Document:

FIRST LEASE AMENDMENT TO LEASE AGREEMENT DATED AS OF AUGUST 1, 2002

 Exhibit 10.2(b) 
  
 NORTH CAROLINA 
  
 FIRST LEASE AMENDMENT 
  
 FORSYTH COUNTY 
  
 This First Lease Amendment (“Amendment”), made effective as of the 1st day
of January, 2005 (the “Amendment Date”), by and between Wake Forest University Health Sciences, a North Carolina non-profit corporation having its principal office in Winston-Salem, North Carolina, (“Landlord”); and Targacept,
Inc., a Delaware corporation, having its principal office in Winston-Salem, North Carolina (“Tenant”) amends that Lease entered into between the parties effective August 1, 2002 (the “Lease”). 
  
 WITNESSETH: 
  
 WHEREAS, Landlord and Tenant desire to amend the Lease upon the terms and conditions and for the rents reserved as further set forth herein,

  
 NOW, THEREFORE, Landlord and Tenant hereby agree as follows: 
  

	1.	Unless otherwise agreed herein, all of the capitalized terms of this Amendment shall have the same meanings ascribed to them in the Lease. 

  

	2.	That the Lease is amended in the following respects: 

  

	 	A.	By deleting Exhibit A of the Lease and substituting in lieu thereof the attached Exhibit A, which adds an additional 1000 rentable square feet of space from the first floor of the
Building to the Demised Premises. 

  

	 	B.	By deleting paragraph 1.2 of the Lease and renumbering paragraph 1.3 as paragraph 1.2. 

  

	 	C.	By deleting paragraph 2.3 of the Lease and substituting in lieu thereof the following: 

  

	 	“2.3	Landlord hereby grants Tenant the following options to lease additional space in the building (each, an “Option to Lease”): 

  

	 	2.3.1	  First Floor Option 

  
 Landlord hereby grants to Tenant the option to lease up to 12,338 additional rentable square feet of space on the first floor of the building (the
“First Floor Option Space”), provided Tenant shall have paid to Landlord on or before January 1, 2005 (the “Amendment Date”) the sum of $37,014 ($3.00 per rsf) as a “space hold fee” to secure this right for the period
from the Amendment 

 
Date through March 31, 2006 (the “First Floor Option Period”). Tenant will exercise this Option to Lease, if it elects exercise, by giving written
notice to Landlord not later than 60 days prior to Tenant’s intended occupancy date for such First Floor Option Space (the “First Floor Occupancy Effective Date”). Exercise of this Option to Lease shall effect a lease of the First
Floor Option Space from the First Floor Occupancy Effective Date through the balance of the Initial Term and, only if Targacept elects both to exercise the Renewal Option and to continue to lease the First Floor Option Space during the Renewal Term,
for the Renewal Term. If the Option to Lease the First Floor Option Space is exercised, (a) the First Floor Option Space shall thereupon become part of the Demised Premises for the Initial Term and, subject to the conditions set forth in the
preceding sentence, the Renewal Term and (b) Tenant will pay Rent for such First Floor Option Space during the Initial Term and, subject to the conditions set forth in the preceding sentence, the Renewal Term as set forth in paragraphs 3.1 and 3.2;
provided that (i) an amount equal to (A) $2,467.60 (the space hold fee divided by the 15 months in the First Floor Option Period) times (B) the number of calendar months for which the first day occurs after the date on which Targacept exercises the
Option to Lease the First Floor Option Space and before March 31, 2006 shall be applied as a credit against the first Rent due for the First Floor Option Space and (ii) the space hold fee is nonrefundable in the event Tenant declines to exercise the
Option to Lease the First Floor Option Space. 
  

	 	2.3.2	  PTRP Option 

  
 Landlord hereby grants to Tenant the option to lease that 4387 rentable square feet of “PTRP Space” on the first floor of the building as
designated on the attached Exhibit A-2 (the “PTRP Option Space”), the exercise of such Option to Lease being conditional on Tenant’s exercise of the Renewal Option. Tenant will exercise this Option to Lease, if it elects exercise, by
giving written notice to Landlord not less than 180 days prior to Tenant’s intended occupancy date for such space (the “PTRP Occupancy Effective Date”); provided that in no event shall the PTRP Occupancy Effective Date be prior to
July 31, 2007. Unless Landlord otherwise agrees, Tenant may exercise this Option to Lease only with respect to all of the PTRP Option Space. Exercise of this Option to Lease shall effect a lease of the PTRP Option Space from the PTRP Occupancy
Effective Date through the balance of the Renewal Term and the PTRP Option Space shall thereupon become part of the Demised Premises. Tenant will pay 

  

 2 

 
Rent for such PTRP Option Space during the Renewal Term as set forth in paragraphs 3.1 and 3.2. 
  

	 	2.3.3	  Second Floor Option 

  
 Landlord hereby grants to Tenant the option to lease an additional 20,669 rentable square feet of space, being all of the second floor of the Building
(the “Second Floor Option Space”), the exercise of such Option to Lease being conditional on Tenant’s exercise of the Renewal Option. Tenant will exercise this Option to Lease, if it elects exercise, by giving written notice to
Landlord not less than twelve (12) months prior to Tenant’s intended occupancy of such space (the “Second Floor Occupancy Effective Date”); provided that in no event shall the Second Floor Occupancy Effective Date be prior to July 31,
2007. Unless Landlord otherwise agrees, Tenant may exercise this Option to Lease only with respect to all of the Second Floor Option Space. Exercise of this Option to Lease shall effect a lease of the Second Floor Option Space from the Second Floor
Occupancy Effective Date through the balance of the Renewal Term and the Second Floor Option Space shall thereupon become part of the Demised Premises. Tenant will pay Rent for such Second Floor Option Space during the Renewal Term as set forth in
paragraphs 3.1 and 3.2.” 
  

	 	D.	By deleting clause “b” of the third sentence of paragraph 2.4, and substituting the following in lieu thereof: 

  
 “b) upon Tenant’s request pursuant to paragraph 6.1 to require
Landlord to provide Tenant an allowance for redecorating or for upfitting of the Demised Premises, and continuing for the remainder of the Renewal Term; and” 
  

	 	E.	By deleting paragraph 3.1 of the Lease and substituting the following in lieu thereof: 

  

	 	“3.1	Tenant will pay annual rental pursuant to the following schedule (“rsf” indicates “rentable square foot”): 

  

													
	Term

	  	 Effective Date

	  	Demised Premises

	 	  	 	  	 40,432 rsf
 3rd & 4th Floors

	  	1000 rsf First Floor

	  	1st Floor Option
Space

	 	1st Floor PTRP
Space

	 	Second Floor Space

	Initial Term	  	 Commencement Date
 8-1-02
	  	36.00/rsf	  	—	  	—	 	—	 	—
							
	 	  	 Amendment Date
 1-1-05
	  	—	  	15.00/rsf	  	—	 	—	 	—
							
	 	  	First Floor Occupancy Effective Date	  	—	  	—	  	15.00/rsf*	 	—	 	—
							
	Renewal Term	  	8-1-2007	  	33.60/rsf	  	15.00/rsf	  	15.00/rsf*	 	—	 	—
							
	 	  	 PTRP Occupancy
 Effective Date
	  	—	  	—	  	—	 	15.00/rsf*	 	—
							
	 	  	Second Floor Occupancy Effective Date	  	—	  	—	  	—	 	—	 	15.00/rsf*

  
 *if corresponding option is exercised

  

 3 

 (herein collectively “Rent”). Rent is payable in equal monthly installments, in advance on the
first day of each calendar month of each calendar year during the Initial Term and, if applicable, the Renewal Term, prorated for any partial month. Any increases or decreases in the amount of square footage leased during a month will be adjusted in
the subsequent monthly payment. Rent payments shall be payable to “Wake Forest University Health Sciences” and sent to Landlord in care of Controller’s Office, Attention: Doug Lischke, Medical Center Boulevard, Winston-Salem, NC,
27157.” 
  

	 	F.	By deleting the first sentence of paragraph 4.1 of the Lease and substituting the following in lieu thereof: 

  
 “Tenant shall have the right, subject to the Landlord’s
obligations to existing tenants, to the exclusive use (without payment of any additional rent) of a pro rata share of the underground parking available for the Building based on Tenant’s rentable square footage; such spaces shall be designated
for use by Tenant and are, as of the Commencement Date (and subject to increase upon exercise of any one or more of the Options to Lease set forth in paragraph 2.3), as shown on attached Exhibit A-2.” 
  

	 	G.	By deleting paragraph 6 of the Lease and substituting the following in lieu thereof: 

  

	 	6.	Upfitting/Condition of Demised Premises 

  

	 	6.1	Except as otherwise set forth herein, Tenant accepts the Demised Premises in their present condition, which condition includes certain upfitting and improvements to the third and
fourth floors made by Landlord at its cost and expense and to Tenant’s specifications prior to the Commencement Date and in accordance with that prior lease agreement between the parties dated April 20, 2001. At any time during the second year
of the Renewal Term, Landlord will provide Tenant, upon Tenant’s request, an allowance of Ten Dollars ($10.00) per rentable square foot of the third and fourth floors of the Demised Premises for use by Tenant in redecoration of such floors of
the Demised Premises. 

  

	 	6.2	 On or before the Amendment Date, Landlord shall have installed at its cost and expense a door, ceiling grid with lights, and one electrical outlet in the 1000
rentable square feet of space from the 

  

 4 

	 	 
first floor of the Building added to the Demised Premises as of the Amendment Date. 

  

	 	6.3	Upon Tenant’s exercise of the Option to Lease the First Floor Option Space, Landlord will at its cost and expense install up to four card readers and repair carpet and patch
and paint as necessary. 

  

	 	6.4	Upon Tenant’s exercise of the Option to Lease the PTRP Option Space, Landlord will at its cost and expense install two card readers and a door at the hallway off the main
lobby. 

  

	 	6.5	Upon Tenant’s exercise of the Option to Lease the Second Floor Option Space, Landlord will provide Tenant, upon Tenant’s request, an allowance of Ten Dollars ($10.00) per
rentable square foot of leased Second Floor Space as an upfit allowance for such Second Floor Space. 

  

	3.	Except as amended herein, all of the terms and conditions of the Lease shall remain in full force and effect. 

  
 IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be
executed, pursuant to authority duly granted, effective as of the Amendment Date set forth above. 
  

			
	LANDLORD:	 	TENANT:
		
	Wake Forest University Health Sciences	 	Targacept, Inc.
		
	By:    /s/    Richard H. Dean, M.D.	 	By:    /s/    J. Donald deBethizy
	          Richard H. Dean, M.D.	 	          J. Donald deBethizy
	          President	 	          President
		
	Date: January 6, 2005	 	Date: January 4, 2005

	

  

 5 

 Exhibit A 
  
 Demised Premises 
  
 The Demised Premises consists of the following: 
  

	 	•	As of the Commencement Date, all of the third and fourth floors, consisting of 40,432 rentable square feet, including within the meaning of “Premises” or “Demised
Premises” the entire fourth floor of the Building, to be utilized as Tenant’s laboratory facilities, encompassing 20,216 rentable square feet, and 20,216 rentable square feet of general office space on the third floor.

  

	 	•	As of the Amendment Date, an additional 1,000 rentable square feet on the first floor of the Building, to be utilized as “Tenant’s Storage Space,”

  
 together with rights of use of and subject to the rights of
others in and to the Common Areas of the Building. Diagrams of the Demised Premises and Common Areas (such Common Areas designated in blue and in yellow) are as shown on the attached Exhibit A-2.EX-4.2

EIGHTEENTH SUPPLEMENTAL INDENTURE

dated as of January 19, 2005

____________________

This Eighteenth Supplemental Indenture, dated as of the 19th day of January, 2005 between CMS
Energy Corporation, a corporation duly organized and existing under the laws of the State of
Michigan (hereinafter called the “Issuer”) and having its principal office at One Energy Plaza,
Jackson, Michigan 49201, and J.P. Morgan Trust Company, N.A., a national banking association
(hereinafter called the “Trustee”) and having its Corporate Trust Office at 227 West Monroe St.,
26th Floor, Chicago, IL 60606.

WITNESSETH:

WHEREAS, the Issuer and the Trustee (successor to NBD Bank, National Association) entered into
an Indenture, dated as of September 15, 1992 (the “Original Indenture”), pursuant to which one or
more series of debt securities of the Issuer (the “Securities”) may be issued from time to time;
and

WHEREAS, Section 2.3 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 8.1(e) of the Original Indenture provides that a supplemental indenture may
be entered into by the Issuer and the Trustee without the consent of any Holders (as defined in the
Original Indenture) of the Securities to establish the form and terms of the Securities of any
series; and

WHEREAS, the Issuer has requested the Trustee to join with it in the execution and delivery of
this Eighteenth Supplemental Indenture in order to 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
Issuer’s “6.30% Senior Notes due 2012” (the “2012 Notes”), providing for the issuance of the 2012
Notes and amending and adding certain provisions thereof for the benefit of the Holders of the 2012
Notes; and

WHEREAS, the Issuer and the Trustee desire to enter into this Eighteenth Supplemental
Indenture for the purposes set forth in Sections 2.3 and 8.1(e) of the Original Indenture as
referred to above; and

WHEREAS, the Issuer has furnished the Trustee with a copy of the resolutions of its Board of
Directors certified by its Secretary or Assistant Secretary authorizing the execution of this
Eighteenth Supplemental Indenture; and

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

NOW, THEREFORE, for and in consideration of the premises and the purchase of the 2012 Notes to
be issued hereunder by holders thereof, the Issuer and the Trustee mutually covenant and agree, for
the equal and proportionate benefit of the respective holders from time to time of the 2012 Notes,
as follows:

ARTICLE I

STANDARD PROVISIONS; DEFINITIONS

SECTION 1.01. Standard Provisions. The Original Indenture together with this Eighteenth
Supplemental Indenture and all previous indentures supplemental thereto entered into pursuant to
the applicable terms thereof are hereinafter sometimes collectively referred to as the “Indenture.”
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 1.02. Definitions.

(a) The following terms have the meanings set forth in the Sections hereof set forth below:

	 	 	 	 	 
	Term	 	Section
	Applicable Premium
	 	 	2.04	 
	Application Period
	 	 	4.06	 
	Asset Sale
	 	 	4.06	 
	Change in Control Date
	 	 	3.01	 
	Change in Control Purchase Notice
	 	 	3.01	(b)
	Change in Control Purchase Price
	 	 	3.01	 
	Company
	 	 	2.03	 
	Depositary
	 	Article VI

	DTC
	 	 	2.03	 
	Events of Default
	 	 	5.01	 
	Excess Proceeds
	 	 	4.06	 
	Global Note
	 	Article VI

	Indenture
	 	 	1.01; 2.04	 
	Interest Payment Date
	 	 	2.03	 
	issue
	 	 	4.04	(a)
	Issuer
	 	Preamble; 2.03

	Lien
	 	 	4.02	(a)
	Maturity
	 	 	2.03	 
	Original Indenture
	 	Recitals

	Original Issue Date
	 	 	2.03	 
	Place of Payment
	 	 	2.03	 
	Purchase Date
	 	3.01(a)(iii)
	Record Date
	 	 	2.03	 
	Required Repurchase
	 	 	3.01	 
	Required Repurchase Notice
	 	 	3.01	(a)
	Restricted Payment
	 	 	4.05	(a)
	Securities
	 	Recitals

	Treasury Rate
	 	 	2.04	 
	Trustee
	 	Preamble; 2.04

	2012 Notes
	 	Recitals; 2.04

(b) Section 1.1 of the Original Indenture is amended to insert the new definitions applicable
to the 2012 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 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 Issuer ceases to own
beneficially, directly or indirectly, at least 80% of the total voting power of all classes of
Capital Stock then outstanding of Consumers (whether arising from issuance of securities of the
Issuer or Consumers, any direct or indirect transfer of securities by the Issuer or Consumers, any
merger, consolidation, liquidation or dissolution of the Issuer 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 35% of the Voting Stock of
the Issuer; or (iii) the Issuer 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 Issuer, in either event pursuant to a
transaction in which the outstanding Voting Stock of the Issuer 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 Issuer is changed into or exchanged for Voting Stock of the surviving
corporation and (B) the holders of the Voting Stock of the Issuer 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 Electric and Gas” means CMS Electric and Gas Company, a Michigan corporation and
wholly-owned subsidiary of Enterprises.

“CMS ERM” means CMS Energy Resource Management Company, formerly CMS MST, a wholly-owned
subsidiary of Enterprises.

"CMS Gas Transmission” means CMS Gas Transmission Company (formerly known as CMS Gas
Transmission and Storage Company), a Michigan corporation and wholly-owned subsidiary of
Enterprises.

"CMS Generation” means CMS Generation Co., a Michigan corporation and wholly-owned subsidiary
of Enterprises.

"CMS MST” means CMS Marketing, Services and Trading Company, a wholly-owned subsidiary of
Enterprises, whose name was changed to CMS Energy Resource Management Company effective January
2004.

"Consolidated Assets” means, at any date of determination, the aggregate assets of the Issuer
and its Consolidated Subsidiaries determined on a consolidated basis 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 Current Liabilities” means, for any period, the aggregate amount of liabilities
of the Issuer and its Consolidated Subsidiaries which may properly be classified as current
liabilities (including taxes accrued as estimated), after (i) eliminating all inter-company items
between the Issuer and any Consolidated Subsidiary and (ii) deducting all current maturities of
long-term Indebtedness, all as determined in accordance with generally accepted accounting
principles.

"Consolidated Indebtedness” means, at any date of determination, the aggregate Indebtedness of
the Issuer and its Consolidated Subsidiaries determined on a consolidated basis in accordance with
generally accepted accounting principles; provided 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 Issuer 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 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 Issuer or any Consolidated Subsidiaries under clause (v) or (vi) of the
definition of Indebtedness, provided, however, that Consolidated Interest Expense shall exclude (A)
any costs otherwise included in interest expense recognized on early retirement of debt and (B) any
interest expense in respect of any Indebtedness of any Subsidiary of Consumers, CMS Generation, CMS
Electric and Gas, CMS Gas Transmission, CMS ERM or any other Designated Enterprises Subsidiary,
provided that such Indebtedness is without recourse to any assets of the Issuer, Consumers,
Enterprises, CMS Generation, CMS Electric and Gas, CMS Gas Transmission, CMS ERM or any other
Designated Enterprises Subsidiary.

"Consolidated Net Income” means, for any period, the net income of the Issuer 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
Issuer’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 Issuer or a Consolidated Subsidiary as a dividend or other distribution
and (B) the Issuer’s equity in a net loss of any such Person for such period shall be included in
determining such Consolidated Net Income;

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

(iii) any gain or loss realized upon the sale or other disposition of any property, plant or
equipment of the Issuer 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; and

(iv) any net income of any Subsidiary of Consumers, CMS Generation, CMS Electric and Gas, CMS
Gas Transmission, CMS ERM or any other Designated Enterprises Subsidiary whose interest expense is
excluded from Consolidated Interest Expense, provided, however, that for purposes of this
subsection (iv), any cash, dividends or distributions of any such Subsidiary to the Issuer shall be
included in calculating Consolidated Net Income.

"Consolidated Net Tangible Assets” means, for any period, the total amount of assets (less
accumulated depreciation or amortization, allowances for doubtful receivables, other applicable
reserves and other properly deductible items) as set forth on the most recently available quarterly
or annual consolidated balance sheet of the Issuer and its Consolidated Subsidiaries, determined on
a consolidated basis in accordance with generally accepted accounting principles, and after giving
effect to purchase accounting and after deducting therefrom, to the extent otherwise included, the
amounts of: (i) Consolidated Current Liabilities; (ii) minority interests in Consolidated
Subsidiaries held by Persons other than the Issuer or a Restricted Subsidiary; (iii) excess of cost
over fair value of assets of businesses acquired, as determined in good faith by the Board of
Directors as evidenced by Board of Directors resolutions; (iv) any revaluation or other write-up in
value of assets subsequent to December 31, 1996, as a result of a change in the method of valuation
in accordance with generally accepted accounting principles; (v) unamortized debt discount and
expenses and other unamortized deferred charges, goodwill, patents, trademarks, service marks,
trade names, copyrights, licenses, organization or developmental expenses and other intangible
items; (vi) treasury stock; and (vii) any cash set apart and held in a sinking or other analogous
fund established for the purpose of redemption or other retirement of Capital Stock to the extent
such obligation is not reflected in Consolidated Current Liabilities.

"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 Issuer 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 Issuer.

"Designated Enterprises Subsidiary” means any wholly-owned subsidiary of Enterprises formed
after the date of this Eighteenth Supplemental Indenture which is designated a Designated
Enterprises Subsidiary by the Board of Directors.

"Enterprises” means CMS Enterprises Company, a Michigan corporation and wholly-owned
subsidiary of the Issuer.

"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 Issuer or Consumers in exchange for subordinated
debt issued by the Issuer 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 Issuer 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.

"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 Issuer or Consumers) at all times by the Issuer 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 Issuer 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 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) above 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) above 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 Issuer 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.

"Net Cash Proceeds” means, (a) with respect to any Asset Sale, the aggregate proceeds of such
Asset Sale 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 Issuer, net of (i) brokerage commissions and other fees and
expenses (including fees and expenses of counsel and investment bankers) related to such Asset
Sale, (ii) provisions for all taxes (whether or not such taxes will actually be paid or are
payable) as a result of such Asset Sale without regard to the consolidated results of operations of
the Issuer and its Restricted Subsidiaries, taken as a whole, (iii) payments made to repay
Indebtedness or any other obligation outstanding at the time of such Asset Sale that either (A) is
secured by a Lien on the property or assets sold or (B) is required to be paid as a result of such
sale and (iv) appropriate amounts to be provided by the Issuer or any Restricted Subsidiary of the
Issuer as a reserve against any liabilities associated with such Asset Sale including, without
limitation, pension and other post-employment benefit liabilities, liabilities related to
environmental matters and liabilities under any indemnification obligations associated with such
Asset Sale, all as determined in conformity with generally accepted accounting principles and (b)
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 Issuer, net of attorneys’
fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and
brokerage, consultant and other fees 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 Issuer 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.

"Other Rating Agency” means any one of Fitch, Inc. or Moody’s Investors Service, Inc., and any
successor to any of these organizations which is a nationally recognized statistical rating
organization.

"Paying Agent” means any Person authorized by the Issuer to pay the principal of (and premium,
if any) or interest on any of the 2012 Notes on behalf of the Issuer. Initially, the Paying Agent
shall be the Trustee.

"Predecessor 2012 Note” of any particular 2012 Note means every previous 2012 Note evidencing
all or a portion of the same debt as that evidenced by such particular 2012 Note; and, for the
purposes of the definition, any 2012 Note authenticated and delivered under Section 2.9 of the
Indenture in exchange for or in lieu of a mutilated, destroyed, lost or stolen 2012 Note shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen 2012 Note.

"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 Stated Maturity of the outstanding 2012 Notes or is
redeemable at the option of the holder thereof at any time prior to the first anniversary of the
Stated Maturity of the outstanding 2012 Notes.

“Regulation S” means Regulation S under the Securities Act.

"Restricted Subsidiary” means any Subsidiary (other than Consumers and its Subsidiaries) of
the Issuer which, as of the date of the Issuer’s most recent quarterly consolidated balance sheet,
constituted at least 10% of the total Consolidated Assets of the Issuer 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 Issuer
and its Restricted Subsidiaries could not incur at least one dollar of additional Indebtedness
under Section 4.04 hereof, 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 Issuer or a
Restricted Subsidiary and (iii) such Restricted Subsidiary must be a Consolidated Subsidiary.

“Securities Act” means the Securities Act of 1933, as amended.

"Standard & Poor’s” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill
Companies, Inc., and any successor thereto which is a nationally recognized statistical rating
organization, or if such entity shall cease to rate the 2012 Notes or shall cease to exist and
there shall be no such successor thereto, any other nationally recognized statistical rating
organization selected by the Issuer which is acceptable to the Trustee.

"Subordinated Indebtedness” means any Indebtedness of the Issuer (whether outstanding on the
date of this Eighteenth Supplemental Indenture or thereafter incurred) which is contractually
subordinated or junior in right of payment to the 2012 Notes.

"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 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 Issuer, each of the members of the Consolidated Group (as defined therein), and each
of the corporations that become members of the Consolidated Group.

"Voting Stock” means securities of any class or classes the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for corporate directors (or persons performing
similar functions).

ARTICLE II

DESIGNATION AND TERMS OF THE 2012 NOTES; FORMS

SECTION 2.01. Establishment of Series.

(a) There is hereby created a series of Securities to be known and designated as the “6.30%
Senior Notes due 2012” to be issued in aggregate principal amount of $150,000,000. Additional
Securities, without limitation as to amount, having substantially the same terms as the 2012 Notes
(except a different issue date, issue price and bearing interest from the last Interest Payment
Date to which interest has been paid or duly provided for on the 2012 Notes, and, if no interest
has been paid, from January 19, 2005), may also be issued by the Issuer pursuant to the Indenture
without the consent of the existing Holders of the 2012 Notes. Such additional Securities shall be
part of the same series as the 2012 Notes. The Stated Maturity of the 2012 Notes is February 1,
2012; the principal amount of the 2012 Notes shall be payable on such date unless the 2012 Notes
are earlier redeemed or purchased in accordance with the terms of the Indenture.

(b) The 2012 Notes 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 of 6.30% per annum stated
therein until the principal thereof is paid or made available for payment. Interest will be
payable semiannually on each Interest Payment Date and at Maturity, as provided in the form of the
2012 Note in Section 2.03 hereof.

(c) The Record Date referred to in Section 2.3(f)(4) of the Indenture for the payment of the
interest on any 2012 Note payable on any Interest Payment Date (other than at Maturity) shall be
the 15th day prior to the relevant Interest Payment Date (whether or not a Business Day) except
that the Record Date for interest payable at Maturity shall be the date of Maturity.

(d) The payment of the principal of, premium (if any) and interest on the 2012 Notes shall not
be secured by a security interest in any property.

(e) The 2012 Notes shall be redeemable at the option of the Issuer, in whole or in part, at
any time and from time to time, or not less than 30 days notice at a redemption price equal to 100%
of the principal amount of such 2012 Notes being redeemed plus the Applicable Premium, if any,
thereon at the time of redemption, together with accrued interest, if any, thereon to the
redemption date. In no event will the redemption price ever be less than 100% of the principal
amount of the 2012 Notes plus accrued interest to the redemption date. The 2012 Notes shall be
purchased by the Issuer at the option of the Holders thereof as provided in Article III hereof.

(f) The 2012 Notes shall not be convertible.

(g) The 2012 Notes will not be subordinated to the payment of Senior Debt.

(h) The Issuer will not pay any additional amounts on the 2012 Notes held by a Person who is
not a U.S. person (as defined in Regulation S) in respect of any tax, assessment or government
charge withheld or deducted.

(i) The events specified in Events of Default with respect to the 2012 Notes shall include the
events specified in Article V of this Eighteenth Supplemental Indenture. In addition to the
covenants set forth in Article Three of the Original Indenture, the Holders of the 2012 Notes shall
have the benefit of the covenants of the Issuer set forth in this Eighteenth Supplemental
Indenture.

SECTION 2.02. Forms Generally. The 2012 Notes and Trustee’s certificates of authentication
shall be in substantially the form set forth in this Article II, 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 2012 Notes, as evidenced by
their execution thereof.

The definitive 2012 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 2012
Notes, as evidenced by their execution thereof.

SECTION 2.03. Form of Face of 2012 Note.

THIS SECURITY IS A GLOBAL SECURITY 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 SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED
EXCEPT 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.

Unless this Global 2012 Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to CMS Energy Corporation or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of a nominee of DTC or in such other name as is requested by an authorized representative of DTC
(and any payment is made to such nominee of DTC or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof has an interest herein.

1

CMS ENERGY CORPORATION

6.30% SENIOR NOTES DUE 2012

No.      $150,000,000

CUSIP No.: 125896AX8

ISIN No.: US125896AX86

CMS Energy Corporation, a corporation duly organized and existing under the laws of the State
of Michigan (herein called the “Issuer” or “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE &
Co., or registered assigns, the principal sum of One Hundred Fifty Million Dollars on February 1,
2012 (“Maturity”) and to pay interest thereon from January 19, 2005 (the “Original Issue Date”) or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually in arrears on February 1 and August 1 in each year, commencing on August 1, 2005
(each an “Interest Payment Date”) to the Persons in whose names the 2012 Notes are registered at
the close of business on January 17 and July 17 (each a “Record Date”), and at Maturity, at the
rate of 6.30% per annum, until the principal hereof is paid or made available for payment. The
amount of interest payable on any Interest Payment Date shall be computed on the basis of a 360-day
year of twelve 30-day months. 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 2012 Note (or one or more Predecessor 2012 Notes) is registered at the close of business
on the Record Date for such interest, which shall be the 15th day prior to such Interest Payment
Date (whether or not a Business Day) except that the 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 Record Date and may either be paid to the
Person in whose name this 2012 Note (or one or more Predecessor 2012 Notes) is registered at the
close of business on a subsequent Record Date (which shall be not less than five Business Days
prior to the date of payment of such defaulted interest) for the payment of such defaulted interest
to be fixed by the Trustee, notice whereof shall be given to Holders of 2012 Notes not less than 15
days preceding such subsequent Record Date.

This 2012 Note is subject to redemption at the option of the Issuer and to purchase by the
Issuer at the option of the Holder as specified on the reverse of this 2012 Note.

Payment of the principal of (and premium, if any) and interest, if any, on this 2012 Note will
be made at the office or agency of the Issuer maintained for that purpose in New York, New York
(the “Place of Payment”), in such 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 Issuer 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 2012 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 2012 Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

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

Dated:

CMS ENERGY CORPORATION

By     

Its:

By     

Its:

SECTION 2.04. Form of Reverse of 2012 Note.

This 6.30% Senior Note due 2012 is one of a duly authorized issue of securities of the Issuer
(herein called the “2012 Notes”), issued and to be issued under an Indenture, dated as of September
15, 1992, as supplemented by certain supplemental indentures, including the Eighteenth Supplemental
Indenture, dated as of January 19, 2005 (herein collectively referred to as the “Indenture”),
between the Issuer and J.P. Morgan Trust Company, N.A., a national banking association (ultimate
successor to NBD Bank, National Association), 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 Issuer, the Trustee, and the Holders of the 2012
Notes and of the terms upon which the 2012 Notes are, and are to be, authenticated and delivered.
This 2012 Note is one of the series designated on the face hereof, issued in an initial aggregate
principal amount of $150,000,000. Additional Securities, without limitation as to amount, having
substantially the same terms as the 2012 Notes (except a different issue date, issue price and
bearing interest from the last Interest Payment Date to which interest has been paid or duly
provided for on the 2012 Notes, and, if no interest has been paid, from January 19, 2005), may also
be issued by the Issuer pursuant to the Indenture without the consent of the existing Holders of
the 2012 Notes. Such additional Securities shall be part of the same series as the 2012 Notes.

The 2012 Notes are subject to redemption at the option of the Issuer, in whole or in part,
upon not more than 60 nor less than 30 days’ notice as provided in the Indenture at any time and
from time to time, at a redemption price equal to 100% of the principal amount of such 2012 Notes
being redeemed plus the Applicable Premium, if any, thereon at the time of redemption, together
with accrued interest, if any, thereon to the redemption date, but interest installments whose
Stated Maturity is on or prior to such redemption date will be payable to the Holder of record at
the close of business on the relevant Record Date referred to on the face hereof, all as provided
in the Indenture. In no event will the redemption price ever be less than 100% of the principal
amount of the 2012 Notes plus accrued interest to the redemption date.

The following definitions are used to determine the Applicable Premium:

“Applicable Premium” means, with respect to a 2012 Note (or portion thereof) being redeemed at
any time, the excess of (A) the present value at such time of the principal amount of such 2012
Note (or portion thereof) being redeemed plus all interest payments due on such 2012 Note (or
portion thereof), which present value shall be computed using a discount rate equal to the Treasury
Rate plus 50 basis points, over (B) the principal amount of such 2012 Note (or portion thereof)
being redeemed at such time. For purposes of this definition, the present values of the interest
and principal payments will be determined in accordance with generally accepted principles of
financial analysis.

“Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15(519) which has become publicly available at least two business
days prior to the redemption date or, in the case of defeasance, prior to the date of deposit (or,
if such Statistical Release is no longer published, any publicly available source of similar market
data)) most nearly equal to the then remaining average life to stated maturity of the 2012 Notes;
provided, however, that if the average life to stated maturity of the 2012 Notes is not equal to
the constant maturity of a United States Treasury security for which a weekly average yield is
given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest
one-twelfth of a year) from the weekly average yields of United States Treasury securities for
which such yields are given.

In the event of redemption of this 2012 Note in part only, a new 2012 Note 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 Issuer shall notify the Holder of this 2012 Note of such
occurrence and such Holder shall have the right to require the Issuer to make a Required Repurchase
of all or any part of this 2012 Note at a Change in Control Purchase Price equal to 101% of the
principal amount of this 2012 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 2012 Note, a new 2012 Note or 2012 Notes for the unrepurchased portion
hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

If an Event of Default with respect to this 2012 Note shall occur and be continuing, the
principal of this 2012 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, repurchase date, Stated Maturity
or Maturity of any 2012 Note shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of the Indenture or this 2012 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, repurchase 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, repurchase date, Stated Maturity or Maturity, as the case
may be, to such Business Day.

The Trustee and the Paying Agent shall return to the Issuer upon written request any money or
property held by them for the payment of any amount with respect to the 2012 Notes that remains
unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being
required to make any such return, shall at the expense of the Issuer cause to be published once in
a newspaper of general circulation in The City of New York or mail to each such Holder notice that
such money or property remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such publication or mailing, any unclaimed money or property
then remaining shall be returned to the Issuer. After return to the Issuer, Holders entitled to
the money or property must look to the Issuer for payment as general creditors unless an applicable
abandoned property law designates another Person.

The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
this 2012 Note or (ii) certain restrictive covenants and Events of Default with respect to this
2012 Note, in each case upon compliance with certain conditions set forth therein.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of all
outstanding 2012 Notes under the Indenture at any time by the Issuer and the Trustee with the
consent of the Holders of not less than a majority in principal amount of Securities of all series
then outstanding and affected (voting as one class).

The Indenture permits the Holders of not less than a majority in principal amount of
Securities of all series at the time outstanding with respect to which a default shall have
occurred and be continuing (voting as one class) to waive on behalf of the Holders of all
outstanding Securities of such series any past default by the Issuer, provided that no such waiver
may be made with respect to a default in the payment of the principal of or the interest on any
Security of such series or the default by the Issuer 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 2012 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 Securities of each affected series (voting as one class) shall have made written
request, and offered reasonable 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 Securities of each affected series (voting as one class) 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 2012
Note on or after the respective due dates expressed herein.

No reference herein to the Indenture and no provision of this 2012 Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and any premium and interest on this 2012 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 2012 Note is registrable in the Security Register, upon surrender of this 2012
Note for registration of transfer at the office or agency of the Issuer in any place where the
principal of and any premium and interest on this 2012 Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new 2012 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 2012 Notes 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, 2012 Notes are exchangeable for a like aggregate principal amount of 2012 Notes
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
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

The Issuer shall not be required to (i) issue, exchange or register the transfer of this 2012
Note for a period of 15 days next preceding the mailing of the notice of redemption of 2012 Notes
or (ii) exchange or register the transfer of any 2012 Note or any portion thereof selected, called
or being called for redemption, except in the case of any 2012 Note to be redeemed in part, the
portion thereof not so to be redeemed.

Prior to due presentment of this 2012 Note for registration of transfer, the Issuer, the
Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this 2012
Note is registered as the owner hereof for all purposes, whether or not this 2012 Note be overdue,
and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

All terms used in this 2012 Note without definition which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

SECTION 2.05. 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 Securities of the series designated herein referred to in the
within-mentioned Indenture.

J.P. MORGAN TRUST COMPANY, N.A.,

as Trustee

By     

Authorized Officer

2

ARTICLE III

CHANGE IN CONTROL

SECTION 3.01. Change in 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 2012 Note
shall have the right to require that the Issuer repurchase (a “Required Repurchase”) all or any
part of such Holder’s 2012 Note at a repurchase price payable in cash equal to 101% of the
principal amount of such 2012 Note plus accrued interest to the Purchase Date (the “Change in
Control Purchase Price”).

(a) Within 30 days following the Change in Control Date, the Issuer 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 Issuer to repurchase all or any part of such Holder’s 2012 Notes at the
Change in Control Purchase Price;

(ii) the Change in 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 2012 Notes to be
repurchased, which shall be consistent with this Section 3.01 and the Indenture.

(b) Holders electing to have a 2012 Note repurchased must deliver a written notice (the
"Change in Control Purchase Notice”) to the Paying Agent (initially the Trustee) at its corporate
trust office in Chicago, Illinois, 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 2012 Notes to be repurchased, which
portion must be $1,000 or an integral multiple thereof; (ii) that such 2012 Notes are to be
repurchased by the Issuer pursuant to the change in control provisions of the Indenture; and (iii)
unless the 2012 Notes are represented by one or more Global Notes, the certificate numbers of the
2012 Notes to be delivered by the Holder thereof for repurchase by the Issuer. 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 2012
Notes as to which the withdrawal notice relates and the principal amount of such 2012 Notes, if
any, which remains subject to a Change in Control Purchase Notice.

If a 2012 Note is represented by a Global Note (as described in Article VI hereof), the
Depositary or its nominee will be the Holder of such 2012 Note and therefore will be the only
entity that can elect a Required Repurchase of such 2012 Note. To obtain repayment pursuant to
this Section 3.01 with respect to such 2012 Note, the beneficial owner of such 2012 Note must
provide to the broker or other entity through which it holds the beneficial interest in such 2012
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 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 3.01.
Such broker or other entity will provide to the Paying Agent (i) the Change in 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
3.01 to such beneficial owner.

(c) Payment of the Change in Control Purchase Price for a 2012 Note for which a Change in
Control Purchase Notice has been delivered and not withdrawn is conditioned (except in the case of
a 2012 Note represented by one or more Global Notes) upon delivery of such 2012 Note (together with
necessary endorsements) to the Paying Agent at its office in Chicago, Illinois, 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
in Control Purchase Price for such 2012 Note will be made promptly following the later of the
Purchase Date or the time of delivery of such 2012 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 2012 Note on the Business Day following the Purchase Date, then, on and after such date,
interest will cease accruing, and all other rights of the Holder shall terminate (other than the
right to receive the Change in Control Purchase Price upon delivery of the 2012 Note).

(d) The Issuer shall comply with the provisions of Regulation 14E and any other tender offer
rules under the Exchange Act, which may then be applicable in connection with any offer by the
Issuer to repurchase 2012 Notes at the option of Holders upon a Change in Control.

(e) No 2012 Note may be repurchased by the Issuer 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 2012 Notes).

3

ARTICLE IV

ADDITIONAL COVENANTS OF THE ISSUER

WITH RESPECT TO THE 2012 NOTES

SECTION 4.01. Existence. So long as any of the 2012 Notes are outstanding, subject to
Article Nine of the Original Indenture, the Issuer will do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence.

SECTION 4.02. Limitation on Certain Liens.

(a) So long as any of the 2012 Notes are outstanding, the Issuer shall not create, incur,
assume or suffer to exist any lien, mortgage, pledge, security interest, conditional sale, title
retention agreement or other charge or encumbrance of any kind, or any other type of arrangement
intended or having the effect of conferring upon a creditor of the Issuer or any Subsidiary a
preferential interest (hereinafter in this Section 4.02 referred to as a “Lien”) upon or with
respect to any of its property of any character, including without limitation any shares of Capital
Stock of Consumers or Enterprises, without making effective provision whereby the 2012 Notes shall
(so long 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 Issuer or (C) Support Obligations;

(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 Issuer 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 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 4.02 securing
Indebtedness of the Issuer; 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 Issuer at such date shall not exceed 5% of Consolidated
Net Tangible Assets at such date.

SECTION 4.03. Limitation on Consolidation, Merger, Sale or Conveyance. So long as any of the
2012 Notes are outstanding and until the 2012 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
Issuer will be permanently released from the provisions of this Section 4.03, and subject also to
Article Nine of the Original Indenture, the Issuer shall not consolidate with or merge into any
other Person or sell, lease or convey the property of the Issuer in the entirety or substantially
as an entirety, unless (a) 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 Issuer
immediately prior to the transaction and (b) 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 4.04 hereof.

SECTION 4.04. Limitation on Consolidated Indebtedness.

(a) So long as any of the 2012 Notes are outstanding and until the 2012 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 Issuer will be permanently released from the provisions of
this Section 4.04, the Issuer shall not, and shall not permit any Consolidated Subsidiary of the
Issuer to, issue, create, assume, guarantee, incur or otherwise become liable for (collectively,
"issue”), directly or indirectly, any Indebtedness unless the Consolidated Coverage Ratio of the
Issuer 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 Issuer 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 Issuer 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.

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

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

(2) Indebtedness (other than Indebtedness described in Section 4.04(b)(1) hereof)
outstanding on the date of this Eighteenth Supplemental Indenture, as set forth on
Schedule 4.04(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 2012 Notes, the Indebtedness is
subordinated to the 2012 Notes in right of payment;

(3) Indebtedness of the Issuer owed to and held by a Subsidiary and Indebtedness of a
Subsidiary owed to and held by the Issuer; provided, however, that, in the case of
Indebtedness of the Issuer owed to and held by 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 Issuer or a Subsidiary)
shall be deemed for the purposes of this Section 4.04(b) to constitute the issuance of such
Indebtedness by the Issuer;

(4) Indebtedness of the Issuer issued in exchange for, or the proceeds of which are used to
refund or refinance, Indebtedness of the Issuer issued in accordance with Section 4.04(a)
hereof, 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 2012 Notes, the Indebtedness so
issued is subordinated to the 2012 Notes in right of payment;

(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 Section 4.04(a) hereof, 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 and
(B) shall have an Average Life equal to or greater than the remaining Average Life of the
Indebtedness so exchanged, refunded or refinanced.

(6) Indebtedness of a Consolidated Subsidiary issued to acquire, develop, improve,
construct or to provide working capital for a gas, oil or electric generation, exploration,
production, distribution, storage or transmission facility and related assets, provided
that such Indebtedness is without recourse to any assets of the Issuer, Consumers,
Enterprises, CMS Generation, CMS Electric and Gas, CMS Gas Transmission, CMS ERM or any
other Designated Enterprises Subsidiary;

(7) Indebtedness of a Person existing at the time at which such Person became a Subsidiary
and not incurred in connection with, or in contemplation of, such Person becoming a
Subsidiary. Such Indebtedness shall be deemed to be incurred on the date the acquired
Person becomes a Consolidated Subsidiary;

(8) Indebtedness issued by the Issuer not to exceed $150,000,000 in aggregate principal
amount at any time; and

(9) Indebtedness of a Consolidated Subsidiary in respect of rate reduction bonds issued to
recover electric restructuring transition costs of Consumers, provided that such
Indebtedness is without recourse to the assets of Consumers.

SECTION 4.05. Limitation on Restricted Payments.

(a) So long as the 2012 Notes are outstanding and until the 2012 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 Issuer will be permanently released from the provisions of this
Section 4.05, the Issuer shall not, and shall not permit any Restricted Subsidiary of the Issuer,
directly or indirectly, to (i) declare or pay any dividend or make any distribution on the Capital
Stock of the Issuer to the direct or indirect holders of its Capital Stock (except dividends or
distributions payable solely in its Non-Convertible Capital Stock or in options, warrants or other
rights to purchase such Non-Convertible Capital Stock and except dividends or distributions payable
to the Issuer or a Subsidiary), (ii) purchase, redeem or otherwise acquire or retire for value any
Capital Stock of the Issuer or (iii) purchase, repurchase, redeem, defease or otherwise acquire or
retire for value, prior to scheduled maturity or scheduled repayment thereof, any Subordinated
Indebtedness (any such dividend, distribution, purchase, redemption, repurchase, defeasing, other
acquisition or retirement being herein referred to as a “Restricted Payment”) if at the time the
Issuer 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

(2) the aggregate amount of such Restricted Payment and all other Restricted Payments made
since May 6, 1997 would exceed the sum of:

(A) $100,000,000;

(B) 100% of Consolidated Net Income, accrued during the period (treated as one
accounting period) from May 6, 1997 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 Cash Proceeds received by the Issuer from the issue or sale
of or contribution with respect to its Capital Stock subsequent to May 6, 1997.

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 4.05(a) hereof shall not prohibit:

(i) any purchase or redemption of Capital Stock of the Issuer made by exchange for,
or out of the proceeds of the substantially concurrent sale of, Capital Stock of
the Issuer (other than Redeemable Stock or 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 Issuer’s
Capital Stock issued in respect of the acquisition of any business or assets by the
Issuer 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 4.05;
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 4.06. Limitation on Asset Sales. So long as any of the 2012 Notes are outstanding,
the Issuer may not sell, transfer or otherwise dispose of any property or assets of the Issuer,
including Capital Stock of any Consolidated Subsidiary, in one transaction or a series of
transactions in an amount which exceeds $50,000,000 (an “Asset Sale”) unless the Issuer shall (i)
apply an amount equal to such excess Net Cash Proceeds to permanently repay Indebtedness of a
Consolidated Subsidiary or Indebtedness of the Issuer which is pari passu with the 2012 Notes, (ii)
invest an equal amount not so used in clause (i) in property or assets of a related business within
24 months after the date of the Asset Sale (the “Application Period”) or (iii) apply such excess
Net Cash Proceeds not so used in clause (i) or (ii) (the “Excess Proceeds”) to make an offer,
within 30 days after the end of the Application Period, to purchase from the Holders on a pro rata
basis an aggregate principal amount of 2012 Notes on the relevant purchase date equal to the Excess
Proceeds on such date, at a purchase price equal to 100% of the principal amount of the 2012 Notes
on the relevant purchase date and unpaid interest, if any, to the purchase date. The Issuer shall
only be required to make an offer to purchase 2012 Notes from Holders pursuant to clause (iii) if
the Excess Proceeds equal or exceed $25,000,000 at any given time.

The procedures to be followed by the Issuer in making an offer to purchase 2012 Notes from the
Holders with Excess Proceeds, and for the acceptance of such offer by the Holders, shall be the
same as those set forth in Section 3.01 herein with respect to a Change in Control.

ARTICLE V

ADDITIONAL EVENTS OF DEFAULT

WITH RESPECT TO THE 2012 NOTES

SECTION 5.01. Definition. All of the events specified in clauses (a) through (h) of Section
5.1 of the Original Indenture shall be Events of Default with respect to the 2012 Notes.

SECTION 5.02. Amendments to Section 5.1 of the Original Indenture. Solely for the purpose of
determining Events of Default with respect to the 2012 Notes, paragraphs Section 5.1(e), Section
5.1(f) and Section 5.1(h) of the Original Indenture shall be amended such that each and every
reference therein to the Issuer shall be deemed to mean either the Issuer or Consumers.

SECTION 5.03. Additional Events of Default. Solely for the purpose of determining Events of
Default with respect to the 2012 Notes, an Event of Default shall also include the following:

(i) default in the payment of any interest upon any 2012 Note when it becomes due and
payable, and continuance of such default for 30 days;

(ii) default in the Issuer’s obligation to redeem the 2012 Notes after exercising its
redemption option pursuant to this Eighteenth Supplemental Indenture; and

(iii) default in the Issuer’s obligation to purchase 2012 Notes upon the occurrence of a
Change in Control in accordance with the terms of Article III hereof.

ARTICLE VI

GLOBAL NOTES

The 2012 Notes will be issued initially in the form of Global Notes. “Global Note” means a
registered 2012 Note evidencing one or more 2012 Notes issued to a depositary (the “Depositary”) or
its nominee, in accordance with this Article VI and bearing the legend prescribed in this Article
VI. One or more Global Notes will represent all 2012 Notes. The Issuer shall execute and the
Trustee shall, in accordance with this Article VI and the Issuer Order with respect to the 2012
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 2012 Notes to be represented by such Global Note or Global Notes, (ii) shall be
registered in the name of the Depositary for such Global Note or Global 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 the Global 2012 Note is presented by an authorized representative of the Depositary to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued
is registered in the name of a nominee of the Depositary or in such other name as is requested by
an authorized representative of the Depositary (and any payment is made to such nominee of the
Depositary or to such other entity as is requested by an authorized representative of the
Depositary), any transfer, pledge or other use hereof for value or otherwise by or to any Person is
wrongful inasmuch as the registered owner hereof has an interest herein.”

Notwithstanding Section 2.8 of the Original Indenture, unless and until it is exchanged in
whole or in part for 2012 Notes in definitive form, a Global Note representing one or more 2012
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 2012 Notes or a nominee of such
successor Depositary.

If at any time the Depositary for the 2012 Notes is unwilling or unable to continue as
Depositary for the 2012 Notes, the Issuer shall appoint a successor Depositary with respect to the
2012 Notes. If a successor Depositary for the 2012 Notes is not appointed by the Issuer by the
earlier of (i) 90 days from the date the Issuer receives notice to the effect that the Depositary
is unwilling or unable to act, or the Issuer 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 Issuer will execute, and the Trustee, upon receipt of a Issuer Order for the
authentication and delivery of definitive 2012 Notes, will authenticate and deliver 2012 Notes in
definitive form in an aggregate principal amount equal to the principal amount of the Global Note
or Global Notes representing such 2012 Notes in exchange for such Global Note or Global Notes.

The Issuer may at any time and in its sole discretion determine that the 2012 Notes issued in
the form of one or more Global Notes shall no longer be represented by such Global Note or Global
Notes. In such event the Issuer will execute, and the Trustee, upon receipt of an Issuer Order for
the authentication and delivery of definitive 2012 Notes, will authenticate and deliver 2012 Notes
in definitive form in an aggregate principal amount equal to the principal amount of the Global
Note or Global Notes representing such 2012 Notes in exchange for such Global Note or Global Notes.

The Depositary for such 2012 Notes may surrender a Global Note or Global Notes for such 2012
Notes in exchange in whole or in part for 2012 Notes in definitive form on such terms as are
acceptable to the Issuer and such Depositary. Thereupon, the Issuer shall execute, and the Trustee
shall authenticate and deliver, without service charge:

(i) to each Person specified by such Depositary a new 2012 Note or 2012 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 2012 Notes in definitive form delivered to Holders thereof.

In any exchange provided for in this Article VI, the Issuer will execute and the Trustee will
authenticate and deliver 2012 Notes in definitive registered form in authorized denominations.

Upon the exchange of a Global Note for 2012 Notes in definitive form, such Global Note shall
be cancelled by the Trustee. 2012 Notes in definitive form issued in exchange for a Global Note
pursuant to this Article VI 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 2012 Notes to the Persons in whose names such 2012 Notes are so registered.

ARTICLE VII

DEFEASANCE

All of the provisions of Article Ten of the Original Indenture shall be applicable to the 2012
Notes. Upon satisfaction by the Issuer of the requirements of Section 10.1(C) of the Indenture, in
connection with any covenant defeasance (as provided in Section 10.1(C) of the Indenture), the
Issuer shall be released from its obligations under Article Nine of the Original Indenture and
under Article IV of this Eighteenth Supplemental Indenture with respect to the 2012 Notes.

ARTICLE VIII

SUPPLEMENTAL INDENTURES

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

ARTICLE IX

MODIFICATION AND WAIVER

In addition to those matters set forth in Section 8.2 of the Original Indenture (including the
terms and conditions of the 2012 Notes set forth herein), with respect to the 2012 Notes, no
amendment or supplemental indenture to the Indenture shall, without the consent of the Holder of
each 2012 Note affected thereby:

(a) reduce the redemption price or Change in Control Purchase Price of the 2012 Notes; or

(b) change the terms applicable to redemption or purchase of the 2012 Notes in a manner
adverse to the Holder.

In addition, with respect to the 2012 Notes, notwithstanding Section 5.10 of the Original
Indenture, approval of the Holders of each outstanding 2012 Note shall be required to waive any
default by the Issuer in any payment of the redemption price or Change in Control Purchase Price
with respect to any 2012 Notes.

TESTIMONIUM

This Eighteenth 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.

4

IN WITNESS WHEREOF, the parties hereto have caused this Eighteenth 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

_/s/ Thomas J. Webb     

	 	 	 	Thomas J. Webb

Executive Vice President and

Chief Financial Officer

Attest: _/s/ Robert C. Shrosbree     

	 	 	 	Robert C. Shrosbree

J.P. MORGAN TRUST COMPANY, N.A.,

as Trustee

_/s/ Mietka Collins     

Mietka Collins

5

Schedule 4.04(b)(2)

See following page

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRIMARY SECONDARY	FACILITY	MAXIMUM	AMOUNT	ISSUE	EXPIRATION	ADDITIONAL	DIRECT	CONTINGENT
	ENTITY	 	ENTITY	 	DESCRIPTION	 	LENDER (BANK)	 	AMOUNT	 	OUTSTANDING	 	DATE	 	DATE	 	DESCRIPTION	 	BENEFICIARY	 	OBLIGATION	 	OBLIGATION
	CMS Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	$300MM Credit Agmt	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Used to Support	 	 	 	 	 	 	 	 
	CMS Energy	 	 	 	 	 	8/03/04	 	Bank One, NA	 	300,000,000	 	0	 	8/3/2004	 	8/3/2007	 	Letters of Credit	 	 	 	 	 	0	 	-
	 	 	CMS Enterprises	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Enporion)	 	Letter of Credit	 	 	 	 	 	 	 	 	 	1,522,185	 	5/27/2003	 	5/14/2005	 	SLT751227	 	TCF Leasing Inc.	 	 	 	 	 	1,522,185
	 	 	CMS Genco	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Shuweihat)	 	Letter of Credit	 	 	 	 	 	 	 	 	 	2,500,000	 	5/27/2003	 	5/14/2005	 	SLT751237	 	Barclays Bank PLC	 	 	 	 	 	2,500,000
	 	 	CMS Genco	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Shuweihat)	 	Letter of Credit	 	 	 	 	 	 	 	 	 	13,000,000	 	12/28/2004	 	12/31/2005	 	SLT410473	 	Barclays Bank PLC	 	 	 	 	 	13,000,000
	 	 	CMS Energy Resource	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Constellation Power	 	 	 	 	 	 
	 	 	Mgt. Co.	 	Letter of Credit	 	 	 	 	 	 	 	 	 	5,000,000	 	10/17/2001	 	5/14/2005	 	SLT751224	 	Source Inc	 	 	 	 	 	5,000,000
	 	 	CMS Energy Resource	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Midwest Independent	 	 	 	 	 	 
	 	 	Mgt. Co.	 	Letter of Credit	 	 	 	 	 	 	 	 	 	1,000,000	 	5/27/2003	 	5/14/2005	 	SLT75	 	 	 	 	 	 	 	 
	1231 Sys.Operator	 	1,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Midwest Independent	 	 	 	 	 	 
	 	 	CMS ERM Michigan LLC	 	Letter of Credit	 	 	 	 	 	 	 	 	 	1,200,000	 	5/27/2003	 	5/14/2005	 	SLT751232	 	Sys.Operator	 	 	 	 	 	1,200,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Deutsche Bank Trust	 	 	 	 	 	 
	 	 	Jorf Lasfar	 	Letter of Credit	 	 	 	 	 	 	 	 	 	3,000,000	 	6/3/2003	 	5/14/2005	 	SLT751230	Fuel L/C	Co. Americas	 	 	 	3,000,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT751225 Super	 	Deutsche Bank Trust	 	 	 	 	 	 
	 	 	Jorf Lasfar	 	Letter of Credit	 	 	 	 	 	 	 	 	 	39,086,700	 	6/3/2003	 	5/14/2005	 	Resrve L/C	 	Co. Americas	 	 	 	 	 	39,086,700
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT751234 US$	 	Deutsche Bank Trust	 	 	 	 	 	 
	 	 	Jorf Lasfar	 	Letter of Credit	 	 	 	 	 	 	 	 	 	10,700,000	 	6/3/2003	 	5/14/2005	 	Denominated DSR	 	Co. Americas	 	 	 	 	 	10,700,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT751233 EURO	 	Deutsche Bank Trust	 	 	 	 	 	 
	 	 	Jorf Lasfar	 	Letter of Credit	 	 	 	 	 	 	 	 	 	19,616,111	 	6/3/2003	 	5/14/2005	 	Denomt'd DSR	 	Co. Americas	 	 	 	 	 	19,616,111
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Federal Insurance	 	 	 	 	 	 
	 	 	CMS Panhandle	 	Letter of Credit	 	 	 	 	 	 	 	 	 	350,000	 	3/16/2003	 	6/11/2005	 	SLT751229	 	Co.	 	 	 	 	 	350,000
	 	 	Jorf Lasfar Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT751271	Fixed	 	 	 	 	 
	 	 	Co.	 	Letter of Credit	 	 	 	 	 	 	 	 	 	4,800,000	 	6/3/2003	 	5/14/2005	 	 	 	 	 	 	 	 	 	 
	Ops & Maint Resrv	 	Deutsche Bank Trust	 	 	 	 	 	4,800,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jorf Lasfar Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT751270	Major	 	 	 	 	 
	 	 	Co.	 	Letter of Credit	 	 	 	 	 	 	 	 	 	2,500,000	 	6/3/2003	 	5/14/2005	 	Maint. Resrv	 	Deutsche Bank Trust	 	 	 	 	 	2,500,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	SLT331042	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Performance	 	 	 	 	 	 	 	 
	 	 	Grayling	 	Letter of Credit	 	 	 	 	 	 	 	 	 	2,052,397	 	3/11/2003	 	6/9/2005	 	Security	 	Consumers Energy	 	 	 	 	 	2,052,397
	CMS Energy	 	 	 	 	 	Term Loan	 	CMS Methanol Co.	 	14,782,639	 	14,782,639	 	1/28/2002	 	 	 	 	 	 	 	 	 	 	 	 	 	14,782,639	 	 
	CMS Energy	 	 	 	 	 	General Term Notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Series D,E & F	 	 	 	 	 	900,000,000	 	219,840,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	219,840,000	 	 
	 	 	 	 	 	 	Convert. Sub.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Energy	 	 	 	 	 	Debentures	 	 	 	 	 	177,835,000	 	177,835,000	 	6/20/1997	 	7/15/2027	 	Issued for QUIPS	 	 	 	 	 	177,835,000	 	 
	 	 	 	 	 	 	Sr. Unsecured Notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Energy	 	 	 	 	 	@ 7.5%	 	 	 	 	 	480,000,000	 	408,845,000	 	1/25/1999	 	1/15/2009	 	 	 	 	 	 	 	 	 	408,845,000	 	 
	CMS Energy	 	 	 	 	 	Sr. Notes @ 8.9%	 	 	 	 	 	269,000,000	 	260,475,000	 	7/2/2001	 	7/15/2008	 	 	 	 	 	 	 	 	 	260,475,000	 	 
	CMS Energy	 	 	 	 	 	Sr. Notes @ 3	3/8%	 	 	150,000,000	 	150,000,000	 	7/16/2003	 	7/15/2023	 	Put Date 7/15/08	 	 	 	 	 	150,000,000	 	 
	CMS Energy	 	 	 	 	 	Sr. Notes @ 9.875%	 	 	 	 	 	500,000,000	 	467,558,000	 	10/12/2000	 	10/15/2007	 	 	 	 	 	 	 	 	 	467,558,000	 	 
	CMS Energy	 	 	 	 	 	Sr. Notes @ 8.5%	 	 	 	 	 	350,000,000	 	300,375,000	 	3/29/2001	 	4/15/2011	 	 	 	 	 	 	 	 	 	300,375,000	 	 
	CMS Energy	 	Sr. Notes @ 7.75%	 	300,000,000	300,000,000	7/13/2003	8/1/2010	300,000,000	 
	 	 	 	 	 	 	Sr. Unsecured Notes	 	Deutsche, JPMorgan,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Senior Unsecured	 	 	 	 	 	 	 	 
	CMS Energy	 	 	 	 	 	@ 2.875%	 	Wachovia	 	287,500,000	 	287,500,000	 	12/13/2004	 	12/1/2024	 	Convertible Notes	 	 	 	 	 	287,500,000	 	 
	 	 	St. Clair Undergrnd	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Surety Bond to US	 	 	 	 	 	 	 	 
	CMS Energy	 	Storage	 	Indemnity	 	 	 	 	 	54,000	 	54,000	 	 	 	 	 	 	 	 	 	EPA	 	Insurance Company	 	 	 	 	 	54,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Leonard Storage	 	 	 	 	 	 	 	 
	CMS Energy	 	CMS GT & Enterprises	 	Performance Bond	 	 	 	 	 	250,000	 	250,000	 	11/14/2001	 	continuous	 	Project	 	Addison Township	 	 	 	 	 	250,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7/1/99 Natural Gas	 	 	 	 	 	 	 	 
	CMS Energy	 	CMS ERM	 	Guaranty	 	 	 	 	 	1,000,000	 	1,000,000	 	11/1/2000	 	 	 	 	 	Agreement	 	MCV	 	 	 	 	 	1,000,000
	 	 	 	 	 	 	 	 	 	 	ABN Amro, Deutsche	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Jorf Lasfar Fuel	 	JLEC,ABN	 	 	 	 	 	 
	CMS Energy	 	CMS Generation	 	Guaranty	 	Bk Trust Amer.	 	5,504,000	 	5,504,000	 	9/4/1997	 	1/1/2013	 	Termination	 	Amro,Deutsche	 	 	 	 	 	5,504,000
	 	 	 	 	 	 	 	 	 	 	ABN Amro, Deutsche	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Jorf Lasfar Change	 	JLEC,ABN	 	 	 	 	 	 
	CMS Energy	 	CMS Generation	 	Guaranty	 	Bk Trust Amer.	 	19,228,500	 	19,228,500	 	9/4/1997	 	2/15/2013	 	in Law Contribt'n	 	Amro,Deutsche	 	 	 	 	 	19,228,500
	 	 	Genesee Power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Svc Fee Support	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Energy	 	Station	 	Guaranty	 	US Bank	 	3,000,000	 	3,000,000	 	3/1/1994	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2021 Agrmt- 1994 Bonds	US Bank (Trustee)	3,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Performance
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Energy
	 	CECo                            
	 	Guaranty                        
	 	 	 	 	 	 	15,000,000	 	 	 	15,000,000	 	 	 	3/1/2004	 	 	 	 	 	 	Guaranty                        
	 	Noble Energy Mktg               
	 	 	 	 	 	 	15,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Abu Dhabi Water &
	 	 	 	 	 	 	 	 
	 
	 	Emirate CMS Power               
	 	 	 	 	 	HSBC Bank Middle                
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Backs up 40% of                 
	 	Electricity
	 	 	 	 	 	 	 	 
	CMS Energy
	 	Co.                             
	 	Guaranty                        
	 	East Ltd.                       
	 	 	12,000,000	 	 	 	12,000,000	 	 	 	12/14/2004	 	 	 	 	 	 	DSRA LC                         
	 	Authority                       
	 	 	 	 	 	 	12,000,000	 
	CMS ENTERPRISES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS ERM                         
	 	Guaranty                        
	 	 	 	 	 	 	10,000,000	 	 	 	10,000,000	 	 	 	 	 	 	 	 	 	 	Sempra Energy                   
	 	Gas Transactions                
	 	 	 	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Perf. based Surety
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	bond to Tennergy                
	 	St. Paul Insurance
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS ERM                         
	 	Indemnity                       
	 	 	 	 	 	 	138,757,902	 	 	 	138,757,902	 	 	 	4/28/1999	 	 	 	6/1/2009	 	 	Corp.                           
	 	Co.                             
	 	 	 	 	 	 	138,757,902	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Perf. based Surety
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	bond to OH Schools              
	 	St. Paul Insurance
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS ERM                         
	 	Indemnity                       
	 	 	 	 	 	 	70,623,956	 	 	 	70,623,956	 	 	 	12/14/1999	 	 	 	11/25/2011	 	 	Council                         
	 	Co.                             
	 	 	 	 	 	 	70,623,956	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Perf. base surety               
	 	St. Paul Insurance
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS ERM                         
	 	Indemnity                       
	 	 	 	 	 	 	23,177,215	 	 	 	23,177,215	 	 	 	11/15/2000	 	 	 	2/25/2011	 	 	bond to CCAC                    
	 	Co.                             
	 	 	 	 	 	 	23,177,215	 
	CMS Enterprises
	 	CMS ERM MI LLC                  
	 	Guaranty                        
	 	 	 	 	 	 	10,000,000	 	 	 	10,000,000	 	 	 	8/22/2000	 	 	 	 	 	 	 	 	 	 	Detroit Edison                  
	 	 	 	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Surety Bonds to
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Viron                       
	 	Indemnity                       
	 	 	 	 	 	 	7,847,849	 	 	 	7,847,849	 	 	 	 	 	 	 	 	 	 	outside parties                 
	 	Insurance Companies             
	 	 	 	 	 	 	7,847,849	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Surety Bonds to
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Oil and Gas Co.             
	 	Indemnity                       
	 	 	 	 	 	 	75,000	 	 	 	75,000	 	 	 	 	 	 	 	 	 	 	outside parties                 
	 	Insurance Companies             
	 	 	 	 	 	 	75,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Appeal bonds to
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	Terra Energy Ltd.               
	 	Indemnity                       
	 	 	 	 	 	 	9,649,954	 	 	 	9,649,954	 	 	 	 	 	 	 	 	 	 	Michigan Court                  
	 	Insurance companies             
	 	 	 	 	 	 	9,649,954	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Opus Corporation
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Viron                       
	 	Guaranty                        
	 	 	 	 	 	 	455,259	 	 	 	455,259	 	 	 	4/1/2001	 	 	 	 	 	 	 	 	 	 	(Lease)                         
	 	 	 	 	 	 	455,259	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	CTM's Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CTM                             
	 	Guaranty                        
	 	 	 	 	 	 	3,780,000	 	 	 	3,780,000	 	 	 	6/25/1996	 	 	 	12/31/2006	 	 	Agmt.                           
	 	Siemens                         
	 	 	 	 	 	 	3,780,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	La Plata gas                    
	 	Transportadora de
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Ensenada S.A.               
	 	Guaranty                        
	 	 	 	 	 	 	135,000	 	 	 	135,000	 	 	 	5/5/1997	 	 	 	 	 	 	transportation                  
	 	Gas Del Sur S.A.                
	 	 	 	 	 	 	135,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Project Support &
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Ensenada S.A.               
	 	Guaranty                        
	 	 	 	 	 	 	7,547,519	 	 	 	7,547,519	 	 	 	5/7/1997	 	 	 	5/7/2009	 	 	Guaranty Agmt.                  
	 	OPIC                            
	 	 	 	 	 	 	7,547,519	 
	CMS Enterprises
	 	Jegrupadu O&M                   
	 	Guaranty                        
	 	 	 	 	 	 	750,000	 	 	 	750,000	 	 	 	12/23/1996	 	 	 	 	 	 	O&M Agreement	 	GVK Industries Ltd              
	 	 	 	 	 	 	750,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Jorf Lasfar
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Operations &
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	CMS Morocco Op Co               
	 	Guaranty                        
	 	 	 	 	 	 	45,000,000	 	 	 	45,000,000	 	 	 	9/4/1997	 	 	 	9/12/2027	 	 	Maintenance                     
	 	JLEC                            
	 	 	 	 	 	 	45,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Settlement Agmt:
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	DIG                             
	 	Guaranty                        
	 	 	 	 	 	 	650,000	 	 	 	650,000	 	 	 	4/1/2002	 	 	 	 	 	 	Interconnection                 
	 	Detroit Edison                  
	 	 	 	 	 	 	650,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Perf. of Nopel/Gas
	 	 	 	 	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	Atacama                         
	 	Guaranty                        
	 	 	 	 	 	 	6,000,000	 	 	 	6,000,000	 	 	 	3/13/2000	 	 	 	 	 	 	supply Agmt                     
	 	YPF                             
	 	 	 	 	 	 	6,000,000	 
	CMS Enterprises
	 	CMS ERM                         
	 	Guaranty                        
	 	 	 	 	 	 	5,000,000	 	 	 	5,000,000	 	 	 	10/2/2003	 	 	 	 	 	 	Gas Transactions                
	 	Refco, LLC                      
	 	 	 	 	 	 	5,000,000	 
	CMS Enterprises
	 	CMS ERM                         
	 	Guaranty                        
	 	 	 	 	 	 	3,000,000	 	 	 	3,000,000	 	 	 	2/1/2004	 	 	 	 	 	 	Gas Transactions                
	 	WPS Energy Services             
	 	 	 	 	 	 	3,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	PSEG Energy
	 	 	 	 	 	 	 	 
	CMS Enterprises
	 	Exeter Energy                   
	 	Guaranty                        
	 	 	 	 	 	 	750,000	 	 	 	750,000	 	 	 	6/15/2004	 	 	 	12/30/2006	 	 	Gas Transactions                
	 	Resources & Trade               
	 	 	 	 	 	 	750,000	 
	CMS Enterprises
	 	EnerBank, USA                   
	 	CD Issuances                    
	 	 	 	 	 	 	41,114,000	 	 	 	41,114,000	 	 	 	 	 	 	 	 	 	 	CD Issuance                     
	 	 	 	 	 	 	41,114,000	 	 	 	 	 

6

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