Document:

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                                                                   EXHIBIT 10(b)

         CMS ENERGY CORPORATION POLICY ON CHANGE IN CONTROL AGREEMENTS
                            AND EMPLOYMENT CONTRACTS

As of November 2003, pursuant to past practice, CMS Energy Corporation has in
place various forms of change in control agreements and/or employment contracts
with 29 current officers of CMS Energy Corporation ("CMS") and its subsidiaries.
In the case of recent hires or promotions, these are unwritten commitments
resulting from past practice. This entire situation has been subject to review
and recommendations by the Organization and Compensation Committee of the Board
of Directors (Committee). Effective January 29, 2004, the policy with respect to
these matters will be as follows:

A.       Tier I - - Existing Senior Officers

The 15 existing senior officers shall be offered for execution the form of the
Executive Severance Agreement for Senior Officers (the "Tier I Agreement") that
was recommended by the Committee and approved by the Board on January 29, 2004.
The Tier I Agreement provides for change-in-control severance benefits when
there is a change in control of CMS and general severance benefits outside of
such a change in control. To encourage senior officers with existing agreements
that are in writing to exchange their existing agreements for the Tier I
Agreement, the initial term of the Tier I Agreement is set at three years and an
alternative paragraph would be added to provide the officer with the right to
extend the term.

B.       Tier II - - Existing Junior Officers

The 14 existing junior officers shall be offered for execution the form of
Officer Severance Agreement (the "Tier II Agreement") that was recommended by
the Committee and approved by the Board on January 29, 2004. The Tier II
Agreement provides for change-in-control severance benefits when there is a
change in control of CMS and general severance benefits outside of such a change
in control, but at reduced levels as compared to senior officers. Like the Tier
I Agreement, the Tier II Agreement is terminable after three years. As is the
case with senior officers, the same alternative paragraph on the term is
available for the Tier II Agreement for junior officers with existing agreements
that are in writing.

C.       Tier III - - New Officers

In the future, a more limited number of new officers, namely those occupying the
positions of chief executive officer, chief operating officer, chief financial
officer and president of CMS Energy Corporation and president of Consumers
Energy Company or alternatively, the president of the electric SBU and the
president of the gas SBU of Consumers Energy Company, (whether hired from
outside or promoted from within) shall be eligible for, and be offered for
execution, the form of Change-in-Control Agreement (the "Tier III Agreement")
that was recommended by the Committee and approved by the Board on January 29,
2004 and which provides change-in-control severance benefits when there is a
change in control of CMS. The Tier III Agreement is for a two-year term with
renewal options. New officers (whether hired from outside or promoted from
within) in positions other than those identified above in this policy shall not
be offered the Tier III Agreement unless the Committee has first approved the
necessity or advisability of such an offer. In addition, the CIC excludes the
provision of any general severance benefits for situations not involving a
change in control. Those benefits, if they are provided at all and if they are
to be different to those generally available to the employee population as a
whole, would only be provided in a separate contract with the new officer that
had been approved by the Committee prior to its execution.

D.       Exclusive Policy

The Board authorizes no other policy with respect to the provision of
change-in-control severance benefits and provision of general severance benefits
to officers of CMS Energy Corporation and its subsidiaries.

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<TABLE>
<CAPTION>

        EXECUTIVE OFFICER             FORM OF SEVERANCE AGREEMENT
<S>                                   <C>
        Ken Whipple                   Tier III

        Glenn P. Barba                Tier II

        John F. Drake                 Tier I

        Thomas W. Elward              Tier I

        Carl L. English               Tier I
        (through 7/31/04)

        David W. Joos                 Tier I

        David G. Mengebier            Tier I

        John G. Russell               Tier I

        S. Kinnie Smith, Jr.          Tier I

        Thomas J. Webb                Tier I

</TABLE>

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                          EXECUTIVE SEVERANCE AGREEMENT
                               FOR SENIOR OFFICERS

                                                                          TIER I

<PAGE>

<TABLE>

CONTENTS

---------------------------------------------------------------------------
<S>               <C>                                                   <C>
Article 1.        Establishment, Term, and Purpose                       1

Article 2.        Definitions                                            2

Article 3.        Severance Benefits                                     7

Article 4.        Other Terminations                                    12

Article 5.        Noncompetition and Confidentiality                    13

Article 6.        Excise Tax Equalization Payment                       15

Article 7.        Dispute Resolution and Notice                         16

Article 8.        Successors and Assignment                             16

Article 9.        Miscellaneous                                         17
</TABLE>

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                          EXECUTIVE SEVERANCE AGREEMENT

      THIS EXECUTIVE SEVERANCE AGREEMENT ("Agreement") is made, entered into,
and is effective as of ______ , 2004 (hereinafter referred to as the "Effective
Date"), by and between,________________ , a Michigan corporation, (hereinafter
referred to as the "Employer") and ___________________________ (hereinafter
referred to as the "Executive").

      WHEREAS, the Board of Directors of CMS Energy Corporation has approved
entering into severance agreements with certain key executives as being
necessary and advisable for the success of CMS Energy Corporation;

      WHEREAS, the Executive is currently employed at __________________, by the
Employer in a key management position as _______________________________;

      WHEREAS, the Board of Directors of CMS Energy Corporation wants to provide
the Executive with a measure of financial security in the event of certain
terminations of employment; and

      WHEREAS, both the Employer and the Executive are desirous that any
proposal involving Change in Control as defined in this Agreement will be
considered by the Executive objectively and with reference only to the business
interests of CMS Energy Corporation and its shareholders.

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intended to be legally bound, agree as
follows:

ARTICLE 1.        ESTABLISHMENT, TERM, AND PURPOSE

      This Agreement will commence on the Effective Date and shall continue in
effect for three (3) full years through March _____, 2007. However, at the end
of such three (3) year period and, if extended, at the end of each additional
year thereafter, the term of this Agreement shall be extended automatically for
one (1) additional year, unless the Executive delivers written notice six (6)
months prior to the end of such term, or extended term, to the Committee,
stating that the Agreement will not be extended by Executive. In such case, the
Agreement will terminate at the end of the term, or extended term, then in
progress. However, in the event of a Change in Control (as defined in Section
2.7 herein) of CMS Energy Corporation, the term of this Agreement shall
automatically be extended for two (2) years from the date of the Change in
Control if the current term of the Agreement has less than two (2) full years
remaining until its expiration. If the term of this Agreement is not extended,
the Employer is not obligated to pay any severance benefits under Section 3.2
for a Change in Control that happens after the expiration of the term and is not
obligated to pay any severance benefits under Section 3.3 with respect to any
other termination that happens after the expiration of the term.

ARTICLE 2.        DEFINITIONS

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      Whenever used in this Agreement, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter
of the word is capitalized.

      2.1     "AFFILIATE" shall have the meaning set forth in Rule 12B-2
              promulgated under Section 12 of the Exchange Act.

      2.2     "BASE SALARY" means the greater of the Executive's full annual
              rate of salary, whether or not any portion thereof is paid on a
              deferred basis, at: (i) the Effective Date of Termination, or (ii)
              at the date of the Change in Control. It does not include any
              incentive compensation in any form, bonuses of any type or any
              other form of monetary or nonmonetary compensation other than
              salary.

      2.3     "BENEFICIAL OWNER" shall have the meaning ascribed to such term in
              Rule 13d-3 of the General Rules and Regulations under the Exchange
              Act.

      2.4     "BENEFICIARY" means the persons or entities designated or deemed
              designated by the Executive pursuant to Section 9.5 herein.

      2.5     "BOARD" means the Board of Directors of CMS Energy Corporation.

      2.6     "CAUSE" shall be determined solely by the Committee in the
              exercise of good faith and reasonable judgment, and shall mean the
              occurrence of any one or more of the following:

              (a)     The willful and continued failure by the Executive to
                      substantially perform his or her duties of employment
                      (other than any such failure resulting from the
                      Executive's Disability), after a written demand for
                      substantial performance is delivered to the Executive that
                      specifically identifies the manner in which the Committee
                      believes that the Executive has not substantially
                      performed his or her duties, and the Executive has failed
                      to remedy the situation within a reasonable period of time
                      specified by the Committee which shall not be less than 30
                      days; or

              (b)     The Executive's arrest for committing an act of fraud,
                      embezzlement, theft, or other act constituting a felony
                      involving moral turpitude; or

              (c)     The willful engaging by the Executive in misconduct
                      materially and demonstrably injurious to CMS Energy
                      Corporation or its Affiliates, monetarily or otherwise.

              However, for purposes of clauses (a) and (c), no act or failure to
              act on the Executive's part shall be considered "willful" unless
              done, or omitted to be done, by the Executive not in good faith
              and without reasonable belief that his or her action or omission
              was in the best interest of CMS Energy Corporation or its
              Affiliates.

      2.7     "CHANGE IN CONTROL" means a change in control of CMS Energy
              Corporation, and shall be deemed to have occurred upon the first
              to occur of any of the following events:

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              (a)     Any Person is or becomes the Beneficial Owner, directly or
                      indirectly, of securities of CMS Energy Corporation (not
                      including in the securities beneficially owned by such
                      Person any securities acquired directly from CMS Energy
                      Corporation or its Affiliates) representing twenty-five
                      percent (25%) or more of the combined voting power of CMS
                      Energy Corporation's then outstanding securities,
                      excluding any Person who becomes such a Beneficial Owner
                      in connection with a transaction described in clause (i)
                      of paragraph (c) below; or

              (b)     The following individuals cease for any reason to
                      constitute a majority of directors then serving:
                      individuals who, on the Effective Date, constitute the
                      Board and any new director (other than a director whose
                      initial assumption of office is in connection with an
                      actual or threatened election contest, including but not
                      limited to a consent solicitation, relating to the
                      election of directors of CMS Energy Corporation) whose
                      appointment or election by the Board or nomination for
                      election by CMS Energy Corporation's stockholders was
                      approved or recommended by a vote of at least two-thirds
                      (2/3) of the directors then still in office who either
                      were directors on the Effective Date or whose appointment,
                      election or nomination for election was previously so
                      approved or recommended; or

              (c)     The consummation of a merger or consolidation of CMS
                      Energy Corporation or any direct or indirect subsidiary of
                      CMS Energy Corporation with any other corporation or other
                      entity, other than: (i) any such merger or consolidation
                      which involves either CMS Energy Corporation or any such
                      subsidiary and would result in the voting securities of
                      CMS Energy Corporation outstanding immediately prior
                      thereto continuing to represent (either by remaining
                      outstanding or by being converted into voting securities
                      of the surviving entity or any parent thereof), in
                      combination with the ownership of any trustee or other
                      fiduciary holding securities under an employee benefit
                      plan of CMS Energy Corporation or its Affiliates, at least
                      sixty percent (60%) of the combined voting power of the
                      voting securities of CMS Energy Corporation or the
                      surviving entity or any parent thereof outstanding
                      immediately after such merger or consolidation and
                      immediately following which the individuals who comprise
                      the Board immediately prior thereto constitute at least a
                      majority of the board of directors of CMS Energy
                      Corporation, the entity surviving such merger or
                      consolidation or, if CMS Energy Corporation or the entity
                      surviving such merger is then a subsidiary, the ultimate
                      parent thereof; or (ii) a merger or consolidation effected
                      to implement a recapitalization of CMS Energy Corporation
                      (or similar transaction) in which no Person is or becomes
                      the Beneficial Owner, directly or indirectly, of
                      securities of CMS Energy Corporation (not including in the
                      securities beneficially owned by such Person any
                      securities acquired directly from CMS Energy Corporation
                      or its Affiliates) representing twenty-five percent (25%)
                      or more of the combined voting power of CMS Energy
                      Corporation's then outstanding securities; or

              (d)     Either (1) the stockholders of CMS Energy Corporation
                      approve a plan of complete liquidation or dissolution of
                      CMS Energy Corporation, or (2) there is consummated an
                      agreement for the sale, transfer or disposition by CMS
                      Energy Corporation of all or substantially all of CMS
                      Energy Corporation's assets (or any transaction having a
                      similar effect). For purposes of clause (d)(2), (i) the
                      sale, transfer or disposition

<PAGE>

                      of a majority of the shares of common stock of Consumers
                      Energy Company shall constitute a sale, transfer or
                      disposition of substantially all of the assets of CMS
                      Energy Corporation and (ii) the sale, transfer or
                      disposition of subsidiaries or affiliates of CMS Energy
                      Corporation, singly or in combinations, or their assets,
                      only qualifies as a Change in Control if it satisfies the
                      substantiality test contained in that clause and the Board
                      of CMS Energy Corporation's determination in that regard
                      is final. In addition, for purposes of clause (d)(2), the
                      sale, transfer or disposition of assets has to be in a
                      transaction or series of transactions closing within six
                      months after the closing of the first transaction in the
                      series, other than with an entity in which at least 60% of
                      the combined voting power of the voting securities is
                      owned by stockholders of CMS Energy Corporation in
                      substantially the same proportions as their ownership of
                      CMS Energy Corporation immediately prior to such
                      transaction or transactions and immediately following
                      which the individuals who comprise the Board immediately
                      prior thereto constitute at least a majority of the board
                      of directors of the entity to which such assets are sold,
                      transferred or disposed or, if such entity is a
                      subsidiary, the ultimate parent thereof.

              Notwithstanding the foregoing clauses (a), (c) and (d), a "Change
              in Control" shall not be deemed to have occurred by virtue of the
              consummation of any transaction or series of integrated
              transactions closing within six months after the closing of the
              first transaction in the series immediately following which the
              record holders of the common stock of CMS Energy Corporation
              immediately prior to such transaction or series of transactions
              continue to have substantially the same proportionate ownership in
              an entity which owns all or substantially all of the assets of CMS
              Energy Corporation immediately following such transaction or
              series of transactions.

        2.8   "CODE" means the United States Internal Revenue Code of 1986, as
              amended, and any successors thereto.

        2.9   "COMMITTEE" means the Organization and Compensation Committee of
              the Board of CMS Energy Corporation or any other committee
              appointed by the Board of CMS Energy Corporation to perform the
              functions of the Organization and Compensation Committee.

        2.10  "DISABILITY" means for all purposes of this Agreement, the
              incapacity of the Executive, due to injury, illness, disease, or
              bodily or mental infirmity, which causes the Executive not to
              engage in the performance of a substantial or material portion of
              the Executive's usual duties of employment associated with such
              Executive's position. Such Disability shall be determined based
              on competent medical advice.

<PAGE>

        2.11   "EFFECTIVE DATE" means the date of this Agreement as specified in
               the opening sentence of this Agreement.

        2.12   "EFFECTIVE DATE OF TERMINATION" means the date on which a
               Qualifying Termination occurs, as provided under Section 2.17
               hereunder, which triggers the payment of Severance Benefits
               hereunder.

        2.13   "EXCHANGE ACT" means the United States Securities Exchange Act of
               1934, as amended.

        2.14   "GOOD REASON" exists only on the date of a Change in Control or
               during the twenty-four (24) months which follow a Change in
               Control and shall mean, without the Executive's express written
               consent, the occurrence of any one or more of the following:

               (a)   The assignment to the Executive of duties materially
                     inconsistent with the Executive's position (including
                     status, offices, titles, and reporting requirements),
                     authority, or responsibilities as in effect on the
                     Effective Date, or any action by the Employer which results
                     in a diminution of the Executive's position, authority,
                     duties, or responsibilities as constituted as of the
                     Effective Date (excluding an isolated, insubstantial, and
                     inadvertent action which is remedied by the Employer
                     promptly after receipt of notice thereof given by the
                     Executive); or

               (b)   Reducing the Executive's Base Salary; or

               (c)   Reducing the Executive's targeted annual incentive
                     opportunity; or

               (d)   Failing to maintain the Executive's participation in a
                     long-term incentive plan in a manner that is consistent
                     with the Executive's position, authority, or
                     responsibilities; or

               (e)   Failing to maintain the Executive's amount of benefits
                     under, or relative level of participation in, employee
                     benefit or retirement plans, policies, practices, or
                     arrangements of a material nature available to employees of
                     CMS Energy Corporation and its Affiliates and in which the
                     Executive participates as of the Effective Date; or

               (f)   A material breach of this Agreement by the Employer which
                     is not remedied by the Employer within ten (10) business
                     days of receipt of written notice of such breach delivered
                     by the Executive to the Committee; or

               (g)   Any successor company fails or refuses to assume the
                     obligations owed to Executive under this Agreement in their
                     entirety, as required by Section 8.1 hereunder; or

               (h)   The Executive is required to be based at a location in
                     excess of thirty-five (35) miles from the location of the
                     Executive's principal job location or office immediately
                     prior to a Change in Control except for required travel on
                     the Employer's or CMS Energy Corporation's business to an
                     extent substantially consistent with the

<PAGE>

                     Executive's prior business travel obligations; or

               (i)   The Executive ceases being an executive officer of a
                     company (other than by reason of death, Disability or
                     Cause) whose common stock is publicly owned if immediately
                     prior to the Change in Control the Executive was an
                     executive officer of a company whose common stock was
                     publicly owned.

               For purposes of applying clauses (a) through (i) of this
               Agreement, the Executive's Retirement shall not constitute a
               waiver of the Executive's rights with respect to any circumstance
               constituting Good Reason, and the Executive's continued
               employment shall not constitute a waiver of the Executive's
               rights with respect to any circumstance constituting Good Reason
               or constitute Executive's consent to the circumstances
               constituting Good Reason unless Executive has provided express
               written consent to the circumstance that would otherwise
               constitute Good Reason under this Agreement. Finally, for
               purposes of implementing this Agreement, any claim by Executive
               that Good Reason exists shall be presumed to be correct unless
               the Committee determines by clear and convincing evidence that
               Good Reason does not exist, which evidence shall be presented by
               the person disputing the claim that Good Reason exists.

       2.15    "NOTICE OF TERMINATION" shall be provided for a Qualifying
               Termination and shall mean a written notice which shall indicate
               the specific termination provision in this Agreement relied upon,
               and shall set forth in reasonable detail the facts and
               circumstances claimed to provide a basis for termination of the
               Executive's employment under the provision so indicated. The
               notice shall provide a specific date on which a Qualifying
               Termination has occurred and is effective for purposes of this
               Agreement.

       2.16    "PERSON" shall have the meaning ascribed to such term in Section
               3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
               thereof, including a "group" as provided in Section 13(d).

       2.17    "QUALIFYING TERMINATION" MEANS:

                (a)   An involuntary termination of the Executive's employment
                      by the Employer on the date of a Change in Control or
                      during the twenty-four (24) months which follow a Change
                      in Control for reasons other than death, Disability,
                      Retirement, or Cause pursuant to a Notice of Termination
                      delivered to the Executive by the Employer; or

                (b)   A voluntary termination by the Executive for Good Reason
                      on the date of a Change in Control or during the
                      twenty-four (24) months which follow a Change in Control
                      pursuant to a Notice of Termination delivered to the
                      Employer by the Executive.

<PAGE>

                (c)   A termination (not involving death, Disability,
                      Retirement or Cause), which takes place before the date of
                      a Change in Control or after the first twenty-four (24)
                      months immediately following a Change in Control, pursuant
                      to a Notice of Termination delivered to Executive or
                      pursuant to a request that Executive submit a resignation
                      as an officer. A termination for failure of the Executive
                      to comply in material respects with CMS Energy's Code of
                      Conduct and Statement of Ethics Handbook (June 2003
                      edition) or other corporate policies, as the handbook and
                      those documents may be amended from time to time, does not
                      satisfy the definition of a Qualifying Termination under
                      this clause (c).

        2.18   "RELEASE DATE" occurs after the delivery of the Notice of
               Termination required by Section 2.15 and means the date on which
               the release contained in Exhibit A to this Agreement is first
               provided to Executive for signature.

        2.19   "RETIREMENT" shall have the meanings ascribed under the terms of
               the pension plan applicable to Executive and entitled "Pension
               Plan for Employees of Consumers Energy Company," dated September
               1, 2000, as amended, other than under Section 7 thereof, or
               under the successor or replacement of such pension plan if it is
               then no longer in effect.

        2.20   "SERP" shall mean the retirement plan applicable to Executive and
               entitled "Supplemental Executive Retirement Plan for Employees of
               CMS Energy/Consumers Energy Company," dated May 1, 1998, as
               amended, or under the successor or replacement of such retirement
               plan if it is then no longer in effect.

        2.21   "SEVERANCE BENEFITS" means the payment of Change-in-Control
               Severance Benefits or General Severance Benefits as provided in
               Article 3 herein.

ARTICLE 3.        SEVERANCE BENEFITS

      3.1   RIGHT TO SEVERANCE BENEFITS.

                (a)   CHANGE-IN-CONTROL SEVERANCE BENEFITS. The Executive
                      shall be entitled to receive from the Employer
                      Change-in-Control Severance Benefits, as described in
                      Section 3.2 herein, if a Qualifying Termination of the
                      Executive's employment satisfying the definitions
                      contained in Section 2.17(a) or (b) has occurred on the
                      date of a Change in Control of CMS Energy Corporation or
                      within twenty-four (24) months immediately following a
                      Change in Control of CMS Energy Corporation. Further,
                      Executive's Retirement under the pension plan and SERP
                      shall not constitute a waiver of the Executive's rights
                      with respect to receipt of Change-in-Control Severance
                      Benefits. Nor shall benefits received for Retirement under
                      the pension plan and SERP (or any replacement or successor
                      plans thereto) be used as an offset to the level of
                      Change-in-Control Severance Benefits owed to Executive.

<PAGE>

                (b)   GENERAL SEVERANCE BENEFITS. The Executive shall be
                      entitled to receive from the Employer General Severance
                      Benefits, as described in Section 3.3 herein, if the
                      Executive's employment is terminated for reasons
                      satisfying the definition contained in Section 2.17(c) and
                      such termination has occurred either before a Change of
                      Control of CMS Energy Corporation or during the period
                      that begins after the expiration of twenty-four (24)
                      months immediately following a Change in Control of CMS
                      Energy Corporation. Further, Executive's Retirement under
                      the pension plan and SERP shall not constitute a waiver of
                      the Executive's rights with respect to receipt of General
                      Severance Benefits. Nor shall benefits received for
                      Retirement under the pension plan and SERP (or any
                      replacement or successor plans thereto) be used as an
                      offset to the level of General Severance Benefits owed to
                      Executive.

                (c)   NO SEVERANCE BENEFITS. Other than in a situation
                      involving a Retirement, the Executive shall not be
                      entitled to receive Severance Benefits if the Executive's
                      employment with the Employer ends for reasons other than a
                      Qualifying Termination.

                (d)   GENERAL RELEASE. As a condition precedent to receiving
                      Severance Benefits under Section 3.3 herein, the Executive
                      shall be obligated to execute and deliver to the Employer
                      on a timely basis duplicate originals of a general release
                      of claims in the form included as Exhibit A hereto.

                (e)   WAIVER AND RELEASE. The Executive's act of accepting
                      payment of Severance Benefits payable under Section 3.2 of
                      this Agreement shall constitute and is deemed an express
                      waiver, release and discharge by Executive of any and all
                      claims for damages or other remedies, regardless of when
                      they arose or when they are discovered, against CMS Energy
                      Corporation and its Affiliates arising out of or in any
                      way connected with Executive's employment relationship
                      with them or the termination of such employment
                      relationship except for claims and rights of Executive
                      preserved under Section 3.2 of this Agreement and
                      applicable rights to indemnification.

                (f)   NO DUPLICATION OF SEVERANCE BENEFITS. If the Executive
                      becomes entitled to Change-in-Control Severance Benefits,
                      the benefits provided for under Section 3.2 hereunder
                      shall be in lieu of all other benefits provided to the
                      Executive under the provisions of this Agreement
                      including, but not limited to, the benefits under Section
                      3.3. Likewise, if the Executive becomes entitled to
                      General Severance Benefits, the benefits provided under
                      Section 3.3 hereunder shall be in lieu of all other
                      benefits provided to the Executive under the provisions of
                      this Agreement including, but not limited to, the benefits
                      under Section 3.2. If the Executive receives either
                      Change-in-Control Severance Benefits under Section 3.2 or
                      General Severance Benefits under Section 3.3, any other
                      severance benefits received by employees not covered by
                      this Agreement to which the Executive is entitled will be
                      subtracted from the Severance Benefits paid pursuant to
                      this Agreement.

<PAGE>

       3.2     DESCRIPTION OF CHANGE-IN-CONTROL SEVERANCE BENEFITS. In the event
               the Executive becomes entitled to receive Change-in-Control
               Severance Benefits, as provided in Section 3.1(a) herein, the
               Employer shall provide the Executive with the following:

               (a)   A lump-sum amount paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination,
                     equal to the sum of the Executive's unpaid Base Salary,
                     accrued vacation pay, unreimbursed business expenses, and
                     unreimbursed allowances owed to the Executive through and
                     including the Effective Date of Termination.

               (b)   A lump-sum amount, paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination, equal
                     to two (2) times the sum of the following: (A) the
                     Executive's Base Salary and (B) the greater of the
                     Executive's: (i) annual target bonus opportunity in the
                     year in which the Qualifying Termination occurs or (ii) the
                     actual annual bonus payment paid or due to be paid the
                     Executive in respect of the year prior to the year in which
                     the Qualifying Termination occurs.

               (c)   A lump-sum amount, paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination, equal
                     to the Executive's then current target bonus opportunity
                     established under the bonus plan in which the Executive is
                     then participating, for the plan year in which the
                     Qualifying Termination occurs, adjusted on a pro rata basis
                     for the number of days that have elapsed to the Effective
                     Date of Termination during the bonus plan year in which the
                     Qualifying Termination occurs.

               (d)   A lump-sum amount, paid within fifteen (15) calendar
                     days following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination,
                     equal to one (1) times the sum of the following: (A) the
                     Executive's Base Salary and (B) the greater of the
                     Executive's: (i) annual target bonus opportunity in the
                     year in which the Qualifying Termination occurs or (ii)
                     the actual annual bonus payment paid or due to be paid the
                     Executive in respect of the year prior to the year in
                     which the Qualifying Termination occurs. Such amount shall
                     be consideration for the Executive entering into the
                     noncompete agreement as described in Section 5(a).

               (e)   Equivalent payment to Executive in a lump sum amount
                     within forty-five (45) calendar days following delivery of
                     the Notice of Termination for continued medical coverage
                     for a period of thirty-six (36) months. Such equivalent
                     payment shall be computed based on the same coverage level
                     as in effect for Executive under the general health care
                     plan available to all employees on the Effective Date of
                     Termination by providing a lump sum payment of the
                     Employer's portion of the monthly COBRA premium in effect
                     on the Effective Date of Termination times thirty-six
                     (36). Nothing herein amends or provides Executive any
                     rights to health care coverage other than as provided in
                     the applicable group health care plan. If the Executive
                     has waived coverage under the applicable group health care
                     plan, no equivalent payment shall be made under this
                     Agreement.

<PAGE>

               (f)   Immediate extension (as allowable by Section 6.10 of
                     Article VI of the plan entitled "CMS Energy Corporation
                     Performance Incentive Stock Plan," dated December 3, 1999,
                     as amended) by one year after the Effective Date of
                     Termination of the period for Executive to exercise any
                     outstanding stock options or stock appreciation rights
                     granted by the Committee to Executive pursuant to said
                     Article VI. Otherwise, the terms of said plan shall govern
                     and be applied.

               (g)   Immediate vesting and distribution to Executive (as
                     allowable by the second sentence of Section 7.2(h) of
                     Article VII of the plan entitled "CMS Energy Corporation
                     Performance Incentive Stock Plan," dated December 3, 1999,
                     as amended) within forty-five (45) days after delivery of
                     the Notice of Termination of all outstanding shares of
                     restricted stock previously awarded to Executive pursuant
                     to said Article VII. For any award of restricted stock to
                     which there are future performance goals attached, the
                     number of shares distributed to Executive shall assume that
                     the goals have been achieved in full and the award fully
                     earned based on target performance without deductions or
                     additions to the number of shares then held by Executive.
                     For any award of restricted stock that is tenure based, the
                     number of shares distributed to Executive shall assume that
                     all requirements with respect to tenure are satisfied by
                     Executive. Otherwise, the terms of said plan shall govern
                     and be applied.

               (h)   For an Executive included in SERP, the Executive's
                     retirement benefits under the SERP will become fully vested
                     as of the Effective Date of Termination and shall not be
                     subject to further vesting requirements or to any
                     forfeiture provisions. In addition, said Executive shall be
                     provided the following: (i) an additional thirty-six (36)
                     months of Preference Service (as defined in SERP) for
                     purposes of the SERP in accordance with Section III(1) of
                     SERP, subject, however, to the total of Preference Service
                     plus Accredited Service being limited to a maximum of
                     thirty-five (35) years under SERP, and (ii) only the
                     amounts paid to Executive pursuant to clauses (a), (b), (c)
                     and (d) of this Section 3.2 shall be considered a
                     "severance payment under an employment agreement" for
                     purposes of computing Final Executive Pay under SERP. Since
                     the Executive is over the age of 55, the provisions of the
                     last complete paragraph of Section V(3) of SERP shall not
                     be operative. The enhanced SERP benefits under this Section
                     3.2(h) shall be in lieu of any Change-in-Control
                     enhancements provided for in the SERP.

               (i)   For purposes of (1) Retirement, (2) SERP and (3) benefits
                     not expressly discussed in clauses (a) through (h) of this
                     Section 3.2, but which are available to the general
                     employee population or available only to officers and
                     implemented with contracts with third parties, the benefit
                     plan descriptions covering all employees and the retirement
                     plan and SERP plan descriptions and contracts with third
                     parties covering officers in place at the time of the
                     Effective Date of Termination control Executive's treatment
                     under those plans and contracts. For any other benefits
                     only available to officers, if those benefits are not
                     expressly discussed in clauses (a) through (h) of this
                     Section 3.2, those benefits are terminated for Executive as
                     of the Effective Date of Termination.

<PAGE>

      3.3      DESCRIPTION OF GENERAL SEVERANCE BENEFITS. In the event the
               Executive becomes entitled to receive General Severance Benefits
               as provided in Section 3.1(b) herein, the Employer shall provide
               the Executive with the following:

               (a)   A lump-sum amount paid within fifteen (15) calendar days
                     following delivery to the Executive of a Notice of
                     Termination with respect to a Qualifying Termination as
                     described in Section 2.17 (c) of this Agreement, equal to
                     the sum of the Executive's unpaid Base Salary, accrued
                     vacation pay, unreimbursed business expenses, and
                     unreimbursed allowances owed to the Executive through and
                     including the Effective Date of Termination.

               (b)   An amount, paid following the Release Date on an
                     installment basis over a period of twelve (12) months on a
                     twice a month schedule in accordance with the normal
                     payroll procedures of the Employer, equal to two (2) times
                     the sum of: (A) the Executive's Base Salary and (B) the
                     greater of the Executive's: (i) annual target bonus
                     opportunity in the year in which the Qualifying Termination
                     occurs or (ii) the actual annual bonus payment paid or due
                     to be paid the Executive in respect of the year prior to
                     the year in which the Qualifying Termination occurs. The
                     first of the twenty-four (24) installment payments called
                     for by this section shall be made within forty-five (45)
                     days following the Release Date.

               (c)   A lump-sum amount, paid within forty-five (45) calendar
                     days following the Release Date, equal to the Executive's
                     then current target bonus opportunity established under the
                     bonus plan in which the Executive is then participating,
                     for the plan year in which the Qualifying Termination
                     occurs, adjusted on a pro rata basis for the number of days
                     that have elapsed to the Effective Date of Termination
                     during the bonus plan year in which the Qualifying
                     Termination occurs.

               (d)   Equivalent payment to Executive in a lump-sum amount within
                     forty-five (45) days following the Release Date for
                     continued medical coverage for a period of twenty-four (24)
                     months. Such equivalent payment shall be computed based on
                     the same coverage level as in effect for Executive under
                     the general health care plan available to all employees on
                     the Effective Date of Termination by providing a lump-sum
                     payment of the Employer's portion of the monthly COBRA
                     premium in effect on the Effective Date of Termination
                     times twenty-four (24). Nothing herein amends or provides
                     Executive any rights to health care coverage other than as
                     provided in the applicable group health care plan. If the
                     Executive has waived coverage under the applicable group
                     health care plan, no equivalent payment shall be made under
                     this Agreement.

               (e)   Outstanding stock options and stock appreciation rights
                     previously granted by the Committee to Executive pursuant
                     to Article VI of the plan entitled "CMS Energy Corporation
                     Performance Incentive Stock Plan," dated December 3, 1999,
                     as amended, shall be treated as a "termination of
                     employment" in accordance with Section 6.10 of Article VI,
                     provided however that Employee will not be eligible to

<PAGE>

                     seek or receive from the Committee any extensions of the
                     period for their exercise. For outstanding shares of
                     restricted stock held by Executive, they shall be forfeited
                     to CMS Energy Corporation in accordance with the provisions
                     of the first sentence of Section 7.2(h) of Article VII of
                     said plan.) For purposes of (1) Retirement, (2) SERP and
                     (3) benefits not expressly discussed in clauses (a) through
                     (d) of this Section 3.3, but which are available to the
                     general employee population or available only to officers
                     and implemented with contracts with third parties, the
                     benefit plan descriptions covering all employees and the
                     retirement plan and SERP plan descriptions and contracts
                     with third parties covering officers in place at the time
                     of the Effective Date of Termination control Executive's
                     treatment under those plans and contracts. For any other
                     benefits only available to officers, if those benefits are
                     not expressly discussed in clauses (a) through (d) of this
                     Section 3.3, those benefits are terminated for Executive as
                     of the Effective Date of Termination.

ARTICLE 4.        OTHER TERMINATIONS

      4.1      TERMINATION FOR DISABILITY. If the Executive's employment is
               terminated with the Employer due to Disability, the Executive's
               benefits shall be determined in accordance with the Employer's
               retirement, insurance, and other applicable plans and programs
               then in effect.

      4.2      TERMINATION FOR RETIREMENT OR DEATH. If the Executive's
               employment with the Employer is terminated by reason of his
               Retirement or death, the Executive's benefits shall be determined
               in accordance with the Employer's retirement and SERP plans,
               survivor's benefits, insurance, and other applicable programs
               then in effect.

      4.3      TERMINATION FOR CAUSE OR BY EMPLOYER OR THE EXECUTIVE FOR OTHER
               THAN GOOD REASON. If the Executive's employment is terminated
               either: (a) by the Employer for Cause as defined in Section 2.6
               of this Agreement; or (b) voluntarily by the Executive for
               reasons other than those specified in Section 2.14 herein, or (c)
               by the Employer for the reasons stated in the last sentence of
               Section 2.17(c) of this Agreement, the Employer shall pay the
               Executive the sum of any unpaid Base Salary, accrued vacation,
               unreimbursed business expenses and unreimbursed allowances owed
               to the Executive through the effective date of termination. The
               terms of the benefit plan descriptions, compensation plan
               descriptions and contracts with third parties covering officers
               shall control the disposition to Executive and timing of all
               other amounts to which the Executive may be entitled, and neither
               the Employer nor CMS Energy Corporation nor any of its Affiliates
               shall have any further obligations to the Executive thereunder as
               a result of the existence of this Agreement. No other severance
               benefits of any type shall be made available to Executive.
               Notwithstanding the above, if the Executive's employment
               terminates pursuant to this Section 4.3, the Executive shall be
               bound by the provisions contained in Article 5(a), 5(b), 5(c),
               5(d), and 5(e) hereof.

      4.4      NOTICE OF TERMINATION. Any termination of the Executive's
               employment in accordance with Section 4.3 of this Agreement shall
               be communicated by Notice of Termination

<PAGE>

               delivered to the other party, which shall include a specific date
               on which the termination has occurred and is effective.

ARTICLE 5.        NONCOMPETITION AND CONFIDENTIALITY

      In the event the Executive becomes entitled to receive Change-in-Control
Severance Benefits as provided in Section 3.2 herein or General Severance
Benefits as provided in Section 3.3 herein, the following shall apply:

               (a)    NONCOMPETITION. During the term of employment and for a
                      period of twelve (12) months after the Effective Date of
                      Termination, the Executive shall not: (i) directly or
                      indirectly act in concert or conspire with any person
                      employed by CMS Energy Corporation or any of its
                      Affiliates in order to engage in or prepare to engage in
                      or to have a financial or other interest in any business
                      which is a Direct Competitor (as defined below); or (ii)
                      serve as an employee, agent, partner, shareholder,
                      director or consultant for, or in any other capacity
                      participate, engage, or have a financial or other interest
                      in any business which is a Direct Competitor (provided,
                      however, that notwithstanding anything to the contrary
                      contained in this Agreement, the Executive may own up to
                      two percent (2%) of the outstanding shares of the capital
                      stock of a company whose securities are registered under
                      Section 12 of the Exchange Act.

                      For purposes of this Agreement, the term "Direct
                      Competitor" shall mean any person or entity engaged in the
                      business of selling electric power or natural gas at
                      retail within the State of Michigan.

                      The Committee also reserves the right to designate, prior
                      to the termination date specified in a Notice of
                      Termination, any Person that it believes, in good faith,
                      is a significant competitive threat to CMS Energy
                      Corporation or its Affiliates.

               (b)    CONFIDENTIALITY. The Employer has advised the Executive
                      and the Executive acknowledges that it is the policy of
                      CMS Energy Corporation and its Affiliates to maintain as
                      secret and confidential all Protected Information (as
                      defined below), and that Protected Information has been
                      and will be developed at substantial cost and effort to
                      CMS Energy Corporation and its Affiliates. The Executive
                      shall not at any time, directly or indirectly, divulge,
                      furnish, or make accessible to any person, firm,
                      corporation, association, or other entity (other than as
                      may be required in the regular course of the Executive's
                      employment), nor use in any manner, either during the term
                      of employment or after termination, for any reason, any
                      Protected Information, or cause any such information of
                      CMS Energy Corporation and its Affiliates to enter the
                      public domain. For purposes of this Agreement, "Protected
                      Information" means trade secrets, confidential and
                      proprietary business information of CMS Energy Corporation
                      and its Affiliates and any other information of CMS Energy
                      Corporation and its Affiliates, including, but not limited
                      to, customer lists (including potential customers),
                      sources of supply, processes, plans, materials, pricing
                      information, internal memoranda, marketing plans, internal
                      policies, and products and services which may be developed
                      from time to time by CMS Energy Corporation and its
                      Affiliates and their agents or

<PAGE>

                      employees, including the Executive; provided, however,
                      that information that is in the public domain (other than
                      as a result of a breach of this Agreement), approved for
                      release by CMS Energy Corporation or its Affiliates or
                      lawfully obtained from third parties who are not bound by
                      a confidentiality agreement with CMS Energy Corporation or
                      its Affiliates, is not Protected Information.
                      Notwithstanding the foregoing, nothing in this subsection
                      is to be construed as prohibiting Executive from freely
                      providing information to a state or federal agency,
                      legislative body or one of its committees or a court with
                      jurisdiction when Executive is requested or required to do
                      so by such entity.

               (c)    NONSOLICITATION. During the term of employment and for a
                      period of twelve (12) months after the Effective Date of
                      Termination, the Executive shall not: (i) employ or retain
                      or solicit for employment or arrange to have any other
                      person, firm, or other entity employ or retain or solicit
                      for employment or otherwise participate in the employment
                      or retention of any person who is an employee or
                      consultant of CMS Energy Corporation or its Affiliates; or
                      (ii) solicit suppliers or customers of CMS Energy
                      Corporation or its Affiliates or induce any such person to
                      terminate their relationship with them.

               (d)    COOPERATION. Executive agrees to fully and unconditionally
                      cooperate with CMS Energy Corporation and its Affiliates
                      and their attorneys in connection with any and all
                      lawsuits, claims, investigations, or similar proceedings
                      that have been or could be asserted at any time arising
                      out of or related in any way to Executive's employment or
                      activities on behalf of CMS Energy Corporation and its
                      Affiliates.

               (e)    NONDISPARAGEMENT. At all times, the Executive agrees not
                      to disparage CMS Energy Corporation or its Affiliates or
                      otherwise make comments harmful to their reputations.
                      While receiving any payments pursuant to this Agreement,
                      Executive further agrees not to testify or act in any
                      capacity as a paid or unpaid expert witness, advisor or
                      consultant on behalf of any person, individual,
                      partnership, firm, corporation or any other person or
                      entity that has or may have any claim, demand, action,
                      suit, cause of action, or judgment against CMS Energy
                      Corporation or its Affiliates, or from agreeing to do so
                      after the payments under this Agreement have ceased.
                      Further, CMS Energy Corporation and its Affiliates agree
                      not to disparage Executive or otherwise make comments
                      harmful to Executive's reputation. Notwithstanding the
                      foregoing, nothing in this Section prohibits Executive or
                      representatives of CMS Energy Corporation or its
                      Affiliates from testifying truthfully under oath in any
                      judicial, administrative or legislative proceedings or in
                      any arbitration, mediation or other similar proceedings.

ARTICLE 6.        EXCISE TAX EQUALIZATION PAYMENT

      6.1      EXCISE TAX EQUALIZATION PAYMENT. In the event that the Executive
               becomes entitled to Severance Benefits or any other payment or
               benefit under this Agreement, or under any

<PAGE>

               other agreement, plan or arrangement for which Executive is
               eligible with (1) the Employer, (2) any Person whose actions
               result in a Change in Control, or (3) CMS Energy Corporation or
               any of its Affiliates (all of such payments and benefits
               collectively referred to as the "Total Payments"), and if all or
               any part of the Total Payments will be subject to the tax (the
               "Excise Tax") imposed by Sections 280G and 4999 of the Code (or
               any similar tax that may hereafter be imposed), the Employer
               shall pay to the Executive in cash an additional amount (the
               "Gross-Up Payment") such that the net amount retained by the
               Executive after deduction of any Excise Tax upon the Total
               Payments and any federal, state, and local income tax, penalties,
               interest, and Excise Tax upon the Gross-Up Payment provided for
               by this Section 6.1 (including FICA and FUTA), shall be equal to
               the Total Payments. Such payment shall be made by the Employer to
               the Executive within forty-five (45) calendar days following the
               Effective Date of Termination.

               For purposes of determining the amount of the Gross-Up Payment,
               the Executive shall be deemed to pay federal income taxes at the
               highest marginal rate of federal income taxation in the calendar
               year in which the Gross-Up Payment is to be made, and state and
               local income taxes at the highest marginal rate of taxation in
               the state and locality of the Executive's residence on the
               Effective Date of Termination, net of the maximum reduction in
               federal income taxes which could be obtained from deduction of
               such state and local taxes.

      6.2      SUBSEQUENT RECALCULATION. In the event the Internal Revenue
               Service adjusts the computation under Section 6.1 herein so that
               the Executive did not receive the greatest net benefit, the
               Employer shall reimburse the Executive for the full amount
               necessary to make the Executive whole, plus interest on the
               reimbursed amount at 120% of the rate provided in section
               1274(b)(2)(B) of the Code. In the event that the Excise Tax is
               finally determined to be less than the amount taken into account
               hereunder in calculating the Gross-Up Payment, the Executive
               shall repay the Employer within thirty (30) business days
               following the time that the amount of such reduction in the
               Excise Tax is finally determined, the portion of the Gross-Up
               Payment attributable to such reduction (plus that portion of the
               Gross-Up Payment attributable to the Excise Tax and federal,
               state and local income and employment taxes imposed on the
               Gross-Up Payment being repaid by the Executive) to the extent
               that such repayment results in a reduction in the Excise Tax and
               a dollar-for-dollar reduction in the Executive's taxable income
               and wages for purposes of federal, state and local income and
               employment taxes, plus interest on the amount of such repayment
               at 120% of the rate provided in section 1274(b)(2)(B) of the
               Code.

ARTICLE 7.        DISPUTE RESOLUTION AND NOTICE

      7.1      DISPUTE RESOLUTION. Any dispute or controversy between the
               parties arising under or in connection with this Agreement shall
               be settled by final and binding arbitration after first being
               submitted in writing to the Committee for attempted resolution.
               If that does not result in mutually agreeable resolution, the
               arbitration proceeding shall be conducted before a single
               arbitrator selected by the parties to be conducted in Jackson,
               Michigan. The arbitration will be conducted in accordance with
               the rules of the American Arbitration Association then in effect
               and be finished within ninety (90) days after the selection of
               the

<PAGE>

               arbitrator. The arbitrator shall not have authority to fashion a
               remedy that includes consequential, exemplary or punitive damages
               of any type whatsoever, and the arbitrator is hereby prohibited
               from awarding injunctive relief of any kind, whether mandatory or
               prohibitory. Judgment may be entered on the award of the
               arbitrators in any court having competent jurisdiction. The
               parties shall share equally the cost of the arbitrator and of
               conducting the arbitration proceeding, but each party shall bear
               the cost of its own legal counsel and experts and other
               out-of-pocket expenditures.

      7.2      NOTICE. Any notices, requests, demands, or other communications
               provided for by this Agreement shall be in writing and sent by
               registered or certified mail to the Executive at the last address
               he or she has filed in writing with the Employer or, in the case
               of the Employer, at One Energy Plaza, Jackson, Michigan 49201,
               Attention: Corporate Secretary. Notices, requests, demands or
               other communications may also be delivered by messenger, courier
               service or other electronic means and are sufficient if actually
               received by the party for whom it is intended.

ARTICLE 8.        SUCCESSORS AND ASSIGNMENT

      8.1      SUCCESSORS. Any successor (whether direct or indirect, by
               purchase, merger, reorganization, consolidation, acquisition of
               property or stock, liquidation, or otherwise) to the business of
               CMS Energy Corporation or purchaser of all or substantially all
               of the assets of CMS Energy Corporation shall be required to
               expressly assume and agree to perform under this Agreement in the
               same manner and to the same extent that the Employer would be
               required to perform if no such succession had taken place.
               Failure to obtain such assumption and agreement prior to the
               effectiveness of any such succession or asset sale shall entitle
               the Executive to the Change-in-Control Severance Benefits
               specified in Section 3.2 of this Agreement. The effective date of
               the succession or the sale shall be deemed the date of delivery
               to Executive of the Notice of Termination for purposes of
               administering Section 3.2. Regardless of whether such agreement
               is executed, this Agreement shall be binding upon any successor
               in accordance with the operation of law.

      8.2      ASSIGNMENT BY THE EXECUTIVE. This Agreement shall inure to the
               benefit of and be enforceable by the Executive's personal or
               legal representatives, executors, administrators, successors,
               heirs, distributees, devisees, and legatees. If the Executive
               dies while any amount would still be payable to him or her
               hereunder had he or she continued to live, all such amounts,
               unless otherwise provided herein, shall be paid in accordance
               with the terms of this Agreement to the Executive's Beneficiary.
               If the Executive has not named a Beneficiary, then such amounts
               shall be paid to the Executive's devisee, legatee, or other
               designee, or if there is no such designee, to the Executive's
               estate.

ARTICLE 9.        MISCELLANEOUS

      9.1      EMPLOYMENT STATUS. The employment of the Executive by the
               Employer is "at will" and

<PAGE>

               may be terminated by either the Executive or the Employer at any
               time, subject to applicable law. Further, Executive has no right
               to be an officer of CMS Energy Corporation or any of its
               Affiliates and serves as an officer entirely at the discretion of
               the Board.

      9.2      ENTIRE AGREEMENT. This Agreement supersedes any prior agreements
               or understandings, oral or written, between the parties hereto,
               with respect to the subject matter hereof, and constitutes the
               entire agreement of the parties with respect thereto. Without
               limiting the generality of the foregoing sentence, this Agreement
               completely supersedes, cancels, voids and renders of no further
               force and effect any and all employment agreements, change in
               control agreements, and other similar agreements, communications,
               representations, promises, covenants and arrangements, whether
               oral or written, between the Employer and Executive and between
               the Executive and CMS Energy Corporation or any of its Affiliates
               that may have taken place or been executed prior to the Effective
               Date of this Agreement and which may address the subject matters
               contained herein, including but not by way of limitation
               Employment Agreement between CMS Energy Corporation and Executive
               dated the 13th day of March, 2000.

      9.3      SEVERABILITY. In the event that any provision or portion of this
               Agreement shall be determined to be invalid or unenforceable for
               any reason, the remaining provisions of this Agreement shall be
               unaffected thereby and shall remain in full force and effect.

      9.4      TAX WITHHOLDING. The Employer may withhold from any benefits
               payable under this Agreement any authorized deductions and all
               federal, state, city, or other taxes as may be required pursuant
               to any law or governmental regulation or ruling.

      9.5      BENEFICIARIES. The Executive may designate one (1) or more
               persons or entities as the primary and/or contingent
               beneficiaries of any amounts to be received under this Agreement.
               Such designation must be in the form of a signed writing on a
               form provided by the Employer. The Executive may make or change
               such designation at any time.

      9.6      PAYMENT OBLIGATION ABSOLUTE. Except as provided in the last
               sentence of this paragraph, the Employer's and CMS Energy
               Corporation's obligations to make the payments and provide the
               benefits to Executive specified herein shall be absolute and
               unconditional, and shall not be affected by any circumstances,
               including, without limitation, any offset, counterclaim,
               recoupment, defense, or other right which the Employer, CMS
               Energy Corporation or any of its Affiliates may have against the
               Executive or anyone else. All amounts payable by the Employer
               hereunder shall be paid without notice or demand. Each and every
               payment made hereunder by the Employer shall be final, but
               subject to the provisions of the next sentence. If the Executive
               should seek to bypass arbitration and litigate about this
               Agreement or the subject matters addressed herein in a state or
               federal court, Executive agrees (i) at least 10 days prior to
               filing in court to tender back to the Employer all cash
               consideration paid to Executive under this Agreement prior
               thereto and (ii) any payments due Executive under this Agreement
               after said tender shall be suspended until said litigation is
               finally resolved.

<PAGE>

               The Executive shall not be obligated to seek other employment in
               mitigation of the amounts payable or arrangements made under any
               provision of this Agreement, and the obtaining of any such other
               employment shall in no event effect any reduction of the
               Employer's obligations to make the payments and arrangements
               required to be made under this Agreement.

      9.7      CONTRACTUAL RIGHTS TO BENEFITS. Subject to approval and
               ratification by the Committee, this Agreement establishes and
               vests in the Executive a contractual right to the benefits to
               which he or she is entitled hereunder. However, nothing herein
               contained shall require or be deemed to require, or prohibit or
               be deemed to prohibit, the Employer to segregate, earmark, or
               otherwise set aside any funds or other assets, in trust or
               otherwise, to provide for any payments to be made or required
               hereunder.

      9.8      MODIFICATION. This Agreement shall not be varied, altered,
               modified, canceled, changed, or in any way amended except by
               mutual agreement of the parties in a written instrument executed
               by the parties hereto or their legal representatives.

      9.9      COUNTERPARTS. This Agreement may be executed in one (1) or more
               counterparts, each of which shall be deemed to be an original,
               but all of which together will constitute one and the same
               Agreement. Signatures transmitted via facsimile shall be regarded
               by the parties as original signatures.

      9.10     APPLICABLE LAW. This Agreement shall be governed and construed in
               accordance with the laws of the State of Michigan, without regard
               to its conflicts of laws principles.

               IN WITNESS WHEREOF, the parties have executed this Agreement as
of this day of ________, 2004.

                                         EXECUTIVE:

By:________________________________      Signature: ____________________________

Its:  _____________________________      Printed Name: _________________________

<PAGE>

                           OFFICER SEVERANCE AGREEMENT

                                                                         TIER II

<PAGE>

<TABLE>

CONTENTS

--------------------------------------------------------------------------
<S>               <C>                                                <C>
Article 1.        Establishment, Term, and Purpose                    1

Article 2.        Definitions                                         2

Article 3.        Severance Benefits                                  7

Article 4.        Other Terminations                                 13

Article 5.        Noncompetition and Confidentiality                 13

Article 6.        Excise Tax Equalization Payment                    15

Article 7.        Dispute Resolution and Notice                      16

Article 8.        Successors and Assignment                          17

Article 9.        Miscellaneous                                      18

</TABLE>

<PAGE>

                           OFFICER SEVERANCE AGREEMENT

      THIS OFFICER SEVERANCE AGREEMENT ("Agreement") is made, entered into, and
is effective as of _____, 2004 (hereinafter referred to as the "Effective
Date"), by and between ________________, a Michigan corporation, (hereinafter
referred to as the "Employer") and ____________________________ (hereinafter
referred to as the "Officer").

      WHEREAS, the Board of Directors of CMS Energy Corporation has approved
entering into severance agreements with certain key officers as being necessary
and advisable for the success of CMS Energy Corporation;

      WHEREAS, the Officer is currently employed at ____________________, by the
 Employer in a key management position as ___________________________;

      WHEREAS, the Board of Directors of CMS Energy Corporation wants to provide
the Officer with a measure of financial security in the event of certain
terminations of employment; and

      WHEREAS, both the Employer and the Officer are desirous that any proposal
involving Change in Control as defined in this Agreement will be considered by
the Officer objectively and with reference only to the business interests of CMS
Energy Corporation and its shareholders.

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intended to be legally bound, agree as
follows:

ARTICLE 1.        ESTABLISHMENT, TERM, AND PURPOSE

      This Agreement will commence on the Effective Date and shall continue in
effect for two (2) full years through March ____, 2006. However, at the end of
such two (2) year period and, if extended, at the end of each additional year
thereafter, the term of this Agreement shall be extended automatically for one
(1) additional year, unless the Committee delivers written notice six (6) months
prior to the end of such term, or extended term, to the Officer, stating that
the Agreement will not be extended. In such case, the Agreement will terminate
at the end of the term, or extended term, then in progress. However, in the
event of a Change in Control (as defined in Section 2.7 herein) of CMS Energy
Corporation, the term of this Agreement shall automatically be extended for two
(2) years from the date of the Change in Control if the current term of the
Agreement has less than two (2) full years remaining until its expiration. If
the term of this agreement is not extended, the Employer is not obligated to pay
any severance benefits under Section 3.2 for a Change in Control that happens
after the expiration of the term and is not obligated to pay any severance
benefits under Section 3.3 with respect to any other termination that happens
after the expiration of the term.

<PAGE>

ARTICLE 2.        DEFINITIONS

      Whenever used in this Agreement, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter
of the word is capitalized.

      2.1     "AFFILIATE" shall have the meaning set forth in Rule 12B-2
              promulgated under Section 12 of the Exchange Act.

      2.2     "BASE SALARY" means the greater of the Officer's full annual rate
              of salary, whether or not any portion thereof is paid on a
              deferred basis, at: (i) the Effective Date of Termination, or (ii)
              at the date of the Change in Control. It does not include any
              incentive compensation in any form, bonuses of any type or any
              other form of monetary or nonmonetary compensation other than
              salary.

      2.3     "BENEFICIAL OWNER" shall have the meaning ascribed to such term in
              Rule 13d-3 of the General Rules and Regulations under the Exchange
              Act.

      2.4     "BENEFICIARY" means the persons or entities designated or deemed
              designated by the Officer pursuant to Section 9.5 herein.

      2.5     "BOARD" means the Board of Directors of CMS Energy Corporation.

      2.6     "CAUSE" shall be determined solely by the Committee in the
              exercise of good faith and reasonable judgment, and shall mean the
              occurrence of any one or more of the following:

              (a)     The willful and continued failure by the Officer to
                      substantially perform his or her duties of employment
                      (other than any such failure resulting from the Officer's
                      Disability), after a written demand for substantial
                      performance is delivered to the Officer that specifically
                      identifies the manner in which the Committee believes that
                      the Officer has not substantially performed his or her
                      duties, and the Officer has failed to remedy the situation
                      within a reasonable period of time specified by the
                      Committee which shall not be less than 30 days; or

              (b)     The Officer's arrest for committing an act of fraud,
                      embezzlement, theft, or other act constituting a felony
                      involving moral turpitude; or

              (e)     The willful engaging by the Officer in misconduct
                      materially and demonstrably injurious to CMS Energy
                      Corporation or its Affiliates, monetarily or otherwise.

              However, for purposes of clauses (a) and (c), no act or failure to
              act on the Officer's part shall be considered "willful" unless
              done, or omitted to be done, by the Officer not in good faith and
              without reasonable belief that his or her action or omission was
              in the best interest of CMS Energy Corporation or its Affiliates.

      2.7     "CHANGE IN CONTROL" means a change in control of CMS Energy
              Corporation, and shall be deemed to have occurred upon the first
              to occur of any of the following events:

<PAGE>

              (a)     Any Person is or becomes the Beneficial Owner, directly or
                      indirectly, of securities of CMS Energy Corporation (not
                      including in the securities beneficially owned by such
                      Person any securities acquired directly from CMS Energy
                      Corporation or its Affiliates) representing twenty-five
                      percent (25%) or more of the combined voting power of CMS
                      Energy Corporation's then outstanding securities,
                      excluding any Person who becomes such a Beneficial Owner
                      in connection with a transaction described in clause (i)
                      of paragraph (c) below; or

              (b)     The following individuals cease for any reason to
                      constitute a majority of directors then serving:
                      individuals who, on the Effective Date, constitute the
                      Board and any new director (other than a director whose
                      initial assumption of office is in connection with an
                      actual or threatened election contest, including but not
                      limited to a consent solicitation, relating to the
                      election of directors of CMS Energy Corporation) whose
                      appointment or election by the Board or nomination for
                      election by CMS Energy Corporation's stockholders was
                      approved or recommended by a vote of at least two-thirds
                      (2/3) of the directors then still in office who either
                      were directors on the Effective Date or whose appointment,
                      election or nomination for election was previously so
                      approved or recommended; or

              (c)     The consummation of a merger or consolidation of CMS
                      Energy Corporation or any direct or indirect subsidiary of
                      CMS Energy Corporation with any other corporation or other
                      entity, other than: (i) any such merger or consolidation
                      which involves either CMS Energy Corporation or any such
                      subsidiary and would result in the voting securities of
                      CMS Energy Corporation outstanding immediately prior
                      thereto continuing to represent (either by remaining
                      outstanding or by being converted into voting securities
                      of the surviving entity or any parent thereof), in
                      combination with the ownership of any trustee or other
                      fiduciary holding securities under an employee benefit
                      plan of CMS Energy Corporation or its Affiliates, at least
                      sixty percent (60%) of the combined voting power of the
                      voting securities of CMS Energy Corporation or the
                      surviving entity or any parent thereof outstanding
                      immediately after such merger or consolidation and
                      immediately following which the individuals who comprise
                      the Board immediately prior thereto constitute at least a
                      majority of the board of directors of CMS Energy
                      Corporation, the entity surviving such merger or
                      consolidation or, if CMS Energy Corporation or the entity
                      surviving such merger is then a subsidiary, the ultimate
                      parent thereof; or (ii) a merger or consolidation effected
                      to implement a recapitalization of CMS Energy Corporation
                      (or similar transaction) in which no Person is or becomes
                      the Beneficial Owner, directly or indirectly, of
                      securities of CMS Energy Corporation (not including in the
                      securities beneficially owned by such Person any
                      securities acquired directly from CMS Energy Corporation
                      or its Affiliates) representing twenty-five percent (25%)
                      or more of the combined voting power of CMS Energy
                      Corporation's then outstanding securities; or

              (d)     Either (1) the stockholders of CMS Energy Corporation
                      approve a plan of complete liquidation or dissolution of
                      CMS Energy Corporation, or (2) there is consummated an
                      agreement for the sale, transfer or disposition by CMS
                      Energy Corporation of all

<PAGE>

                      or substantially all of CMS Energy Corporation's assets
                      (or any transaction having a similar effect). For purposes
                      of clause (d)(2), (i) the sale, transfer or disposition of
                      a majority of the shares of common stock of Consumers
                      Energy Company shall constitute a sale, transfer or
                      disposition of substantially all of the assets of CMS
                      Energy Corporation and (ii) the sale, transfer or
                      disposition of subsidiaries or affiliates of CMS Energy
                      Corporation, singly or in combinations, or their assets,
                      only qualifies as a Change in Control if it satisfies the
                      substantiality test contained in that clause and the Board
                      of CMS Energy Corporation's determination in that regard
                      is final. In addition, for purposes of clause (d)(2), the
                      sale, transfer or disposition of assets has to be in a
                      transaction or series of transactions closing within six
                      months after the closing of the first transaction in the
                      series, other than with an entity in which at least 60% of
                      the combined voting power of the voting securities is
                      owned by stockholders of CMS Energy Corporation in
                      substantially the same proportions as their ownership of
                      CMS Energy Corporation immediately prior to such
                      transaction or transactions and immediately following
                      which the individuals who comprise the Board immediately
                      prior thereto constitute at least a majority of the board
                      of directors of the entity to which such assets are sold,
                      transferred or disposed or, if such entity is a
                      subsidiary, the ultimate parent thereof.

               Notwithstanding the foregoing clauses (a), (c) and (d), a "Change
               in Control" shall not be deemed to have occurred by virtue of the
               consummation of any transaction or series of integrated
               transactions closing within six months after the closing of the
               first transaction in the series immediately following which the
               record holders of the common stock of CMS Energy Corporation
               immediately prior to such transaction or series of transactions
               continue to have substantially the same proportionate ownership
               in an entity which owns all or substantially all of the assets of
               CMS Energy Corporation immediately following such transaction or
               series of transactions.

        2.8    "CODE" means the United States Internal Revenue Code of 1986, as
               amended, and any successors thereto.

        2.9    "COMMITTEE" means the Organization and Compensation Committee of
               the Board of CMS Energy Corporation or any other committee
               appointed by the Board of CMS Energy Corporation to perform the
               functions of the Organization and Compensation Committee.

        2.10   "DISABILITY" means for all purposes of this Agreement, the
               incapacity of the Officer, due to injury, illness, disease, or
               bodily or mental infirmity, which causes the Officer not to
               engage in the performance of a substantial or material portion of
               the Officer's usual duties of employment associated with such
               Officer's position. Such Disability shall be determined based on
               competent medical advice.

        2.11   "EFFECTIVE DATE" means the date of this Agreement as specified
               in the opening sentence of this Agreement.

        2.12   "EFFECTIVE DATE OF TERMINATION" means the date on which a
               Qualifying Termination occurs, as provided under Section 2.17
               hereunder, which triggers the payment of

<PAGE>

               Severance Benefits hereunder.

        2.13   "EXCHANGE ACT" means the United States Securities Exchange Act
               of 1934, as amended.

        2.14   "GOOD REASON" exists only on the date of a Change in Control or
               during the twenty-four (24) months which follow a Change in
               Control and shall mean, without the Officer's express written
               consent, the occurrence of any one or more of the following:

               (a)   The assignment to the Officer of duties materially
                     inconsistent with the Officer's position (including status,
                     offices, titles, and reporting requirements), authority, or
                     responsibilities as in effect on the Effective, or any
                     action by the Employer which results in a diminution of the
                     Officer's position, authority, duties, or responsibilities
                     as constituted as of the Effective Date (excluding an
                     isolated, insubstantial, and inadvertent action which is
                     remedied by the Employer promptly after receipt of notice
                     thereof given by the Officer); or

               (b)   Reducing the Officer's Base Salary; or

               (c)   Reducing the Officer's targeted annual incentive
                     opportunity; or

               (d)   Failing to maintain the Officer's participation in a
                     long-term incentive plan in a manner that is consistent
                     with the Officer's position, authority, or
                     responsibilities; or

               (e)   Failing to maintain the Officer's amount of benefits under
                     or relative level of participation in employee benefit or
                     retirement plans, policies, practices, or arrangements of a
                     material nature available to employees of CMS Energy
                     Corporation and its Affiliates and in which the Officer
                     participates as of the Effective Date; or

               (f)   A material breach of this Agreement by the Employer which
                     is not remedied by the Employer within ten (10) business
                     days of receipt of written notice of such breach delivered
                     by the Officer to the Committee; or

               (g)   Any successor company fails or refuses to assume the
                     obligations owed to Officer under this Agreement in their
                     entirety, as required by Section 8.1 hereunder; or

               (h)   The Officer is required to be based at a location in excess
                     of thirty-five (35) miles from the location of the
                     Officer's principal job location or office immediately
                     prior to a Change in Control except for required travel on
                     the Employer's or CMS Energy Corporation's business to an
                     extent substantially consistent with the Officer's prior
                     business travel obligations; or

               (i)   The Officer ceases being an officer of a company (other
                     than by reason of death, Disability or Cause) whose common
                     stock is publicly owned if immediately prior to the Change
                     in Control the Officer was an officer of a company whose
                     common stock was publicly owned.

<PAGE>

               For purposes of applying clauses (a) through (i) of this
               Agreement, the Officer's Retirement shall not constitute a waiver
               of the Officer's rights with respect to any circumstance
               constituting Good Reason, and the Officer's continued employment
               shall not constitute a waiver of the Officer's rights with
               respect to any circumstance constituting Good Reason or
               constitute Officer's consent to the circumstances constituting
               Good Reason unless Officer has provided express written consent
               to the circumstance that would otherwise constitute Good Reason
               under this Agreement. Finally, for purposes of implementing this
               Agreement, any claim by Officer that Good Reason exists shall be
               presumed to be correct unless the Committee determines by clear
               and convincing evidence that Good Reason does not exist, which
               evidence shall be presented by the person disputing the claim
               that Good Reason exists.

       2.15    "NOTICE OF TERMINATION" shall be provided for a Qualifying
               Termination and shall mean a written notice which shall indicate
               the specific termination provision in this Agreement relied upon,
               and shall set forth in reasonable detail the facts and
               circumstances claimed to provide a basis for termination of the
               Officer's employment under the provision so indicated. The notice
               shall provide a specific date on which a Qualifying Termination
               has occurred and is effective for purposes of this Agreement.

       2.16    "PERSON" shall have the meaning ascribed to such term in Section
               3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
               thereof, including a "group" as provided in Section 13(d).

       2.17    "QUALIFYING TERMINATION" MEANS:

                (a)   An involuntary termination of the Officer's employment by
                      the Employer on the date of a Change in Control or during
                      the twenty-four (24) months which follow a Change in
                      Control for reasons other than death, Disability,
                      Retirement, or Cause pursuant to a Notice of Termination
                      delivered to the Officer by the Employer; or

                (b)   A voluntary termination by the Officer for Good Reason on
                      the date of a Change in Control or during the twenty-four
                      (24) months which follow a Change in Control pursuant to a
                      Notice of Termination delivered to the Employer by the
                      Officer.

                (c)   A termination (not involving death, Disability,
                      Retirement or Cause), which takes place before the date of
                      a Change in Control or after the first twenty-four (24)
                      months immediately following a Change in Control, pursuant
                      to a Notice of Termination delivered to Officer or
                      pursuant to a request that Officer submit a resignation as
                      an officer. A termination for failure of the Officer to
                      comply in material respects with CMS Energy's Code of
                      Conduct and Statement of Ethics Handbook (June 2003
                      edition) or other corporate policies, as the handbook and
                      those documents may be amended from time to time, does not
                      satisfy the definition of a Qualifying Termination under
                      this clause (c).

       2.18     "RELEASE DATE" occurs after the delivery of the Notice of
                Termination required by Section

<PAGE>

               2.15 and means the date on which the release contained in
               Exhibit A to this Agreement is first provided to Officer
               for signature.

        2.19   "RETIREMENT" shall have the meanings ascribed under the terms of
               the pension plan applicable to Officer and entitled "Pension
               Plan for Employees of Consumers Energy Company," dated September
               1, 2000, as amended, other than under Section 7 thereof, or
               under the successor or replacement of such pension plan if it is
               then no longer in effect.

        2.20   "SERP" shall mean the retirement plan applicable to Officer and
               entitled "Supplemental Executive Retirement Plan for Employees of
               CMS Energy/Consumers Energy Company," dated May 1, 1998, as
               amended, or under the successor or replacement of such retirement
               plan if it is then no longer in effect.

        2.21   "SEVERANCE BENEFITS" means the payment of Change-in-Control
               Severance Benefits or General Severance Benefits as provided in
               Article 3 herein.

ARTICLE 3.        SEVERANCE BENEFITS

      3.1   RIGHT TO SEVERANCE BENEFITS.

              (a)     CHANGE-IN-CONTROL SEVERANCE BENEFITS. The Officer shall be
                      entitled to receive from the Employer Change-in-Control
                      Severance Benefits, as described in Section 3.2 herein, if
                      a Qualifying Termination of the Officer's employment
                      satisfying the definitions contained in Section 2.17(a) or
                      (b) has occurred on the date of a Change in Control of CMS
                      Energy Corporation or within twenty-four (24) months
                      immediately following a Change in Control of CMS Energy
                      Corporation. Further, Officer's Retirement under the
                      pension plan and SERP shall not constitute a waiver of the
                      Officer's rights with respect to receipt of
                      Change-in-Control Severance Benefits. Nor shall benefits
                      received for Retirement under the pension plan and SERP
                      (or any replacement or successor plans thereto) be used as
                      an offset to the level of Change-in-Control Severance
                      Benefits owed to Officer.

              (b)     GENERAL SEVERANCE BENEFITS. The Officer shall be entitled
                      to receive from the Employer General Severance Benefits,
                      as described in Section 3.3 herein, if the Officer's
                      employment is terminated for reasons satisfying the
                      definition contained in Section 2.17(c) and such
                      termination has occurred either before a Change of Control
                      of CMS Energy Corporation or during the period that begins
                      after the expiration of twenty-four (24) months
                      immediately following a Change in Control of CMS Energy
                      Corporation. Further, Officer's Retirement under the
                      pension plan and SERP shall not constitute a waiver of the
                      Officer's rights with respect to receipt of General
                      Severance Benefits. Nor shall benefits received for
                      Retirement under the pension plan and SERP (or any
                      replacement or successor plans thereto) be used as an
                      offset to the level of General Severance Benefits owed to
                      Officer.

<PAGE>

              (c)     NO SEVERANCE BENEFITS. Other than in a situation
                      involving a Retirement, the Officer shall not be entitled
                      to receive Severance Benefits if the Officer's employment
                      with the Employer ends for reasons other than a Qualifying
                      Termination.

              (d)     GENERAL RELEASE. As a condition precedent to receiving
                      Severance Benefits under Section 3.3 herein, the Officer
                      shall be obligated to execute and deliver to the Employer
                      on a timely basis duplicate originals of a general release
                      of claims in the form included as Exhibit A hereto.

              (e)     WAIVER AND RELEASE.  The Officer's act of accepting
                      payment of Severance Benefits payable under Section 3.2 of
                      this Agreement shall constitute and is deemed an express
                      waiver, release and discharge by Officer of any and all
                      claims for damages or other remedies, regardless of when
                      they arose or when they are discovered, against CMS Energy
                      Corporation and its Affiliates arising out of or in any
                      way connected with Officer's employment relationship with
                      them or the termination of such employment relationship
                      except for claims and rights of Officer preserved under
                      Section 3.2 of this Agreement and applicable rights to
                      indemnification.

              (f)     NO DUPLICATION OF SEVERANCE BENEFITS. If the Officer
                      becomes entitled to Change-in-Control Severance Benefits,
                      the benefits provided for under Section 3.2 hereunder
                      shall be in lieu of all other benefits provided to the
                      Officer under the provisions of this Agreement including,
                      but not limited to, the benefits under Section 3.3.
                      Likewise, if the Officer becomes entitled to General
                      Severance Benefits, the benefits provided under Section
                      3.3 hereunder shall be in lieu of all other benefits
                      provided to the Officer under the provisions of this
                      Agreement including, but not limited to, the benefits
                      under Section 3.2. If the Officer receives either
                      Change-in-Control Severance Benefits under Section 3.2 or
                      General Severance Benefits under Section 3.3, any other
                      severance benefits received by employees not covered by
                      this Agreement to which the Officer is entitled will be
                      subtracted from the Severance Benefits paid pursuant to
                      this Agreement.

       3.2    DESCRIPTION OF CHANGE-IN-CONTROL SEVERANCE BENEFITS. In the event
              the Officer becomes entitled to receive Change-in-Control
              Severance Benefits, as provided in Section 3.1(a) herein, the
              Employer shall provide the Officer with the following:

              (a)     A lump-sum amount paid within fifteen (15) calendar days
                      following delivery to the Employer or delivery to the
                      Officer, as applicable, of a Notice of Termination, equal
                      to the sum of the Officer's unpaid Base Salary, accrued
                      vacation pay, unreimbursed business expenses, and
                      unreimbursed allowances owed to the Officer through and
                      including the Effective Date of Termination.

              (b)     A lump-sum amount, paid within fifteen (15) calendar
                      days following delivery to the Employer or delivery to the
                      Officer, as applicable, of a Notice of Termination, equal
                      to one and one half (1.5) times the sum of the following:
                      (A) the Officer's Base Salary and (B) the greater of the
                      Officer's: (i) annual target bonus opportunity in the year
                      in which the Qualifying Termination occurs or (ii) the
                      actual annual bonus

<PAGE>

                      payment paid or due to be paid the Officer in respect of
                      the year prior to the year in which the Qualifying
                      Termination occurs.

              (c)     A lump-sum amount, paid within fifteen (15) calendar days
                      following delivery to the Employer or delivery to the
                      Officer, as applicable, of a Notice of Termination, equal
                      to the Officer's then current target bonus opportunity
                      established under the bonus plan in which the Officer is
                      then participating, for the plan year in which the
                      Qualifying Termination occurs, adjusted on a pro rata
                      basis for the number of days that have elapsed to the
                      Effective Date of Termination during the bonus plan year
                      in which the Qualifying Termination occurs.

              (d)     A lump-sum amount, paid within fifteen (15) calendar days
                      following delivery to the Employer or delivery to the
                      Officer, as applicable, of a Notice of Termination, equal
                      to one half (0.5) times the sum of the following: (A) the
                      Officer's Base Salary and (B) the greater of the
                      Officer's: (i) annual target bonus opportunity in the year
                      in which the Qualifying Termination occurs or (ii) the
                      actual annual bonus payment paid or due to be paid the
                      Officer in respect of the year prior to the year in which
                      the Qualifying Termination occurs. Such amount shall be
                      consideration for the Officer entering into the noncompete
                      agreement as described in Section 5(a).

              (e)     Equivalent payment to Officer in a lump sum amount within
                      forty-five (45) calendar days following delivery of the
                      Notice of Termination for continued medical coverage for a
                      period of twenty four (24) months. Such equivalent payment
                      shall be computed based on the same coverage level as in
                      effect for Officer under the general health care plan
                      available to all employees on the Effective Date of
                      Termination by providing a lump sum payment of the
                      Employer's portion of the monthly COBRA premium in effect
                      on the Effective Date of Termination times twenty-four
                      (24). Nothing herein amends or provides Officer any rights
                      to health care coverage other than as provided in the
                      applicable group health care plan. If the Officer has
                      waived coverage under the applicable group health care
                      plan, no equivalent payment shall be made under this
                      Agreement.

              (f)     Immediate extension (as allowable by Section 6.10 of
                      Article VI of the plan entitled "CMS Energy Corporation
                      Performance Incentive Stock Plan," dated December 3, 1999,
                      as amended) by one year after the Effective Date of
                      Termination of the period for Officer to exercise any
                      outstanding stock options or stock appreciation rights
                      granted by the Committee to Officer pursuant to said
                      Article VI. Otherwise, the terms of said plan shall govern
                      and be applied.

              (g)     Immediate vesting and distribution to Officer (as
                      allowable by the second sentence of Section 7.2(h) of
                      Article VII of the plan entitled "CMS Energy Corporation
                      Performance Incentive Stock Plan," dated December 3, 1999,
                      as amended) within forty-five (45) days after delivery of
                      the Notice of Termination of all outstanding shares of
                      restricted stock previously awarded to Officer pursuant to
                      said Article VII. For any award of restricted stock to
                      which there are future performance goals attached, the
                      number of shares distributed to Officer shall assume that
                      the goals have

<PAGE>

                      been achieved in full and the award fully earned based on
                      target performance without deductions or additions to the
                      number of shares then held by Officer. For any award of
                      restricted stock that is tenure based, the number of
                      shares distributed to Officer shall assume that all
                      requirements with respect to tenure are satisfied by
                      Officer. Otherwise, the terms of said plan shall govern
                      and be applied.

              (h)     For an Officer included in SERP, the Officer's retirement
                      benefits under the SERP will become fully vested as of the
                      Effective Date of Termination and shall not be subject to
                      further vesting requirements or to any forfeiture
                      provisions. In addition, said Officer shall be provided
                      the following: (i) an additional twenty-four (24) months
                      of Preference Service (as defined in SERP) for purposes of
                      the SERP in accordance with Section III (1) of SERP,
                      subject, however, to the total of Preference Service plus
                      Accredited Service being limited to a maximum of
                      thirty-five (35) years under SERP; (ii) only the amounts
                      paid to Officer pursuant to clauses (a), (b), (c) and (d)
                      of this Section 3.2 shall be considered a "severance
                      payment under an employment agreement" for purposes of
                      computing Final Officer Pay under SERP; and (iii) for an
                      Officer that receives Change-in-Control Severance Benefits
                      under this Agreement within twenty four (24) months prior
                      to attaining the age of 55, Officer shall receive 65% of
                      Officer's Accrued Supplemental Officer Retirement Income
                      under SERP if Officer elects to retire at age 55
                      notwithstanding the fact that the Effective Date of
                      Termination for Officer pursuant to this Agreement is
                      before he or she attains the age of 55. If it should occur
                      that Officer retires under SERP after the age of 55,
                      clause (iii) of the preceding sentence and the provisions
                      of the last complete paragraph of Section V(3) of SERP
                      shall not be operative. The enhanced SERP benefits under
                      this Section 3.2(h) shall be in lieu of any
                      Change-in-Control enhancements provided for in the SERP.

              (i)     For purposes of (1) Retirement, (2) SERP and (3) benefits
                      not expressly discussed in clauses (a) through (h) of this
                      Section 3.2, but which are available to the general
                      employee population or available only to officers and
                      implemented with contracts with third parties, the benefit
                      plan descriptions covering all employees and the
                      retirement plan and SERP plan descriptions and contracts
                      with third parties covering officers in place at the time
                      of the Effective Date of Termination control Officer's
                      treatment under those plans and contracts. For any other
                      benefits only available to officers, if those benefits are
                      not expressly discussed in clauses (a) through (h) of this
                      Section 3.2, those benefits are terminated for Officer as
                      of the Effective Date of Termination.

      3.3      DESCRIPTION OF GENERAL SEVERANCE BENEFITS. In the event the
               Officer becomes entitled to receive General Severance Benefits as
               provided in Section 3.1(b) herein, the Employer shall provide the
               Officer with the following:

              (a)     A lump-sum amount paid within fifteen (15) calendar
                      days following delivery to the Officer of a Notice of
                      Termination with respect to a Qualifying Termination as
                      described in Section 2.17 (c) of this Agreement, equal to
                      the sum of the Officer's unpaid Base Salary, accrued
                      vacation pay, unreimbursed business expenses, and

<PAGE>

                      unreimbursed allowances owed to the Officer through and
                      including the Effective Date of Termination.

              (b)     An amount, paid following the Release Date on an
                      installment basis over a period of twelve (12) months on a
                      twice a month schedule in accordance with the normal
                      payroll procedures of the Employer, equal to one (1) times
                      the sum of: (A) the Officer's Base Salary and (B) the
                      greater of the Officer's: (i) annual target bonus
                      opportunity in the year in which the Qualifying
                      Termination occurs or (ii) the actual annual bonus payment
                      paid or due to be paid the Officer in respect of the year
                      prior to the year in which the Qualifying Termination
                      occurs. The first of the twenty-four (24) installment
                      payments called for by this section shall be made within
                      forty-five (45) days following the Release Date.

              (c)     A lump-sum amount, paid within forty-five (45) calendar
                      days following the Release Date, equal to the Officer's
                      then current target bonus opportunity established under
                      the bonus plan in which the Officer is then participating,
                      for the plan year in which the Qualifying Termination
                      occurs, adjusted on a pro rata basis for the number of
                      days that have elapsed to the Effective Date of
                      Termination during the bonus plan year in which the
                      Qualifying Termination occurs.

              (d)     Equivalent payment to Officer in a lump-sum amount within
                      forty-five (45) days following the Release Date for
                      continued medical coverage for a period of twelve (12)
                      months. Such equivalent payment shall be computed based on
                      the same coverage level as in effect for Officer under the
                      general health care plan available to all employees on the
                      Effective Date of Termination by providing a lump-sum
                      payment of the Employer's portion of the monthly COBRA
                      premium in effect on the Effective Date of Termination
                      times twelve (12). Nothing herein amends or provides
                      Officer any rights to health care coverage other than as
                      provided in the applicable group health care plan. If the
                      Officer has waived coverage under the applicable group
                      health care plan, no equivalent payment shall be made
                      under this Agreement.

              (e)     Outstanding stock options and stock appreciation
                      rights previously granted by the Committee to Officer
                      pursuant to Article VI of the plan entitled "CMS Energy
                      Corporation Performance Incentive Stock Plan," dated
                      December 3, 1999, as amended, shall be treated as a
                      "termination of employment" in accordance with Section
                      6.10 of Article VI, provided however that Employee will
                      not be eligible to seek or receive from the Committee any
                      extensions of the period for their exercise. For
                      outstanding shares of restricted stock held by Officer,
                      they shall be forfeited to CMS Energy Corporation in
                      accordance with the provisions of the first sentence of
                      Section 7.2(h) of Article VII of said plan.) For purposes
                      of (1) Retirement, (2) SERP and (3) benefits not expressly
                      discussed in clauses (a) through (d) of this Section 3.3,
                      but which are available to the general employee population
                      or available only to officers and implemented with
                      contracts with third parties, the benefit plan
                      descriptions covering all employees and the retirement
                      plan and SERP plan descriptions and contracts with third
                      parties covering officers in place at the time of

<PAGE>

                      the Effective Date of Termination control Officer's
                      treatment under those plans and contracts. For any other
                      benefits only available to officers, if those benefits are
                      not expressly discussed in clauses (a) through (d) of this
                      Section 3.3, those benefits are terminated for Officer as
                      of the Effective Date of Termination.

ARTICLE 4.        OTHER TERMINATIONS

      4.1      TERMINATION FOR DISABILITY. If the Officer's employment is
               terminated with the Employer due to Disability, the Officer's
               benefits shall be determined in accordance with the Employer's
               retirement, insurance, and other applicable plans and programs
               then in effect.

      4.2      TERMINATION FOR RETIREMENT OR DEATH. If the Officer's employment
               with the Employer is terminated by reason of his or her
               Retirement or death, the Officer's benefits shall be determined
               in accordance with the Employer's retirement and SERP plans,
               survivor's benefits, insurance, and other applicable programs
               then in effect.

      4.3      TERMINATION FOR CAUSE OR BY EMPLOYER OR THE OFFICER FOR OTHER
               THAN GOOD REASON. If the Officer's employment is terminated
               either: (a) by the Employer for Cause as defined in Section 2.6
               of this Agreement; or (b) voluntarily by the Officer for reasons
               other than those specified in Section 2.14 herein, or (c) by the
               Employer for the reasons stated in the last sentence of Section
               2.17(c) of this Agreement, the Employer shall pay the Officer the
               sum of any unpaid Base Salary, accrued vacation, unreimbursed
               business expenses and unreimbursed allowances owed to the Officer
               through the effective date of termination. The terms of the
               benefit plan descriptions, compensation plan descriptions and
               contracts with third parties covering officers shall control the
               disposition to Officer and timing of all other amounts to which
               the Officer may be entitled, and neither the Employer nor CMS
               Energy Corporation nor any of its Affiliates shall have any
               further obligations to the Officer thereunder as a result of the
               existence of this Agreement. No other severance benefits of any
               type shall be made available to Officer. Notwithstanding the
               above, if the Officer's employment terminates pursuant to this
               Section 4.3, the Officer shall be bound by the provisions
               contained in Article 5(a), 5(b), 5(c), 5(d), and 5(e) hereof.

      4.4      NOTICE OF TERMINATION. Any termination of the Officer's
               employment in accordance with Section 4.3 of this Agreement shall
               be communicated by Notice of Termination delivered to the other
               party, which shall include a specific date on which the
               termination has occurred and is effective.

ARTICLE 5.        NONCOMPETITION AND CONFIDENTIALITY

      In the event the Officer becomes entitled to receive Change-in-Control
Severance Benefits as provided in Section 3.2 herein or General Severance
Benefits as provided in Section 3.3 herein, the following shall apply:

              (a)     NONCOMPETITION. During the term of employment and for a
                      period of twelve (12)

<PAGE>

                      months after the Effective Date of Termination, the
                      Officer shall not: (i) directly or indirectly act in
                      concert or conspire with any person employed by CMS Energy
                      Corporation or any of its Affiliates in order to engage in
                      or prepare to engage in or to have a financial or other
                      interest in any business which is a Direct Competitor (as
                      defined below); or (ii) serve as an employee, agent,
                      partner, shareholder, director or consultant for, or in
                      any other capacity participate, engage, or have a
                      financial or other interest in any business which is a
                      Direct Competitor (provided, however, that notwithstanding
                      anything to the contrary contained in this Agreement, the
                      Officer may own up to two percent (2%) of the outstanding
                      shares of the capital stock of a company whose securities
                      are registered under Section 12 of the Exchange Act.

                      For purposes of this Agreement, the term "Direct
                      Competitor" shall mean any person or entity engaged in the
                      business of selling electric power or natural gas at
                      retail within the State of Michigan.

                      The Committee also reserves the right to designate, prior
                      to the termination date specified in a Notice of
                      Termination, any Person that it believes, in good faith,
                      is a significant competitive threat to CMS Energy
                      Corporation or its Affiliates.

              (b)     CONFIDENTIALITY. The Employer has advised the Officer and
                      the Officer acknowledges that it is the policy of CMS
                      Energy Corporation and its Affiliates to maintain as
                      secret and confidential all Protected Information (as
                      defined below), and that Protected Information has been
                      and will be developed at substantial cost and effort to
                      CMS Energy Corporation and its Affiliates. The Officer
                      shall not at any time, directly or indirectly, divulge,
                      furnish, or make accessible to any person, firm,
                      corporation, association, or other entity (other than as
                      may be required in the regular course of the Officer's
                      employment), nor use in any manner, either during the term
                      of employment or after termination, for any reason, any
                      Protected Information, or cause any such information of
                      CMS Energy Corporation and its Affiliates to enter the
                      public domain.

                      For purposes of this Agreement, "Protected Information"
                      means trade secrets, confidential and proprietary business
                      information of CMS Energy Corporation and its Affiliates
                      and any other information of CMS Energy Corporation and
                      its Affiliates, including, but not limited to, customer
                      lists (including potential customers), sources of supply,
                      processes, plans, materials, pricing information, internal
                      memoranda, marketing plans, internal policies, and
                      products and services which may be developed from time to
                      time by CMS Energy Corporation and its Affiliates and
                      their agents or employees, including the Officer;
                      provided, however, that information that is in the public
                      domain (other than as a result of a breach of this
                      Agreement), approved for release by CMS Energy Corporation
                      or its Affiliates or lawfully obtained from third parties
                      who are not bound by a confidentiality agreement with CMS
                      Energy Corporation or its Affiliates, is not Protected
                      Information. Notwithstanding the foregoing, nothing in
                      this subsection is to be construed as prohibiting Officer
                      from freely providing information to a state or federal
                      agency, legislative body or one of its committees or a
                      court with jurisdiction when Officer is requested or
                      required to do so by such entity.

<PAGE>

              (c)     NONSOLICITATION. During the term of employment and for a
                      period of twelve (12) months after the Effective Date of
                      Termination, the Officer shall not: (i) employ or retain
                      or solicit for employment or arrange to have any other
                      person, firm, or other entity employ or retain or solicit
                      for employment or otherwise participate in the employment
                      or retention of any person who is an employee or
                      consultant of CMS Energy Corporation or its Affiliates; or
                      (ii) solicit suppliers or customers of CMS Energy
                      Corporation or its Affiliates or induce any such person to
                      terminate their relationship with them.

              (d)     COOPERATION. Officer agrees to fully and unconditionally
                      cooperate with CMS Energy Corporation and its Affiliates
                      and their attorneys in connection with any and all
                      lawsuits, claims, investigations, or similar proceedings
                      that have been or could be asserted at any time arising
                      out of or related in any way to Officer's employment or
                      activities on behalf of CMS Energy Corporation and its
                      Affiliates.

              (e)     NONDISPARAGEMENT. At all times, the Officer agrees not to
                      disparage CMS Energy Corporation or its Affiliates or
                      otherwise make comments harmful to their reputations.
                      While receiving any payments pursuant to this Agreement,
                      Officer further agrees not to testify or act in any
                      capacity as a paid or unpaid expert witness, advisor or
                      consultant on behalf of any person, individual,
                      partnership, firm, corporation or any other person or
                      entity that has or may have any claim, demand, action,
                      suit, cause of action, or judgment against CMS Energy
                      Corporation or its Affiliates, or from agreeing to do so
                      after the payments under this Agreement have ceased.
                      Further, CMS Energy Corporation and its Affiliates agree
                      not to disparage Officer or otherwise make comments
                      harmful to Officer's reputation. Notwithstanding the
                      foregoing, nothing in this Section prohibits Officer or
                      representatives of CMS Energy Corporation or its
                      Affiliates from testifying truthfully under oath in any
                      judicial, administrative or legislative proceedings or in
                      any arbitration, mediation or other similar proceedings.

ARTICLE 6.        EXCISE TAX EQUALIZATION PAYMENT

      6.1    EXCISE TAX EQUALIZATION PAYMENT. In the event that the Officer
             becomes entitled to Severance Benefits or any other payment or
             benefit under this Agreement, or under any other agreement, plan
             or arrangement for which Officer is eligible with (1) the
             Employer, (2) any Person whose actions result in a Change in
             Control, or (3) CMS Energy Corporation or any of its Affiliates
             (all of such payments and benefits collectively referred to as the
             "Total Payments"), and if all or any part of the Total Payments
             will be subject to the tax (the "Excise Tax") imposed by Sections
             280G and 4999 of the Code (or any similar tax that may hereafter
             be imposed), the Employer shall pay to the Officer in cash an
             additional amount (the "Gross-Up Payment") such that the net
             amount retained by the Officer after deduction of any Excise Tax
             upon the Total Payments and any federal, state, and local income
             tax, penalties, interest, and Excise Tax upon the Gross-Up Payment
             provided for by this Section

<PAGE>

             6.1 (including FICA and FUTA), shall be equal to the Total
             Payments. Such payment shall be made by the Employer to the Officer
             within forty-five (45) calendar days following the Effective Date
             of Termination.

             For purposes of determining the amount of the Gross-Up Payment, the
             Officer shall be deemed to pay federal income taxes at the highest
             marginal rate of federal income taxation in the calendar year in
             which the Gross-Up Payment is to be made, and state and local
             income taxes at the highest marginal rate of taxation in the state
             and locality of the Officer's residence on the Effective Date of
             Termination, net of the maximum reduction in federal income taxes
             which could be obtained from deduction of such state and local
             taxes.

      6.2    SUBSEQUENT RECALCULATION. In the event the Internal Revenue Service
             adjusts the computation under Section 6.1 herein so that the
             Officer did not receive the greatest net benefit, the Employer
             shall reimburse the Officer for the full amount necessary to make
             the Officer whole, plus interest on the reimbursed amount at 120%
             of the rate provided in section 1274(b)(2)(B) of the Code. In the
             event that the Excise Tax is finally determined to be less than the
             amount taken into account hereunder in calculating the Gross-Up
             Payment, the Officer shall repay the Employer within thirty (30)
             business days following the time that the amount of such reduction
             in the Excise Tax is finally determined, the portion of the
             Gross-Up Payment attributable to such reduction (plus that portion
             of the Gross-Up Payment attributable to the Excise Tax and federal,
             state and local income and employment taxes imposed on the Gross-Up
             Payment being repaid by the Officer) to the extent that such
             repayment results in a reduction in the Excise Tax and a
             dollar-for-dollar reduction in the Officer's taxable income and
             wages for purposes of federal, state and local income and
             employment taxes, plus interest on the amount of such repayment at
             120% of the rate provided in section 1274(b)(2)(B) of the Code.

ARTICLE 7.        DISPUTE RESOLUTION AND NOTICE

     7.1     DISPUTE RESOLUTION. Any dispute or controversy between the parties
             arising under or in connection with this Agreement shall be settled
             by final and binding arbitration after first being submitted in
             writing to the Committee for attempted resolution. If that does not
             result in mutually agreeable resolution, the arbitration proceeding
             shall be conducted before a single arbitrator selected by the
             parties to be conducted in Jackson, Michigan. The arbitration will
             be conducted in accordance with the rules of the American
             Arbitration Association then in effect and be finished within
             ninety (90) days after the selection of the arbitrator. The
             arbitrator shall not have authority to fashion a remedy that
             includes consequential, exemplary or punitive damages of any type
             whatsoever, and the arbitrator is hereby prohibited from awarding
             injunctive relief of any kind, whether mandatory or prohibitory.
             Judgment may be entered on the award of the arbitrators in any
             court having competent jurisdiction. The parties shall share
             equally the cost of the arbitrator and of conducting the
             arbitration proceeding, but each party shall bear the cost of its
             own legal counsel and experts and other out-of-pocket expenditures.

<PAGE>

      7.2    NOTICE. Any notices, requests, demands, or other communications
             provided for by this Agreement shall be in writing and sent by
             registered or certified mail to the Officer at the last address he
             or she has filed in writing with the Employer or, in the case of
             the Employer, at One Energy Plaza, Jackson, Michigan 49201,
             Attention: Corporate Secretary. Notices, requests, demands or other
             communications may also be delivered by messenger, courier service
             or other electronic means and are sufficient if actually received
             by the party for whom it is intended.

ARTICLE 8.        SUCCESSORS AND ASSIGNMENT

      8.1    SUCCESSORS. Any successor (whether direct or indirect, by purchase,
             merger, reorganization, consolidation, acquisition of property or
             stock, liquidation, or otherwise) to the business of CMS Energy
             Corporation or purchaser of all or substantially all of the assets
             of CMS Energy Corporation shall be required to expressly assume and
             agree to perform under this Agreement in the same manner and to the
             same extent that the Employer would be required to perform if no
             such succession had taken place. Failure to obtain such assumption
             and agreement prior to the effectiveness of any such succession or
             asset sale shall entitle the Officer to the Change-in-Control
             Severance Benefits specified in Section 3.2 of this Agreement. The
             effective date of the succession or the sale shall be deemed the
             date of delivery to Officer of the Notice of Termination for
             purposes of administering Section 3.2. Regardless of whether such
             agreement is executed, this Agreement shall be binding upon any
             successor in accordance with the operation of law.

      8.2    ASSIGNMENT BY THE OFFICER. This Agreement shall inure to the
             benefit of and be enforceable by the Officer's personal or legal
             representatives, executors, administrators, successors, heirs,
             distributees, devisees, and legatees. If the Officer dies while any
             amount would still be payable to him or her hereunder had he or she
             continued to live, all such amounts, unless otherwise provided
             herein, shall be paid in accordance with the terms of this
             Agreement to the Officer's Beneficiary. If the Officer has not
             named a Beneficiary, then such amounts shall be paid to the
             Officer's devisee, legatee, or other designee, or if there is no
             such designee, to the Officer's estate.

ARTICLE 9.        MISCELLANEOUS

      9.1    EMPLOYMENT STATUS. The employment of the Officer by the Employer is
             "at will" and may be terminated by either the Officer or the
             Employer at any time, subject to applicable law. Further, Officer
             has no right to be an officer of CMS Energy Corporation or any of
             its Affiliates and serves as an officer entirely at the discretion
             of the Board.

      9.2    ENTIRE AGREEMENT. This Agreement supersedes any prior
             agreements or understandings, oral or written, between the parties
             hereto, with respect to the subject matter hereof, and constitutes
             the entire agreement of the parties with respect thereto. Without
             limiting the generality of the foregoing sentence, this Agreement
             completely supersedes, cancels, voids

<PAGE>

             and renders of no further force and effect any and all employment
             agreements, change in control agreements, and other similar
             agreements, communications, representations, promises, covenants
             and arrangements, whether oral or written, between the Employer and
             Officer and between the Officer and CMS Energy Corporation or any
             of its Affiliates that may have taken place or been executed prior
             to the Effective Date of this Agreement and which may address the
             subject matters contained herein.

      9.3    SEVERABILITY. In the event that any provision or portion of this
             Agreement shall be determined to be invalid or unenforceable for
             any reason, the remaining provisions of this Agreement shall be
             unaffected thereby and shall remain in full force and effect.

      9.4    TAX WITHHOLDING. The Employer may withhold from any benefits
             payable under this Agreement any authorized deductions and all
             federal, state, city, or other taxes as may be required pursuant to
             any law or governmental regulation or ruling.

      9.5    BENEFICIARIES. The Officer may designate one (1) or more persons or
             entities as the primary and/or contingent beneficiaries of any
             amounts to be received under this Agreement. Such designation must
             be in the form of a signed writing on a form provided by the
             Employer. The Officer may make or change such designation at any
             time.

      9.6    PAYMENT OBLIGATION ABSOLUTE. Except as provided in the last
             sentence of this paragraph, the Employer's and CMS Energy
             Corporation's obligations to make the payments and provide the
             benefits to Officer specified herein shall be absolute and
             unconditional, and shall not be affected by any circumstances,
             including, without limitation, any offset, counterclaim,
             recoupment, defense, or other right which the Employer, CMS Energy
             Corporation or any of its Affiliates may have against the Officer
             or anyone else. All amounts payable by the Employer hereunder shall
             be paid without notice or demand. Each and every payment made
             hereunder by the Employer shall be final, but subject to the
             provisions of the next sentence. If the Officer should seek to
             bypass arbitration and litigate about this Agreement or the subject
             matters addressed herein in a state or federal court, Officer
             agrees (i) at least 10 days prior to filing in court to tender back
             to the Employer all cash consideration paid to Officer under this
             Agreement prior thereto and (ii) any payments due Officer under
             this Agreement after said tender shall be suspended until said
             litigation is finally resolved.

             The Officer shall not be obligated to seek other employment in
             mitigation of the amounts payable or arrangements made under any
             provision of this Agreement, and the obtaining of any such other
             employment shall in no event effect any reduction of the Employer's
             obligations to make the payments and arrangements required to be
             made under this Agreement.

      9.7    CONTRACTUAL RIGHTS TO BENEFITS. Subject to approval and
             ratification by the Committee, this Agreement establishes and vests
             in the Officer a contractual right to the benefits to which he or
             she is entitled hereunder. However, nothing herein contained shall
             require or be deemed to require, or prohibit or be deemed to
             prohibit, the Employer to segregate, earmark, or otherwise set
             aside any funds or other assets, in trust or otherwise, to provide
             for any

<PAGE>

             payments to be made or required hereunder.

      9.8    MODIFICATION. This Agreement shall not be varied, altered,
             modified, canceled, changed, or in any way amended except by mutual
             agreement of the parties in a written instrument executed by the
             parties hereto or their legal representatives.

      9.9    COUNTERPARTS. This Agreement may be executed in one (1) or more
             counterparts, each of which shall be deemed to be an original, but
             all of which together will constitute one and the same Agreement.
             Signatures transmitted via facsimile shall be regarded by the
             parties as original signatures.

      9.10   APPLICABLE LAW. This Agreement shall be governed and construed in
             accordance with the laws of the State of Michigan, without regard
             to its conflicts of laws principles.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of this
      ____day of ___________, 2004.

                                     OFFICER:

By: ___________________________      Signature:     ____________________________

Its:  _________________________      Printed Name:  ____________________________

<PAGE>

                           CHANGE-IN-CONTROL AGREEMENT

                                                                      TIER III

<PAGE>
<Table>
<Caption>

CONTENTS
-------------------------------------------------------------------------------
<S>                                                                        <C>

Article 1.        Establishment, Term, and Purpose                          1

Article 2.        Definitions                                               2

Article 3.        Severance Benefits                                        8

Article 4.        Other Terminations                                       11

Article 5.        Noncompetition and Confidentiality                       11

Article 6.        Excise Tax Equalization Payment                          13

Article 7.        Dispute Resolution and Notice                            14

Article 8.        Successors and Assignment                                14

Article 9.        Miscellaneous                                            15

</Table>
<PAGE>

                           CHANGE-IN-CONTROL AGREEMENT

      THIS CHANGE-IN-CONTROL AGREEMENT ("Agreement") is made, entered into, and
is effective as of _______ , 2004 (hereinafter referred to as the "Effective
Date"), by and between __________, a Michigan corporation, (hereinafter referred
to as the "Employer") and _____________________ (hereinafter referred to as the
"Executive").

      WHEREAS, the Board of Directors of CMS Energy Corporation has approved
entering into change-in-control agreements with certain key executives as being
necessary and advisable for the success of CMS Energy Corporation;

      WHEREAS, the Executive is currently employed at _________________, by the
Employer in a key management position as Chairman of the Board and Chief
Executive Officer;

      WHEREAS, the Board of Directors of CMS Energy Corporation wants to provide
the Executive with a measure of financial security in the event of a change in
control of CMS Energy Corporation; and

      WHEREAS, both the Employer and the Executive are desirous that any
proposal involving Change in Control as defined in this Agreement will be
considered by the Executive objectively and with reference only to the business
interests of CMS Energy Corporation and its shareholders.

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intended to be legally bound, agree as
follows:

ARTICLE 1.        ESTABLISHMENT, TERM, AND PURPOSE

      This Agreement will commence on the Effective Date and shall continue in
effect for three (3) full years through March ____, 2007. However, at the end of
such three (3) year period and, if extended, at the end of each additional year
thereafter, the term of this Agreement shall be extended automatically for one
(1) additional year, unless the Committee delivers written notice six (6) months
prior to the end of such term, or extended term, to the Executive, stating that
the Agreement will not be extended. In such case, the Agreement will terminate
at the end of the term, or extended term, then in progress. However, in the
event of a Change in Control (as defined in Section 2.7 herein) of CMS Energy
Corporation, the term of this Agreement shall automatically be extended for two
(2) years from the date of the Change in Control if the current term of the
Agreement has less than two (2) full years remaining until its expiration.
Notwithstanding the foregoing, this Agreement shall automatically terminate and
thereafter be of no force and effect at the same time that the First Amended and
Restated Employment Agreement, dated as of September 1, 2003, between Executive
and CMS Energy Corporation ("Employment Agreement") is terminated pursuant to
its Section 6. If the term of this Agreement is not extended or if the Agreement
is terminated, the Employer is not obligated to pay any severance benefits under
Section 3.2 for a Change in Control that happens after the

<PAGE>

expiration of the term or after the termination of this Agreement.

ARTICLE 2.        DEFINITIONS

      Whenever used in this Agreement, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter
of the word is capitalized.

      2.1     "AFFILIATE" shall have the meaning set forth in Rule 12B-2
              promulgated under Section 12 of the Exchange Act.

      2.2     "BASE SALARY" means the greater of the Executive's full annual
              rate of salary, whether or not any portion thereof is paid on a
              deferred basis, at: (i) the Effective Date of Termination, or (ii)
              at the date of the Change in Control. It does not include any
              incentive compensation in any form, bonuses of any type or any
              other form of monetary or nonmonetary compensation other than
              salary.

      2.3     "BENEFICIAL OWNER" shall have the meaning ascribed to such term in
              Rule 13d-3 of the General Rules and Regulations under the Exchange
              Act.

      2.4     "BENEFICIARY" means the persons or entities designated or deemed
              designated by the Executive pursuant to Section 9.5 herein.

      2.5     "BOARD" means the Board of Directors of CMS Energy Corporation.

      2.6     "CAUSE" shall be determined solely by the Committee in the
              exercise of good faith and reasonable judgment, and shall mean the
              occurrence of any one or more of the following:

              (a)     The willful and continued failure by the Executive to
                      substantially perform his or her duties of employment
                      (other than any such failure resulting from the
                      Executive's Disability), after a written demand for
                      substantial performance is delivered to the Executive that
                      specifically identifies the manner in which the Committee
                      believes that the Executive has not substantially
                      performed his or her duties, and the Executive has failed
                      to remedy the situation within a reasonable period of time
                      specified by the Committee which shall not be less than 30
                      days; or

              (b)     The Executive's arrest for committing an act of fraud,
                      embezzlement, theft, or other act constituting a felony
                      involving moral turpitude; or

              (c)     The willful engaging by the Executive in misconduct
                      materially and demonstrably injurious to CMS Energy
                      Corporation or its Affiliates, monetarily or otherwise.

              However, for purposes of clauses (a) and (c), no act or failure to
              act on the Executive's part shall be considered "willful" unless
              done, or omitted to be done, by the Executive not in good faith
              and without reasonable belief that his or her action or

<PAGE>

              omission was in the best interest of CMS Energy Corporation or
              its Affiliates.

      2.7     "CHANGE IN CONTROL" means a change in control of CMS Energy
              Corporation, and shall be deemed to have occurred upon the first
              to occur of any of the following events:

              (a)     Any Person is or becomes the Beneficial Owner, directly
                      or indirectly, of securities of CMS Energy Corporation
                      (not including in the securities beneficially owned by
                      such Person any securities acquired directly from CMS
                      Energy Corporation or its Affiliates) representing
                      twenty-five percent (25%) or more of the combined voting
                      power of CMS Energy Corporation's then outstanding
                      securities, excluding any Person who becomes such a
                      Beneficial Owner in connection with a transaction
                      described in clause (i) of paragraph (c) below; or

              (b)     The following individuals cease for any reason to
                      constitute a majority of directors then serving:
                      individuals who, on the Effective Date, constitute the
                      Board and any new director (other than a director whose
                      initial assumption of office is in connection with an
                      actual or threatened election contest, including but not
                      limited to a consent solicitation, relating to the
                      election of directors of CMS Energy Corporation) whose
                      appointment or election by the Board or nomination for
                      election by CMS Energy Corporation's stockholders was
                      approved or recommended by a vote of at least two-thirds
                      (2/3) of the directors then still in office who either
                      were directors on the Effective Date or whose appointment,
                      election or nomination for election was previously so
                      approved or recommended; or

              (c)     The consummation of a merger or consolidation of CMS
                      Energy Corporation or any direct or indirect subsidiary of
                      CMS Energy Corporation with any other corporation or other
                      entity, other than: (i) any such merger or consolidation
                      which involves either CMS Energy Corporation or any such
                      subsidiary and would result in the voting securities of
                      CMS Energy Corporation outstanding immediately prior
                      thereto continuing to represent (either by remaining
                      outstanding or by being converted into voting securities
                      of the surviving entity or any parent thereof), in
                      combination with the ownership of any trustee or other
                      fiduciary holding securities under an employee benefit
                      plan of CMS Energy Corporation or its Affiliates, at least
                      sixty percent (60%) of the combined voting power of the
                      voting securities of CMS Energy Corporation or the
                      surviving entity or any parent thereof outstanding
                      immediately after such merger or consolidation and
                      immediately following which the individuals who comprise
                      the Board immediately prior thereto constitute at least a
                      majority of the board of directors of CMS Energy
                      Corporation, the entity surviving such merger or
                      consolidation or, if CMS Energy Corporation or the entity
                      surviving such merger is then a subsidiary, the ultimate
                      parent thereof; or (ii) a merger or consolidation effected
                      to implement a recapitalization of CMS Energy Corporation
                      (or similar transaction) in which no Person is or becomes
                      the Beneficial Owner, directly or indirectly, of
                      securities of CMS Energy Corporation (not including in the
                      securities beneficially owned by such Person any
                      securities acquired directly from CMS

<PAGE>

                      Energy Corporation or its Affiliates) representing
                      twenty-five percent (25%) or more of the combined voting
                      power of CMS Energy Corporation's then outstanding
                      securities; or

              (d)     Either (1) the stockholders of CMS Energy Corporation
                      approve a plan of complete liquidation or dissolution of
                      CMS Energy Corporation, or (2) there is consummated an
                      agreement for the sale, transfer or disposition by CMS
                      Energy Corporation of all or substantially all of CMS
                      Energy Corporation's assets (or any transaction having a
                      similar effect). For purposes of clause (d)(2), (i) the
                      sale, transfer or disposition of a majority of the shares
                      of common stock of Consumers Energy Company shall
                      constitute a sale, transfer or disposition of
                      substantially all of the assets of CMS Energy Corporation
                      and (ii) the sale, transfer or disposition of subsidiaries
                      or affiliates of CMS Energy Corporation, singly or in
                      combinations, or their assets, only qualifies as a Change
                      in Control if it satisfies the substantiality test
                      contained in that clause and the Board of CMS Energy
                      Corporation's determination in that regard is final. In
                      addition, for purposes of clause (d)(2), the sale,
                      transfer or disposition of assets has to be in a
                      transaction or series of transactions closing within six
                      months after the closing of the first transaction in the
                      series, other than with an entity in which at least 60% of
                      the combined voting power of the voting securities is
                      owned by stockholders of CMS Energy Corporation in
                      substantially the same proportions as their ownership of
                      CMS Energy Corporation immediately prior to such
                      transaction or transactions and immediately following
                      which the individuals who comprise the Board immediately
                      prior thereto constitute at least a majority of the board
                      of directors of the entity to which such assets are sold,
                      transferred or disposed or, if such entity is a
                      subsidiary, the ultimate parent thereof.

              Notwithstanding the foregoing clauses (a), (c) and (d), a "Change
              in Control" shall not be deemed to have occurred by virtue of the
              consummation of any transaction or series of integrated
              transactions closing within six months after the closing of the
              first transaction in the series immediately following which the
              record holders of the common stock of CMS Energy Corporation
              immediately prior to such transaction or series of transactions
              continue to have substantially the same proportionate ownership
              in an entity which owns all or substantially all of the assets of
              CMS Energy Corporation immediately following such transaction or
              series of transactions.

        2.8   "CODE" means the United States Internal Revenue Code of 1986, as
              amended, and any successors thereto.

        2.9   "COMMITTEE" means the Organization and Compensation Committee of
              the Board of CMS Energy Corporation or any other committee
              appointed by the Board of CMS Energy Corporation to perform the
              functions of the Organization and Compensation Committee.

        2.10  "DISABILITY" means for all purposes of this Agreement, the
              incapacity of the Executive, due to injury, illness, disease, or
              bodily or mental infirmity, which causes the Executive not to
              engage in the performance of a substantial or material portion of
              the Executive's usual duties of employment associated with such
              Executive's

<PAGE>

               position.  Such Disability shall be determined based on competent
               medical advice.

        2.11   "EFFECTIVE DATE" means the date of this Agreement as specified
               in the opening sentence of this Agreement.

        2.12   "EFFECTIVE DATE OF TERMINATION" means the date on which a
               Qualifying Termination occurs, as provided under Section 2.17
               hereunder, which triggers the payment of Severance Benefits
               hereunder.

        2.13   "EXCHANGE ACT" means the United States Securities Exchange Act of
               1934, as amended.

        2.14   "GOOD REASON" exists only on the date of a Change in Control or
               during the twenty-four (24) months which follow a Change in
               Control and shall mean, without the Executive's express written
               consent, the occurrence of any one or more of the following:

              (a)    The assignment to the Executive of duties materially
                     inconsistent with the Executive's position (including
                     status, offices, titles, and reporting requirements),
                     authority, or responsibilities as in effect on the
                     Effective Date, or any action by the Employer which
                     results in a diminution of the Executive's position,
                     authority, duties, or responsibilities as constituted as
                     of the Effective Date (excluding an isolated,
                     insubstantial, and inadvertent action which is remedied by
                     the Employer promptly after receipt of notice thereof
                     given by the Executive); or

              (b)    Reducing the Executive's Base Salary; or

              (c)    Reducing the Executive's targeted annual incentive
                     opportunity; or

              (d)    Failing to maintain the Executive's participation in a
                     long-term incentive plan in a manner that is consistent
                     with the Executive's position, authority, or
                     responsibilities; or

              (e)    Failing to maintain the Executive's amount of benefits
                     under or relative level of participation in employee
                     benefit or retirement plans, policies, practices, or
                     arrangements of a material nature available to employees of
                     CMS Energy Corporation and its Affiliates and in which the
                     Executive participates as of the Effective Date; or

              (f)    A material breach of this Agreement by the Employer which
                     is not remedied by the Employer within ten (10) business
                     days of receipt of written notice of such breach delivered
                     by the Executive to the Committee; or

              (g)    Any successor company fails or refuses to assume the
                     obligations owed to Executive under this Agreement in their
                     entirety, as required by Section 8.1 hereunder; or

              (h)    The Executive is required to be based at a location in
                     excess of thirty-five (35) miles from the location of the
                     Executive's principal job location or office

<PAGE>

                     immediately prior to a Change in Control except for
                     required travel on the Employer's or CMS Energy
                     Corporation's business to an extent substantially
                     consistent with the Executive's prior business travel
                     obligations; or

              (i)    The Executive ceases being an executive officer of a
                     company (other than by reason of death, Disability or
                     Cause) whose common stock is publicly owned if immediately
                     prior to the Change in Control the Executive was an
                     executive officer of a company whose common stock was
                     publicly owned.

               For purposes of applying clauses (a) through (i) of this
               Agreement, the Executive's Retirement shall not constitute a
               waiver of the Executive's rights with respect to any circumstance
               constituting Good Reason, and the Executive's continued
               employment shall not constitute a waiver of the Executive's
               rights with respect to any circumstance constituting Good Reason
               or constitute Executive's consent to the circumstances
               constituting Good Reason unless Executive has provided express
               written consent to the circumstance that would otherwise
               constitute Good Reason under this Agreement. Finally, for
               purposes of implementing this Agreement, any claim by Executive
               that Good Reason exists shall be presumed to be correct unless
               the Committee determines by clear and convincing evidence that
               Good Reason does not exist, which evidence shall be presented by
               the person disputing the claim that Good Reason exists.

       2.15    "NOTICE OF TERMINATION" shall be provided for a Qualifying
               Termination and shall mean a written notice which shall indicate
               the specific termination provision in this Agreement relied upon,
               and shall set forth in reasonable detail the facts and
               circumstances claimed to provide a basis for termination of the
               Executive's employment under the provision so indicated. The
               notice shall provide a specific date on which a Qualifying
               Termination has occurred and is effective for purposes of this
               Agreement.

       2.16    "PERSON" shall have the meaning ascribed to such term in Section
               3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
               thereof, including a "group" as provided in Section 13(d).

       2.17    "QUALIFYING TERMINATION" MEANS:

                (a)   An involuntary termination of the Executive's employment
                      by the Employer on the date of a Change in Control or
                      during the twenty-four (24) months which follow a Change
                      in Control for reasons other than death, Disability,
                      Retirement, or Cause pursuant to a Notice of Termination
                      delivered to the Executive by the Employer; or

                (b)   A voluntary termination by the Executive for Good Reason
                      on the date of a Change in Control or during the
                      twenty-four (24) months which follow a Change in Control
                      pursuant to a Notice of Termination delivered to the
                      Employer by the Executive.

                (c)   A termination for failure of the Executive to comply
                      in material respects with CMS Energy's Code of Conduct
                      and Statement of Ethics Handbook (June

<PAGE>

                      2003 edition) or other corporate policies, as the
                      handbook and those documents may be amended from time to
                      time, does not satisfy the definition of a Qualifying
                      Termination under clauses (a) and (b).

        2.18   "RETIREMENT" shall have the meanings ascribed under the terms of
               the pension plan applicable to Executive and entitled "Pension
               Plan for Employees of Consumers Energy Company," dated September
               1, 2000, as amended, other than under Section 7 thereof, or
               under the successor or replacement of such pension plan if it is
               then no longer in effect.

        2.19   "SERP" shall mean the retirement plan applicable to Executive and
               entitled "Supplemental Executive Retirement Plan for Employees of
               CMS Energy/Consumers Energy Company," dated May 1, 1998, as
               amended, or under the successor or replacement of such retirement
               plan if it is then no longer in effect.

        2.20   "SEVERANCE BENEFITS" means the payment of Change-in-Control
               Severance Benefits as provided in Article 3 herein.

ARTICLE 3. SEVERANCE BENEFITS

      3.1   RIGHT TO CHANGE-IN-CONTROL SEVERANCE BENEFITS.

              (a)     CHANGE-IN-CONTROL SEVERANCE BENEFITS. The Executive shall
                      be entitled to receive from the Employer Change-in-Control
                      Severance Benefits, as described in Section 3.2 herein, if
                      a Qualifying Termination of the Executive's employment
                      satisfying the definitions contained in Section 2.17(a) or
                      (b) has occurred on the date of a Change in Control of CMS
                      Energy Corporation or within twenty-four (24) months
                      immediately following a Change in Control of CMS Energy
                      Corporation. Further, Executive's Retirement under the
                      pension plan and SERP shall not constitute a waiver of the
                      Executive's rights with respect to receipt of
                      Change-in-Control Severance Benefits. Nor shall benefits
                      received for Retirement under the pension plan and SERP
                      (or any replacement or successor plans thereto) be used as
                      an offset to the level of Change-in-Control Severance
                      Benefits owed to Executive.

              (b)     NO SEVERANCE BENEFITS. Other than in a situation involving
                      a Retirement, the Executive shall not be entitled to
                      receive Severance Benefits pursuant to this Agreement if
                      the Executive's employment with the Employer ends for
                      reasons other than a Qualifying Termination.

              (c)     WAIVER AND RELEASE. The Executive's act of accepting
                      payment of Severance Benefits payable under Section 3.2 of
                      this Agreement shall constitute and is deemed an express
                      waiver, release and discharge by Executive of any and all
                      claims for damages or other remedies, regardless of when
                      they arose or when they are discovered, against CMS Energy
                      Corporation and its Affiliates arising out of or in any
                      way connected with Executive's employment relationship
                      with them or the termination of such employment
                      relationship except for claims and

<PAGE>

                     rights of Executive preserved under Section 3.2 of this
                     Agreement and applicable rights to indemnification.

              (d)    NO DUPLICATION OF SEVERANCE BENEFITS. If the Executive
                     receives Change-in-Control Severance Benefits under
                     Section 3.2, any other severance benefits received by
                     employees not covered by this Agreement to which the
                     Executive is entitled will be subtracted from the
                     Severance Benefits paid pursuant to this Agreement.

       3.2    DESCRIPTION OF CHANGE-IN-CONTROL SEVERANCE BENEFITS. In the event
              the Executive becomes entitled to receive Change-in-Control
              Severance Benefits, as provided in Section 3.1(a) herein, the
              Employer shall provide the Executive with the following:

              (a)    A lump-sum amount paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination,
                     equal to the sum of the Executive's unpaid Base Salary,
                     accrued vacation pay, unreimbursed business expenses, and
                     unreimbursed allowances owed to the Executive through and
                     including the Effective Date of Termination.

               (b)   A lump-sum amount, paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination, equal
                     to two (2) times the sum of the following: (A) the
                     Executive's Base Salary and (B) the greater of the
                     Executive's: (i) annual target bonus opportunity in the
                     year in which the Qualifying Termination occurs or (ii) the
                     actual annual bonus payment paid or due to be paid the
                     Executive in respect of the year prior to the year in which
                     the Qualifying Termination occurs.

               (c)   A lump-sum amount, paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination, equal
                     to the Executive's then current target bonus opportunity
                     established under the bonus plan in which the Executive is
                     then participating, for the plan year in which the
                     Qualifying Termination occurs, adjusted on a pro rata basis
                     for the number of days that have elapsed to the Effective
                     Date of Termination during the bonus plan year in which the
                     Qualifying Termination occurs.

               (d)   A lump-sum amount, paid within fifteen (15) calendar days
                     following delivery to the Employer or delivery to the
                     Executive, as applicable, of a Notice of Termination,
                     equal to one (1) times the sum of the following: (A) the
                     Executive's Base Salary and (B) the greater of the
                     Executive's: (i) annual target bonus opportunity in the
                     year in which the Qualifying Termination occurs or (ii)
                     the actual annual bonus payment paid or due to be paid the
                     Executive in respect of the year prior to the year in
                     which the Qualifying Termination occurs. Such amount shall
                     be consideration for the Executive entering into the
                     noncompete agreement as described in Section 5(a).

               (e)   Equivalent payment to Executive in a lump sum amount
                     within forty-five (45) calendar days following delivery of
                     the Notice of Termination for continued

<PAGE>

                     medical coverage for a period of thirty-six (36) months.
                     Such equivalent payment shall be computed based on the
                     same coverage level as in effect for Executive under the
                     general health care plan available to all employees on the
                     Effective Date of Termination by providing a lump sum
                     payment of the Employer's portion of the monthly COBRA
                     premium in effect on the Effective Date of Termination
                     times thirty-six (36). Nothing herein amends or provides
                     Executive any rights to health care coverage other than as
                     provided in the applicable group health care plan. If the
                     Executive has waived coverage under the applicable group
                     health care plan, no equivalent payment shall be made
                     under this Agreement.

               (f)   Immediate extension (as allowable by Section 6.10 of
                     Article VI of the plan entitled "CMS Energy Corporation
                     Performance Incentive Stock Plan," dated December 3, 1999,
                     as amended) by one year after the Effective Date of
                     Termination of the period for Executive to exercise any
                     outstanding stock options or stock appreciation rights
                     granted by the Committee to Executive pursuant to said
                     Article VI. Otherwise, the terms of said plan shall govern
                     and be applied.

               (g)   Immediate vesting and distribution to Executive (as
                     allowable by the second sentence of Section 7.2(h) of
                     Article VII of the plan entitled "CMS Energy Corporation
                     Performance Incentive Stock Plan," dated December 3, 1999,
                     as amended) within forty-five (45) days after delivery of
                     the Notice of Termination of all outstanding shares of
                     restricted stock previously awarded to Executive pursuant
                     to said Article VII. For any award of restricted stock to
                     which there are future performance goals attached, the
                     number of shares distributed to Executive shall assume
                     that the goals have been achieved in full and the award
                     fully earned based on target performance without
                     deductions or additions to the number of shares then held
                     by Executive. For any award of restricted stock that is
                     tenure based, the number of shares distributed to
                     Executive shall assume that all requirements with respect
                     to tenure are satisfied by Executive. Otherwise, the terms
                     of said plan shall govern and be applied.

               (h)   For an Executive included in SERP, the Executive's
                     retirement benefits under the SERP will become fully
                     vested as of the Effective Date of Termination and shall
                     not be subject to further vesting requirements or to any
                     forfeiture provisions. In addition, said Executive shall
                     be provided the following: (i) an additional thirty-six
                     (36) months of Preference Service (as defined in SERP) for
                     purposes of the SERP in accordance with Section III(1) of
                     SERP, subject, however, to the total of Preference Service
                     plus Accredited Service being limited to a maximum of
                     thirty-five (35) years under SERP, and (ii) only the
                     amounts paid to Executive pursuant to clauses (a), (b),
                     (c) and (d) of this Section 3.2 shall be considered a
                     "severance payment under an employment agreement" for
                     purposes of computing Final Executive Pay under SERP.
                     Since the Executive is over the age of 55, the provisions
                     of the last complete paragraph of Section V(3) of SERP
                     shall not be operative. The enhanced SERP benefits under
                     this Section 3.2(h) shall be in lieu of any
                     Change-in-Control enhancements provided for in the SERP.

<PAGE>

               (i)   For purposes of (1) Retirement, (2) SERP and (3) benefits
                     not expressly discussed in clauses (a) through (h) of this
                     Section 3.2, but which are available to the general
                     employee population or available only to officers and
                     implemented with contracts with third parties, the benefit
                     plan descriptions covering all employees and the retirement
                     plan and SERP plan descriptions and contracts with third
                     parties covering officers in place at the time of the
                     Effective Date of Termination control Executive's treatment
                     under those plans and contracts. For any other benefits
                     only available to officers, if those benefits are not
                     expressly discussed in clauses (a) through (h) of this
                     Section 3.2, those benefits are terminated for Executive as
                     of the Effective Date of Termination.

ARTICLE 4.        OTHER TERMINATIONS

      4.1      TERMINATION FOR RETIREMENT. If the Executive's employment with
               the Employer is terminated by reason of his Retirement, the
               Executive's benefits shall be determined in accordance with the
               Employer's retirement and SERP plans, survivor's benefits,
               insurance, and other applicable programs then in effect.

      4.2      TERMINATION FOR CAUSE UNDER THIS AGREEMENT OR PURSUANT TO SECTION
               6 OF THE EMPLOYMENT AGREEMENT OR BY EMPLOYER OR THE EXECUTIVE FOR
               OTHER THAN GOOD REASON. If the Executive's employment is
               terminated either: (a) by the Employer for Cause as defined in
               Section 2.6 of this Agreement; or (b) under the circumstances
               specified in Section 6 of the Employment Agreement, the Employer
               shall pay the Executive the compensation provided in Section 7 of
               the Employment Agreement. The terms of the benefit plan
               descriptions, compensation plan descriptions and contracts with
               third parties covering officers shall control the disposition to
               Executive and timing of all other amounts to which the Executive
               may be entitled, and neither the Employer nor CMS Energy
               Corporation nor any of its Affiliates shall have any further
               obligations to the Executive thereunder as a result of the
               existence of this Agreement. No other severance benefits of any
               type shall be made available to Executive. Notwithstanding the
               above, if the Executive's employment terminates pursuant to this
               Section 4.2, the Executive shall be bound by the provisions
               contained in Article 5(a), 5(b), 5(c), 5(d), and 5(e) hereof.

      4.3      NOTICE OF TERMINATION. Any termination of the Executive's
               employment in accordance with Section 4.2 of this Agreement shall
               be communicated by Notice of Termination delivered to the other
               party, which shall include a specific date on which the
               termination has occurred and is effective.

ARTICLE 5.        NONCOMPETITION AND CONFIDENTIALITY

      During the term of this Agreement and also in the event the Executive
becomes entitled to receive Change-in-Control Severance Benefits as provided in
Section 3.2 herein, the following shall apply:

<PAGE>

              (a)    SECTION 8 OF THE EMPLOYMENT AGREEMENT.  All the provisions
                     of Section 8 of the Employment Agreement shall apply.

              (b)    CONFIDENTIALITY.  In addition to the confidentiality
                     provisions contained in Section 8(c) of the Employment
                     Agreement, the Employer has advised the Executive and the
                     Executive acknowledges that it is the policy of CMS Energy
                     Corporation and its Affiliates to maintain as secret and
                     confidential all Protected Information (as defined below),
                     and that Protected Information has been and will be
                     developed at substantial cost and effort to CMS Energy
                     Corporation and its Affiliates. The Executive shall not at
                     any time, directly or indirectly, divulge, furnish, or make
                     accessible to any person, firm, corporation, association,
                     or other entity (other than as may be required in the
                     regular course of the Executive's employment), nor use in
                     any manner, either during the term of employment or after
                     termination, for any reason, any Protected Information, or
                     cause any such information of CMS Energy Corporation and
                     its Affiliates to enter the public domain.

                     For purposes of this Agreement, "Protected Information"
                     means trade secrets, confidential and proprietary business
                     information of CMS Energy Corporation and its Affiliates
                     and any other information of CMS Energy Corporation and its
                     Affiliates, including, but not limited to, customer lists
                     (including potential customers), sources of supply,
                     processes, plans, materials, pricing information, internal
                     memoranda, marketing plans, internal policies, and products
                     and services which may be developed from time to time by
                     CMS Energy Corporation and its Affiliates and their agents
                     or employees, including the Executive; provided, however,
                     that information that is in the public domain (other than
                     as a result of a breach of this Agreement), approved for
                     release by CMS Energy Corporation or its Affiliates or
                     lawfully obtained from third parties who are not bound by a
                     confidentiality agreement with CMS Energy Corporation or
                     its Affiliates, is not Protected Information.
                     Notwithstanding the foregoing, nothing in this subsection
                     is to be construed as prohibiting Executive from freely
                     providing information to a state or federal agency,
                     legislative body or one of its committees or a court with
                     jurisdiction when Executive is requested or required to do
                     so by such entity.

              (c)    COOPERATION. Executive agrees to fully and unconditionally
                     cooperate with CMS Energy Corporation and its Affiliates
                     and their attorneys in connection with any and all
                     lawsuits, claims, investigations, or similar proceedings
                     that have been or could be asserted at any time arising out
                     of or related in any way to Executive's employment or
                     activities on behalf of CMS Energy Corporation and its
                     Affiliates.

              (d)    NONDISPARAGEMENT. At all times, the Executive agrees not
                     to disparage CMS Energy Corporation or its Affiliates or
                     otherwise make comments harmful to their reputations. While
                     receiving any payments pursuant to this Agreement or the
                     Employment Agreement, Executive further agrees not to
                     testify or act in any capacity as a paid or unpaid expert
                     witness, advisor or consultant on behalf of any person,
                     individual, partnership, firm, corporation or any other
                     person or entity that has or may have any claim, demand,
                     action, suit, cause of action, or

<PAGE>

                     judgment against CMS Energy Corporation or its Affiliates,
                     or from agreeing to do so after the payments under this
                     Agreement have ceased. Further, CMS Energy Corporation and
                     its Affiliates agree not to disparage Executive or
                     otherwise make comments harmful to Executive's reputation.
                     Notwithstanding the foregoing, nothing in this Section
                     prohibits Executive or representatives of CMS Energy
                     Corporation or its Affiliates from testifying truthfully
                     under oath in any judicial, administrative or legislative
                     proceedings or in any arbitration, mediation or other
                     similar proceedings.

ARTICLE 6. EXCISE TAX EQUALIZATION PAYMENT

      6.1    EXCISE TAX EQUALIZATION PAYMENT. In the event that the Executive
             becomes entitled to Severance Benefits or any other payment or
             benefit under this Agreement, or under the Employment Agreement, or
             under any other agreement, plan or arrangement for which Executive
             is eligible with (1) the Employer, (2) any Person whose actions
             result in a Change in Control, or (3) CMS Energy Corporation or any
             of its Affiliates (all of such payments and benefits collectively
             referred to as the "Total Payments"), and if all or any part of the
             Total Payments will be subject to the tax (the "Excise Tax")
             imposed by Sections 280G and 4999 of the Code (or any similar tax
             that may hereafter be imposed), the Employer shall pay to the
             Executive in cash an additional amount (the "Gross-Up Payment")
             such that the net amount retained by the Executive after deduction
             of any Excise Tax upon the Total Payments and any federal, state,
             and local income tax, penalties, interest, and Excise Tax upon the
             Gross-Up Payment provided for by this Section 6.1 (including FICA
             and FUTA), shall be equal to the Total Payments. Such payment shall
             be made by the Employer to the Executive within forty-five (45)
             calendar days following the Effective Date of Termination.

             For purposes of determining the amount of the Gross-Up Payment, the
             Executive shall be deemed to pay federal income taxes at the
             highest marginal rate of federal income taxation in the calendar
             year in which the Gross-Up Payment is to be made, and state and
             local income taxes at the highest marginal rate of taxation in the
             state and locality of the Executive's residence on the Effective
             Date of Termination, net of the maximum reduction in federal income
             taxes which could be obtained from deduction of such state and
             local taxes.

       6.2   SUBSEQUENT RECALCULATION. In the event the Internal Revenue
             Service adjusts the computation under Section 6.1 herein so that
             the Executive did not receive the greatest net benefit, the
             Employer shall reimburse the Executive for the full amount
             necessary to make the Executive whole, plus interest on the
             reimbursed amount at 120% of the rate provided in section
             1274(b)(2)(B) of the Code. In the event that the Excise Tax is
             finally determined to be less than the amount taken into account
             hereunder in calculating the Gross-Up Payment, the Executive shall
             repay the Employer within thirty (30) business days following the
             time that the amount of such reduction in the Excise Tax is finally
             determined, the portion of the Gross-Up Payment attributable to
             such reduction (plus that portion of the Gross-Up Payment
             attributable to the Excise Tax and federal, state and local income
             and employment taxes imposed on the Gross-Up Payment being repaid
             by the Executive) to the extent that such repayment

<PAGE>

             results in a reduction in the Excise Tax and a dollar-for-dollar
             reduction in the Executive's taxable income and wages for purposes
             of federal, state and local income and employment taxes, plus
             interest on the amount of such repayment at 120% of the rate
             provided in section 1274(b)(2)(B) of the Code.

ARTICLE 7. DISPUTE RESOLUTION AND NOTICE

     7.1     DISPUTE RESOLUTION. Any dispute or controversy between the parties
             arising under or in connection with this Agreement shall be settled
             by final and binding arbitration after first being submitted in
             writing to the Committee for attempted resolution. If that does not
             result in mutually agreeable resolution, the arbitration proceeding
             shall be conducted before a single arbitrator selected by the
             parties to be conducted in Jackson, Michigan. The arbitration will
             be conducted in accordance with the rules of the American
             Arbitration Association then in effect and be finished within
             ninety (90) days after the selection of the arbitrator. The
             arbitrator shall not have authority to fashion a remedy that
             includes consequential, exemplary or punitive damages of any type
             whatsoever, and the arbitrator is hereby prohibited from awarding
             injunctive relief of any kind, whether mandatory or prohibitory.
             Judgment may be entered on the award of the arbitrators in any
             court having competent jurisdiction. The parties shall share
             equally the cost of the arbitrator and of conducting the
             arbitration proceeding, but each party shall bear the cost of its
             own legal counsel and experts and other out-of-pocket expenditures.

      7.2    NOTICE. Any notices, requests, demands, or other communications
             provided for by this Agreement shall be in writing and sent by
             registered or certified mail to the Executive at the last address
             he or she has filed in writing with the Employer or, in the case of
             the Employer, at One Energy Plaza, Jackson, Michigan 49201,
             Attention: Corporate Secretary. Notices, requests, demands or other
             communications may also be delivered by messenger, courier service
             or other electronic means and are sufficient if actually received
             by the party for whom it is intended.

ARTICLE 8. SUCCESSORS AND ASSIGNMENT

       8.1   SUCCESSORS. Any successor (whether direct or indirect, by
             purchase, merger, reorganization, consolidation, acquisition of
             property or stock, liquidation, or otherwise) to the business of
             CMS Energy Corporation or purchaser of all or substantially all of
             the assets of CMS Energy Corporation shall be required to expressly
             assume and agree to perform under this Agreement in the same manner
             and to the same extent that the Employer would be required to
             perform if no such succession had taken place. Failure to obtain
             such assumption and agreement prior to the effectiveness of any
             such succession or asset sale shall entitle the Executive to the
             Change-in-Control Severance Benefits specified in Section 3.2 of
             this Agreement. The effective date of the succession or the sale
             shall be deemed the date of delivery to Executive of the Notice of
             Termination for purposes of administering Section 3.2. Regardless
             of whether such agreement is executed, this Agreement shall be
             binding

<PAGE>

             upon any successor in accordance with the operation of law.

      8.2    ASSIGNMENT BY THE EXECUTIVE. This Agreement shall inure to the
             benefit of and be enforceable by the Executive's personal or legal
             representatives, executors, administrators, successors, heirs,
             distributees, devisees, and legatees. If the Executive dies while
             any amount would still be payable to him or her hereunder had he or
             she continued to live, all such amounts, unless otherwise provided
             herein, shall be paid in accordance with the terms of this
             Agreement to the Executive's Beneficiary. If the Executive has not
             named a Beneficiary, then such amounts shall be paid to the
             Executive's devisee, legatee, or other designee, or if there is no
             such designee, to the Executive's estate.

ARTICLE 9. MISCELLANEOUS

      9.1    EMPLOYMENT STATUS. The employment of the Executive by the Employer
             is "at will" and may be terminated by either the Executive or the
             Employer at any time, subject to applicable law. Further, Executive
             has no right to be an officer of CMS Energy Corporation or any of
             its Affiliates and serves as an officer entirely at the discretion
             of the Board.

      9.2    ENTIRE AGREEMENT. This Agreement supersedes any prior agreements or
             understandings, oral or written, between the parties hereto, with
             respect to the subject matter hereof, and constitutes the entire
             agreement of the parties with respect thereto. Without limiting the
             generality of the foregoing sentence, and except for the Employment
             Agreement which remains in full force and effect unless expressly
             modified or amended herein, this Agreement completely supersedes,
             cancels, voids and renders of no further force and effect any and
             all other employment agreements, change in control agreements, and
             other similar agreements, communications, representations,
             promises, covenants and arrangements, whether oral or written,
             between the Employer and Executive and between the Executive and
             CMS Energy Corporation or any of its Affiliates that may have taken
             place or been executed prior to the Effective Date of this
             Agreement and which may address the subject matters contained
             herein. Executive expressly agrees that only the first two
             sentences of Section 9 of the Employment Agreement shall survive
             the execution of this Agreement and the balance of Section 9 after
             those first two sentences is superseded in its entirety by this
             Agreement and no longer has any legal force and effect whatsoever.
             Executive forever releases the Employer, CMS Energy Corporation,
             and its affiliates from the duty to comply with the superseded
             provisions of Section 9.

      9.3    SEVERABILITY. In the event that any provision or portion of this
             Agreement shall be determined to be invalid or unenforceable for
             any reason, the remaining provisions of this Agreement shall be
             unaffected thereby and shall remain in full force and effect.

      9.4    TAX WITHHOLDING. The Employer may withhold from any benefits
             payable under this Agreement any authorized deductions and all
             federal, state, city, or other taxes as may be required pursuant to
             any law or governmental regulation or ruling.

<PAGE>

      9.5    BENEFICIARIES. The Executive may designate one (1) or more persons
             or entities as the primary and/or contingent beneficiaries of any
             amounts to be received under this Agreement. Such designation must
             be in the form of a signed writing on a form provided by the
             Employer. The Executive may make or change such designation at any
             time.

      9.6    PAYMENT OBLIGATION ABSOLUTE. Except as provided in the last
             sentence of this paragraph, the Employer's and CMS Energy
             Corporation's obligations to make the payments and provide the
             benefits to Executive specified herein shall be absolute and
             unconditional, and shall not be affected by any circumstances,
             including, without limitation, any offset, counterclaim,
             recoupment, defense, or other right which the Employer, CMS Energy
             Corporation or any of its Affiliates may have against the Executive
             or anyone else. All amounts payable by the Employer hereunder shall
             be paid without notice or demand. Each and every payment made
             hereunder by the Employer shall be final, but subject to the
             provisions of the next sentence. If the Executive should seek to
             bypass arbitration and litigate about this Agreement or the subject
             matters addressed herein in a state or federal court, Executive
             agrees (i) at least 10 days prior to filing in court to tender back
             to the Employer all cash consideration paid to Executive under this
             Agreement and the Employment Agreement prior thereto and (ii) any
             payments due Executive under this Agreement and the Employment
             Agreement after said tender shall be suspended until said
             litigation is finally resolved.

             The Executive shall not be obligated to seek other employment in
             mitigation of the amounts payable or arrangements made under any
             provision of this Agreement, and the obtaining of any such other
             employment shall in no event effect any reduction of the Employer's
             obligations to make the payments and arrangements required to be
             made under this Agreement and the Employment Agreement.

      9.7    CONTRACTUAL RIGHTS TO BENEFITS. Subject to approval and
             ratification by the Committee, this Agreement establishes and vests
             in the Executive a contractual right to the benefits to which he or
             she is entitled hereunder. However, nothing herein contained shall
             require or be deemed to require, or prohibit or be deemed to
             prohibit, the Employer to segregate, earmark, or otherwise set
             aside any funds or other assets, in trust or otherwise, to provide
             for any payments to be made or required hereunder.

      9.8    MODIFICATION. This Agreement shall not be varied, altered,
             modified, canceled, changed, or in any way amended except by mutual
             agreement of the parties in a written instrument executed by the
             parties hereto or their legal representatives.

      9.9    COUNTERPARTS. This Agreement may be executed in one (1) or more
             counterparts, each of which shall be deemed to be an original, but
             all of which together will constitute one and the same Agreement.
             Signatures transmitted via facsimile shall be regarded by the
             parties as original signatures.

      9.10   APPLICABLE LAW. This Agreement shall be governed and construed in
             accordance with the laws of the State of Michigan, without regard
             to its conflicts of laws principles.

<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement as of
this________ day of _________, 2004.

                                    EXECUTIVE:

By: ___________________________     Signature:     ____________________________

Its:  _________________________     Printed Name:  ____________________________<PAGE>
                                                                   EXHIBIT 10.25

2004 EXECUTIVE COMPENSATION PLAN

Lokesh Seth
VP Product Development

Components of Compensation:
Base Salary
Cash Bonus Incentive
Stock Options
Severance Agreement

2004 Plan

<TABLE>
<S>                                                            <C>
New Base Salary:                                               $145,000
Target Cash Incentive:                                         $ 35,000
                                                               --------
Total Cash Compensation                                        $180,000

Current Equity (stock options held)                             200,000
Stock Options to be Granted in 2004*:                           350,000
</TABLE>

*Special vesting schedule 25% after 1 year, 50% after 2 years, 25% after 3 years

2004 Cash Incentive Model:
Paid annually
Key Metric: EBIDTA
Minimum threshold to begin earning some bonus $700,000
Bonus caps at 150% of your target incentive and $3,000,000 EBIDTA.

You will earn 2.283% of every dollar EBIDTA between $700,000 and capping at
$3,000,000. Your cash incentive caps at 150% of your target cash incentive
stated above. 75% of the total earned will be paid regardless. 25% of this total
will be awarded based on individual performance as determined by CEO/COO. Cash
incentive will be paid in Q1 2005 to employees who were employed through the end
of FY2004.

Stock Options:
As part of your long term compensation for ServiceWare, you will receive a new
grant of 350,000 options of ServiceWare stock that will vest over three years.
<PAGE>
Severance Agreement
As a valued and trusted member of the ServiceWare team, we would also like to
grant you the following benefits in the event of either termination not for
cause or in the event of a change of control of the company. You will be
eligible for four months severance (base salary plus regular company benefits)
in the event of a termination not for cause. Alternatively, if your termination
is a result of a change of control (due to merger or acquisition), you will be
eligible for six months severance (base salary plus regular company benefits).

In consideration for the foregoing severance agreement, and as a condition
precedent to the granting thereof, you must sign a current ServiceWare
Technologies, Inc. Confidentiality, Non-Competition and Assignment of Inventions
Agreement, in the form attached hereto, and have it in our files.

Please sign, make a copy for yourself and return to Human Resources.

Signature:
           ----------------------------------------------------

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