Document:

EXHIBIT 4.1

                             FIXED RATE SENIOR NOTE

REGISTERED                                                           REGISTERED
No. FXR                                                              U.S. $
                                                                     CUSIP:

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

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                        MORGAN STANLEY DEAN WITTER & CO.
                    SENIOR GLOBAL MEDIUM-TERM NOTE, SERIES C
                                  (Fixed Rate)

                         STOCK PARTICIPATION ACCRETING
                 REDEMPTION QUARTERLY-PAY SECURITIES ("SPARQS")

                          % SPARQS DUE         , 200[ ]
                            MANDATORILY EXCHANGEABLE
                         FOR SHARES OF COMMON STOCK OF
                              CORNING INCORPORATED

<TABLE>
<S>                            <C>                          <C>                          <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION           INTEREST RATE:    %          MATURITY DATE:
                                 DATE: See "Morgan            per annum (equivalent        See "Maturity Date"
                                 Stanley Call Right"          to $      per annum per      below.
                                 below.                       SPARQS)

INTEREST ACCRUAL              INITIAL REDEMPTION           INTEREST PAYMENT             OPTIONAL
   DATE:                         PERCENTAGE: See              DATES:                       REPAYMENT
                                 "Morgan Stanley Call                                      DATE(S):  N/A
                                 Right" below.

SPECIFIED CURRENCY:           ANNUAL REDEMPTION            INTEREST PAYMENT             APPLICABILITY OF
   U.S. Dollars                  PERCENTAGE                   PERIOD: Quarterly            MODIFIED
                                 REDUCTION: N/A                                            PAYMENT UPON
                                                                                           ACCELERATION: See
                                                                                           "Alternate Exchange
                                                                                           Calculation in Case of
                                                                                           an Event of Default"
                                                                                           below.

IF SPECIFIED                  REDEMPTION NOTICE            APPLICABILITY OF             If yes, state Issue Price:
   CURRENCY OTHER                PERIOD: At least 15          ANNUAL INTEREST
   THAN U.S. DOLLARS,            days but no more than        PAYMENTS: N/A
   OPTION TO ELECT               30 days.  See "Morgan
   PAYMENT IN U.S.               Stanley Call Right"
   DOLLARS: N/A                  below.

EXCHANGE RATE                 TAX REDEMPTION                                            ORIGINAL YIELD TO
   AGENT: N/A                    AND PAYMENT OF                                            MATURITY: N/A
                                 ADDITIONAL
                                 AMOUNTS: N/A

OTHER PROVISIONS:             If yes, state Initial
   See below                  Offering Date: N/A
</TABLE>

Issue Price.................................     $         per each $
                                                 principal amount of this SPARQS

Maturity Date...............................                , 200[ ], subject to
                                                 extension in the event of a
                                                 Market Disruption Event on
                                                              , 200[ ].

                                                 If the Final Call Notice Date
                                                 is postponed due to a Market
                                                 Disruption Event or otherwise
                                                 and the Issuer exercises the

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                                                 Morgan Stanley Call Right, the
                                                 Maturity Date shall be
                                                 postponed so that the Maturity
                                                 Date will be the fifteenth
                                                 calendar day following the
                                                 Final Call Notice Date or, if
                                                 such fifteenth calendar day is
                                                 not a scheduled Trading Day,
                                                 the immediately succeeding
                                                 scheduled Trading Day. See
                                                 "Final Call Notice Date"
                                                 below.

                                                 In the event that the Final
                                                 Call Notice Date is postponed
                                                 due to a Market Disruption
                                                 Event or otherwise, the Issuer
                                                 shall give notice of such
                                                 postponement as promptly as
                                                 possible, and in no case later
                                                 than two Business Days
                                                 following the scheduled Final
                                                 Call Notice Date, (i) to the
                                                 holder of this SPARQS by
                                                 mailing notice of such
                                                 postponement by first class
                                                 mail, postage prepaid, to the
                                                 holder's last address as it
                                                 shall appear upon the registry
                                                 books, (ii) to the Trustee by
                                                 telephone or facsimile
                                                 confirmed by mailing such
                                                 notice to the Trustee by first
                                                 class mail, postage prepaid,
                                                 at its New York office and
                                                 (iii) to the Depositary by
                                                 telephone or facsimile
                                                 confirmed by mailing such
                                                 notice to the Depositary by
                                                 first class mail, postage
                                                 prepaid. Any notice that is
                                                 mailed in the manner herein
                                                 provided shall be conclusively
                                                 presumed to have been duly
                                                 given, whether or not the
                                                 holder of this SPARQS receives
                                                 the notice. Notice of the date
                                                 to which the Maturity Date has
                                                 been rescheduled as a result
                                                 of postponement of the Final
                                                 Call Notice Date, if
                                                 applicable, shall be included
                                                 in the Issuer's notice of
                                                 exercise of the Morgan Stanley
                                                 Call Right.

Record Dates................................     Notwithstanding the definition
                                                 of "Record Date" on page 17
                                                 hereof, the Record Date for
                                                 each Interest Payment Date,
                                                 including the Interest Payment
                                                 Date scheduled to occur on the
                                                 Maturity Date, shall be the
                                                 date 10 calendar days prior to
                                                 such Interest Payment Date,
                                                 whether or not that date is a
                                                 Business Day; provided,
                                                 however, that in the event
                                                 that the Issuer exercises the
                                                 Morgan Stanley Call Right, no
                                                 Interest Payment Date shall
                                                 occur after the Morgan Stanley
                                                 Notice Date, except for any
                                                 Interest Payment Date for
                                                 which the Morgan Stanley
                                                 Notice Date falls on or after
                                                 the "ex-interest" date for the
                                                 related interest payment, in
                                                 which case the related
                                                 interest payment shall be made
                                                 on such Interest Payment Date;
                                                 and provided, further, that
                                                 accrued but unpaid interest
                                                 payable on the Call Date, if
                                                 any, shall be payable to the
                                                 person to whom the Call Price
                                                 is payable. The "ex- interest"
                                                 date for any interest payment
                                                 is the date on

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                                                 which purchase transactions in
                                                 the SPARQS no longer carry the
                                                 right to receive such interest
                                                 payment.

                                                 In the event that the Issuer
                                                 exercises the Morgan Stanley
                                                 Call Right and the Morgan
                                                 Stanley Notice Date falls
                                                 before the "ex-interest" date
                                                 for an interest payment, so
                                                 that as a result a scheduled
                                                 Interest Payment Date will not
                                                 occur, the Issuer shall cause
                                                 the Calculation Agent to give
                                                 notice to the Trustee and to
                                                 The Depository Trust Company
                                                 (the "Depositary"), in each
                                                 case in the manner and at the
                                                 time described in the second
                                                 and third paragraphs under
                                                 "Morgan Stanley Call Right"
                                                 below, that no Interest
                                                 Payment Date will occur after
                                                 such Morgan Stanley Notice
                                                 Date.

Denominations...............................     $           and integral
                                                 multiples thereof

Morgan Stanley Call Right...................     On any scheduled Trading Day on
                                                 or after                ,
                                                 200[ ], the Issuer may call
                                                 the SPARQS, in whole but not
                                                 in part, for mandatory
                                                 exchange for the Call Price
                                                 paid in cash (together with
                                                 accrued but unpaid interest)
                                                 on the Call Date.

                                                 On the Morgan Stanley Notice
                                                 Date, the Issuer shall give
                                                 notice of the Issuer's
                                                 exercise of the Morgan Stanley
                                                 Call Right (i) to the holder
                                                 of this SPARQS by mailing
                                                 notice of such exercise,
                                                 specifying the Call Date on
                                                 which the Issuer shall effect
                                                 such exchange, by first class
                                                 mail, postage prepaid, to the
                                                 holder's last address as it
                                                 shall appear upon the registry
                                                 books, (ii) to the Trustee by
                                                 telephone or facsimile
                                                 confirmed by mailing such
                                                 notice to the Trustee by first
                                                 class mail, postage prepaid,
                                                 at its New York office and
                                                 (iii) to the Depositary in
                                                 accordance with the applicable
                                                 procedures set forth in the
                                                 Letter of Representations
                                                 related to this SPARQS. Any
                                                 notice which is mailed in the
                                                 manner herein provided shall
                                                 be conclusively presumed to
                                                 have been duly given, whether
                                                 or not the holder of this
                                                 SPARQS receives the notice.
                                                 Failure to give notice by mail
                                                 or any defect in the notice to
                                                 the holder of any SPARQS shall
                                                 not affect the validity of the
                                                 proceedings for the exercise
                                                 of the Morgan Stanley Call
                                                 Right with respect to any
                                                 other SPARQS.

                                                 The notice of the Issuer's
                                                 exercise of the Morgan Stanley
                                                 Call Right shall specify (i)
                                                 the Call Date, (ii) the Call
                                                 Price payable per SPARQS,
                                                 (iii) the amount of accrued
                                                 but unpaid interest payable
                                                 per SPARQS on the Call

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                                                 Date, (iv) whether any
                                                 subsequently scheduled
                                                 Interest Payment Date shall no
                                                 longer be an Interest Payment
                                                 Date as a result of the
                                                 exercise of the Morgan Stanley
                                                 Call Right, (v) the place or
                                                 places of payment of such Call
                                                 Price, (vi) that such delivery
                                                 will be made upon presentation
                                                 and surrender of this SPARQS,
                                                 (vii) that such exchange is
                                                 pursuant to the Morgan Stanley
                                                 Call Right and (viii) if
                                                 applicable, the date to which
                                                 the Maturity Date has been
                                                 extended due to a Market
                                                 Disruption Event as described
                                                 under "Maturity Date" above.

                                                 The notice of the Issuer's
                                                 exercise of the Morgan Stanley
                                                 Call Right shall be given by
                                                 the Issuer or, at the Issuer's
                                                 request, by the Trustee in the
                                                 name and at the expense of the
                                                 Issuer.

                                                 If this SPARQS is so called
                                                 for mandatory exchange by the
                                                 Issuer, then the cash Call
                                                 Price and any accrued but
                                                 unpaid interest on this SPARQS
                                                 to be delivered to the holder
                                                 of this SPARQS shall be
                                                 delivered on the Call Date
                                                 fixed by the Issuer and set
                                                 forth in its notice of its
                                                 exercise of the Morgan Stanley
                                                 Call Right, upon delivery of
                                                 the SPARQS to the Trustee. The
                                                 Issuer shall, or shall cause
                                                 the Calculation Agent to,
                                                 deliver such cash to the
                                                 Trustee for delivery to the
                                                 holders of this SPARQS.

                                                 If this SPARQS is not
                                                 surrendered for exchange on
                                                 the Call Date, it shall be
                                                 deemed to be no longer
                                                 Outstanding under, and as
                                                 defined in, the Senior
                                                 Indenture after the Call Date,
                                                 except with respect to the
                                                 holder's right to receive cash
                                                 due in connection with the
                                                 Morgan Stanley Call Right.

Morgan Stanley Notice Date..................     The scheduled Trading Day on
                                                 which the Issuer issues its
                                                 notice of mandatory exchange,
                                                 which must be at least 15 but
                                                 not more than 30 days prior to
                                                 the Call Date.

Final Call Notice Date......................             , 200[ ]; provided that
                                                 if      , 200[ ] is not a
                                                 Trading Day or if a Market
                                                 Disruption Event occurs on such
                                                 day, the Final Call Notice Date
                                                 will be the immediately
                                                 succeeding Trading Day on which
                                                 no Market Disruption Event
                                                 occurs.

Call Date...................................     The scheduled Trading Day on or
                                                 after        , 200[ ] and on or
                                                 prior to the Maturity Date
                                                 (including the Maturity Date
                                                 as it may be extended)
                                                 specified in the

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                                                 Issuer's notice of mandatory
                                                 exchange, on which the Issuer
                                                 shall deliver cash to holders
                                                 of SPARQS for mandatory
                                                 exchange. See "Maturity Date"
                                                 above.

Call Price..................................     The Call Price with respect to
                                                 any Call Date is an amount of
                                                 cash per each $       principal
                                                 amount of this SPARQS, as
                                                 calculated by the Calculation
                                                 Agent, such that the sum of
                                                 the present values of all cash
                                                 flows on each $       principal
                                                 amount of this SPARQS to and
                                                 including the Call Date (i.e.,
                                                 the Call Price and all of the
                                                 interest payments on each
                                                 SPARQS), discounted to the
                                                 Original Issue Date from the
                                                 applicable payment date at the
                                                 Yield to Call rate of    % per
                                                 annum computed on the basis of
                                                 a 360-day year of twelve
                                                 30-day months, equals the
                                                 Issue Price.

Exchange at Maturity........................     At maturity, subject to a prior
                                                 call of this SPARQS for cash
                                                 in an amount equal to the Call
                                                 Price by the Issuer as
                                                 described under "Morgan
                                                 Stanley Call Right" above,
                                                 upon delivery of this SPARQS
                                                 to the Trustee, each $
                                                 principal amount of this
                                                 SPARQS shall be applied by the
                                                 Issuer as payment for a number
                                                 of ordinary shares of Corning
                                                 Incorporated ("Corning Stock")
                                                 at the Exchange Ratio, and the
                                                 Issuer shall deliver with
                                                 respect to each $     principal
                                                 amount of this SPARQS an
                                                 amount of Corning Stock equal
                                                 to the Exchange Ratio.

                                                 The amount of Corning Stock to
                                                 be delivered at maturity shall
                                                 be subject to any applicable
                                                 adjustments (i) to the
                                                 Exchange Ratio and (ii) in the
                                                 Exchange Property, as defined
                                                 in paragraph 5 under
                                                 "Antidilution Adjustments"
                                                 below, to be delivered instead
                                                 of, or in addition to, such
                                                 Corning Stock as a result of
                                                 any corporate event described
                                                 under "Antidilution
                                                 Adjustments" below, in each
                                                 case, required to be made
                                                 through the close of business
                                                 on the third Trading Day prior
                                                 to maturity.

                                                 The Issuer shall, or shall
                                                 cause the Calculation Agent
                                                 to, provide written notice to
                                                 the Trustee at its New York
                                                 Office and to the Depositary,
                                                 on which notice the Trustee
                                                 and Depositary may
                                                 conclusively rely, on or prior
                                                 to 10:30 a.m. on the Trading
                                                 Day immediately prior to
                                                 maturity of this SPARQS, of
                                                 the amount of Corning Stock
                                                 (or the amount of Exchange
                                                 Property) to be delivered with
                                                 respect to each $     principal
                                                 amount of this SPARQS and of
                                                 the amount of any cash to be
                                                 paid in lieu of any fractional
                                                 share of Corning Stock (or of
                                                 any

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                                                 other securities included in
                                                 Exchange Property, if
                                                 applicable); provided that if
                                                 the maturity date of this
                                                 SPARQS is accelerated (x)
                                                 because of the consummation of
                                                 a Reorganization Event (as
                                                 defined in paragraph 5 of
                                                 "Antidilution Adjustments"
                                                 below) where the Exchange
                                                 Property consists only of cash
                                                 or (y) because of an event
                                                 described under "Alternate
                                                 Exchange Calculation in Case
                                                 of an Event of Default" or
                                                 otherwise, the Issuer shall
                                                 give notice of such
                                                 acceleration as promptly as
                                                 possible, and in no case later
                                                 than two Business Days
                                                 following such deemed maturity
                                                 date, (i) to the holder of
                                                 this SPARQS by mailing notice
                                                 of such acceleration by first
                                                 class mail, postage prepaid,
                                                 to the holder's last address
                                                 as it shall appear upon the
                                                 registry books, (ii) to the
                                                 Trustee by telephone or
                                                 facsimile confirmed by mailing
                                                 such notice to the Trustee by
                                                 first class mail, postage
                                                 prepaid, at its New York
                                                 office and (iii) to the
                                                 Depositary by telephone or
                                                 facsimile confirmed by mailing
                                                 such notice to the Depositary
                                                 by first class mail, postage
                                                 prepaid. Any notice that is
                                                 mailed in the manner herein
                                                 provided shall be conclusively
                                                 presumed to have been duly
                                                 given, whether or not the
                                                 holder of this SPARQS receives
                                                 the notice. If the maturity of
                                                 this SPARQS is accelerated in
                                                 the manner described in the
                                                 immediately preceding
                                                 sentence, no interest on the
                                                 amounts payable with respect
                                                 to this SPARQS shall accrue
                                                 for the period from and after
                                                 such accelerated maturity
                                                 date; provided that the Issuer
                                                 has deposited with the Trustee
                                                 on such accelerated maturity
                                                 date the Corning Stock, the
                                                 Exchange Property or any cash
                                                 due with respect to such
                                                 acceleration.

                                                 The Issuer shall, or shall
                                                 cause the Calculation Agent
                                                 to, deliver any such shares of
                                                 Corning Stock (or any Exchange
                                                 Property) and cash in respect
                                                 of interest and any fractional
                                                 share of Corning Stock (or any
                                                 Exchange Property) and cash
                                                 otherwise due upon any
                                                 acceleration described above
                                                 to the Trustee for delivery to
                                                 the holder. References to
                                                 payment "per SPARQS" refer to
                                                 each $      principal amount of
                                                 this SPARQS.

                                                 If this SPARQS is not
                                                 surrendered for exchange at
                                                 maturity, it shall be deemed
                                                 to be no longer Outstanding
                                                 under, and as defined in, the
                                                 Senior Indenture, except with
                                                 respect to the holder's right
                                                 to receive the Corning Stock
                                                 (and, if applicable, any
                                                 Exchange Property) due at
                                                 maturity.

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No Fractional Shares........................     Upon delivery of this SPARQS to
                                                 the Trustee at maturity, the
                                                 Issuer shall deliver the
                                                 aggregate number of shares of
                                                 Corning Stock due with respect
                                                 to this SPARQS, as described
                                                 above, but the Issuer shall
                                                 pay cash in lieu of delivering
                                                 any fractional share of
                                                 Corning Stock in an amount
                                                 equal to the corresponding
                                                 fractional Market Price of
                                                 such fraction of a share of
                                                 Corning Stock as determined by
                                                 the Calculation Agent as of
                                                 the second scheduled Trading
                                                 Day prior to maturity of this
                                                 SPARQS.

Exchange Ratio..............................     1.0, subject to adjustment for
                                                 corporate events relating to
                                                 Corning Incorporated
                                                 ("Corning") described under
                                                 "Antidilution Adjustments"
                                                 below.

Market Price................................     If Corning Stock (or any other
                                                 security for which a Market
                                                 Price must be determined) is
                                                 listed on a national
                                                 securities exchange, is a
                                                 security of the Nasdaq
                                                 National Market or is included
                                                 in the OTC Bulletin Board
                                                 Service ("OTC Bulletin Board")
                                                 operated by the National
                                                 Association of Securities
                                                 Dealers, Inc. (the "NASD"),
                                                 the Market Price for one share
                                                 of Corning Stock (or one unit
                                                 of any such other security) on
                                                 any Trading Day means (i) the
                                                 last reported sale price,
                                                 regular way, of the principal
                                                 trading session on such day on
                                                 the principal United States
                                                 securities exchange registered
                                                 under the Securities Exchange
                                                 Act of 1934, as amended (the
                                                 "Exchange Act"), on which
                                                 Corning Stock (or any such
                                                 other security) is listed or
                                                 admitted to trading (which may
                                                 be the Nasdaq National Market
                                                 if it is then a national
                                                 securities exchange) or (ii)
                                                 if not listed or admitted to
                                                 trading on any such securities
                                                 exchange or if such last
                                                 reported sale price is not
                                                 obtainable (even if Corning
                                                 Stock (or any such other
                                                 security) is listed or
                                                 admitted to trading on such
                                                 securities exchange), the last
                                                 reported sale price of the
                                                 principal trading session on
                                                 the over-the-counter market as
                                                 reported on the Nasdaq
                                                 National Market (if it is not
                                                 then a national securities
                                                 exchange) or OTC Bulletin
                                                 Board on such day. If the last
                                                 reported sale price of the
                                                 principal trading session is
                                                 not available pursuant to
                                                 clause (i) or (ii) of the
                                                 preceding sentence because of
                                                 a Market Disruption Event or
                                                 otherwise, the Market Price
                                                 for any Trading Day shall be
                                                 the mean, as determined by the
                                                 Calculation Agent, of the bid
                                                 prices for Corning Stock (or
                                                 any such other security)
                                                 obtained from as many dealers
                                                 in such security, but not
                                                 exceeding three, as will make
                                                 such bid prices available to
                                                 the Calculation Agent. Bids of
                                                 Morgan Stanley & Co.
                                                 Incorporated ("MS &

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                                                 Co.") or any of its affiliates
                                                 may be included in the
                                                 calculation of such mean, but
                                                 only to the extent that any
                                                 such bid is the highest of the
                                                 bids obtained. A "security of
                                                 the Nasdaq National Market"
                                                 shall include a security
                                                 included in any successor to
                                                 such system, and the term "OTC
                                                 Bulletin Board Service" shall
                                                 include any successor service
                                                 thereto.

Trading Day.................................     A day, as determined by the
                                                 Calculation Agent, on which
                                                 trading is generally conducted
                                                 on the New York Stock
                                                 Exchange, Inc. ("NYSE"), the
                                                 American Stock Exchange LLC,
                                                 the Nasdaq National Market,
                                                 the Chicago Mercantile
                                                 Exchange and the Chicago Board
                                                 of Options Exchange and in the
                                                 over-the-counter market for
                                                 equity securities in the
                                                 United States.

Acceleration Event..........................     If on any date the product of
                                                 the Market Price per share of
                                                 Corning Stock and the Exchange
                                                 Ratio is less than $      , as
                                                 determined by the Calculation
                                                 Agent, the maturity date of
                                                 this SPARQS shall be deemed to
                                                 be accelerated to such date,
                                                 and each $       principal
                                                 amount of this SPARQS shall be
                                                 applied by the Issuer as
                                                 payment for a number of shares
                                                 of Corning Stock at the then
                                                 current Exchange Ratio, and the
                                                 Issuer shall deliver with
                                                 respect to each $     principal
                                                 amount of this SPARQS a number
                                                 of shares of Corning Stock
                                                 equal to the Exchange Ratio.
                                                 See also "Antidilution
                                                 Adjustments" below.

Calculation Agent...........................     MS & Co. and its successors.

                                                 All calculations with respect
                                                 to the Exchange Ratio and Call
                                                 Price for the SPARQS shall be
                                                 rounded to the nearest one
                                                 hundred-thousandth, with five
                                                 one-millionths rounded upward
                                                 (e.g., .876545 would be
                                                 rounded to .87655); all dollar
                                                 amounts related to the Call
                                                 Price resulting from such
                                                 calculations shall be rounded
                                                 to the nearest ten-
                                                 thousandth, with five one
                                                 hundred-thousandths rounded
                                                 upward (e.g., .76545 would be
                                                 rounded to .7655); and all
                                                 dollar amounts paid with
                                                 respect to the Call Price on
                                                 the aggregate number of SPARQS
                                                 shall be rounded to the
                                                 nearest cent, with one-half
                                                 cent rounded upward.

                                                 All determinations made by the
                                                 Calculation Agent will be at
                                                 the sole discretion of the
                                                 Calculation Agent and will, in
                                                 the absence of manifest error,
                                                 be conclusive for all purposes
                                                 and binding on the holder of
                                                 this SPARQS and the Issuer.

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Antidilution Adjustments....................     The Exchange Ratio shall be
                                                 adjusted as follows:

                                                     1. If Corning Stock is
                                                 subject to a stock split or
                                                 reverse stock split, then once
                                                 such split has become
                                                 effective, the Exchange Ratio
                                                 shall be adjusted to equal the
                                                 product of the prior Exchange
                                                 Ratio and the number of shares
                                                 issued in such stock split or
                                                 reverse stock split with
                                                 respect to one share of
                                                 Corning Stock.

                                                     2. If Corning Stock is
                                                 subject (i) to a stock
                                                 dividend (issuance of
                                                 additional shares of Corning
                                                 Stock) that is given ratably
                                                 to all holders of shares of
                                                 Corning Stock or (ii) to a
                                                 distribution of Corning Stock
                                                 as a result of the triggering
                                                 of any provision of the
                                                 corporate charter of Corning,
                                                 then once the dividend has
                                                 become effective and Corning
                                                 Stock is trading ex-dividend,
                                                 the Exchange Ratio shall be
                                                 adjusted so that the new
                                                 Exchange Ratio shall equal the
                                                 prior Exchange Ratio plus the
                                                 product of (i) the number of
                                                 shares issued with respect to
                                                 one share of Corning Stock and
                                                 (ii) the prior Exchange Ratio.

                                                     3. There shall be no
                                                 adjustments to the Exchange
                                                 Ratio to reflect cash
                                                 dividends or other
                                                 distributions paid with
                                                 respect to Corning Stock other
                                                 than distributions described
                                                 in clauses (i), (iv) and (v)
                                                 of paragraph 5 below and
                                                 Extraordinary Dividends as
                                                 described below. A cash
                                                 dividend or other distribution
                                                 with respect to Corning Stock
                                                 shall be deemed to be an
                                                 "Extraordinary Dividend" if
                                                 such dividend or other
                                                 distribution exceeds the
                                                 immediately preceding
                                                 non-Extraordinary Dividend for
                                                 Corning Stock by an amount
                                                 equal to at least 10% of the
                                                 Market Price of Corning Stock
                                                 (as adjusted for any
                                                 subsequent corporate event
                                                 requiring an adjustment
                                                 hereunder, such as a stock
                                                 split or reverse stock split)
                                                 on the Trading Day preceding
                                                 the ex-dividend date for the
                                                 payment of such Extraordinary
                                                 Dividend (the "ex- dividend
                                                 date"). If an Extraordinary
                                                 Dividend occurs with respect
                                                 to Corning Stock, the Exchange
                                                 Ratio with respect to Corning
                                                 Stock shall be adjusted on the
                                                 ex- dividend date with respect
                                                 to such Extraordinary Dividend
                                                 so that the new Exchange Ratio
                                                 shall equal the product of (i)
                                                 the then current Exchange
                                                 Ratio and (ii) a fraction, the
                                                 numerator of which is the
                                                 Market Price on the Trading
                                                 Day preceding the ex-dividend
                                                 date, and the denominator of
                                                 which is the amount by which
                                                 the Market Price on the
                                                 Trading Day preceding the
                                                 ex-dividend date exceeds the
                                                 Extraordinary Dividend Amount.
                                                 The

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                                                 "Extraordinary Dividend
                                                 Amount" with respect to an
                                                 Extraordinary Dividend for
                                                 Corning Stock shall equal (i)
                                                 in the case of cash dividends
                                                 or other distributions that
                                                 constitute regular dividends,
                                                 the amount per share of such
                                                 Extraordinary Dividend minus
                                                 the amount per share of the
                                                 immediately preceding
                                                 non-Extraordinary Dividend for
                                                 Corning Stock or (ii) in the
                                                 case of cash dividends or
                                                 other distributions that do
                                                 not constitute regular
                                                 dividends, the amount per
                                                 share of such Extraordinary
                                                 Dividend. To the extent an
                                                 Extraordinary Dividend is not
                                                 paid in cash, the value of the
                                                 non-cash component shall be
                                                 determined by the Calculation
                                                 Agent, whose determination
                                                 shall be conclusive. A
                                                 distribution on Corning Stock
                                                 described in clause (i), (iv)
                                                 or (v) of paragraph 5 below
                                                 that also constitutes an
                                                 Extraordinary Dividend shall
                                                 cause an adjustment to the
                                                 Exchange Ratio pursuant only
                                                 to clause (i), (iv) or (v) of
                                                 paragraph 5, as applicable.

                                                     4. If Corning issues
                                                 rights or warrants to all
                                                 holders of Corning Stock to
                                                 subscribe for or purchase
                                                 Corning Stock at an exercise
                                                 price per share less than the
                                                 Market Price of Corning Stock
                                                 on both (i) the date the
                                                 exercise price of such rights
                                                 or warrants is determined and
                                                 (ii) the expiration date of
                                                 such rights or warrants, and
                                                 if the expiration date of such
                                                 rights or warrants precedes
                                                 the maturity of this SPARQS,
                                                 then the Exchange Ratio shall
                                                 be adjusted to equal the
                                                 product of the prior Exchange
                                                 Ratio and a fraction, the
                                                 numerator of which shall be
                                                 the number of shares of
                                                 Corning Stock outstanding
                                                 immediately prior to the
                                                 issuance of such rights or
                                                 warrants plus the number of
                                                 additional shares of Corning
                                                 Stock offered for subscription
                                                 or purchase pursuant to such
                                                 rights or warrants and the
                                                 denominator of which shall be
                                                 the number of shares of
                                                 Corning Stock outstanding
                                                 immediately prior to the
                                                 issuance of such rights or
                                                 warrants plus the number of
                                                 additional shares of Corning
                                                 Stock which the aggregate
                                                 offering price of the total
                                                 number of shares of Corning
                                                 Stock so offered for
                                                 subscription or purchase
                                                 pursuant to such rights or
                                                 warrants would purchase at the
                                                 Market Price on the expiration
                                                 date of such rights or
                                                 warrants, which shall be
                                                 determined by multiplying such
                                                 total number of shares offered
                                                 by the exercise price of such
                                                 rights or warrants and
                                                 dividing the product so
                                                 obtained by such Market Price.

                                     A-11

<PAGE>

                                                     5. If (i) there occurs any
                                                 reclassification or change of
                                                 Corning Stock, including,
                                                 without limitation, as a
                                                 result of the issuance of any
                                                 tracking stock by Corning,
                                                 (ii) Corning or any surviving
                                                 entity or subsequent surviving
                                                 entity of Corning (a "Corning
                                                 Successor") has been subject
                                                 to a merger, combination or
                                                 consolidation and is not the
                                                 surviving entity, (iii) any
                                                 statutory exchange of
                                                 securities of Corning or any
                                                 Corning Successor with another
                                                 corporation occurs (other than
                                                 pursuant to clause (ii)
                                                 above), (iv) Corning is
                                                 liquidated, (v) Corning issues
                                                 to all of its shareholders
                                                 equity securities of an issuer
                                                 other than Corning (other than
                                                 in a transaction described in
                                                 clause (ii), (iii) or (iv)
                                                 above) (a "Spin-off Event") or
                                                 (vi) a tender or exchange
                                                 offer or going-private
                                                 transaction is consummated for
                                                 all the outstanding shares of
                                                 Corning Stock (any such event
                                                 in clauses (i) through (vi), a
                                                 "Reorganization Event"), the
                                                 method of determining the
                                                 amount payable upon exchange
                                                 at maturity for this SPARQS
                                                 shall be adjusted to provide
                                                 that the holder of this SPARQS
                                                 shall be entitled to receive
                                                 at maturity, in respect of
                                                 each $      principal amount of
                                                 this SPARQS, securities, cash
                                                 or any other assets
                                                 distributed to holders of
                                                 Corning Stock in or as a
                                                 result of any such
                                                 Reorganization Event,
                                                 including (i) in the case of
                                                 the issuance of tracking
                                                 stock, the reclassified share
                                                 of Corning Stock, (ii) in the
                                                 case of a Spin-off Event, the
                                                 share of Corning Stock with
                                                 respect to which the spun-off
                                                 security was issued, and (iii)
                                                 in the case of any other
                                                 Reorganization Event where
                                                 Corning Stock continues to be
                                                 held by the holders receiving
                                                 such distribution, the Corning
                                                 Stock (collectively, the
                                                 "Exchange Property"), in an
                                                 amount with a value equal to
                                                 the amount of Exchange
                                                 Property delivered with
                                                 respect to a number of shares
                                                 of Corning Stock equal to the
                                                 Exchange Ratio at the time of
                                                 the Reorganization Event.
                                                 Notwithstanding the above, if
                                                 the Exchange Property received
                                                 in any such Reorganization
                                                 Event consists only of cash,
                                                 the maturity date of this
                                                 SPARQS shall be deemed to be
                                                 accelerated to the date on
                                                 which such cash is distributed
                                                 to holders of Corning Stock
                                                 and the holder of this SPARQS
                                                 shall receive in lieu of any
                                                 Corning Stock and as
                                                 liquidated damages in full
                                                 satisfaction of the Issuer's
                                                 obligations under this SPARQS
                                                 the lesser of (i) the product
                                                 of (x) the amount of cash
                                                 received per share of Corning
                                                 Stock and (y) the then current
                                                 Exchange Ratio and (ii) the
                                                 Call Price calculated as
                                                 though the date of
                                                 acceleration were the Call
                                                 Date (regardless of whether
                                                 the

                                     A-12

<PAGE>

                                                 date of acceleration is a day
                                                 which occurs prior to     ,
                                                 200[ ]). If Exchange Property
                                                 consists of more than one type
                                                 of property, the holder of
                                                 this SPARQS shall receive at
                                                 maturity a pro rata share of
                                                 each such type of Exchange
                                                 Property. If Exchange Property
                                                 includes a cash component, the
                                                 holder of this SPARQS will not
                                                 receive any interest accrued
                                                 on such cash component. In the
                                                 event Exchange Property
                                                 consists of securities, those
                                                 securities shall, in turn, be
                                                 subject to the antidilution
                                                 adjustments set forth in
                                                 paragraphs 1 through 5.

                                                 For purposes of paragraph 5
                                                 above, in the case of a
                                                 consummated tender or exchange
                                                 offer or going-private
                                                 transaction involving Exchange
                                                 Property of a particular type,
                                                 Exchange Property shall be
                                                 deemed to include the amount
                                                 of cash or other property paid
                                                 by the offeror in the tender
                                                 or exchange offer with respect
                                                 to such Exchange Property (in
                                                 an amount determined on the
                                                 basis of the rate of exchange
                                                 in such tender or exchange
                                                 offer or going- private
                                                 transaction). In the event of
                                                 a tender or exchange offer or
                                                 a going-private transaction
                                                 with respect to Exchange
                                                 Property in which an offeree
                                                 may elect to receive cash or
                                                 other property, Exchange
                                                 Property shall be deemed to
                                                 include the kind and amount of
                                                 cash and other property
                                                 received by offerees who elect
                                                 to receive cash.

                                                 No adjustment to the Exchange
                                                 Ratio shall be required unless
                                                 such adjustment would require
                                                 a change of at least 0.1% in
                                                 the Exchange Ratio then in
                                                 effect. The Exchange Ratio
                                                 resulting from any of the
                                                 adjustments specified above
                                                 will be rounded to the nearest
                                                 one hundred- thousandth, with
                                                 five one-millionths rounded
                                                 upward. With respect to the
                                                 Maturity Date, adjustments to
                                                 the Exchange Ratio will be
                                                 made up to the close of
                                                 business on the third Trading
                                                 Day prior to the Maturity
                                                 Date.

                                                 No adjustments to the Exchange
                                                 Ratio or method of calculating
                                                 the Exchange Ratio shall be
                                                 made other than those
                                                 specified above. The
                                                 adjustments specified above do
                                                 not cover all events that
                                                 could affect the Market Price
                                                 of Corning Stock, including,
                                                 without limitation, a partial
                                                 tender or exchange offer for
                                                 Corning Stock.

                                                 The Calculation Agent shall be
                                                 solely responsible for the
                                                 determination and calculation
                                                 of any adjustments to the
                                                 Exchange Ratio or method of
                                                 calculating the Exchange

                                     A-13

<PAGE>

                                                 Ratio and of any related
                                                 determinations and
                                                 calculations with respect to
                                                 any distributions of stock,
                                                 other securities or other
                                                 property or assets (including
                                                 cash) in connection with any
                                                 corporate event described in
                                                 paragraph 5 above, and its
                                                 determinations and
                                                 calculations with respect
                                                 thereto shall be conclusive in
                                                 the absence of manifest error.

                                                 The Calculation Agent shall
                                                 provide information as to any
                                                 adjustments to the Exchange
                                                 Ratio or to the method of
                                                 calculating the amount payable
                                                 upon exchange at maturity of
                                                 the SPARQS in accordance with
                                                 paragraph 5 above upon written
                                                 request by any holder of this
                                                 SPARQS.

Market Disruption Event.....................     "Market Disruption Event"
                                                 means, with respect to Corning
                                                 Stock (and any other security
                                                 that may be included as
                                                 Exchange Property):

                                                     (i) a suspension, absence
                                                     or material limitation of
                                                     trading of Corning Stock
                                                     (or any such other
                                                     security) on the primary
                                                     market for Corning Stock
                                                     (or any such other
                                                     security) for more than
                                                     two hours of trading or
                                                     during the one-half hour
                                                     period preceding the close
                                                     of the principal trading
                                                     session in such market; or
                                                     a breakdown or failure in
                                                     the price and trade
                                                     reporting systems of the
                                                     primary market for Corning
                                                     Stock (or any such other
                                                     security) as a result of
                                                     which the reported trading
                                                     prices for Corning Stock
                                                     (or any such other
                                                     security) during the last
                                                     one-half hour preceding
                                                     the close of the principal
                                                     trading session in such
                                                     market are materially
                                                     inaccurate; or the
                                                     suspension, absence or
                                                     material limitation of
                                                     trading on the primary
                                                     market for trading in
                                                     options contracts related
                                                     to Corning Stock (or any
                                                     such other security), if
                                                     available, during the
                                                     one-half hour period
                                                     preceding the close of the
                                                     principal trading session
                                                     in the applicable market,
                                                     in each case as determined
                                                     by the Calculation Agent
                                                     in its sole discretion;
                                                     and

                                                     (ii) a determination by
                                                     the Calculation Agent in
                                                     its sole discretion that
                                                     any event described in
                                                     clause (i) above
                                                     materially interfered with
                                                     the ability of the Issuer
                                                     or any of its affiliates
                                                     to unwind or adjust all or
                                                     a material portion of the
                                                     hedge with respect to the
                                                     SPARQS.

                                     A-14

<PAGE>

                                                 For purposes of determining
                                                 whether a Market Disruption
                                                 Event has occurred: (1) a
                                                 limitation on the hours or
                                                 number of days of trading
                                                 shall not constitute a Market
                                                 Disruption Event if it results
                                                 from an announced change in
                                                 the regular business hours of
                                                 the relevant exchange, (2) a
                                                 decision to permanently
                                                 discontinue trading in the
                                                 relevant options contract
                                                 shall not constitute a Market
                                                 Disruption Event, (3)
                                                 limitations pursuant to NYSE
                                                 Rule 80A (or any applicable
                                                 rule or regulation enacted or
                                                 promulgated by the NYSE, any
                                                 other self-regulatory
                                                 organization or the Securities
                                                 and Exchange Commission of
                                                 scope similar to NYSE Rule 80A
                                                 as determined by the
                                                 Calculation Agent) on trading
                                                 during significant market
                                                 fluctuations shall constitute
                                                 a suspension, absence or
                                                 material limitation of
                                                 trading, (4) a suspension of
                                                 trading in options contracts
                                                 on Corning Stock (or any such
                                                 other security) by the primary
                                                 securities market trading in
                                                 such options, if available, by
                                                 reason of (x) a price change
                                                 exceeding limits set by such
                                                 securities exchange or market,
                                                 (y) an imbalance of orders
                                                 relating to such contracts or
                                                 (z) a disparity in bid and ask
                                                 quotes relating to such
                                                 contracts shall constitute a
                                                 suspension, absence or
                                                 material limitation of trading
                                                 in options contracts related
                                                 to Corning Stock (or any such
                                                 other security) and (5) a
                                                 suspension, absence or
                                                 material limitation of trading
                                                 on the primary securities
                                                 market on which options
                                                 contracts related to Corning
                                                 Stock (or any such other
                                                 security) are traded shall not
                                                 include any time when such
                                                 securities market is itself
                                                 closed for trading under
                                                 ordinary circumstances.

Alternate Exchange Calculation
in Case of an Event of Default..............     In case an event of default
                                                 with respect to the SPARQS
                                                 shall have occurred and be
                                                 continuing, the amount
                                                 declared due and payable per
                                                 each $     principal amount of
                                                 this SPARQS upon any
                                                 acceleration of this SPARQS
                                                 shall be determined by the
                                                 Calculation Agent and shall be
                                                 an amount in cash equal to the
                                                 lesser of (i) the product of
                                                 (x) the Market Price of
                                                 Corning Stock (and any
                                                 Exchange Property) as of the
                                                 date of such acceleration and
                                                 (y) the then current Exchange
                                                 Ratio and (ii) the Call Price
                                                 calculated as though the date
                                                 of acceleration were the Call
                                                 Date (regardless of whether
                                                 the date of acceleration is a
                                                 day which occurs prior to     ,
                                                 200[ ]), in each case plus
                                                 accrued but unpaid interest to
                                                 but excluding the date of
                                                 acceleration; provided that if
                                                 the Issuer has called the
                                                 SPARQS in accordance

                                      A-15

<PAGE>

                                                 with the Morgan Stanley Call
                                                 Right, the amount declared due
                                                 and payable upon any such
                                                 acceleration shall be an
                                                 amount in cash for each $
                                                 principal amount of the SPARQS
                                                 equal to the Call Price
                                                 calculated as though the date
                                                 of acceleration were the Call
                                                 Date, plus accrued but unpaid
                                                 interest to but excluding the
                                                 date of acceleration.

Treatment of SPARQS for
United States Federal
Income Tax Purposes.........................     The Issuer, by its sale of this
                                                 SPARQS, and the holder of this
                                                 SPARQS (and any successor
                                                 holder of this SPARQS), by its
                                                 respective purchase hereof,
                                                 agree (in the absence of an
                                                 administrative determination
                                                 or judicial ruling to the
                                                 contrary) to characterize each
                                                 $     principal amount of this
                                                 SPARQS for all tax purposes as
                                                 an investment unit consisting
                                                 of (A) a terminable contract
                                                 (the "Terminable Forward
                                                 Contract") that (i) requires
                                                 the holder of this SPARQS
                                                 (subject to the Morgan Stanley
                                                 Call Right) to purchase, and
                                                 the Issuer to sell, for an
                                                 amount equal to $       (the
                                                 "Forward Price"), Corning
                                                 Stock at maturity and (ii)
                                                 allows the Issuer, upon
                                                 exercise of the Morgan Stanley
                                                 Call Right, to terminate the
                                                 Terminable Forward Contract by
                                                 returning to such holder the
                                                 Deposit (as defined below) and
                                                 paying to such holder an
                                                 amount of cash equal to the
                                                 difference between the Deposit
                                                 and the Call Price and (B) a
                                                 deposit with the Issuer of a
                                                 fixed amount of cash, equal to
                                                 the Issue Price per each $
                                                 principal amount of this
                                                 SPARQS, to secure the holder's
                                                 obligation to purchase Corning
                                                 Stock pursuant to the
                                                 Terminable Forward Contract
                                                 (the "Deposit"), which Deposit
                                                 bears an annual yield of   %
                                                 per annum.

                                     A-16

<PAGE>

         Morgan Stanley Dean Witter & Co., a Delaware corporation (together
with its successors and assigns, the "Issuer"), for value received, hereby
promises to pay to CEDE & CO., or registered assignees, the amount of Corning
Stock (or other Exchange Property), as determined in accordance with the
provisions set forth under "Exchange at Maturity" above, due with respect to
the principal sum of U.S. $     (UNITED STATES DOLLARS                ) on the
Maturity Date specified above (except to the extent redeemed or repaid prior to
maturity) and to pay interest thereon at the Interest Rate per annum specified
above, from and including the Interest Accrual Date specified above until the
principal hereof is paid or duly made available for payment weekly, monthly,
quarterly, semiannually or annually in arrears as specified above as the
Interest Payment Period on each Interest Payment Date (as specified above),
commencing on the Interest Payment Date next succeeding the Interest Accrual
Date specified above, and at maturity (or on any redemption or repayment date);
provided, however, that if the Interest Accrual Date occurs between a Record
Date, as defined below, and the next succeeding Interest Payment Date, interest
payments will commence on the second Interest Payment Date succeeding the
Interest Accrual Date to the registered holder of this Note on the Record Date
with respect to such second Interest Payment Date; and provided, further, that
if this Note is subject to "Annual Interest Payments," interest payments shall
be made annually in arrears and the term "Interest Payment Date" shall be
deemed to mean the first day of March in each year.

         Interest on this Note will accrue from and including the most recent
date to which interest has been paid or duly provided for, or, if no interest
has been paid or duly provided for, from and including the Interest Accrual
Date, until, but excluding the date the principal hereof has been paid or duly
made available for payment. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, subject to certain
exceptions described herein, be paid to the person in whose name this Note (or
one or more predecessor Notes) is registered at the close of business on the
date 15 calendar days prior to such Interest Payment Date (whether or not a
Business Day (as defined below)) (each such date, a "Record Date"); provided,
however, that interest payable at maturity (or any redemption or repayment
date) will be payable to the person to whom the principal hereof shall be
payable. As used herein, "Business Day" means any day, other than a Saturday or
Sunday, (a) that is neither a legal holiday nor a day on which banking
institutions are authorized or required by law or regulation to close (x) in
The City of New York or (y) if this Note is denominated in a Specified Currency
other than U.S. dollars, euro or Australian dollars, in the principal financial
center of the country of the Specified Currency, or (z) if this Note is
denominated in Australian dollars, in Sydney and (b) if this Note is
denominated in euro, that is also a day on which the Trans-European Automated
Real-time Gross Settlement Express Transfer System ("TARGET") is operating (a
"TARGET Settlement Day").

         Payment of the principal of this Note, any premium and the interest
due at maturity (or any redemption or repayment date), unless this Note is
denominated in a Specified Currency other than U.S. dollars and is to be paid
in whole or in part in such Specified Currency, will be made in immediately
available funds upon surrender of this Note at the office or agency of the
Paying Agent, as defined on the reverse hereof, maintained for that purpose in
the Borough of Manhattan, The City of New York, or at such other paying agency
as the Issuer may determine, in U.S. dollars. U.S. dollar payments of interest,
other than interest due at maturity or on any date of redemption or repayment,
will be made by U.S. dollar check mailed to the address of the person entitled
thereto as such address shall appear in the Note register. A holder of U.S.
$10,000,000 (or the equivalent in a Specified Currency) or more in aggregate
principal amount of Notes having the same Interest

                                     A-17

<PAGE>

Payment Date, the interest on which is payable in U.S. dollars, shall be
entitled to receive payments of interest, other than interest due at maturity
or on any date of redemption or repayment, by wire transfer of immediately
available funds if appropriate wire transfer instructions have been received by
the Paying Agent in writing not less than 15 calendar days prior to the
applicable Interest Payment Date.

         If this Note is denominated in a Specified Currency other than U.S.
dollars, and the holder does not elect (in whole or in part) to receive payment
in U.S. dollars pursuant to the next succeeding paragraph, payments of
interest, principal or any premium with regard to this Note will be made by
wire transfer of immediately available funds to an account maintained by the
holder hereof with a bank located outside the United States if appropriate wire
transfer instructions have been received by the Paying Agent in writing, with
respect to payments of interest, on or prior to the fifth Business Day after
the applicable Record Date and, with respect to payments of principal or any
premium, at least ten Business Days prior to the Maturity Date or any
redemption or repayment date, as the case may be; provided that, if payment of
interest, principal or any premium with regard to this Note is payable in euro,
the account must be a euro account in a country for which the euro is the
lawful currency, provided, further, that if such wire transfer instructions are
not received, such payments will be made by check payable in such Specified
Currency mailed to the address of the person entitled thereto as such address
shall appear in the Note register; and provided, further, that payment of the
principal of this Note, any premium and the interest due at maturity (or on any
redemption or repayment date) will be made upon surrender of this Note at the
office or agency referred to in the preceding paragraph.

         If so indicated on the face hereof, the holder of this Note, if
denominated in a Specified Currency other than U.S. dollars, may elect to
receive all or a portion of payments on this Note in U.S. dollars by
transmitting a written request to the Paying Agent, on or prior to the fifth
Business Day after such Record Date or at least ten Business Days prior to the
Maturity Date or any redemption or repayment date, as the case may be. Such
election shall remain in effect unless such request is revoked by written
notice to the Paying Agent as to all or a portion of payments on this Note at
least five Business Days prior to such Record Date, for payments of interest,
or at least ten days prior to the Maturity Date or any redemption or repayment
date, for payments of principal, as the case may be.

         If the holder elects to receive all or a portion of payments of
principal of and any premium and interest on this Note, if denominated in a
Specified Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate
Agent (as defined on the reverse hereof) will convert such payments into U.S.
dollars. In the event of such an election, payment in respect of this Note will
be based upon the exchange rate as determined by the Exchange Rate Agent based
on the highest bid quotation in The City of New York received by such Exchange
Rate Agent at approximately 11:00 a.m., New York City time, on the second
Business Day preceding the applicable payment date from three recognized
foreign exchange dealers (one of which may be the Exchange Rate Agent unless
such Exchange Rate Agent is an affiliate of the Issuer) for the purchase by the
quoting dealer of U.S. dollars for the Specified Currency for settlement on
such payment date in the amount of the Specified Currency payable in the
absence of such an election to such holder and at which the applicable dealer
commits to execute a contract. If such bid quotations are not available, such
payment will be made in the Specified Currency. All currency exchange costs
will be borne by the holder of this Note by deductions from such payments.

                                     A-18

<PAGE>

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

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Note
shall not be entitled to any benefit under the Senior Indenture, as defined on
the reverse hereof, or be valid or obligatory for any purpose.

                                     A-19

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

DATED:                               MORGAN STANLEY DEAN WITTER & CO.

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

TRUSTEE'S CERTIFICATE
  OF AUTHENTICATION

This is one of the Notes
referred to in the within-
mentioned Senior Indenture.

THE CHASE MANHATTAN BANK,
  as Trustee

By:------------------------------------------------
   Authorized Officer

                                     A-20

<PAGE>

                              REVERSE OF SECURITY

         This Note is one of a duly authorized issue of Senior Global
Medium-Term Notes, Series C, having maturities more than nine months from the
date of issue (the "Notes") of the Issuer. The Notes are issuable under an
Amended and Restated Senior Indenture, dated as of May 1, 1999, between the
Issuer and The Chase Manhattan Bank, as Trustee (the "Trustee," which term
includes any successor trustee under the Senior Indenture) (as may be amended
or supplemented from time to time, the "Senior Indenture"), to which Senior
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities of the Issuer, the Trustee and holders of the Notes and the terms
upon which the Notes are, and are to be, authenticated and delivered. The
Issuer has appointed The Chase Manhattan Bank at its corporate trust office in
The City of New York as the paying agent (the "Paying Agent," which term
includes any additional or successor Paying Agent appointed by the Issuer) with
respect to the Notes. The terms of individual Notes may vary with respect to
interest rates, interest rate formulas, issue dates, maturity dates, or
otherwise, all as provided in the Senior Indenture. To the extent not
inconsistent herewith, the terms of the Senior Indenture are hereby
incorporated by reference herein.

         Unless otherwise indicated on the face hereof, this Note will not be
subject to any sinking fund and, unless otherwise provided on the face hereof
in accordance with the provisions of the following two paragraphs, will not be
redeemable or subject to repayment at the option of the holder prior to
maturity.

         If so indicated on the face hereof, this Note may be redeemed in whole
or in part at the option of the Issuer on or after the Initial Redemption Date
specified on the face hereof on the terms set forth on the face hereof,
together with interest accrued and unpaid hereon to the date of redemption. If
this Note is subject to "Annual Redemption Percentage Reduction," the Initial
Redemption Percentage indicated on the face hereof will be reduced on each
anniversary of the Initial Redemption Date by the Annual Redemption Percentage
Reduction specified on the face hereof until the redemption price of this Note
is 100% of the principal amount hereof, together with interest accrued and
unpaid hereon to the date of redemption. Notice of redemption shall be mailed
to the registered holders of the Notes designated for redemption at their
addresses as the same shall appear on the Note register not less than 30 nor
more than 60 days prior to the date fixed for redemption or within the
Redemption Notice Period specified on the face hereof, subject to all the
conditions and provisions of the Senior Indenture. In the event of redemption
of this Note in part only, a new Note or Notes for the amount of the unredeemed
portion hereof shall be issued in the name of the holder hereof upon the
cancellation hereof.

         If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments
of $1,000 or, if this Note is denominated in a Specified Currency other than
U.S. dollars, in increments of 1,000 units of such Specified Currency (provided
that any remaining principal amount hereof shall not be less than the minimum
authorized denomination hereof) at the option of the holder hereof at a price
equal to 100% of the principal amount to be repaid, together with interest
accrued and unpaid hereon to the date of repayment. For this Note to be repaid
at the option of the holder hereof, the Paying Agent must receive at its
corporate trust office in the Borough of Manhattan, The City of New York, at
least 15 but not more than 30 days prior to the date of

                                     A-21

<PAGE>

repayment, (i) this Note with the form entitled "Option to Elect Repayment"
below duly completed or (ii) a telegram, telex, facsimile transmission or a
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or a trust company
in the United States setting forth the name of the holder of this Note, the
principal amount hereof, the certificate number of this Note or a description
of this Note's tenor and terms, the principal amount hereof to be repaid, a
statement that the option to elect repayment is being exercised thereby and a
guarantee that this Note, together with the form entitled "Option to Elect
Repayment" duly completed, will be received by the Paying Agent not later than
the fifth Business Day after the date of such telegram, telex, facsimile
transmission or letter; provided, that such telegram, telex, facsimile
transmission or letter shall only be effective if this Note and form duly
completed are received by the Paying Agent by such fifth Business Day. Exercise
of such repayment option by the holder hereof shall be irrevocable. In the
event of repayment of this Note in part only, a new Note or Notes for the
amount of the unpaid portion hereof shall be issued in the name of the holder
hereof upon the cancellation hereof.

         Interest payments on this Note will include interest accrued to but
excluding the Interest Payment Dates or the Maturity Date (or any earlier
redemption or repayment date), as the case may be. Unless otherwise provided on
the face hereof, interest payments for this Note will be computed and paid on
the basis of a 360-day year of twelve 30-day months.

         In the case where the Interest Payment Date or the Maturity Date (or
any redemption or repayment date) does not fall on a Business Day, payment of
interest, premium, if any, or principal otherwise payable on such date 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 Interest Payment Date or on the
Maturity Date (or any redemption or repayment date), and no interest on such
payment shall accrue for the period from and after the Interest Payment Date or
the Maturity Date (or any redemption or repayment date) to such next succeeding
Business Day.

         This Note and all the obligations of the Issuer hereunder are direct,
unsecured obligations of the Issuer and rank without preference or priority
among themselves and pari passu with all other existing and future unsecured
and unsubordinated indebtedness of the Issuer, subject to certain statutory
exceptions in the event of liquidation upon insolvency.

         This Note, and any Note or Notes issued upon transfer or exchange
hereof, is issuable only in fully registered form, without coupons, and, if
denominated in U.S. dollars, unless otherwise stated above, is issuable only in
denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess
thereof. If this Note is denominated in a Specified Currency other than U.S.
dollars, then, unless a higher minimum denomination is required by applicable
law, it is issuable only in denominations of the equivalent of U.S. $1,000
(rounded to an integral multiple of 1,000 units of such Specified Currency), or
any amount in excess thereof which is an integral multiple of 1,000 units of
such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency
published by the Federal Reserve Bank of New York (the "Market Exchange Rate")
on the Business Day immediately preceding the date of issuance.

          The Trustee has been appointed registrar for the Notes, and the
Trustee will maintain at its office in The City of New York a register for the
registration and transfer of Notes. This Note may

                                     A-22

<PAGE>

be transferred at the aforesaid office of the Trustee by surrendering this Note
for cancellation, accompanied by a written instrument of transfer in form
satisfactory to the Trustee and duly executed by the registered holder hereof
in person or by the holder's attorney duly authorized in writing, and thereupon
the Trustee shall issue in the name of the transferee or transferees, in
exchange herefor, a new Note or Notes having identical terms and provisions and
having a like aggregate principal amount in authorized denominations, subject
to the terms and conditions set forth herein; provided, however, that the
Trustee will not be required (i) to register the transfer of or exchange any
Note that has been called for redemption in whole or in part, except the
unredeemed portion of Notes being redeemed in part, (ii) to register the
transfer of or exchange any Note if the holder thereof has exercised his right,
if any, to require the Issuer to repurchase such Note in whole or in part,
except the portion of such Note not required to be repurchased, or (iii) to
register the transfer of or exchange Notes to the extent and during the period
so provided in the Senior Indenture with respect to the redemption of Notes.
Notes are exchangeable at said office for other Notes of other authorized
denominations of equal aggregate principal amount having identical terms and
provisions. All such exchanges and transfers of Notes will be free of charge,
but the Issuer may require payment of a sum sufficient to cover any tax or
other governmental charge in connection therewith. All Notes surrendered for
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Trustee and executed by the registered holder in person or
by the holder's attorney duly authorized in writing. The date of registration
of any Note delivered upon any exchange or transfer of Notes shall be such that
no gain or loss of interest results from such exchange or transfer.

         In case this Note shall at any time become mutilated, defaced or be
destroyed, lost or stolen and this Note or evidence of the loss, theft or
destruction thereof (together with the indemnity hereinafter referred to and
such other documents or proof as may be required in the premises) shall be
delivered to the Trustee, the Issuer in its discretion may execute a new Note
of like tenor in exchange for this Note, but, if this Note is destroyed, lost
or stolen, only upon receipt of evidence satisfactory to the Trustee and the
Issuer that this Note was destroyed or lost or stolen and, if required, upon
receipt also of indemnity satisfactory to each of them. All expenses and
reasonable charges associated with procuring such indemnity and with the
preparation, authentication and delivery of a new Note shall be borne by the
owner of the Note mutilated, defaced, destroyed, lost or stolen.

         The Senior Indenture provides that (a) if an Event of Default (as
defined in the Senior Indenture) due to the default in payment of principal of,
premium, if any, or interest on, any series of debt securities issued under the
Senior Indenture, including the series of Senior Medium-Term Notes of which
this Note forms a part, or due to the default in the performance or breach of
any other covenant or warranty of the Issuer applicable to the debt securities
of such series but not applicable to all outstanding debt securities issued
under the Senior Indenture shall have occurred and be continuing, either the
Trustee or the holders of not less than 25% in principal amount of the debt
securities of each affected series (voting as a single class) may then declare
the principal of all debt securities of all such series and interest accrued
thereon to be due and payable immediately and (b) if an Event of Default due to
a default in the performance of any other of the covenants or agreements in the
Senior Indenture applicable to all outstanding debt securities issued
thereunder, including this Note, or due to certain events of bankruptcy or
insolvency of the Issuer, shall have occurred and be continuing, either the
Trustee or the holders of not less than 25% in principal amount of all debt
securities issued under the Senior Indenture then outstanding (treated as one

                                     A-23

<PAGE>

class) may declare the principal of all such debt securities and interest
accrued thereon to be due and payable immediately, but upon certain conditions
such declarations may be annulled and past defaults may be waived (except a
continuing default in payment of principal (or premium, if any) or interest on
such debt securities) by the holders of a majority in principal amount of the
debt securities of all affected series then outstanding.

         If the face hereof indicates that this Note is subject to "Modified
Payment upon Acceleration," then (i) if the principal hereof is declared to be
due and payable as described in the preceding paragraph, the amount of
principal due and payable with respect to this Note shall be limited to the
aggregate principal amount hereof multiplied by the sum of the Issue Price
specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of declaration, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of declaration), (ii) for the
purpose of any vote of securityholders taken pursuant to the Senior Indenture
prior to the acceleration of payment of this Note, the principal amount hereof
shall equal the amount that would be due and payable hereon, calculated as set
forth in clause (i) above, if this Note were declared to be due and payable on
the date of any such vote and (iii) for the purpose of any vote of
securityholders taken pursuant to the Senior Indenture following the
acceleration of payment of this Note, the principal amount hereof shall equal
the amount of principal due and payable with respect to this Note, calculated
as set forth in clause (i) above.

         If the face hereof indicates that this Note is subject to "Tax
Redemption and Payment of Additional Amounts," this Note may be redeemed, as a
whole, at the option of the Issuer at any time prior to maturity, upon the
giving of a notice of redemption as described below, at a redemption price
equal to 100% of the principal amount hereof, together with accrued interest to
the date fixed for redemption (except that if this Note is subject to "Modified
Payment upon Acceleration or Redemption," such redemption price would be
limited to the aggregate principal amount hereof multiplied by the sum of the
Issue Price specified on the face hereof (expressed as a percentage of the
aggregate principal amount) plus the original issue discount amortized from the
Interest Accrual Date to the date of redemption, which amortization shall be
calculated using the "interest method" (computed in accordance with generally
accepted accounting principles in effect on the date of redemption) (the
"Amortized Amount")), if the Issuer determines that, as a result of any change
in or amendment to the laws (or any regulations or rulings promulgated
thereunder) of the United States or of any political subdivision or taxing
authority thereof or therein affecting taxation, or any change in official
position regarding the application or interpretation of such laws, regulations
or rulings, which change or amendment becomes effective on or after the Initial
Offering Date hereof, the Issuer has or will become obligated to pay Additional
Amounts (as defined below) with respect to this Note as described below. Prior
to the giving of any Notice of redemption pursuant to this paragraph, the
Issuer shall deliver to the Trustee (i) a certificate stating that the Issuer
is entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to the right of the Issuer to so redeem
have occurred, and (ii) an opinion of independent counsel satisfactory to the
Trustee to such effect based on such statement of facts; provided that no such
notice of redemption shall be given earlier than 60 days prior to the earliest
date on which the Issuer would be obligated to pay such Additional Amounts if a
payment in respect of this Note were then due.

                                     A-24

<PAGE>

         Notice of redemption will be given not less than 30 nor more than 60
days prior to the date fixed for redemption or within the Redemption Notice
Period specified on face hereof, which date and the applicable redemption price
will be specified in the Notice.

         If the face hereof indicates that this Note is subject to "Tax
Redemption and Payment of Additional Amounts," the Issuer will, subject to
certain exceptions and limitations set forth below, pay such additional amounts
(the "Additional Amounts") to the holder of this Note who is a United States
Alien as may be necessary in order that every net payment of the principal of
and interest on this Note and any other amounts payable on this Note, after
withholding for or on account of any present or future tax, assessment or
governmental charge imposed upon or as a result of such payment by the United
States (or any political subdivision or taxing authority thereof or therein),
will not be less than the amount provided for in this Note to be then due and
payable. The Issuer will not, however, be required to make any payment of
Additional Amounts to any such holder for or on account of:

        (a) any such tax, assessment or other governmental charge that would
     not have been so imposed but for (i) the existence of any present or
     former connection between such holder (or between a fiduciary, settlor,
     beneficiary, member or shareholder of such holder, if such holder is an
     estate, a trust, a partnership or a corporation) and the United States and
     its possessions, including, without limitation, such holder (or such
     fiduciary, settlor, beneficiary, member or shareholder) being or having
     been a citizen or resident thereof or being or having been engaged in a
     trade or business or present therein or having, or having had, a permanent
     establishment therein or (ii) the presentation by the holder of this Note
     for payment on a date more than 15 days after the date on which such
     payment became due and payable or the date on which payment thereof is
     duly provided for, whichever occurs later;

        (b) any estate, inheritance, gift, sales, transfer or personal
     property tax or any similar tax, assessment or governmental charge;

        (c) any tax, assessment or other governmental charge imposed by reason
     of such holder's past or present status as a personal holding company or
     foreign personal holding company or controlled foreign corporation or
     passive foreign investment company with respect to the United States or as
     a corporation which accumulates earnings to avoid United States federal
     income tax or as a private foundation or other tax-exempt organization;

        (d) any tax, assessment or other governmental charge that is payable
     otherwise than by withholding from payments on or in respect of this Note;

        (e) any tax, assessment or other governmental charge required to be
     withheld by any Paying Agent from any payment of principal of, or interest
     on, this Note, if such payment can be made without such withholding by any
     other Paying Agent in a city in Western Europe;

        (f) any tax, assessment or other governmental charge that would not have
     been imposed but for the failure to comply with certification, information
     or other reporting requirements concerning the nationality, residence or
     identity of the holder or beneficial owner of this Note, if such
     compliance is required by statute or by regulation of the United States or
     of any political

                                     A-25

<PAGE>

     subdivision or taxing authority thereof or therein as a precondition to
     relief or exemption from such tax, assessment or other governmental
     charge;

        (g) any tax, assessment or other governmental charge imposed by reason
     of such holder's past or present status as the actual or constructive
     owner of 10% or more of the total combined voting power of all classes of
     stock entitled to vote of the Issuer or as a direct or indirect subsidiary
     of the Issuer; or

        (h) any combination of items (a), (b), (c), (d), (e), (f) or (g);

nor shall Additional Amounts be paid with respect to any payment on this Note
to a United States Alien who is a fiduciary or partnership or other than the
sole beneficial owner of such payment to the extent such payment would be
required by the laws of the United States (or any political subdivision
thereof) to be included in the income, for tax purposes, of a beneficiary or
settlor with respect to such fiduciary or a member of such partnership or a
beneficial owner who would not have been entitled to the Additional Amounts had
such beneficiary, settlor, member or beneficial owner been the holder of this
Note.

         The Senior Indenture permits the Issuer and the Trustee, with the
consent of the holders of not less than a majority in aggregate principal
amount of the debt securities of all series issued under the Senior Indenture
then outstanding and affected (voting as one class), to execute supplemental
indentures adding any provisions to or changing in any manner the rights of the
holders of each series so affected; provided that the Issuer and the Trustee
may not, without the consent of the holder of each outstanding debt security
affected thereby, (a) extend the final maturity of any such debt security, or
reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption or
repayment thereof, or change the currency of payment thereof, or modify or
amend the provisions for conversion of any currency into any other currency, or
modify or amend the provisions for conversion or exchange of the debt security
for securities of the Issuer or other entities (other than as provided in the
antidilution provisions or other similar adjustment provisions of the debt
securities or otherwise in accordance with the terms thereof), or impair or
affect the rights of any holder to institute suit for the payment thereof
without the consent of the holder of each debt security so affected or (b)
reduce the aforesaid percentage in principal amount of debt securities the
consent of the holders of which is required for any such supplemental
indenture.

         Except as set forth below, if the principal of, premium, if any, or
interest on, this Note is payable in a Specified Currency other than U.S.
dollars and such Specified Currency is not available to the Issuer for making
payments hereon due to the imposition of exchange controls or other
circumstances beyond the control of the Issuer or is no longer used by the
government of the country issuing such currency or for the settlement of
transactions by public institutions within the international banking community,
then the Issuer will be entitled to satisfy its obligations to the holder of
this Note by making such payments in U.S. dollars on the basis of the Market
Exchange Rate on the date of such payment or, if the Market Exchange Rate is
not available on such date, as of the most recent practicable date; provided,
however, that if the euro has been substituted for such Specified Currency, the
Issuer may at its option (or shall, if so required by applicable law) without
the consent of the holder of this Note effect the payment of principal of,
premium, if any, or interest on, any Note denominated in such Specified
Currency in euro in lieu of such Specified Currency in

                                     A-26

<PAGE>

conformity with legally applicable measures taken pursuant to, or by virtue of,
the treaty establishing the European Community (the "EC"), as amended by the
treaty on European Union (as so amended, the "Treaty"). Any payment made under
such circumstances in U.S. dollars or euro where the required payment is in an
unavailable Specified Currency will not constitute an Event of Default. If such
Market Exchange Rate is not then available to the Issuer or is not published
for a particular Specified Currency, the Market Exchange Rate will be based on
the highest bid quotation in The City of New York received by the Exchange Rate
Agent at approximately 11:00 a.m., New York City time, on the second Business
Day preceding the date of such payment from three recognized foreign exchange
dealers (the "Exchange Dealers") for the purchase by the quoting Exchange
Dealer of the Specified Currency for U.S. dollars for settlement on the payment
date, in the aggregate amount of the Specified Currency payable to those
holders or beneficial owners of Notes and at which the applicable Exchange
Dealer commits to execute a contract. One of the Exchange Dealers providing
quotations may be the Exchange Rate Agent unless the Exchange Rate Agent is an
affiliate of the Issuer. If those bid quotations are not available, the
Exchange Rate Agent shall determine the market exchange rate at its sole
discretion.

         The "Exchange Rate Agent" shall be Morgan Stanley & Co. Incorporated,
unless otherwise indicated on the face hereof.

         All determinations referred to above made by, or on behalf of, the
Issuer or by, or on behalf of, the Exchange Rate Agent shall be at such
entity's sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and binding on holders of Notes and coupons.

         So long as this Note shall be outstanding, the Issuer will cause to be
maintained an office or agency for the payment of the principal of and premium,
if any, and interest on this Note as herein provided in the Borough of
Manhattan, The City of New York, and an office or agency in said Borough of
Manhattan for the registration, transfer and exchange as aforesaid of the
Notes. The Issuer may designate other agencies for the payment of said
principal, premium and interest at such place or places (subject to applicable
laws and regulations) as the Issuer may decide. So long as there shall be such
an agency, the Issuer shall keep the Trustee advised of the names and locations
of such agencies, if any are so designated.

         With respect to moneys paid by the Issuer and held by the Trustee or
any Paying Agent for payment of the principal of or interest or premium, if
any, on any Notes that remain unclaimed at the end of two years after such
principal, interest or premium shall have become due and payable (whether at
maturity or upon call for redemption or otherwise), (i) the Trustee or such
Paying Agent shall notify the holders of such Notes that such moneys shall be
repaid to the Issuer and any person claiming such moneys shall thereafter look
only to the Issuer for payment thereof and (ii) such moneys shall be so repaid
to the Issuer. Upon such repayment all liability of the Trustee or such Paying
Agent with respect to such moneys shall thereupon cease, without, however,
limiting in any way any obligation that the Issuer may have to pay the
principal of or interest or premium, if any, on this Note as the same shall
become due.

         No provision of this Note or of the Senior Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of, premium, if any, and interest on this Note at the time,
place, and rate, and in the coin or currency, herein prescribed unless
otherwise agreed between the Issuer and the registered holder of this Note.

                                     A-27

<PAGE>

         Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
the holder in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and none of the Issuer, the
Trustee or any such agent shall be affected by notice to the contrary.

         No recourse shall be had for the payment of the principal of, premium,
if any, or the interest on this Note, for any claim based hereon, or otherwise
in respect hereof, or based on or in respect of the Senior Indenture or any
indenture supplemental thereto, against any incorporator, shareholder, officer
or director, as such, past, present or future, of the Issuer or of any
successor corporation, either directly or through the Issuer or any successor
corporation, whether by virtue of any constitution, statute or rule of law or
by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

         This Note shall for all purposes be governed by, and construed in
accordance with, the laws of the State of New York.

         As used herein, the term "United States Alien" means any person who,
for United States federal income tax purposes, is a foreign corporation, a
non-resident alien individual, a non-resident alien fiduciary of a foreign
estate or trust, or a foreign partnership one or more of the members of which
is a foreign corporation, a non-resident alien individual or a non-resident
alien fiduciary of a foreign estate or trust.

         All terms used in this Note which are defined in the Senior Indenture
and not otherwise defined herein shall have the meanings assigned to them in
the Senior Indenture.

                                     A-28

<PAGE>

                                 ABBREVIATIONS

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

                  TEN COM       -   as tenants in common
                  TEN ENT       -   as tenants by the entireties
                  JT TEN        -   as joint tenants with right of survivorship
                                    and not as tenants in common

     UNIF GIFT MIN ACT - --------------------    Custodian --------------------
                            (Minor)                             (Cust)

     Under Uniform Gifts to Minors Act ----------------------------------------
                                                    (State)

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

                                     A-29

<PAGE>

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

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

[PLEASE INSERT SOCIAL SECURITY OR OTHER
     IDENTIFYING NUMBER OF ASSIGNEE]

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

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

-------------------------------------------------------------------------------
[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

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

Dated: --------------------------------

NOTICE:  The signature to this assignment must correspond with the name
         as written upon the face of the within Note in every particular
         without alteration or enlargement or any change whatsoever.

                                     A-30

<PAGE>

                           OPTION TO ELECT REPAYMENT

         The undersigned hereby irrevocably requests and instructs the Issuer
to repay the within Note (or portion thereof specified below) pursuant to its
terms at a price equal to the principal amount thereof, together with interest
to the Optional Repayment Date, to the undersigned at

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

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

-------------------------------------------------------------------------------
        (Please print or typewrite name and address of the undersigned)

         If less than the entire principal amount of the within Note is to be
repaid, specify the portion thereof which the holder elects to have repaid:
______________; specify the denomination or denominations (which shall not be
less than the minimum authorized denomination) of the Notes to be issued to the
holder for the portion of the within Note not being repaid (in the absence of
any such specification, one such Note will be issued for the portion not being
repaid): ____________________.

Dated: -----------------------------    ---------------------------------------
                                        NOTICE: The signature on this Option to
                                        Elect Repayment must correspond with
                                        the name as written upon the face of
                                        the within instrument in every
                                        particular without alteration or
                                        enlargement.

                                     A-31<PAGE>
                                                            EXHIBIT (4)(a)(viii)

                          SEVENTH SUPPLEMENTAL INDENTURE
                                   DATED AS OF

                              ____________________

               This Seventh Supplemental Indenture, dated as of the _____ day of
______________, 2001 between CMS Energy Corporation, a corporation duly
organized and existing under the laws of the State of Michigan (hereinafter
called the "Company") and having its principal office at Fairlane Plaza South,
330 Town Center Drive, Suite 1100, Dearborn, Michigan 48126, and JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank), a New York banking
corporation (hereinafter called the "Trustee") and having its principal
Corporate Trust Office at 450 West 33rd Street, 15th Floor, New York, New York
10001.

                                   WITNESSETH:

               WHEREAS, the Company and the Trustee entered into an Indenture,
dated as of January 15, 1994 (the "Original Indenture"), pursuant to which one
or more series of debt securities of the Company (the "Securities") may be
issued from time to time; and

               WHEREAS, Section 301 of the Original Indenture permits the terms
of any series of Securities to be established in an indenture supplemental to
the Original Indenture; and

               WHEREAS, Section 901(7) of the Original Indenture provides that a
supplemental indenture may be entered into by the Company and the Trustee
without the consent of any Holders of the Securities to establish the form and
terms of the Securities of any series; and

               WHEREAS, the Company has requested the Trustee to join with it in
the execution and delivery of this Seventh Supplemental Indenture in order to

                                        1

<PAGE>

supplement and amend the Original Indenture by, among other things, establishing
the form and terms of a series of Securities to be known as the Company's
"General Term Notes(R), Series G (the "General Term Notes"), providing for the
issuance of the General Term Notes and amending and adding certain provisions
thereof for the benefit of the Holders of the General Term Notes; and

               WHEREAS, the Company and the Trustee desire to enter into this
Seventh Supplemental Indenture for the purposes set forth in Sections 301 and
901(7) of the Original Indenture as referred to above; and

               WHEREAS, all things necessary to make this Seventh Supplemental
Indenture a valid agreement of the Company and the Trustee and a valid
supplement to the Original Indenture have been done,

---------------------------
(R)Registered servicemark of J. W. Korth & Company

                                        2

<PAGE>

               NOW, THEREFORE, THIS SEVENTH SUPPLEMENTAL INDENTURE
               WITNESSETH:

               For and in consideration of the premises and the purchase of the
General Term Notes to be issued hereunder by holders thereof, the Company and
the Trustee mutually covenant and agree, for the equal and proportionate benefit
of the respective holders from time to time of the General Term Notes, as
follows:

                                    ARTICLE I
                        STANDARD PROVISIONS; DEFINITIONS

               SECTION 101. Standard Provisions. The Original Indenture together
with this Seventh Supplemental Indenture and all indentures supplemental thereto
entered into pursuant to the applicable terms thereof are hereinafter sometimes
collectively referred to as the "Indenture." All of the terms, conditions,
covenants and provisions contained in the Original Indenture as heretofore
supplemented are incorporated herein by reference in their entirety and, except
as specifically noted herein or unless the context otherwise requires, shall be
deemed to be a part hereof to the same extent as if such provisions had been set
forth in full herein. All capitalized terms which are used herein and not
otherwise defined herein are defined in the Indenture and are used herein with
the same meanings as in the Indenture.

               SECTION 102. Definitions. Section 101 of the Indenture is amended
to insert the new definitions applicable to the General Term Notes, in the
appropriate alphabetical sequence, as follows:

               "Amortization Expense" means, for any period, amounts recognized
during such period as amortization of capital leases, depletion, nuclear fuel,
goodwill

                                        3

<PAGE>

and assets classified as intangible assets in accordance with generally accepted
accounting principles.

               "Average Life" means, as of the date of determination, with
respect to any Indebtedness, the quotient obtained by dividing (i) the sum of
the products of (x) the number of years from the date of determination to the
dates of each successive scheduled principal payment of such Indebtedness and
(y) the amount of such principal payment by (ii) the sum of all such principal
payments.

               "Capital Lease Obligation" of a Person means any obligation that
is required to be classified and accounted for as a capital lease on the face of
a balance sheet of such Person prepared in accordance with generally accepted
accounting principles; the amount of such obligation shall be the capitalized
amount thereof, determined in accordance with generally accepted accounting
principles; the stated maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which
such lease may be terminated by the lessee without payment of a penalty; and
such obligation shall be deemed secured by a Lien on any property or assets to
which such lease relates.

               "Capital Stock" means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or interests
in (however designated) corporate stock, including any Preferred Stock or Letter
Stock; provided that Hybrid Preferred Securities shall not be considered Capital
Stock for purposes of this definition.

               "Change in Control" means an event or series of events by which
(i) the Company ceases to own beneficially, directly or indirectly, at least 80%
of the

                                        4

<PAGE>

total voting power of all classes of Capital Stock then outstanding of Consumers
(whether arising from issuance of securities of the Company or Consumers, any
direct or indirect transfer of securities by the Company or Consumers, any
merger, consolidation, liquidation or dissolution of the Company or Consumers or
otherwise); (ii) any "person" or "group" (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as such
term is used in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
person or group shall be deemed to have "beneficial ownership" of all shares
that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 30% of the Voting Stock of the Company; or (iii) the
Company consolidates with or merges into another corporation or directly or
indirectly conveys, transfers or leases all or substantially all of its assets
to any Person, or any corporation consolidates with or merges into the Company,
in either event pursuant to a transaction in which the outstanding Voting Stock
of the Company is changed into or exchanged for cash, securities, or other
property, other than any such transaction in which (A) the outstanding Voting
Stock of the Company is changed into or exchanged for Voting Stock of the
surviving corporation and (B) the holders of the Voting Stock of the Company
immediately prior to such transaction retain, directly or indirectly,
substantially proportionate ownership of the Voting Stock of the surviving
corporation immediately after such transaction.

               "CMS Oil & Gas Co." means, CMS Oil & Gas Company., a Michigan
corporation and wholly-owned subsidiary of the Company.

               "Consolidated Assets" means, at any date of determination, the
aggregate assets of the Company and its Consolidated Subsidiaries determined on

                                        5

<PAGE>

a consolidated basis in accordance with generally accepted accounting
principles.

               "Consolidated Capital" means, at any date of determination, the
sum of (a) Consolidated Indebtedness, (b) consolidated equity of the common
stockholders of the Company and the Consolidated Subsidiaries, (c) consolidated
equity of the preference stockholders of the Company and the Consolidated
Subsidiaries (d) consolidated equity of the preferred stockholders of the
Company and the Consolidated Subsidiaries and (e) the aggregate amount of all
Hybrid Preferred Securities, in each case determined at such date in accordance
with generally accepted accounting principles.

               "Consolidated Coverage Ratio" with respect to any period means
the ratio of (i) the aggregate amount of Operating Cash Flow for such period to
(ii) the aggregate amount of Consolidated Interest Expense for such period.

               "Consolidated Indebtedness" means, at any date of determination,
the aggregate Indebtedness of the Company and its Consolidated Subsidiaries
determined on a consolidated basis in accordance with generally accepted
accounting principles provided, however that Consolidated Indebtedness shall not
include any subordinated debt owned by any Hybrid Preferred Securities
Subsidiary.

               "Consolidated Interest Expense" means, for any period, the total
interest expense in respect of Consolidated Indebtedness of the Company and its
Consolidated Subsidiaries, including, without duplication, (i) interest expense
attributable to capital leases, (ii) amortization of debt discount, (iii)
capitalized interest, (iv) cash and noncash interest payments, (v) commissions,
discounts and other fees and charges owed with respect to letters of credit and

                                        6

<PAGE>

bankers' acceptance financing, (vi) net costs under Interest Rate Protection
Agreements (including amortization of discount) and (vii) interest expense in
respect of obligations of other Persons deemed to be Indebtedness of the Company
or any Consolidated Subsidiaries under clause (v) or (vi) of the definition of
Indebtedness, provided, however, that Consolidated Interest Expense shall
exclude any costs otherwise included in interest expense recognized on early
retirement of debt.

               "Consolidated Leverage Ratio" means, at any date of
determination, the ratio of Consolidated Indebtedness to Consolidated Capital.

               "Consolidated Net Income" means, for any period, the net income
of the Company and its Consolidated Subsidiaries determined on a consolidated
basis in accordance with generally accepted accounting principles; provided,
however, that there shall not be included in such Consolidated Net Income:

               (i) any net income of any Person if such Person is not a
        Subsidiary, except that (A) the Company's equity in the net income of
        any such Person for such period shall be included in such Consolidated
        Net Income up to the aggregate amount of cash actually distributed by
        such Person during such period to the Company or a Consolidated
        Subsidiary as a dividend or other distribution and (B) the Company's
        equity in a net loss of any such Person for such period shall be
        included in determining such Consolidated Net Income;

                                        7

<PAGE>

               (ii) any net income of any Person acquired by the Company or a
        Subsidiary in a pooling of interests transaction for any period prior to
        the date of such acquisition; and

               (iii) any gain or loss realized upon the sale or other
        disposition of any property, plant or equipment of the Company or its
        Consolidated Subsidiaries which is not sold or otherwise disposed of in
        the ordinary course of business and any gain or loss realized upon the
        sale or other disposition of any Capital Stock of any Person.

               "Consolidated Net Worth" of any Person means the total of the
amounts shown on the consolidated balance sheet of such Person and its
consolidated subsidiaries, determined on a consolidated basis in accordance with
generally accepted accounting principles, as of any date selected by such Person
not more than 90 days prior to the taking of any action for the purpose of which
the determination is being made (and adjusted for any material events since such
date), as (i) the par or stated value of all outstanding Capital Stock plus (ii)
paid-in capital or capital surplus relating to such Capital Stock plus (iii) any
retained earnings or earned surplus less (A) any accumulated deficit, (B) any
amounts attributable to Redeemable Stock and (C) any amounts attributable to
Exchangeable Stock.

               "Consolidated Subsidiary" means, any Subsidiary whose accounts
are or are required to be consolidated with the accounts of the Company in
accordance with generally accepted accounting principles.

               "Consumers" means Consumers Energy Company, a Michigan
corporation, all of whose common stock is on the date hereof owned by the
Company.

                                        8

<PAGE>

               "Enterprises" means CMS Enterprises Company, a Michigan
corporation.

               "Event of Default" with respect to the General Term Notes has the
meaning specified in Article VI of this Seventh Supplemental Indenture.

               "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

               "Exchangeable Stock" means any Capital Stock of a corporation
that is exchangeable or convertible into another security (other than Capital
Stock of such corporation that is neither Exchangeable Stock, or Redeemable
Stock).

               "Hybrid Preferred Securities" means any preferred securities
issued by a Hybrid Preferred Securities Subsidiary, where such preferred
securities have the following characteristics:

               (i)    such Hybrid Preferred Securities Subsidiary lends
                      substantially all of the proceeds from the issuance of
                      such preferred securities to the Company or Consumers in
                      exchange for subordinated debt issued by the Company or
                      Consumers, respectively;

               (ii)   such preferred securities contain terms providing for the
                      deferral of distributions corresponding to provisions
                      providing for the deferral of interest payments on such
                      subordinated debt; and

               (iii)  the Company or Consumers (as the case may be) makes
                      periodic interest payments on such subordinated debt,
                      which interest payments are in turn used by the Hybrid
                      Preferred Securities Subsidiary to make corresponding
                      payments to the holders of the Hybrid Preferred
                      Securities.

                                        9

<PAGE>

               "Hybrid Preferred Securities Subsidiary" means any business trust
(or similar entity)(i) all of the common equity interest of which is owned
(either directly or indirectly through one or more wholly-owned Subsidiaries of
the Company or Consumers) at all times by the Company or Consumers, (ii) that
has been formed for the purpose of issuing Hybrid Preferred Securities and (iii)
substantially all of the assets of which consist at all times solely of
subordinated debt issued by the Company or Consumers (as the case may be) and
payments made from time to time on such subordinated debt.

               "Indebtedness" of any Person means, without duplication,

               (i) the principal of and premium (if any) in respect of (A)
        indebtedness of such Person for money borrowed and (B) indebtedness
        evidenced by notes, debentures, bonds or other similar instruments for
        the payment of which such Person is responsible or liable;

               (ii)  all Capital Lease Obligations of such Person;

               (iii) all obligations of such Person issued or assumed as the
        deferred purchase price of property, all conditional sale obligations
        and all obligations under any title retention agreement (but excluding
        trade accounts payable arising in the ordinary course of business);

               (iv) all obligations of such Person for the reimbursement of any
        obligor on any letter of credit, bankers' acceptance or similar credit
        transaction (other than obligations with respect to letters of credit
        securing obligations (other than obligations described in clauses (i)
        through (iii) above) entered into in the ordinary course of business of

                                       10

<PAGE>

        such Person to the extent such letters of credit are not drawn upon or,
        if and to the extent drawn upon, such drawing is reimbursed no later
        than the third Business Day following receipt by such Person of a demand
        for reimbursement following payment on the letter of credit);

               (v) all obligations of the type referred to in clauses (i)
        through (iv) of other Persons and all dividends of other Persons for the
        payment of which, in either case, such Person is responsible or liable
        as obligor, guarantor or otherwise; and

               (vi) all obligations of the type referred to in clauses (i)
        through (v) of other Persons secured by any Lien on any property or
        asset of such Person (whether or not such obligation is assumed by such
        Person), the amount of such obligation being deemed to be the lesser of
        the value of such property or assets or the amount of the obligation so
        secured.

               "Interest Rate Protection Agreement" means any interest rate swap
agreement, interest rate cap agreement or other financial agreement or
arrangement designed to protect the Company or any Subsidiary against
fluctuations in interest rates.

               "Letter Stock", as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however designated)
which is intended to reflect the separate performance of certain of the
businesses or operations conducted by such corporation or any of its
subsidiaries.

               "Lien" means any lien, mortgage, pledge, security interest,
conditional sale, title retention agreement or other charge or encumbrance of
any kind.

                                       11

<PAGE>

               "Net Proceeds" means, with respect to any issuance or sale or
contribution in respect of Capital Stock, the aggregate proceeds of such
issuance, sale or contribution, including the fair market value (as determined
by the Board of Directors and net of any associated debt and of any
consideration other than Capital Stock received in return) of property other
than cash, received by the Company, net of attorneys' fees, accountants' fees,
underwriters' or placement agents' fees, discounts, or commissions and
brokerage, consultant and other fees actually incurred in connection with such
issuance or sale and net of taxes paid or payable as a result thereof, provided,
however, that if such fair market value as determined by the Board of Directors
of property other than cash is greater than $25 million, the value thereof shall
be based upon an opinion from an independent nationally recognized firm
experienced in the appraisal or similar review of similar types of transactions.

               "Non-Convertible Capital Stock" means, with respect to any
corporation, any non-convertible Capital Stock of such corporation and any
Capital Stock of such corporation convertible solely into non-convertible
Capital Stock other than Preferred Stock of such corporation; provided, however,
that Non-Convertible Capital Stock shall not include any Redeemable Stock or
Exchangeable Stock.

               "Operating Cash Flow" means, for any period, with respect to the
Company and its Consolidated Subsidiaries, the aggregate amount of Consolidated
Net Income after adding thereto Consolidated Interest Expense (adjusted to
include costs recognized on early retirement of debt), income taxes,
depreciation expense, Amortization Expense and any noncash amortization of debt
issuance costs, any nonrecurring, noncash charges to earnings and any negative
accretion recognition.

                                       12

<PAGE>

               "Other Rating Agency" means any of Fitch IBCA, Duff & Phelps or
Moody's Investors Service, Inc. Fitch Investors Service, L.P. or Moody's
Investors Service, Inc., and any successor to any of these organizations which
is a nationally recognized statistical rating organization.

               "Preferred Stock", as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however designated)
that is preferred as to the payment of dividends, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation; provided that Hybrid Preferred Securities shall not be considered
"Preferred Stock" for purposes of this definition.

               "Redeemable Stock" means any Capital Stock that by its terms or
otherwise is required to be redeemed prior to the first anniversary of the
Maturity of any Outstanding General Term Notes or is redeemable at the option of
the holder thereof at any time prior to the first anniversary of the Maturity of
any Outstanding General Term Notes.

               "Restricted Subsidiary" means any Subsidiary (other than
Consumers and its subsidiaries) of the Company which, as of the date of the
Company's most recent quarterly consolidated balance sheet, constituted at least
10% of the total Consolidated Assets of the Company and its Consolidated
Subsidiaries and any other Subsidiary which from time to time is designated a
Restricted Subsidiary by the Board of Directors provided that no Subsidiary may
be designated a Restricted Subsidiary if, immediately after giving effect
thereto, an Event of Default or event that, with the lapse of time or giving of
notice or both, would constitute an Event of Default would exist or the Company
and its

                                       13

<PAGE>

Restricted Subsidiaries could not incur at least $1 of additional Indebtedness
under Section 510, and (i) any such Subsidiary so designated as a Restricted
Subsidiary must be organized under the laws of the United States or any State
thereof, (ii) more than 80% of the Voting Stock of such Subsidiary must be owned
of record and beneficially by the Company or a Restricted Subsidiary, (iii) such
Restricted Subsidiary must be a Consolidated Subsidiary, and (iv) such
Subsidiary must not theretofore have been designated as a Restricted Subsidiary.

          "Standard & Poor's" shall mean Standard & Poor's Ratings Group, a
division of McGraw Hill Inc., and any successor thereto which is a nationally
recognized statistical rating organization, or if such entity shall cease to
rate the General Term Notes or shall cease to exist and there shall be no such
successor thereto, any other nationally recognized statistical rating
organization selected by the Company which is acceptable to the Trustee.

               "Support Obligations" means, for any person, without duplication,
any financial obligation, contingent or otherwise, of such person guaranteeing
or otherwise supporting any debt or other obligation of any other person in any
manner, whether directly or indirectly, and including, without limitation, any
obligation of such person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such debt or to purchase
(or to advance or supply funds for the purchase of) any security for the payment
of such debt, (ii) to purchase property, securities or services for the purpose
of assuring the owner of such debt of the payment of such debt, (iii) to
maintain working capital, equity capital, available cash or other financial
statement condition of the primary obligor so as to enable the primary obligor
to pay such debt, (iv) to provide equity capital under or in respect of equity
subscription arrangements (to the extent that such obligation to provide equity
capital does

                                       14

<PAGE>

not otherwise constitute debt), or (v) to perform, or arrange for the
performance of, any non-monetary obligations or non-funded debt payment
obligations of the primary obligor.

               "Tax-Sharing Agreement" means the Amended and Restated Agreement
for the Allocation of Income Tax Liabilities and Benefits, dated January 1,
1994, as amended or supplemented from time to time, by and among Company, each
of the members of the Consolidated Group (as defined therein), and each of the
corporations that become members of the Consolidated Group.

               Certain terms, used principally in Articles Three, Four and Seven
of this Seventh Supplemental Indenture, are defined in those Articles.

                                   ARTICLE II

             DESIGNATION AND TERMS OF THE GENERAL TERM NOTES; FORMS

               SECTION 201. Establishment of Series. There is hereby created a
series of Securities to be known and designated as the "General Term Notes(R),
Series G and limited in aggregate principal amount (except as contemplated in
Section 301(2) of the Indenture) to $300,000,000.

               Each General Term Note will be dated and issued as of the date of
its authentication by the Trustee. Each General Term Note shall also bear an
Original Issue Date (as hereinafter defined) which, with respect to any General
Term Note (or any portion thereof), shall mean the date of its original issue,
as specified in such General Term Note (the "Original Issue Date"), and such
Original Issue Date shall remain the same if such General Term Note is
subsequently issued upon transfer, exchange, or substitution of such General
Term Note regardless of its date of authentication. Principal on any General
Term

                                       15

<PAGE>

Note shall become due and payable from nine months to twenty-five years from the
Original Issue Date of such General Term Note, as specified on such General Term
Note.

               Each General Term Note will bear interest from the Original Issue
Date, or from the most recent date to which interest has been paid or duly
provided for, at the rate per annum stated therein until the principal thereof
is paid or made available for payment. Interest will be payable either monthly,
quarterly or semi-annually on each Interest Payment Date and at Maturity, as
specified below and in each General Term Note. Interest will be payable to the
person in whose name a General Term Note is registered at the close of business
on the Regular Record Date next preceding each Interest Payment Date; provided,
however, interest payable at Maturity will be payable to the person to whom
principal shall be payable. Interest on the General Term Notes will be computed
on the basis of a 360-day year of twelve 30-day months.

               The Interest Payment Dates for a General Term Note that provides
for monthly interest payments shall be the fifteenth day of each calendar month;
provided, however, that in the case of a General Term Note issued between the
first and fifteenth day of a calendar month, interest otherwise payable on the
fifteenth day of such calendar month will be payable on the fifteenth day of the
next succeeding calendar month. In the case of a General Term Note that provides
for quarterly interest payments, the Interest Payment Dates shall be the
fifteenth day of each of the months specified in such General Term Note,
commencing on the day that is three months from (i) the day on which such
General Term Note is issued, if such General Term Note is issued on the
fifteenth day of a calendar month, or (ii) the fifteenth day of the calendar
month immediately preceding the calendar month in which such General Term Note
is issued, if such

                                       16

<PAGE>

General Term Note is issued prior to the fifteenth day of a calendar month, or
(iii) the fifteenth day of the calendar month in which such General Term Note is
issued, if such General Term Note is issued after the fifteenth day of a
calendar month. In the case of a General Term Note that provides for semi-annual
interest payments, the Interest Payment Dates shall be the fifteenth day of each
of the months specified in such General Term Note, commencing on the day that is
six months from (i) the day on which such General Term Note is issued, if such
General Term Note is issued on the fifteenth day of a calendar month, or (ii)
the fifteenth day of the calendar month immediately preceding the calendar month
in which such General Term Note is issued, if such General Term Note is issued
prior to the fifteenth day of a calendar month, or (iii) the fifteenth day of
the calendar month in which such General Term Note is issued, if such General
Term Note is issued after the fifteenth day of a calendar month.

               Payment of principal of the General Term Notes (and premium, if
any) and, unless otherwise paid as hereinafter provided, any interest thereon
will be made at the office or agency of the Company in New York, New York;
provided, however, that payment of interest (other than interest at Maturity)
may be made at the option of the Company by check or draft mailed to the Person
entitled thereto at such Person's address appearing in the Security Register or
by wire transfer to an account designated by such Person not later than ten days
prior to the date of such payment.

               The Regular Record Date referred to in Section 301 of the
Indenture for the payment of the interest on any General Term Note payable on
any Interest Payment Date (other than at Maturity) shall be the first day
(whether or not a Business Day) of the calendar month in which such Interest
Payment Date occurs as is specified in such General Term Note, and, in the case
of interest payable

                                       17

<PAGE>

at Maturity, the Regular Record Date shall be the date of Maturity. Unless
otherwise specified in such General Term Notes, the cities of New York, New York
and Chicago, Illinois shall be the reference cities for determining a Business
Day.

               The General Term Notes may be issued only as registered notes,
without coupons, in denominations of $1,000 and any larger denomination which is
in an integral multiple of $1,000.

               Upon the execution of this Seventh Supplemental Indenture, or
from time to time thereafter, General Term Notes may be executed by the Company
and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said General Term Notes in accordance with the
procedures set forth in or upon a Company Order complying with Sections 301 and
303 of the Indenture.

               SECTION 202. Forms Generally. The General Term Notes shall be in
substantially the form set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such General Term
Notes, as evidenced by their execution thereof.

               The definitive General Term Notes shall be printed, lithographed
or engraved on steel engraved borders or may be produced in any other manner,
all as determined by the officers executing such General Term Notes, as
evidenced by their execution thereof.

                                       18

<PAGE>

                 SECTION 203. Form of Face of General Term Note.
                   [Insertany legend required by the Internal
                        Revenue Code and the regulations
                                  thereunder.]

                             CMS ENERGY CORPORATION
                         GENERAL TERM NOTE(R), SERIES G

No. ________                                                         $__________
                                                       [Initial Redemption Date]
               CMS Energy Corporation, a corporation duly organized and existing
under the laws of the State of Michigan (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to _________________________________, or
registered assigns, the principal sum of ____________________ Dollars on
__________________________ and to pay interest thereon from _____________ (the
"Original Issue Date") or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, [choose one of the following --
monthly/quarterly/semi-annually [insert as applicable -- on ___________
[________, ____________] and _________ in each [year/month], commencing
______________, and at Maturity at the rate of ____% per annum, until the
principal hereof is paid or made available for payment [if applicable, insert
--, and at the rate of ___% per annum on any overdue principal and premium and
on any overdue installment of interest]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this General Term Note (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, which shall be the first day of the
calendar month in which such Interest

                                       19

<PAGE>

Payment Date occurs (whether or not a Business Day) next preceding such Interest
Payment Date except that the Regular Record Date for interest payable at
Maturity shall be the date of Maturity. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
General Term Note (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
General Term Notes not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the General Term Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.

               [If the General Term Note is not to bear interest prior to
Maturity, insert -- The principal of this General Term Note shall not bear
interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue
principal of this General Term Note shall bear interest at the rate of ___% per
annum, which shall accrue from the date of such default in payment to the date
payment of such principal has been made or duly provided for. Interest on any
overdue principal shall be payable on demand. Any such interest on any overdue
principal that is not so paid on demand shall bear interest at the rate of ____%
per annum, which shall accrue from the date of such demand for payment to the
date payment of such interest has been made or duly provided for, and such
interest shall also be payable on demand.]

               Payment of the principal of (and premium, if any) and interest,
if any, on this General Term Note will be made at the office or agency of the
Company maintained for that purpose in New York, New York (the "Place of
Payment"), in such

                                       20

<PAGE>

coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at
the option of the Company payment of interest (other than interest payable at
Maturity) may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or by wire
transfer to an account designated by such Person not later than ten days prior
to the date of such payment.

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

               Unless the certificate of authentication hereon has been executed
by the Trustee referred to on the reverse hereof by manual signature, this
General Term Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

               IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed under its corporate seal.

Dated:

                                               CMS ENERGY CORPORATION

                                               By
                                                 ----------------------------

Attest:

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

               SECTION 204. Form of Reverse of General Term Note.

                                       21

<PAGE>

               This General Term Note(R), Series G is one of a duly authorized
issue of securities of the Company (herein called the "General Term Notes"),
issued and to be issued in one or more series under an Indenture, dated as of
January 15, 1994, as supplemented by certain supplemental indentures, including
the Seventh Supplemental Indenture, dated as of ________, 2001 (herein
collectively referred to as the "Indenture"), between the Company and JPMorgan
Chase Bank (formerly known as The Chase Manhattan Bank), a New York banking
corporation, as Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee, the Holders of the General Term Notes and of the terms upon which
the General Term Notes are, and are to be, authenticated and delivered. This
General Term Note is one of the series designated on the face hereof, limited in
aggregate principal amount to $300,000,000.

               [If applicable, insert -- The General Term Notes of this series
are subject to redemption upon not more than 60 nor less than 30 days' notice as
provided in the Indenture, at any time [on or after __________, _____,] as a
whole or in part from time to time, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount):
If redeemed [on or before _____________, ___%, and if redeemed] during the
12-month period beginning ____________ of the years indicated,

<TABLE>
<CAPTION>
                      Redemption                                                        Redemption
Year                    Price                              Year                           Price
----                  ----------                           ----                         ----------
<S>                   <C>                                  <C>                          <C>
</TABLE>

                                       22

<PAGE>

and thereafter at a Redemption Price equal to ___% of the principal amount,
together in the case of any such redemption with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such General Term
Notes, or one or more Predecessor Securities, of record at the close of business
on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]

               [Notwithstanding the foregoing, the Company may not, prior to
__________, redeem this General Term Note as a part of, or in anticipation of,
any refunding operation by the application, directly or indirectly, of moneys
borrowed having an effective interest cost to the Company (calculated in
accordance with generally accepted financial practice) of less than the
effective interest cost to the Company (similarly calculated) of this General
Term Note.]

               [If the General Term Note is subject to redemption, insert -- In
the event of redemption of this General Term Note in part only, a new General
Term Note or Notes of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

               If a Change in Control occurs, the Company shall notify the
Holder of this General Term Note of such occurrence and such Holder shall have
the right to require the Company to make a Required Repurchase of all or any
part of this General Term Note at a Change in Control Purchase Price equal to
101% of the principal amount of this General Term Note to be so purchased as
more fully provided in the Indenture and subject to the terms and conditions set
forth therein. In the event of a Required Repurchase of only a portion of this
General Term Note, a new General Term Note or Notes for the unrepurchased
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

                                       23

<PAGE>

               [If this General Term Note is subject to redemption upon
exercising a Survivor's Option, insert -- As more fully provided in the
Indenture and subject to the terms and conditions set forth therein, the Company
will repay this General Term Note (or portion thereof) properly tendered for
repayment by or on behalf of the person (the "Representative") that has
authority to act on behalf of a deceased owner of the beneficial interest in
this General Term Note under the laws of the appropriate jurisdiction
(including, without limitation, the personal representative or executor of such
deceased beneficial owner) at a price equal to 100% of the principal amount
hereof plus accrued interest to the date of such repayment. Notwithstanding the
foregoing, the Survivor's Option will not be available to persons who are
surviving joint tenants or surviving tenants by the entirety. The Company may,
in its sole discretion, limit the aggregate principal amount of all outstanding
General Term Notes as to which exercises of this option (the "Survivor's
Option") will be accepted in any calendar year to one percent (1%) of the
outstanding principal amount of all General Term Notes as of the end of the most
recent fiscal year, but not less than $500,000 in any such calendar year, or
such greater amount as the Company in its sole discretion may determine for any
calendar year, and may limit to $100,000, or such greater amount as the Company
in its sole discretion may determine for any calendar year, the aggregate
principal amount of General Term Notes (or portions thereof) as to which
exercise of the Survivor's Option will be accepted in such calendar year with
respect to any individual deceased owner of beneficial interests in such General
Term Notes not in the Sixth Supplemental Indenture.

               [If the General Term Note is not an Original Issue Discount
Security, insert -- If an Event of Default with respect to this General Term
Note shall occur

                                       24

<PAGE>

and be continuing, the principal of this General Term Note may be declared due
and payable in the manner and with the effect provided in the Indenture.]

               In any case where any Interest Payment Date, Redemption Date,
Repayment Date, Stated Maturity or Maturity of any General Term Note shall not
be a Business Day at any Place of Payment, then (notwithstanding any other
provision of the Indenture or this General Term Note), payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date or Repayment Date or at the Stated Maturity or Maturity;
provided that no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date, Repayment Date,
Stated Maturity or Maturity, as the case may be, to such Business Day.

               The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of all Outstanding
Securities under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in principal amount of
all Outstanding Securities affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of all
Outstanding Securities, on behalf of the Holders of all Outstanding Securities,
to waive compliance by the Company with certain provisions of the Indenture. Any
such consent or waiver by the Holder of this General Term Note shall be
conclusive and binding upon such Holder and upon all future Holders of this
General Term Note and of any General Term Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this General Term Note.

                                       25

<PAGE>

               The Indenture permits the Holders of not less than a majority in
principal amount of all Outstanding Securities of any series thereunder to waive
on behalf of the Holders of all Outstanding Securities of such series any past
default by the Company, provided that no such waiver may be made with respect to
a default in the payment of the principal of or premium, if any, or the interest
on any Security of such series or the default by the Company in respect of
certain covenants or provisions of the Indenture, the modification or amendment
of which must be consented to by the Holder of each Outstanding Security of each
series affected.

               As set forth in, and subject to, the provisions of the Indenture,
no Holder of any General Term Note will have any right to institute any
proceeding with respect to the Indenture or for any remedy thereunder, unless
such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default, the Holders of not less than 25% in principal
amount of the Outstanding General Term Notes shall have made written request,
and offered satisfactory indemnity, to the Trustee to institute such proceeding
as trustee, and the Trustee shall not have received from the Holders of a
majority in principal amount of the Outstanding General Term Notes a direction
inconsistent with such request and shall have failed to institute such
proceeding within 60 days; provided, however, that such limitations do not apply
to a suit instituted by the Holder hereof for the enforcement of payment of the
principal of (and premium, if any) or any interest on this General Term Note on
or after the respective due dates expressed herein.

               No reference herein to the Indenture and no provision of this
General Term Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
any premium and

                                       26

<PAGE>

interest on this General Term Note at the times, place and rate, and in the coin
or currency, herein prescribed.

               As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this General Term Note is registerable in the
Security Register, upon surrender of this General Term Note for registration of
transfer at the office or agency of the Company in any place where the principal
of and any premium and interest on this General Term Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new General Term Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

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

               No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

               [If this General Term Note is redeemable at the option of the
Company, insert -- The Company shall not be required (i) to issue, register the
transfer of or exchange this General Term Note if this General Term Note may be
among those

                                       27

<PAGE>

selected for redemption during a period beginning at the opening of business 15
days before selection of the General Term Notes to be redeemed under Section
1103 of the Indenture and ending at the close of business on the day of the
mailing of the relevant notice of redemption, (ii) to register the transfer of
or exchange any General Term Note so selected for redemption in whole or in
part, except, in the case of any General Term Note to be redeemed in part, the
portion thereof not to be redeemed, or (iii) to issue, register the transfer of
or exchange any General Term Note which has been surrendered for repayment at
the option of the Holder, except the portion, if any, of such General Term Note
not to be so repaid.]

               Prior to due presentment of this General Term Note for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this General Term Note is
registered as the owner hereof for all purposes, whether or not this General
Term Note be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

               All terms used in this General Term Note without definition which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

------------------------------
(R)Registered servicemark of J. W. Korth & Company

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

               SECTION 205. Form of Legend for Global Notes. Any Global Note (as
defined in Article VII below) authenticated and delivered hereunder shall bear a
legend in substantially the following form:

               "This Security is a Global Note within the meaning of the
        Indenture hereinafter referred to and is registered in the name of a
        Depositary or a nominee of a Depositary. This General Term Note is not
        exchangeable for

                                       28

<PAGE>

        General Term Notes registered in the name of a Person other than the
        Depositary or its nominee except in the limited circumstances described
        in the Indenture, and no transfer of this General Term Note (other than
        a transfer of this General Term Note as a whole by the Depositary to a
        nominee of the Depositary or by a nominee of the Depositary to the
        Depositary or another nominee of the Depositary) may be registered
        except in the limited circumstances described in the Indenture."

               SECTION 206. Form of Trustee's Certificate of Authentication. The
Trustee's certificates of authentication shall be in substantially the following
form:

               This is one of the General Term Notes of the series designated
therein referred to in the within-mentioned Indenture.

                                          -------------------------------------,
                                                                      as Trustee

                                          By
                                            ------------------------------------
                                                              Authorized Officer

                                   ARTICLE III

               REDEMPTION OF GENERAL TERM NOTES; CHANGE OF CONTROL

               SECTION 301. Redemption of General Term Notes. (a) Each General
Term Note may be redeemed by the Company in whole or in part if so provided in,
and in accordance with, the terms of such General Term Note issued by the
Company. The Company may redeem any General Term Note which by its terms is
redeemable prior to Stated Maturity without also redeeming any other General
Term Note which is redeemable prior to Stated Maturity.

               (b) Change of Control. Upon the occurrence of a Change in Control
(the effective date of such Change in Control being the "Change in Control
Date"), each Holder of a General Term Note shall have the right to require that
the Company

                                       29

<PAGE>

repurchase (a "Required Repurchase") all or any part of such Holder's General
Term Note at a repurchase price payable in cash equal to 101% of the principal
amount of such General Term Note plus accrued interest to the Purchase Date (the
"Change in Control Purchase Price").

               (1)    Within 30 days following the Change in Control Date, the
        Company shall mail a notice (the "Required Repurchase Notice") to each
        Holder with a copy to the Trustee stating:

                      (i)   that a Change in Control has occurred and that such
               Holder has the right to require the Company to repurchase all or
               any part of such Holder's General Term Notes at the Change of
               Control Purchase Price;

                      (ii)  the Change of Control Purchase Price;

                      (iii) the date on which any Required Repurchase shall be
               made (which shall be no earlier than 60 days nor later than 90
               days from the date such notice is mailed) (the "Purchase Date");

                      (iv)  the name and address of the Paying Agent; and

                      (v)   the procedures that Holders must follow to cause the
               General Term Notes to be repurchased, which shall be consistent
               with this Section and the Indenture.

               (2) Holders electing to have a General Term Note repurchased must
        deliver a written notice (the "Change in Control Purchase Notice") to
        the Paying Agent (initially the Trustee) at its office in The City of
        New York,

                                       30

<PAGE>

        or any other office of the Paying Agent maintained for such purposes,
        not later than 30 days prior to the Purchase Date. The Change in Control
        Purchase Notice shall state: (i) the portion of the principal amount of
        any General Term Notes to be repurchased, which portion must be $1,000
        or an integral multiple thereof; (ii) that such General Term Notes are
        to be repurchased by the Company pursuant to the change in control
        provisions of the Indenture; and (iii) unless the General Term Notes are
        represented by one or more Global Notes, the certificate numbers of the
        General Term Notes to be delivered by the Holder thereof for repurchase
        by the Company. Any Change in Control Purchase Notice may be withdrawn
        by the Holder by a written notice of withdrawal delivered to the Paying
        Agent not later than three Business Days prior to the Purchase Date. The
        notice of withdrawal shall state the principal amount and, if
        applicable, the certificate numbers of the General Term Notes as to
        which the withdrawal notice relates and the principal amount of such
        General Term Notes, if any, which remains subject to a Change in Control
        Purchase Notice.

               If a General Term Note is represented by a Global Note (as
        described in Article VII below), the Depositary or its nominee will be
        the Holder of such General Term Note and therefore will be the only
        entity that can elect a Required Repurchase of such General Term Note.
        To obtain repayment pursuant to this Section 301(b) with respect to such
        General Term Note, the beneficial owner of such General Term Note must
        provide to the broker or other entity through which it holds the
        beneficial interest in such General Term Note (i) the Change in Control
        Purchase Notice signed by such beneficial owner, and such signature must
        be guaranteed by a member firm of a registered national securities
        exchange or of the National Association of Securities Dealers, Inc. or a
        commercial bank or trust company having an office or correspondent in
        the

                                       31

<PAGE>

        United States, and (ii) instructions to such broker or other entity to
        notify the Depositary of such beneficial owner's desire to obtain
        repayment pursuant to this Section 301(b). Such broker or other entity
        will provide to the Paying Agent (i) the Change of Control Purchase
        Notice received from such beneficial owner and (ii) a certificate
        satisfactory to the Paying Agent from such broker or other entity
        stating that it represents such beneficial owner. Such broker or other
        entity will be responsible for disbursing any payments it receives
        pursuant to this Section 301(b) to such beneficial owner.

               (3) Payment of the Change of Control Purchase Price for a General
        Term Note for which a Change in Control Purchase Notice has been
        delivered and not withdrawn is conditioned (except in the case of a
        General Term Note represented by one or more Global Notes) upon delivery
        of such General Term Note (together with necessary endorsements) to the
        Paying Agent at its office in The City of New York, or any other office
        of the Paying Agent maintained for such purpose, at any time (whether
        prior to, on or after the Purchase Date) after the delivery of such
        Change in Control Purchase Notice. Payment of the Change of Control
        Purchase Price for such General Term Note will be made promptly
        following the later of the Purchase Date or the time of delivery of such
        General Term Note. If the Paying Agent holds, in accordance with the
        terms of the Indenture, money sufficient to pay the Change in Control
        Purchase Price of such General Term Note on the Business Day following
        the Purchase Date, then, on and after such date, interest will cease
        accruing, and, if applicable, amounts will no longer accrue on any such
        General Term Note that is an Original Issue Discount Security, whether
        or not such General Term Note is delivered to the Paying Agent, and all
        other rights of the Holder shall terminate (other than the right to
        receive the Change of Control Purchase Price upon delivery of the
        General Term Note).

                                       32

<PAGE>

               (4) The Company shall comply with the provisions of Rule 13e-4
        and any other tender offer rules under the Exchange Act, which may then
        be applicable and shall file Schedule 13E-4 or any other schedule
        required thereunder in connection with any offer by the Company to
        repurchase General Term Notes at the option of Holders upon a Change in
        Control.

               (5) No General Term Note may be repurchased by the Company as a
        result of a Change in Control if there has occurred and is continuing an
        Event of Default (other than a default in the Payment of the Change in
        Control Purchase Price with respect to the General Term Notes).

                                   ARTICLE IV

                              REPAYMENT UPON DEATH

               If so specified in any General Term Note, the Holder of such
General Term Note will have the option (the "Survivor's Option") to elect
repayment of such General Term Note prior to its Stated Maturity in the event of
the death of the beneficial owner of such General Term Note.

               Pursuant to exercise of the Survivor's Option, if applicable, the
Company will repay any General Term Note (or portion thereof) properly tendered
for repayment by or on behalf of the person (the "Representative") that has
authority to act on behalf of the deceased beneficial owner of such General Term
Note under the laws of the appropriate jurisdiction (including, without
limitation, the personal representative or executor of such deceased beneficial
owner) at a price equal to one-hundred percent (100%) of the principal amount of
the beneficial interest of the deceased owner of such General Term Note plus
accrued interest to the date of such payment, subject to the following
limitations. In order for a Holder to exercise the Survivor's Option, the
deceased beneficial owner or his or her Representative must have individually
or collectively held the General Term Note for 120 days.

                                       33

<PAGE>

The Company may, in its sole discretion, limit the aggregate principal amount of
General Term Notes as to which exercises of the Survivor's Option will be
accepted in any calendar year (the "Annual Put Limitation") to one percent (1%)
of the outstanding principal amount of the General Term Notes as of the end of
the most recent fiscal year, but not less than $500,000 in any such calendar
year, or such greater amount as the Company in its sole discretion may determine
for any calendar year, and may limit to $100,000, or such greater amount as the
Company in its sole discretion may determine for any calendar year, the
aggregate principal amount of General Term Notes (or portions thereof) as to
which exercise of the Survivor's Option will be accepted in such calendar year
with respect to any individual deceased owner of beneficial interests in such
General Term Notes (the "Individual Put Limitation"). Moreover, the Company will
not make principal repayments pursuant to exercise of the Survivor's Option in
amounts that are less that $1,000, and, in the event that the limitations
described in the preceding sentence would result in the partial repayment of any
General Term Note, the principal amount of such General Term Note remaining
outstanding after repayment must be at least $1,000 (the minimum authorized
denomination of the General Term Notes). Any General Term Note (or portion
thereof) tendered pursuant to exercise of the Survivor's Option may be withdrawn
by a written request of its Holder received by the Trustee prior to its
repayment.

               Each General Term Note (or portion thereof) that is tendered
pursuant to a valid exercise of the Survivor's Option will be accepted promptly
in the order all such General Term Notes are tendered, except for any General
Term Note (or portion thereof) the acceptance of which would contravene (i) the
Annual Put Limitation, if applied, or (ii) the Individual Put Limitation, if
applied, with respect to the relevant individual deceased owner of beneficial
interests therein.

                                       34

<PAGE>

If, as of the end of any calendar year, the aggregate principal amount of
General Term Notes (or portions thereof) that have been accepted pursuant to
exercise of the Survivor's Option for such year has not exceeded the Annual Put
Limitation, if applied, for such year, any exercise(s) of the Survivor's Option
with respect to General Term Notes (or portions thereof) not accepted during
such calendar year because such acceptance would have contravened the Individual
Put Limitation, if applied, with respect to an individual deceased owner of
beneficial interests therein will be accepted in the order all such General Term
Notes (or portions thereof) were tendered, to the extent that any such exercise
would not exceed the Annual Put Limitation, if applied, for such calendar year.
Any General Term Note (or portion thereof) accepted for repayment pursuant to
exercise of the Survivor's Option will be repaid no later than the first
Interest Payment Date that occurs 20 or more calendar days after the date of
such acceptance. Each General Term Note (or any portion thereof) tendered for
repayment that is not accepted in any calendar year because of the application
of the Annual Put Limitation will be deemed to be tendered in the following
calendar year in the order in which all such General Term Notes (or portions
thereof) were originally tendered, unless any such General Term Note (or portion
thereof) is withdrawn by the Representative for the deceased owner prior to its
repayment. In the event that a General Term Note (or any portion thereof)
tendered for repayment pursuant to valid exercise of the Survivor's Option is
not accepted, the Trustee will deliver a notice by first-class mail to the
registered Holder thereof at its last known address as indicated in the Security
Register that states the reasons such General Term Note (or portion thereof) has
not been accepted for repayment.

                                       35

<PAGE>

               Subject to the foregoing, in order for a Survivor's Option to be
validly exercised with respect to any General Term Note (or portion thereof),
the Trustee must receive from the Representative of the individual deceased
owner of beneficial interests therein (i) a written request for payment signed
by the Representative, and such signature must be guaranteed by a member firm of
a registered national securities exchange or of the National Association of
Securities Dealers, Inc. or a commercial bank or trust company having an office
or correspondent in the United States, (ii) if any such General Term Note is not
represented by a Global Note (as described in Article VII below), tender of the
General Term Note (or portion thereof) to be repaid, (iii) appropriate evidence
satisfactory to the Company and the Trustee that (A) the Representative has
authority to act on behalf of the individual deceased beneficial owner, (B) the
death of such beneficial owner has occurred and (C) the deceased individual was
the owner of a beneficial interest in such General Term Note at the time of
death, (iv) if applicable, a properly executed assignment or endorsement, and
(v) if the beneficial interest in such General Term Note is held by a nominee of
the deceased beneficial owner, a certificate satisfactory to the Trustee from
such nominee attesting to the deceased's ownership of a beneficial interest in
such General Term Note. All questions as to the eligibility or validity of any
exercise of the Survivor's Option will be determined by the Company, in its sole
discretion, which determinations will be final and binding on all parties.

               If a General Term Note is represented by a Global Note (as
described in Article VII below), the Depositary or its nominee will be the
Holder of such General Term Note and therefore will be the only entity that can
exercise the Survivor's Option for such General Term Note. To obtain repayment
pursuant to exercise of the Survivor's Option with respect to such General Term
Note, the Representative must provide to the broker or other entity through
which the

                                       36

<PAGE>

beneficial interest in such General Term Note is held by the deceased owner (i)
the documents described in clauses (i) and (iii) of the preceding paragraph and
(ii) instructions to such broker or other entity to notify the Depositary of
such Representative's desire to obtain repayment pursuant to exercise of the
Survivor's Option. Such broker or other entity shall provide to the Trustee (i)
the documents received from the Representative referred to in clause (i) of the
preceding sentence and (ii) a certificate satisfactory to the Trustee from such
broker or other entity stating that it represents the deceased beneficial owner
and that such deceased beneficial owner or such deceased beneficial owner's
Representative individually or collectively held such General Term Note for at
least 120 days. Such broker or other entity will be responsible for disbursing
any payments it receives pursuant to exercise of the Survivor's Option to the
appropriate Representative.

                                    ARTICLE V
                       ADDITIONAL COVENANTS OF THE COMPANY
                     WITH RESPECT TO THE GENERAL TERM NOTES

               SECTION 501. Statement by Officers as to Default. (a) The Company
will deliver to the Trustee, within 120 days after the end of each fiscal year a
brief certificate from the principal executive officer, principal financial
officer or principal accounting officer as to his or her knowledge of the
Company's compliance with all conditions and covenants under this Seventh
Supplemental Indenture. For such purposes, such compliance shall be determined
without regard to any period of grace or requirement of notice provided
hereunder and, if the Company shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge.

               (b) The Company shall deliver to the Trustee, as soon as possible
and in any event within 10 days after the Company becomes aware of the
occurrence of an Event of Default or an event which, with notice or the lapse of
time or both, would constitute an Event of Default, an Officers' Certificate
setting forth the

                                       37

<PAGE>

details of such Event of Default or default, and the action which the Company
proposes to take with respect thereto.

               SECTION 502. Existence. So long as any of the General Term Notes
are Outstanding, subject to Article 8 of the Indenture, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence and all rights (charter and statutory) and
franchises other than rights or franchises the loss of which would not be
disadvantageous in any material respect to the Holders of the General Term
Notes.

               SECTION 503. Maintenance of Properties. So long as any of the
General Term Notes are Outstanding, the Company will cause all properties used
or useful in the conduct of its business to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the
operation or maintenance of any of such properties if such discontinuance is, in
the judgment of the Company, desirable in the conduct of its business and not
disadvantageous in any material respect to the Holders.

               SECTION 504. Payment of Taxes and Other Claims. So long as any of
the General Term Notes are Outstanding, the Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent, (1) all
taxes, assessments and governmental charges levied or imposed upon the Company
or any Subsidiary or upon the income, profits or property of the Company or any

                                       38

<PAGE>

Subsidiary, and (2) all lawful claims for labor, materials and supplies which,
if unpaid, might by law become a Lien upon the property of the Company or any
Subsidiary; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or
claim the amount of which, applicability or validity is being contested in good
faith by appropriate proceedings.

               SECTION 505. Insurance. So long as any of the General Term Notes
are Outstanding, the Company shall, and each of its Restricted Subsidiaries and
Consumers shall, keep insured by financially sound and reputable insurers all
property of a character usually insured by entities engaged in the same or
similar businesses similarly situated against loss or damage of the kinds and in
the amounts customarily insured against by such entities and carry such amounts
of other insurance as is usually carried by such entities.

               SECTION 506. Compliance with Laws. So long as any of the General
Term Notes are Outstanding, the Company shall, and each of its Restricted
Subsidiaries and Consumers shall, comply in all material respects with all laws
applicable to the Company or such Restricted Subsidiary or Consumers, as the
case may be, its respective business and properties.

               SECTION 508. Limitation on Certain Liens. (a) So long as any of
the General Term Notes are outstanding, the Company shall not create, incur,
assume or suffer to exist any Lien or any other type of arrangement intended or
having the effect of conferring upon a creditor of the Company or any Subsidiary
a preferential interest (hereinafter in this Section referred to as a "Lien")
upon or with respect to the Capital Stock of Consumers, Enterprises or CMS Oil
and Gas Co. without making effective provision whereby the General Term Notes
shall (so long

                                       39

<PAGE>

as any such other creditor shall be so secured) be equally and ratably secured
(along with any other creditor similarly entitled to be secured) by a direct
Lien on all property subject to such Lien, provided, however, that the foregoing
restrictions shall not apply to:

         (i) Liens for taxes, assessments or governmental charges or levies to
the extent not past due;

         (ii) pledges or deposits to secure (a) obligations under workmen's
compensation laws or similar legislation, (b) statutory obligations of the
Company or (c) Support Obligations not to exceed $30 million at any one time
outstanding;

         (iii) Liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's and repairmen's Liens and other similar Liens arising in
the ordinary course of business securing obligations which are not overdue or
which have been fully bonded and are being contested in good faith;

         (iv) purchase money Liens upon or in property acquired and held by the
Company in the ordinary course of business to secure the purchase price of such
property or to secure Indebtedness incurred solely for the purpose of financing
the acquisition of any such property to be subject to such Liens, or Liens
existing on any such property at the time of acquisition, or extensions,
renewals or replacements of any of the foregoing for the same or a lesser
amount, provided that no such Lien shall extend to or cover any property other
than the property being acquired and no such extension, renewal or replacement
shall extend to or cover property not theretofore subject to the Lien being
extended, renewed or replaced, and provided, further, that the aggregate
principal amount of the Indebtedness at

                                       40

<PAGE>

any one time outstanding secured by Liens permitted by this clause (iv) shall
not exceed $10,000,000; and

        (v) Liens not otherwise permitted by clauses (i) through (iv) of this
Section securing Indebtedness of the Company; provided that on the date such
Liens are created, and after giving effect to such Indebtedness, the aggregate
principal amount at maturity of all of the secured Indebtedness of the Company
at such date shall not exceed 10% of Consolidated Assets at such date.

               SECTION 509. Limitation on Consolidation, Merger, Sale or
Conveyance. In addition to the limitations set forth in Article 8 of the
Indenture, so long as the General Term Notes are Outstanding and until the
General Term Notes are rated BBB- or above (or an equivalent rating) by Standard
& Poor's and one Other Rating Agency (or if Standard & Poor's shall change its
rating system, an equivalent of such rating then employed by such organization)
at which time the Company shall be permanently released from the following
provisions, the Company shall not consolidate with or merge into any other
Person or sell, lease or convey the property of the Company in the entirety or
substantially as an entirety unless (i) immediately after giving effect to such
transaction the Consolidated Net Worth of the surviving entity is at least equal
to the Consolidated Net Worth of the Company immediately prior to the
transaction, and (ii) after giving effect to such transaction, the surviving
entity would be entitled to incur at least one dollar of additional Indebtedness
(other than revolving Indebtedness to banks) without violation of the
limitations in Section 510 hereof.

               SECTION 510. Limitation on Consolidated Indebtedness. (a) So long
as any of the General Term Notes are Outstanding and until the General Term
Notes are rated BBB- or above (or an equivalent rating) by Standard & Poor's and
one Other

                                       41

<PAGE>

Rating Agency (or if Standard & Poor's shall change its rating system, an
equivalent of such rating then employed by such organization) at which time the
Company shall be permanently released from the provision of this Section 510,
the Company shall not, and shall not permit any Restricted Subsidiary of the
Company to, issue, create, assume, guarantee, incur or otherwise become liable
for (collectively, "issue"), directly or indirectly, any Indebtedness unless (i)
the Consolidated Coverage Ratio of the Company and its Consolidated Subsidiaries
for the four consecutive fiscal quarters immediately preceding the issuance of
such Indebtedness (as shown by a pro forma consolidated income statement of the
Company and its Consolidated Subsidiaries for the four most recent fiscal
quarters ending at least 30 days prior to the issuance of such Indebtedness
after giving effect to (i) the issuance of such Indebtedness and (if applicable)
the application of the net proceeds thereof to refinance other Indebtedness as
if such Indebtedness was issued at the beginning of the period, (ii) the
issuance and retirement of any other Indebtedness since the first day of the
period as if such Indebtedness was issued or retired at the beginning of the
period and (iii) the acquisition of any company or business acquired by the
Company or any Subsidiary since the first day of the period (including giving
effect to the pro forma historical earnings of such company or business),
including any acquisition which will be consummated contemporaneously with the
issuance of such Indebtedness, as if in each case such acquisition occurred at
the beginning of the period) exceeds a ratio of 1.6 to 1.0 and (ii), immediately
after giving effect to the issuance of such Indebtedness and (if applicable) the
application of the net proceeds thereof to refinance other Indebtedness, the
Consolidated Leverage Ratio is equal to or less than a ratio of 0.75 to 1.0.

                                       42

<PAGE>

               (b) Notwithstanding the foregoing paragraph, the Company or any
Restricted Subsidiary may issue, directly or indirectly, the following
Indebtedness:

               (1) Revolving Indebtedness to banks not to exceed $1,000,000,000
        in the aggregate outstanding principal amount at any time;

               (2) Indebtedness (other than Indebtedness described in clause (1)
        of this Subsection) outstanding on the date of the original Indenture,
        as set forth on Schedule 510(b)(2) attached hereto and made a part
        hereof, and Indebtedness issued in exchange for, or the proceeds of
        which are used to refund or refinance, any Indebtedness permitted by
        this clause (2); provided, however, that (i) the principal amount (or
        accreted value in the case of Indebtedness issued at a discount) of the
        Indebtedness so issued shall not exceed the principal amount (or
        accreted value in the case of Indebtedness issued at a discount) of,
        premium, if any, and accrued but unpaid interest on, the Indebtedness so
        exchanged, refunded or refinanced and (ii) the Indebtedness so issued
        (A) shall not mature prior to the stated maturity of the Indebtedness so
        exchanged, refunded or refinanced, (B) shall have an Average Life equal
        to or greater than the remaining Average Life of the Indebtedness so
        exchanged, refunded or refinanced and (C) if the Indebtedness to be
        exchanged, refunded or refinanced is subordinated to the General Term
        Notes, the Indebtedness is subordinated to the General Term Notes in
        right of payment;

               (3) Indebtedness of the Company owed to and held by a Subsidiary
        and Indebtedness of a Subsidiary owed to and held by the Company;
        provided, however, that, in the case of Indebtedness of the Company owed
        to and held by

                                       43

<PAGE>

        a Subsidiary, (i) any subsequent issuance or transfer of any Capital
        Stock that results in any such Subsidiary ceasing to be a Subsidiary or
        (ii) any transfer of such Indebtedness (except to the Company or a
        Subsidiary) shall be deemed for the purposes of this Subsection to
        constitute the issuance of such Indebtedness by the Company;

               (4) Indebtedness of the Company issued in exchange for, or the
        proceeds of which are used to refund or refinance, Indebtedness of the
        Company issued in accordance with Subsection (a) of this Section,
        provided that (i) the principal amount (or accreted value in the case of
        Indebtedness issued at a discount) of the Indebtedness so issued shall
        not exceed the principal amount (or accreted value in the case of
        Indebtedness issued at a discount) of, premium, if any, and accrued but
        unpaid interest on, the Indebtedness so exchanged, refunded or
        refinanced and (ii) the Indebtedness so issued (A) shall not mature
        prior to the stated maturity of the Indebtedness so exchanged, refunded
        or refinanced, (B) shall have an Average Life equal to or greater than
        the remaining Average Life of the Indebtedness so exchanged, refunded or
        refinanced and (C) if the Indebtedness to be exchanged, refunded or
        refinanced is subordinated to the General Term Notes, the Indebtedness
        so issued is subordinated to the General Term Notes in right of payment;
        and

               (5) Indebtedness of a Restricted Subsidiary issued in exchange
        for, or the proceeds of which are used to refund or refinance,
        Indebtedness of a Restricted Subsidiary issued in accordance with
        Subsection (a) of this Section, provided that (i) the principal amount
        (or accreted value in the case of Indebtedness issued at a discount) of
        the Indebtedness so issued shall not exceed the principal amount (or
        accreted value in the case of Indebtedness issued at a discount) of,
        premium, if any, and accrued but unpaid interest on,

                                       44

<PAGE>

        the Indebtedness so exchanged, refunded or refinanced and (ii) the
        Indebtedness so issued (A) shall not mature prior to the stated maturity
        of the Indebtedness so exchanged, refunded or refinanced and (B) shall
        have an Average Life equal to or greater than the remaining Average Life
        of the Indebtedness so exchanged, refunded or refinanced.

               SECTION 511. Limitation on Restricted Payments. (a) So long as
the General Term Notes are Outstanding and until the General Term Notes are
rated BBB- or above (or an equivalent rating) by Standard & Poor's and one Other
Rating Agency (or if Standard & Poor's shall change its rating system, an
equivalent of such rating then employed by such organization) at which time the
Company shall be permanently released from the provision of this Section 511,
the Company shall not, and shall not permit any Restricted Subsidiary of the
Company, directly or indirectly, to (i) declare or pay any dividend or make any
distribution on the Capital Stock of the Company to the direct or indirect
holders of the Capital Stock of the Company (except dividends or distributions
payable solely in Non-Convertible Capital Stock of the Company or in options,
warrants or other rights to purchase such Non-Convertible Capital Stock and
except dividends or distributions payable to the Company or a Subsidiary), (ii)
purchase, redeem or otherwise acquire or retire for value any Capital Stock of
the Company (any such dividend, distribution, purchase, redemption, other
acquisition or retirement being hereinafter referred to as a "Restricted
Payment") if at the time the Company or such Subsidiary makes such Restricted
Payment:

                      (1) an Event of Default, or an event that with the lapse
        of time or the giving of notice or both would constitute an Event of
        Default, shall have occurred and be continuing (or would result
        therefrom); or

                                       45

<PAGE>

                      (2) the aggregate amount of such Restricted Payment and
        all other Restricted Payments made since September 30, 1993, would
        exceed the sum of:

                      (A)  $120,000,000;

                      (B) 100% of Consolidated Net Income, accrued during the
               period (treated as one accounting period) from September 30, 1993
               to the end of the most recent fiscal quarter ending at least 45
               days prior to the date of such Restricted Payment (or, in case
               such sum shall be a deficit, minus 100% of the deficit); and

                      (C) the aggregate Net Proceeds received by the Company
               from the issue or sale of or contribution with respect to its
               Capital Stock subsequent to September 30, 1993.

For the purpose of determining the amount of any Restricted Payment not in the
form of cash, the amount shall be the fair value of such Restricted Payment as
determined in good faith by the Board of Directors, provided that if the value
of the non-cash portion of such Restricted Payment as determined by the Board of
Directors is in excess of $25 million, such value shall be based on the opinion
from a nationally recognized firm experienced in the appraisal of similar types
of transactions.

               (b)  The provisions of Section 511(a) shall not prohibit:

                      (i) any purchase or redemption of Capital Stock of the
               Company made by exchange for, or out of the proceeds of the
               substantially concurrent sale of, Capital Stock of the Company
               (other than Redeemable Stock or

                                       46

<PAGE>

               Exchangeable Stock); provided, however, that such purchase or
               redemption shall be excluded from the calculation of the amount
               of Restricted Payments;

                      (ii) dividends or other distributions paid in respect of
               any class of the Company's Capital Stock issued in respect of the
               acquisition of any business or assets by the Company or a
               Restricted Subsidiary if the dividends or other distributions
               with respect to such Capital Stock are payable solely from the
               net earnings of such business or assets;

                      (iii) dividends paid within 60 days after the date of
               declaration thereof if at such date of declaration such dividend
               would have complied with this Section; provided, however, that at
               the time of payment of such dividend, no Event of Default shall
               have occurred and be continuing (or result therefrom), and
               provided further, however, that such dividends shall be included
               (without duplication) in the calculation of the amount of
               Restricted Payments; or

                      (iv)  payments pursuant to the Tax-Sharing Agreement.

               SECTION 512. Limitation on Transactions with Affiliates. So long
as any of the General Term Notes are Outstanding, the Company shall not directly
or indirectly, conduct any business or enter into any transaction or series of
related transactions (including the purchase, sale, lease or exchange of any
property or the rendering of any service) with an Affiliate unless the terms of
such business, transaction or series of transactions are as favorable to the
Company as terms that could be obtainable at the time for a comparable
transaction or series of related transactions in arm's-length dealings with an
unrelated third Person. This Section

                                       47

<PAGE>

shall not apply to (x) compensation paid to officers and directors of the
Company which has been approved by the Board of Directors of the Company or (y)
loans to the Company or an Affiliate pursuant to a global cash management
program, which loans mature within one year from the date thereof.

                                   ARTICLE VI
                          ADDITIONAL EVENTS OF DEFAULT
                     WITH RESPECT TO THE GENERAL TERM NOTES

               SECTION 601. Definition. All of the events specified in Section
501 of the Indenture and the events specified in Section 602 of this Article
shall be "Events of Default" with respect to the General Term Notes.

               SECTION 602. Additional Events of Default. As contemplated by
Sections 301(15) and 501(7) of the Indenture, any one of the following events
(whatever the reason for such Event of Default and whether or not it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall be an Event of Default with respect
to the General Term Notes for all purposes of the Indenture:

               (a) a default or event of default in respect of any Indebtedness
of the Company having an aggregate outstanding principal amount at the time of
such default in excess of $25,000,000 shall occur which results in the
acceleration of such Indebtedness or Indebtedness of the Company having an
outstanding principal amount at maturity in excess of $25,000,000 shall not be
paid at maturity thereof, which default shall not have been waived by the holder
or holders of such Indebtedness within 30 days of such default; or

                                       48

<PAGE>

               (b) the entry of a final judgment or judgments against the
Company aggregating in excess of $25,000,000 which remain undischarged or
unbonded for a period (during which execution shall not be effectively stayed)
of 60 days.

                                   ARTICLE VII

                                  GLOBAL NOTES

               The General Term Notes will be issued initially in the form of
Global Notes. "Global Note" means a registered General Term Note evidencing one
or more General Term Notes issued to a depositary (the "Depositary") or its
nominee, in accordance with this Article and bearing the legend prescribed in
this Article. A single Global Note will represent all General Term Notes issued
on the same date and having the same terms, including, but not limited to, the
same Interest Payment Dates, rate of interest, Stated Maturity, and redemption
provisions (if any). The Company shall execute and the Trustee shall, in
accordance with this Article and the Company Order with respect to the General
Term Notes, authenticate and deliver one or more Global Notes in temporary or
permanent form that (i) shall represent and shall be denominated in an aggregate
amount equal to the aggregate principal amount of the General Term Notes to be
represented by such Global Note or Notes, (ii) shall be registered in the name
of the Depositary for such Global Note or Notes or the nominee of such
Depositary, (iii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary's instructions and (iv) shall bear a legend
substantially to the following effect: "Unless this Global Note is presented by
an authorized representative of the Depositary to the Company or its agent for
registration of transfer, exchange or payment, and any Note issued is registered
in the name of the Depositary or in such other name as is requested by the
Depositary, any transfer, pledge or other use hereof for value or otherwise by

                                       49

<PAGE>

or to any person shall be wrongful inasmuch as the registered owner hereof, the
Depositary, has an interest herein."

               Notwithstanding Section 305 of the Indenture, unless and until it
is exchanged in whole or in part for General Term Notes in definitive form, a
Global Note representing one or more General Term Notes may not be transferred
except as a whole by the Depositary, to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for General Term Notes or a nominee of such successor Depositary.

               If at any time the Depositary for the General Term Notes is
unwilling or unable to continue as Depositary for the General Term Notes, the
Company shall appoint a successor Depositary with respect to the General Term
Notes. If a successor Depositary for the General Term Notes is not appointed by
the Company by the earlier of (i) 90 days from the date the Company receives
notice to the effect that the Depositary is unwilling or unable to act, or the
Company determines that the Depositary is unable to act or (ii) the
effectiveness of the Depositary's resignation or failure to fulfill its duties
as Depositary, the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive General Term
Notes, will authenticate and deliver General Term Notes in definitive form in an
aggregate principal amount equal to the principal amount of the Global Note or
Notes representing such General Term Notes in exchange for such Global Note or
Notes.

               The Company may at any time and in its sole discretion determine
that the General Term Notes issued in the form of one or more Global Notes shall
no longer be represented by such Global Note or Notes. In such event the Company
will

                                       50

<PAGE>

execute, and the Trustee, upon receipt of a Company Order for the authentication
and delivery of definitive General Term Notes, will authenticate and deliver
General Term Notes in definitive form in an aggregate principal amount equal to
the principal amount of the Global Note or Notes representing such General Term
Notes in exchange for such Global Note or Notes.

               The Depositary for such General Term Notes may surrender a Global
Note or Notes for such General Term Notes in exchange in whole or in part for
General Term Notes in definitive form on such terms as are acceptable to the
Company and such Depositary. Thereupon, the Company shall execute, and the
Trustee shall authenticate and deliver, without service charge:

                  (i) to each Person specified by such Depositary a new General
               Term Note or Notes, of any authorized denomination as requested
               by such Person in aggregate principal amount equal to and in
               exchange for such Person's beneficial interest in the Global
               Note; and

                  (ii) to such Depositary a new Global Note in a denomination
               equal to the difference, if any, between the principal amount of
               the surrendered Global Note and the aggregate principal amount of
               General Term Notes in definitive form delivered to Holders
               thereof.

               In any exchange provided for in this Article, the Company will
execute and the Trustee will authenticate and deliver General Term Notes in
definitive registered form in authorized denominations.

               Upon the exchange of a Global Note for General Term Notes in
definitive form, such Global Note shall be canceled by the Trustee. General Term
Notes in

                                       51

<PAGE>

definitive form issued in exchange for a Global Note pursuant to this Article
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Note, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee or Security
Registrar. The Trustee shall deliver such General Term Notes to the persons in
whose names such General Term Notes are so registered.

                                  ARTICLE VIII

                                   DEFEASANCE

               All of the provisions of Article Fourteen of the Original
Indenture shall be applicable to the General Term Notes. Upon satisfaction by
the Company of the requirements of Section 1404 of the Indenture, in connection
with any covenant defeasance (as provided in Section 1403 of the Indenture), the
Company shall be released from its obligations under Article Eight of the
Original Indenture and under Articles III and V of this Seventh Supplemental
Indenture with respect to the General Term Notes.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

               This Seventh Supplemental Indenture is a supplement to the
Original Indenture. As supplemented by this Seventh Supplemental Indenture, the
Original Indenture is in all respects ratified, approved and confirmed, and the
Original Indenture and this Seventh Supplemental Indenture shall together
constitute one and the same instrument.

               The Company may, by supplemental indenture, amend this Seventh
Supplemental Indenture to provide for additional definitions, terms and
provisions relating to

                                       52

<PAGE>

General Term Notes. Any such supplemental indenture shall not adversely affect
the rights and privileges of Holders of General Term Notes issued prior to such
supplemental indenture. Any such supplemental indenture may include,

                                       53

<PAGE>

but is not limited to including, additional provisions permitting payment of
General Term Notes prior to Stated Maturity at the option of the Holders,
issuance of General Term Notes in currencies other than Dollars, and special
provisions relating to interest rate provisions.

                                   TESTIMONIUM

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

                                       54

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have caused this Seventh
Supplemental Indenture to be duly executed and their respective corporate seals
to be hereunto affixed and attested, all as of the day and year first written
above.

                                                   CMS ENERGY CORPORATION

                                                   By:
                                                      --------------------------

Attest:

                                                                (Corporate Seal)
----------------

                                                   JPMORGAN CHASE BANK
                                                     (formerly known as
                                                     THE CHASE MANHATTAN BANK)
                                                     as Trustee

                                                   By:
                                                      --------------------------

Attest:

                                                                (Corporate Seal)
-----------------

                                       55

<PAGE>

                               Schedule 510(b)(2)

Indebtedness of CMS Energy Corporation outstanding on January 20, 1994:

1.      $146,000,000 of Series A Senior Deferred Coupon Notes due 1997; and

2.      $248,000,000 of Series B Senior Deferred Coupon Notes due 1999.

                                       56

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