Document:

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                                                              EXHIBIT (4)(e)(xv)

                      NINETY-SEVENTH SUPPLEMENTAL INDENTURE

                        PROVIDING AMONG OTHER THINGS FOR
                              FIRST MORTGAGE BONDS,
                         3 3/8% SERIES DUE JUNE 15, 2010

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

                          DATED AS OF SEPTEMBER 1, 2004

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

                            CONSUMERS ENERGY COMPANY

                                       TO

                               JPMORGAN CHASE BANK
                                     TRUSTEE

                                                          Counterpart ____ of 90

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            NINETY-SEVENTH SUPPLEMENTAL INDENTURE, dated as of September 1, 2004
(hereinafter sometimes referred to as "this Supplemental Indenture"), made and
entered into by and between CONSUMERS ENERGY COMPANY, a corporation organized
and existing under the laws of the State of Michigan, with its principal
executive office and place of business at One Energy Plaza, in Jackson, Jackson
County, Michigan 49201, formerly known as Consumers Power Company (hereinafter
sometimes referred to as the "Company"), and JPMORGAN CHASE BANK, a corporation
organized and existing under the laws of the State of New York, with its
corporate trust offices at 4 New York Plaza, in the Borough of Manhattan, The
City of New York, New York 10004 (hereinafter sometimes referred to as the
"Trustee"), as Trustee under the Indenture dated as of September 1, 1945 between
Consumers Power Company, a Maine corporation (hereinafter sometimes referred to
as the "Maine corporation"), and City Bank Farmers Trust Company (Citibank,
N.A., successor, hereinafter sometimes referred to as the "Predecessor
Trustee"), securing bonds issued and to be issued as provided therein
(hereinafter sometimes referred to as the "Indenture"),

            WHEREAS at the close of business on January 30, 1959, City Bank
Farmers Trust Company was converted into a national banking association under
the title "First National City Trust Company"; and

            WHEREAS at the close of business on January 15, 1963, First National
City Trust Company was merged into First National City Bank; and

            WHEREAS at the close of business on October 31, 1968, First National
City Bank was merged into The City Bank of New York, National Association, the
name of which was thereupon changed to First National City Bank; and

            WHEREAS effective March 1, 1976, the name of First National City
Bank was changed to Citibank, N.A.; and

            WHEREAS effective July 16, 1984, Manufacturers Hanover Trust Company
succeeded Citibank, N.A. as Trustee under the Indenture; and

            WHEREAS effective June 19, 1992, Chemical Bank succeeded by merger
to Manufacturers Hanover Trust Company as Trustee under the Indenture; and

            WHEREAS effective July 15, 1996, The Chase Manhattan Bank (National
Association) merged with and into Chemical Bank which thereafter was renamed The
Chase Manhattan Bank; and

            WHEREAS effective November 11, 2001, Morgan Guaranty Trust Company
of New York merged with and into The Chase Manhattan Bank which thereafter was
renamed JPMorgan Chase Bank; and

            WHEREAS the Indenture was executed and delivered for the purpose of
securing such bonds as may from time to time be issued under and in accordance
with the terms of the Indenture, the aggregate principal amount of bonds to be
secured thereby being limited to

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$5,000,000,000 at any one time outstanding (except as provided in Section 2.01
of the Indenture), and the Indenture describes and sets forth the property
conveyed thereby and is filed in the Office of the Secretary of State of the
State of Michigan and is of record in the Office of the Register of Deeds of
each county in the State of Michigan in which this Supplemental Indenture is to
be recorded; and

            WHEREAS the Indenture has been supplemented and amended by various
indentures supplemental thereto, each of which is filed in the Office of the
Secretary of State of the State of Michigan and is of record in the Office of
the Register of Deeds of each county in the State of Michigan in which this
Supplemental Indenture is to be recorded; and

            WHEREAS the Company and the Maine corporation entered into an
Agreement of Merger and Consolidation, dated as of February 14, 1968, which
provided for the Maine corporation to merge into the Company; and

            WHEREAS the effective date of such Agreement of Merger and
Consolidation was June 6, 1968, upon which date the Maine corporation was merged
into the Company and the name of the Company was changed from "Consumers Power
Company of Michigan" to "Consumers Power Company"; and

            WHEREAS the Company and the Predecessor Trustee entered into a
Sixteenth Supplemental Indenture, dated as of June 4, 1968, which provided,
among other things, for the assumption of the Indenture by the Company; and

            WHEREAS said Sixteenth Supplemental Indenture became effective on
the effective date of such Agreement of Merger and Consolidation; and

            WHEREAS the Company has succeeded to and has been substituted for
the Maine corporation under the Indenture with the same effect as if it had been
named therein as the mortgagor corporation; and

            WHEREAS effective March 11, 1997, the name of Consumers Power
Company was changed to Consumers Energy Company; and

            WHEREAS pursuant to a Trust Indenture, dated as of September 1, 2004
(the "MSF Trust Indenture") by and between the Michigan Strategic Fund, a
Michigan public body corporate and politic of the State of Michigan (the
"Issuer"), and JPMorgan Chase Bank, as trustee (together with any successor
trustee thereto, the "MSF Trust Indenture Trustee"), the Issuer has agreed to
issue and sell $30,000,000 principal amount of its Limited Obligation Refunding
Revenue Bonds (Consumers Energy Company Project) Collateralized Series 2004
(hereinafter sometimes called the "MSF Refunding Revenue Bonds"), in order to
provide funds for the refunding of certain pollution control revenue bonds
previously issued by the Issuer to finance the costs of constructing and
installing pollution control facilities at plants of the Company; and

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            WHEREAS the MSF Trust Indenture provides, among other things, for
credit enhancement on the MSF Refunding Revenue Bonds; and

            WHEREAS MBIA Insurance Corporation, a New York-domiciled stock
insurance company ("MBIA") has agreed to provide such credit enhancement on the
MSF Refunding Revenue Bonds through the issuance of its financial guaranty
insurance policy (the "Policy") which insures certain payments of principal of
and interest on the MSF Refunding Revenue Bonds, as specified therein; and

            WHEREAS the Company has entered into a Loan Agreement, dated as of
September 1, 2004 with the Issuer (the "Loan Agreement") in connection with (i)
the issuance of the MSF Refunding Revenue Bonds, in order to refund certain
pollution control revenue bonds, and (ii) the payment of the MSF Refunding
Revenue Bonds, and pursuant to such Loan Agreement the Company has agreed to
issue a new series of bonds under the Indenture in order to secure the payment
of the MSF Refunding Revenue Bonds; and

            WHEREAS for such purposes the Company desires to issue a new series
of bonds, to be designated 3 3/8% Series due June 15, 2010, each of which bonds
shall also bear the descriptive title "First Mortgage Bond" (hereinafter
provided for and hereinafter sometimes referred to as the "Series 2004 Bonds"),
the bonds of which series are to be issued as registered bonds without coupons
and are to bear interest at the rate per annum specified herein and are to
mature on June 15, 2010; and

            WHEREAS each of the registered bonds without coupons of the Series
2004 Bonds and the Trustee's Authentication Certificate thereon are to be
substantially in the following form:

               [FORM OF REGISTERED BOND OF THE SERIES 2004 BONDS]

                                     [FACE]

                            CONSUMERS ENERGY COMPANY

              FIRST MORTGAGE BOND, 3 3/8% SERIES DUE JUNE 15, 2010

No.                                                           $30,000,000

            Notwithstanding any provisions hereof or in the Indenture, this bond
is not assignable or transferable except as may be required to effect a transfer
to any successor trustee under the Trust Indenture, dated as of September 1,
2004 between the Michigan Strategic Fund and JPMorgan Chase Bank, as trustee,
or, subject to compliance with applicable law, as may be involved in the course
of the exercise of rights and remedies consequent upon an Event of Default under
said Trust Indenture.

            CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called
the "Company"), for value received, hereby promises to pay to JPMorgan Chase
Bank, as

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trustee, or registered assigns, the principal sum of Thirty Million Dollars on
June 15, 2010, and to pay to the registered holder hereof interest on said sum
from the latest semi-annual interest payment date to which interest has been
paid on the bonds of this series preceding the date hereof, unless the date
hereof be an interest payment date to which interest is being paid, in which
case from the date hereof, or unless the date hereof is prior to December 15,
2004, in which case from September 22, 2004 (or, if this bond is dated between
the record date for any interest payment date and such interest payment date,
then from such interest payment date, provided, however, that if the Company
shall default in payment of the interest due on such interest payment date, then
from the next preceding semi-annual interest payment date to which interest has
been paid on the bonds of this series, or if such interest payment date is
December 15, 2004, from September 22, 2004), at the rate per annum, until the
principal hereof shall have become due and payable, specified in the title of
this bond, payable on June 15 and December 15 in each year.

            Under a Trust Indenture dated as of September 1, 2004 (hereinafter
sometimes referred to as the "MSF Trust Indenture"), between the Michigan
Strategic Fund (hereinafter sometimes called "MSF") and JPMorgan Chase Bank, as
trustee (hereinafter, together with any successor trustee thereto, sometimes
called the "MSF Trust Indenture Trustee"), MSF has issued Limited Obligation
Refunding Revenue Bonds (Consumers Energy Company Project) Collateralized Series
2004 (hereinafter sometimes referred to as "MSF Refunding Revenue Bonds"). This
bond was originally issued to MSF and simultaneously and irrevocably assigned by
the MSF to the MSF Trust Indenture Trustee so as to secure the payment of the
MSF Refunding Revenue Bonds. Payments of principal of, or premium, if any, or
interest on, the MSF Refunding Revenue Bonds shall constitute payments on this
bond as further provided herein and in the supplemental indenture pursuant to
which this bond has been issued.

            The provisions of this bond are continued on the reverse hereof and
such continued provisions shall for all purposes have the same effect as though
fully set forth at this place.

            This bond shall not be valid or become obligatory for any purpose
unless and until it shall have been authenticated by the execution by the
Trustee or its successor in trust under the Indenture of the certificate hereon.

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            IN WITNESS WHEREOF, Consumers Energy Company has caused this bond to
be executed in its name by its Chairman of the Board, its President or one of
its Vice Presidents by his or her signature or a facsimile thereof, and its
corporate seal or a facsimile thereof to be affixed hereto or imprinted hereon
and attested by its Secretary or one of its Assistant Secretaries by his or her
signature or a facsimile thereof.

      Dated:

                                          CONSUMERS ENERGY COMPANY

                                          By:  _____________________________
                                          Its: _____________________________

Attest:

__________________________
Assistant Secretary

                 [FORM OF TRUSTEE'S AUTHENTICATION CERTIFICATE]

                      TRUSTEE'S AUTHENTICATION CERTIFICATE

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

                                          JPMorgan Chase Bank, Trustee

                                          By _________________________________
                                             Authorized Officer

                                    [REVERSE]

                            CONSUMERS ENERGY COMPANY

              FIRST MORTGAGE BOND, 3 3/8% SERIES DUE JUNE 15, 2010

            The interest payable on any June 15 and December 15 will, subject to
certain exceptions provided in the Indenture hereinafter mentioned, be paid to
the person in whose name this bond is registered at the close of business on the
record date, which shall be the first day of

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the month in which such interest payment is due (whether or not a business day).
The principal of and the premium, if any, and the interest on this bond shall be
payable at the office or agency of the Company in the City of Jackson, Michigan
designated for that purpose, in any coin or currency of the United States of
America which at the time of payment is legal tender for public and private
debts.

            Upon payment of the principal of, or premium, if any, or interest
on, the MSF Refunding Revenue Bonds, whether at maturity or prior to maturity by
redemption or otherwise or upon provision for the payment thereof having been
made in accordance with Article I or VI of the MSF Trust Indenture, the
principal of, and premium, if any, on the Series 2004 Bonds and the interest
thereon then due shall, to the extent of such payment of principal, premium or
interest, be deemed fully paid and the obligation of the Company thereunder to
make such payment shall forthwith cease and be discharged and, in the case of
the payment of principal and premium, if any, such Series 2004 Bonds shall be
surrendered for cancellation or presented for appropriate notation to the
Trustee. The Trustee may at any time and all times conclusively assume that the
obligation of the Company to make payments with respect to the principal of and
premium, if any, and interest on the Series 2004 Bonds, so far as such payments
at the time have become due, has been fully satisfied and discharged pursuant to
the foregoing sentence unless and until the Trustee shall have received a
written notice from the MSF Trust Indenture Trustee signed by one of its
officers stating (i) that timely payment of principal of, or premium or interest
on, the MSF Refunding Revenue Bonds has not been made, (ii) that the Company is
in arrears as to the payments required to be made by it to the MSF Trust
Indenture Trustee pursuant to the Loan Agreement after giving effect to any
available moneys in the Bond Fund provided by the MSF Trust Indenture, and (iii)
the amount of the arrearage.

            This bond is one of the bonds issued and to be issued from time to
time under and in accordance with and all secured by an Indenture dated as of
September 1, 1945, given by the Company (or its predecessor of the same name, a
Maine corporation) to City Bank Farmers Trust Company (JPMorgan Chase Bank,
successor) (hereinafter sometimes referred to as the "Trustee"), and indentures
supplemental thereto, heretofore or hereafter executed, to which indenture and
indentures supplemental thereto (hereinafter referred to collectively as the
"Indenture") reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security and the rights,
duties and immunities thereunder of the Trustee and the rights of the holders of
said bonds and of the Trustee and of the Company in respect of such security,
and the limitations on such rights. By the terms of the Indenture, the bonds to
be secured thereby are issuable in series which may vary as to date, amount,
date of maturity, rate of interest and in other respects as provided in the
Indenture.

            The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than seventy-five per
centum in principal amount of the bonds (exclusive of bonds disqualified by
reason of the Company's interest therein) at the time outstanding, including, if
more than one series of bonds shall be at the time outstanding, not less than
sixty per centum in principal amount of each series affected, to effect, by an
indenture supplemental to the Indenture, modifications or alterations of the
Indenture and of the rights and obligations of the Company and the rights of the
holders of the bonds and coupons; provided, however, that no such modification
or alteration shall be made without the written approval or

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consent of the holder hereof which will (a) extend the maturity of this bond or
reduce the rate or extend the time of payment of interest hereon or reduce the
amount of the principal hereof, or (b) permit the creation of any lien, not
otherwise permitted, prior to or on a parity with the lien of the Indenture, or
(c) reduce the percentage of the principal amount of the bonds the holders of
which are required to approve any such supplemental indenture.

            This bond is not redeemable by the operation of the improvement fund
or the maintenance and replacement provisions of the Indenture or by the use of
proceeds of released property.

            This bond is redeemable on the respective dates and in the
respective principal amounts which correspond to the redemption dates for, and
the principal amounts to be redeemed of, the MSF Refunding Revenue Bonds,
including provision for redemption upon demand of the MSF Trust Indenture
Trustee following the occurrence of an Event of Default under the MSF Trust
Indenture and the acceleration of the MSF Refunding Revenue Bonds.

            This bond shall not be assignable or transferable except as may be
required to effect a transfer to any successor trustee under the MSF Trust
Indenture, or, subject to compliance with applicable law, as may be involved in
the course of the exercise of rights and remedies consequent upon an Event of
Default under the MSF Trust Indenture. Any such transfer shall be effected at
the Investor Services Department of the Company, as transfer agent (hereinafter
referred to as "corporate trust office"). This bond shall be exchangeable for
other registered bonds of the same series, in the manner and upon the conditions
prescribed in the Indenture, upon the surrender of such bonds at said corporate
trust office of the transfer agent. However, notwithstanding the provisions of
Section 2.05 of the Indenture, no charge shall be made upon any registration of
transfer or exchange of bonds of said series other than for any tax or taxes or
other governmental charge required to be paid by the Company.

            No recourse shall be had for the payment of the principal of or
premium, if any, or interest on this bond, or for any claim based hereon, or
otherwise in respect hereof or of the Indenture, to or against any incorporator,
stockholder, director or officer, past, present or future, as such, of the
Company, or of any predecessor or successor company, either directly or through
the Company, or such predecessor or successor company, or otherwise, under any
constitution or statute or rule of law, or by the enforcement of any assessment
or penalty, or otherwise, all such liability of incorporators, stockholders,
directors and officers, as such, being waived and released by the holder and
owner hereof by the acceptance of this bond and being likewise waived and
released by the terms of the Indenture.

           [End of Form of Registered Bond of the Series 2004 Bonds.]

            AND WHEREAS all acts and things necessary to make the Series 2004
Bonds, when duly executed by the Company and authenticated by the Trustee or its
agent and issued as prescribed in the Indenture, as heretofore supplemented and
amended, and this Supplemental Indenture provided, the valid, binding and legal
obligations of the Company, and to constitute the Indenture, as supplemented and
amended as aforesaid, as well as by this Supplemental

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Indenture, a valid, binding and legal instrument for the security thereof, have
been done and performed, and the creation, execution and delivery of this
Supplemental Indenture and the creation, execution and issuance of bonds subject
to the terms hereof and of the Indenture, as so supplemented and amended, have
in all respects been duly authorized;

            NOW, THEREFORE, in consideration of the premises, of the acceptance
and purchase by the holders thereof of the bonds issued and to be issued under
the Indenture, as supplemented and amended as above set forth, and of the sum of
One Dollar duly paid by the Trustee to the Company, and of other good and
valuable considerations, the receipt whereof is hereby acknowledged, and for the
purpose of securing the due and punctual payment of the principal of and
premium, if any, and interest on all bonds now outstanding under the Indenture
and the $30,000,000 principal amount of Series 2004 Bonds proposed to be issued
initially and all other bonds which shall be issued under the Indenture, as
supplemented and amended from time to time, and for the purpose of securing the
faithful performance and observance of all covenants and conditions therein, and
in any indenture supplemental thereto, set forth, the Company has given,
granted, bargained, sold, released, transferred, assigned, hypothecated,
pledged, mortgaged, confirmed, set over, warranted, alienated and conveyed and
by these presents does give, grant, bargain, sell, release, transfer, assign,
hypothecate, pledge, mortgage, confirm, set over, warrant, alienate and convey
unto JPMorgan Chase Bank, as Trustee, as provided in the Indenture, and its
successor or successors in the trust thereby and hereby created and to its or
their assigns forever, all the right, title and interest of the Company in and
to all the property, described in Section 11 hereof, together (subject to the
provisions of Article X of the Indenture) with the tolls, rents, revenues,
issues, earnings, income, products and profits thereof, excepting, however, the
property, interests and rights specifically excepted from the lien of the
Indenture as set forth in the Indenture.

            TOGETHER WITH all and singular the tenements, hereditaments and
appurtenances belonging or in any wise appertaining to the premises, property,
franchises and rights, or any thereof, referred to in the foregoing granting
clause, with the reversion and reversions, remainder and remainders and (subject
to the provisions of Article X of the Indenture) the tolls, rents, revenues,
issues, earnings, income, products and profits thereof, and all the estate,
right, title and interest and claim whatsoever, at law as well as in equity,
which the Company now has or may hereafter acquire in and to the aforesaid
premises, property, franchises and rights and every part and parcel thereof.

            SUBJECT, HOWEVER, with respect to such premises, property,
franchises and rights, to excepted encumbrances as said term is defined in
Section 1.02 of the Indenture, and subject also to all defects and limitations
of title and to all encumbrances existing at the time of acquisition.

            TO HAVE AND TO HOLD all said premises, property, franchises and
rights hereby conveyed, assigned, pledged or mortgaged, or intended so to be,
unto the Trustee, its successor or successors in trust and their assigns
forever;

            BUT IN TRUST, NEVERTHELESS, with power of sale for the equal and
proportionate benefit and security of the holders of all bonds now or hereafter
authenticated and

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delivered under and secured by the Indenture and interest coupons appurtenant
thereto, pursuant to the provisions of the Indenture and of any supplemental
indenture, and for the enforcement of the payment of said bonds and coupons when
payable and the performance of and compliance with the covenants and conditions
of the Indenture and of any supplemental indenture, without any preference,
distinction or priority as to lien or otherwise of any bond or bonds over others
by reason of the difference in time of the actual authentication, delivery,
issue, sale or negotiation thereof or for any other reason whatsoever, except as
otherwise expressly provided in the Indenture; and so that each and every bond
now or hereafter authenticated and delivered thereunder shall have the same
lien, and so that the principal of and premium, if any, and interest on every
such bond shall, subject to the terms thereof, be equally and proportionately
secured, as if it had been made, executed, authenticated, delivered, sold and
negotiated simultaneously with the execution and delivery thereof.

            AND IT IS EXPRESSLY DECLARED by the Company that all bonds
authenticated and delivered under and secured by the Indenture, as supplemented
and amended as above set forth, are to be issued, authenticated and delivered,
and all said premises, property, franchises and rights hereby and by the
Indenture and indentures supplemental thereto conveyed, assigned, pledged or
mortgaged, or intended so to be, are to be dealt with and disposed of under,
upon and subject to the terms, conditions, stipulations, covenants, agreements,
trusts, uses and purposes expressed in the Indenture, as supplemented and
amended as above set forth, and the parties hereto mutually agree as follows:

            SECTION 1. There is hereby created one series of bonds designated as
hereinabove provided, which shall also bear the descriptive title "First
Mortgage Bond", and the form thereof shall be substantially as hereinbefore set
forth. Series 2004 Bonds shall be issued in the aggregate principal amount of
$30,000,000, shall mature on June 15, 2010 and shall be issued only as
registered bonds without coupons in denominations of $5,000 and any multiple
thereof. The serial numbers of the Series 2004 Bonds shall be such as may be
approved by any officer of the Company, the execution thereof by any such
officer either manually or by facsimile signature to be conclusive evidence of
such approval. Series 2004 Bonds shall bear interest at the rate per annum,
until the principal thereof shall have become due and payable, specified in the
title thereof, payable semi-annually on June 15 and December 15 in each year.
The principal of and the premium, if any, and the interest on said bonds shall
be payable in any coin or currency of the United States of America which at the
time of payment is legal tender for public and private debts, at the office or
agency of the Company in the City of Jackson, Michigan designated for that
purpose.

            Upon payment of the principal of, and premium, if any, or interest
on the MSF Refunding Revenue Bonds, whether at maturity or prior to maturity by
redemption or otherwise, or upon provision for payment thereof having been made
in accordance with Article I or IV of the MSF Trust Indenture, the principal of,
and premium, if any, on the Series 2004 Bonds and the interest thereon then due
shall, to the extent of such payment of principal, premium or interest, be
deemed fully paid and the obligation of the Company thereunder to make such
payment shall forthwith cease and be discharged, and, in the case of such
payment of principal and premium, if any, such Series 2004 Bonds shall be
surrendered for cancellation or presented for appropriate notation to the
Trustee. The Trustee may at any time and all times conclusively

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assume that the obligation of the Company to make payments with respect to the
principal of and premium, if any, and interest on the Series 2004 Bonds, so far
as such payments at the time have become due, has been fully satisfied and
discharged pursuant to the foregoing sentence unless and until the Trustee shall
have received a written notice from the MSF Trust Indenture Trustee signed by
one of its officers stating (i) that timely payment of principal of, or premium
or interest on, the MSF Refunding Revenue Bonds has not been made, (ii) that the
Company is in arrears as to the payments required to be made by it to the MSF
Trust Indenture Trustee pursuant to the Loan Agreement after giving effect to
any available moneys in the Bond Fund provided by the MSF Trust Indenture, and
(iii) the amount of the arrearage.

            Each Series 2004 Bond is to be irrevocably assigned to, and
registered in the name of the MSF Trust Indenture Trustee , to secure payment of
the MSF Refunding Revenue Bonds , the proceeds of which have been provided for
the refunding of certain pollution control revenue bonds which the Company has
agreed to refund pursuant to the provisions of the Loan Agreement.

            Series 2004 Bonds shall not be assignable or transferable except as
may be required to effect a transfer to any successor trustee under the MSF
Trust Indenture, or, subject to compliance with applicable law, as may be
involved in the course of the exercise of rights and remedies consequent upon an
Event of Default under the MSF Trust Indenture. Any such transfer shall be
transferred at the Investor Services Department of the Company, as transfer
agent (hereinafter and in the Series 2004 Bonds referred to as "corporate trust
office"). Series 2004 Bonds shall be exchangeable for other registered bonds of
the same series, in the manner and upon the conditions prescribed in the
Indenture, upon the surrender of such bonds at said corporate trust office of
the transfer agent. However, notwithstanding the provisions of Section 2.05 of
the Indenture, no charge shall be made upon any registration of transfer or
exchange of bonds of said series other than for any tax or taxes or other
governmental charge required to be paid by the Company.

            SECTION 2. Series 2004 Bonds shall be redeemed on the respective
dates and in the respective principal amounts which correspond to the redemption
dates for, and the principal amounts to be redeemed of, the MSF Refunding
Revenue Bonds.

            In the event the Company elects or is required to redeem any MSF
Refunding Revenue Bonds prior to maturity in accordance with the provisions of
the MSF Trust Indenture, the Company may on the same date redeem the Series 2004
Bonds in principal amounts and at prices corresponding to the MSF Refunding
Revenue Bonds so redeemed. The Company agrees to give the Trustee notice of any
such redemption of the Series 2004 Bonds on the same date as it gives notice of
the redemption of the MSF Refunding Revenue Bonds to the MSF Trust Indenture
Trustee.

            Series 2004 Bonds are not redeemable by the operation of the
improvement fund or the maintenance and replacement provisions of the Indenture
or by the use of proceeds of released property.

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            SECTION 3. In the event of an Event of Default under the MSF Trust
Indenture and the acceleration of all MSF Refunding Revenue Bonds, the Series
2004 Bonds shall be redeemable in whole upon receipt by the Trustee of a written
demand (hereinafter called a "Redemption Demand") from the MSF Trust Indenture
Trustee stating that there has occurred under the MSF Trust Indenture both an
Event of Default and a declaration of acceleration of payment of principal,
accrued interest and premium, if any, on the MSF Refunding Revenue Bonds,
specifying the last date to which interest on the MSF Refunding Revenue Bonds
has been paid (such date being hereinafter referred to as the "Initial Interest
Accrual Date") and demanding redemption of the Series 2004 Bonds. The Trustee
shall, within five days after receiving such Redemption Demand, mail a copy
thereof to the Company marked to indicate the date of its receipt by the
Trustee. Promptly upon receipt by the Company of such copy of a Redemption
Demand, the Company shall fix a date on which it will redeem the Series 2004
Bonds so demanded to be redeemed (hereinafter called the "Demand Redemption
Date"). Notice of the date fixed as the Demand Redemption Date shall be mailed
by the Company to the Trustee at least ten days prior to such Demand Redemption
Date. The date to be fixed by the Company as and for the Demand Redemption Date
may be any date up to and including the earlier of (x) the 60th day after
receipt by the Trustee of the Redemption Demand or (y) the maturity date of the
Series 2004 Bonds; provided, however, that if the Trustee shall not have
received such notice fixing the Demand Redemption Date on or before the 10th day
preceding the earlier of such dates, the Demand Redemption Date shall be deemed
to be the earlier of such dates. The Trustee shall mail notice of the Demand
Redemption Date (such notice being hereinafter called the "Demand Redemption
Notice") to the MSF Trust Indenture Trustee not more than ten nor less than five
days prior to the Demand Redemption Date.

            Each of the Series 2004 Bonds shall be redeemed by the Company on
the Demand Redemption Date therefor upon surrender thereof by the MSF Trust
Indenture Trustee to the Trustee at a redemption price equal to the principal
amount thereof plus accrued interest thereon at the rate specified for such bond
from the Initial Interest Accrual Date to the Demand Redemption Date plus an
amount equal to the aggregate premium, if any, due and payable on such Demand
Redemption Date on all MSF Refunding Revenue Bonds; provided, however, that in
the event of a receipt by the Trustee of a notice that, pursuant to Section 604
of the MSF Trust Indenture, the MSF Trust Indenture Trustee has terminated
proceedings to enforce any right under the MSF Trust Indenture, then any
Redemption Demand shall thereby be rescinded by the MSF Trust Indenture Trustee,
and no Demand Redemption Notice shall be given, or, if already given, shall be
automatically annulled; but no such rescission or annulment shall extend to or
affect any subsequent default or impair any right consequent thereon.

            SECTION 4. The Company reserves the right, without any consent, vote
or other action by the holder of the Series 2004 Bonds or of any subsequent
series of bonds issued under the Indenture, to make such amendments to the
Indenture, as supplemented, as shall be necessary in order to amend Section
17.02 to read as follows:

            SECTION 17.02. With the consent of the holders of not less than a
      majority in principal amount of the bonds at the time outstanding or their
      attorneys-in-fact duly authorized, or, if fewer than all series are
      affected, not less than a majority in principal amount of the bonds at the
      time outstanding of each series the rights of the holders of which are
      affected,

                                       11
<PAGE>

      voting together, the Company, when authorized by a resolution, and the
      Trustee may from time to time and at any time enter into an indenture or
      indentures supplemental hereto for the purpose of adding any provisions to
      or changing in any manner or eliminating any of the provisions of this
      Indenture or of any supplemental indenture or modifying the rights and
      obligations of the Company and the rights of the holders of any of the
      bonds and coupons; provided, however, that no such supplemental indenture
      shall (1) extend the maturity of any of the bonds or reduce the rate or
      extend the time of payment of interest thereon, or reduce the amount of
      the principal thereof, or reduce any premium payable on the redemption
      thereof, without the consent of the holder of each bond so affected, or
      (2) permit the creation of any lien, not otherwise permitted, prior to or
      on a parity with the lien of this Indenture, without the consent of the
      holders of all the bonds then outstanding, or (3) reduce the aforesaid
      percentage of the principal amount of bonds the holders of which are
      required to approve any such supplemental indenture, without the consent
      of the holders of all the bonds then outstanding. For the purposes of this
      Section, bonds shall be deemed to be affected by a supplemental indenture
      if such supplemental indenture adversely affects or diminishes the rights
      of holders thereof against the Company or against its property. The
      Trustee may in its discretion determine whether or not, in accordance with
      the foregoing, bonds of any particular series would be affected by any
      supplemental indenture and any such determination shall be conclusive upon
      the holders of bonds of such series and all other series. Subject to the
      provisions of Sections 16.02 and 16.03 hereof, the Trustee shall not be
      liable for any determination made in good faith in connection herewith.

            Upon the written request of the Company, accompanied by a resolution
      authorizing the execution of any such supplemental indenture, and upon the
      filing with the Trustee of evidence of the consent of bondholders as
      aforesaid (the instrument or instruments evidencing such consent to be
      dated within one year of such request), the Trustee shall join with the
      Company in the execution of such supplemental indenture unless such
      supplemental indenture affects the Trustee's own rights, duties or
      immunities under this Indenture or otherwise, in which case the Trustee
      may in its discretion but shall not be obligated to enter into such
      supplemental indenture.

            It shall not be necessary for the consent of the bondholders under
      this Section to approve the particular form of any proposed supplemental
      indenture, but it shall be sufficient if such consent shall approve the
      substance thereof.

            The Company and the Trustee, if they so elect, and either before or
      after such consent has been obtained, may require the holder of any bond
      consenting to the execution of any such supplemental indenture to submit
      his bond to the Trustee or to ask such bank, banker or trust company as

                                       12
<PAGE>

      may be designated by the Trustee for the purpose, for the notation thereon
      of the fact that the holder of such bond has consented to the execution of
      such supplemental indenture, and in such case such notation, in form
      satisfactory to the Trustee, shall be made upon all bonds so submitted,
      and such bonds bearing such notation shall forthwith be returned to the
      persons entitled thereto.

            Prior to the execution by the Company and the Trustee of any
      supplemental indenture pursuant to the provisions of this Section, the
      Company shall publish a notice, setting forth in general terms the
      substance of such supplemental indenture, at least once in one daily
      newspaper of general circulation in each city in which the principal of
      any of the bonds shall be payable, or, if all bonds outstanding shall be
      registered bonds without coupons or coupon bonds registered as to
      principal, such notice shall be sufficiently given if mailed, first class,
      postage prepaid, and registered if the Company so elects, to each
      registered holder of bonds at the last address of such holder appearing on
      the registry books, such publication or mailing, as the case may be, to be
      made not less than thirty days prior to such execution. Any failure of the
      Company to give such notice, or any defect therein, shall not, however, in
      any way impair or affect the validity of any such supplemental indenture.

            SECTION 5. As supplemented and amended as above set forth, the
Indenture is in all respects ratified and confirmed, and the Indenture and all
indentures supplemental thereto shall be read, taken and construed as one and
the same instrument.

            SECTION 6. Nothing contained in this Supplemental Indenture shall,
or shall be construed to, confer upon any person other than a holder of bonds
issued under the Indenture, as supplemented and amended as above set forth, the
Company, the Trustee and the MSF Trust Indenture Trustee, for the benefit of the
holder or holders of the MSF Refunding Revenue Bonds, any right or interest to
avail himself of any benefit under any provision of the Indenture, as so
supplemented and amended.

            SECTION 7. The Trustee assumes no responsibility for or in respect
of the validity or sufficiency of this Supplemental Indenture or of the
Indenture as hereby supplemented or the due execution hereof by the Company or
for or in respect of the recitals and statements contained herein (other than
those contained in the sixth, seventh and eighth recital hereof), all of which
recitals and statements are made solely by the Company.

            SECTION 8. This Supplemental Indenture may be simultaneously
executed in several counterparts and all such counterparts executed and
delivered, each as an original, shall constitute but one and the same
instrument.

            SECTION 9. In the event the date of any notice required or permitted
hereunder shall not be a Business Day, then (notwithstanding any other provision
of the Indenture or of any supplemental indenture thereto) such notice need not
be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on the date fixed for

                                       13
<PAGE>

such notice. "Business Day" means, with respect to this Section 9, any day,
other than a Saturday or Sunday, on which banks generally are open in Chicago,
Illinois and New York, New York for the conduct of substantially all of their
commercial lending activities and on which interbank wire transfers can be made
on the Fedwire system.

            SECTION 10. This Supplemental Indenture and the Series 2004 Bonds
shall be governed by and deemed to be a contract under, and construed in
accordance with, the laws of the State of Michigan, and for all purposes shall
be construed in accordance with the laws of such state, except as may otherwise
be required by mandatory provisions of law.

            SECTION 11. Detailed Description of Property Mortgaged:

                                       I.

                      ELECTRIC GENERATING PLANTS AND DAMS.

            All the electric generating plants and stations of the Company,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture, including all power houses, buildings, reservoirs, dams, pipe
lines, flumes, structures and works, and the land on which the same are
situated, and all water rights, and all other lands and easements, rights of
way, permits, privileges, towers, poles, wires, machinery, equipment,
appliances, appurtenances and supplies, and all other property, real or
personal, forming a part of or appertaining to or used, occupied or enjoyed in
connection with such plants and stations or any of them, or adjacent thereto.

                                       II.

                          ELECTRIC TRANSMISSION LINES.

                  All the electric transmission lines of the Company,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture, including towers, poles, pole lines, wires, switches, switch
racks, switchboards, insulators and other appliances and equipment, and all
other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with such transmission lines or any of them or
adjacent thereto; together with all real property, rights of way, easements,
permits, privileges, franchises, grants and rights for or relating to the
construction, maintenance or operation thereof, through, over, under or upon any
private property or any public streets or highways, within as well as without
the corporate limits of any municipal corporation. Also all the real property,
rights of way, easements, permits, privileges and rights for, or relating to,
the construction, maintenance or operation of transmission lines, the land and
rights for which are owned by the Company, which are either not built or are now
being constructed.

                                       14
<PAGE>

                                      III.

                         ELECTRIC DISTRIBUTION SYSTEMS.

            All the electric distribution systems of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture,
including substations, transformers, switchboards, towers, poles, wires,
insulators, subways, trenches, conduits, manholes, cables, meters and other
appliances and equipment, and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with such
distribution systems or any of them or adjacent thereto; together with all real
property, rights of way, easements, permits, privileges, franchises, grants and
rights, for or relating to the construction, maintenance or operation thereof,
through, over, under or upon any private property or any public streets or
highways within as well as without the corporate limits of any municipal
corporation.

                                       IV.

               ELECTRIC SUBSTATIONS, SWITCHING STATIONS AND SITES.

            All the substations, switching stations and sites of the Company,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture, for transforming, regulating, converting or distributing or
otherwise controlling electric current at any of its plants and elsewhere,
together with all buildings, transformers, wires, insulators and other
appliances and equipment, and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with any
of such substations and switching stations, or adjacent thereto, with sites to
be used for such purposes.

                                       V.

                  GAS HOLDER STATIONS, GAS COMPRESSOR STATIONS,
                GAS PROCESSING PLANTS, DESULPHURIZATION STATIONS,
                METERING STATIONS, ODORIZING STATIONS, REGULATORS
                                   AND SITES.

            All the holder stations, compressor stations, processing plants,
desulphurization stations, metering stations, odorizing stations, regulators and
sites of the Company, constructed or otherwise acquired by it and not heretofore
described in the Indenture or any supplement thereto and not heretofore released
from the lien of the Indenture, for holding, compressing, processing,
desulphurizing, metering, odorizing and regulating manufactured or natural gas
at any of its plants and elsewhere, together with all buildings, holders, meters
and other appliances and equipment, and all other property, real or personal,
forming a part of or appertaining to or used, occupied or enjoyed in connection
with any of such stations or regulators or adjacent thereto, with sites to be
used for such purposes.

                                       15
<PAGE>

                                       VI.

                               GAS STORAGE FIELDS.

            The natural gas rights and interests of the Company, including wells
and well lines (but not including natural gas, oil and minerals), the gas
gathering system, the underground gas storage rights, the underground gas
storage wells and injection and withdrawal system used in connection therewith,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture: In the Overisel Gas Storage Field, located in the Township of
Overisel, Allegan County, and in the Township of Zeeland, Ottawa County,
Michigan; and in the Northville Gas Storage Field, located in the Township of
Salem, Washtenaw County, Township of Lyon, Oakland County, and the Townships of
Northville and Plymouth and City of Plymouth, Wayne County, Michigan; and in the
Salem Gas Storage Field, located in the Township of Salem, Allegan County, and
in the Township of Jamestown, Ottawa County, Michigan; and in the Ray Gas
Storage Field, located in the Townships of Ray and Armada, Macomb County,
Michigan; and in the Lenox Gas Storage Field, located in the Townships of Lenox
and Chesterfield, Macomb County, Michigan; and in the Ira Gas Storage Field,
located in the Township of Ira, St. Clair County, Michigan; and in the Puttygut
Gas Storage Field, located in the Township of Casco, St. Clair County, Michigan;
and in the Four Corners Gas Storage Field, located in the Townships of Casco,
China, Cottrellville and Ira, St. Clair County, Michigan; and in the Swan Creek
Gas Storage Field, located in the Townships of Casco and Ira, St. Clair County,
Michigan; and in the Hessen Gas Storage Field, located in the Townships of Casco
and Columbus, St. Clair County, Michigan.

                                      VII.

                             GAS TRANSMISSION LINES.

            All the gas transmission lines of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture,
including gas mains, pipes, pipe lines, gates, valves, meters and other
appliances and equipment, and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with such
transmission lines or any of them or adjacent thereto; together with all real
property, rights of way, easements, permits, privileges, franchises and rights
for or relating to the construction, maintenance or operation thereof, through,
over, under or upon any private property or any public streets or highways,
within as well as without the corporate limits of any municipal corporation.

                                      VIII.

                            GAS DISTRIBUTION SYSTEMS.

            All the gas distribution systems of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture,
including tunnels, conduits, gas mains and pipes, service pipes, fittings,
gates, valves, connections, meters and other appliances and equipment, and all

                                       16
<PAGE>

other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with such distribution systems or any of them
or adjacent thereto; together with all real property, rights of way, easements,
permits, privileges, franchises, grants and rights, for or relating to the
construction, maintenance or operation thereof, through, over, under or upon any
private property or any public streets or highways within as well as without the
corporate limits of any municipal corporation.

                                       IX.

               OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

            All office, garage, service and other buildings of the Company,
wherever located, in the State of Michigan, constructed or otherwise acquired by
it and not heretofore described in the Indenture or any supplement thereto and
not heretofore released from the lien of the Indenture, together with the land
on which the same are situated, and all easements, rights of way and
appurtenances to said lands, together with all furniture and fixtures located in
said buildings.

                                       X.

             TELEPHONE PROPERTIES AND RADIO COMMUNICATION EQUIPMENT.

            All telephone lines, switchboards, systems and equipment of the
Company, constructed or otherwise acquired by it and not heretofore described in
the Indenture or any supplement thereto and not heretofore released from the
lien of the Indenture, used or available for use In the operation of its
properties, and all other property, real or personal, forming a part of or
appertaining to or used, occupied or enjoyed in connection with such telephone
properties or any of them or adjacent thereto; together with all real estate,
rights of way, easements, permits, privileges, franchises, property, devices or
rights related to the dispatch, transmission, reception or reproduction of
messages, communication, intelligence, signals, light, vision or sound by
electricity, wire or otherwise, including all telephone equipment installed in
buildings used as general, divisional and regional offices, substations and
generating stations and all telephone lines erected on towers and poles; and all
ratio communication equipment of the Company, together with all property, real
or personal (except any in the Indenture expressly excepted), fixed stations,
towers, auxiliary radio buildings and equipment, and all appurtenances used in
connection therewith, wherever located, in the State of Michigan.

                                       XI.

                              OTHER REAL PROPERTY.

            All other real property of the Company and all interests therein, of
every nature and description (except any in the Indenture expressly excepted)
wherever located, in the State of Michigan, acquired by it and not heretofore
described in the Indenture or any supplement thereto and not heretofore released
from the lien of the Indenture. Such real property includes but is not limited
to the following described property, such property is subject to any interests
that were excepted or reserved in the conveyance to the Company:

                                       17
<PAGE>

                                  ALCONA COUNTY

      Certain land in Caledonia Township, Alcona County, Michigan described as:

            The East 330 feet of the South 660 feet of the SW 1/4 of the SW 1/4
      of Section 8, T28N, R8E, except the West 264 feet of the South 330 feet
      thereof; said land being more particularly described as follows: To find
      the place of beginning of this description, commence at the Southwest
      corner of said section, run thence East along the South line of said
      section 1243 feet to the place of beginning of this description, thence
      continuing East along said South line of said section 66 feet to the West
      1/8 line of said section, thence N 02 degrees 09' 30" E along the said
      West 1/8 line of said section 660 feet, thence West 330 feet, thence S 02
      degrees 09' 30" W, 330 feet, thence East 264 feet, thence S 02 degrees 09'
      30" W, 330 feet to the place of beginning.

                                 ALLEGAN COUNTY

      Certain land in Lee Township, Allegan County, Michigan described as:

            The NE 1/4 of the NW 1/4 of Section 16, T1N, R15W.

                                  ALPENA COUNTY

      Certain land in Wilson and Green Townships, Alpena County, Michigan
      described as:

            All that part of the S'ly 1/2 of the former Boyne City-Gaylord and
      Alpena Railroad right of way, being the Southerly 50 feet of a 100 foot
      strip of land formerly occupied by said Railroad, running from the East
      line of Section 31, T31N, R7E, Southwesterly across said Section 31 and
      Sections 5 and 6 of T30N, R7E and Sections 10, 11 and the E 1/2 of Section
      9, except the West 1646 feet thereof, all in T30N, R6E.

                                  ANTRIM COUNTY

      Certain land in Mancelona Township, Antrim County, Michigan described as:

            The S 1/2 of the NE 1/4 of Section 33, T29N, R6W, excepting
      therefrom all mineral, coal, oil and gas and such other rights as were
      reserved unto the State of Michigan in that certain deed running from the
      State of Michigan to August W. Schack and Emma H. Schack, his wife, dated
      April 15, 1946 and recorded May 20, 1946 in Liber 97 of Deeds on page 682
      of Antrim County Records.

                                       18
<PAGE>

                                  ARENAC COUNTY

      Certain land in Standish Township, Arenac County, Michigan described as:

            A parcel of land in the SW 1/4 of the NW 1/4 of Section 12, T18N,
      R4E, described as follows: To find the place of beginning of said parcel
      of land, commence at the Northwest corner of Section 12, T18N, R4E; run
      thence South along the West line of said section, said West line of said
      section being also the center line of East City Limits Road 2642.15 feet
      to the W 1/4 post of said section and the place of beginning of said
      parcel of land; running thence N 88 degrees 26' 00" E along the East and
      West 1/4 line of said section, 660.0 feet; thence North parallel with the
      West line of said section, 310.0 feet; thence S 88 degrees 26' 00" W,
      330.0 feet; thence South parallel with the West line of said section,
      260.0 feet; thence S 88 degrees 26' 00" W, 330.0 feet to the West line of
      said section and the center line of East City Limits Road; thence South
      along the said West line of said section, 50.0 feet to the place of
      beginning.

                                  BARRY COUNTY

      Certain land in Johnstown Township, Barry County, Michigan described as:

            A strip of land 311 feet in width across the SW 1/4 of the NE 1/4 of
      Section 31, T1N, R8W, described as follows: To find the place of beginning
      of this description, commence at the E -1/4 post of said section; run
      thence N 00 degrees 55' 00" E along the East line of said section, 555.84
      feet; thence N 59 degrees 36' 20" W, 1375.64 feet; thence N 88 degrees 30'
      00" W, 130 feet to a point on the East 1/8 line of said section and the
      place of beginning of this description; thence continuing N 88 degrees 30'
      00" W, 1327.46 feet to the North and South 1/4 line of said section;
      thence S 00 degrees 39'35" W along said North and South 1/4 line of said
      section, 311.03 feet to a point, which said point is 952.72 feet distant
      N'ly from the East and West 1/4 line of said section as measured along
      said North and South 1/4 line of said section; thence S 88 degrees 30' 00"
      E, 1326.76 feet to the East 1/8 line of said section; thence N 00 degrees
      47' 20" E along said East 1/8 line of said section, 311.02 feet to the
      place of beginning.

                                   BAY COUNTY

      Certain land in Frankenlust Township, Bay County, Michigan described as:

            The South 250 feet of the N 1/2 of the W 1/2 of the W 1/2 of the SE
      1/4 of Section 9, T13N, R4E.

                                       19
<PAGE>

                                  BENZIE COUNTY

      Certain land in Benzonia Township, Benzie County, Michigan described as:

            A parcel of land in the Northeast 1/4 of Section 7, Township 26
      North, Range 14 West, described as beginning at a point on the East line
      of said Section 7, said point being 320 feet North measured along the East
      line of said section from the East 1/4 post; running thence West 165 feet;
      thence North parallel with the East line of said section 165 feet; thence
      East 165 feet to the East line of said section; thence South 165 feet to
      the place of beginning.

                                  BRANCH COUNTY

      Certain land in Girard Township, Branch County, Michigan described as:

            A parcel of land in the NE 1/4 of Section 23 T5S, R6W, described as
      beginning at a point on the North and South quarter line of said section
      at a point 1278.27 feet distant South of the North quarter post of said
      section, said distance being measured along the North and South quarter
      line of said section, running thence S89 degrees21'E 250 feet, thence
      North along a line parallel with the said North and South quarter line of
      said section 200 feet, thence N89 degrees21'W 250 feet to the North and
      South quarter line of said section, thence South along said North and
      South quarter line of said section 200 feet to the place of beginning.

                                 CALHOUN COUNTY

      Certain land in Convis Township, Calhoun County, Michigan described as:

            A parcel of land in the SE 1/4 of the SE 1/4 of Section 32, T1S,
      R6W, described as follows: To find the place of beginning of this
      description, commence at the Southeast corner of said section; run thence
      North along the East line of said section 1034.32 feet to the place of
      beginning of this description; running thence N 89 degrees 39' 52" W,
      333.0 feet; thence North 290.0 feet to the South 1/8 line of said section;
      thence S 89 degrees 39' 52" E along said South 1/8 line of said section
      333.0 feet to the East line of said section; thence South along said East
      line of said section 290.0 feet to the place of beginning. (Bearings are
      based on the East line of Section 32, T1S, R6W, from the Southeast corner
      of said section to the Northeast corner of said section assumed as North.)

                                       20
<PAGE>

                                   CASS COUNTY

      Certain easement rights located across land in Marcellus Township, Cass
      County, Michigan described as:

            The East 6 rods of the SW 1/4 of the SE 1/4 of Section 4, T5S, R13W.

                                CHARLEVOIX COUNTY

      Certain land in South Arm Township, Charlevoix County, Michigan described
      as:

            A parcel of land in the SW 1/4 of Section 29, T32N, R7W, described
      as follows: Beginning at the Southwest corner of said section and running
      thence North along the West line of said section 788.25 feet to a point
      which is 528 feet distant South of the South 1/8 line of said section as
      measured along the said West line of said section; thence N 89 degrees 30'
      19" E, parallel with said South 1/8 line of said section 442.1 feet;
      thence South 788.15 feet to the South line of said section; thence S 89
      degrees 29' 30" W, along said South line of said section 442.1 feet to the
      place of beginning.

                                CHEBOYGAN COUNTY

      Certain land in Inverness Township, Cheboygan County, Michigan described
      as:

            A parcel of land in the SW frl 1/4 of Section 31, T37N, R2W,
      described as beginning at the Northwest corner of the SW frl 1/4, running
      thence East on the East and West quarter line of said Section, 40 rods,
      thence South parallel to the West line of said Section 40 rods, thence
      West 40 rods to the West line of said Section, thence North 40 rods to the
      place of beginning.

                                  CLARE COUNTY

      Certain land in Frost Township, Clare County, Michigan described as:

            The East 150 feet of the North 225 feet of the NW 1/4 of the NW 1/4
      of Section 15, T20N, R4W.

                                 CLINTON COUNTY

      Certain land in Watertown Township, Clinton County, Michigan described as:

            The NE 1/4 of the NE 1/4 of the SE 1/4 of Section 22, and the North
      165 feet of the NW 1/4 of the NE 1/4 of the SE 1/4 of Section 22, T5N,
      R3W.

                                       21
<PAGE>

                                 CRAWFORD COUNTY

      Certain land in Lovells Township, Crawford County, Michigan described as:

            A parcel of land in Section 1, T28N, R1W, described as: Commencing
      at NW corner said section; thence South 89 degrees 53'30" East along North
      section line 105.78 feet to point of beginning; thence South 89
      degrees53'30" East along North section line 649.64 feet; thence South 55
      degrees 42'30" East 340.24 feet; thence South 55 degrees 44' 37" East
      5,061.81 feet to the East section line; thence South 00 degrees 00' 08"
      West along East section line 441.59 feet; thence North 55 degrees 44' 37"
      West 5,310.48 feet; thence North 55 degrees 42'30" West 877.76 feet to
      point of beginning.

                                  EATON COUNTY

      Certain land in Eaton Township, Eaton County, Michigan described as:

            A parcel of land in the SW 1/4 of Section 6, T2N, R4W, described as
      follows: To find the place of beginning of this description commence at
      the Southwest corner of said section; run thence N 89 degrees 51' 30" E
      along the South line of said section 400 feet to the place of beginning of
      this description; thence continuing N 89 degrees 51' 30" E, 500 feet;
      thence N 00 degrees 50' 00" W, 600 feet; thence S 89 degrees 51' 30" W
      parallel with the South line of said section 500 feet; thence S 00 degrees
      50' 00" E, 600 feet to the place of beginning.

                                  EMMET COUNTY

      Certain land in Wawatam Township, Emmet County, Michigan described as:

            The West 1/2 of the Northeast 1/4 of the Northeast 1/4 of Section
      23, T39N, R4W.

                                 GENESEE COUNTY

      Certain land in Argentine Township, Genesee County, Michigan described as:

            A parcel of land of part of the SW 1/4 of Section 8, T5N, R5E, being
      more particularly described as follows:

            Beginning at a point of the West line of Duffield Road, 100 feet
      wide, (as now established) distant 829.46 feet measured N01 degrees42'56"W
      and 50 feet measured S88 degrees14'04"W from the South quarter corner,
      Section 8, T5N, R5E; thence S88 degrees14'04"W a distance of 550 feet;
      thence N01 degrees42'56"W a distance of 500 feet to a point on the North
      line of the South half of the Southwest quarter of said Section 8; thence
      N88 degrees14'04"E along the North line of South half

                                       22
<PAGE>
      of the Southwest quarter of said Section 8 a distance 550 feet to a point
      on the West line of Duffield Road, 100 feet wide (as now established);
      thence S01 degrees42'56"E along the West line of said Duffield Road a
      distance of 500 feet to the point of beginning.

                                 GLADWIN COUNTY

      Certain land in Secord Township, Gladwin County, Michigan described as:

            The East 400 feet of the South 450 feet of Section 2, T19N, R1E.

                              GRAND TRAVERSE COUNTY

      Certain land in Mayfield Township, Grand Traverse County, Michigan
      described as:

            A parcel of land in the Northwest 1/4 of Section 3, T25N, R11W,
      described as follows: Commencing at the Northwest corner of said section,
      running thence S 89 degrees19'15" E along the North line of said section
      and the center line of Clouss Road 225 feet, thence South 400 feet, thence
      N 89 degrees19'15" W 225 feet to the West line of said section and the
      center line of Hannah Road, thence North along the West line of said
      section and the center line of Hannah Road 400 feet to the place of
      beginning for this description.

                                 GRATIOT COUNTY

      Certain land in Fulton Township, Gratiot County, Michigan described as:

            A parcel of land in the NE 1/4 of Section 7, Township 9 North, Range
      3 West, described as beginning at a point on the North line of George
      Street in the Village of Middleton, which is 542 feet East of the North
      and South one-quarter (1/4) line of said Section 7; thence North 100 feet;
      thence East 100 feet; thence South 100 feet to the North line of George
      Street; thence West along the North line of George Street 100 feet to
      place of beginning.

                                HILLSDALE COUNTY

      Certain land in Litchfield Village, Hillsdale County, Michigan described
      as:

            Lot 238 of Assessors Plat of the Village of Litchfield.

                                  HURON COUNTY

      Certain easement rights located across land in Sebewaing Township, Huron
County, Michigan described as:

            The North 1/2 of the Northwest 1/4 of Section 15, T15N, R9E.

                                       23
<PAGE>

                                  INGHAM COUNTY

      Certain land in Vevay Township, Ingham County, Michigan described as:

            A parcel of land 660 feet wide in the Southwest 1/4 of Section 7
      lying South of the centerline of Sitts Road as extended to the North-South
      1/4 line of said Section 7, T2N, R1W, more particularly described as
      follows: Commence at the Southwest corner of said Section 7, thence North
      along the West line of said Section 2502.71 feet to the centerline of
      Sitts Road; thence South 89 degrees54'45" East along said centerline
      2282.38 feet to the place of beginning of this description; thence
      continuing South 89 degrees54'45" East along said centerline and said
      centerline extended 660.00 feet to the North-South 1/4 line of said
      section; thence South 00 degrees07'20" West 1461.71 feet; thence North 89
      degrees34'58" West 660.00 feet; thence North 00 degrees07'20" East 1457.91
      feet to the centerline of Sitts Road and the place of beginning.

                                  IONIA COUNTY

      Certain land in Sebewa Township, Ionia County, Michigan described as:

            A strip of land 280 feet wide across that part of the SW 1/4 of the
      NE 1/4 of Section 15, T5N, R6W, described as follows:

            To find the place of beginning of this description commence at the E
      1/4 corner of said section; run thence N 00 degrees 05' 38" W along the
      East line of said section, 1218.43 feet; thence S 67 degrees 18' 24" W,
      1424.45 feet to the East 1/8 line of said section and the place of
      beginning of this description; thence continuing S 67 degrees 18' 24" W,
      1426.28 feet to the North and South 1/4 line of said section at a point
      which said point is 105.82 feet distant N'ly of the center of said section
      as measured along said North and South 1/4 line of said section; thence N
      00 degrees 04' 47" E along said North and South 1/4 line of said section,
      303.67 feet; thence N 67 degrees 18' 24" E, 1425.78 feet to the East 1/8
      line of said section; thence S 00 degrees 00' 26" E along said East 1/8
      line of said section, 303.48 feet to the place of beginning. (Bearings are
      based on the East line of Section 15, T5N, R6W, from the E 1/4 corner of
      said section to the Northeast corner of said section assumed as N 00
      degrees 05' 38" W.)

                                  IOSCO COUNTY

      Certain land in Alabaster Township, Iosco County, Michigan described as:

            A parcel of land in the NW 1/4 of Section 34, T21N, R7E, described
      as follows: To find the place of beginning of this description commence at
      the N 1/4 post of said section; run thence South along the North and South
      1/4 line of said section, 1354.40 feet to the place of

                                       24
<PAGE>

      beginning of this description; thence continuing South along the said
      North and South 1/4 line of said section, 165.00 feet to a point on the
      said North and South 1/4 line of said section which said point is 1089.00
      feet distant North of the center of said section; thence West 440.00 feet;
      thence North 165.00 feet; thence East 440.00 feet to the said North and
      South 1/4 line of said section and the place of beginning.

                                 ISABELLA COUNTY

      Certain land in Chippewa Township, Isabella County, Michigan described as:

            The North 8 rods of the NE 1/4 of the SE 1/4 of Section 29, T14N,
      R3W.

                                 JACKSON COUNTY

      Certain land in Waterloo Township, Jackson County, Michigan described as:

            A parcel of land in the North fractional part of the N fractional
      1/2 of Section 2, T1S, R2E, described as follows: To find the place of
      beginning of this description commence at the E 1/4 post of said section;
      run thence N 01 degrees 03' 40" E along the East line of said section
      1335.45 feet to the North 1/8 line of said section and the place of
      beginning of this description; thence N 89 degrees 32' 00" W, 2677.7 feet
      to the North and South 1/4 line of said section; thence S 00 degrees 59'
      25" W along the North and South 1/4 line of said section 22.38 feet to the
      North 1/8 line of said section; thence S 89 degrees 59' 10" W along the
      North 1/8 line of said section 2339.4 feet to the center line of State
      Trunkline Highway M-52; thence N 53 degrees 46' 00" W along the center
      line of said State Trunkline Highway 414.22 feet to the West line of said
      section; thence N 00 degrees 55' 10" E along the West line of said section
      74.35 feet; thence S 89 degrees 32' 00" E, 5356.02 feet to the East line
      of said section; thence S 01 degrees 03' 40" W along the East line of said
      section 250 feet to the place of beginning.

                                KALAMAZOO COUNTY

      Certain land in Alamo Township, Kalamazoo County, Michigan described as:

            The South 350 feet of the NW 1/4 of the NW 1/4 of Section 16, T1S,
      R12W, being more particularly described as follows: To find the place of
      beginning of this description, commence at the Northwest corner of said
      section; run thence S 00 degrees 36' 55" W along the West line of said
      section 971.02 feet to the place of beginning of this description; thence
      continuing S 00 degrees 36' 55" W along said West line of said section
      350.18 feet to the North 1/8 line of said section; thence S 87 degrees 33'
      40" E along the said North 1/8 line of said section 1325.1 feet to the
      West 1/8 line of said section; thence N 00 degrees 38' 25" E along

                                       25
<PAGE>

      the said West 1/8 line of said section 350.17 feet; thence N 87 degrees
      33' 40" W, 1325.25 feet to the place of beginning.

                                 KALKASKA COUNTY

      Certain land in Kalkaska Township, Kalkaska County, Michigan described as:

            The NW 1/4 of the SW 1/4 of Section 4, T27N, R7W, excepting
      therefrom all mineral, coal, oil and gas and such other rights as were
      reserved unto the State of Michigan in that certain deed running from the
      Department of Conservation for the State of Michigan to George Welker and
      Mary Welker, his wife, dated October 9, 1934 and recorded December 28,
      1934 in Liber 39 on page 291 of Kalkaska County Records, and subject to
      easement for pipeline purposes as granted to Michigan Consolidated Gas
      Company by first party herein on April 4, 1963 and recorded June 21, 1963
      in Liber 91 on page 631 of Kalkaska County Records.

                                   KENT COUNTY

      Certain land in Caledonia Township, Kent County, Michigan described as:

            A parcel of land in the Northwest fractional 1/4 of Section 15, T5N,
      R10W, described as follows: To find the place of beginning of this
      description commence at the North 1/4 corner of said section, run thence S
      0 degrees 59' 26" E along the North and South 1/4 line of said section
      2046.25 feet to the place of beginning of this description, thence
      continuing S 0 degrees 59' 26" E along said North and South 1/4 line of
      said section 332.88 feet, thence S 88 degrees 58' 30" W 2510.90 feet to a
      point herein designated "Point A" on the East bank of the Thornapple
      River, thence continuing S 88 degrees 53' 30" W to the center thread of
      the Thornapple River, thence NW'ly along the center thread of said
      Thornapple River to a point which said point is S 88 degrees 58' 30" W of
      a point on the East bank of the Thornapple River herein designated "Point
      B", said "Point B" being N 23 degrees 41' 35" W 360.75 feet from said
      above-described "Point A", thence N 88 degrees 58' 30" E to said "Point
      B", thence continuing N 88 degrees 58' 30" E 2650.13 feet to the place of
      beginning. (Bearings are based on the East line of Section 15, T5N, R10W
      between the East 1/4 corner of said section and the Northeast corner of
      said section assumed as N 0 degrees 59' 55" W.)

                                   LAKE COUNTY

      Certain land in Pinora and Cherry Valley Townships, Lake County, Michigan
      described as:

            A strip of land 50 feet wide East and West along and adjoining the
      West line of highway on the East side of the North 1/2 of Section 13

                                       26
<PAGE>

      T18N, R12W. Also a strip of land 100 feet wide East and West along and
      adjoining the East line of the highway on the West side of following
      described land: The South 1/2 of NW 1/4, and the South 1/2 of the NW 1/4
      of the SW 1/4, all in Section 6, T18N, R11W.

                                  LAPEER COUNTY

      Certain land in Hadley Township, Lapeer County, Michigan described as:

            The South 825 feet of the W 1/2 of the SW 1/4 of Section 24, T6N,
      R9E, except the West 1064 feet thereof.

                                 LEELANAU COUNTY

      Certain land in Cleveland Township, Leelanau County, Michigan described
      as:

            The North 200 feet of the West 180 feet of the SW 1/4 of the SE 1/4
      of Section 35, T29N, R13W.

                                 LENAWEE COUNTY

      Certain land in Madison Township, Lenawee County, Michigan described as:

            A strip of land 165 feet wide off the West side of the following
      described premises: The E 1/2 of the SE 1/4 of Section 12. The E 1/2 of
      the NE 1/4 and the NE 1/4 of the SE 1/4 of Section 13, being all in T7S,
      R3E, excepting therefrom a parcel of land in the E 1/2 of the SE 1/4 of
      Section 12, T7S, R3E, beginning at the Northwest corner of said E 1/2 of
      the SE 1/4 of Section 12, running thence East 4 rods, thence South 6 rods,
      thence West 4 rods, thence North 6 rods to the place of beginning.

                                LIVINGSTON COUNTY

      Certain land in Cohoctah Township, Livingston County, Michigan described
as:

            Parcel 1

            The East 390 feet of the East 50 rods of the SW 1/4 of Section 30,
      T4N, R4E.

            Parcel 2

            A parcel of land in the NW 1/4 of Section 31, T4N, R4E, described as
      follows: To find the place of beginning of this description commence at
      the N 1/4 post of said section; run thence N 89 degrees 13' 06" W along
      the North line of said section, 330 feet to the place of beginning of this
      description; running thence S 00 degrees 52' 49" W, 2167.87 feet; thence N
      88 degrees 59' 49" W, 60 feet; thence N 00 degrees 52' 49" E,

                                       27
<PAGE>

      2167.66 feet to the North line of said section; thence S 89 degrees 13'
      06" E along said North line of said section, 60 feet to the place of
      beginning.

                                  MACOMB COUNTY

      Certain land in Macomb Township, Macomb County, Michigan described as:

            A parcel of land commencing on the West line of the E 1/2 of the NW
      1/4 of fractional Section 6, 20 chains South of the NW corner of said E
      1/2 of the NW 1/4 of Section 6; thence South on said West line and the
      East line of A. Henry Kotner's Hayes Road Subdivision #15, according to
      the recorded plat thereof, as recorded in Liber 24 of Plats, on page 7,
      24.36 chains to the East and West 1/4 line of said Section 6; thence East
      on said East and West 1/4 line 8.93 chains; thence North parallel with the
      said West line of the E 1/2 of the NW 1/4 of Section 6, 24.36 chains;
      thence West 8.93 chains to the place of beginning, all in T3N, R13E.

                                 MANISTEE COUNTY

      Certain land in Manistee Township, Manistee County, Michigan described as:

            A parcel of land in the SW 1/4 of Section 20, T22N, R16W, described
      as follows: To find the place of beginning of this description, commence
      at the Southwest corner of said section; run thence East along the South
      line of said section 832.2 feet to the place of beginning of this
      description; thence continuing East along said South line of said section
      132 feet; thence North 198 feet; thence West 132 feet; thence South 198
      feet to the place of beginning, excepting therefrom the South 2 rods
      thereof which was conveyed to Manistee Township for highway purposes by a
      Quitclaim Deed dated June 13, 1919 and recorded July 11, 1919 in Liber 88
      of Deeds on page 638 of Manistee County Records.

                                  MASON COUNTY

      Certain land in Riverton Township, Mason County, Michigan described as:

            Parcel 1

            The South 10 acres of the West 20 acres of the S 1/2 of the NE 1/4
      of Section 22, T17N, R17W.

            Parcel 2

            A parcel of land containing 4 acres of the West side of highway,
      said parcel of land being described as commencing 16 rods South of the
      Northwest corner of the NW 1/4 of the SW -1/4 of Section 22, T17N, R17W,
      running thence South 64 rods, thence NE'ly and N'ly and NW'ly along the
      W'ly line of said highway to the place of beginning, together

                                       28
<PAGE>

      with any and all right, title, and interest of Howard C. Wicklund and
      Katherine E. Wicklund in and to that portion of the hereinbefore mentioned
      highway lying adjacent to the E'ly line of said above described land.

                                 MECOSTA COUNTY

      Certain land in Wheatland Township, Mecosta County, Michigan described as:

            A parcel of land in the SW 1/4 of the SW 1/4 of Section 16, T14N,
      R7W, described as beginning at the Southwest corner of said section;
      thence East along the South line of Section 133 feet; thence North
      parallel to the West section line 133 feet; thence West 133 feet to the
      West line of said Section; thence South 133 feet to the place of
      beginning.

                                 MIDLAND COUNTY

      Certain land in Ingersoll Township, Midland County, Michigan described as:

            The West 200 feet of the W 1/2 of the NE 1/4 of Section 4, T13N,
      R2E.

                                MISSAUKEE COUNTY

      Certain land in Norwich Township, Missaukee County, Michigan described as:

            A parcel of land in the NW 1/4 of the NW 1/4 of Section 16, T24N,
      R6W, described as follows: Commencing at the Northwest corner of said
      section, running thence N 89 degrees 01' 45" E along the North line of
      said section 233.00 feet; thence South 233.00 feet; thence S 89 degrees
      01' 45" W, 233.00 feet to the West line of said section; thence North
      along said West line of said section 233.00 feet to the place of
      beginning. (Bearings are based on the West line of Section 16, T24N, R6W,
      between the Southwest and Northwest corners of said section assumed as
      North.)

                                  MONROE COUNTY

      Certain land in Whiteford Township, Monroe County, Michigan described as:

            A parcel of land in the SW1/4 of Section 20, T8S, R6E, described as
      follows: To find the place of beginning of this description commence at
      the S 1/4 post of said section; run thence West along the South line of
      said section 1269.89 feet to the place of beginning of this description;
      thence continuing West along said South line of said section 100 feet;
      thence N 00 degrees 50' 35" E, 250 feet; thence East 100 feet; thence S 00
      degrees 50' 35" W parallel with and 16.5 feet distant W'ly of as

                                       29
<PAGE>

      measured perpendicular to the West 1/8 line of said section, as occupied,
      a distance of 250 feet to the place of beginning.

                                 MONTCALM COUNTY

      Certain land in Crystal Township, Montcalm County, Michigan described as:

            The N 1/2 of the S 1/2 of the SE 1/4 of Section 35, T10N, R5W.

                               MONTMORENCY COUNTY

      Certain land in the Village of Hillman, Montmorency County, Michigan
      described as:

            Lot 14 of Hillman Industrial Park, being a subdivision in the South
      1/2 of the Northwest 1/4 of Section 24, T31N, R4E, according to the plat
      thereof recorded in Liber 4 of Plats on Pages 32-34, Montmorency County
      Records.

                                 MUSKEGON COUNTY

      Certain land in Casnovia Township, Muskegon County, Michigan described as:

            The West 433 feet of the North 180 feet of the South 425 feet of the
      SW 1/4 of Section 3, T10N, R13W.

                                 NEWAYGO COUNTY

      Certain land in Ashland Township, Newaygo County, Michigan described as:

            The West 250 feet of the NE 1/4 of Section 23, T11N, R13W.

                                 OAKLAND COUNTY

      Certain land in Wixcom City, Oakland County, Michigan described as:

            The E 75 feet of the N 160 feet of the N 330 feet of the W 526.84
      feet of the NW 1/4 of the NW 1/4 of Section 8, T1N, R8E, more particularly
      described as follows: Commence at the NW corner of said Section 8, thence
      N 87 degrees 14' 29" E along the North line of said Section 8 a distance
      of 451.84 feet to the place of beginning for this description; thence
      continuing N 87 degrees 14' 29" E along said North section line a distance
      of 75.0 feet to the East line of the West 526.84 feet of the NW 1/4 of the
      NW 1/4 of said Section 8; thence S 02 degrees 37' 09" E along said East
      line a distance of 160.0 feet; thence S 87 degrees 14' 29" W a distance of
      75.0 feet; thence N 02 degrees 37' 09" W a distance of 160.0 feet to the
      place of beginning.

                                       30
<PAGE>

                                  OCEANA COUNTY

      Certain land in Crystal Township, Oceana County, Michigan described as:

            The East 290 feet of the SE 1/4 of the NW 1/4 and the East 290 feet
      of the NE 1/4 of the SW 1/4, all in Section 20, T16N, R16W.

                                  OGEMAW COUNTY

      Certain land in West Branch Township, Ogemaw County, Michigan described
      as:

            The South 660 feet of the East 660 feet of the NE 1/4 of the NE 1/4
      of Section 33, T22N, R2E.

                                 OSCEOLA COUNTY

      Certain land in Hersey Township, Osceola County, Michigan described as:

            A parcel of land in the North 1/2 of the Northeast 1/4 of Section
      13, T17N, R9W, described as commencing at the Northeast corner of said
      Section; thence West along the North Section line 999 feet to the point of
      beginning of this description; thence S 01 degrees 54' 20" E 1327.12 feet
      to the North 1/8 line; thence S 89 degrees 17' 05" W along the North 1/8
      line 330.89 feet; thence N 01 degrees 54' 20" W 1331.26 feet to the North
      Section line; thence East along the North Section line 331 feet to the
      point of beginning.

                                  OSCODA COUNTY

      Certain land in Comins Township, Oscoda County, Michigan described as:

            The East 400 feet of the South 580 feet of the W 1/2 of the SW 1/4
      of Section 15, T27N, R3E.

                                  OTSEGO COUNTY

      Certain land in Corwith Township, Otsego County, Michigan described as:

            Part of the NW 1/4 of the NE 1/4 of Section 28, T32N, R3W, described
      as: Beginning at the N 1/4 corner of said section; running thence S 89
      degrees 04' 06" E along the North line of said section, 330.00 feet;
      thence S 00 degrees 28' 43" E, 400.00 feet; thence N 89 degrees 04' 06" W,
      330.00 feet to the North and South 1/4 line of said section; thence N 00
      degrees 28' 43" W along the said North and South 1/4 line of said section,
      400.00 feet to the point of beginning; subject to the use of the N'ly
      33.00 feet thereof for highway purposes.

                                       31
<PAGE>

                                  OTTAWA COUNTY

      Certain land in Robinson Township, Ottawa County, Michigan described as:

            The North 660 feet of the West 660 feet of the NE 1/4 of the NW 1/4
      of Section 26, T7N, R15W.

                               PRESQUE ISLE COUNTY

      Certain land in Belknap and Pulawski Townships, Presque Isle County,
      Michigan described as:

            Part of the South half of the Northeast quarter, Section 24, T34N,
      R5E, and part of the Northwest quarter, Section 19, T34N, R6E, more fully
      described as: Commencing at the East -1/4 corner of said Section 24;
      thence N 00 degrees15'47" E, 507.42 feet, along the East line of said
      Section 24 to the point of beginning; thence S 88 degrees15'36" W, 400.00
      feet, parallel with the North 1/8 line of said Section 24; thence N 00
      degrees15'47" E, 800.00 feet, parallel with said East line of Section 24;
      thence N 88 degrees15'36"E, 800.00 feet, along said North 1/8 line of
      Section 24 and said line extended; thence S 00 degrees15'47" W, 800.00
      feet, parallel with said East line of Section 24; thence S 88
      degrees15'36" W, 400.00 feet, parallel with said North 1/8 line of Section
      24 to the point of beginning.

            Together with a 33 foot easement along the West 33 feet of the
      Northwest quarter lying North of the North 1/8 line of Section 24, Belknap
      Township, extended, in Section 19, T34N, R6E.

                                ROSCOMMON COUNTY

      Certain land in Gerrish Township, Roscommon County, Michigan described as:

            A parcel of land in the NW 1/4 of Section 19, T24N, R3W, described
      as follows: To find the place of beginning of this description commence at
      the Northwest corner of said section, run thence East along the North line
      of said section 1,163.2 feet to the place of beginning of this description
      (said point also being the place of intersection of the West 1/8 line of
      said section with the North line of said section), thence S 01 degrees 01'
      E along said West 1/8 line 132 feet, thence West parallel with the North
      line of said section 132 feet, thence N 01 degrees 01' W parallel with
      said West 1/8 line of said section 132 feet to the North line of said
      section, thence East along the North line of said section 132 feet to the
      place of beginning.

                                       32
<PAGE>

                                 SAGINAW COUNTY

      Certain land in Chapin Township, Saginaw County, Michigan described as:

            A parcel of land in the SW 1/4 of Section 13, T9N, R1E, described as
      follows: To find the place of beginning of this description commence at
      the Southwest corner of said section; run thence North along the West line
      of said section 1581.4 feet to the place of beginning of this description;
      thence continuing North along said West line of said section 230 feet to
      the center line of a creek; thence S 70 degrees 07' 00" E along said
      center line of said creek 196.78 feet; thence South 163.13 feet; thence
      West 185 feet to the West line of said section and the place of beginning.

                                 SANILAC COUNTY

      Certain easement rights located across land in Minden Township, Sanilac
County, Michigan described as:

            The Southeast 1/4 of the Southeast 1/4 of Section 1, T14N, R14E,
      excepting therefrom the South 83 feet of the East 83 feet thereof.

                                SHIAWASSEE COUNTY

      Certain land in Burns Township, Shiawassee County, Michigan described as:

            The South 330 feet of the E 1/2 of the NE 1/4 of Section 36, T5N,
      R4E.

                                ST. CLAIR COUNTY

      Certain land in Ira Township, St. Clair County, Michigan described as:

            The N 1/2 of the NW 1/4 of the NE 1/4 of Section 6, T3N, R15E.

                                ST. JOSEPH COUNTY

      Certain land in Mendon Township, St. Joseph County, Michigan described as:

            The North 660 feet of the West 660 feet of the NW 1/4 of SW 1/4,
      Section 35, T5S, R10W.

                                 TUSCOLA COUNTY

      Certain land in Millington Township, Tuscola County, Michigan described
as:

            A strip of land 280 feet wide across the East 96 rods of the South
      20 rods of the N 1/2 of the SE 1/4 of Section 34, T10N, R8E, more
      particularly described as commencing at the Northeast corner of Section 3,
      T9N, R8E, thence S 89 degrees 55' 35" W along the South line of said

                                       33
<PAGE>

      Section 34 a distance of 329.65 feet, thence N 18 degrees 11' 50" W a
      distance of 1398.67 feet to the South 1/8 line of said Section 34 and the
      place of beginning for this description; thence continuing N 18 degrees
      11' 50" W a distance of 349.91 feet; thence N 89 degrees 57' 01" W a
      distance of 294.80 feet; thence S 18 degrees 11' 50" E a distance of
      350.04 feet to the South 1/8 line of said Section 34; thence S 89 degrees
      58' 29" E along the South 1/8 line of said section a distance of 294.76
      feet to the place of beginning.

                                VAN BUREN COUNTY

      Certain land in Covert Township, Van Buren County, Michigan described as:

            All that part of the West 20 acres of the N 1/2 of the NE fractional
      1/4 of Section 1, T2S, R17W, except the West 17 rods of the North 80 rods,
      being more particularly described as follows: To find the place of
      beginning of this description commence at the N 1/4 post of said section;
      run thence N 89 degrees 29' 20" E along the North line of said section
      280.5 feet to the place of beginning of this description; thence
      continuing N 89 degrees 29' 20" E along said North line of said section
      288.29 feet; thence S 00 degrees 44' 00" E, 1531.92 feet; thence S 89
      degrees 33' 30" W, 568.79 feet to the North and South 1/4 line of said
      section; thence N 00 degrees 44' 00" W along said North and South 1/4 line
      of said section 211.4 feet; thence N 89 degrees 29' 20" E, 280.5 feet;
      thence N 00 degrees 44' 00" W, 1320 feet to the North line of said section
      and the place of beginning.

                                WASHTENAW COUNTY

      Certain land in Manchester Township, Washtenaw County, Michigan described
      as:

            A parcel of land in the NE 1/4 of the NW 1/4 of Section 1, T4S, R3E,
      described as follows: To find the place of beginning of this description
      commence at the Northwest corner of said section; run thence East along
      the North line of said section 1355.07 feet to the West 1/8 line of said
      section; thence S 00 degrees 22' 20" E along said West 1/8 line of said
      section 927.66 feet to the place of beginning of this description; thence
      continuing S 00 degrees 22' 20" E along said West 1/8 line of said section
      660 feet to the North 1/8 line of said section; thence N 86 degrees 36'
      57" E along said North 1/8 line of said section 660.91 feet; thence N 00
      degrees 22' 20" W, 660 feet; thence S 86 degrees 36' 57" W, 660.91 feet to
      the place of beginning.

                                       34
<PAGE>

                                  WAYNE COUNTY

      Certain land in Livonia City, Wayne County, Michigan described as:

            Commencing at the Southeast corner of Section 6, T1S, R9E; thence
      North along the East line of Section 6 a distance of 253 feet to the point
      of beginning; thence continuing North along the East line of Section 6 a
      distance of 50 feet; thence Westerly parallel to the South line of Section
      6, a distance of 215 feet; thence Southerly parallel to the East line of
      Section 6 a distance of 50 feet; thence easterly parallel with the South
      line of Section 6 a distance of 215 feet to the point of beginning.

                                 WEXFORD COUNTY

      Certain land in Selma Township, Wexford County, Michigan described as:

            A parcel of land in the NW 1/4 of Section 7, T22N, R10W, described
      as beginning on the North line of said section at a point 200 feet East of
      the West line of said section, running thence East along said North
      section line 450 feet, thence South parallel with said West section line
      350 feet, thence West parallel with said North section line 450 feet,
      thence North parallel with said West section line 350 feet to the place of
      beginning.

            SECTION 12. The Company is a transmitting utility under Section
9501(2) of the Michigan Uniform Commercial Code (M.C.L. 440.9501(2)) as defined
in M.C.L. 440.9102(1)(aaa).

            IN WITNESS WHEREOF, said Consumers Energy Company has caused this
Supplemental Indenture to be executed in its corporate name by its Chairman of
the Board, President, a Vice President or its Treasurer and its corporate seal
to be hereunto affixed and to be attested by its Secretary or an Assistant
Secretary, and said JPMorgan Chase Bank, as Trustee as aforesaid, to evidence
its acceptance hereof, has caused this Supplemental Indenture to be executed in
its corporate name by a Vice President and its corporate seal to be hereunto
affixed and to be attested by a Trust Officer, in several counterparts, all as
of the day and year first above written.

                                       35
<PAGE>

                                          CONSUMERS ENERGY COMPANY

(SEAL)                                    By    /s/ Laura L.Mountcastle
                                               -----------------------------
                                          Name   Laura L. Mountcastle
                                          Title  Vice President

Attest:

/s/ Joyce H. Norkey
-------------------
Joyce H. Norkey
Assistant Secretary

Signed, sealed and delivered
by CONSUMERS ENERGY COMPANY
in the presence of

/s/ Kimberly C. Wilson
----------------------
Kimberly C. Wilson

/s/ Sammie B. Dalton
--------------------
Sammie B. Dalton

STATE OF MICHIGAN    )
                      ss.
COUNTY OF JACKSON    )

            The foregoing instrument was acknowledged before me this 22nd day of
September, 2004, by Laura L. Mountcastle, Vice President of CONSUMERS ENERGY
COMPANY, a Michigan corporation, on behalf of the corporation.

                                          /s/ Margaret Hillman
                                          -------------------------------
                                          Margaret Hillman, Notary Public
[SEAL]                                    State of Michigan, County of Jackson
                                          My Commission Expires: June 14, 2010
                                          Acting in the County of Jackson

                                      S-1
<PAGE>
                                                                               2

                                          JPMORGAN CHASE BANK, AS TRUSTEE

(SEAL)                                    By /s/ L. O'Brien
                                             ----------------------------
                                             L. O'Brien
Attest:                                      Vice President

/s/ Rosa Ciaccia
------------------
Rosa Ciaccia
Trust Officer

Signed, sealed and delivered
by JPMORGAN CHASE BANK
in the presence of

/s/ Nicholas Sberlati
-----------------------
Nicholas Sberlati
Trust Officer

/s/ Virginia Dominguez
----------------------
Virginia Dominguez
Trust Officer

STATE OF NEW YORK    )
                      ss.
COUNTY OF NEW YORK   )

            The foregoing instrument was acknowledged before me this 22nd day of
September, 2004, by L. O'Brien, a Vice President of JPMORGAN CHASE BANK, a New
York corporation, on behalf of the corporation, as trustee.

                                          /s/ Emily Fayan
                                          ---------------
                                          EMILY FAYAN
                                          Notary Public, State of New York
[Seal]                                    No. 01FA4737006
                                          Qualified in Kings County
                                          Certificate Filed in New York County
                                          Commission Expires Dec. 31, 2005

Prepared by:                              When recorded, return to:
Kimberly C. Wilson                        Consumers Energy Company
One Energy Plaza                          Business Services Real Estate Dept.
Jackson, MI  49201                        Attn:  Nancy Fisher EP7-439
                                          One Energy Plaza
                                          Jackson, MI  49201

                                      S-2<PAGE>
                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                          COMMON EQUITY TRUST AGREEMENT

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      PAGE
<S>                                                                                                   <C>
ARTICLE I                 ESTABLISHMENT AND PURPOSE OF THE TRUST...................................     3

           1.1       Purpose of the Trust..........................................................     3

           1.2       Transfer of Property to Trustee...............................................     3

           1.3       Relationship to the Plan......................................................     3

           1.4       Title to  Trust Assets........................................................     3

           1.5       Rights of Holders of Common Equity Trust Interests............................     4

           1.6       Ownership and Control of Trust Fund...........................................     5

           1.7       Funding of the Trust..........................................................     5

ARTICLE II                COMMON EQUITY TRUST INTERESTS............................................     5

           2.1       Identification of Holders of Common Equity Trust Interests....................     5

           2.2       Conflicting Claims to Beneficial Interests....................................     5

           2.3       Non-Transferability of Common Equity Trust Interests..........................     6

ARTICLE III               AUTHORITY, LIMITATIONS, DISTRIBUTIONS AND DUTIES.........................     6

           3.1       (a) Periodic Distribution; Withholding........................................     6

           3.2       Reporting Duties of the Trustee...............................................     7

           3.3       Termination of Trust..........................................................     7

           3.4       Continuance of Trust for Winding Up...........................................     8

           3.5       General Powers of the Trustee.................................................     8

           3.6       Limitation of Trustee's Authority.............................................    10

           3.7       Books and Records.............................................................    10

           3.8       Additional Powers.............................................................    11

           3.9       Compliance with Laws..........................................................    11

           3.10      Voting of Shares..............................................................    11

ARTICLE IV                THE TRUSTEE..............................................................    11

           4.1       Generally.....................................................................    11

           4.2       Liability of Trustee and Indemnification......................................    11

           4.3       Reliance by Trustee...........................................................    13

           4.4       Investment Powers.............................................................    13

           4.5       Requirement of Adequate Resources.............................................    13
</TABLE>

<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                      PAGE
<S>                                                                                                   <C>
           4.6       Expense Reimbursement and Compensation........................................    13

           4.7       No Bond.......................................................................    14

ARTICLE V                 SUCCESSOR TRUSTEE........................................................    14

           5.1       Removal.......................................................................    14

           5.2       Resignation...................................................................    14

           5.3       Simultaneous Removal and Resignation..........................................    14

           5.4       Appointment of Successor Trustee..............................................    14

ARTICLE VI                REPORTS TO BENEFICIARIES.................................................    15

           6.1       Reports.......................................................................    15

ARTICLE VII               AMENDMENT AND WAIVER.....................................................    15

           7.1       Amendment and Waiver..........................................................    15

ARTICLE VIII              MISCELLANEOUS PROVISIONS.................................................    15

           8.1       Intention of Parties to Establish Trust.......................................    15

           8.2       Laws as to Construction/Jurisdiction..........................................    15

           8.3       Severability..................................................................    16

           8.4       Notices.......................................................................    16

           8.5       Fiscal Year...................................................................    16

           8.6       Prevailing Party..............................................................    17

           8.7       Counterparts..................................................................    17

           8.8       Entire Agreement..............................................................    17

           8.9       Confidentiality...............................................................    17

           8.10      Headings......................................................................    18
</TABLE>

                                       ii
<PAGE>

                          COMMON EQUITY TRUST AGREEMENT

            This Trust Agreement (the "Trust Agreement"), dated as of November
16, 2004, by and among Enron Corp. ("Enron"), Enron Metals & Commodity Corp.,
Enron North America Corp., Enron Power Marketing, Inc., PBOG Corp., Smith Street
Land Company, Enron Broadband Services, Inc., Enron Energy Services Operations,
Inc., Enron Energy Marketing Corp., Enron Energy Services, Inc., Enron Energy
Services, LLC, Enron Transportation Services, LLC, BAM Lease Company, ENA Asset
Holdings L.P., Enron Gas Liquids, Inc., Enron Global Markets LLC, Enron Net
Works LLC, Enron Industrial Markets LLC, Operational Energy Corp., Enron
Engineering & Construction Company, Enron Engineering & Operational Services
Company, Garden State Paper Company, LLC, Palm Beach Development Company,
L.L.C., Tenant Services, Inc., Enron Energy Information Solutions, Inc., EESO
Merchant Investments, Inc., Enron Federal Solutions, Inc., Enron Freight Markets
Corp., Enron Broadband Services, L.P., Enron Energy Services North America,
Inc., Enron LNG Marketing LLC, Calypso Pipeline, LLC, Enron Global LNG LLC,
Enron International Fuel Management Company, Enron Natural Gas Marketing Corp.,
ENA Upstream Company LLC, Enron Liquid Fuels, Inc., Enron LNG Shipping Company,
Enron Property & Services Corp., Enron Capital & Trade Resources International
Corp., Enron Communications Leasing Corp., Enron Wind Corp., Enron Wind Systems,
Inc., Enron Wind Energy Systems Corp., Enron Wind Maintenance Corp., Enron Wind
Constructors Corp., EREC Subsidiary I, LLC, EREC Subsidiary II, LLC, EREC
Subsidiary III, LLC, EREC Subsidiary IV, LLC, EREC Subsidiary V, LLC, Intratex
Gas Company, Enron Processing Properties, Inc., Enron Methanol Company, Enron
Ventures Corp., The New Energy Trading Company, EES Service Holdings, Inc.,
Enron Wind Development LLC, ZWHC LLC, Zond Pacific, LLC, Enron Reserve
Acquisition Corp., EPC Estates Services, Inc., f/k/a National Energy Production
Corporation, Enron Power & Industrial Construction Company, NEPCO Power
Procurement Company, NEPCO Services International, Inc., Caribe Verde (SJG)
Inc., f/k/a San Juan Gas Company, Inc., EBF LLC, Zond Minnesota Construction
Company LLC, Enron Fuels International, Inc., E Power Holdings Corp., EFS
Construction Management Services, Inc., Enron Management, Inc., Enron Expat
Services, Inc., Artemis Associates, LLC, Clinton Energy Management Services,
Inc., LINGTEC Constructors L.P., EGS New Ventures Corp., Louisiana Gas Marketing
Company, Louisiana Resources Company, LGMI, Inc., LRCI, Inc., Enron
Communications Group, Inc., EnRock Management, LLC, ECI-Texas, L.P., EnRock,
L.P., ECI-Nevada Corp., Enron Alligator Alley Pipeline Company, Enron Wind Storm
Lake I LLC, ECT Merchant Investments Corp., EnronOnLine, LLC, St. Charles
Development Company, L.L.C., Calcasieu Development Company, L.L.C., Calvert City
Power I, L.L.C., Enron ACS, Inc., LOA, Inc., Enron India LLC, Enron
International Inc., Enron International Holdings Corp., Enron Middle East LLC,
Enron WarpSpeed Services, Inc., Modulus Technologies, Inc., Enron
Telecommunications, Inc., DataSystems Group, Inc. Risk Management & Trading
Corp., Omicron Enterprises, Inc., EFS I, Inc., EFS II, Inc., EFS III, Inc., EFS
V, Inc., EFS VI, L.P., EFS VII, Inc., EFS IX, Inc., EFS X, Inc., EFS XI, Inc.,
EFS XII, Inc., EFS XV, Inc., EFS XVII, Inc., Jovinole Associates, EFS Holdings,
Inc., Enron Operations Services, LLC, Green Power Partners I LLC, TLS Investors,
L.L.C., ECT Securities Limited Partnership, ECT Securities LP Corp., ECT
Securities GP Corp., KUCC Cleburne, LLC, Enron International Asset Management
Corp., Enron Brazil Power Holdings XI Ltd., Enron Holding Company L.L.C., Enron
Development Management Ltd., Enron International Korea Holdings Corp., Enron
Caribe VI Holdings Ltd., Enron International Asia Corp., Enron Brazil Power
Investments XI Ltd., Paulista Electrical Distribution, L.L.C., Enron Pipeline
Construction

<PAGE>

Services Company, Enron Pipeline Services Company, Enron Trailblazer Pipeline
Company, Enron Liquid Services Corp., Enron Machine and Mechanical Services,
Inc., Enron Commercial Finance Ltd., Enron Permian Gathering Inc., Transwestern
Gathering Company, Enron Gathering Company, EGP Fuels Company, Enron Asset
Management Resources, Inc., Enron Brazil Power Holdings I Ltd., Enron do Brazil
Holdings Ltd., Enron Wind Storm Lake II LLC, Enron Renewable Energy Corp., Enron
Acquisition III Corp., Enron Wind Lake Benton LLC, Superior Construction
Company, EFS IV, Inc., EFS VIII, Inc., EFS XIII, Inc., Enron Credit Inc., Enron
Power Corp., Richmond Power Enterprise, L.P., ECT Strategic Value Corp., Enron
Development Funding Ltd., Atlantic Commercial Finance, Inc., The Protane
Corporation, Enron Asia Pacific/Africa/China LLC, Enron Development Corp., ET
Power 3 LLC, Nowa Sarzyna Holding B.V., Enron South America LLC, Enron Global
Power & Pipelines LLC, Cabazon Power Partners LLC, Cabazon Holdings LLC, Enron
Caribbean Basin LLC, Victory Garden Power Partners I LLC, Oswego Cogen Company,
LLC and Enron Equipment & Procurement Company (collectively with Enron, as
Debtors under the Plan (hereinafter defined), and, as applicable, the
Reorganized Debtors under the Plan, the "Debtors") and Stephen Forbes Cooper,
LLC as trustee (together with any successor trustee, the "Trustee").

                               W I T N E S S E T H

            WHEREAS, the Debtors' Supplemental Modified Fifth Amended Joint Plan
of Affiliated Debtors Pursuant to Chapter 11 of the Bankruptcy Code, including,
without limitation, the Plan Supplement and the exhibits and schedules thereto,
dated July 2, 2004 (as the same has been or may be amended, the "Plan") filed in
the United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court"), provides for the establishment of the Common Equity Trust
(as defined in the Plan) evidenced hereby (the "Trust") in accordance with the
Plan.

            WHEREAS, the Trust is created pursuant to, and to effectuate, the
Plan, and except with respect to the terms defined herein, all capitalized terms
contained herein shall have the meanings ascribed to them in the Plan;

            WHEREAS, the Trust is created on behalf of, and for the sole benefit
of, the holders of Allowed Enron Common Equity Interests in Class 384
(collectively, the "Beneficiaries");

            WHEREAS, the Plan provides that on the Effective Date the Enron
Common Equity Interests are to be canceled and the Debtors shall issue the
Exchanged Enron Common Stock (which shall replace the canceled Enron Common
Equity Interests) to the Trust, to be held for the benefit of the Beneficiaries,
and such Persons shall receive beneficial Common Equity Trust Interests, in an
aggregate number equal to the outstanding shares of Exchanged Enron Common
Stock, which shall be allocated pro rata among the holders of the Allowed Enron
Common Equity Interests in Class 384 based on the relative amounts of Allowed
Enron Common Equity Interests held by such holders;

            WHEREAS, the Exchanged Enron Common Stock and any distributions to
the Trust of Plan Currency and Trust Interests to be made under the Plan with
respect to the Exchanged Enron Common Stock (such Plan Currency and Trust
Interests referred to herein as

                                       2
<PAGE>

the "Common Proceeds") and any Cash amounts contributed to the Trust to pay for
Trust expenses shall collectively be referred to as the "Trust Assets" for the
purposes of this Trust Agreement; and

            WHEREAS, the Trust is intended to qualify as a liquidating trust
within the meaning of Treasury Regulation Section 301.7701-4(d);

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein and in the Plan, the Debtors and the
Trustee agree as follows:

                                    ARTICLE I

                     ESTABLISHMENT AND PURPOSE OF THE TRUST

      1.1 Purpose of the Trust. The Trust is established for the sole purpose of
holding the Exchanged Enron Common Stock and distributing the Common Proceeds,
in accordance with Treasury Regulation Section 301.7701-4(d), with no objective
to continue or engage in the conduct of a trade or business. Accordingly, the
Trustee shall, and hereby represents that it shall, in an expeditious but
orderly manner, make timely distributions of the Common Proceeds and not unduly
prolong the duration of the Trust. Nothing in this Section 1.1 shall be deemed
to permit the Trustee to sell, liquidate, distribute or otherwise transfer the
Exchanged Enron Common Stock.

      1.2 Transfer of Property to Trustee. Pursuant to the Plan, the Debtors and
the Trustee hereby establish the Trust on behalf of the holders of Allowed Enron
Common Equity Interests (whether or not Allowed on or after the Effective Date),
and on the Effective Date, Enron shall issue and deliver to the Trust, all of
the Exchanged Enron Common Stock, free and clear of any Lien, Claim, Equity
Interest, encumbrance or other interest in such property of any other Person or
entity except as provided in the Plan. The Trustee agrees to accept and hold the
Trust Assets in trust for the holders of the Common Equity Trust Interests,
subject to the terms of this Trust Agreement.

      1.3 Relationship to the Plan. The principal purpose of this Trust
Agreement is to aid in the implementation of the Plan and therefore this Trust
Agreement incorporates the provisions of the Plan and the Confirmation Order
(which may amend or supplement the Plan). To that end, the Trustee shall have
full power and authority to take any action consistent with the purpose and
provisions of the Plan, the Confirmation Order and this Trust Agreement.
Additionally, the Trustee may seek any orders from the Bankruptcy Court, upon
notice and an opportunity for a hearing in furtherance of implementation of the
Plan, the Confirmation Order and this Trust Agreement. To the extent that there
is conflict between the provisions of this Trust Agreement, the provisions of
the Plan, or the Confirmation Order, each document shall have controlling effect
in the following rank order: (1) the Confirmation Order; (2) the Plan; and (3)
this Trust Agreement.

      1.4 Title to Trust Assets.

            (a) The transfer of the Trust Assets to the Trust shall be made by
the Debtors for the benefit and on behalf of the holders of Allowed Enron Common
Equity Interests (whether

                                       3
<PAGE>

or not Allowed on or after the Effective Date). Upon the issuance of the
Exchanged Enron Common Stock, the Trustee shall have all right, title and
interest in the Exchanged Enron Common Stock.

            (b) For all federal income taxes purposes (e.g. IRC Sections
61(a)(12), 483, 1001, 1012 and 1274), all parties (including, without
limitation, the Debtors, the Trustee, and the holders of the Common Equity Trust
Interests) shall treat the issuance of the Exchanged Enron Common Stock to the
Trust in accordance with the terms of the Plan as an issuance to holders of
Allowed Enron Common Equity Interests in Class 384 followed by a transfer by
such holders to the Trust and the holders of Common Equity Trust Interests shall
be treated as the grantors and owners thereof.

            (c) As of the date hereof, the Debtors hereby transfer, assign and
deliver to the Trustee all of their right, title and interest in and to any
attorney-client privilege, work-product privilege, or other privilege or
immunity attaching to any documents or communications (whether written or oral)
associated with the Trust Assets (collectively, "Privileges"), which shall vest
in the Trustee and its representatives.

            (d) On or after the date hereof, the Debtors shall (i) deliver or
cause to be delivered to the Trustee any and all documents in connection with
the Trust Assets (including those maintained in electronic format and original
documents) whether held by the Debtors and each of their respective employees,
agents, advisors, attorneys, accountants or any other professionals hired by the
Debtors, and (ii) provide access to such employees of the Debtors and each of
their respective agents, advisors, attorneys, accountants or any other
professionals hired by the Debtors with knowledge of matters relevant to the
Trust Assets. Upon the reasonable request of the Trustee, the Debtors shall
provide the Trustee with a list of all documents in connection with the Trust
Assets known to it but not held by it or any of its employees, agents, advisors,
attorneys, accountants or any other professionals. Such list shall contain a
description of each document, to the extent feasible, as well as the name of the
Entity or Person holding such document.

            (e) At any time and from time to time on and after the date hereof,
the Debtors agree (i) at the reasonable request of the Trustee to execute and
deliver any instruments, documents, books, and records (including those
maintained in electronic format and original documents as may be needed), and
(ii) to take, or cause to be taken, all such further actions as the Trustee may
reasonably request in order to evidence or effectuate the transfer of the Trust
Assets and the Privileges to the Trust and the consummation of the transactions
contemplated hereby, by the Plan and by the Confirmation Order and to otherwise
carry out the intent of the parties hereunder and under the Plan and the
Confirmation Order.

      1.5 Rights of Holders of Common Equity Trust Interests. The holders of the
Common Equity Trust Interests shall be the beneficial owners of the Trust
created by this Trust Agreement and the Trustee shall retain only such incidents
of ownership as are necessary to undertake the actions and transactions
authorized herein. Each holder of Common Equity Trust Interests shall be
entitled to participation in the rights and benefits due to a beneficiary
according to his or her Common Equity Trust Interests, and each holder of Common
Equity Trust Interests

                                       4
<PAGE>

shall take and hold his or her Common Equity Trust Interests subject to all of
the terms and provisions of this Trust Agreement, the Plan and the Confirmation
Order.

      1.6 Ownership and Control of Trust Fund. Except as is hereinafter
expressly provided, no holder of Common Equity Trust Interests shall have any
title or right to, or possession, management or control of the Trust Assets, or
any right to call for a partition, division or accounting of the Trust Assets,
and no widower, widow, heir or devisee of any individual who may be a holder of
Common Equity Trust Interests, or bankruptcy trustee, receiver or similar person
of any holder of Common Equity Trust Interests shall have any right, statutory
or otherwise (including any right of dower, homestead or inheritance, or of
partition, as applicable), in any property forming a part of the Trust Assets,
but the whole title to all of the Trust Assets shall be vested in the Trustee
and the sole interest of the holders of Common Equity Trust Interests shall be
the rights and benefits given to such persons under this Trust Agreement.

      1.7 Funding of the Trust. To the extent that Cash and Cash Equivalents of
the Trust are insufficient to satisfy expenses incurred by the Trust, the
Trustee may request that the Debtors advance sufficient funds to the Trust to
satisfy such expenses, which decision to provide such funds shall be in the sole
discretion of the Debtors.

                                   ARTICLE II

                          COMMON EQUITY TRUST INTERESTS

      2.1 Identification of Holders of Common Equity Trust Interests. The record
holders of Common Equity Trust Interests shall be recorded and set forth in a
register maintained by the Trustee expressly for such purpose. The initial list
of record holders of Common Equity Trust Interests shall be based on the list of
holders of Allowed Enron Common Equity Interests in Class 384 as maintained by
the Reorganized Debtor Plan Administrator. All references in this Trust
Agreement to holders shall be read to mean holders of record as set forth in the
official register maintained by the Trustee and shall not mean any beneficial
owner not recorded on such official register. Unless expressly provided herein,
the Trustee may establish a record date, which he deems practicable for
determining the holders for a particular purpose.

      2.2 Conflicting Claims to Beneficial Interests. If any conflicting claims
or demands are made or asserted with respect to the ownership or control of the
Common Equity Trust Interests of any holder thereof, or if there is any
disagreement among persons claiming to be permitted successors of any Common
Equity Trust Interests resulting in adverse claims or demands being made in
connection with such Common Equity Trust Interests (an "Ownership Dispute"),
then, in any of such events, the Trustee shall be entitled to refuse to comply
with any demand or direction made by any party to such Ownership Dispute. In so
refusing, the Trustee may elect to make no payment or distribution with respect
to the Common Equity Trust Interests relating to the Ownership Dispute, or any
part thereof, and to refer such Ownership Dispute to the Bankruptcy Court, which
shall have exclusive jurisdiction over resolution of such Ownership Dispute. In
so doing, the Trustee shall not be or become liable to any of such parties for
its refusal to comply with any demand or direction made by them, nor shall the
Trustee be liable for interest on any funds which it may so withhold. The
Trustee shall be entitled to refuse to act until either (i) the rights of the
adverse claimants have been adjudicated by a final judgment of

                                       5
<PAGE>

the Bankruptcy Court or (ii) all differences have been resolved by a valid
written agreement among all of such parties and the Trustee, which agreement
shall include a complete release of the Trustee.

      2.3 Non-Transferability of Common Equity Trust Interests. The Common
Equity Trust Interests shall not be certificated and shall not be transferable,
assignable, pledged or hypothecated, in whole or in part, except with respect to
a transfer by will or under the laws of descent and distribution. Any such
transfer, however, shall not be effective until and unless the Trustee receives
written notice of such transfer and has been provided with evidence satisfactory
to it of the legal right of such transferee to such Common Equity Trust
Interest.

                                   ARTICLE III

                AUTHORITY, LIMITATIONS, DISTRIBUTIONS AND DUTIES

      3.1 (a) Periodic Distribution; Withholding. The Trustee shall distribute
at least annually to the holders of Common Equity Trust Interests all Common
Proceeds; provided however, that prior to making any distribution to holders of
Common Equity Trust Interests, the Trust may retain such amounts (i) as are
reasonably necessary to meet contingent liabilities and to maintain the value of
the Trust Assets during liquidation, (ii) to pay reasonable administrative
expenses (including the reasonable fees, costs and expenses of the Trustee and
all professionals it retains and any taxes imposed on the Trust or in respect of
the Trust Assets), and (iii) to satisfy other liabilities incurred or assumed by
the Trust (or to which the Trust Assets are otherwise subject) in accordance
with the Plan or this Trust Agreement. All such distributions shall be pro rata
based on the number of Common Equity Trust Interests held by a holder compared
with the aggregate number of Common Equity Trust Interests outstanding, subject
to the terms of the Plan and this Trust Agreement. The Trustee may withhold from
amounts distributable to any Person any and all amounts, determined in the
Trustee's reasonable sole discretion, to be required by any law, regulation,
rule, ruling, directive or other governmental requirement. Notwithstanding the
forgoing, in no event shall any holder of Common Equity Trust Interests receive
a distribution of Exchanged Enron Common Stock.

            (b) Manner of Payment or Distribution. All distributions made by the
Trustee to holders of Common Equity Trust Interests shall be payable to the
holders of the Common Equity Trust Interests of record as of the twentieth
(20th) day prior to the date scheduled for the distribution, unless such day is
not a Business Day, in which case such day shall be the following Business Day.
If the distribution shall be in Cash the Trustee shall distribute such Cash by
wire, check or such other method as the Trustee deems appropriate under the
circumstances.

            (c) Delivery of Trust Distributions. All distributions under this
Trust Agreement to any holder of Common Equity Trust Interests shall be made at
the address of such holder as set forth in the register or at such other address
as such holder of Common Equity Trust Interests shall have specified for payment
purposes in a written notice to the Trustee at least fifteen (15) days prior to
such distribution date. In the event that any distribution to any holder is
returned as undeliverable, the Trustee shall use reasonable efforts to determine
the current address of such holder, but no distribution to such holder shall be
made unless and until the Trustee has determined the then current address of
such holder, at which time such distribution

                                       6
<PAGE>

shall be made to such holder without interest; provided, however, that such
undeliverable or unclaimed distributions shall be deemed unclaimed property at
the expiration of one year from the date of distribution. The Trustee shall
reallocate all undeliverable and unclaimed distributions for the benefit of all
other Beneficiaries.

      3.2 Reporting Duties of the Trustee.

            (a) Subject to definitive guidance from the IRS or a court of
competent jurisdiction to the contrary (including the receipt by the Trustee of
a private letter ruling if the Trustee (or the Debtors) so requests one, or the
receipt of an adverse determination by the IRS upon audit if not contested by
the Trustee), the Trustee shall file returns for the Trust as a grantor trust
pursuant to Treasury Regulation Section 1.671-4(a) and in accordance with
Section 27.7(a) of the Plan. The Trustee shall also annually send to each record
holder of Common Equity Trust Interests a separate statement setting forth the
holder's share of items of income, gain, loss, deduction, or credit and shall
instruct all such holders to report such items on their federal income tax
returns or to forward the appropriate information to the holders of Common
Equity Trust Interests with instructions to report such items on their federal
income tax returns.

            (b) Allocations of Trust taxable income shall be determined by
reference to the manner in which an amount of cash equal to such taxable income
would be distributed (without regard to any restrictions on distributions
described herein) if, immediately prior to such deemed distribution, the Trust
had distributed all of its other assets (valued for this purpose at their tax
book value) to the holders of the Common Equity Trust Interests (treating any
holder of a Disputed Equity Interest, for this purpose, as a current holder of a
Common Equity Trust Interest entitled to distributions), taking into account all
prior and concurrent distributions from the Trust (including all distributions
held in escrow pending the resolution of Ownership Disputes and Disputed
Claims). Similarly, taxable loss of the Trust shall be allocated by reference to
the manner in which an economic loss would be borne immediately after a
liquidating distribution of the remaining Trust Assets. The tax book value of
the Trust Assets for this purpose shall equal their fair market value on the
date the Trust was created or, if later, the date such assets were acquired by
the Trust, adjusted in either case in accordance with tax accounting principles
prescribed by the IRC, the Treasury Regulations and other applicable
administrative and judicial authorities and pronouncements.

            (c) The Trustee shall file (or cause to be filed) any other
statements, returns or disclosures relating to the Trust that are required by
any governmental unit.

      3.3 Termination of Trust. The Trust shall terminate on the earlier of: (i)
thirty (30) days after the final distribution of all of the Common Proceeds in
accordance with the terms of this Trust Agreement, the Plan and the Confirmation
Order and the cancellation of the Exchanged Enron Common Stock and (ii) the
third (3rd) anniversary of the Confirmation Date; provided, however, that, on or
prior to the date three (3) months prior to such termination, the Bankruptcy
Court, upon motion by a party in interest on notice with an opportunity for a
hearing, may extend the maximum term of the Trust set forth in this clause (ii)
if it is necessary to the liquidation of the assets of the Trust.
Notwithstanding the foregoing, multiple extensions of the maximum term of the
trust set forth in clause (ii) of this Section can be obtained so long as
Bankruptcy Court approval is obtained (in accordance with the procedures set
forth in the

                                       7
<PAGE>

preceding sentence) at least three (3) months prior to the expiration of each
extended term; provided, however, that the aggregate of all such extensions
shall not exceed three (3) years from and after the third (3rd) anniversary of
the Confirmation Date. In any event, upon the termination of the Trust all of
the Exchanged Enron Common Stock shall be canceled and otherwise void.

      3.4 Continuance of Trust for Winding Up. After the termination of the
Trust and solely for the purpose of liquidating and winding up the affairs of
the Trust, the Trustee shall continue to act as such until its duties have been
fully performed. At such time, to the extent that any funds remain in the Trust
that were provided to the Trustee by the Debtors to cover trust expenses, such
funds shall be transferred to the Reorganized Debtor Plan Administrator for the
purpose of distributing such funds to the Debtors in accordance with the Plan.
Upon distribution of all Trust Assets, which shall not include a distribution of
the Exchanged Enron Common Stock to the holders of Common Equity Trust
Interests, the Trustee shall retain the books, beneficiary lists, registers,
records and files which shall have been delivered to or created by the Trustee.
At the Trustee's discretion, all of such records and documents may be destroyed
in accordance with Section 3.7. Except as otherwise specifically provided
herein, upon the distribution of all Trust Assets, the Trustee shall have no
further duties or obligations hereunder except the obligations under Section 3.7
hereof.

      3.5 General Powers of the Trustee. In connection with the administration
of the Trust, except as set forth in this Trust Agreement, the Trustee is
authorized to perform any and all acts necessary or desirable to accomplish the
purposes of the Trust. Without limiting, but subject to, the foregoing and to
Section 3.6 hereof, the Trustee shall be expressly authorized to:

            (a) hold legal title to any and all rights of the holders of the
Common Equity Trust Interests in or arising from the Trust Assets, including,
but not limited to, voting the Exchanged Enron Common Stock (subject to Section
3.10), collecting any and all money and other property belonging to the Trust,
and voting any claim or interest in a case under the Bankruptcy Code and
receiving any distribution therein;

            (b) perform the duties, exercise the powers, and assert the rights
of a trustee under sections 704 and 1106 of the Bankruptcy Code;

            (c) protect and enforce the rights to the Trust Assets by any method
deemed appropriate including, without limitation, by judicial proceedings or
pursuant to any applicable bankruptcy, insolvency, moratorium, or similar law
and general principles of equity;

            (d) compromise, adjust, arbitrate, sue on or defend, pursue,
prosecute abandon, or otherwise deal with and settle any cause of action or
Ownership Dispute in favor of or against the Trust as the Trustee shall deem
advisable;

            (e) determine and satisfy any and all liabilities created, incurred
or assumed by the Trust;

            (f) file, if necessary, any and all tax and information returns with
respect to the Trust and pay taxes properly payable by the Trust, if any;

                                       8
<PAGE>

            (g) execute offsets against claims as provided for in the Plan;

            (h) assert or waive any Privileges or defense on behalf of the
Trust;

            (i) pay all expenses and make all other payments relating to the
Trust Assets;

            (j) retain and pay such independent law firms as counsel to the
Trust as the Trustee may select to aid in the prosecution of any claims that
constitute the Trust Assets, and to perform such other functions as may be
appropriate. The Trustee may commit the Trust to and shall pay such independent
law firms reasonable compensation for services rendered and reasonable and
documented out-of-pocket expenses incurred. The Trustee may retain counsel on a
nunc pro tunc basis, to a date prior to the Effective Date. A law firm shall not
be disqualified from serving as independent counsel to the Trust solely because
of its prior retention by the Debtors, the Creditors' Committee, or a member of
the Creditors' Committee;

            (k) retain and pay an independent public accounting firm to perform
such reviews and/or audits of the financial books and records of the Trust as
may be appropriate and to prepare and file any tax returns or informational
returns for the Trust as may be required. The Trustee may retain an independent
accounting firm on a nunc pro tunc basis, to a date prior to the Effective Date.
The Trustee may commit the Trust to and shall pay such independent public
accounting firm reasonable compensation for services rendered and reasonable and
documented out-of-pocket expenses incurred. An independent public accounting
firm shall not be disqualified from serving as independent counsel to the Trust
solely because of its prior retention by the Debtors, the Creditors' Committee,
or a member of the Creditors' Committee;

            (l) retain and pay such third parties as the Trustee may deem
necessary or appropriate to assist the Trustee in carrying out its powers and
duties under this Trust Agreement. The Trustee may commit the Trust to and shall
pay all such persons or entities reasonable compensation for services rendered
and reasonable and documented out-of-pocket expenses incurred, as well as commit
the Trust to indemnify any such parties in connection with the performance of
services, on a nunc pro tunc basis, to a date prior to the Effective Date;

            (m) invest any moneys held as part of the Trust in accordance with
the terms of Section 4.4 hereof, limited, however, to such investments that are
consistent with the Trust's status as a liquidating trust within the meaning of
Treasury Regulation Section 301.7701-4(d) and in accordance with Rev. Proc.
94-45, 1994-2 C.B. 684;

            (n) request any appropriate tax determination with respect to the
Trust, including, without limitation, a determination pursuant to section 505 of
the Bankruptcy Code;

            (o) establish and maintain a web site for the purpose of providing
notice of Trust activities in lieu of sending written notice to holders of
Common Equity Trust Interests, subject to providing notice to those holders
referred to in Section 7.4 hereof;

            (p) seek the examination of any entity under, and subject to, the
provisions of Bankruptcy Rule 2004; and

                                       9
<PAGE>

            (q) take or refrain from taking any and all actions the Trustee
reasonably deems necessary for the continuation, protection, and maximization of
the Trust Assets consistent with the purposes hereof.

      3.6 Limitation of Trustee's Authority.

            (a) Notwithstanding anything herein to the contrary, the Trustee
shall not and shall not be authorized to engage in any trade or business or
sell, liquidate or otherwise transfer any Trust Assets, other than to distribute
Common Proceeds and perform such other activities pursuant to this Trust
Agreement. Notwithstanding any other authority granted by Sections 3.1, 3.5 and
4.4 hereof, the Trustee is not authorized to engage in any investments or
activities inconsistent with the treatment of the Trust as a liquidating trust
within the meaning of Treasury Regulation Section 301.7701-4(d) and in
accordance with Rev. Proc. 94-45, 1994-2 C.B. 684.

            (b) The Trustee shall be restricted to receiving the Exchanged Enron
Common Stock, administering the Exchanged Enron Common Stock as provided in
Section 1.2, receiving the Common Proceeds, and investing and reinvesting the
Common Proceeds subject to the limitations provided in Section 4.4, collecting
income from the Trust Assets, and effecting the distributions specified in
Section 3.1 and specified elsewhere in this Trust Agreement for the purposes of
carrying out the terms of this Trust Agreement.

            (c) Neither the Trustee nor any of its agents shall sell, distribute
or otherwise transfer the Exchanged Enron Common Stock.

      3.7 Books and Records.

            (a) The Trustee shall maintain in respect of the Trust and the
holders of Common Equity Trust Interests books and records relating to the Trust
Assets and income of the Trust and the payment of expenses of, and liabilities
of claims against or assumed by, the Trust in such detail and for such period of
time as may be necessary to enable it to make full and proper accounting in
respect thereof. Such books and records shall be maintained as reasonably
necessary to facilitate compliance with the tax reporting requirements of the
Trust. Nothing in this Trust Agreement requires the Trustee to file any
accounting with respect to the administration of the Trust, or as a condition
for managing any payment or distribution out of the Trust Assets. Holders of the
Common Equity Trust Interests shall have the right upon five (5) Business Days'
prior written notice delivered to the Trustee to inspect such books and records
(including financial statements), provided that the Trustee, in a reasonable
effort to preserve Privileges or confidential information or protect litigation
or other strategies, may require such holder or such holder's authorized
representatives to enter into a confidentiality agreement satisfactory in form
and substance to the Trustee. Any books and records determined by the Trustee,
in its sole discretion, not to be reasonably necessary for administering the
Trust or for the Trustee's compliance with the provisions of this Trust
Agreement may, to the extent not prohibited by applicable law or order, be
destroyed.

            (b) Nothing contained in this Trust Agreement shall preclude the
Trustee from seeking a judicial settlement of its accounts.

                                       10
<PAGE>

      3.8 Additional Powers. Except as otherwise set forth in this Trust
Agreement or in the Plan, and subject to the Treasury Regulations governing
Trusts and the retained jurisdiction of the Bankruptcy Court as provided for in
the Plan, but without prior or further authorization, the Trustee may control
and exercise authority over the Trust Assets and over the protection,
conservation and disposition thereof. No Person dealing with the Trust shall be
obligated to inquire into the authority of the Trustee in connection with the
protection, conservation or disposition of the Trust Assets.

      3.9 Compliance with Laws. Any and all distributions of Common Proceeds
shall be in compliance with applicable laws, including, but not limited to,
applicable federal and state securities laws.

      3.10 Voting of Shares. The Trustee shall vote the shares of the Exchanged
Enron Common Stock, (i) with regard to the removal of any director of Enron,
only as unanimously recommended by the other directors of Enron, and (ii) with
regard to all other matters, only as recommended by the Board of Directors of
Enron in a resolution passed in accordance with Enron's bylaws. No holder of
Common Equity Trust Interests shall be entitled to exercise any voting rights
associated with the Enron Exchanged Common Stock whatsoever (whether related to
the election of board members or otherwise), and all such rights shall be vested
in the Trustee. Notwithstanding anything to the contrary, the provisions set
forth in this Section 3.10 are irrevocable and may not be modified, amended, or
revoked by any holder of Common Equity Trust Interests or any other Person.

                                   ARTICLE IV

                                   THE TRUSTEE

      4.1 Generally. The Trustee's powers are exercisable solely in a fiduciary
capacity consistent with, and in furtherance of, the purposes of this Trust and
the Plan, except that the Trustee may deal with the Trust Assets consisting
solely of cash for its own account as permitted by Section 4.6 hereof.

      4.2 Liability of Trustee and Indemnification.

            (a) Indemnification of Trustee. To the fullest extent provided by
applicable law, the Trustee shall be indemnified by and receive reimbursement
from the Trust against and from any and all loss, liability, damage or
reasonable and documented out-of-pocket expense that the Trustee may incur or
sustain in the good faith exercise and performance of any of the powers and
duties of the Trustee under this Trust Agreement, except for that which results
from its own recklessness, gross negligence, willful misconduct, breach of
fiduciary duty or knowing violation of law. The Trustee may receive advance
payments in connection with indemnification under this Section, provided that
prior to receiving any such advance, the Trustee shall first have given a
written undertaking to repay any amount advanced to it and to reimburse the
Trust in the event it is subsequently determined that it is not entitled to such
indemnification. The rights accruing to the Trustee by reason of the foregoing
shall not be deemed to exclude any other right to which it may legally be
entitled, nor shall anything else contained herein restrict the right of the
Trustee to contribution under applicable law.

                                       11
<PAGE>

            (b) Indemnification for Taxes. To the fullest extent provided by
applicable law, the Trust shall indemnify the Trustee against and hold the
Trustee harmless from any and all liability for taxes assessable against the
Trust that have been assessed against the Trustee personally for the Trust
taxable year to which the return or audit or proceeding relates and for all
losses, costs, and reasonable and documented out-of-pocket expenses (including
reasonable and documented out-of-pocket legal and accounting fees and expenses)
incurred by the Trustee in defending against any assessment of taxes for such
year, except for that which results from its own recklessness, gross negligence,
willful misconduct, breach of fiduciary duty or knowing violation of law. The
Trust's obligations pursuant to this Section shall survive until the expiry of
the applicable statute of limitations. Nothing in this Section shall limit the
Trustee's entitlement to the benefit of the Trust Agreement's general reliance,
standard of care, exculpation, and indemnification provisions with respect to
taxes. All losses, claims, costs, reasonable and documented out-of-pocket
expenses and liabilities (including reasonable legal and accounting fees and
documented and out-of-pocket expenses) to be paid to the Trustee under this
Section shall be paid in accordance with, and subject to the limitations set
forth in, subsection (a) of this Section 4.2.

            (c) Liability to Third Persons. The Debtors shall not be subject to
any personal liability whatsoever, in tort, contract or otherwise, to any person
in connection with the Trust or the affairs of the Trust, and no Trustee or
agent of the Trust shall be subject to any personal liability whatsoever, in
tort, contract or otherwise, to any person in connection with the Trust or the
affairs of this Trust, for actions or omissions taken or made in good faith, and
without such Person's own recklessness, gross negligence, willful misconduct,
breach of fiduciary duty or knowing violation of law; and except as otherwise
provided in this Trust Agreement, all such Persons shall look solely to the
Trust Assets consisting solely of Cash or Cash Equivalents for satisfaction of
claims of any nature arising in connection with affairs of the Trust.

            (d) Nonliability of Trustee for Acts of Predecessors. Any successor
Trustee may accept and rely upon any accounting made by or on behalf of any
predecessor Trustee hereunder, and any statement or representation made as to
Trust Assets or as to any other fact bearing upon the prior administration of
the Trust, unless the successor Trustee believes such accounting, statement or
representation to be untrue. A Trustee shall not be liable for having accepted
and relied upon such accounting, statement or representation if it is later
proved to be incomplete, inaccurate or untrue. A Trustee or successor Trustee
shall not be liable for any act or omission of any predecessor Trustee, nor have
a duty to enforce any claims against any predecessor Trustee on account of any
such act or omission.

            (e) Nonliability of Trustee for Acts of Others. Nothing contained in
this Trust Agreement shall be deemed to be an assumption by the Trustee of any
of the liabilities, obligations or duties of the Debtors, and shall not be
deemed to be or contain a covenant or agreement by the Trustee to assume or
accept any such liability, obligation or duty.

      4.3 Reliance by Trustee. Except as otherwise provided in Section 4.2
hereof:

            (a) the Trustee may rely, and shall be protected in acting upon, any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, or other paper

                                       12
<PAGE>

or document believed by it to be genuine and to have been signed or presented by
the proper party or parties; and

            (b) Persons dealing with the Trustee shall look only to the Trust
Assets consisting solely of Cash or Cash Equivalents to satisfy any liability
incurred by the Trustee to such person in carrying out the terms of this Trust
Agreement, and the Trustee shall have no personal obligation to satisfy any such
liability. Nothing in this subsection (b) of Section 4.3 shall be deemed to
permit the use of the Exchanged Enron Common Stock to satisfy such liabilities.

      4.4 Investment Powers. The right and power of the Trustee to invest Trust
Assets, the proceeds thereof, or any income earned by the Trust, shall be
limited to the right and power to invest such assets (pending periodic
distributions in accordance with Section 3.1) in Cash Equivalents; provided,
however, that the scope of any such permissible investments shall be limited to
include only those investments, or shall be expanded to include any additional
investments as the case may be, that a liquidating trust, within the meaning of
Treasury Regulation Section 301.7701-4(d) may be permitted to hold, pursuant to
the Treasury Regulations or any modification in the IRS guidelines, whether set
forth in IRS rulings, other IRS pronouncements or otherwise and provided,
further, that, under no circumstances shall the Trust segregate the Trust Assets
on the basis of classification of the holders of Common Equity Trust Interests,
other than with respect to distributions to be made on account of Disputed
Claims and Disputed Equity Interests in accordance with the provisions of the
Plan.

      4.5 Requirement of Adequate Resources. Notwithstanding any other provision
of this Trust Agreement the Trustee shall not be required to take any action or
enter into or maintain any claim, demand, action or proceeding relating to the
Trust unless the Trustee shall have sufficient funds on hand for that purpose.

      4.6 Expense Reimbursement and Compensation.

            (a) The Trustee may retain as much or all of the Trust Assets
consisting solely of Cash or Cash Equivalents including, without limitation,
Common Proceeds that would otherwise be payable to holders of Common Equity
Trust Interests pursuant to Section 3.1, as a reserve for the payment of
reasonable and documented out-of-pocket expenses (except those resulting from
its own gross negligence, recklessness, willful misconduct, breach of fiduciary
duty or knowing violation of law) incurred by the Trustee as a result of the
execution of its duties hereunder, including, but not limited to, reasonable and
documented out-of-pocket legal and accounting expenses, reasonable expenses
incurred or anticipated as a result of disbursements and payments made or to be
made by the Trustee, and reasonable compensation for agents, counsel or other
services rendered to the Trustee by third parties, and reasonable documented and
out-of-pocket expenses incident thereto, including taxes of any kind whatsoever,
and related interest and penalties, that may be levied or assessed under
existing or future laws of any jurisdiction upon or in respect of the Trust or
the Trust Assets.

      4.7 No Bond. Neither the Trustee nor any successor Trustee shall be
obliged to file or furnish any bond or surety for the performance of its duties,
unless otherwise ordered by a court

                                       13
<PAGE>

of competent jurisdiction, and, if so ordered, all costs and expenses of
providing such bond or surety shall be paid or reimbursed pursuant to Section
4.6 hereof.

                                    ARTICLE V

                                SUCCESSOR TRUSTEE

      5.1 Removal. The Trustee may be removed by the Bankruptcy Court. Such
removal shall become effective on the date such action is taken by the
Bankruptcy Court.

      5.2 Resignation. The Trustee may resign by giving not less than ninety
(90) days' prior written notice thereof to the Bankruptcy Court. Such
resignation shall become effective on the later to occur of: (i) the day
specified in such notice; or (ii) the appointment of a successor by the
Bankruptcy Court and the acceptance by such successor of such appointment.

      5.3 Simultaneous Removal and Resignation. To the extent that the Trustee
is removed pursuant to the terms specified in Section 5.1 above (a "Removal") or
the Trustee resigns pursuant to the terms specified in Section 5.2 above (a
"Resignation"), and the Trustee is then serving in any other capacity for or on
behalf of any of the Reorganized Debtors or any of their Affiliates or is
serving as Reorganized Debtor Plan Administrator, Disbursing Agent or as trustee
of any other trust formed pursuant to the Plan (service by the Reorganized
Debtor Plan Administrator in each such additional capacity, a "Responsibility"
and collectively, the "Responsibilities"), the Trustee shall be deemed to be
terminated (for all purposes and without any further action) from each of its
other Responsibilities upon its Removal or Resignation.

      5.4 Appointment of Successor Trustee. In the event of the death (in the
case of a Trustee that is a natural person), dissolution (in the case of a
Trustee that is not a natural person), resignation pursuant to Section 5.2
hereof, incompetency, or removal of the Trustee pursuant to Section 5.1 hereof,
a successor trustee shall be appointed by Enron with the approval of the
Bankruptcy Court upon entry of an order after an opportunity for hearing. Such
appointment shall specify the date on which such appointment shall be effective.
Every successor Trustee appointed hereunder shall execute, acknowledge, and
deliver to the Bankruptcy Court and to the retiring Trustee an instrument
accepting the appointment under this Trust Agreement and agreeing to be bound
thereto, and thereupon the successor Trustee, without any further act, deed, or
conveyance, shall become vested with all rights, powers, trusts, and duties of
the retiring Trustee; provided, however, that a removed or resigning Trustee
shall, nevertheless, when requested in writing by the successor Trustee, execute
and deliver an instrument or instruments conveying and transferring to such
successor Trustee under the Trust all the estates, properties, rights, powers,
and trusts of such predecessor Trustee.

                                   ARTICLE VI

                            REPORTS TO BENEFICIARIES

      6.1 Reports. As soon as practicable, the Trustee shall post on a website
to which the Beneficiaries have access, and, while the Debtors' bankruptcy cases
remain open, file with the bankruptcy court, reports setting forth in reasonable
detail any material event or change that

                                       14
<PAGE>

occurs with respect to the Trust, which, to the knowledge of the Trustee,
affects the Beneficiaries hereunder, which reports shall not be required to be
audited or in compliance with generally accepted accounting principles.

                                   ARTICLE VII

                              AMENDMENT AND WAIVER

      7.1 Amendment and Waiver. Any substantive provision of this Trust
Agreement may be amended or waived by the Trustee, upon notice to the
Beneficiaries, with the approval of the Bankruptcy Court upon notice and an
opportunity for a hearing; provided, however, technical amendments to this Trust
Agreement may be made, as necessary to clarify this Trust Agreement or enable
the Trustee to effectuate the terms of this Trust Agreement, by the Trustee
without Bankruptcy Court approval and without notice to the Beneficiaries so
long as notice has been filed with the Bankruptcy Court with such technical
amendment attached thereto. Notwithstanding this Section 7.1, any waiver or
amendments to this Trust Agreement shall not: (i) be inconsistent with the
purpose and intention of the Trust to liquidate in an expeditious but orderly
manner the Trust Assets in accordance with Treasury Regulation Section
301.7701-4(d); (ii) permit any distribution or other transfer by the Trust of
the Exchanged Enron Common Stock; (iii) permit any transfer of the Common Equity
Trust Interests other than in accordance with Section 2.3 hereof; or (iv) permit
any amendment or waiver of this Section 7.1. Additionally, no change may be made
to this Trust Agreement that would be inconsistent with the purpose and
intention of the Trust as specified herein and in the Plan, adversely affect the
distributions to be made under this Trust Agreement to any of the Beneficiaries,
adversely affect the U.S. Federal income tax status of the Trust as a
"liquidating trust" or adversely affect the rights of the Creditors' Committee
or the ENA Examiner under the Plan or this Trust Agreement.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      8.1 Intention of Parties to Establish Trust. This Trust Agreement is
intended to create a trust for federal income tax purposes and, to the extent
provided by law, shall be governed and construed in all respects as such a trust
and any ambiguity herein shall be construed consistent herewith and, if
necessary, this Trust Agreement may be amended to comply with such federal
income tax laws, which amendments may apply retroactively.

      8.2 Laws as to Construction/Jurisdiction. This Trust Agreement shall be
governed and construed in accordance with the laws of the State of New York,
without giving effect to rules governing the conflict of laws. Without limiting
any Person or Entity's right to appeal any order of the Bankruptcy Court or to
seek withdrawal of the reference with regard to any matter, (i) the Bankruptcy
Court shall retain exclusive jurisdiction to enforce the terms of this Trust
Agreement and to decide any claims or disputes which may arise or result from,
or be connected with, this Trust Agreement, any breach or default hereunder, or
the transactions contemplated hereby, and (ii) any and all actions related to
the foregoing shall be filed and maintained only in the Bankruptcy Court, and
the parties, including the members of the Creditors' Committee, hereby consent
to and submit to the exclusive jurisdiction and venue of the Bankruptcy Court.

                                       15
<PAGE>

      8.3 Severability. If any provision of this Trust Agreement or the
application thereof to any Person or circumstance shall be finally determined by
a court of competent jurisdiction to be invalid or unenforceable to any extent,
the remainder of this Trust Agreement, or the application of such provision to
Persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and such provision of this Trust
Agreement shall be valid and enforced to the fullest extent permitted by law.

      8.4 Notices. Any notice or other communication hereunder shall be in
writing and shall be deemed to have been sufficiently given, for all purposes,
if personally delivered or sent by mail, postage prepaid, or by telecopy
addressed to the person for whom such notice is intended as follows (or such
other address as may be designated by notice given in accordance with this
Section):

            If to the Trustee:       Stephen Forbes Cooper, LLC
                                     900 Third Avenue
                                     New York, New York 10022
                                     Telephone: (212) 213-5555
                                     Telecopier: (212) 213-1749
                                     Attn: Stephen F. Cooper

            with copies to:          Kroll Zolfo Cooper LLC
                                     900 Third Avenue
                                     New York, New York 10022
                                     Telephone: (212) 213-5555
                                     Telecopier: (212) 213-1749

            If to the Debtors:       c/o Enron Corp.
                                     1221 Lamar, Suite 1600
                                     Houston, Texas 77010-1221
                                     Attn: Reorganized Debtor Plan Administrator
                                     Telephone: (713) 853-6161
                                     Telecopier: (713) 853-3129

            If to a holder of Common Equity Trust Interests:

                  To the name and address set forth on the registry maintained
                  by the Trustee.

      8.5 Fiscal Year. The fiscal year of the Trust will begin on the first day
of January and end on the last day of December of each year.

      8.6 Prevailing Party. If the Trustee or the Trust, as the case may be, is
the prevailing party in a dispute regarding the provisions of this Trust
Agreement or the enforcement thereof, the Trustee or the Trust, as the case may
be, shall be entitled to collect any and all costs, reasonable and documented
out-of-pocket expenses and fees, including attorneys' fees, from the
non-prevailing party incurred in connection with such dispute or enforcement
action. To the extent that the Trust has advanced such amounts, the Trust may
recover such amounts from the non-prevailing party.

                                       16
<PAGE>

      8.7 Counterparts. This Trust Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original instrument, but
all together shall constitute one agreement.

      8.8 Entire Agreement. This Trust Agreement (including the recitals), the
Plan, and the Confirmation Order constitute the entire agreement by and among
the parties hereto regarding the subject matter hereof and there are no
representations, warranties, covenants or obligations regarding the subject
matter hereof except as set forth herein or therein. This Trust Agreement, the
Plan and the Confirmation Order supersede all prior and contemporaneous
agreements, understandings, negotiations, discussions, written or oral, of the
parties hereto, relating to any transaction contemplated hereunder. Except as
otherwise specifically provided herein, in the Plan or in the Confirmation
Order, nothing in this Trust Agreement is intended or shall be construed to
confer upon or to give any person other than the parties thereto and their
respective heirs, administrators, executors, successors, or assigns any right to
remedies under or by reason of this Trust Agreement.

      8.9 Confidentiality. Each predecessor Trustee and its representatives and
the representatives of the Trustee (each a "Covered Person") shall, during the
period that they serve in such capacity under this Trust Agreement and following
either the termination of this Trust Agreement or such Covered Person's removal,
incapacity, or resignation hereunder, hold strictly confidential and not use for
personal gain any material, non-public information of or pertaining to any
entity to which any of the Trust Assets relates or of which it has become aware
in its capacity (the "Information"), except to the extent disclosure is required
by applicable law, order, regulation or legal process. In the event that any
Covered Person is requested or required (by oral questions, interrogatories,
requests for information or documents, subpoena, civil investigation, demand or
similar legal process) to disclose any Information, such Covered Person shall
notify the Trustee reasonably promptly (unless prohibited by law) so that the
Trustee may seek an appropriate protective order or other appropriate remedy or,
in its discretion, waive compliance with the terms of this Section (and if the
Trustee seeks such an order, the relevant Covered Person will provide
cooperation as the Trustee shall reasonably request). In the event that no such
protective order or other remedy is obtained, or that the Trustee waives
compliance with the terms of this Section and that any Covered Person is
nonetheless legally compelled to disclose the Information, the Covered Person
will furnish only that portion of the Information, which the Covered Person,
advised by counsel, is legally required and will give the Trustee written notice
(unless prohibited by law) of the Information to be disclosed as far in advance
as practicable and exercise all reasonable efforts to obtain reliable assurance
that confidential treatment will be accorded the Information.

      8.10 Headings. The section headings contained in this Trust Agreement are
solely for convenience of reference and shall not affect the meaning or
interpretation of this Trust Agreement or of any term or provision hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have either executed and
acknowledged this Trust Agreement, or caused it to be executed and acknowledged
on their behalf by their duly authorized officers all as of the date first above
written.

                                    Enron Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Managing Director and Assistant
                                               General Counsel

                                    Enron Metals & Commodity Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron North America Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Power Marketing, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       18
<PAGE>

                                    PBOG Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Smith Street Land Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Broadband Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Energy Services Operations, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Energy Marketing Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       19
<PAGE>

                                    Enron Energy Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Energy Services, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Transportation Services, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    BAM Lease Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       20
<PAGE>

                                    ENA Asset Holdings L.P.
                                    By: Blue Heron I LLC, General Partner
                                          By: Whitewing Associates L.P., Sole
                                              Member
                                              By: Egret I LLC, Managing Member

                                    By:         /s/ K.Wade Cline
                                        ----------------------------------------
                                        Name:   K. Wade Cline
                                        Title:  Vice President

                                    Enron Gas Liquids, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Global Markets LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Net Works LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Industrial Markets LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       21
<PAGE>

                                    Operational Energy Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Engineering & Construction Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Engineering & Operational Services
                                    Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Garden State Paper Company, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Palm Beach Development Company, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       22
<PAGE>

                                    Tenant Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Energy Information Solutions, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EESO Merchant Investments, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Federal Solutions, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Freight Markets Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       23
<PAGE>

                                    Enron Broadband Services, L.P.
                                       By: Enron Broadband Services, Inc.,
                                           General Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Energy Services North America, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron LNG Marketing LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Calypso Pipeline, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Global LNG LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       24
<PAGE>

                                    Enron International Fuel Management Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Natural Gas Marketing Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ENA Upstream Company LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Liquid Fuels, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron LNG Shipping Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                       25
<PAGE>

                                    Enron Property & Services Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Capital & Trade Resources
                                    International Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Communications Leasing Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EnronWind Systems, LLC, f/k/a
                                       EREC Subsidiary I, LLC and successor to
                                       Enron Wind Systems Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EnronWind Constructors LLC, f/k/a
                                       EREC Subsidiary II, LLC and successor to
                                       Enron Wind Constructors Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       26
<PAGE>

                                    EnronWind Energy Systems LLC, f/k/a
                                       EREC Subsidiary III, LLC and successor to
                                       Enron Wind Energy Systems Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EnronWind Maintenance LLC, f/k/a
                                       EREC Subsidiary IV, LLC and successor to
                                       Enron Wind Maintenance Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Wind LLC, f/k/a
                                       EREC Subsidiary V, LLC and successor to
                                       Enron Wind Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Intratex Gas Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       27
<PAGE>

                                    Enron Processing Properties, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Methanol Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Ventures Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    The New Energy Trading Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EES Service Holdings, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       28
<PAGE>

                                    Enron Wind Development LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ZWHC LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Zond Pacific, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Reserve Acquisition Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EPC Estates Services, Inc., f/k/a
                                       National Energy Production Corporation

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       29
<PAGE>

                                    Enron Power & Industrial Construction
                                    Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    NEPCO Power Procurement Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    NEPCO Services International, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Caribe Verde (SJG) Inc., f/k/a
                                         San Juan Gas Company, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EBF LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       30
<PAGE>

                                    Zond Minnesota Construction Company LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Fuels International, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    E Power Holdings Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    EFS Construction Management Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Management, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       31
<PAGE>

                                    Enron Expat Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Artemis Associates, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Clinton Energy Management Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    LINGTEC Constructors L.P.
                                       By: Enron Power Construction Company,
                                           General Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   Stephen D. Dowd
                                       Title:  President and Chief Executive
                                           Officer

                                    EGS New Ventures Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       32
<PAGE>

                                    Louisiana Gas Marketing Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Louisiana Resources Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    LGMI, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    LRCI, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Communications Group, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       33
<PAGE>

                                    EnRock Management, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ECI-Texas, L.P.
                                       By: Enron Broadband Services, Inc.,
                                           General Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EnRock, L.P.
                                    By: Enrock Management, LLC, General Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ECI-Nevada Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Alligator Alley Pipeline Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       34
<PAGE>

                                    Enron Wind Storm Lake I LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ECT Merchant Investments Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EnronOnLine, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    St. Charles Development Company, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Calcasieu Development Company, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       35
<PAGE>

                                    Calvert City Power I, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron ACS, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    LOA, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron India LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron International Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       36
<PAGE>

                                    Enron International Holdings Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Middle East LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron WarpSpeed Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Modulus Technologies, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Telecommunications, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       37
<PAGE>

                                    DataSystems Group, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Risk Management & Trading Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Omicron Enterprises, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS I, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS II, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       38
<PAGE>

                                    EFS III, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS V, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS VI, L.P.
                                       By: EFS IV, Inc., General Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS VII, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS IX, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       39
<PAGE>

                                    EFS X, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS XI, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS XII, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS XV, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS XVII, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       40
<PAGE>

                                    Jovinole Associates
                                       By: EFS I, Inc. and EFS XIII, Inc., it's
                                           Partners

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS Holdings, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Operations Services LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Green Power Partners I LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    TLS Investors, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       41
<PAGE>

                                    ECT Securities Limited Partnership
                                       By: ECT Securities GP Corp., General
                                           Partner

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ECT Securities LP Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    ECT Securities GP Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    KUCC Cleburne, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron International Asset Management Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       42
<PAGE>

                                    Enron Brazil Power Holdings XI Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Enron Holding Company L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Development Management Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Enron International Korea Holdings Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Caribe VI Holdings Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                       43
<PAGE>

                                    Enron International Asia Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Brazil Power Investments XI Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Paulista Electrical Distribution, L.L.C.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Pipeline Construction Services Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Pipeline Services Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       44
<PAGE>

                                    Enron Trailblazer Pipeline Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Liquid Services Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Machine and Mechanical Services, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Commercial Finance Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Enron Permian Gathering Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       45
<PAGE>

                                    Transwestern Gathering Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Gathering Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EGP Fuels Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Asset Management Resources, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Brazil Power Holdings I Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                       46
<PAGE>

                                    Enron do Brazil Holdings Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Enron Wind Storm Lake II LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Renewable Energy Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Acquisition III Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Wind Lake Benton LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       47
<PAGE>

                                    Superior Construction Company

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS IV, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS VIII, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    EFS XIII, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Credit Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                       48
<PAGE>

                                    Enron Power Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Richmond Power Enterprise, L.P.
                                       By: Enron-Richmond Power Corp. and
                                           Richmond Power Holdings, Inc.,
                                           General Partners

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   Charles E. Schneider
                                       Title:  President and Chief Executive
                                               Officer

                                    ECT Strategic Value Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Development Funding Ltd.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Chairman

                                    Atlantic Commercial Finance, Inc.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       49
<PAGE>

                                    The Protane Corporation

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Asia Pacific/Africa/China LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Development Corp.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    ET Power 3 LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Nowa Sarzyna Holding B.V.

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Authorized Representative

                                       50
<PAGE>

                                    Enron South America LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Enron Global Power & Pipelines LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                    Cabazon Power Partners LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Cabazon Holdings LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Enron Caribbean Basin LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  President

                                       51
<PAGE>

                                    Victory Garden Power Partners I LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:   K. Wade Cline
                                       Title:  Vice President

                                    Oswego Cogen Company, LLC

                                    By: /s/ K.Wade Cline
                                       -----------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                    Enron Equipment & Procurement Company

                                    By: /s/ K.Wade Cline
                                        ---------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                    Stephen Forbes Cooper, LLC, as Trustee

                                    By: /s/ Stephen Forbes Copper
                                       -----------------------------------------
                                       Name:   Stephen Forbes Cooper
                                       Title:  Manager

                                       52

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