Document:

exv10w5

Exhibit 10.5

DEFINED CONTRIBUTION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

The objective of the Defined Contribution Supplemental Executive Retirement Plan is to attract and
motivate top level executives, including those recruited in mid- or late-career. This Supplemental
DC Plan is designed to provide additional retirement income to supplement that provided under the
applicable Qualified Plans.

This Supplemental DC Plan is effective April 1, 2006 for employees hired into or promoted to a
Covered Executive Position on or after April 1, 2006 and includes amendments through April 1,
2011. This Supplemental DC Plan replaces any Cash Balance SERP benefit credited to any Employee
from July 1, 2003 to April 1, 2006. An amount equal to the accrued Cash Balance SERP has been
transferred to this Plan and placed as a contribution to the Participant Account.

SECTION I. DEFINITIONS

Whenever used in this Supplemental DC Plan, the following terms shall have the respective meanings
set forth below, unless the context clearly indicates otherwise.

	 	 	 

	Account or Account 

Balance

	 	The notional amount credited to a Participant or beneficiary in
accordance with the provisions of this Supplemental DC Plan.
	 
	 	 
	Code

	 	The Internal Revenue Code of 1986, as amended.
	 
	 	 
	Company

	 	CMS Energy Corporation and its subsidiaries which are directly
or indirectly owned 80% or greater. For purposes of
determining a Separation from Service from the Company, the
Company shall include CMS Energy Corporation and all persons or
entities that would be considered a single employer under Code
Section 414(b) or Section 414(c), using for such purposes a “50
percent” standard, instead of an “80 percent” standard, under
such provisions.
	 
	 	 
	Company Contribution

	 	The amount, which is a notional amount, contributed by the
Employer on behalf of a Participant in accordance with Section
III of this Supplemental DC Plan.
	 
	 	 
	Compensation

	 	A Participant’s regular salary from an Employer, before any
adjustment for deferrals under any deferred compensation plan
of the Company, any reductions for contributions to the Savings
Plan, any reductions under any welfare benefit plan or
deductions for taxes or other withholdings, but excluding any
bonus, imputed income, incentive or other premium pay.
	 
	 	 
	Covered Executive 

Position

	 	A position with a Company where the Employee is classified as a
Salary Grade 24 or above.
	 
	 	 
	DB SERP

	 	The Defined Benefit Supplemental Executive Retirement Plan.
The DB SERP Plan is closed for new participants as of April 1,
2006.
	 
	 	 
	Employee

	 	Any person, employed by the Company as an exempt salaried
employee at Salary Grade 24 or above, and on the payroll and
employment records system as an employee, (excluding
consultants, advisors and independent contractors).
	 
	 	 
	Employer

	 	The entity within the Company that employs the Participant.
	 
	 	 

 

 

	 	 	 

	Incentive 

Compensation

	 	An amount paid to a Participant in a Plan Year under the terms
of the Annual Employee Incentive Compensation Plan or the
Annual Officer Incentive Compensation Plan.
	 
	 	 
	Participant

	 	Any Employee who meets or met the eligibility requirements of
the Plan and for whom Contributions are made or were previously
made under the Plan which have not been distributed.
	 
	 	 
	Payment Event

	 	The time when the Participant may receive the benefits deferred
under the Plan as described in Section VI.1.
	 
	 	 
	Payment Term

	 	The form and duration of any payment to a Participant or
beneficiary as described in Section VI.2.
	 
	 	 
	Plan or 

Supplemental DC 

Plan

	 	The Defined Contribution Supplemental Executive Retirement Plan.
	 
	 	 
	Plan Administrator

	 	The Benefit Administration Committee as selected by the Chief
Executive Officer and Chief Financial Officer of the Company to
manage the plan.
	 
	 	 
	Plan Record Keeper

	 	The person(s) or entity named as such by the Plan Administrator.
	 
	 	 
	Plan Year

	 	January 1 to December 31 of a calendar year.
	 
	 	 
	Qualified Plan

	 	A pension plan providing benefits for a broad group of
employees and meeting the requirements for a qualified plan
under the Code.
	 
	 	 
	Savings Plan

	 	The Savings Plan for Employees of Consumers Energy and other
CMS Energy Companies.
	 
	 	 
	Separation from 

Service

	 	If an Employee retires or otherwise has a separation from
service from the Company as defined under Code Section 409A and
any applicable regulations. The Plan Administrator will
determine, consistent with the requirements of Code Section
409A and any applicable regulations, to what extent a person on
a leave of absence, including on paid sick leave pursuant to
Company policy, has incurred a Separation from Service.
Notwithstanding the above, a Separation from Service will occur
consistent with the requirements of Code Section 409A when it
is reasonably anticipated that the future level of bona fide
services provided by the Employee (whether as an employee or as
an independent contractor) will be no more than 45% of the
average level of bona fide services performed by the Employee
(whether as an employee or as an independent contractor) over
the immediately preceding 36-month period (or the full period
of service if less than 36 months).
	 
	 	 
	Threshold Limit

	 	The amount as determined from time to time by the Secretary of
the Treasury above which annual compensation is disregarded for
Qualified Plans. As of January 1, 2011, the Threshold Limit is
$245,000.

SECTION II. ELIGIBILITY AND ENROLLMENT

	 	1.	 	Each Employee in a Covered Executive Position who is not a participant in the DB SERP
is a Participant in this Plan as of the date of hire or promotion to a Covered Executive
Position. Enrollment is automatic upon eligibility to participate.
	 
	 	2.	 	Any employee in a Salary Grade E-3 or above who is covered under this Plan must retire
and incur a Separation from Service at age 65 unless such employee is specifically asked in
writing,

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	 	 	 	not less than six months prior to turning age 65, to remain as an active employee by the
Compensation and Human Resources Committee of the Board of Directors of CMS Energy
Corporation. The request will be for a one-year period of time, but may be renewed each
subsequent year at the discretion of the Compensation and Human Resources Committee, or any
replacement committee. This provision will apply only to the extent that it is consistent
with Section 631(c) of the Age Discrimination in Employment Act.

SECTION III. COMPANY CONTRIBUTION

This Supplemental DC Plan is a defined contribution non-qualified deferred compensation plan. The
benefit provided for under this Supplemental DC Plan is equal to the Company Contribution to the
Participant Account as well as the gains or losses attributable to the performance of the
investments selected by the Participant. The Company Contribution will be credited to the
Participant Account not less frequently than annually and shall be determined based upon the
Participant’s classification as of the date the Company Contribution is credited to the Participant
Account. The Company Contribution shall be based upon the Participant’s salary grade and
Compensation as follows:

	 	1.	 	A Participant in Salary Grades 24 through E-2 will receive a Company Contribution equal
to 5% of Compensation in excess of the Threshold Limit and 5% of any Incentive Compensation
paid to the Participant during the Plan Year.
	 
	 	2.	 	A Participant in Salary Grades E-3 through E-5 will receive a Company Contribution
equal to 5% of Compensation up to the Threshold Limit, plus 10% of Compensation in excess
of the Threshold Limit and 10% of any Incentive Compensation paid to the Participant during
the Plan Year.
	 
	 	3.	 	A Participant in Salary Grades E-6 and higher will receive a Company Contribution equal
to 10% of Compensation up to the Threshold Limit, plus 15% of Compensation in excess of the
Threshold Limit and 15% of any Incentive Compensation paid to the Participant during the
Plan Year.

Any reference to Incentive Compensation paid to a Participant during a Plan Year includes amounts
that would have been paid but for the election of the Participant to defer any amount of Incentive
Compensation.

SECTION IV. INVESTMENTS

	 	1.	 	Designation of Investments. The Participant shall specify the proportions of the
Company Contribution to be treated as if invested among the various options available as
investment funds under this Supplemental DC Plan. A Participant who already has deferred
amounts under a nonqualified deferred compensation plan of the Company will automatically
have his or her existing investment profile apply to the Company Contribution.
	 
	 	 	 	All determinations of the available investments by the Plan Administrator are final and
binding upon the Participants. If a Participant fails to make an investment election, then
such amounts shall be accounted for as if contributed to a Target Date Fund (as that term is
defined in the Savings Plan) with a date that is applicable to the Participant’s age 65,
rounded up, or such other investments as determined by the Plan Administrator.

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	 	2.	 	Changes in Investment Elections. All investment elections may be changed prospectively
at the Participant’s election at any time prior to the payment of the benefit subject to
any applicable restrictions imposed by the Plan Administrator, the Plan Record Keeper or by
any laws and regulations.
	 
	 	3.	 	Determination of Investment Earnings. All gains and losses will be based upon the
performance of the investments selected by the Participant from the date any Company
Contribution is first credited to the Participant Account. If the Company elects to fund
the Accounts for its convenience as described in Section VIII.5, then investment
performance will be based on the balance in the Participant Account pursuant to the
customary procedures of the Plan Record Keeper.

V. VESTING AND RECOUPMANT

	 	1.	 	Vesting. A Participant will be fully vested in this Supplemental DC Plan only upon
completion of five full years of service as a Participant in this Supplemental DC Plan
(including any service as a Participant under the Cash Balance SERP) and attainment of age
62. During the first five years of participation, the Participant’s vested percentage is
0%. Upon completing five full years as a Participant in this Supplemental DC Plan, the
Account Balance will vest linearly from the date of plan eligibility to age 62; ratably
each year such that at age 62 the benefit is 100 percent vested. As an example, an
Employee hired or promoted on June 1, 2007 at age 52 will not receive any vesting credit
until June 1, 2012 at age 57. At that time the Participant will be 50% vested, as there
are 10 years from the date of inclusion in the Plan to age 62, so the Participant vests 10%
for each year in the Plan. At age 62 the Participant is 100% vested. An Employee first
hired at age 57 or older will be 100% vested upon five years of participation in this
Supplemental DC Plan. In determining the percentage of vesting, the Participant’s age will
be counted using whole years only without rounding and without regard to the number of
months past the Participant’s last birthday. Notwithstanding the above, if a Participant
incurs a “disability”, as that term is defined under Code Section 409A and any relevant
regulations, then such Participant shall vest in the entire Account Balance as of the
disability date. The Account Balance will vest in full upon the death of a Participant or
the mandatory retirement of a Participant under Section II.2.
	 
	 	 	 	As the Company Contributions vest, the Participant’s Account Balance will be reduced by an
amount equal to the employee’s share of any applicable FICA and FUTA taxes in accordance
with the applicable regulations under Code Section 409A. To the extent required by law, the
Participant will be imputed with income for the value of the taxes paid through the
reduction of the Account Balance.
	 
	 	2.	 	Recoupment. Any Company Contributions are also subject to recoupment as required by
applicable law.

VI. PAYMENT OPTIONS

	 	1.	 	Payment Events. This Supplemental DC Plan provides for payment of benefits upon
Separation from Service or as otherwise specified in this Plan document.
	 
	 	2.	 	Payment Term. Each newly hired or promoted Participant will receive his or her payment
in a single sum in the later of (i) January of the year following the year of

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	 	 	 	Separation from Service or if later, (ii) the first day of the seventh month following
Separation from Service.
	 
	 	3.	 	Changes in Payment Options. Subsequent changes to the original Payment Term which
would accelerate the receipt of benefits from the Plan are not permitted, except that the
Plan Administrator may at its sole discretion elect to accelerate payments to the extent
permitted by Code Section 409A and applicable regulations. A subsequent election by a
Participant to change the Payment Term can be made when both of the following conditions
are satisfied:
	 
	 	 	 	(a) any such election may not take effect until at least 12 months after the date on which
the election is made; and
	 
	 	 	 	(b) the payment(s) with respect to which such election is made is deferred for a period of
not less than 5 years from the date such payment would otherwise have been made or, in the
case of installment payments, 5 years from the date the first installment was scheduled to
be paid.
	 
	 	 	 	When making a subsequent election, the Participant may elect to receive either a single sum
or a series of annual installment payments over a period from two (2) years to fifteen (15)
years. If installment payments are elected, each installment payment shall be equal to a
fractional amount of the original balance in the Account the numerator of which is one and
the denominator of which is the number of installment payments remaining. For example, a
series of five installment payments will result in a benefit equal to one fifth of the
Account Balance for the first installment, one fourth of the Account Balance for the second
installment, one third of the Account Balance for the third installment one half of the
Account Balance for the fourth year and in the fifth installment the Account Balance is paid
in full. Each installment, because of gains and losses may not be identical to the prior
installment.
	 
	 	4.	 	Payment Upon the Death of the Participant. In the event of the death of a Participant
prior to the start of any payments under the Plan, the Participant’s named beneficiary or
beneficiaries shall receive the entire Account Balance under the Plan within 90 days
following the death of the Participant. In the event of the death of a Participant after
commencing payment of benefits, the Participant’s named beneficiary or beneficiaries shall
receive the remaining Account Balance in a single sum within 90 days following the death of
the Participant. If the Participant fails to name a beneficiary, the Account Balance will
be paid in a single sum to his or her estate within 90 days following the death of the
Participant. In no event may any recipient designate a year of payment for an amount
payable upon the death of the Participant.

VII. NON-ALIENATION OF BENEFITS

Except as may be required by a domestic relations order as described in Code Section 414(p)(1)(B),
in no event shall the Plan Administrator pay or assign over any part of the interest of a
Participant under the Plan, or his or her beneficiary or beneficiaries, which is payable,
distributable or credited to his or her Account, to any assignee or creditor of such Participant or
his or her beneficiary or beneficiaries. Prior to the time of distribution, a Participant, his or
her beneficiary or beneficiaries or legal representative shall have no right by way of anticipation
or

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otherwise to assign or otherwise dispose of any interest which may be payable, distributable or
credited to the Account of the Participant or his or her beneficiary or beneficiaries under the
Plan, and every attempted assignment or other disposition of such interest in the Plan shall not be
merely voidable but absolutely void.

VIII. ADMINISTRATION OF PLAN

	 	1.	 	Plan Administrator. The Plan Administrator shall have authority to take necessary
actions to implement the Plan and is granted full discretionary authority to apply the
terms of the Plan, make administrative rulings, interpret the Plan and make any other
determinations with respect to all aspects of the Plan. Any Participant with a claim under
the Plan must make a written request within 60 days to the Plan Administrator for a
determination on the claim. If the claim involves a benefit or issue relevant to an
individual who has been appointed to the Benefit Administration Committee, the individual
so affected shall not participate in any determination on such issue. The Plan
Administrator may hire such experts, accountants, or attorneys as it deems necessary to
make a decision and may rely on the opinion of such persons in making a determination. The
Plan Administrator shall notify the Participant of its determination in writing within 60
days of the claim unless the Plan Administrator advises the Participant that it requires
additional time (not to exceed 90 days) to complete its investigation. The Participant
may, within 60 days from the date the determination was mailed to the Participant, request
a redetermination of the matter, and provide any additional information for the Plan
Administrator to consider in its redetermination. The Plan Administrator will issue its
opinion within 60 days of the request for redetermination unless the Plan administrator
advised the Participant that it requires additional time (not to exceed 90 days) to
complete its redetermination of the matter.
	 
	 	2.	 	Administrative Expenses. Any administrative expenses, costs, charges or fees, to the
extent not paid by the Company are to be charged to the Participant Accounts in accordance
with the Plan Record Keeper’s normal procedures.
	 
	 	3.	 	Amendment or Termination of the Plan. The Company may amend or terminate the Plan at
anytime. Upon termination, any vested Account Balance will remain in the Plan and be paid
out in accordance with the Payment Term. While the Account Balance will continue to be
subject to investment gains and losses, no further Company Contributions will be made to
the Plan. The Plan Administrator is authorized to make any amendments that are deemed
necessary or desirable to comply with any applicable laws, regulations or orders or as may
be advised by counsel or to clarify the terms and operation of the Plan. Notwithstanding
the above, no termination of the Plan will accelerate any benefits under the Plan unless
such termination is consistent with the requirements of Section 409A of the Internal
Revenue Code and any applicable regulations, with respect to when a terminated plan may
accelerate payment to a Participant.
	 
	 	4.	 	Naming a Beneficiary. A Participant may at any time file a beneficiary designation
with the Plan Record Keeper. Only one such beneficiary designation, the most recent
received by the Plan Record Keeper, is effective at any time. No beneficiary designation
is effective until it is received by the Plan Record Keeper. If a Participant fails to
name a beneficiary, any benefit payable under the Plan will be paid to the Participant’s
estate. A Participant must name a separate beneficiary for each non-qualified plan.

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	 	5.	 	Funding. This is an unfunded nonqualified deferred compensation plan. To the extent
the Company elects to place funds with a trustee to pay its future obligations under this
Plan such amounts are placed for the convenience of the Company, remain the property of the
Company and the Participant shall have no right to such funds until properly paid in
accordance with the provisions of this Plan. For administrative ease and convenience, such
amounts may be referred to as Participant Accounts, but as such are a notional account only
and are not the property of the Participant. Such amounts are subject to the claims of the
creditors of the Company.

IN WITNESS WHEREOF, execution is hereby effected this 1st day of April, 2011.

	 	 	 	 	 	 	 
	ATTEST:	 	 	CMS ENERGY CORPORATION
	 
	/s/ Catherine M. Reynolds	 	 	/s/ John Russell
	Vice President and Secretary	 	 	Chief Executive Officer, CMS Energy and
	 	 	 	 	 	Consumers Energy
	 
	Date: April 1, 2011	 	 	 	 
	 
	 
	 	 	 	 	 

7exv10w6

Exhibit 10.6

SUPPLEMENTAL EXECUTIVE RETIREMENT

PLAN FOR EMPLOYEES OF

CMS ENERGY / CONSUMERS ENERGY COMPANY

INTRODUCTION

The objective of the Supplemental Executive Retirement Plan is to retain and motivate top
level executives by providing additional retirement income to supplement that provided by the
Pension Plan.

The Supplemental Executive Retirement Plan became effective on January 1, 1982 and is applicable to
all employees of the Company who are eligible in accordance with the provisions of this
Supplemental Plan. This document includes all amendments through April 1, 2011.

This instrument describes the Supplemental Plan for employees who retire, die or whose services are
terminated on or after January 1, 2005. The rights of employees who, prior to January 1, 2005,
retired, died or whose services were terminated are governed by the provisions of the instrument in
effect at such time. This Supplemental Plan is an unfunded, unsecured promise to pay benefits at a
later date. Subject to the provisions of this Supplemental Plan, Participants have no greater
rights than the general creditors of the Company.

SECTION I. DEFINITIONS

Whenever used in this Supplemental Plan, the following terms shall have the respective
meanings set forth below, unless the context clearly indicates otherwise.

	 	 	 

	“Accrued
Supplemental
Executive
Retirement
Income”

	 	Means the Supplemental Executive Retirement Income beginning on
the first of the month following attainment of age 65, which
would be payable to a Participant at the rates provided in
subsection 1 of Section V, on the basis of his Accredited Service
and Preference Service rendered to the date of computation.
	 
	 	 
	“Accredited Service”

	 	The period of service subsequent to inclusion in the Pension Plan.
	 
	 	 
	“Code”

	 	The Internal Revenue Code of 1986, as amended.
	 
	 	 
	“Company”

	 	Means CMS Energy Corporation and Consumers Energy Company and any
subsidiary owned 80% and whose employees participate in the
Pension Plan. For purposes of determining a Separation from
Service from the Company, the Company shall include CMS Energy
Corporation and all persons or entities that would be considered
a single employer under Code Section 414(b) or Section 414(c),
using for such purposes a “50 percent” standard, instead of an
“80 percent” standard, under such provisions.
	 
	 	 
	“Disability Service”

	 	Means the Accredited Service and Preference Service granted a
Participant as provided in subsection 5 of Section V.

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	“Disability Service
Pension
Supplement”

	 	Means the pension supplement, provision for which is made in
subsection 5 of Section V of this Supplemental Plan.
	 
	 	 
	“Earnings”

	 	Means the regular salary paid to the Participant during the
Fiscal Year January 1 — December 31.
	 
	 	 
	“Employment
Agreement”

	 	Means a Severance or Change in Control Agreement (Tier I, Tier
II, Tier III or Tier IV) authorized by the Compensation and Human
Resources Committee of the Board of Directors of CMS Energy
Corporation and entered into between a Participant and CMS Energy
Corporation or a subsidiary.
	 
	 	 
	“Final Executive
Pay”

	 	Means 1/12th of the average of the Earnings (without regard to
any limitations imposed on the Pension Plan by the Internal
Revenue Code or Regulations thereunder) plus Incentive
Compensation (if any) of a Participant, including any such
amounts deferred, for his five years of highest totals of
Earnings plus Incentive Compensation (if any) during the period
of his Accredited Service.

For purposes of determining Final Executive Pay, Accredited
Service shall include only the service provided while the
Participant holds a position that qualifies for inclusion under
this Supplemental Plan.
	 
	 	 
	“Incentive
Compensation”

	 	Means the applicable amount awarded to the Participant under an
Annual Incentive Compensation Plan of the Company during a Plan
Year.
	 
	 	 
	“Participant”

	 	Means an employee of the Company
included in the Supplemental Plan
pursuant to Section II.
	 
	 	 
	“Payment Options”

	 	Means the form of benefit payments
elected by a Participant under
Section VI.
	 
	 	 
	“Pension Plan”

	 	Means the Pension Plan for Employees
of Consumers Energy Company, as
amended.
	 
	 	 
	“Plan Administrator”

	 	Means the Benefit Administration
Committee as selected by the Chief
Executive Officer and Chief
Financial Officer of the Company to
manage this Supplemental Plan.
	 
	 	 
	“Preference Service”

	 	Means the period of service credited
to a Participant pursuant to Section
III.
	 
	 	 
	“Provisional Payee”

	 	Means the individual named by the
Participant pursuant to Section
VI(1)(C) to receive a benefit upon
his death.

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	“Retirement Income”

	 	Means the income which would be
payable to the Participant from the
Pension Plan if the Participant were
to elect to start a monthly benefit
as of the applicable date.
	 
	 	 
	“Separation from
Service”

	 	Means the Employee retires or
otherwise has a separation from
service from the company as defined
under Code Section 409A and any
applicable regulations. The Plan
Administrator will determine,
consistent with the requirements of
Code Section 409A and any applicable
regulations, to what extent a person
on a leave of absence, including on
paid sick leave pursuant to Company
policy, has incurred a Separation
from Service. Notwithstanding the
above, a Separation from Service
will occur consistent with the
requirements of Code Section 409A
when it is reasonably anticipated
that the future level of bona fide
services provided by the Employee
(whether as an employee or as an
independent contractor) will be no
more than 45% of the average level
of bona fide services performed by
the Employee (whether as an employee
or as an independent contractor)
over the immediately preceding
36-month period (or the full period
of services, if less than 36
months).
	 
	 	 
	“Supplemental
Executive
Retirement
Income”

	 	Means the monthly retirement income
provided for by this Supplemental
Plan.
	 
	 	 
	“Supplemental
Plan or Plan”

	 	Means the Supplemental Executive
Retirement Plan as it is described
in this instrument.

The masculine pronoun wherever used herein shall mean or include the feminine pronoun.

SECTION II. ELIGIBILITY

1. Employees included on January 1, 1982. Each officer or other executive of the Company in
Salary Grades E-1 and above on January 1, 1982, who is eligible for inclusion in the Pension Plan
on that date, will be included in the Supplemental Plan as of January 1, 1982.

2. Employees included after January 1, 1982. Each officer or other executive of the
Company who is eligible for inclusion in the Pension Plan and is appointed to a position at Salary
Grade E-1 or above after January 1, 1982, will be included in the Supplemental Plan on the first
day of the month after he assumes such a position. Effective May 1, 1995, an officer or executive
of Consumers Energy who is eligible for inclusion in the Pension Plan and is appointed to a
position at Salary Grade F or above will be included in the Supplemental Plan on the first day of
the month after he assumes such position. Any employee hired or promoted to a Salary Grade F or
above (E-1 or above for CMS employees) on or after July 1, 2003 and who is not eligible for
inclusion in the final average pay provisions of the Pension Plan will not be included in this
Plan. Effective as of January 1, 2004, the Salary structure for non-officer employees of CMS
Energy Corporation and its subsidiaries was modified and as of that date, executives promoted to or
hired at a Salary Grade 24 or above and who are covered under the final average pay provisions of
the Pension Plan are eligible for this Supplemental Plan.

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3. Exclusion of additional participants. Effective as of April 1, 2006 no additional employees
will be included in this Supplemental Plan. Employees first hired at or promoted to a Salary Grade
24 or above on or after April 1, 2006 will not be eligible for benefits under this Supplemental
Plan. Employees previously covered under this Supplemental Plan who were not accruing benefits
under this Supplemental Plan as of March 31, 2006, and who are reemployed or promoted to a Salary
Grade 24 or above on or after April 1, 2006 will not resume participation in this Supplemental
Plan.

SECTION III. DETERMINATION OF PREFERENCE SERVICE

Preference Service. Each Participant at a Salary Grade E-3 or above shall be credited with
one month of Preference Service for each month of Accredited Service credited to him under the
Pension Plan until the sum of Accredited Service and Preference Service equals 20 years.
Preference Service will be reduced by the amount (if any) by which the total period of Preference
Service when added to the total period of Accredited Service exceeds 35 years.

SECTION IV. RETIREMENT

Retirement dates for the purposes of this Supplemental Plan shall be the later of Separation from
Service or age 55; provided, however, that a Participant must have five years of actual service at
an applicable salary grade to be eligible for Supplemental Executive Retirement Income.
Notwithstanding the above, any employee in a Salary Grade E-3 or above must retire and incur a
Separation from Service at age 65 unless such employee is specifically asked in writing not less
than six months prior to age 65, to remain as an active employee by the Compensation and Human
Resources Committee of the Board of Directors of the Company. The request will be for a one-year
period of time, but may be renewed each subsequent year at the discretion of the Compensation and
Human Resources Committee, or any replacement committee. This provision will apply only to the
extent that it is consistent with Section 631(c) of the Age Discrimination in Employment Act.

SECTION V. SUPPLEMENTAL EXECUTIVE RETIREMENT INCOME

1. Normal or Deferred Supplemental Executive Retirement Income. The monthly Supplemental
Executive Retirement Income payable to a Participant who, incurs a Separation from Service on or
after September 1, 2005, will be an amount equal to the product of the Participant’s Final
Executive Pay times the sum of the percentages determined below, plus, for each employee who
retires with 35 years of Accredited Service under the Pension Plan, an amount equal to $20.00 for
each additional full year of vested service that would otherwise have been credited as Accredited
Service but for the application of the minimum age requirements in the Pension Plan or the 35-year
Accredited Service maximum, minus (i) .5% multiplied by 1/12th of the Participant’s “Final Average
Compensation” up to “Covered Compensation” (as those terms are used in Section 401(l) of the
Internal Revenue Code) for each year of Accredited Service and Preference Service and (ii) the
Retirement Income provided or credited to the Participant under the Pension Plan:

2.1% for each of the first 20 years of Accredited Service and Preference Service.

1.7% for each of the next 15 years of Accredited Service and Preference Service (1.5% for
Participant’s Separating from Service after January 1, 2005 but prior to August 1, 2005).

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2. Early Supplemental Executive Retirement Income. The monthly Supplemental Executive Retirement
Income payable to a Participant who, incurs a Separation from Service on or after age 55 but prior
to age 65, will be the amount of his Accrued Supplemental Executive Retirement Income on the date
his retirement commences, reduced by 5/12th of 1% for each month by which his Early Retirement Date
precedes his age 62.

The monthly Supplemental Executive Retirement Income payable to a Participant who separates from
service prior to age 55 with a vested benefit that is not otherwise forfeited, will be the
actuarial equivalent (currently established by the Plan actuary as 38.3%), payable at age 55, of
the accrued Supplemental Executive Retirement Income.

3. Payments Under this Supplemental Plan. The payments provided for in this Supplemental
Plan shall be made by the Company at such times as required under this Supplemental Plan; provided,
however, that, while the Company hopes and expects to make the payments provided for under this
Supplemental Plan, such payment is not guaranteed. Payments under this Supplemental Plan may be
accelerated or delayed only to the extent permitted by Code Section 409A.

4. Establishment of Fund. The Company may establish a fund, as part of the general assets of the
Company, and subject to the claims of the general creditors of the Company, to provide for the
payments required under this Supplemental Plan.

5. Disability Service Pension Supplement. If a Participant is totally disabled (unable to perform
the Participant’s regular job because of disease or injury) and, as a result, fails to accumulate
Accredited Service under the Pension Plan for some period of time, a Disability Service Pension
Supplement will be calculated and paid as if Accredited Service and applicable Preference Service
were credited during such period subject to the following:

	A.	 	The period of Disability Service begins when the Participant stops
accumulating Accredited Service under the Pension Plan as a result of
the Participant’s total disability, provided that the Participant has
not undertaken other employment.
	 
	B.	 	The period of Disability Service ends when the Participant first:

	 	(i)	 	Begins again to accumulate Accredited Service under the Pension Plan,
	 
	 	(ii)	 	Undertakes other employment,
	 
	 	(iii)	 	Attains age 55.

	C.	 	The “Final Executive Pay” of the Participant, for purposes of
determining the Disability Pension Supplement only, will be calculated
as if the Participant were earning during the period of Disability
Service the sum of (1) the Participant’s last monthly rate of basic
earnings prior to the period of Disability Service, and (2) 1/12th of
the average of the Incentive Compensation (if any) for the five years
of Accredited Service while in an eligible salary grade immediately
preceding the period of Disability Service (or the monthly average of
Incentive Compensation earned over the Participant’s Accredited
Service if the Participant has fewer than five years of Accredited
Service while in an eligible salary grade), increased or decreased
each July 1, following the beginning of the Participant’s period of
Disability Service, according to the change in the Bureau of Labor
Statistics Consumer Price Index (CPI-W) for the preceding 12-month
period of Disability Service (or lesser period of Disability Service,
if applicable). However, no July 1 increase or decrease will exceed
an amount

5

 

	 	 	which could result in an increase greater than a 5% compounded annual increase since the
beginning of the Participant’s period of Disability Service, or in a reduction in the
Participant’s Final Executive Pay to an amount less than the Participant’s Final Executive Pay
prior to the period of Disability Service. For purposes of this provision, the Consumer Price
Index for the second month previous to any measurement date will be deemed to be in effect on
such date.
	 
	D.	 	The amount of the Disability Service Pension Supplement is the Supplemental Executive
Retirement Income, calculated using Final Executive Pay as determined in Section V, subsection
5.C above, and giving credit for Accredited Service and applicable Preference Service for any
period of Disability Service, less:

	 	(i)	 	The Supplemental Executive Retirement Income calculated without regard to the
Disability Service Pension Supplement,
	 
	 	(ii)	 	The Retirement Income that is or would be provided by the Pension Plan if the
Participant elected to retire, and
	 
	 	(iii)	 	Any amount paid to a retired Participant for lost benefits under the Pension Plan, for
the period of Disability Service, under a disability insurance policy, the premiums for
which were paid in whole or in part by CMS Energy Corporation or any subsidiaries which are
at least 80% owned, directly or indirectly, by CMS Energy Corporation.

	E.	 	Payments will begin as of the later of i) the first of the month following the Participant’s
attainment of age 55, or ii) the seventh month following the Participant’s separation from
service due to disability.

SECTION VI. PAYMENT OPTIONS AND

PRE-RETIREMENT SURVIVOR BENEFIT

1. Payment Options. Prior to December 31, 2007, a Participant must elect to receive his benefit
in either a Single Sum Option or a Monthly Annuity Option. This Payment Option elected by a
Participant may not be changed after December 31, 2007. Any Participant failing to make a Payment
Election prior to December 31, 2007 will be presumed to have elected to continue to receive the
Monthly Annuity Option. Under either Payment Option benefit payments will commence on: i) the
first day of the seventh month following Separation from Service if a Participant incurs a
Separation from Service on or after age 55; or, ii) if a Participant incurs a Separation from
Service prior to age 55, the later of age 55 or the first day of the seventh month following
Separation from Service. For persons incurring a Separation from Service in 2007, the benefit
option will be that elected on or before December 31, 2006.

	A.	 	The Single Sum Payment will be determined by:

	 	(i)	 	The present value of the Participant’s Supplemental Executive Retirement Income
determined on the basis of the benefit the Participant would have been entitled to on the
first day of the month following the later of his 65th birthday or his Retirement Date.
The benefit will be the present value of the deferred annuity if the Supplemental Executive
Retirement Income commences prior to age 65 and will not include any early retirement
subsidies in Section V(2) of this Supplemental Agreement;

6

 

	 	(ii)	 	Payment will be based upon the mortality tables used by the Pension Plan for computing
Single Sums. The interest rate will be based on the earnings assumption used to comply
with Financial Accounting Standard 87 under the Pension Plan (which is based on the assumed
rate of return on assets) or such other reasonable mortality table or interest assumptions
as the Plan Administrator may adopt from time to time;
	 
	 	(iii)	 	Payment will not include any amounts otherwise forfeited under this Supplemental Plan;
and
	 
	 	(iv)	 	If a Participant dies after Separation from Service after age 55, but prior to payment
of the Single Sum, his or her estate will receive the present value of the Single Sum on
the first day of the seventh month following the Separation from Service.

	B.	 	Payment of the Monthly Annuity Option will be made to the Participant as follows:

	 	(i)	 	If the Monthly Annuity is scheduled to commence upon the seventh month following
Separation from Service, the initial payment will include the payments for the six months
prior to the payment date, less any applicable taxes and other withholdings. No interest
or lost value of money will be paid on the benefits. If a Participant dies prior to
receipt of the initial payment, any payments for months prior to his death will be made to
his Provisional Payee, if any survives him, or to his estate on the first day of the
seventh month following his Separation from Service.
	 
	 	(ii)	 	If the Monthly Annuity is scheduled to start at age 55, the benefit will commence the
later of the first of the month following the Participant’s 55th birthday or the seventh
month following Separation from Service. If the Participant dies after age 55 but prior to
receipt of the initial payment, any payments for months prior to his death will be made to
his Provisional Payee, if any survives him, or to his estate on the date the payment would
have been made to the Participant had he survived.

	C.	 	A Participant electing a Monthly Annuity Option may, at any time prior to commencement of
benefits, elect an actuarially equivalent joint and survivor annuity benefit. For this
purpose, actuarial equivalence shall be determined by the Plan’s actuary (as selected by the
Plan Administrator) applying reasonable actuarial methods and assumptions, and in accordance
with the other applicable rules under Code Section 409A and applicable regulations including
1.409A-2(b)(2)(ii). A joint and survivor annuity provides a benefit to the Participant for
his life and upon his death, provides a lifetime benefit to a Provisional Payee. A
Participant may name a Provisional Payee or change his Provisional Payee at any time that is
administratively reasonable, but not less than 8 days prior to (i) Separation from Service on
or after age 55; or (ii) 30 days prior to age 55 for a Participant Separating from Service
prior to age 55. A Participant may elect from the following Monthly Annuity Options:

	 	(i)	 	a 100% Annuity payable to him for his life with no Provisional Payee (the standard
benefit if no other election is made);
	 
	 	(ii)	 	an actuarially reduced equivalent benefit to provide a monthly annuity for his life
with a 50% survivor annuity to his named Provisional Payee;
	 
	 	(iii)	 	an actuarially reduced equivalent benefit to provide a monthly annuity for his life
with a 75% survivor annuity to his named Provisional Payee;

7

 

	 	(iv)	 	an actuarially reduced equivalent benefit to provide a monthly annuity for his life
with a 100% survivor annuity to his named Provisional Payee; or
	 
	 	(v)	 	an actuarially reduced equivalent benefit to provide a monthly annuity for his life,
provided that if he dies less than 10 years following payment commencement date, his
Provisional Payee or the estate of the last surviving of the Participant or the Provisional
Payee will receive the same monthly payment until a date that is 10 years from the month
the Executive Retirement Income was first allocated as part of an initial payment.

If the Participant elects a 50%, 75% or 100% survivor annuity and the Provisional Payee dies while
the Participant is in pay status, the unreduced amount will be restored effective the first of the
month following the death of the Provisional Payee.

2. Pre-Retirement Survivor Benefit.

	A.	 	Participants Actively on Payroll. A Participant may select one beneficiary to receive a
benefit in the event of the Participant’s death subsequent to attaining five years as a
Participant in this Supplemental Plan and prior to Separation from Service. A married
Participant is presumed to have selected his spouse to receive the benefit unless the spouse
provides notarized consent allowing the Participant to name a different beneficiary. An
unmarried Participant who has elected a beneficiary under the Pension Plan will have the same
beneficiary under this Supplemental Plan unless he elects to file a separate beneficiary form
with the Company or the Plan Record Keeper. Payments to the beneficiary will commence the
first of the month following the Participant’s death and will be equal to 50% of the Accrued
Supplemental Executive Retirement Income which would be payable if the Participant had elected
to Separate from Service the first of the month following his date of death adjusted for Early
Retirement in accordance with Section V (2). Notwithstanding the above, if a Participant is
younger than age 55 at the time of his death, the benefit payable to the beneficiary will be
32.5% of the Accrued Supplemental Early Retirement Income without any further adjustments.
	 
	B.	 	Participants Separating from Service Prior to Age 55. A Participant incurring a Separation
from Service prior to age 55 will have a pre-retirement survivor benefit for his spouse for
the period of time he is married after Separation from Service. Payments to the spouse will
commence the first of the month following the Participant’s death and will be equal to 20% of
the Supplemental Executive Retirement. The Supplemental Executive Retirement Income of a
Participant will be reduced for any year or portion of a year that this option is elected.
The reduction will be .1% for any year or portion of a year the election is in effect from the
date the benefit is elected through age 44, plus .3% for any year or portion of a year the
benefit is in effect from age 45 through age 54, plus .5% if the benefit is in effect the year
the employee attains age 55. With the spouse’s notarized consent the Participant may waive
this coverage.

SECTION VII. TERMINATION OF SERVICE

If a Participant included in the Supplemental Plan voluntarily terminates his services prior to age
55 other than in accordance with the terms of an Employment Agreement effective following a Change
in Control as defined in the Employment Agreement, the Participant will forfeit all Supplemental
Executive Retirement Income except for any amount attributable to Earnings not permitted to be used
for benefit calculation under the Pension Plan by the Internal Revenue

8

 

Code or Regulations thereunder. Any such amount shall be calculated without Preference Service or
Incentive Income. A Participant whose services are terminated for any reason prior to attaining
five years of actual or disability service following inclusion in this Supplemental Plan shall not
be eligible for Supplemental Executive Retirement Income except as provided for in any Employment
Agreement which provides for additional Years of Service, Earnings and Incentive Compensation to be
used in the calculation of Retirement Income in the event of a Change in Control.

SECTION VIII. FORFEITURE

A Participant who is discharged by the Company for cause, or an employee who is subsequently
convicted of any felony committed while in the course of his employment with the Company, which
felony involved theft, malicious destruction or misuse of the property of the Company or the
embezzlement or misapplication of the funds of the Company, or who makes an admission in writing of
the commission of such felony, shall be ineligible for and forfeit all Supplemental Executive
Retirement Income.

SECTION IX. NON-ALIENATION OF BENEFITS

No benefit under the Supplemental Plan shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, charge, renunciation, or reduction and any attempt
so to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, renounce, or reduce
the same shall be void, nor shall any such benefit be in any manner liable for or subject to the
debts, contracts, liabilities, engagements or torts of the person entitled to such benefit.

If any Participant or retired Participant or any Provisional Payee under the Supplemental Plan is
adjudicated bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber,
charge, renounce, or reduce any benefit under the Supplemental Plan, except as specifically
provided in the Supplemental Plan, then such benefit shall cease and terminate and in that event,
subject to the requirements of Code Section 409A, the Plan Administrator shall hold or apply the
same or any part thereof to or for the benefit of such Participant or retired Participant or
Provisional Payee in such manner as the Plan Administrator may think proper, provided the Plan
Administrator shall not act in any manner as would perpetuate the alienations prohibited by this
Section. Nothing in this provision provides the Plan Administrator any power to accelerate any
payments under this Supplemental Plan or to defer any payments under this Supplemental Plan other
than in compliance with Code Section 409A and applicable regulations.

9

 

SECTION X. LIMITATION OF RIGHTS

Neither the establishment of this Supplemental Plan, nor any modification thereto, nor the payment
of any benefits, shall be construed as giving to any Participant, other employee, or other person
any legal or equitable rights against the Company, or any officer or employee thereof, or the Plan
Administrator, except as herein provided. Except as set forth in Section IV, under no
circumstances shall the terms of employment of any employee be modified or in any way affected
hereby. Inclusion under the Supplemental Plan will not give any Participant or any Provisional
Payee any right to claim a Supplemental Executive Retirement Income except to the extent such right
is specifically fixed under the terms of the Supplemental Plan. Subject to the provisions of this
Supplemental Plan and the Supplemental Executive Retirement Trust the Participant shall have no
rights greater than those of a general, unsecured creditor of the Company.

SECTION XI. ADMINISTRATION OF SUPPLEMENTAL PLAN

The general administration of this Supplemental Plan shall be placed in the Plan Administrator
provided for in this Supplemental Plan. The determination of the Plan Administrator as to any
question or matter arising under this Supplemental Plan shall be conclusive and binding.

The Participant shall file any claim for benefits with the Plan Administrator (EP6-212), One Energy
Plaza, Jackson, Michigan 49201. Written notice of any determination will generally be provided
within 60 days after the claim is filed. A denial will include an explanation including how to
perfect the claim when appropriate. A Participant, or his authorized representative, may appeal
such denial of his original claim within 90 days on the notice of denial and may submit additional
information and appear before the Plan Administrator for a hearing. A hearing will generally be
held within 60 days and a determination 60 days after the hearing. The final determination of the
Plan Administrator is required before pursuing other possible remedies. The findings of fact and
interpretation of the Plan by the Plan Administrator is final, conclusive and binding on the
parties.

SECTION XII. RECOUPMENT

Any benefit under this Plan is also subject to recoupment as required by applicable law.

SECTION XIII. AMENDMENT, MODIFICATION OR

TERMINATION OF THE SUPPLEMENTAL PLAN

This Supplemental Plan may be amended, modified or terminated at any time by action of the
Board of Directors of the Company. Notwithstanding any other provisions of this Supplemental Plan,
in the event of a Change in Control (as defined in an Employment Agreement between the Participant
and CMS Energy Corporation), each such Participant covered under an Employment Agreement shall
receive such additional vesting and benefits consistent with the terms of the Employment Agreement.
While the Company hopes and expects to continue the Supplemental Plan indefinitely, it reserves
the right to terminate or modify it at any time. The Plan Administrator may amend this
Supplemental Plan, consistent with the terms of its charter, to comply with any applicable laws,
rules or regulations, including Section 409A, to clarify its terms or to provide for administrative
requirements. Any amendment or termination will be consistent with Code Section 409A and any
applicable amendments or regulations.

10

 

IN WITNESS WHEREOF, execution is hereby effected this 1st day of April, 2011.

	 	 	 	 	 

	ATTEST:

	 	CMS ENERGY CORPORATION
	 
	 	 	 	 
	/s/ Catherine M. Reynolds	 	/s/ John Russell
	 	 	 
	Vice President and Secretary	 	Chief Executive Officer, CMS Energy and

Consumers Energy
	 
	 	 	 	 
	Date:

	 	April 1, 2011	 	 
	 

	 	 	 	 

11

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