appeal or challenge;

          (b) none of the Companies or, to the Knowledge of the applicable
Company, the Partnership or the Lessor (i) has received from any Governmental
Entity any written notice of violation of, alleged violation of, non-compliance
with, or Liability or potential Liability pursuant to, any Environmental Law,
other than notices with respect to matters that have been resolved and for which
any Company or, to the Knowledge of the applicable Company, the Partnership or
the Lessor has no further obligations outstanding or (ii) is subject to any
outstanding Governmental Order, "consent order" or other agreement with regard
to any violation, noncompliance or Liability under any Environmental Law;

          (c) no judicial proceeding or governmental or administrative action is
pending under any applicable Environmental Law or relating to Hazardous
Substances to which any Company or, to the Knowledge of the applicable Company,
the Partnership or the Lessor is or has been a party;

          (d) none of the Companies or, to the Knowledge of the applicable
Company, the Partnership or the Lessor has received any written notice, claim or
demand from any Person, including any Governmental Entity, seeking costs of
response, damages or requiring remedial action relating to (i) any Release of
Hazardous Substances at, on or beneath any Company's, the Partnership's or the
Lessor's current facilities or (ii) a Release of Hazardous Substances at any
third party property to which Hazardous Substances generated by any Company, the
Partnership or the Lessor were sent for treatment or disposal; and

          (e) to the Knowledge of the applicable Company, each of the Companies,
the Partnership and the Lessor have made available to Purchaser true and correct
copies of all material audits, assessments, evaluations and similar reports or
documents in their possession relating to the environmental compliance or
condition of assets and facilities owned or operated by the Companies, the
Partnership or the Lessor.

                                       16

<PAGE>

     Notwithstanding any of the warranties contained elsewhere in this
Agreement, all environmental matters shall be governed exclusively by this
Section 3.12.

          3.13 Labor Matters.

          (a) Schedule 3.13(a) of the Disclosure Letter contains a list of all
collective bargaining agreements to which any Company or, to the Knowledge of
the applicable Company, the Partnership, the Owner Participant or the Lessor is
bound.

          (b) Except as set forth on Schedule 3.13(b) of the Disclosure Letter,
no employees of any Company or, to the Knowledge of the applicable Company, the
Partnership, the Owner Participant or the Lessor are represented by any labor
organization with respect to their employment with the Companies, the
Partnership, the Owner Participant or the Lessor, as applicable.

          (c) To the Knowledge of the applicable Company, there are no Material
labor union organizing activities with respect to any employees of any Company,
the Partnership, the Owner Participant or the Lessor.

          (d) Since January 1, 2004, there have been no pending or, to the
Knowledge of the applicable Company, threatened unfair labor practices, work
stoppages, slowdowns, strikes, lockouts, arbitrations, grievances, or other
labor disputes involving employees of any Company, or, to the Knowledge of the
applicable Company, the Partnership, the Owner Participant or the Lessor, in
each case, that is Material.

          3.14 Intellectual Property. Except as would not reasonably be expected
to have a Company Material Adverse Effect, (a) each of the Companies and, to the
Knowledge of the applicable Company, the Partnership and the Lessor owns, or has
the right to use, all patents, patent rights (including patent applications and
licenses), know-how, trade secrets, trademarks (including trademark
applications), trademark rights, trade names, trade name rights, service marks,
service mark rights, copyrights and other proprietary intellectual property
rights (collectively, "Intellectual Property") used in and necessary for the
conduct of the businesses of the Companies, the Partnership and the Lessor as
currently conducted, (b) to the Knowledge of the applicable Company, the use of
the Intellectual Property used in the businesses of the Companies, the
Partnership and the Lessor as currently conducted does not infringe or otherwise
violate the Intellectual Property rights of any third party, (c) to the
Knowledge of the applicable Company, no third party is challenging, infringing
or otherwise violating any right of any Company, the Partnership and the Lessor
in any Intellectual Property necessary for the conduct of the businesses of the
Companies, the Partnership and the Lessor as currently conducted, and (d) none
of the Companies or, to the Knowledge of the applicable Company, the Partnership
and the Lessor has received any written notice of any pending claim that
Intellectual Property used in and necessary for the conduct of the businesses of
the Companies, the Partnership and the Lessor as currently conducted infringes
or otherwise violates the Intellectual Property rights of any third party.

                                       17

<PAGE>

          3.15 Affiliate Contracts. Schedule 3.15 of the Disclosure Letter
contains a true and complete list of each material agreement or contract as of
the date hereof between (i) any Company, the Partnership, the Owner Participant
or the Lessor, on one hand and (ii) a Seller or any Affiliate thereof (other
than the Companies, the Partnership, the Owner Participant or the Lessor) on the
other (collectively, the "Affiliate Contracts").

          3.16 Insurance. Set forth on Schedule 3.16 of the Disclosure Letter is
a list of all material policies of insurance under which any Company's or, to
the Knowledge of CMS Midland, the Partnership's assets or business activities
are covered, including for each such policy the type of policy, the name of the
insured, the term of the policy, a description of the limits of such policy, the
basis of coverage and the deductibles. Except as set forth on Schedule 3.16 of
the Disclosure Letter, to the Knowledge of CMS Midland, the Partnership
maintains all policies of insurance to the extent required by any applicable
Financing Facility, except where the failure to maintain such policies of
insurance would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.

          3.17 Brokers and Finders. None of Seller, any Company or, to the
Knowledge of the applicable Company, the Partnership or the Owner Participant
has entered into any agreement or arrangement entitling any agent, broker,
investment banker, financial advisor or other firm or Person to any broker's or
finder's fee or any other commission or similar fee payable by any Company in
connection with any of the transactions contemplated by this Agreement, except
J.P. Morgan Securities Inc., whose fees and expenses are governed by Section
5.6.

          3.18 Absence of Certain Matters and Notices. There is no pending
matter concerning CMS Holdings that has been referred to an arbitrator pursuant
to Article X of the FMLP Partnership Agreement and no Notice of Dispute (as
defined in the FMLP Partnership Agreement) concerning CMS Holdings that is
pending.

                                   ARTICLE IV

                             WARRANTIES OF PURCHASER

     Except as set forth in the Purchaser Disclosure Schedules, Purchaser
warrants to the Company and to each Seller as follows in this Article IV:

          4.1 Organization and Qualification. Purchaser is a corporation, duly
formed, validly existing and in good standing under the laws of Delaware and has
full power and authority to own, lease and operate its assets and properties and
to conduct its business as presently conducted. Purchaser is duly qualified to
do business and in good standing as a foreign corporation in all jurisdictions
in which such qualification is necessary under applicable Law as a result of the
conduct of its business or the ownership of its properties, except for those
jurisdictions where failure to be so qualified or in good standing would not
reasonably be expected to have, individually or in the aggregate, a Purchaser
Material Adverse Effect.

          4.2 Authority; Non-Contravention; Statutory Approvals.

          (a) Authority. Purchaser has full corporate power and authority to
enter into this Agreement and, subject to receipt of the Purchaser Required
Statutory Approvals, to consummate the transactions contemplated hereby. The
execution, delivery and performance by

                                       18

<PAGE>

Purchaser of this Agreement and the consummation by Purchaser of the
transactions contemplated hereby have been duly and validly authorized by all
requisite action on the part of Purchaser, and no other proceedings or approvals
on the part of Purchaser are necessary to authorize this Agreement or to
consummate the transactions contemplated hereby. This Agreement has been duly
executed and delivered by Purchaser and, assuming the due authorization,
execution and delivery hereof by each other Party, constitutes the legal, valid
and binding obligation of Purchaser, enforceable against Purchaser in accordance
with its terms, except as limited by Laws affecting the enforcement of
creditors' rights generally or by general equitable principles.

          (b) Non-Contravention. Except as set forth on Schedule 4.2(b) of the
Disclosure Letter, the execution and delivery of this Agreement by Purchaser do
not, and the consummation of the transactions contemplated hereby will not,
result in any Violation or result in the creation of any Lien upon any of the
properties or assets of Purchaser pursuant to any provision of (i) the
Organizational Documents of Purchaser; (ii) subject to obtaining the third-party
Consents set forth in Schedule 4.2(b) of the Disclosure Letter (the "Purchaser
Required Consents"), any lease, mortgage, indenture, note, bond, deed of trust,
or other instrument or agreement of any kind to which Purchaser is a party or by
which Purchaser may be bound; or (iii) subject to obtaining the Purchaser
Required Statutory Approvals, any Law, Permit or Governmental Order applicable
to Purchaser, other than in the case of clauses (i), (ii) and (iii) for any such
Violation or Lien which would not reasonably be expected to have, individually
or in the aggregate, a Purchaser Material Adverse Effect.

          (c) Statutory Approvals. Except for the filings or approvals (i) set
forth in Schedule 4.2(c) of the Disclosure Letter (the "Purchaser Required
Statutory Approvals") and (ii) as may be required due to the regulatory or
corporate status of Seller or the Companies, no Consent of any Governmental
Entity is required to be made or obtained by Purchaser in connection with the
execution and delivery of this Agreement or the consummation by Purchaser of the
transactions contemplated hereby, except those which the failure to obtain or
make would not reasonably be expected to have, individually or in the aggregate,
a Purchaser Material Adverse Effect.

          4.3 Financing. Purchaser has, and will have at the Closing, available
cash and credit capacity, either in its accounts, through binding and
enforceable credit arrangements or borrowing facilities or otherwise, (i) to pay
the Purchase Price at the Closing, (ii) to pay all fees and expenses required to
be paid by Purchaser in connection with the transactions contemplated by this
Agreement, pursuant to Section 5.6 or otherwise, and (iii) to perform all of its
other obligations hereunder including, without limitation, its obligations under
Section 5.12 and the SEPA Payment Agreement (the "Financing Arrangements"), all
without any distributions from the Companies and neither of the Companies will
be required to assume or become liable for such Financing Arrangements prior to
the time immediately following the Closing. A description of the Financing
Arrangements is set forth on Schedule 4.3 of the Disclosure Letter. Prior to the
date of this Agreement, Purchaser has provided Seller with copies of all
documentation relating to the Financing Arrangements, including any commitment
letters for any of the foregoing, which Purchaser intends to utilize to make the
payments described in this Section 4.3. To the extent that this Agreement must
be in a form acceptable to a lender, such lender has approved this Agreement and
there are no other material contingencies to the lender's obligations under the
Financing Arrangements or otherwise.

                                       19

<PAGE>

          4.4 Litigation. Except as set forth in Schedule 4.4 of the Disclosure
Letter, there is no action, claim, suit or proceeding at law or in equity
pending or, to the Knowledge of Purchaser, threatened against Purchaser or any
of its Subsidiaries or affecting any of their respective assets or properties
that, if adversely determined, would reasonably be expected to have,
individually or in the aggregate, a Purchaser Material Adverse Effect. There are
no Governmental Orders of or by any Governmental Entity applicable to Purchaser
or any of its Subsidiaries except for such that would not reasonably be expected
to have, individually or in the aggregate, a Purchaser Material Adverse Effect.

          4.5 Investment Intention; Sufficient Investment Experience;
Independent Investigation. Purchaser is acquiring the Shares for its own
account, for investment purposes only and not with a view to the distribution
(as such term is used in Section 2(a)(11) of the United States Securities Act of
1933 (the "Securities Act")) thereof in a manner not permitted by the Securities
Act. Purchaser understands that the Shares have not been registered under the
Securities Act and, if and to the extent the Securities Act applies, cannot be
sold unless subsequently registered under the Securities Act or an exemption
from such registration is available and pursuant to registration or
qualification (or exemption therefrom) under applicable state securities laws.
Purchaser has such knowledge and experience in financial and business matters
that it is capable of evaluating the Companies and the merits and risks of an
investment in the Shares. Purchaser has been given adequate opportunity to
examine all documents provided by, conduct due diligence and ask questions of,
and to receive answers from, Seller, the Companies and their respective
representatives concerning the Companies and Purchaser's investment in the
Shares. Purchaser acknowledges and affirms that it has completed its own
independent investigation, analysis and evaluation of the Companies, the
Partnership, the Owner Participant and the Lessor, that it has made all such
reviews and inspections of the business, assets, results of operations and
condition (financial or otherwise) of the Companies, the Partnership, the Owner
Participant and the Lessor as it has deemed necessary or appropriate, and that
in making its decision to enter into this Agreement and to consummate the
transactions contemplated hereby it has relied on its own independent
investigation, analysis, and evaluation of the Companies, the Partnership, the
Owner Participant and the Lessor and Seller's warranties set forth in Article II
and the Companies' warranties set forth in Article III.

          4.6 Brokers and Finders. Purchaser has not entered into any agreement
or arrangement entitling any agent, broker, investment banker, financial advisor
or other firm or Person to any broker's or finder's fee or any other commission
or similar fee in connection with any of the transactions contemplated by this
Agreement.

          4.7 Qualified for Permits. Purchaser is qualified to obtain any
Permits necessary for the operation by Purchaser of the Companies (including the
ownership of the Equity Interests in the Owner Participant and the Partnership)
as of the Closing in the same manner as the Companies are currently operated.

                                       20

<PAGE>

          4.8 No Knowledge of Seller or Company Breach. Neither Purchaser nor
any of its Affiliates has Knowledge of any material breach or inaccuracy of (i)
any warranty of Seller set forth in Article II hereof or (ii) any warranty of
the Companies set forth in Article III hereof.

          4.9 Environmental Review. Purchaser has completed its on-site review
of environmental matters.

                                    ARTICLE V

                                    COVENANTS

          5.1 Conduct of Business. After the date hereof and prior to the
Closing or earlier termination of this Agreement, except as set forth in
Schedule 5.1 of the Disclosure Letter and except (i) as contemplated in or
permitted by this Agreement, (ii) as may be required to comply with any Company
Material Contract (including any Financing Facility), (iii) in connection with
necessary or prudent repairs due to breakdown or casualty, or other actions
taken in response to a business emergency or other unforeseen operational
matters, (iv) in connection with necessary or prudent maintenance consistent
with manufacturer's recommendations and warranties, (v) as required by
applicable Law, or (vi) to the extent Purchaser shall otherwise consent, which
decision regarding consent shall be made promptly and which consent shall not be
unreasonably withheld, conditioned or delayed, Seller shall exercise the voting,
governance and contractual powers available to it to cause the Companies to and
each of the Companies shall, to the extent reasonably possible, exercise the
voting, governance and contractual powers available to the Companies to cause
the Partnership, the Owner Participant and the Lessor to (but subject in each
case to any contractual, fiduciary or similar obligation of Seller, any Company,
the Partnership, the Owner Participant or the Lessor):

          (a) conduct its businesses in the ordinary and usual course in
substantially the same manner as heretofore conducted and, to the extent
consistent therewith, use reasonable efforts to preserve its business
organization intact and maintain its existing relations and goodwill with
customers, suppliers, creditors, lessors, employees and business associates;

          (b) not (i) amend its Organizational Documents other than amendments
which are ministerial in nature or not otherwise material; (ii) split, combine
or reclassify its outstanding Equity Interests; or (iii) repurchase, redeem or
otherwise acquire any shares of its capital stock or any securities convertible
into or exchangeable or exercisable for any shares of its capital stock;

          (c) not issue, sell, or dispose of any shares of, or securities
convertible into or exchangeable or exercisable for, or options, warrants,
calls, commitments or rights of any kind to acquire, any shares of its capital
stock, other than any issuance, sale or disposal, solely among each of the
Companies, the Partnership or the Lessor;

          (d) not incur any indebtedness other than (i) borrowings in the
ordinary course of business or (ii) borrowings under existing credit facilities
as such facilities may be amended or replaced;

          (e) not, other than (i) in the ordinary and usual course of business
or (ii) in the case of the Partnership or the Lessor, to the extent not
prohibited by a Financing Facility, make any commitments for or make capital
expenditures in excess of $2,500,000 individually or $5,000,000 in the
aggregate;

                                       21

<PAGE>

          (f) not, other than in the ordinary and usual course of business
consistent with past practice, make any acquisition of, or investment in, assets
or stock of any other Person or entity;

          (g) not, other than in the ordinary and usual course of business or in
the case of the Partnership or the Lessor, to the extent not prohibited by a
Financing Facility, sell, lease, license, encumber or otherwise dispose of any
of its assets in excess of $2,500,000 individually or $5,000,000 in the
aggregate;

          (h) not terminate, establish, adopt, enter into, make any new grants
or awards of stock-based compensation or other benefits under, amend or
otherwise materially modify any Partnership Plan or increase the salary, wage,
bonus or other compensation of any directors, officers or employees except (i)
for grants or awards to directors, officers and employees under existing
Partnership Plans in such amounts and on such terms as are consistent with past
practice, (ii) in the normal and usual course of business (which shall include
normal periodic performance reviews and related plans and the provision of
individual Partnership Plans consistent with past practice for newly hired,
appointed or promoted officers and employees) or (iii) for actions necessary to
satisfy existing contractual obligations under Partnership Plans;

          (i) not change any Material financial or Material Tax accounting
methods, policies, practices or elections, except as required by GAAP or the
Code, respectively;

          (j) not adopt a plan of complete or partial liquidation, dissolution,
merger, consolidation, restructuring, recapitalization or other reorganization
(other than the Transaction);

          (k) not settle or compromise any material litigation requiring payment
of an amount in excess of the reserves established therefor, or waive, release
or assign any material claims, in each case other than in an amount not to
exceed $2,500,000 individually or $5,000,000 in the aggregate;

          (l) other than, in the case of the Partnership or the Lessor, to the
extent not prohibited by a Financing Facility, not (i) amend or modify any
Company Material Contract in any material respect, (ii) terminate any Company
Material Contract or (iii) enter into any contract, agreement or instrument that
would have been required to be set forth on Schedule 3.11(a) of the Disclosure
Letter had it been entered into prior to the date of this Agreement;

          (m) not amend, modify, terminate or enter into any Trading Contract
other than, in the case of the Partnership, (i) for fiscal year 2006
requirements, in the ordinary course of business consistent with past practice
and within written parameters established by the management committee of the
Partnership and (ii) for fiscal year 2007 requirements, in the ordinary course
of business consistent with past practice and within written parameters to be
established by such management committee after notice to, and consultation with,
the Purchaser;

          (n) unless not available on commercially reasonable terms, fail to
maintain insurance with financially responsible or nationally recognized
insurers in such amounts and against such risks and losses as are consistent
with the insurance maintained by it in the ordinary and usual course of
business; and

                                       22

<PAGE>

          (o) not commit to take any of the actions set forth in subsections
(b)-(n) of this Section 5.1.

          5.2 Regulatory Approvals.

          (a) Regulatory Approvals. Each Party shall cooperate and use
reasonable efforts to prepare and file as soon as practicable all applications,
notices, petitions, filings and other documents necessary to obtain, and shall
use reasonable efforts to obtain, the Seller Required Statutory Approvals and
the Purchaser Required Statutory Approvals. The Parties further agree to use
reasonable efforts (i) to take any act, make any undertaking or receive any
clearance or approval required by any Governmental Entity or applicable Law and
(ii) to satisfy any conditions imposed by any Governmental Entity, in each case,
in order to consummate the transaction contemplated hereby as soon as reasonably
possible. Each of the Parties shall (i) respond as promptly as practicable to
any inquiries or requests received from any Governmental Entity for additional
information or documentation and (ii) not enter into any agreement with any
Governmental Entity that would reasonably be expected to adversely affect the
Parties' ability to consummate the transactions contemplated by this Agreement,
except with the prior consent of the other Parties (which shall not be
unreasonably withheld or delayed).

          (b) Communications. The Parties shall promptly provide the other
Parties with copies of all filings made with, and inform one another of any
communications received from, any Governmental Entity in connection with this
Agreement and the transactions contemplated hereby.

          5.3 Required Consents. Seller and the Companies, on the one hand, and
Purchaser, on the other hand, agree to use reasonable efforts to obtain the
Company Required Consents and the Purchaser Required Consents, respectively, and
to cooperate with each other in connection with the foregoing.

          5.4 Access. After the date hereof and prior to the Closing, Seller and
the Companies agree that the Companies shall permit, and the Companies shall
exercise the voting, governance and contractual powers available to either of
them to cause (subject to any contractual, fiduciary or similar obligation of
the Companies), if possible, each of the Partnership and the Owner Participant
to permit, Purchaser and its respective employees, counsel, accountants and
other representatives to have reasonable access, upon reasonable advance notice,
during regular business hours, to the assets, employees, properties, books and
records, businesses and operations relating to the Companies, the Partnership or
the Owner Participant as Purchaser may reasonably request, provided, however,
that in no event shall Seller, the Companies, the Partnership or the Owner
Participant be obligated to provide any access or information (i) if Seller or
the Companies determine, in good faith after consultation with counsel, that
providing such access or information may violate applicable Law, cause Seller,
the Companies, the Partnership, the Owner Participant or the Lessor to breach a
confidentiality obligation to which it is bound or jeopardize any recognized
privilege available to Seller, the Companies, the Partnership, the Owner
Participant or the Lessor or (ii) to the extent set forth on Schedule 5.4 of

                                       23

<PAGE>

the Disclosure Letter. Purchaser agrees to indemnify and hold Seller, the
Companies, the Partnership, the Owner Participant and the Lessor harmless from
any and all claims and liabilities, including costs and expenses for loss,
injury to or death of any representative of Purchaser, and any loss, damage to
or destruction of any property owned by Seller, the Companies, the Partnership,
the Owner Participant or the Lessor or others (including claims or liabilities
for loss of use of any property) resulting directly or indirectly from the
action or inaction of any of the employees, counsel, accountants, advisors and
other representatives of Purchaser during any visit to the business or property
sites of the Companies, the Partnership, the Owner Participant or the Lessor
prior to the Closing Date, whether pursuant to this Section 5.4 or otherwise.
During any visit to the business or property sites of the Companies, the
Partnership, the Owner Participant or the Lessor, Purchaser shall, and shall
cause its employees, counsel, accountants, advisors and other representatives
accessing such properties to, comply with all applicable Laws and all of the
Companies', the Partnership's, the Owner Participant's or the Lessor's safety
and security procedures and conduct itself in a manner that could not be
reasonably expected to interfere with the operation, maintenance or repair of
the assets of the Companies, the Partnership, the Owner Participant or the
Lessor. Each Party shall, and shall cause its Affiliates and representatives to,
hold in strict confidence all documents and information concerning the other
furnished to it in connection with the transactions contemplated by this
Agreement in accordance with the Confidentiality Agreement.

          5.5 Publicity. Except as may be required by applicable Law or by
obligations pursuant to any listing agreement with or rules of any national
securities exchange, prior to the Closing, none of Seller, the Companies or
Purchaser or any of their respective Affiliates shall, without the express
written approval of Seller, the Companies and Purchaser, make any press release
or other public announcements concerning the transactions contemplated by this
Agreement, except as and to the extent that any such Party shall be so obligated
by applicable Law or pursuant to any such listing agreement or rules of any
national securities exchange, in which case the other Parties shall be advised
and the parties shall use reasonable efforts to cause a mutually agreeable
release or announcement to be issued. From and after the Closing, the
Confidentiality Agreement dated May 22, 2006 between Seller and GSO Capital
Partners LP (the "Seller CA") shall terminate and cease to be of any force and
effect.

          5.6 Fees and Expenses. (a) Except as provided in paragraph (b) below,
whether or not the Closing occurs, all costs and expenses incurred in connection
with this Agreement and the transactions contemplated by this Agreement
(including, without limitation, any fees and expenses of investment bankers,
brokers, finders, counsel, advisors, experts or other agents, in each case,
incident to or in connection with the negotiation, preparation, execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby (whether payable prior to, at or after the
Closing Date)) shall be paid by the party incurring such expenses; provided that
all such costs and expenses incurred by the Companies, the Partnership, the
Owner Participant or the Lessor on or prior to the Closing shall be paid by
Seller.

          (b) Other Transaction Expenses. Notwithstanding anything to the
contrary set forth in this Agreement, (i) Seller and Purchaser shall each pay
50% of any real property transfer or gains Tax, sales Tax, use Tax, stamp Tax,
stock transfer Tax or other similar Tax imposed on the transactions contemplated
by this Agreement, (ii) Purchaser shall pay any out-of-pocket fees,

                                       24

<PAGE>

costs and expenses incurred in connection with obtaining all Purchaser Required
Statutory Approvals and (iii) Seller shall pay any out-of-pocket fees, costs and
expenses incurred in connection with obtaining all Company Required Statutory
Approvals and Seller Required Statutory Approvals (other than the Parties' legal
fees and expenses which are the subject of paragraph (a) above).

          5.7 Indemnification of Directors and Officers.

          (a) Indemnification. From and after the Closing Date, Purchaser shall
cause each Company (and, for the avoidance of doubt, in the case of CMS Midland,
including its successor entities as contemplated by Schedule 1.6 of the
Disclosure Letter), to the fullest extent permitted under applicable Law, to
indemnify and hold harmless (and advance funds in respect of each of the
foregoing) each present and former employee, agent, director, officer or manager
of the respective Company and, to the extent appointed by such Company, the
Partnership or the Owner Participant, as the case may be (each, together with
such person's heirs, executors or administrators, an "Indemnified Person" and
collectively, the "Indemnified Persons"), against any costs or expenses
(including advancing attorneys' fees and expenses in advance of the final
disposition of any claim, suit, proceeding or investigation to each Indemnified
Person to the fullest extent permitted by law), judgments, fines, losses,
claims, damages, liabilities and amounts paid in settlement in connection with
any actual or threatened claim, action, suit, proceeding or investigation,
whether civil, criminal, administrative or investigative (an "Action"), arising
out of, relating to or in connection with any action or omission by such
Indemnified Person in his or her capacity as an employee, agent, director,
officer or manager occurring or alleged to have occurred whether before or after
the Closing Date (including acts or omissions in connection with such person's
service as an officer, director or other fiduciary in any entity if such service
was at the request or for the benefit of such Company, the Partnership or the
Owner Participant, as the case may be). In the event of any such Action,
Purchaser shall cooperate with the Indemnified Person in the defense of any such
Action.

          (b) Survival of Indemnification. To the fullest extent not prohibited
by Law, from and after the Closing Date, all rights to indemnification now
existing in favor of the Indemnified Persons with respect to their activities as
such prior to, on or after the Closing Date, as provided in each Company's (and,
for the avoidance of doubt, in the case of CMS Midland, including its successor
entities as contemplated by Schedule 1.6 of the Disclosure Letter), the
Partnership's and the Owner Participant's respective Organizational Documents or
indemnification agreements in effect on the date of such activities or otherwise
in effect on the date hereof, shall survive the Closing and shall continue in
full force and effect for a period of not less than six (6) years from the
Closing Date, provided that, in the event any claim or claims are asserted or
made within such survival period, all such rights to indemnification in respect
of any claim or claims shall continue until final disposition of such claim or
claims.

          (c) Insurance. For a period of six (6) years after the Closing Date,
Purchaser shall or shall use reasonable efforts to cause the Partnership to,
maintain in effect policies of directors' and officers' liability insurance
equivalent to those maintained by the Partnership prior to the Closing Date for
the benefit of those persons who are currently covered by such policies on terms
no less favorable than the terms of such current insurance coverage; provided,
however, that the Partnership will not be required to expend in any year an
amount in excess of two

                                       25

<PAGE>

hundred percent (200%) of the annual aggregate premiums currently paid by the
Partnership for such insurance; and provided, further, that, if the annual
premiums of such insurance coverage exceed such amount, Purchaser shall use
reasonable efforts to cause the Partnership to, obtain a policy with the best
coverage available, in the reasonable judgment of the board of directors of
Purchaser, for a cost not exceeding such amount.

          (d) Successors. If, after the Closing Date, any of the Companies or
Purchaser or any of their respective successors or assigns (i) consolidates with
or merges into any other Person and shall not be the continuing or surviving
corporation or entity of such consolidation or merger or (ii) transfers all or a
substantial portion of its properties and assets to any Person, then, and in
either such case, proper provisions shall be made so that the successors and
assigns of any of the Companies or Purchaser, as the case may be, shall assume
the obligations set forth in this Section 5.7.

          (e) Benefit. The provisions of this Section 5.7 are intended to be for
the benefit of, and shall be enforceable by, each Indemnified Person, his or her
heirs, executors or administrators and his or her other representatives.

          5.8 Termination of Affiliate Contracts. Except as identified in
Schedule 5.8 of the Disclosure Letter, all Affiliate Contracts, including any
agreements or understandings (written or oral) with respect thereto, shall
survive the Closing without any further action on the part of the parties
thereto or the Parties.

          5.9 Further Assurances. Each of Seller, the Companies and Purchaser
agrees that, from time to time before and after the Closing Date, they will
execute and deliver, and each of the Companies shall use reasonable efforts to
cause the Partnership and the Owner Participant to execute and deliver, or use
reasonable efforts to cause their other respective Affiliates (including by
exercising the voting, governance and contractual powers available to cause, if
possible, each of the Partnership and the Owner Participant) to execute and
deliver such further instruments, and take, or cause their respective Affiliates
(including by exercising the voting, governance and contractual powers available
to cause, if possible, each of the Partnership and the Owner Participant) to
take, such other action, as may be reasonably necessary to carry out the
purposes and intents of this Agreement. Purchaser, the Companies and Seller
agree to use reasonable efforts to refrain from taking any action which could
reasonably be expected to materially delay the consummation of the Transaction.

          5.10 Supplements to Company Disclosure Schedules. Seller and the
Companies may, from time to time prior to the Closing by written notice to
Purchaser, supplement the Seller Disclosure Schedules or the Company Disclosure
Schedules or add a schedule or section to the Seller Disclosure Schedules or the
Company Disclosure Schedules with a corresponding reference to be added in this
Agreement (such added Schedule to be deemed a supplement hereunder) to disclose
any matter which, if occurring prior to the date hereof, would have been
required to be set forth or described on the Seller Disclosure Schedules or the
Company Disclosure Schedules or to correct any inaccuracy or breach in the
warranties made by Seller in this Agreement. Subject to this Section 5.10, none
of such supplements to the Seller Disclosure Schedules or the Company Disclosure
Schedules shall be deemed to cure the warranties to which such matters relate
with respect to satisfaction of the conditions set forth in

                                       26

<PAGE>

Section 6.2(b) hereof or otherwise affect any other term or condition contained
in this Agreement; provided, however, that unless Purchaser shall have delivered
a Breach Notice contemplated by Section 7.1(d) (to the extent Purchaser is
entitled to deliver such Breach Notice pursuant to the terms of this Agreement)
within ten (10) Business Days of the receipt by Purchaser of any supplement to
the Seller Disclosure Schedules or the Company Disclosure Schedules pursuant to
this Section 5.10, then Purchaser shall have waived any and all rights to
terminate this Agreement, pursuant to Section 7.1(d) or otherwise, arising out
of or relating to the contents of such supplement and the resulting breach or
breaches of the warranties and Purchaser shall be deemed to have accepted the
contents of such supplement for all purposes of this Agreement; and provided,
further, that, from and after the Closing, Seller shall have no liability
pursuant to this Agreement or for any matters arising out of or relating to any
of the matters disclosed on the Disclosure Letter, as supplemented or amended by
the Companies and Seller prior to the Closing.

          5.11 Change of Name.

          (a) Notwithstanding anything to the contrary contained herein, within
fifteen (15) Business Days after the Closing Date, the Purchaser shall have
caused CMS Midland and CMS Holdings to be renamed such that each such Company
does not include within its name "CMS". On or after the Closing Date, Purchaser
and its Affiliates shall not use existing or develop new stationery, business
cards and other similar items that bear the name or mark of "CMS Midland, Inc."
or "CMS Midland Holdings Company" or any similar derivation thereof in
connection with the businesses of the Companies.

          (b) The Parties acknowledge that any damage caused to Seller or any of
its Affiliates by reason of the breach by Purchaser or any of its Affiliates of
Section 5.11(a), in each case would cause irreparable harm that could not be
adequately compensated for in monetary damages alone; therefore, each Party
agrees that, in addition to any other remedies, at law or otherwise; Seller and
any of its Affiliates shall be entitled to an injunction issued by a court of
competent jurisdiction restraining and enjoining any violation by Purchaser or
any of its Affiliates of Section 5.11(a), and Purchaser further agrees that it
(x) will stipulate to the fact that Seller or any of its respective Affiliates,
as applicable, have been irreparably harmed by such violation and not oppose the
granting of such injunctive relief and (y) waive any requirement that Seller
post any bond or similar requirement in order for Seller to obtain the
injunctive relief contemplated by this Section 5.11(b).

          5.12 Financing. Notwithstanding anything contained in this Agreement
to the contrary, Purchaser expressly acknowledges and agrees that Purchaser's
obligations hereunder are not conditioned in any manner whatsoever upon
Purchaser obtaining any financing and any failure to fulfill any obligation
hereunder arising from the failure of Purchaser to obtain financing or the
unavailability of such financing shall be deemed to be intentional for purposes
hereof. Purchaser shall keep Seller apprised of all developments or changes
relating to the Financing Arrangements and the financing contemplated thereby.
If the Financing Arrangements shall cease to be in full force and effect at any
time or the lenders party thereto shall indicate any unwillingness to provide
the financing contemplated thereby, or for any reason Purchaser otherwise no
longer believes in good faith that it will be able to obtain the financing
contemplated thereby, then Purchaser shall promptly notify Seller and use best
efforts to obtain

                                       27
<PAGE>

replacement financing arrangements or commitment letters as soon as reasonably
practicable. Purchaser shall not, or permit any of its Subsidiaries or
Affiliates to, without the prior written consent of Seller, take any action or
enter into any transaction, including any merger, acquisition, joint venture,
disposition, lease, contract or debt or equity financing that would reasonably
be expected to impair, delay or prevent the financing contemplated by the
Financing Arrangements.

          5.13 Termination of Tax Sharing Agreements. Any and all existing Tax
sharing agreements or arrangements (written or unwritten, formal or informal,
including the Amended and Restated Agreement for the Allocation of Income Tax
Liabilities and Benefits dated as of January 1, 1994 to which CMS Energy, the
Companies and Seller, among others, are parties), providing for the allocation
or payment of Tax liabilities or payment for Tax benefits between a Company, the
Partnership or the Owner Participant, on the one hand, and any other Person, on
the other hand, shall be terminated as of the Closing Date and none of the
Companies, the Partnership or the Owner Participant will have any liability or
claims thereunder on or after the Closing Date. Purchaser shall be entitled to
written confirmation of such termination and extinguishment of liability and
claims from CMS Energy on behalf of itself and all affected non-Company parties
to such Tax sharing agreements and arrangements.

          5.14 Tax Matters.

               (a) Liability for Taxes. (i) Seller shall be liable for and pay
          (A) all Taxes imposed on any of the Companies, or for which any of the
          Companies may otherwise be liable, for any taxable year or period that
          ends on or before the Closing Date and, with respect to any Straddle
          Period, the portion of such Straddle Period ending on and including
          the Closing Date, (B) any Taxes by reason of the several liability of
          the Companies pursuant to Treasury Regulations Section 1.1502-6 or any
          analogous state, local or foreign law or regulation which is
          attributable to having been a member of any consolidated, affiliated,
          combined, unitary or similar group on or prior to the Closing Date and
          (C) any Taxes incurred by or imposed on Seller arising from the sale
          of the Companies by Seller; provided, however, that Seller shall not
          be liable for or pay (I) any Taxes shown as a liability or reserve on
          the Companies Financial Statements, (II) any Taxes imposed on any of
          the Companies or for which any of the Companies may otherwise be
          liable as a result of transactions occurring on the Closing Date that
          are properly allocable (based on, among other relevant factors,
          factors set forth in Treasury Regulations Section
          1.1502-76(b)(1)(ii)(B)) to the portion of the Closing Date after the
          Closing, and (III) notwithstanding anything to the contrary herein,
          any Taxes resulting from a sale of any of the Companies by Purchaser
          (Taxes described in this proviso, hereinafter "Excluded Taxes").
          Purchaser and Seller agree that, with respect to any transaction
          described in clause (II) of the preceding sentence, each of the
          Companies and all persons related to any of the Companies under
          Section 267(b) of the Code immediately after the Closing shall treat
          the transaction for all federal income Tax purposes (in accordance
          with Treasury Regulations Section 1.1502 76(b)(1)(ii)(B)), and (to the
          extent permitted) for other income Tax purposes, as occurring at the
          beginning of the day following the Closing Date. Seller shall be
          entitled to any refund of (or credit for) Taxes allocable to any
          taxable year or period that ends on or before the Closing Date and,
          with respect to any Straddle Period, the portion of such Straddle
          Period ending on and including the Closing Date.

                                       28

<PAGE>

               (ii) Purchaser shall be liable for and pay, and pursuant to
          Article VIII covenants to indemnify, defend and hold harmless the
          Seller Indemnified Parties from and against any and all Damages
          arising from, (A) all Taxes imposed any of the Companies, or for which
          any of the Companies may otherwise be liable, for any taxable year or
          period that begins after the Closing Date and, with respect to any
          Straddle Period, the portion of such Straddle Period beginning after
          the Closing Date and (B) any Excluded Taxes. Except as otherwise
          provided herein, Purchaser shall be entitled to any refund of (or
          credit for) Taxes allocable to any taxable year or period that begins
          after the Closing Date and, with respect to any Straddle Period, the
          portion of such Straddle Period beginning after the Closing Date.

               (iii) For purposes of paragraphs (a)(i) and (a)(ii), whenever it
          is necessary to determine the liability for Taxes of any of the
          Companies for a Straddle Period, the determination of the Taxes of any
          of the Companies for the portion of the Straddle Period ending on and
          including, and the portion of the Straddle Period beginning after, the
          Closing Date shall be determined by assuming that the Straddle Period
          consisted of two taxable years or periods, one which ended at the
          close of the Closing Date and the other which began at the beginning
          of the day following the Closing Date, and items of income, gain,
          deduction, loss or credit of any of the Companies for the Straddle
          Period shall be allocated between such two taxable years or periods on
          a "closing of the books basis" by assuming that the books of the
          Companies were closed at the close of the Closing Date; provided,
          however, that (I) transactions occurring on the Closing Date that are
          properly allocable (based on, among other relevant factors, factors
          set forth in Treasury Regulations Section 1.1502-76(b)(1)(ii)(B)) to
          the portion of the Closing Date after the Closing shall be allocated
          to the taxable year or period that is deemed to begin at the beginning
          of the day following the Closing Date, and (II) exemptions, allowances
          or deductions that are calculated on an annual basis, such as the
          deduction for depreciation, shall be apportioned between such two
          taxable years or periods on a daily basis.

               (iv) If, as a result of any action, suit, investigation, audit,
          claim, assessment or amended Tax Return, there is any change after the
          Closing Date in an item of income, gain, loss, deduction, credit or
          amount of Tax that results in an increase in a Tax liability for which
          Seller would otherwise be liable pursuant to paragraph (a)(i) of this
          Section 5.14, and such change results in or will result in a decrease
          in the Tax liability of any of the Companies, Purchaser or successor
          of any thereof for any taxable year or period beginning after the
          Closing Date or for the portion of any Straddle Period beginning after
          the Closing Date, Seller shall not be liable pursuant to such
          paragraph (a)(i) with respect to such increase to the extent of the
          present value (using a discount rate equal to the then "Federal
          mid-term rate," as that term is defined in Section 1274(d) of the
          Code) of such decrease (and, to the extent such increase in Tax
          liability is paid to a taxing

                                       29

<PAGE>

          authority by Seller or any Affiliate thereof, Purchaser shall pay
          Seller an amount equal to the present value of such decrease).
          Conversely, if, as a result of any action, suit, investigation, audit,
          claim, assessment or amended Tax Return, there is any change after the
          Closing Date in an item of income, gain, loss, deduction, credit or
          amount of Tax that results in an increase in a Tax liability for which
          Purchaser would otherwise be liable pursuant to paragraph (a)(ii) of
          this Section 5.14, and such change results in or will result in a
          decrease in the Tax liability of any of the Companies, Seller or
          successor of any thereof for any taxable year or period ending on or
          before the Closing Date or for the portion of any Straddle Period
          beginning before the Closing Date, Purchaser shall not be liable
          pursuant to such paragraph (a)(ii) with respect to such increase to
          the extent of the present value (using a discount rate equal to the
          then "Federal mid-term rate", as that term is defined in Section
          1274(d) of the Code) of such decrease (and, to the extent such
          increase in Tax liability is paid to a taxing authority by Purchaser
          or any Affiliate thereof, Seller shall pay Purchaser an amount equal
          to the present value of such decrease).

               (b) Tax Returns. (i) Seller shall file or cause to be filed when
          due (taking into account all extensions properly obtained all Tax
          Returns that are required to be filed by or with respect to any of the
          Companies for taxable years or periods ending on or before the Closing
          Date and Seller shall remit or cause to be remitted any Taxes due in
          respect of such Tax Returns, and Purchaser shall file or cause to be
          filed when due (taking into account all extensions properly obtained)
          all Tax Returns that are required to be filed by or with respect to
          any of the Companies for taxable years or periods ending after the
          Closing Date, and Purchaser shall remit or cause to be remitted any
          Taxes due in respect of such Tax Returns. Seller or Purchaser shall
          pay the other party for the Taxes for which Seller or Purchaser,
          respectively, is liable pursuant to paragraph (a) of this Section 5.14
          but which are payable with any Tax Return to be filed by the other
          party pursuant to this paragraph (b) upon the written request of the
          party entitled to payment, setting forth in detail the computation of
          the amount owed by Seller or Purchaser, as the case may be, but in no
          event earlier than 10 days prior to the due date for paying such Taxes
          without regard to any indemnification limitations set forth in Article
          VIII. If either Company has the right (contractually or under
          applicable Law) to review, provide comments with respect to, consent
          to the filing of or take any other action with respect to, any Tax
          Return required to be filed by or with respect to the Owner
          Participant or the Partnership, then (i) to the extent such Tax Return
          relates to a taxable year or period ending on or before the Closing
          Date, Seller shall control such Company's exercise of such right and
          (ii) to the extent such Tax Return relates to a Straddle Period,
          Purchaser shall control such Company's exercise of such right, but
          Seller shall be entitled to participate in such Company's exercise of
          such right.

               (ii) None of Purchaser or any Affiliate of Purchaser shall (or
          shall cause or permit any of the Companies to) (i) in the case of any
          Tax Return relating in whole or in part to any of the Companies with
          respect to any taxable year or period ending on or before the Closing
          Date (or with respect to any Straddle

                                       30

<PAGE>

          Period), amend, refile or otherwise modify (or grant an extension of
          any statute of limitation with respect to) such Tax Return or (ii) in
          the case of any Tax Return relating in whole or in part to the Owner
          Participant or the Partnership with respect to any taxable year or
          period ending on or before the Closing Date (or with respect to any
          Straddle Period), consent to, or otherwise exercise the rights of
          either Company (contractually or under applicable Law) with respect
          to, the amendment, refiling or other modification of (or the grant of
          any extension of any statute of limitation with respect to) any such
          Tax Return, in each case without the prior written consent of Seller,
          which consent may not be unreasonably withheld.

               (iii) Purchaser shall promptly cause each of the Companies to
          prepare and provide to Seller a package of Tax information materials
          (including, without limitation, (i) schedules and work papers and (ii)
          any Schedule K-1s delivered to the Companies by the Owner Participant
          or the Partnership, as the case may be) (the "Tax Package") required
          by Seller to enable Seller to prepare and file all Tax Returns
          required to be prepared and filed by it pursuant to paragraph (b)(i).
          The Tax Package shall be completed in accordance with past practice,
          including past practice as to providing such information and as to the
          method of computation of separate taxable income or other relevant
          measure of income of the Company. Purchaser shall cause the Tax
          Package to be delivered to Seller within 60 days after the Closing
          Date. To the extent requested by Purchaser, Seller shall provide
          reasonable assistance and guidance with respect to Purchaser's
          preparation of the Tax Package.

          (c) Contest Provisions. Purchaser shall promptly notify Seller in
writing upon receipt by Purchaser, any of its Affiliates, or any of the
Companies of notice of any pending or threatened federal, state, local or
foreign Tax audits, examinations or assessments which might affect the Tax
liabilities for which Seller may be liable pursuant to paragraph (a) of this
Section 5.14 (including, but not limited to, notice of any pending or threatened
audits, examinations or assessments involving the Owner Participant or the
Partnership which might affect the Tax liabilities for which Seller may be
liable pursuant to paragraph (a) of this Section 5.14). Seller shall have the
sole right to represent each of the Company's interests in any Tax audit or
administrative or court proceeding relating to taxable periods ending on or
before the Closing Date or otherwise relating to Taxes for which Seller may be
liable pursuant to paragraph (a) of this Section 5.14 (including, but not
limited to, the right to exercise any participation rights the Company may have
(either contractually or under applicable Law) in any Tax audit or
administrative or court proceeding involving the Owner Participant or the
Partnership which might affect the Tax liabilities for which Seller may be
liable pursuant to paragraph (a) of this Section 5.14), and to employ counsel of
its choice at its expense. In the case of a Straddle Period, Seller shall be
entitled to participate at its sole expense in any Tax audit or administrative
or court proceeding relating (in whole or in part) to Taxes attributable to the
portion of such Straddle Period ending on and including the Closing Date
(including any Tax audit or administrative or court proceeding involving the
Owner Participant or Partnership, to the extent either Company is entitled to
participate in such Tax audit or administrative or court proceeding (either
contractually or and under applicable Law)) and, with the written consent of
Purchaser, and at Seller's sole expense, may assume the entire control of such
audit or proceeding (or, in the case of any audit or proceeding involving the
Owner Participant or Partnership, the entire

                                       31

<PAGE>

participation by either Company in such audit or proceeding). None of Purchaser,
any of its Affiliates, or any of the Companies may settle any Tax claim (or
consent to or otherwise exercise the rights of either Company (contractually or
under applicable Law) with respect to the settlement of any Tax claim by the
Owner Participant or the Partnership) relating to Taxes for which Seller may be
liable pursuant to paragraph (a) of this Section 5.14 without the prior written
consent of Seller, which consent may be withheld in the sole discretion of
Seller.

          (d) Assistance and Cooperation. After the Closing Date, each of Seller
and Purchaser shall (and cause their respective Affiliates to):

               (i) assist the other party in preparing any Tax Returns which
          such other party is responsible for preparing and filing in accordance
          with paragraph (b) of this Section 5.14;

               (ii) cooperate fully in preparing for any audits of, or disputes
          with taxing authorities regarding, any Tax Returns of any of the
          Companies, the Owner Participant or the Partnership;

               (iii) make available to the other and to any taxing authority as
          reasonably requested all information, records, and documents relating
          to Taxes of each of the Companies, the Owner Participant or the
          Partnership;

               (iv) provide timely notice to the other in writing of any pending
          or threatened Tax audits or assessments of any of the Companies, the
          Owner Participant or the Partnership for taxable periods for which the
          other may have a liability under this Section 5.14;

               (v) furnish the other with copies of all correspondence received
          from any taxing authority in connection with any Tax audit or
          information request with respect to any such taxable period;

               (vi) timely sign and deliver such certificates or forms as may be
          necessary or appropriate to establish an exemption from (or otherwise
          reduce), or file Tax Returns or other reports with respect to, Taxes
          described in paragraph (a)(ii)(B) of this Section 5.6(b) (relating to
          sales, transfer and similar Taxes); and

               (vii) timely provide to the other powers of attorney or similar
          authorizations necessary to carry out the purposes of this Section
          5.14.

          5.15 Unwind Agreement. The Companies shall have been (i) completely
released from all liabilities to CMS Energy and its Affiliates under the Class I
Contracts and (ii) released from all liabilities to CMS Energy and its
Affiliates under the Class II Contracts to the extent exceeding $5,000,000 (and
a copy of such release shall have been provided to Purchaser).

          5.16 Books and Records. At the Closing, Seller shall deliver to
Purchaser copies or originals (where available) of the minute books for each
Company which are complete and correct in all material respects. As soon as
practicable following the Closing, Seller shall deliver or cause to be delivered
to Purchaser originals (where reasonably available, including

                                       32

<PAGE>

duplicate original counterparts held by former debt trustees and former counsel)
or copies of other books and records of the Companies, Seller and CMS Energy in
respect of the Partnership and the Owner Participant, in each case, listed on
any Schedule of the Disclosure Letter or otherwise made available for review by
Purchaser prior to the Closing in the electronic data room for "Project MCV"
maintained by Intralinks, Inc.

          5.17 FIRPTA Certificate. At the Closing, Purchaser shall have received
a certification of Seller's non-foreign status as set forth in Treasury
Regulations Section 1.1445-2(b).

                                   ARTICLE VI

                              CONDITIONS TO CLOSING

          6.1 Conditions to the Obligations of the Parties. The obligations of
the Parties to effect the Closing shall be subject to the satisfaction or waiver
(to the extent permitted by Law) by Purchaser and Seller, on or prior to the
Closing Date, of each of the following conditions precedent:

          (a) Statutory Approvals. The Seller Required Statutory Approvals and
the Purchaser Required Statutory Approvals set forth on Schedule 6.1(a) of the
Disclosure Letter shall have been obtained at or prior to the Closing Date and
the Seller Required Statutory Approvals shall not, individually or in the
aggregate, contain terms or conditions that have, or could reasonably be
expected to have, (i) a Company Material Adverse Effect or (ii) Purchaser
Material Adverse Effect.

          (b) No Injunction. No statute, rule or regulation shall have been
enacted or promulgated by any Governmental Entity which prohibits the
consummation of the transactions contemplated hereby and there shall be no order
or injunction of a court of competent jurisdiction in effect precluding or
prohibiting the consummation of the transactions contemplated hereby; provided,
however, that should any such order or injunction be entered into or in effect,
the parties shall use reasonable efforts (at the sole cost and expense of the
Party against which such order or injunction has been entered) to have any order
or injunction vacated or lifted.

          6.2 Conditions to the Obligation of Purchaser. The obligation of
Purchaser to effect the Closing shall be subject to the satisfaction or waiver
by Purchaser on or prior to the Closing Date of each of the following
conditions:

          (a) Performance of Obligations of Seller and the Companies. Each of
Seller and the Companies shall have performed in all Material respects its
respective agreements and covenants contained in or contemplated by this
Agreement which are required to be performed by it at or prior to the Closing.

          (b) Warranties. The warranties of Seller and the Companies set forth
in this Agreement shall be true and correct (i) on and as of the date hereof and
(ii) on and as of the Closing Date with the same effect as though such
warranties had been made on and as of the Closing Date (except for warranties
that expressly speak only as of a specific date or time which

                                       33

<PAGE>

need only be true and correct as of such date or time) except in each of cases
(i) and (ii) for such failures of warranties to be true and correct (without
giving effect to any materiality qualification or standard contained in any such
warranties) which would not reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse Effect or a Seller Material Adverse
Effect.

          (c) Company Required Consents. The Company Required Consents, the
failure of which to obtain would be reasonably expected to have, individually or
in the aggregate, a Company Material Adverse Effect or a Seller Material Adverse
Effect, shall have been obtained.

          (d) Officer's Certificate. Purchaser shall have received a certificate
from an authorized officer of Seller, dated the Closing Date, to the effect
that, to the best of such officer's Knowledge, the conditions set forth in
Sections 6.2(a) and 6.2(b) have been satisfied.

          (e) Resignations of Certain Officers and Directors. Purchaser shall
have received the resignations or removals of the officers and directors and
other persons set forth on Schedule 6.2(e) of the Disclosure Letter from their
position as officer or director, or other management or employment position, of
the Companies, the Partnership or the Owner Participant set forth opposite the
name of such officer, director or person on Schedule 6.2(e) of the Disclosure
Letter.

          (f) Alanna Holding Corporation. CMS Midland shall have become (for
$1.00 of consideration) the record and beneficial owner of all shares of common
stock of Alanna Holdings Corporation presently held by CMS Energy and, in
connection therewith, CMS Midland shall have become a party to a stockholders
agreement in the form required by the Stockholder's Agreement dated as of June
14, 1990 to which CMS Energy is a party, and CMS Midland shall have assumed all
of CMS Energy's rights and obligations under such Stockholder's Agreement.

          (g) MCV2 and MCV Expansion. Purchaser shall have received an
instrument of assignment (which form is attached hereto as Exhibit C), pursuant
to which (i) CMS Generation Co. shall have assigned to Purchaser all its right,
title and interest in and to MCV2 and (ii) CMS Generation Co. shall have
assigned to Purchaser all its right, title and interest in and to MCV Expansion,
which instrument shall be effective at the Effective Time.

          (h) Closing Deliverables. Purchaser shall have received all documents
and other items required to be delivered by Seller to Purchaser pursuant to
Section 1.4.

          6.3 Conditions to the Obligation of Seller. The obligation of Seller
to effect the Closing shall be subject to the satisfaction or waiver by Seller
on or prior to the Closing Date of each of the following conditions:

          (a) Performance of Obligations of Purchaser. Purchaser shall have
performed in all Material respects its agreements and covenants contained in or
contemplated by this Agreement which are required to be performed by it at or
prior to the Closing.

                                       34

<PAGE>

          (b) Warranties. The warranties of Purchaser set forth in this
Agreement shall be true and correct (i) on and as of the date hereof and (ii) on
and as of the Closing Date with the same effect as though such warranties had
been made on and as of the Closing Date (except for warranties that expressly
speak only as of a specific date or time which need only be true and correct as
of such date or time) except in each of cases (i) and (ii) for such failures of
warranties to be true and correct (without giving effect to any materiality
qualification or standard contained in any such warranties) which would not
reasonably be expected to have, individually or in the aggregate, a Purchaser
Material Adverse Effect.

          (c) Purchaser Required Consents. The Purchaser Required Consents, the
failure of which to obtain would reasonably be expected to have, individually or
in the aggregate, a Purchaser Material Adverse Effect, shall have been obtained.

          (d) Officer's Certificate. Seller shall have received a certificate
from an authorized officer of Purchaser, dated the Closing Date, to the effect
that, to the best of such officer's Knowledge, the conditions set forth in
Sections 6.3(a) and 6.3(b) have been satisfied.

          (e) Demand Note. Seller shall have received a dividend of the
$10,000,000 demand note issued by Seller in favor of CMS Midland or such note
and the obligations thereunder shall have been cancelled without any payment by
Seller in respect thereof.

          (f) Closing Deliverables. Seller shall have received all documents and
other items required to be delivered by Purchaser to Seller pursuant to Section
1.4.

                                   ARTICLE VII

                                   TERMINATION

          7.1 Termination. This Agreement may be terminated at any time prior to
the Closing Date:

          (a) by the mutual written agreement of Purchaser, the Companies and
Seller;

          (b) by Purchaser or Seller, if (i) a statute, rule, regulation or
executive order shall have been enacted, entered or promulgated prohibiting the
consummation of the transactions contemplated hereby or (ii) an order, decree,
ruling or injunction shall have been entered permanently restraining, enjoining
or otherwise prohibiting the consummation of the transactions contemplated
hereby, and such order, decree, ruling or injunction shall have become final and
nonappealable;

          (c) by Purchaser or Seller, by written notice, if the Closing Date
shall not have occurred on or before December 31, 2006 (the "Termination Date");
provided, however, that the right to terminate the Agreement under this Section
7.1(c) shall not be available to any Party whose failure to fulfill any
obligation under this Agreement shall have caused or resulted in the failure of
the Closing Date to occur on or before such date;

                                       35

<PAGE>

          (d) by Purchaser, so long as Purchaser is not then in breach of any of
its warranties, covenants or agreements hereunder, by written notice to Seller,
if there shall have been a breach of any warranty of Seller or the Companies, or
a breach of any covenant or agreement of Seller hereunder, which breaches would
be reasonably expected to have, individually or in the aggregate, a Company
Material Adverse Effect, and such breach shall not have been remedied within
thirty (30) days after receipt by Seller and the Companies of notice in writing
from Purchaser (a "Breach Notice"), specifying the nature of such breach and
requesting that it be remedied or Purchaser shall not have received adequate
assurance of a cure of such breach within such thirty-day period; or

          (e) by Seller, so long as Seller or the Companies are not then in
breach of any of their warranties, covenants or agreements hereunder, by written
notice to Purchaser, if there shall have been a breach of any warranty, or a
breach of any covenant or agreement of Purchaser hereunder, which breaches would
reasonably be expected to have, individually or in the aggregate, a Purchaser
Material Adverse Effect, and such breach shall not have been remedied within
thirty (30) days after receipt by Purchaser of notice in writing from Seller,
specifying the nature of such breach and requesting that it be remedied or
Seller shall not have received adequate assurance of a cure of such breach
within such thirty-day period.

          7.2 Effect of Termination. No termination of this Agreement pursuant
to Section 7.1 shall be effective until notice thereof is given to the
non-terminating Parties specifying the provision hereof pursuant to which such
termination is made. Subject to Section 1.5 hereof, if validly terminated
pursuant to Section 7.1, this Agreement shall, subject to Section 8.1, become
wholly void and of no further force and effect without liability to any Party or
to any Affiliate, or their respective members or shareholders, directors,
officers, employees, agents, advisors or representatives, and following such
termination no Party shall have any liability under this Agreement or relating
to the transactions contemplated by this Agreement to any other Party; provided
that no such termination shall (i) relieve Purchaser, Seller or the Companies
from liability for fraud or any willful or intentional breach of any provision
of this Agreement prior to such termination or (ii) relieve Purchaser from any
liability for any breach of Purchaser's warranties contained in Section 4.3
(whether or not such breach is fraudulent, willful or intentional). If this
Agreement is terminated as provided in Section 7.1, Purchaser shall redeliver to
Seller or the Companies, as the case may be, and will cause its agents to
redeliver to Seller or the Companies, as the case may be, all documents,
workpapers and other materials of Seller, the Companies, the Partnership, the
Owner Participant and the Lessor relating to any of them and the transactions
contemplated hereby, whether obtained before or after the execution hereof, and
Purchaser shall comply with all of its obligations under the Confidentiality
Agreement.

                                  ARTICLE VIII

                               LIMITS OF LIABILITY

          8.1 Non-Survival of Warranties, Covenants and Agreements.

          (a) Except as expressly provided in Section 8.1(b), none of the
warranties, covenants or agreements of Purchaser, the Companies or Seller in
this Agreement shall survive the Closing, and no claim of any sort or on any
basis may be made by any Party in respect of any breach of any such warranty,
covenant or agreement after the Closing, and no breach thereof shall confer any
right of rescission of this Agreement. Except in respect of the warranties,

                                       36

<PAGE>

covenants and agreements referred to in Section 8.1(b) that survive the Closing
and except as otherwise provided for in this Agreement, the sole remedy that a
Party may have for a breach of any warranty, covenant or agreement of Purchaser,
the Companies or Seller in this Agreement shall be to terminate this Agreement
to the extent provided for under, and in accordance with the terms of, this
Agreement.

          (b) The warranties, covenants and agreements of Purchaser, Companies
and Seller in this Agreement shall survive as follows:

               (i) the warranties of Seller contained in Sections 2.2 (Company
          Capitalization; Right and Title to Interests), 2.3(a) (Authority) and
          2.6 (Composite PPA, etc.) hereof shall survive indefinitely;

               (ii) the warranties of the Companies contained in Sections 3.1(a)
          (Organization and Qualification), 3.1(b) (Authority) and 3.2
          (Capitalization) hereof shall survive indefinitely;

               (iii) the warranties of the Companies contained in Section 3.11
          (Contracts) shall survive through December 31, 2007;

               (iv) the warranties of Purchaser contained in Sections 4.2(a)
          (Authority) and 4.8 (No Knowledge of Seller or Company Breach) hereof
          shall survive indefinitely;

               (v) the covenants and agreements of Purchaser and Companies
          contained in Section 5.7 (Indemnification of Directors and Officers)
          hereof shall survive in accordance with their terms;

               (vi) the covenants and agreements of the Parties set forth in the
          last sentence of Section 5.4 (Access), Sections 5.6 (Fees and
          Expenses), 5.9 (Further Assurances) and 5.11 (Change of Name) hereof,
          Section 7.2 (Effect of Termination) hereof, Article VIII (Limits of
          Liability) hereof and Article X (General Provisions) hereof shall
          survive indefinitely;

               (vii) the covenants and agreements of the Parties contained in
          Sections 5.13 (Termination of Tax Sharing Agreements) and 5.14 (Tax
          Matters) hereof shall survive the Closing and shall not terminate
          until the Tax Statute of Limitations Date.

No claim or cause of action arising out of the inaccuracy or breach of any
warranty, covenant or agreement of Seller, the Companies or Purchaser may be
made following the termination of the applicable survival period referred to in
this Section 8.1(b). The Parties intend to change the statutory limitations and
agree that, after the Closing Date, with respect to Seller, the Companies and
Purchaser, any claim or cause of action against any of the Parties, or any of
their respective directors, officers, employees, Affiliates, successors,
permitted assigns, advisors, agents, or representatives based upon, directly or
indirectly, any of the warranties, covenants or agreements contained in this
Agreement, or any other agreement, document or instrument to be executed and
delivered in connection with this Agreement, may be brought only as expressly
provided in this Article VIII.

                                       37

<PAGE>

          (c) The liability of any Party in respect of which a notice of claim
is given under this Agreement shall (if such claim has not been previously
satisfied, settled or withdrawn) absolutely determine and any claim made therein
be deemed to have been withdrawn (and no new claim may be made in respect of the
facts, event, matter or circumstance giving rise to such withdrawn claim) unless
legal proceedings in respect of such claim shall have been commenced within six
(6) months of the date of service of such notice (or such other period as may be
agreed by the relevant Parties) and for this purpose proceedings shall not be
deemed to have commenced unless they shall have been properly issued and validly
served upon the relevant Party.

          8.2 Seller Indemnity. From and after the Closing Date and subject to
the provisions of this Article VIII, Seller agrees to indemnify, defend and hold
harmless the Purchaser Indemnified Parties, from and against any and all Damages
arising from breach of warranties of the Companies contained in Sections 3.1(a)
(Organization and Qualification), 3.1(b) (Authority), 3.2 (Capitalization) and
3.11 (Contracts) hereof, subject in each case to any limits on liability
contained in this Agreement. Sections 3.1(a), 3.1(b) and 3.2 of this Agreement
shall survive indefinitely and Section 3.11 hereof shall survive through
December 31, 2007 but Seller shall have no claim for indemnity, contribution or
subrogation against the Companies for any breach of such Sections or against any
officer of any Company that may have certified as to the matters specified in
such Sections.

          8.3 Purchaser Indemnity. From and after the Closing Date and subject
to the provisions of this Article VIII, Purchaser agrees to indemnify, defend
and hold harmless the Seller Indemnified Parties, from and against any and all
Damages arising from and after the Effective Time in connection with or relating
to the business and operation of the Companies, the Partnership, the Owner
Participant and the Lessor, arising out of or relating to conduct occurring from
and after the Effective Time only excluding Damages arising from and after the
Effective Time in connection with or relating to (i) the business and operations
of the Companies, the Partnership, the Owner Participant and the Lessor under
the Consumers Contracts or the Dow Contracts, (ii) MPSC Matters or (iii)
Specified Environmental Matters.

          8.4 Claim Process.

          (a) The party or parties making a claim for breach of warranty or
indemnification under this Agreement shall be, for the purposes of this
Agreement, referred to as the "Indemnified Party" and the party or parties
against whom such claims are asserted under this Agreement shall be, for the
purposes of this Agreement, referred to as the "Indemnifying Party".

          (b) In the event that: (i) any action, application, suit, demand,
claim or legal, administrative, arbitration or other alternative dispute
resolution proceeding, hearing or investigation (each, a "Proceeding") is
asserted or instituted by any Person other than the Parties or their Affiliates
which could give rise to Damages for which an Indemnifying Party could be liable
to an Indemnified Party under this Agreement (such Proceeding, a "Third Party
Claim") or

                                       38

<PAGE>

(ii) any Indemnified Party under this Agreement shall have a claim for Damages
under this Agreement which does not involve a Third Party Claim (such claim, a
"Direct Claim" and, together with Third Party Claims, "Claims"), the Indemnified
Party shall, promptly after it becomes aware of a Third Party Claim, or facts
supporting a Direct Claim, send to the Indemnifying Party a written notice
specifying the nature of such Proceeding and the amount or estimated amount
thereof (which amount or estimated amount shall not be conclusive of the final
amount, if any, of such Proceeding) (a "Claim Notice"), together with copies of
all notices and documents (including court papers) served on or received by the
Indemnified Party in the case of a Third Party Claim, provided that a delay in
notifying the Indemnifying Party shall not relieve the Indemnifying Party of its
obligations under this Article VIII except to the extent that (and only to the
extent that) the Indemnifying Party shall have been materially prejudiced by
such failure to give such notice, in which case the Indemnifying Party shall be
relieved of its obligations under this Article VIII to the extent of such
material prejudice.

          (c) In the event of a Third Party Claim, the Indemnifying Party shall
have the right to defend the Indemnified Party against such Third Party Claim
and be entitled to appoint counsel of the Indemnifying Party's choice at the
expense of the Indemnifying Party to represent the Indemnified Party in
connection with such Proceeding (in which case the Indemnifying Party shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by any Indemnified Party or any other costs or expenses with respect to
the defense of a Third Party Claim except as set forth below); provided that
such counsel is acceptable to the Indemnified Party, the Indemnified Party
acting reasonably. Notwithstanding an Indemnifying Party's election to defend
such Third Party Claim and appoint counsel to represent an Indemnified Party in
connection with a Third Party Claim, an Indemnified Party shall have the right
to employ separate counsel, but the Indemnifying Party shall bear the reasonable
fees, costs and expenses of such separate counsel only if (i) the use of counsel
selected by the Indemnifying Party to represent the Indemnified Party would
present such counsel with a conflict of interest or (ii) the Indemnifying Party
shall not have employed counsel to represent the Indemnified Party within a
reasonable time after notice of the institution of such Third Party Claim,
provided that, notwithstanding such failure to employ counsel within a
reasonable time, the Indemnifying Party shall have the right to assume the
defense of such Third Party Claim by appointment of counsel reasonably
acceptable to the Indemnified Party and shall thereafter cease to be responsible
for the fees and expenses of counsel appointed by the Indemnified Party. Nothing
in this Section 8.4(c) shall require the Indemnifying Party to be responsible
for the fees and expenses of more than one counsel at any time in connection
with the defense against a Third Party Claim. If requested by the Indemnifying
Party, the Indemnified Party agrees to cooperate with the Indemnifying Party and
its counsel in defending and contesting any Proceeding which the Indemnifying
Party defends, or, if appropriate and related to the Proceeding in question, in
making any counterclaim against the person asserting the Third Party Claim, or
any cross-complaint against any person. No Third Party Claim may be settled or
compromised (i) by the Indemnified Party without the prior written consent of
the Indemnifying Party or (ii) by the Indemnifying Party without the prior
written consent of the Indemnified Party (which consent shall not be
unreasonably withheld or delayed), unless, in the case of this clause (ii), the
sole relief provided is monetary damages that are paid in full by the
Indemnifying Party (if such claim by the Indemnified Party for indemnification
is successful). In the event any Indemnified Party settles or compromises or
consents to the entry of any judgment with respect to any Third Party Claim
without the prior written consent of the Indemnifying Party (except in the event
the

                                       39

<PAGE>

Indemnifying Party unreasonably withheld or delayed its consent), each
Indemnified Party shall be deemed to have waived all rights against the
Indemnifying Party for indemnification under this Article VIII with respect to
such Third Party Claim.

          (d) In the event of a Direct Claim, the Indemnifying Party shall
notify the Indemnified Party within thirty (30) days of receipt of a Claim
Notice whether the Indemnifying Party disputes such claim. From and after the
delivery of a Claim Notice under this Agreement, at the reasonable request of
the Indemnifying Party, each Indemnified Party shall grant the Indemnifying
Party and its representatives reasonable access to the books, records,
employees, representatives and properties of such Indemnified Party to the
extent reasonably related to the matters to which the Claim Notice relates. If
the Indemnified Party is Purchaser, Purchaser shall cause each of the Companies,
and shall use reasonable efforts to cause each of the Partnership, the Owner
Participant and the Lessor, to grant to the Indemnifying Party the access
described in the immediately preceding sentence. All such access shall be
granted during normal business hours and shall be granted under conditions which
will not unreasonably interfere with the business and operations of the
Indemnified Party. The Indemnifying Party will not, and shall use reasonable
efforts to cause its representatives not to, use (except in connection with such
Claim Notice) or disclose to any third person other than the Indemnifying
Party's representatives (except as may be required by applicable Law) any
information obtained pursuant to this Section 8.4(d) which is designated as
confidential by an Indemnified Party.

          (e) If there shall be any conflicts between the provisions of this
Section 8.4 and Section 5.14(c) hereof, the provisions of such Section 5.14(c)
shall control with respect to Tax contests.

          8.5 Limitations on Claims.

          (a) Maximum Liability. Notwithstanding anything in this Agreement to
the contrary, but subject to the limitations set forth in this Section 8.5,
Section 10.10 hereof or otherwise in this Agreement, the aggregate amount of
Purchaser's or Seller's liability (in each case) pursuant to this Agreement and
the transactions contemplated hereby (in addition to Purchaser's obligation to
pay the Purchase Price in accordance with Article I hereof) shall not exceed the
amount of the Purchase Price plus any amounts paid by Purchaser under the SEPA
Payment Agreement and not otherwise reimbursed.

          (b) Additional Limitations.

               (i) The amount of any Damages incurred by the Indemnified Party
          shall be reduced by the net amount the Indemnified Party or any of its
          Affiliates recovers (after deducting all attorneys' fees, expenses and
          other costs of recovery) from any insurer or other party liable for
          such Damages (other than Seller). The Indemnified Party shall use
          reasonable efforts to effect any such recovery.

               (ii) The amount of any Damages incurred by the Indemnified Party
          shall be reduced by the amount of any Tax benefit to the Indemnified
          Party arising from the recognition of Damages.

                                       40

<PAGE>

               (iii) Any liability under this Agreement shall be determined
          without duplication of recovery by reason of the state of facts giving
          rise to such liability constituting a breach of more than one
          warranty, covenant or agreement.

               (iv) No recovery under this Agreement shall be available for
          Damages arising out of or relating to any inaccuracy or breach of any
          warranty of Seller or the Company to the extent Purchaser or any
          Affiliate of Purchaser had Knowledge of such breach or inaccuracy
          prior to the Closing.

               (v) No Party shall be entitled to recover Damages or obtain
          payment, reimbursement or restitution more than once in respect of any
          inaccuracy or breach of any provision of this Agreement. No liability
          shall attach to any Party under this Agreement to the extent the
          subject thereof has otherwise been made good or is compensated for.

               (vi) Seller's liability for all claims made under Section 8.2
          hereof with respect to breach of the warranties of the Companies
          contained in Section 3.11 (Contracts) shall be subject to the
          following limitations: (A) Seller shall have no liability for such
          claims until the aggregate amount of the Damages incurred (determined
          without regard to any materiality qualification or qualification with
          reference to Seller Material Adverse Effect or Company Material
          Adverse Effect) shall exceed $1,000,000, in which case Seller shall be
          liable only for the portion of the Damages exceeding such amount and
          (B) Seller's aggregate liability for all such Section 3.11-based
          claims shall not exceed 50% of the Purchase Price.

          (c) Limitation of Remedies.

               (i) Except for the warranties set forth in Articles II and III
          hereof, none of Seller, the Companies or their respective Affiliates
          nor any of their respective directors, officers, employees,
          subsidiaries, controlling persons, agents or representatives, makes or
          has made, and each of Seller, the Companies and their respective
          Affiliates and all of their respective directors, officers, employees,
          subsidiaries, controlling persons, agents or representatives hereby
          negate and disclaim, any other warranty, written or oral, statutory,
          express or implied, concerning the Shares, the business, assets or
          liabilities of any of the Companies, the Partnership, the Owner
          Participant, the Lessor, the transactions contemplated hereby, or any
          other matter in connection with Purchaser's investigation of the
          Companies, the Partnership, the Owner Participant and the Lessor.
          Purchaser has received and may continue to receive from Seller, the
          Companies and their respective representatives certain estimates,
          projections and other forecasts for the Companies, the Partnership and
          the Owner Participant and certain plan and budget information.
          Purchaser acknowledges that these estimates, projections, forecasts,
          plans and budgets and the assumptions on which they are based were
          prepared for specific purposes and may vary significantly from each
          other. Further, Purchaser acknowledges that there are uncertainties
          inherent in attempting to make such estimates, projections, forecasts,
          plans and budgets, that Purchaser is taking full responsibility for
          making its own evaluation of the

                                       41

<PAGE>

          adequacy and accuracy of all estimates, projections, forecasts, plans
          and budgets so furnished to it, and that Purchaser is not relying on
          any estimates, projections, forecasts, plans or budgets furnished by
          Seller, the Companies or their respective representatives, and
          Purchaser shall not hold any such person liable with respect thereto.
          Neither Seller nor the Companies make any representation or warranty
          with respect to any estimates, projections, forecasts, plans or
          budgets. Except as expressly provided in this Agreement, Purchaser
          acknowledges that none of Seller, the Companies, the Partnership, the
          Owner Participant, the Lessor and their respective Affiliates and none
          of their respective directors, officers, employees, subsidiaries,
          controlling persons, agents or representatives has made, and Seller
          and the Companies hereby expressly disclaim and negate, and Purchaser
          hereby expressly waives, any representation or warranty, express or
          implied, at common law, by statute or otherwise relating to, and
          Purchaser hereby expressly waives and relinquishes any and all rights,
          claims and causes of action against Seller, the Companies, the
          Partnership, the Owner Participant and the Lessor and their respective
          Affiliates and all of their respective directors, officers, employees,
          subsidiaries, controlling persons, agents or representatives in
          connection with, the accuracy, completeness or materiality of any
          information, data or other materials (written or oral) furnished to
          Purchaser or its Affiliates or representatives prior to, on or after
          the date hereof by or on behalf of Seller, the Companies, the
          Partnership, the Owner Participant and the Lessor. The provisions of
          this Section 8.5(c)(i) are intended to be for the benefit of, and be
          enforceable by, the respective Affiliates of Seller and the Companies,
          and directors, officers, employees, subsidiaries, controlling persons,
          agents and representatives of Seller, the Companies and their
          respective Affiliates.

               (ii) Except to the extent provided in Sections 5.12 and 10.12
          hereof, from and after the Closing, the rights expressly provided for
          in this Article VIII shall be the exclusive remedies of the Parties
          and their respective officers, directors, employees, Affiliates,
          agents, representatives, successors and assigns for any breach or
          inaccuracy of any warranty or breach of or noncompliance with any
          covenant or agreement contained in this Agreement and the parties
          shall not be entitled to a rescission of this Agreement or to any
          further indemnification or other rights or claims of any nature
          whatsoever (including under statute, regulation, common law, in equity
          or for negligence) in respect thereof, all of which the parties hereto
          hereby waive to the fullest extent permitted by law.

          8.6 Characterization of Payments for Damages. Purchaser and Seller
agree to treat any payment made under this Article VIII, to the maximum extent
permitted by applicable Law, as an adjustment to the Purchase Price for all Tax
purposes.

                                       42
<PAGE>

                                   ARTICLE IX

                         DEFINITIONS AND INTERPRETATION

          9.1 Defined Terms. The following terms are defined in the
corresponding Sections of this Agreement:

<TABLE>
<CAPTION>
Defined Term                             Section Reference
------------                             -----------------
<S>                                      <C>
Action                                   Section 5.7(a)
Affiliate Contracts                      Section 3.15
Agreed Amount                            Section 3.11(a)(ii)
Agreement                                Preamble
Breach Notice                            Section 7.1(d)
Claims                                   Section 8.4(b)
C&E Agreements                           Section 2.6
Claim Notice                             Section 8.4(b)
Closing                                  Section 1.3
Closing Date                             Section 1.3
CMS Holdings                             Preamble
CMS Holdings Shares                      Section 2.2
CMS Midland                              Preamble
CMS Midland Shares                       Section 2.2
Code                                     Section 3.5(a)
Companies                                Preamble
Company                                  Preamble
Company Financial Statements             Section 3.3
Company Material Contracts               Section 3.11(a)
Company Permits                          Section 3.9(a)
Company Required Consents                Section 3.1(c)
Company Required Statutory Approvals     Section 3.1(d)
Composite PPA                            Section 2.6
Contracting Party                        Section 3.11(a)
Direct Claim                             Section 8.4(b)
Disclosure Letter                        Article II
Dow                                      Section 3.11(a)(i)
ERISA Affiliate                          Section 3.8(a)
Excluded Taxes                           Section 5.14(a)(i)
Financing Arrangements                   Section 4.3
Indemnified Party                        Section 8.4(a)
Indemnified Person                       Section 5.7(a)
Indemnifying Party                       Section 8.4(a)
Intellectual Property                    Section 3.14
Owner Participant                        Recitals
Parties                                  Preamble
Partnership                              Recitals
Partnership Plans                        Section 3.8(a)
Proceeding                               Section 8.4(b)
Purchase Agreement Fee                   Section 1.5
Purchase Price                           Section 1.2
Purchaser                                Preamble
Purchaser Required Consents              Section 4.2(b)
Purchaser Required Statutory Approvals   Section 4.2(c)
</TABLE>

                                       43

<PAGE>

<TABLE>
<CAPTION>
Defined Term                             Section Reference
------------                             -----------------
<S>                                      <C>
Reg-Out Waiver Period                    Section 2.6
Securities Act                           Section 4.5
Seller                                   Preamble
Seller CA                                Section 5.5
Seller Required Consents                 Section 2.3(b)
Seller Required Statutory Approvals      Section 2.3(c)
SEPA Payment Agreement                   Section 1.4(c)
Shares                                   Section 2.2
Tax Package                              Section 5.14(b)(iii)
Termination Date                         Section 7.1(c)
Third Party Claim                        Section 8.4(b)
Transaction                              Section 1.1
Violation                                Section 2.3(b)
</TABLE>

          9.2 Definitions. Except as otherwise expressly provided in this
Agreement, or unless the context otherwise requires, whenever used in this
Agreement (including the Schedules), the following terms will have the meanings
indicated below:

          "Affiliate" means, with respect to any Person or group of Persons, a
     Person that directly or indirectly through one or more intermediaries,
     controls, is controlled by, or is under common control with such Person or
     group of Persons. "Control" (including the terms "controlled by" and "under
     common control with") means the possession, directly or indirectly, of the
     power to direct or cause the direction of the management policies of a
     Person, whether through the ownership of voting securities or other Equity
     Interests, by contract or credit arrangement, as trustee or executor, or
     otherwise. Solely for the purpose of the preceding sentence, a company is
     "directly controlled" by another company or companies holding shares
     carrying the majority of votes exercisable at a general meeting (or its
     equivalent) of the first mentioned company; and a particular company is
     "indirectly controlled" by a company or companies (hereinafter called the
     "parent company or companies") if a series of companies can be specified,
     beginning with the parent company or companies and ending with the
     particular company, so related that each company of the series except the
     parent company or companies is directly controlled by one or more of the
     preceding companies in the series.

          "Appendix A" means Appendix A to the Participation Agreement.

          "Business Day" means a day other than a Saturday, or Sunday or any
     other day on which banks are not required to be open or are authorized to
     close in New York, New York.

          "Class I Contracts" are items 1, 2, 4, 7 and 8 listed on Schedule A to
     the Unwind Agreement.

          "Class II Contracts" are (i) the Amended and Restated Investor Partner
     Tax Indemnification Agreement dated as of June 1, 1990 and (ii) items 3, 5
     (but only to the extent constituting a guaranty of such Amended and
     Restated Investor Partner Tax Indemnification Agreement) and 6 listed on
     Schedule A to the Unwind Agreement.

                                       44

<PAGE>

          "CMS Consent" means the Consent and Agreement dated as of June 1, 1990
     among Seller, the Partnership, the Lessor and certain other signatories
     thereto.

          "CMS Energy" means CMS Energy Corporation, a Michigan corporation and
     the parent entity of Seller.

          "Company Disclosure Schedules" means the Schedules setting forth
     certain disclosures of the Companies, or qualifications or exceptions to
     any of the Companies' warranties set forth in Article III, contained in the
     Disclosure Letter delivered simultaneously with the execution and delivery
     of this Agreement.

          "Company Material Adverse Effect" means any material adverse effect on
     (a) the business, assets, financial condition or results of operations of
     the Companies, the Partnership and the Owner Participant taken as a whole
     or (b) the ability of Seller to consummate the transactions contemplated by
     this Agreement or perform its obligations hereunder; provided, however,
     that (with respect to clause (a) of this definition) the term "Company
     Material Adverse Effect" shall not include effects that result from or are
     consequences of (i) changes in financial, securities or currency markets,
     changes in prevailing interest rates or foreign exchange rates, changes in
     general economic conditions, changes in electricity, gas or other fuel
     supply and transmission and transportation markets, including changes to
     market prices for electricity, steam, natural gas or other commodities, or
     effects of weather or meteorological events, (ii) changes in law, rule or
     regulation of any Governmental Entity or changes in regulatory conditions
     in the United States or any state in which the Companies, the Partnership
     or the Owner Participant operates, (iii) events or changes that are
     consequences of hostility, terrorist activity, acts of war or acts of
     public enemies, (iv) changes in accounting standards, principles or
     interpretations, (v) the negotiation, announcement, execution, delivery,
     consummation or pendency of this Agreement or the transactions contemplated
     by this Agreement or any action by Seller or its Affiliates contemplated by
     or required by this Agreement, or (vi) actions taken or not taken solely at
     the request of Purchaser.

          "Confidentiality Agreement" means, collectively, (i) the
     Confidentiality Agreement, dated as of June 12, 2006 among the Partnership,
     GSO Capital Partners LP and Rockland Capital Energy Investments LLC and
     (ii) the Seller CA.

          "Consent" means any consent, approval, authorization, order, filing,
     registration or qualification of, by or with any Person.

          "Consumers Contracts" means (i) the Consumers Contracts (as defined in
     Appendix A) and (ii) the Consumers Consent (as defined in Appendix A) as in
     effect on the date hereof.

          "Damages" means Liabilities, demands, claims, suits, actions, or
     causes of action, losses, costs, expenses, damages and judgments, whether
     or not resulting from third party claims (including reasonable fees and
     expenses of attorneys and accountants).

                                       45

<PAGE>

          "Dow Contracts" has the meaning specified in Appendix A as in effect
     on the date hereof.

          "Effective Time" means such time on the Closing Date at which the
     Transaction and the other transactions contemplated by this Agreement are
     consummated.

          "Environmental Law" means any foreign, federal, state, or local Law
     relating to (a) the treatment, disposal, emission, discharge, Release or
     threatened Release of Hazardous Substances or (b) the preservation and
     protection of the environment (including natural resources, air and surface
     or subsurface land or waters).

          "Equity Interests" means shares of capital stock or other equity
     interests.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended.

          "Financing Facility" means debt instruments incurred by the
     Partnership, if any, and leveraged lease debt.

          "FMLP Partnership Agreement" means the Amended and Restated Agreement
     of Limited Partnership dated as of June 14, 1990 among the parties
     signatory thereto.

          "GAAP" means United States generally accepted accounting principles.

          "Governmental Entity" means any supranational, national, federal,
     state, municipal or local governmental or quasi-governmental or regulatory
     authority (including a national securities exchange or other
     self-regulatory body), agency, court, commission or other similar entity,
     domestic or foreign.

          "Governmental Order" means any order, decree, ruling, injunction,
     judgment or similar act of or by any Governmental Entity.

          "Hazardous Substance" means (a) any material, substance or waste
     (whether liquid, gaseous or solid) that (i) requires removal, remediation
     or reporting under any Environmental Law, or is listed, classified or
     regulated as a "hazardous waste" or "hazardous substance" (or other similar
     term) pursuant to any applicable Environmental Law or (ii) is regulated
     under applicable Environmental Laws as being, toxic, explosive, corrosive,
     flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise
     hazardous and (b) any petroleum product or by-product, petroleum-derived
     substances wastes or breakdown products, asbestos or polychlorinated
     biphenyls.

          "Knowledge" when used with respect to the applicable Company, means
     the actual knowledge of any fact, circumstance or condition of those
     officers of such Company or its Affiliates set forth on Schedule 9.2(a) of
     the Disclosure Letter and to the extent set forth on Schedule 9.2(a) of the
     Disclosure Letter; when used with respect to CMS Midland, means the actual
     knowledge of any fact, circumstance or condition of those individuals set
     forth on Schedule 9.2(a) of the Disclosure Letter and to the extent set
     forth on Schedule 9.2(a) of the Disclosure Letter; when used with respect
     to CMS

                                       46

<PAGE>

     Holdings, means the actual knowledge of any fact, circumstance or condition
     of those individuals set forth on Schedule 9.2(a) of the Disclosure Letter
     and to the extent set forth on Schedule 9.2(a) of the Disclosure Letter;
     when used with respect to Seller, means the actual knowledge of any fact,
     circumstance or condition of those officers of Seller or its Affiliates set
     forth on Schedule 9.2(a) of the Disclosure Letter and to the extent set
     forth on Schedule 9.2(a) of the Disclosure Letter; and when used with
     respect to Purchaser, means the actual knowledge of any fact, circumstance
     or condition of those officers of Purchaser or its Affiliates set forth on
     Schedule 9.2(b) of the Disclosure Letter and to the extent set forth on
     Schedule 9.2(b) of the Disclosure Letter.

          "Law" means any law, statute, ordinance, regulation or rule of or by
     any Governmental Entity or any arbitrator.

          "Lessor" means Bank of America, N.A., as successor in interest to The
     Connecticut National Bank, not in its individual capacity but solely as
     Owner Trustee under the Trust Agreement.

          "Liabilities" means any and all known liabilities or indebtedness of
     any nature (whether direct or indirect, absolute or contingent, liquidated
     or unliquidated, due or to become due, accrued or unaccrued, matured or
     unmatured, asserted or unasserted, determined or determinable and whenever
     or however arising).

          "Lien" means any lien, claim, security interest, encumbrance or other
     adverse claim.

          "Material" when used with respect to the applicable Company, means
     material to CMS Midland and the Partnership, taken as a whole, or to CMS
     Holdings, the Owner Participant and the Lessor, taken as a whole, and when
     used with respect to Purchaser, means material to Purchaser and its
     Subsidiaries, taken as a whole.

          "MCV2" means MCV2 Development Company, a Michigan general partnership.

          "MCV Expansion" means Midland Cogeneration Venture Expansion, LLC, a
     Delaware limited liability company.

          "MCV Facility" means the 1,500 MW natural gas-fired, combined-cycle,
     cogeneration facility located in Midland County, Michigan operated by the
     Partnership.

          "MCV Partnership Agreement" means that certain Amended and Restated
     Limited Partnership Agreement of the Partnership, dated as of June 13,
     1988, by and among CMS Midland, Tempco I, Inc., Tempco II, Inc., Rofan
     Energy Inc., Micogen Limited Partnership, MEI Limited Partnership, Source
     Midland Limited Partnership, Coastal Midland, Inc. and C-E Midland Energy,
     Inc. in effect on the date hereof (including Amendment No. 4 thereto to be
     entered into on or about the date hereof).

          "MPSC Matters" means any past or future proceeding, order or
     settlement with respect to the MCV Facility or a Consumers Contract before
     any Governmental Entity involving the nature or extent of MPSC authority,
     the recovery in retail rates of costs under the Composite PPA or any past
     settlement, order or proceeding relating to the Composite PPA or recovery
     in rates of Composite PPA costs.

                                       47

<PAGE>

          "Operating Contract" means any contract or agreement (i) providing for
     the purchase, sale, supply, transportation, disposal or distribution of
     electricity, steam, fuel or any byproduct from electricity generation, (ii)
     for the operation and maintenance of any assets of the Companies and (iii)
     governing any Facility output or input.

          "Organizational Documents" means, with respect to any corporation, its
     articles or certificate of incorporation, memorandum or articles of
     association and by-laws or documents of similar substance; with respect to
     any limited liability company, its articles or certificate of organization,
     formation or association and its operating agreement or limited liability
     company agreement or documents of similar substance; with respect to any
     limited partnership, its certificate of limited partnership and partnership
     agreement or documents of similar substance; and with respect to any other
     entity, documents of similar substance to any of the foregoing.

          "Participation Agreement" means the Amended and Restated Participation
     Agreement (Trust 1) dated as of June 1, 1990 between the Partnership, the
     Owner Participant and certain other parties signatory thereto in effect on
     the date hereof.

          "Permits" means all permits, licenses, franchises, registrations,
     variances, authorizations, Consents, orders, certificates and approvals
     obtained from or otherwise made available by any Governmental Entity or
     pursuant to any Law.

          "Permitted Liens" means any Lien arising under the Organizational
     Documents of any of the Companies, the Partnership or the Owner
     Participant, as applicable.

          "Person" means any natural person, firm, partnership, association,
     corporation, company, joint venture, trust, business trust, Governmental
     Entity or other entity.

          "Purchaser Disclosure Schedules" means Schedules 4.2(b), 4.2(c), 4.3
     and 4.4 setting forth disclosures of Purchaser, or qualifications or
     exceptions to any of Purchaser's warranties set forth in Article IV
     delivered simultaneously with the execution and delivery of this Agreement
     by Purchaser.

          "Purchaser Indemnified Parties" means Purchaser, Purchaser's
     Affiliates, and their respective directors, officers, shareholders,
     attorneys, accountants, representatives, agents and employees, and their
     respective heirs, successors and assigns.

          "Purchaser Material Adverse Effect" means any material adverse effect
     on (a) the business, assets, financial condition or results of operations
     of Purchaser and its Subsidiaries taken as a whole or (b) the ability of
     Purchaser to consummate the transactions contemplated by this Agreement or
     perform its obligations hereunder.

          "RCA" means the Resource Conservation Agreement dated as of February
     12, 2004, by and between the Partnership and Seller.

                                       48

<PAGE>

          "RDA" means the Reduced Dispatched Agreement dated as of July 7, 2004,
     by and between the Partnership and Seller.

          "Release" means the release, spill, emission, leaking, pumping,
     pouring, emptying, escaping, dumping, injection, deposit, disposal,
     discharge, dispersal, leaching or migrating of any Hazardous Substance into
     the environment.

          "Seller Indemnified Parties" means Seller, Seller's Affiliates, and
     their respective directors, officers, shareholders, attorneys, accountants,
     representatives, agents and employees, and their respective heirs,
     successors and assigns.

          "Seller Material Adverse Effect" means, with respect to Seller, any
     material adverse effect on the ability of Seller to consummate the
     transactions contemplated by this Agreement or perform its obligations
     hereunder.

          "Seller Disclosure Schedules" means the Schedules setting forth
     certain disclosures of Seller, or qualifications or exceptions to any of
     Seller's warranties set forth in Article II, contained in the Disclosure
     Letter delivered simultaneously with the execution and delivery of this
     Agreement.

          "Specified Environmental Matters" means matters addressed in any
     environmental agreement or environmental indemnification agreement as in
     effect on the date hereof where Seller, CMS Energy and/or Dow has a hold
     harmless and indemnity obligation in respect of an environmental matter
     relating to the site of the MCV Facility, excluding, however, matters to
     the extent that such matters attributable to the business and operations of
     the Companies, the Partnership, the Owner Participant and/or the Lessor
     from and after the Effective Time.

          "Specified Rate" means the per annum rate of interest published as the
     "Prime Rate" in The Wall Street Journal determined as of the date the
     obligation to pay interest arises.

          "Straddle Period" shall mean any taxable year or period beginning on,
     or before and ending after the Closing Date.

          "Subsidiary" means, with respect to any Person (for the purposes of
     this definition, the "parent"), any other Person (other than a natural
     person), whether incorporated or unincorporated, of which at least a
     majority of the securities or ownership interests having by their terms
     ordinary voting power to elect a majority of the board of directors or
     other persons performing similar functions is directly or indirectly owned
     or controlled by the parent or by one or more of its respective
     Subsidiaries or by the parent and any one or more of its respective
     Subsidiaries.

          "Tax" or "Taxes" means federal, state, local or foreign income, gross
     receipts, property, sales, use, license, excise, environmental (including
     taxes under Code Section 59A), stamp, franchise, employment, payroll,
     withholding, social security (or similar), unemployment, property, personal
     property, alternative or add-on minimum, ad valorem, value added, transfer
     or excise tax, or any other tax, custom, duty, governmental fee or other
     like assessment or charge of any kind whatsoever, together with any
     interest or penalty, whether disputed or not, imposed by any Governmental
     Entity.

                                       49

<PAGE>

          "Tax Returns" means all tax returns, declarations, statements,
     reports, claims for refund, schedules, forms and information returns and
     any amendments, schedules or attachments to any of the foregoing relating
     to Taxes.

          "Tax Statute of Limitations Date" means the close of business on the
     45th day after the expiration of the applicable statute of limitations with
     respect to Taxes, including any extensions thereof (or if such date is not
     a Business Day, the next Business Day).

          "Trading Contract" means any swap, forward, option or hedging
     agreement relating to the purchase or sale of energy-related products and
     services.

          "Trust Agreement" means the Amended and Restated Trust Agreement dated
     as of March 1, 1990 between the Owner Participant and the Lessor.

          "Unwind Agreement" means the Unwind Agreement dated as of December 10,
     1991 among CMS Energy, Seller, the Companies and MEC Development Corp. and
     included as Schedule 9.2(c) of the Disclosure Letter.

          9.3 Interpretation. In this Agreement, unless otherwise specified, the
following rules of interpretation apply:

          (a) references to Sections, Schedules, Annexes, Exhibits and Parties
are references to sections or sub-sections, schedules, annexes and exhibits of,
and parties to, this Agreement;

          (b) the section and other headings contained in this Agreement are for
reference purposes only and do not affect the meaning or interpretation of this
Agreement;

          (c) words importing the singular include the plural and vice versa;

          (d) references to the word "including" do not imply any limitation;

          (e) the words "hereof", "herein" and "hereunder" and words of similar
import, when used in this Agreement, refer to this Agreement as a whole and not
to any particular provision of this Agreement; and

          (f) references to "$" or "dollars" refer to U.S. dollars.

                                       50

<PAGE>

                                    ARTICLE X

                               GENERAL PROVISIONS

          10.1 Notices. All notices, requests, demands, waivers and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been duly given on if (a) delivered
personally, (b) mailed by certified or registered mail with postage prepaid, (c)
sent by next-day or overnight mail or delivery, or (d) sent by fax or telegram,
as follows:

          (a) if to Purchaser,

                    MCV Power Partners, Inc.
                    c/o GSO Capital Partners, LP
                    280 Park Avenue
                    11th Floor East Tower
                    New York, New York 10023
                    Fax: 212-503-6930
                    Telephone: 212-503-2100
                    Attention: D. Dwight Scott

                    with a copy to:

                    Rockland Capital Energy
                    Investments, LLC
                    2204 Timberlock Place, Suite 190
                    The Woodlands, TX 77380
                    Fax: 832-585-0104
                    Telephone: 832-585-0035
                    Attention: W. Scott Harlan

          (b) if to Seller,

                    Consumers Energy Company
                    One Energy Plaza
                    Jackson, MI 49201
                    Fax: (517) 788-0768
                    Telephone: (517) 788-1257
                    Attention: James E. Brunner

                    with a copy to:

                    Sidley Austin LLP
                    One South Dearborn
                    Chicago, IL 60603
                    Fax: (312) 853-7036
                    Telephone: (312) 853-7324
                    Attention: Andrew H. Shaw

          (c) if to CMS Midland,

                    CMS Midland Holdings Company
                    One Energy Plaza
                    Jackson, MI 49201
                    Fax: (517) 788-0768
                    Telephone: (517) 788-1257
                    Attention: James E. Brunner

                                       51

<PAGE>

                    with a copy to:

                    Sidley Austin LLP
                    One South Dearborn
                    Chicago, IL 60603
                    Fax: (312) 853-7036
                    Telephone: (312) 853-7324
                    Attention: Andrew H. Shaw

          (d) If to CMS Holdings,

                    CMS Midland Holdings Company
                    One Energy Plaza
                    Jackson, MI 49201
                    Fax: (517) 788-0768
                    Telephone: (517) 788-1257
                    Attention: James E. Brunner

                    with a copy to:

                    Sidley Austin LLP
                    One South Dearborn
                    Chicago, IL 60603
                    Fax: (312) 853-7036
                    Telephone: (312) 853-7324
                    Attention: Andrew H. Shaw

or, in each case, at such other address as may be specified in writing to the
other Parties.

     All such notices, requests, demands, waivers and other communications shall
be deemed to have been received, if by personal delivery, certified or
registered mail or next-day or overnight mail or delivery, on the day delivered
or, if by fax or telegram, on the next Business Day following the day on which
such fax or telegram was sent, provided that a copy is also sent by certified or
registered mail. For the purposes of this Section 10.1, notice to any of the
Companies shall not constitute notice to Seller, and vice versa.

          10.2 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the Parties and their respective heirs, successors and permitted
assigns.

          10.3 Assignment; Successors; Third-Party Beneficiaries. (a) This
Agreement is not assignable by any Party without the prior written consent of
all of the other Parties and any attempt to assign this Agreement without such
consent shall be void and of no effect; provided, however, no consent shall be
required with respect to any merger or conversion contemplated in Schedule 1.6
of the Disclosure Letter.

                                       52

<PAGE>

          (b) This Agreement shall inure to the benefit of, and be binding on
and enforceable by and against, the successors and permitted assigns of the
respective Parties, whether or not so expressed.

          (c) This Agreement is intended for the benefit of the Parties hereto
and does not grant any rights to any third parties unless specifically stated
herein.

          10.4 Amendment; Waivers; etc. No amendment, modification or discharge
of this Agreement, and no waiver under this Agreement, shall be valid or binding
unless set forth in writing and duly executed by the Party against whom
enforcement of the amendment, modification, discharge or waiver is sought. Any
such waiver shall constitute a waiver only with respect to the specific matter
described in such writing and shall in no way impair the rights of the Party
granting such waiver in any other respect or at any other time. The waiver by
any of the Parties of a breach of or a default under any of the provisions of
this Agreement, or any failure or delay to exercise any right or privilege under
this Agreement, shall not be construed as a waiver thereof or otherwise affect
any of such provisions, rights or privileges under this Agreement.

          10.5 Entire Agreement.

          (a) This Agreement (including the Schedules and Exhibits referred to
in or delivered under this Agreement, including the Disclosure Letter) and the
Confidentiality Agreement contains the entire agreement between the parties
relating to the subject matter of this Agreement to the exclusion of any terms
implied by law which may be excluded by contract and supersedes all prior
agreements and understandings, both written and oral, among the Parties with
respect to their subject matters. Each Party acknowledges that it has not been
induced to enter this Agreement by and, in agreeing to enter into this
Agreement, it has not relied on, any warranties except as expressly stated or
referred to in this Agreement.

          (b) The liability of a Party shall be limited or excluded as set out
in this Agreement if and to the extent such limitations or exclusions apply,
save in the event of fraud, fraudulent misrepresentation, death or personal
injury.

          10.6 Severability. Any term or provision of this Agreement that is
held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction or other authority declares that any term or provision
hereof is invalid, void or unenforceable, the Parties agree that the court
making such determination, to the greatest extent legally permissible, shall
have the power to reduce the scope, duration, area or applicability of the term
or provision, to delete specific words or phrases, or to replace any invalid,
void or unenforceable term or provision with a term or provision that is valid
and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision.

                                       53

<PAGE>

          10.7 Counterparts. This Agreement may be executed and delivered
(including via facsimile) in several counterparts, each of which shall be deemed
an original and all of which shall together constitute one and the same
instrument.

          10.8 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
ANY CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

          10.9 Jurisdiction.

          (a) The courts of the State of New York are to have non-exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Agreement. Any Proceedings shall be brought in the courts of the State of New
York sitting in the County of New York, the court of the United States of
America for the Southern District, and appellate courts having jurisdiction of
appeals from any of the foregoing. Each Party waives (and agrees not to raise)
any objection, on the ground of forum non conveniens or on any other ground, to
the taking of proceedings in such courts. Each Party also agrees that a judgment
against it in Proceedings brought in the State of New York shall be conclusive
and binding upon it and may be enforced in any other jurisdiction.

          (b) Each Party irrevocably submits and agrees to submit to the
jurisdiction of the courts of the State of New York sitting in the County of New
York, the court of the United States of America for the Southern District, and
appellate courts having jurisdiction of appeals from any of the foregoing.

          10.10 Limitation on Damages. No Party shall, under any circumstance,
have any liability to any other Party for any special, indirect, consequential
or punitive damages claimed by such other Party under the terms of or due to any
breach or non-performance of this Agreement, including lost profits, loss of
revenue or income, cost of capital, or loss of business reputation or
opportunity.

          10.11 Enforcement. The Parties agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not to be
performed in accordance with the terms hereof and that the Parties shall be
entitled to specific performance of the terms hereof in addition to any other
remedies at law or in equity.

          10.12 No Right of Set-Off. Purchaser, for itself and its successors
and permitted assigns, hereby unconditionally and irrevocably waives any rights
of set-off, netting, offset, recoupment, or similar rights that such Purchaser
or any of its successors and permitted assigns has or may have with respect to
the payment of the Purchase Price or any other payments to be made by Purchaser
pursuant to this Agreement or any other document or instrument delivered by
Purchaser in connection herewith.

                                       54

<PAGE>

     IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the
date first above written.

                                        CONSUMERS ENERGY COMPANY

                                        By: /s/ Thomas J. Webb
                                            ------------------------------------
                                        Name: Thomas J. Webb
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                        CMS MIDLAND, INC.

                                        By: /s/ Thomas J. Webb
                                            ------------------------------------
                                        Name: Thomas J. Webb
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                        CMS MIDLAND HOLDINGS COMPANY

                                        By: /s/ Thomas J. Webb
                                            ------------------------------------
                                        Name: Thomas J. Webb
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                        MCV POWER PARTNERS, INC.

                                        By: /s/ D. Dwight Scott
                                            ------------------------------------
                                        Name: D. Dwight Scott
                                        Title: Vice President

                                       55

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