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EXHIBIT 4(a)

ONE HUNDRED SIXTH SUPPLEMENTAL INDENTURE

Providing among other things for

FIRST MORTGAGE BONDS,

2007-2 Collateral Series (Interest Bearing)

 

Dated as of November 30,2007

 

CONSUMERS ENERGY COMPANY

TO

THE BANK OF NEW YORK,

TRUSTEE

Counterpart 75 of 80

 

 

     THIS ONE HUNDRED SIXTH SUPPLEMENTAL INDENTURE, dated as of November 30, 2007 (herein
sometimes referred to as “this Supplemental Indenture”), made and entered into by and
between CONSUMERS ENERGY COMPANY, a corporation organized and existing under the laws of
the State of Michigan, with its principal executive office and place of business at One
Energy Plaza, in Jackson, Jackson County, Michigan 49201, formerly known as Consumers
Power Company (hereinafter sometimes referred to as the “Company”), and THE BANK OF NEW
YORK, a New York banking corporation, with its corporate trust offices at 101 Barclay
St., New York, New York 10286 (hereinafter sometimes referred to as the “Trustee”), as
Trustee under the Indenture dated as of September 1, 1945 between Consumers Power
Company, a Maine corporation (hereinafter sometimes referred to as the “Maine
corporation”), and City Bank Farmers Trust Company (Citibank, N.A., successor,
hereinafter sometimes referred to as the “Predecessor Trustee”), securing bonds issued
and to be issued as provided therein (hereinafter sometimes referred to as the
“Indenture”),

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

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

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

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

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

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

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

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

     WHEREAS, effective November 13, 2004, the name of JPMorgan Chase Bank was changed
to JPMorgan Chase Bank, N.A.; and

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     WHEREAS, effective October 2, 2006, The Bank of New York assumed the rights and
obligations of JPMorgan Chase Bank, N.A. under the Indenture; and

     WHEREAS the Indenture was executed and delivered for the purpose of securing such
bonds as may from time to time be issued under and in accordance with the terms of the
Indenture, the aggregate principal amount of bonds to be secured thereby being limited
to $5,000,000,000 at any one time outstanding (except as provided in Section 2.01 of the
Indenture), and the Indenture describes and sets forth the property conveyed thereby and
is filed in the Office of the Secretary of State of the State of Michigan and is of
record in the Office of the Register of Deeds of each county in the State of Michigan in
which this Supplemental Indenture is to be recorded; and

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

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

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

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

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

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

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

     WHEREAS, the Company has entered into a Letter of Credit Reimbursement Agreement
dated as of November 30, 2007 (as amended or otherwise modified from time to time, the
“Reimbursement Agreement”) with The Bank of Nova Scotia (the “Lender”) providing for the
making of certain financial accommodations thereunder, and pursuant to such
Reimbursement Agreement the Company has agreed to issue to the Lender, as evidence of
and security for the

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Liabilities (as such term is defined in the Reimbursement Agreement), a new series of
bonds under the Indenture; and

     WHEREAS, for such purposes the Company desires to issue a new series of bonds, to
be designated First Mortgage Bonds, 2007-2 Collateral Series (Interest Bearing), each of
which bonds shall also bear the descriptive title “First Mortgage Bond” (hereinafter
provided for and hereinafter sometimes referred to as the “2007-2 Collateral Bonds”),
the bonds of which series are to be issued as registered bonds without coupons and are
to bear interest at the rate per annum specified herein and are to mature on the
Termination Date (as such term is defined in the Reimbursement Agreement); and

     WHEREAS, each of the registered bonds without coupons of the 2007-2 Collateral
Bonds and the Trustee’s Authentication Certificate thereon are to be substantially in
the following form, to wit:

[FORM OF REGISTERED BOND

OF THE 2007-2 COLLATERAL BONDS]

[FACE]

CONSUMERS ENERGY COMPANY

FIRST MORTGAGE BOND

2007-2 COLLATERAL SERIES (INTEREST BEARING)

			
	No. 1
	 	$200,000,000

     CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called the “Company”),
for value received, hereby promises to pay to The Bank of Nova Scotia, as the lender (in
such capacity, the “Lender”) under the Letter of Credit Reimbursement Agreement dated as
of November 30, 2007 between the Company and the Lender (as amended or otherwise modified
from time to time, the “Reimbursement Agreement”), or registered assigns, the principal
sum of Two Hundred Million Dollars ($200,000,000) or such lesser principal amount as
shall be equal to the aggregate amount of obligations (the “Reimbursement Obligations”)
of the Company then outstanding under the Reimbursement Agreement to reimburse the Lender
for amounts paid by the Lender in respect of any one or more drawings under Letters of
Credit (as defined in the Reimbursement Agreement) included in the Liabilities (as
defined in the Reimbursement Agreement) outstanding on the Termination Date (as defined
in the Reimbursement Agreement) (the “Maturity Date”), but not in excess, however, of the
principal amount of this bond, and to pay interest thereon at the Interest Rate (as
defined below) until the principal hereof is paid or duly made available for payment on
the Maturity Date, or, in the event of redemption of this bond, until the redemption
date, or, in the event of default in the payment

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of the principal hereof, until the Company’s obligations with respect to the payment of
such principal shall be discharged as provided in the Indenture (as defined on the
reverse hereof). Interest on this bond shall be payable on each Interest Payment Date
(as defined below), commencing on the first Interest Payment Date next succeeding
November 30, 2007, If the Maturity Date falls on a day which is not a Business Day, as
defined below, principal and any interest and/or fees payable with respect to the
Maturity Date will be paid on the immediately preceding Business Day. The interest
payable, and punctually paid or duly provided for, on any Interest Payment Date will,
subject to certain exceptions, be paid to the person in whose name this bond (or one or
more predecessor bonds) is registered at the close of business on the Record Date (as
defined below); provided, however, that interest payable on the Maturity Date will be
payable to the person to whom the principal hereof shall be payable. Should the Company
default in the payment of interest (“Defaulted Interest”), the Defaulted Interest shall
be paid to the person in whose name this bond (or one or more predecessor bonds) is
registered on a subsequent record date fixed by the Company, which subsequent record
date shall be fifteen (15) days prior to the payment of such Defaulted Interest. As used
herein, (A) “Business Day” shall mean any day, other than a Saturday or Sunday, on which
banks generally are open in New York, New York for the conduct of substantially all of
their commercial lending activities and on which interbank wire transfers can be made on
the Fedwire system; (B) “Interest Payment Date” shall mean each date on which
Liabilities constituting interest and/or fees are due and payable from time to time
pursuant to the Reimbursement Agreement; (C) “Interest Rate” shall mean a rate of
interest per annum, adjusted as necessary, to result in an interest payment equal to the
aggregate amount of Liabilities constituting interest and fees due under the
Reimbursement Agreement on the applicable Interest Payment Date; and (D) “Record Date”
with respect to any Interest Payment Date shall mean the day (whether or not a Business
Day) immediately next preceding such Interest Payment Date.

     Payment of the principal of and interest on this bond will be made in immediately
available funds at the office or agency of the Company maintained for that purpose in the
City of Jackson, Michigan, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

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

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

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

	 	 	 	 	 	 
	SPECIMEN 	CONSUMERS ENERGY COMPANY

 
	 	Dated:  	 	 	 
	 	 	 	 	 	 
	 	By  	 	 
	 	 	Printed 	 	 
	 	 	Title 	 	 
	 	 	 	 	 
	 	 	Attest: 	 	 

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

	 	 	 	 	 
	SPECIMEN 	THE BANK OF NEW YORK, Trustee

 	 
	 	By  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

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[REVERSE]

CONSUMERS ENERGY COMPANY

FIRST MORTGAGE BOND

2007-2 COLLATERAL SERIES (INTEREST BEARING)

     This bond is one of the bonds of a series designated as First Mortgage Bonds, 2007-2
Collateral Series (Interest Bearing) (sometimes herein referred to as the “2007-2
Collateral Bonds”) issued under and in accordance with and secured by an Indenture dated
as of September 1, 1945, given by the Company (or its predecessor, Consumers Power
Company, a Maine corporation) to City Bank Fanners Trust Company (The Bank of New York,
successor) (hereinafter sometimes referred to as the “Trustee”), together with indentures
supplemental thereto, heretofore or hereafter executed, to which indenture and indentures
supplemental thereto (hereinafter referred to collectively as the “Indenture”) reference
is hereby made for a description of the property mortgaged and pledged, the nature and
extent of the security and the rights, duties and immunities thereunder of the Trustee
and the rights of the holders of said bonds and of the Trustee and of the Company in
respect of such security, and the limitations on such rights. By the terms of the
Indenture, the bonds to be secured thereby are issuable in series which may vary as to
date, amount, date of maturity, rate of interest and in other respects as provided in the
Indenture.

     The 2007-2 Collateral Bonds are to be issued and delivered to the Lender in order
to evidence and secure the obligation of the Company under the Reimbursement Agreement
to make payments to the Lender under the Reimbursement Agreement and to provide the
Lender the benefit of the lien of the Indenture with respect to the 2007-2 Collateral
Bonds.

     The obligation of the Company to make payments with respect to the principal of
2007-2 Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due Reimbursement Obligations included in the Liabilities shall have been fully or
partially paid. Satisfaction of any obligation to the extent that payment is made with
respect to the Reimbursement Obligations means that if any payment is made on the
Reimbursement Obligations, a corresponding payment obligation with respect to the
principal of the 2007-2 Collateral Bonds shall be deemed discharged in the same amount
as the payment with respect to the Reimbursement Obligations discharges the outstanding
obligation with respect to such Reimbursement Obligations. No such payment of principal
shall reduce the principal amount of the 2007-2 Collateral Bonds.

     The obligation of the Company to make payments with respect to the interest on
2007-2 Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due interest and/or fees under the Reimbursement Agreement shall have been fully or
partially paid. Satisfaction of any obligation to the extent that payment is made with
respect to the interest and/or fees under the Reimbursement Agreement means that if any
payment is made on the interest and/or fees under

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the Reimbursement Agreement, a corresponding payment obligation with respect to the
interest on the 2007-2 Collateral Bonds shall be deemed discharged in the same amount as
the payment with respect to the Reimbursement Obligations discharges the outstanding
obligation with respect to such Reimbursement Obligations.

     The Trustee may at any time and all times conclusively assume that the obligation
of the Company to make payments with respect to the principal of and interest on this
bond, so far as such payments at the time have become due, has been fully satisfied and
discharged unless and until the Trustee shall have received a written notice from the
Lender stating (i) that timely payment of principal and interest on the 2007-2
Collateral Bonds has not been made, (ii) that the Company is in arrears as to the
payments required to be made by it to the Lender in connection with the Liabilities
pursuant to the Reimbursement Agreement, and (iii) the amount of the arrearage.

     If a Default (as defined in the Reimbursement Agreement) with respect to the payment
of the principal of the Reimbursement Obligations shall have occurred, it shall be deemed
to be a default for purposes of Section 11.01 of the Indenture in the payment of the
principal of the 2007-2 Collateral Bonds equal to the amount of such unpaid Reimbursement
Obligations (but in no event in excess of the principal amount of the 2007-2 Collateral
Bonds). If a Default (as defined in the Reimbursement Agreement) with respect to the
payment of interest on the Reimbursement Obligations or any fees shall have occurred, it
shall be deemed to be a default for purposes of Section 11.01 of the Indenture in the
payment of the interest on the 2007-2 Collateral Bonds equal to the amount of such unpaid
interest or fees.

     This bond is not redeemable except upon written demand of the Lender following the
occurrence of a Default under the Reimbursement Agreement and the acceleration of the
Liabilities, as provided in Section 10.2 of the Reimbursement Agreement. This bond is
not redeemable by the operation of the improvement fund or the maintenance and
replacement provisions of the Indenture or with the proceeds of released property.

     In case of certain defaults as specified in the Indenture, the principal of this
bond may be declared or may become due and payable on the conditions, at the time, in
the manner and with the effect provided in the Indenture. The holders of certain
specified percentages of the bonds at the time outstanding, including in certain cases
specified percentages of bonds of particular series, may in certain cases, to the extent
and as provided in the Indenture, waive certain defaults thereunder and the consequences
of such defaults.

     The Indenture contains provisions permitting the Company and the Trustee, with the
consent of the holders of not less than seventy-five per centum in principal amount of
the bonds (exclusive of bonds disqualified by reason of the Company’s interest therein)
at the time outstanding, including, if more than one series of bonds shall be at the
time outstanding, not less than sixty per centum in principal amount of each series
affected, to effect, by an indenture supplemental to the Indenture, modifications or
alterations of the Indenture and of the rights and obligations of the Company and the
rights of the holders of the bonds and coupons; provided,

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however, that no such modification or alteration shall be made without the written
approval or consent of the holder hereof which will (a) extend the maturity of this bond
or reduce the rate or extend the time of payment of interest hereon or reduce the amount
of the principal hereof, or (b) permit the creation of any lien, not otherwise permitted,
prior to or on a parity with the lien of the Indenture, or (c) reduce the percentage of
the principal amount of the bonds the holders of which are required to approve any such
supplemental indenture.

     The Company reserves the right, without any consent, vote or other action by
holders of the 2007-2 Collateral Bonds or any other series created after the
Sixty-eighth Supplemental Indenture, to amend the Indenture to reduce the percentage of
the principal amount of bonds the holders of which are required to approve any
supplemental indenture (other than any supplemental indenture which is subject to the
proviso contained in the immediately preceding sentence) (a) from not less than
seventy-five per centum (including sixty per centum of each series affected) to not less
than a majority in principal amount of the bonds at the time outstanding or (b) in case
fewer than all series are affected, not less than a majority in principal amount of the
bonds of all affected series, voting together.

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

     This bond shall be exchangeable for other registered bonds of the same series, in
the manner and upon the conditions prescribed in the Indenture, upon the surrender of
such bonds at the Investor Services Department of the Company, as transfer agent.
However, notwithstanding the provisions of Section 2.05 of the Indenture, no charge shall
be made upon any registration of transfer or exchange of bonds of said series other than
for any tax or taxes or other governmental charge required to be paid by the Company.

     The Lender shall surrender this bond to the Trustee when all of the Reimbursement
Obligations and interest thereon arising under the Reimbursement Agreement, and all of
the fees payable pursuant to the Reimbursement Agreement with respect to the Liabilities
shall have been duly paid, and the Reimbursement Agreement shall have been terminated.

[END OF FORM OF REGISTERED BOND

OF THE 2007-2 COLLATERAL BONDS]

 

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     AND WHEREAS all acts and things necessary to make the 2007-2 Collateral Bonds (the
“Collateral Bonds”), when duly executed by the Company and authenticated by the Trustee
or its agent and issued as prescribed in the Indenture, as heretofore supplemented and
amended, and this Supplemental Indenture provided, the valid, binding and legal
obligations of the Company, and to constitute the Indenture, as supplemented and amended
as aforesaid, as well as by this Supplemental Indenture, a valid, binding and legal
instrument for the security thereof, have been done and performed, and the creation,
execution and delivery of this Supplemental Indenture and the creation, execution and
issuance of bonds subject to the terms hereof and of the Indenture, as so supplemented
and amended, have in all respects been duly authorized;

     NOW, THEREFORE, in consideration of the premises, of the acceptance and purchase by
the holders thereof of the bonds issued and to be issued under the Indenture, as
supplemented and amended as above set forth, and of the sum of One Dollar duly paid by
the Trustee to the Company, and of other good and valuable considerations, the receipt
whereof is hereby acknowledged, and for the purpose of securing the due and punctual
payment of the principal of and premium, if any, and interest on all bonds now
outstanding under the Indenture and the $200,000,000 principal amount of the Collateral
Bonds and all other bonds which shall be issued under the Indenture, as supplemented and
amended from time to time, and for the purpose of securing the faithful performance and
observance of all covenants and conditions therein, and in any indenture supplemental
thereto, set forth, the Company has given, granted, bargained, sold, released,
transferred, assigned, hypothecated, pledged, mortgaged, confirmed, set over, warranted,
alienated and conveyed and by these presents does give, grant, bargain, sell, release,
transfer, assign, hypothecate, pledge, mortgage, confirm, set over, warrant, alien and
convey unto The Bank of New York, as Trustee, as provided in the Indenture, and its
successor or successors in the trust thereby and hereby created and to its or their
assigns forever, all the right, title and interest of the Company in and to all the
property, described in Section 11 hereof, together (subject to the provisions of Article
X of the Indenture) with the tolls, rents, revenues, issues, earnings, income, products
and profits thereof, excepting, however, the property, interests and rights specifically
excepted from the lien of the Indenture as set forth in the Indenture.

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

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

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assigned, pledged or mortgaged, or intended so to be, unto the Trustee, its successor or
successors in trust and their assigns forever;

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

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

     SECTION 1. There is hereby created a series of bonds (the “2007-2 Collateral Bonds”)
designated as hereinabove provided, which shall also bear the descriptive title “First
Mortgage Bond”, and the forms thereof shall be substantially as hereinbefore set forth
(collectively, the “Sample Bond”). The 2007-2 Collateral Bonds shall be issued in the
aggregate principal amount of $200,000,000, shall mature on the Termination Date (as such
term is defined in the Reimbursement Agreement) and shall be issued only as registered
bonds without coupons in denominations of $1,000 and any multiple thereof. The serial
numbers of the Collateral Bonds shall be such as may be approved by any officer of the
Company, the execution thereof by any such officer either manually or by facsimile
signature to be conclusive evidence of such approval. The Collateral Bonds are to be
issued to and registered in the name of the Lender under the Reimbursement Agreement (as
such terms are defined in the Sample Bonds) to evidence and secure any and all
Liabilities (as such term is defined in the Reimbursement Agreement) of the Company under
the Reimbursement Agreement.

     The 2007-2 Collateral Bonds shall bear interest as set forth in the Sample Bond.
The principal of and the interest on said bonds shall be payable as set forth in the
Sample Bond.

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     The obligation of the Company to make payments with respect to the principal of
2007-2 Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due Reimbursement Obligations included in the Liabilities shall have been fully or
partially paid. Satisfaction of any obligation to the extent that payment is made with
respect to the Reimbursement Obligations means that if any payment is made on the
Reimbursement Obligations, a corresponding payment obligation with respect to the
principal of the 2007-2 Collateral Bonds shall be deemed discharged in the same amount
as the payment with respect to the Reimbursement Obligations discharges the outstanding
obligation with respect to such Reimbursement Obligations. No such payment of principal
shall reduce the principal amount of the 2007-2 Collateral Bonds.

     The obligation of the Company to make payments with respect to interest on 2007-2
Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due interest and/or fees under the Reimbursement Agreement shall have been fully or
partially paid. Satisfaction of any obligation to the extent that payment is made with
respect to the interest and/or fees under the Reimbursement Agreement means that if any
payment is made on the interest and/or fees under the Reimbursement Agreement, a
corresponding payment obligation with respect to the interest on the 2007-2 Collateral
Bonds shall be deemed discharged in the same amount as the payment with respect to the
interest and/or fees discharges the outstanding obligation with respect to such interest
and/or fees.

     The Trustee may at any time and all times conclusively assume that the obligation
of the Company to make payments with respect to the principal of and interest on the
Collateral Bonds, so far as such payments at the time have become due, has been fully
satisfied and discharged unless and until the Trustee shall have received a written
notice from the Lender stating (i) that timely payment of principal and interest on the
2007-2 Collateral Bonds has not been made, (ii) that the Company is in arrears as to the
payments required to be made by it to the Lender pursuant to the Reimbursement
Agreement, and (iii) the amount of the arrearage.

     The Collateral Bonds shall be exchangeable for other registered bonds of the same
series, in the manner and upon the conditions prescribed in the Indenture, upon the
surrender of such bonds at the Investor Services Department of the Company, as transfer
agent. However, notwithstanding the provisions of Section 2.05 of the Indenture, no
charge shall be made upon any registration of transfer or exchange of bonds of said
series other than for any tax or taxes or other governmental charge required to be paid
by the Company.

     SECTION 2. The Collateral Bonds are not redeemable by the operation of the
maintenance and replacement provisions of this Indenture or with the proceeds of
released property.

     SECTION 3. Upon the occurrence of a Default under the Reimbursement Agreement and
the acceleration of the Liabilities, the Collateral Bonds shall be redeemable in whole
upon receipt by the Trustee of a written demand from the Lender stating that there has
occurred under

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the Reimbursement Agreement both a Default and a declaration of acceleration of the
Liabilities and demanding redemption of the Collateral Bonds (including a description of
the amount of Reimbursement Obligations, interest and fees which comprise such
Liabilities). The Company waives any right it may have to prior notice of such redemption
under the Indenture. Upon surrender of the Collateral Bonds by the Lender to the Trustee,
the Collateral Bonds shall be redeemed at a redemption price equal to the aggregate
amount of the Liabilities.

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

     SECTION 17.02. With the consent of the holders of not less than
a majority in principal amount of the bonds at the time outstanding
or their attorneys-in-fact duly authorized, or, if fewer than all
series are affected, not less than a majority in principal amount of
the bonds at the time outstanding of each series the rights of the
holders of which are affected, voting together, the Company, when
authorized by a resolution, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or modifying the rights and
obligations of the Company and the rights of the holders of any of
the bonds and coupons; provided, however, that no such supplemental
indenture shall (1) extend the maturity of any of the bonds or
reduce the rate or extend the time of payment of interest thereon,
or reduce the amount of the principal thereof, or reduce any premium
payable on the redemption thereof, without the consent of the holder
of each bond so affected, or (2) permit the creation of any lien,
not otherwise permitted, prior to or on a parity with the lien of
this Indenture, without the consent of the holders of all the bonds
then outstanding, or (3) reduce the aforesaid percentage of the
principal amount of bonds the holders of which are required to
approve any such supplemental indenture, without the consent of the
holders of all the bonds then outstanding. For the purposes of this
Section, bonds shall be deemed to be affected by a supplemental
indenture if such supplemental indenture adversely affects or
diminishes the rights of holders thereof against the Company or
against its property. The Trustee may in its discretion determine
whether or not, in accordance with the foregoing, bonds of any
particular series would be affected by any supplemental indenture
and any such determination shall be conclusive upon the holders of
bonds of such series and all other series. Subject to the provisions
of Sections 16.02 and 16.03 hereof, the Trustee shall not be liable
for any determination made in good faith in connection herewith.

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

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

     The Company and the Trustee, if they so elect, and either before or after
such consent has been obtained, may require the holder of any bond consenting
to the execution of any such supplemental indenture to submit his bond to the
Trustee or to ask such bank, banker or trust company as may be designated by
the Trustee for the purpose, for the notation thereon of the fact that the
holder of such bond has consented to the execution of such supplemental
indenture, and in such case such notation, in form satisfactory to the Trustee,
shall be made upon all bonds so submitted, and such bonds bearing such notation
shall forthwith be returned to the persons entitled thereto.

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

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

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

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

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

     SECTION 9. In the event the date of any notice required or permitted hereunder
shall not be a Business Day, then (notwithstanding any other provision of the Indenture
or of any supplemental indenture thereto) such notice need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect as if
made on the date fixed for such notice. “Business Day” means, with respect to this
Section 9, any day, other than a Saturday or Sunday, on which banks generally are open
in New York, New York for the conduct of substantially all of their commercial lending
activities and on which interbank wire transfers can be made on the Fedwire system.

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

     SECTION 11. Detailed Description of Property Mortgaged:

I.

ELECTRIC GENERATING PLANTS AND DAMS

     All the electric generating plants and stations of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any supplement
thereto and not heretofore released from the lien of the Indenture, including all
powerhouses, buildings, reservoirs, dams, pipelines, flumes, structures and works and
the land on which the same are situated and all water rights and all other lands and
easements, rights of way, permits, privileges,

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towers, poles, wires, machinery, equipment, appliances, appurtenances and supplies and
all other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with such plants and stations or any of them, or
adjacent thereto.

II.

ELECTRIC TRANSMISSION LINES

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

III.

ELECTRIC DISTRIBUTION SYSTEMS

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

IV.

ELECTRIC SUBSTATIONS, SWITCHING STATIONS AND SITES

     All the substations, switching stations and sites of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any supplement
thereto and not heretofore released from the lien of the Indenture, for transforming,
regulating, converting or distributing or otherwise controlling electric current at any of
its plants and elsewhere, together

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with all buildings, transformers, wires, insulators and other appliances and equipment,
and all other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with any of such substations and switching stations,
or adjacent thereto, with sites to be used for such purposes.

V.

GAS COMPRESSOR STATIONS, GAS PROCESSING PLANTS, DESULPHURIZATION

STATIONS, METERING STATIONS, ODORIZING STATIONS, REGULATORS AND

SITES

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

VI.

GAS STORAGE FIELDS

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

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VII.

GAS TRANSMISSION LINES

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

VIII.

GAS DISTRIBUTION SYSTEMS

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

IX.

OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

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

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X.

TELEPHONE PROPERTIES AND

RADIO COMMUNICATION EQUIPMENT

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

XI.

OTHER REAL PROPERTY

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

ALCONA COUNTY

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

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

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said section, thence N 02 degrees 09’ 30” E along the said West 1/8
line of said section 660 feet, thence West 330 feet, thence S 02
degrees 09’ 30” W, 330 feet, thence East 264 feet, thence S 02 degrees
09’ 30” W, 330 feet to the place of beginning.

ALLEGAN COUNTY

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

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

ALPENA COUNTY

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

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

ANTRIM COUNTY

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

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

ARENAC COUNTY

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

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

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said section, 310.0 feet; thence S 88 degrees 26’ 00” W, 330.0 feet; thence
South parallel with the West line of said section, 260.0 feet; thence S 88
degrees 26’ 00” W, 330.0 feet to the West line of said section and the center
line of East City Limits Road; thence South along the said West line of said
section, 50.0 feet to the place of beginning.

BARRY COUNTY

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

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

BAY COUNTY

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

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

BENZIE COUNTY

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

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

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BRANCH COUNTY

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

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

CALHOUN COUNTY

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

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

CASS COUNTY

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

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

CHARLEVOIX COUNTY

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

     A parcel of land in the SW 1/4 of Section 29, T32N, R7W,
described as follows: Beginning at the Southwest corner of said
section and running thence North along the West line of said section
788.25 feet

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to a point which is 528 feet distant South of the South 1/8 line of said
section as measured along the said West line of said section; thence N 89
degrees 30’ 19” E, parallel with said South 1/8 line of said section 442.1
feet; thence South 788.15 feet to the South line of said section; thence S
89 degrees 29’ 30” W, along said South line of said section 442.1 feet to
the place of beginning.

CHEBOYGAN COUNTY

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

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

CLARE COUNTY

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

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

CLINTON COUNTY

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

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

CRAWFORD COUNTY

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

     A parcel of land in Section 1, T28N, R1W, described as: Commencing at
NW corner said section; thence South 89 degrees53’30” East along North
section line 105.78 feet to point of beginning; thence South 89
degrees53’30” East along North section line 649.64 feet; thence South 55
degrees 42’30” East 340.24 feet; thence South 55 degrees 44’

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37”“ East 5,061.81 feet to the East section line; thence South 00 degrees
00’ 08”“ West along East section line 441.59 feet; thence North 55 degrees
44’ 37” West 5,310.48 feet; thence North 55 degrees 42’30” West 877.76 feet
to point of beginning.

EATON COUNTY

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

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

EMMET COUNTY

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

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

GENESEE COUNTY

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

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

     Beginning at a point of the West line of Duffield Road, 100 feet wide,
(as now established) distant 829.46 feet measured N01 degrees 42’56”W and 50
feet measured S88 degrees l4’04”W from the South quarter corner, Section 8,
T5N, R5E; thence S88 degrees l4’04”W a distance of 550 feet; thence N01
degrees 42’56”W a distance of 500 feet to a point on the North line of the
South half of the Southwest quarter of said Section 8; thence N88 degrees
14’04”E along the North line of South half of the Southwest quarter of said
Section 8 a distance 550 feet to a point on the West line of Duffield Road,
100 feet wide (as now established); thence S01 degrees 42’56”E along the West
line of said Duffield Road a distance of 500 feet to the point of beginning.

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GLADWIN COUNTY

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

     The East 400 feet of the South 450 feet of Section 2, Tl9N, R1E.

GRAND TRAVERSE COUNTY

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

     A parcel of land in the Northwest 1/4 of Section 3, T25N, R11W,
described as follows: Commencing at the Northwest corner of said
section, running thence S 89 degreesl9’ 15” E along the North line
of said section and the center line of Clouss Road 225 feet, thence
South 400 feet, thence N 89 degreesl9’l5” W 225 feet to the West
line of said section and the center line of Hannah Road, thence
North along the West line of said section and the center line of
Hannah Road 400 feet to the place of beginning for this description.

GRATIOT COUNTY

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

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

HILLSDALE COUNTY

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

     Lot 238 of Assessors Plat of the Village of Litchfield.

HURON COUNTY

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

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

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INGHAM COUNTY

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

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

IONIA COUNTY

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

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

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

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IOSCO COUNTY

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

     A parcel of land in the NW 1/4 of Section 34, T21N, R7E, described as
follows: To find the place of beginning of this description commence at the N
1/4 post of said section; run thence South along the North and South 1/4 line
of said section, 1354.40 feet to the place of beginning of this description;
thence continuing South along the said North and South 1/4 line of said
section, 165.00 feet to a point on the said North and South 1/4 line of said
section which said point is 1089.00 feet distant North of the center of said
section; thence West 440.00 feet; thence North 165.00 feet; thence East
440.00 feet to the said North and South 1/4 line of said section and the
place of beginning.

ISABELLA COUNTY

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

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

JACKSON COUNTY

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

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

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KALAMAZOO COUNTY

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

     The South 350 feet of the NW 1/4 of the NW 1/4 of Section 16, T1S,
R12W, being more particularly described as follows: To find the place of
beginning of this description, commence at the Northwest corner of said
section; run thence S 00 degrees 36’ 55” W along the West line of said
section 971.02 feet to the place of beginning of this description; thence
continuing S 00 degrees 36’ 55” W along said West line of said section 350.18
feet to the North 1/8 line of said section; thence S 87 degrees 33’ 40” E
along the said North 1/8 line of said section 1325.1 feet to the West 1/8
line of said section; thence N 00 degrees 38’ 25” E along the said West 1/8
line of said section 350.17 feet; thence N 87 degrees 33’ 40” W, 1325.25 feet
to the place of beginning.

KALKASKA COUNTY

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

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

KENT COUNTY

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

     A parcel of land in the Northwest fractional 1/4 of Section 15, T5N,
R10W, described as follows: To find the place of beginning of this
description commence at the North 1/4 corner of said section, run thence S 0
degrees 59’ 26” E along the North and South 1/4 line of said section 2046.25
feet to the place of beginning of this description, thence continuing S 0
degrees 59’ 26” E along said North and South 1/4 line of said section 332.88
feet, thence S 88 degrees 58’ 30” W 2510.90 feet to a point herein designated
“Point A” on the East bank of the Thornapple River, thence continuing S 88
degrees 53’ 30” W to the center thread of the Thornapple River, thence NW’ly
along the center thread of said

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Thornapple River to a point which said point is S 88 degrees 58’ 30” W of a point on
the East bank of the Thornapple River herein designated “Point B”, said “Point B”
being N 23 degrees 41’ 35” W 360.75 feet from said above-described “Point A”, thence
N 88 degrees 58’ 30” E to said “Point B”, thence continuing N 88 degrees 58’ 30” E
2650.13 feet to the place of beginning. (Bearings are based on the East line of
Section 15, T5N, R10W between the East 1/4 corner of said section and the Northeast
corner of said section assumed as N 0 degrees 59’ 55” W.)

LAKE COUNTY

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

     A strip of land 50 feet wide East and West along and
adjoining the West line of highway on the East side of the North 1/2
of Section 13 T18N, R12W. Also a strip of land 100 feet wide East
and West along and adjoining the East line of the highway on the
West side of following described land: The South 1/2 of NW 1/4, and
the South 1/2 of the NW 1/4 of the SW 1/4, all in Section 6, T18N,
R11W.

LAPEER COUNTY

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

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

LEELANAU COUNTY

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

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

LENAWEE COUNTY

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

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

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the SE 1/4 of Section 12, running thence East 4 rods, thence South 6 rods,
thence West 4 rods, thence North 6 rods to the place of beginning.

LIVINGSTON COUNTY

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

          Parcel 1

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

          Parcel 2

     A parcel of land in the NW 1/4 of Section 31, T4N, R4E, described as
follows: To find the place of beginning of this description commence at the
N 1/4 post of said section; run thence N 89 degrees 13’ 06” W along the
North line of said section, 330 feet to the place of beginning of this
description; running thence S 00 degrees 52’ 49” W, 2167.87 feet; thence N
88 degrees 59’ 49” W, 60 feet; thence N 00 degrees 52’ 49” E, 2167.66 feet
to the North line of said section; thence S 89 degrees 13’ 06” E along said
North line of said section, 60 feet to the place of beginning.

MACOMB COUNTY

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

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

MANISTEE COUNTY

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

     A parcel of land in the SW 1/4 of Section 20, T22N, R16W, described as
follows: To find the place of beginning of this description, commence at
the Southwest corner of said section; run thence East along the South line
of said section 832.2 feet to the place of beginning of this

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description; thence continuing East along said South line of said section
132 feet; thence North 198 feet; thence West 132 feet; thence South 198
feet to the place of beginning, excepting therefrom the South 2 rods
thereof which was conveyed to Manistee Township for highway purposes by a
Quitclaim Deed dated June 13, 1919 and recorded July 11, 1919 in Liber 88
of Deeds on page 638 of Manistee County Records.

MASON COUNTY

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

          Parcel 1

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

     Parcel 2

     A parcel of land containing 4 acres of the West side of highway, said
parcel of land being described as commencing 16 rods South of the Northwest
corner of the NW 1/4 of the SW 1/4 of Section 22, T17N, R17W, running thence
South 64 rods, thence NE’ly and N’ly and NW’ly along the W’ly line of said
highway to the place of beginning, together with any and all right, title,
and interest of Howard C. Wicklund and Katherine E. Wicklund in and to that
portion of the hereinbefore mentioned highway lying adjacent to the E’ly
line of said above described land.

MECOSTA COUNTY

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

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

MIDLAND COUNTY

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

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

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MISSAUKEE COUNTY

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

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

MONROE COUNTY

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

     A parcel of land in the SW1/4 of Section 20, T8S, R6E, described
as follows: To find the place of beginning of this description
commence at the S 1/4 post of said section; run thence West along the
South line of said section 1269.89 feet to the place of beginning of
this description; thence continuing West along said South line of said
section 100 feet; thence N 00 degrees 50’ 35” E, 250 feet; thence East
100 feet; thence S 00 degrees 50’ 35” W parallel with and 16.5 feet
distant W’ly of as measured perpendicular to the West 1/8 line of said
section, as occupied, a distance of 250 feet to the place of
beginning.

MONTCALM COUNTY

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

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

MONTMORENCY COUNTY

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

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

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MUSKEGON COUNTY

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

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

NEWAYGO COUNTY

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

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

OAKLAND COUNTY

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

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

OCEANA COUNTY

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

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

OGEMAW COUNTY

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

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

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OSCEOLA COUNTY

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

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

OSCODA COUNTY

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

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

OTSEGO COUNTY

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

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

OTTAWA COUNTY

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

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

-34-

 

PRESQUE ISLE COUNTY

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

     Part of the South half of the Northeast quarter, Section 24,
T34N, R5E, and part of the Northwest quarter, Section 19, T34N, R6E,
more fully described as: Commencing at the East 1/4 corner of said
Section 24; thence N 00 degrees l5’47” E, 507.42 feet, along the East
line of said Section 24 to the point of beginning; thence S 88
degrees l5’36” W, 400.00 feet, parallel with the North 1/8 line of
said Section 24; thence N 00 degrees l5’47” E, 800.00 feet, parallel
with said East line of Section 24; thence N 88 degrees
l5’36”E,
800.00 feet, along said North 1/8 line of Section 24 and said line
extended; thence S 00 degrees 15’47” W, 800.00 feet, parallel with
said East line of Section 24; thence S 88 degrees l5’36” W, 400.00
feet, parallel with said North 1/8 line of Section 24 to the point
of beginning.

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

ROSCOMMON COUNTY

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

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

SAGINAW COUNTY

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

     A parcel of land in the SW 1/4 of Section 13, T9N, R1E,
described as follows: To find the place of beginning of this
description commence at the Southwest corner of said section; run
thence North along the West line

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of said section 1581.4 feet to the place of beginning of this
description; thence continuing North along said West line of said
section 230 feet to the center line of a creek; thence S 70 degrees
07’ 00” E along said center line of said creek 196.78 feet; thence
South 163.13 feet; thence West 185 feet to the West line of said
section and the place of beginning.

SANILAC COUNTY

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

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

SHIAWASSEE COUNTY

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

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

ST. CLAIR COUNTY

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

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

ST. JOSEPH COUNTY

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

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

TUSCOLA COUNTY

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

     A strip of land 280 feet wide across the East 96 rods of the
South 20 rods of the N 1/2 of the SE 1/4 of Section 34, T10N, R8E,
more particularly described as commencing at the Northeast corner of
Section 3, T9N, R8E, thence S 89 degrees 55’ 35” W along the South
line of said Section 34 a distance of 329.65 feet, thence N 18
degrees 11’ 50” W a distance of 1398.67 feet to the South 1/8 line
of said Section 34 and the place of beginning for this description;
thence continuing N 18 degrees

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11’ 50” W a distance of 349.91 feet; thence N 89 degrees 57’ 01” W a
distance of 294.80 feet; thence S 18 degrees 11’ 50” E a distance of
350.04 feet to the South 1/8 line of said Section 34; thence S 89 degrees
58’ 29” E along the South 1/8 line of said section a distance of 294.76 feet
to the place of beginning.

VAN BUREN COUNTY

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

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

WASHTENAW COUNTY

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

     A parcel of land in the NE 1/4 of the NW 1/4 of Section 1, T4S, R3E,
described as follows: To find the place of beginning of this description
commence at the Northwest corner of said section; run thence East along
the North line of said section 1355.07 feet to the West 1/8 line of said
section; thence S 00 degrees 22’ 20” E along said West 1/8 line of said
section 927.66 feet to the place of beginning of this description; thence
continuing S 00 degrees 22’ 20” E along said West 1/8 line of said
section 660 feet to the North 1/8 line of said section; thence N 86
degrees 36’ 57” E along said North 1/8 line of said section 660.91 feet;
thence N 00 degrees22’ 20” W, 660 feet; thence S 86 degrees 36’ 57” W,
660.91 feet to the place of beginning.

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WAYNE COUNTY

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

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

WEXFORD COUNTY

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

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

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

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

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	 	 	 	 	 	 	 	 	CONSUMERS ENERGY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(SEAL)	 	 	 	 	 	 	 	By	 	/s/ Laura L. Mountcastle
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 	 	 	 	Laura L. Mountcastle

Vice President and Treasurer	 	 
	/s/ Joyce H. Norkey	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Joyce H. Norkey

Assistant Secretary	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered

by CONSUMERS ENERGY COMPANY

in the presence of	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Kimberly C. Wilson	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Kimberly C. Wilson	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Sharon K. Davis	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Sharon K. Davis	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF MICHIGAN

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.
	COUNTY OF JACKSON

	 	 	)	 	 	 

          The foregoing instrument was acknowledged before me this 30th day of November,
2007, by Laura L. Mountcastle, Vice President and Treasurer of CONSUMERS ENERGY COMPANY, a
Michigan corporation, on behalf of the corporation.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	/s/ Margaret Hillman
	 	 	 	 	 	 	 	 	 	 	 	 	 
	[SEAL]	 	 	 	 	 	 	 	 	 	Margaret Hillman, Notary Public

State of Michigan, County of Jackson

My Commission Expires: 06/14/10

Acting in the County of Jackson	 	 

S-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	THE BANK OF NEW YORK, AS TRUSTEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(SEAL)	 	 	 	 	 	 	 	By	 	/s/ L. O’Brein
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 	 	 	 	L. O’Brein

Vice President	 	 
	/s/ Ignazio Tamburello	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Ignazio Tamburello
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered

by THE BANK OF NEW YORK

in the presence of	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Francine Kincaid	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Francine Kincaid	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Guy Marzella	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Guy Marzella	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.
	COUNTY OF NEW YORK

	 	 	)	 	 	 

          The foregoing instrument was acknowledged before me this 3rd day of December, 2007, by L.
O’Brien, a Vice President of THE BANK OF NEW YORK, a New York banking corporation, on behalf of
the bank, as trustee.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	/s/ Gerold Picard
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Gerold Picard, Notary Public
	[Seal]	 	 	 	 	 	 	 	 	 	New York County, New York

My Commission Expires:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	GEROLD PICARD

Notary Public, State of New York

No. 01P16128836

Qualified in Nassau County

Commission Expires June 20, 2009

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Prepared by:

Kimberly C. Wilson

One Energy Plaza

Jackson, MI 49201	 	 	 	 	 	When recorded, return to:

Consumers Energy Company

Business Services Real Estate Dept.

Attn: Tracy VanWoert EP7-438 

	 	 	 	 	 	 	 	 	 	 	One Energy Plaza

Jackson, MI 49201

S-2exv4wxby

 

EXHIBIT 4(b)

ONE HUNDRED FIFTH SUPPLEMENTAL INDENTURE

Providing among other things for

FIRST MORTGAGE BONDS,

2007-1 Collateral Series (Interest Bearing)

 

Dated as of March 30, 2007

 

CONSUMERS ENERGY COMPANY

TO

THE BANK OF NEW YORK,

TRUSTEE

Counterpart 77 of 80

 

 

     THIS ONE HUNDRED FIFTH SUPPLEMENTAL INDENTURE, dated as of March 30, 2007 (herein
sometimes referred to as “this Supplemental Indenture”), made and entered into by and
between CONSUMERS ENERGY COMPANY, a corporation organized and existing under the laws of
the State of Michigan, with its principal executive office and place of business at One
Energy Plaza, in Jackson, Jackson County, Michigan 49201, formerly known as Consumers
Power Company (hereinafter sometimes referred to as the “Company”), and THE BANK OF NEW
YORK, a New York banking corporation, with its corporate trust offices at 101 Barclay St.,
New York, New York 10286 (hereinafter sometimes referred to as the “Trustee”), as Trustee
under the Indenture dated as of September 1, 1945 between Consumers Power Company, a Maine
corporation (hereinafter sometimes referred to as the “Maine corporation”), and City Bank
Farmers Trust Company (Citibank, N.A., successor, hereinafter sometimes referred to as the
“Predecessor Trustee”), securing bonds issued and to be issued as provided therein
(hereinafter sometimes referred to as the “Indenture”),

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

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

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

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

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

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

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

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

     WHEREAS, effective November 13, 2004, the name of JPMorgan Chase Bank was changed to
JPMorgan Chase Bank, N.A.; and

     WHEREAS, effective October 2, 2006, The Bank of New York assumed the rights and
obligations of JPMorgan Chase Bank, N.A. under the Indenture; and

 

 

     WHEREAS the Indenture was executed and delivered for the purpose of securing such
bonds as may from time to time be issued under and in accordance with the terms of the
Indenture, the aggregate principal amount of bonds to be secured thereby being limited to
$5,000,000,000 at any one time outstanding (except as provided in Section 2.01 of the
Indenture), and the Indenture describes and sets forth the property conveyed thereby and
is filed in the Office of the Secretary of State of the State of Michigan and is of
record in the Office of the Register of Deeds of each county in the State of Michigan in
which this Supplemental Indenture is to be recorded; and

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

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

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

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

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

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

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

     WHEREAS, the Company has entered into a Fourth Amended and Restated Credit Agreement
dated as of March 30,2007 (as amended or otherwise modified from time to time, the “Credit
Agreement”) with various financial institutions and JPMorgan Chase Bank, N.A., as
administrative agent (in such capacity, the “Agent”) for the Banks (as such term is
defined in the Credit Agreement), providing for the making of certain financial
accommodations thereunder, and pursuant to such Credit Agreement the Company has agreed to
issue to the Agent, as evidence of and security for the Obligations (as such term is
defined in the Credit Agreement), a new series of bonds under the Indenture; and

2

 

     WHEREAS, for such purposes the Company desires to issue a new series of bonds, to be
designated First Mortgage Bonds, 2007-1 Collateral Series (Interest Bearing), each of
which bonds shall also bear the descriptive title “First Mortgage Bond” (hereinafter
provided for and hereinafter sometimes referred to as the “2007-1 Collateral Bonds”), the
bonds of which series are to be issued as registered bonds without coupons and are to bear
interest at the rate per annum specified herein and are to mature on the Termination Date
(as such term is defined in the Credit Agreement); and

     WHEREAS, each of the registered bonds without coupons of the 2007-1 Collateral Bonds
and the Trustee’s Authentication Certificate thereon are to be substantially in the
following form, to wit:

[FORM OF REGISTERED BOND

OF THE 2007-1 COLLATERAL BONDS]

[FACE]

CONSUMERS ENERGY COMPANY

FIRST MORTGAGE BOND

2007-1 COLLATERAL SERIES (INTEREST BEARING)

			
	 	 	 
	No. 1
	 	$500,000,000

     CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called the “Company”),
for value received, hereby promises to pay to JPMorgan Chase Bank, N.A., as
administrative agent (in such capacity, the “Agent”) for the Banks under and as defined
in the Fourth Amended and Restated Credit Agreement dated as of March 30, 2007 among the
Company, the Banks and the Agent (as amended or otherwise modified from time to time, the
“Credit Agreement”), or registered assigns, the principal sum of Five Hundred Million
Dollars ($500,000,000) or such lesser principal amount as shall be equal to the aggregate
principal amount of the Loans (as defined in the Credit Agreement) and Reimbursement
Obligations (as defined in the Credit Agreement) included in the Obligations (as defined
in the Credit Agreement) outstanding on the Termination Date (as defined in the Credit
Agreement) (the “Maturity Date”), but not in excess, however, of the principal amount of
this bond, and to pay interest thereon at the Interest Rate (as defined below) until the
principal hereof is paid or duly made available for payment on the Maturity Date, or, in
the event of redemption of this bond, until the redemption date, or, in the event of
default in the payment of the principal hereof, until the Company’s obligations with
respect to the payment of such principal shall be discharged as provided in the Indenture
(as defined on the reverse hereof). Interest on this bond shall be payable on each
Interest Payment Date (as defined below), commencing on the first Interest Payment Date
next succeeding March 30, 2007. If the Maturity Date falls on a day which is not a
Business Day, as defined below, principal and any interest and/or fees payable with
respect to the Maturity Date will be paid on the immediately preceding Business Day. The
interest payable, and punctually paid or duly provided for, on any Interest Payment Date
will, subject to certain exceptions, be paid to the person in whose name this bond (or
one or more predecessor

3

 

bonds) is registered at the close of business on the Record Date (as defined below);
provided, however, that interest payable on the Maturity Date will be payable to the person to
whom the principal hereof shall be payable. Should the Company default in the payment of interest
(“Defaulted Interest”), the Defaulted Interest shall be paid to the person in whose name this bond
(or one or more predecessor bonds) is registered on a subsequent record date fixed by the Company,
which subsequent record date shall be fifteen (15) days prior to the payment of such Defaulted
Interest. As used herein, (A) “Business Day” shall mean any day, other than a Saturday or Sunday,
on which banks generally are open in New York, New York for the conduct of substantially all of
their commercial lending activities and on which interbank wire transfers can be made on the
Fedwire system; (B) “Interest Payment Date” shall mean each date on which Obligations constituting
interest and/or fees are due and payable from time to time pursuant to the Credit Agreement; (C)
“Interest Rate” shall mean a rate of interest per annum, adjusted as necessary, to result in an
interest payment equal to the aggregate amount of Obligations constituting interest and fees due
under the Credit Agreement on the applicable Interest Payment Date; and (D) “Record Date” with
respect to any Interest Payment Date shall mean the day (whether or not a Business Day)
immediately next preceding such Interest Payment Date.

     Payment of the principal of and interest on this bond will be made in immediately available
funds at the office or agency of the Company maintained for that purpose in the City of Jackson,
Michigan, in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

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

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

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

Dated:

	 	 	 	 	 	 
	SPECIMEN	By 	 	 
	 	 	 	
Printed 
	 	 
	 	 	 	
Title 
	 	 

SPECIMEN

Attest: ___________________________

4

 

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

	 	 	 	 	 	 
	 	THE BANK OF NEW YORK Trustee
 

	SPECIMEN	By 	 	 
	 	 	 	
Authorized Officer 
	 

[REVERSE]

CONSUMERS ENERGY COMPANY

FIRST MORTGAGE BOND

2007-1 COLLATERAL SERIES (INTEREST BEARING)

     This bond is one of the bonds of a series designated as First Mortgage Bonds, 2007-1
Collateral Series (Interest Bearing) (sometimes herein referred to as the “2007-1 Collateral
Bonds”) issued under and in accordance with and secured by an Indenture dated as of September 1,
1945, given by the Company (or its predecessor, Consumers Power Company, a Maine corporation) to
City Bank Farmers Trust Company (The Bank of New York, successor) (hereinafter sometimes referred
to as the “Trustee”), together with indentures supplemental thereto, heretofore or hereafter
executed, to which indenture and indentures supplemental thereto (hereinafter referred to
collectively as the “Indenture”) reference is hereby made for a description of the property
mortgaged and pledged, the nature and extent of the security and the rights, duties and immunities
thereunder of the Trustee and the rights of the holders of said bonds and of the Trustee and of the
Company in respect of such security, and the limitations on such rights. By the terms of the
Indenture, the bonds to be secured thereby are issuable in series which may vary as to date,
amount, date of maturity, rate of interest and in other respects as provided in the Indenture.

     The 2007-1 Collateral Bonds are to be issued and delivered to the Agent in order to evidence
and secure the obligation of the Company under the Credit Agreement to make payments to the Banks
under the Credit Agreement and to provide the Banks the benefit of the lien of the Indenture with
respect to the 2007-1 Collateral Bonds.

     The obligation of the Company to make payments with respect to the principal of 2007-1
Collateral Bonds shall be fully or partially, as the case may be, satisfied and discharged to the
extent that, at the time that any such payment shall be due, the then due principal of the Loans
and/or the Reimbursement Obligations included in the Obligations shall have been fully or
partially paid. Satisfaction of any obligation to the extent that payment is made with respect to

5

 

the Loans and/or the Reimbursement Obligations means that if any payment is made on the
principal of the Loans and/or the Reimbursement Obligations, a corresponding payment
obligation with respect to the principal of the 2007-1 Collateral Bonds shall be deemed
discharged in the same amount as the payment with respect to the Loans and/or the
Reimbursement Obligations discharges the outstanding obligation with respect to such Loans
and/or Reimbursement Obligations. No such payment of principal shall reduce the principal
amount of the 2007-1 Collateral Bonds.

     The obligation of the Company to make payments with respect to the interest on
2007-1 Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due interest and/or fees under the Credit Agreement shall have been fully or partially
paid. Satisfaction of any obligation to the extent that payment is made with respect to
the interest and/or fees under the Credit Agreement means that if any payment is made on
the interest and/or fees under the Credit Agreement, a corresponding payment obligation
with respect to the interest on the 2007-1 Collateral Bonds shall be deemed discharged in
the same amount as the payment with respect to the Loans and/or the Reimbursement
Obligations discharges the outstanding obligation with respect to such Loans and/or
Reimbursement Obligations.

     The Trustee may at any time and all times conclusively assume that the obligation of
the Company to make payments with respect to the principal of and interest on this bond,
so far as such payments at the time have become due, has been fully satisfied and
discharged unless and until the Trustee shall have received a written notice from the
Agent stating (i) that timely payment of principal and interest on the 2007-1 Collateral
Bonds has not been made, (ii) that the Company is in arrears as to the payments required
to be made by it to the Agent in connection with the Obligations pursuant to the Credit
Agreement, and (iii) the amount of the arrearage.

     If an Event of Default (as defined in the Credit Agreement) with respect to the
payment of the principal of the Loans and/or the Reimbursement Obligations shall have
occurred, it shall be deemed to be a default for purposes of Section 11.01 of the
Indenture in the payment of the principal of the 2007-1 Collateral Bonds equal to the
amount of such unpaid principal or Reimbursement Obligations (but in no event in excess of
the principal amount of the 2007-1 Collateral Bonds). If an Event of Default (as defined
in the Credit Agreement) with respect to the payment of interest on the Loans and/or the
Reimbursement Obligations or any fees shall have occurred, it shall be deemed to be a
default for purposes of Section 11.01 of the Indenture in the payment of the interest on
the 2007-1 Collateral Bonds equal to the amount of such unpaid interest or fees.

     This bond is not redeemable except upon written demand of the Agent following the
occurrence of an Event of Default under the Credit Agreement and the acceleration of the
Obligations, as provided in Section 9.2 of the Credit Agreement. This bond is not
redeemable by the operation of the improvement fund or the maintenance and replacement
provisions of the Indenture or with the proceeds of released property.

     In case of certain defaults as specified in the Indenture, the principal of this bond
may be declared or may become due and payable on the conditions, at the time, in the
manner and with

6

 

the effect provided in the Indenture. The holders of certain specified percentages of the
bonds at the time outstanding, including in certain cases specified percentages of bonds
of particular series, may in certain cases, to the extent and as provided in the
Indenture, waive certain defaults thereunder and the consequences of such defaults.

     The Indenture contains provisions permitting the Company and the Trustee, with the
consent of the holders of not less than seventy-five per centum in principal amount of the
bonds (exclusive of bonds disqualified by reason of the Company’s interest therein) at the
time outstanding, including, if more than one series of bonds shall be at the time
outstanding, not less than sixty per centum in principal amount of each series affected,
to effect, by an indenture supplemental to the Indenture, modifications or alterations of
the Indenture and of the rights and obligations of the Company and the rights of the
holders of the bonds and coupons; provided, however, that no such modification or
alteration shall be made without the written approval or consent of the holder hereof
which will (a) extend the maturity of this bond or reduce the rate or extend the time of
payment of interest hereon or reduce the amount of the principal hereof, or (b) permit the
creation of any lien, not otherwise permitted, prior to or on a parity with the lien of
the Indenture, or (c) reduce the percentage of the principal amount of the bonds the
holders of which are required to approve any such supplemental indenture.

     The Company reserves the right, without any consent, vote or other action by holders
of the 2007-1 Collateral Bonds or any other series created after the Sixty-eighth
Supplemental Indenture, to amend the Indenture to reduce the percentage of the principal
amount of bonds the holders of which are required to approve any supplemental indenture
(other than any supplemental indenture which is subject to the proviso contained in the
immediately preceding sentence) (a) from not less than seventy-five per centum (including
sixty per centum of each series affected) to not less than a majority in principal amount
of the bonds at the time outstanding or (b) in case fewer than all series are affected,
not less than a majority in principal amount of the bonds of all affected series, voting
together.

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

     This bond shall be exchangeable for other registered bonds of the same series, in the
manner and upon the conditions prescribed in the Indenture, upon the surrender of such
bonds at the Investor Services Department of the Company, as transfer agent. However,
notwithstanding the provisions of Section 2.05 of the Indenture, no charge shall be made
upon any registration of transfer or exchange of bonds of said series other than for any
tax or taxes or other governmental charge required to be paid by the Company.

7

 

     The Agent shall surrender this bond to the Trustee when all of the principal of and
interest on the Loans and Reimbursement Obligations arising under the Credit Agreement,
and all of the fees payable pursuant to the Credit Agreement with respect to the
Obligations shall have been duly paid, and the Credit Agreement shall have been
terminated.

[END OF FORM OF REGISTERED BOND

OF THE 2007-1 COLLATERAL BONDS]

 

     AND WHEREAS all acts and things necessary to make the 2007-1 Collateral Bonds (the
“Collateral Bonds”), when duly executed by the Company and authenticated by the Trustee
or its agent and issued as prescribed in the Indenture, as heretofore supplemented and
amended, and this Supplemental Indenture provided, the valid, binding and legal
obligations of the Company, and to constitute the Indenture, as supplemented and amended
as aforesaid, as well as by this Supplemental Indenture, a valid, binding and legal
instrument for the security thereof, have been done and performed, and the creation,
execution and delivery of this Supplemental Indenture and the creation, execution and
issuance of bonds subject to the terms hereof and of the Indenture, as so supplemented
and amended, have in all respects been duly authorized;

     NOW, THEREFORE, in consideration of the premises, of the acceptance and purchase by
the holders thereof of the bonds issued and to be issued under the Indenture, as
supplemented and amended as above set forth, and of the sum of One Dollar duly paid by the
Trustee to the Company, and of other good and valuable considerations, the receipt whereof
is hereby acknowledged, and for the purpose of securing the due and punctual payment of
the principal of and premium, if any, and interest on all bonds now outstanding under the
Indenture and the $500,000,000 principal amount of the Collateral Bonds and all other
bonds which shall be issued under the Indenture, as supplemented and amended from time to
time, and for the purpose of securing the faithful performance and observance of all
covenants and conditions therein, and in any indenture supplemental thereto, set forth,
the Company has given, granted, bargained, sold, released, transferred, assigned,
hypothecated, pledged, mortgaged, confirmed, set over, warranted, alienated and conveyed
and by these presents does give, grant, bargain, sell, release, transfer, assign,
hypothecate, pledge, mortgage, confirm, set over, warrant, alien and convey unto The Bank
of New York, as Trustee, as provided in the Indenture, and its successor or successors in
the trust thereby and hereby created and to its or their assigns forever, all the right,
title and interest of the Company in and to all the property, described in Section 11
hereof, together (subject to the provisions of Article X of the Indenture) with the tolls,
rents, revenues, issues, earnings, income, products and profits thereof, excepting,
however, the property, interests and rights specifically excepted from the lien of the
Indenture as set forth in the Indenture.

     TOGETHER WITH all and singular the tenements, hereditaments and appurtenances
belonging or in any wise appertaining to the premises, property, franchises and rights,
or any thereof, referred to in the foregoing granting clause, with the reversion and
reversions, remainder and remainders and (subject to the provisions of Article X of the
Indenture) the tolls, rents, revenues, issues, earnings, income, products and profits
thereof, and all the estate, right, title and

8

 

interest and claim whatsoever, at law as well as in equity, which the Company now has or
may hereafter acquire in and to the aforesaid premises, property, franchises and rights
and every part and parcel thereof.

     SUBJECT, HOWEVER, with respect to such premises, property, franchises and rights, to
excepted encumbrances as said term is defined in Section 1.02 of the Indenture, and
subject also to all defects and limitations of title and to all encumbrances existing at
the time of acquisition. TO HAVE AND TO HOLD all said premises, property, franchises and
rights hereby conveyed, assigned, pledged or mortgaged, or intended so to be, unto the
Trustee, its successor or successors in trust and their assigns forever;

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

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

     SECTION 1. There is hereby created a series of bonds (the “2007-1 Collateral Bonds”)
designated as hereinabove provided, which shall also bear the descriptive title “First
Mortgage Bond”, and the forms thereof shall be substantially as hereinbefore set forth
(collectively, the “Sample Bond”). The 2007-1 Collateral Bonds shall be issued in the
aggregate principal amount of $500,000,000, shall mature on the Termination Date (as such
term is defined in the Credit Agreement) and shall be issued only as registered bonds
without coupons in denominations of $1,000 and any multiple thereof. The serial numbers of
the Collateral Bonds shall be such as may be approved by any officer of the Company, the
execution thereof by any such officer either manually or by facsimile signature to be
conclusive evidence of such approval. The Collateral Bonds are to be issued to and
registered in the name of the Agent under the Credit Agreement (as

9

 

such terms are defined in the Sample Bonds) to evidence and secure any and all Obligations
(as such term is defined in the Credit Agreement) of the Company under the Credit
Agreement.

     The 2007-1 Collateral Bonds shall bear interest as set forth in the Sample Bond. The
principal of and the interest on said bonds shall be payable as set forth in the Sample
Bond.

     The obligation of the Company to make payments with respect to the principal of
2007-1 Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due principal of the Loans and/or the Reimbursement Obligations included in the
Obligations shall have been fully or partially paid. Satisfaction of any obligation to the
extent that payment is made with respect to the Loans and/or the Reimbursement Obligations
means that if any payment is made on the principal of the Loans and/or the Reimbursement
Obligations, a corresponding payment obligation with respect to the principal of the
2007-1 Collateral Bonds shall be deemed discharged in the same amount as the payment with
respect to the Loans and/or the Reimbursement Obligations discharges the outstanding
obligation with respect to such Loans and/or Reimbursement Obligations. No such payment of
principal shall reduce the principal amount of the 2007-1 Collateral Bonds.

     The obligation of the Company to make payments with respect to interest on 2007-1
Collateral Bonds shall be fully or partially, as the case may be, satisfied and
discharged to the extent that, at the time that any such payment shall be due, the then
due interest and/or fees under the Credit Agreement shall have been fully or partially
paid. Satisfaction of any obligation to the extent that payment is made with respect to
the interest and/or fees under the Credit Agreement means that if any payment is made on
the interest and/or fees under the Credit Agreement, a corresponding payment obligation
with respect to the interest on the 2007-1 Collateral Bonds shall be deemed discharged in
the same amount as the payment with respect to the interest and/or fees discharges the
outstanding obligation with respect to such interest and/or fees.

     The Trustee may at any time and all times conclusively assume that the obligation of
the Company to make payments with respect to the principal of and interest on the
Collateral Bonds, so far as such payments at the time have become due, has been fully
satisfied and discharged unless and until the Trustee shall have received a written
notice from the Agent stating (i) that timely payment of principal and interest on the
2007-1 Collateral Bonds has not been made, (ii) that the Company is in arrears as to the
payments required to be made by it to the Agent pursuant to the Credit Agreement, and
(iii) the amount of the arrearage.

     The Collateral Bonds shall be exchangeable for other registered bonds of the same
series, in the manner and upon the conditions prescribed in the Indenture, upon the
surrender of such bonds at the Investor Services Department of the Company, as transfer
agent. However, notwithstanding the provisions of Section 2.05 of the Indenture, no
charge shall be made upon any registration of transfer or exchange of bonds of said
series other than for any tax or taxes or other governmental charge required to be paid
by the Company.

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     SECTION 2. The Collateral Bonds are not redeemable by the operation of the
maintenance and replacement provisions of this Indenture or with the proceeds of
released property.

     SECTION 3. Upon the occurrence of an Event of Default under the Credit Agreement and
the acceleration of the Obligations, the Collateral Bonds shall be redeemable in whole
upon receipt by the Trustee of a written demand from the Agent stating that there has
occurred under the Credit Agreement both an Event of Default and a declaration of
acceleration of the Obligations and demanding redemption of the Collateral Bonds
(including a description of the amount of principal, interest and fees which comprise such
Obligations). The Company waives any right it may have to prior notice of such redemption
under the Indenture. Upon surrender of the Collateral Bonds by the Agent to the Trustee,
the Collateral Bonds shall be redeemed at a redemption price equal to the aggregate amount
of the Obligations.

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

     SECTION 17.02. With the consent of the holders of not less than
a majority in principal amount of the bonds at the time outstanding
or their attorneys-in-fact duly authorized, or, if fewer than all
series are affected, not less than a majority in principal amount of
the bonds at the time outstanding of each series the rights of the
holders of which are affected, voting together, the Company, when
authorized by a resolution, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or modifying the rights and
obligations of the Company and the rights of the holders of any of
the bonds and coupons; provided, however, that no such supplemental
indenture shall (1) extend the maturity of any of the bonds or
reduce the rate or extend the time of payment of interest thereon,
or reduce the amount of the principal thereof, or reduce any premium
payable on the redemption thereof, without the consent of the holder
of each bond so affected, or (2) permit the creation of any lien,
not otherwise permitted, prior to or on a parity with the lien of
this Indenture, without the consent of the holders of all the bonds
then outstanding, or (3) reduce the aforesaid percentage of the
principal amount of bonds the holders of which are required to
approve any such supplemental indenture, without the consent of the
holders of all the bonds then outstanding. For the purposes of this
Section, bonds shall be deemed to be affected by a supplemental
indenture if such supplemental indenture adversely affects or
diminishes the rights of holders thereof against the Company or
against its property. The Trustee may in its discretion determine
whether or not, in accordance with the foregoing, bonds of any
particular series would be affected by any

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supplemental indenture and any such determination shall be conclusive upon the
holders of bonds of such series and all other series. Subject to the provisions
of Sections 16.02 and 16.03 hereof, the Trustee shall not be liable for any
determination made in good faith in connection herewith.

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

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

     The Company and the Trustee, if they so elect, and either before or after
such consent has been obtained, may require the holder of any bond consenting to
the execution of any such supplemental indenture to submit his bond to the
Trustee or to ask such bank, banker or trust company as may be designated by the
Trustee for the purpose, for the notation thereon of the fact that the holder of
such bond has consented to the execution of such supplemental indenture, and in
such case such notation, in form satisfactory to the Trustee, shall be made upon
all bonds so submitted, and such bonds bearing such notation shall forthwith be
returned to the persons entitled thereto.

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

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

     SECTION 6. Nothing contained in this Supplemental Indenture shall, or shall be
construed to, confer upon any person other than a holder of bonds issued under the
Indenture, as supplemented and amended as above set forth, the Company, the Trustee and
the Agent, for the benefit of the Banks (as such term is defined in the Credit
Agreement), any right or interest to avail himself of any benefit under any provision of
the Indenture, as so supplemented and amended.

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

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

     SECTION 9. In the event the date of any notice required or permitted hereunder shall
not be a Business Day, then (notwithstanding any other provision of the Indenture or of
any supplemental indenture thereto) such notice need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if made on the
date fixed for such notice. “Business Day” means, with respect to this Section 9, any
day, other than a Saturday or Sunday, on which banks generally are open in New York, New
York for the conduct of substantially all of their commercial lending activities and on
which interbank wire transfers can be made on the Fedwire system.

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

     SECTION 11. Detailed Description of Property Mortgaged:

I.

ELECTRIC GENERATING PLANTS AND DAMS

     All the electric generating plants and stations of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any supplement
thereto and not heretofore released from the lien of the Indenture, including all
powerhouses, buildings, reservoirs, dams, pipelines, flumes, structures and works and the
land on which the same are situated and all water rights and all other lands and
easements, rights of way, permits, privileges, towers, poles, wires, machinery,
equipment, appliances, appurtenances and supplies and all other

13

 

property, real or personal, forming a part of or appertaining to or used, occupied or
enjoyed in connection with such plants and stations or any of them, or adjacent thereto.

II.

ELECTRIC TRANSMISSION LINES

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

III.

ELECTRIC DISTRIBUTION SYSTEMS

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

IV.

ELECTRIC SUBSTATIONS, SWITCHING STATIONS AND SITES

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

14

 

in connection with any of such substations and switching stations, or adjacent thereto,
with sites to be used for such purposes.

V.

GAS COMPRESSOR
STATIONS, GAS PROCESSING PLANTS, DESULPHURIZATION STATIONS,

METERING STATIONS, ODORIZING STATIONS, REGULATORS AND

SITES

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

VI.

GAS STORAGE FIELDS

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

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VII.

GAS TRANSMISSION LINES

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

VIII.

GAS DISTRIBUTION SYSTEMS

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

IX.

OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

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

X.

TELEPHONE PROPERTIES AND
 RADIO
COMMUNICATION EQUIPMENT

     All telephone lines, switchboards, systems and equipment of the Company, constructed
or otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture, used or
available for use in the

16

 

operation of its properties, and all other property, real or personal, forming a part of
or appertaining to or used, occupied or enjoyed in connection with such telephone
properties or any of them or adjacent thereto; together with all real estate, rights of
way, easements, permits, privileges, franchises, property, devices or rights related to
the dispatch, transmission, reception or reproduction of messages, communications,
intelligence, signals, light, vision or sound by electricity, wire or otherwise,
including all telephone equipment installed in buildings used as general and regional
offices, substations and generating stations and all telephone lines erected on towers
and poles; and all radio communication equipment of the Company, together with all
property, real or personal (except any in the Indenture expressly excepted), fixed
stations, towers, auxiliary radio buildings and equipment, and all appurtenances used in
connection therewith, wherever located, in the State of Michigan.

XI.

OTHER REAL PROPERTY

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

ALCONA COUNTY

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

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

ALLEGAN COUNTY

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

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

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ALPENA COUNTY

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

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

ANTRIM COUNTY

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

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

ARENAC COUNTY

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

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

BARRY COUNTY

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

     A strip of land
311 feet in width across the SW 1/4 of the NE 1/4 of Section
31, TIN, R8W, described as follows: To find the place of beginning of this
description, commence at the E 1/4 post of said section; run thence N 00 degrees
55’ 00” E along the East line of said section, 555.84 feet; thence N 59

18

 

degrees 36’ 20” W, 1375.64 feet; thence N 88 degrees 30’ 00” W, 130 feet to a
point on the East 1/8 line of said section and the place of beginning of this
description; thence continuing N 88 degrees 30’ 00” W, 1327.46 feet to the North
and South 1/4 line of said section; thence S 00 degrees 39’35” W along said North
and South 1/4 line of said section, 311.03 feet to a point, which said point is
952.72 feet distant N’ly from the East and West 1/4 line of said section as
measured along said North and South 1/4 line of said section; thence S 88 degrees
30’ 00” E, 1326.76 feet to the East 1/8 line of said section; thence N 00 degrees
47’ 20” E along said East 1/8 line of said section, 311.02 feet to the place of
beginning.

BAY COUNTY

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

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

BENZIE COUNTY

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

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

BRANCH COUNTY

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

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

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CALHOUN COUNTY

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

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

CASS COUNTY

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

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

CHARLEVOIX COUNTY

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

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

CHEBOYGAN COUNTY

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

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

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CLARE COUNTY

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

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

CLINTON COUNTY

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

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

CRAWFORD COUNTY

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

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

EATON COUNTY

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

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

EMMET COUNTY

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

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

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GENESEE COUNTY

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

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

     Beginning at a point of the West line of Duffield Road, 100 feet wide, (as
now established) distant 829.46 feet measured N01 degrees 42’ 56” W and 50 feet
measured S88 degrees l4’ 04” W from the South quarter corner, Section 8, T5N,
R5E; thence S88 degrees l4’ 04” W a distance of 550 feet; thence N01 degrees 42’
56” W a distance of 500 feet to a point on the North line of the South half of the
Southwest quarter of said Section 8; thence N88 degrees l4’ 04” E along the North
line of South half of the Southwest quarter of said Section 8 a distance 550 feet
to a point on the West line of Duffield Road, 100 feet wide (as now established);
thence S01 degrees 42’ 56” E along the West line of said Duffield Road a distance
of 500 feet to the point of beginning.

GLADWIN COUNTY

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

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

GRAND TRAVERSE COUNTY

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

     A parcel of land in the Northwest 1/4 of Section 3, T25N, R11W, described as
follows: Commencing at the Northwest corner of said section, running thence S 89
degrees l9’ 15” E along the North line of said section and the center line of
Clouss Road 225 feet, thence South 400 feet, thence N 89 degrees l9’ 15” W 225
feet to the West line of said section and the center line of Hannah Road, thence
North along the West line of said section and the center line of Hannah Road 400
feet to the place of beginning for this description.

GRATIOT COUNTY

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

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

22

 

HILLSDALE COUNTY

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

     Lot 238 of
Assessors Plat of the Village of Litchfield.

HURON
COUNTY

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

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

INGHAM COUNTY

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

     A parcel of land 660 feet wide in the Southwest 1/4 of Section 7 lying
South of the centerline of Sitts Road as extended to the North-South 1/4
line of said Section 7, T2N, RlW, more particularly described as follows:
Commence at the Southwest corner of said Section 7, thence North along the
West line of said Section 2502.71 feet to the centerline of Sitts Road;
thence South 89 degrees 54’ 45” East along said centerline 2282.38 feet to
the place of beginning of this description; thence continuing South 89
degrees 54’ 45” East along said centerline and said centerline extended
660.00 feet to the North-South 1/4 line of said section; thence South 00
degrees 07’ 20” West 1461.71 feet; thence North 89 degrees 34’ 58” West
660.00 feet; thence North 00 degrees 07’ 20” East 1457.91 feet to the
centerline of Sitts Road and the place of beginning.

IONIA COUNTY

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

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

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

23

 

of Section 15, T5N, R6W, from the E 1/4 corner of said section to the Northeast
corner of said section assumed as N 00 degrees 05’ 38” W.)

IOSCO COUNTY

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

     A parcel of land in the NW 1/4 of Section 34, T21N, R7E, described as
follows: To find the place of beginning of this description commence at the N 1/4
post of said section; run thence South along the North and South 1/4 line of said
section, 1354.40 feet to the place of beginning of this description; thence
continuing South along the said North and South 1/4 line of said section, 165.00
feet to a point on the said North and South 1/4 line of said section which said
point is 1089.00 feet distant North of the center of said section; thence West
440.00 feet; thence North 165.00 feet; thence East 440.00 feet to the said North
and South 1/4 line of said section and the place of beginning.

ISABELLA COUNTY

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

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

JACKSON COUNTY

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

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

24

 

KALAMAZOO COUNTY

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

     The South 350 feet of the NW 1/4 of the NW 1/4 of Section 16, T1S, R12W,
being more particularly described as follows: To find the place of beginning of
this description, commence at the Northwest corner of said section; run thence S
00 degrees 36’ 55” W along the West line of said section 971.02 feet to the place
of beginning of this description; thence continuing S 00 degrees 36’ 55” W along
said West line of said section 350.18 feet to the North 1/8 line of said section;
thence S 87 degrees 33’ 40” E along the said North 1/8 line of said section 1325.1
feet to the West 1/8 line of said section; thence N 00 degrees 38’ 25” E along the
said West 1/8 line of said section 350.17 feet; thence N 87 degrees 33’ 40” W,
1325.25 feet to the place of beginning.

KALKASKA COUNTY

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

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

KENT COUNTY

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

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

25

 

Section 15, T5N, R10W between the East 1/4 corner of said section and the Northeast corner
of said section assumed as N 0 degrees 59’ 55” W.)

LAKE COUNTY

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

     A strip of land 50 feet wide East and West along and adjoining the West line of
highway on the East side of the North 1/2 of Section 13 T18N, R12W. Also a strip of land
100 feet wide East and West along and adjoining the East line of the highway on the West
side of following described land: The South 1/2 of NW 1/4, and the South 1/2 of the NW 1/4
of the SW 1/4, all in Section 6, T18N, R11W.

LAPEER COUNTY

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

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

LEELANAU COUNTY

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

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

LENAWEE COUNTY

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

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

26

 

LIVINGSTON COUNTY

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

     Parcel 1

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

     Parcel 2

     A parcel of land in the NW 1/4 of Section 31, T4N, R4E, described as follows:
To find the place of beginning of this description commence at the N 1/4 post of
said section; run thence N 89 degrees 13’ 06” W along the North line of said
section, 330 feet to the place of beginning of this description; running thence S
00 degrees 52’ 49” W, 2167.87 feet; thence N 88 degrees 59’ 49” W, 60 feet; thence
N 00 degrees 52’ 49” E, 2167.66 feet to the North line of said section; thence S
89 degrees 13’ 06” E along said North line of said section, 60 feet to the place
of beginning.

MACOMB COUNTY

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

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

MANISTEE COUNTY

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

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

27

 

MASON COUNTY

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

Parcel 1

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

Parcel 2

     A parcel of land containing 4 acres of the West side of highway, said parcel
of land being described as commencing 16 rods South of the Northwest corner of
the NW 1/4 of the SW 1⁄4 of Section 22, T17N, R17W, running thence South 64 rods,
thence NE’ly and N’ly and NW’ly along the W’ly line of said highway to the place
of beginning, together with any and all right, title, and interest of Howard C.
Wicklund and Katherine E. Wicklund in and to that portion of the hereinbefore
mentioned highway lying adjacent to the E’ly line of said above described land.

MECOSTA COUNTY

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

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

MIDLAND COUNTY

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

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

MISSAUKEE COUNTY

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

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

28

 

T24N, R6W, between the Southwest and Northwest corners of said section assumed as
North.)

MONROE COUNTY

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

     A parcel of land in the SW1/4 of Section 20, T8S, R6E,
described as
follows: To find the place of beginning of this description commence at the S
1/4 post of said section; run thence West along the South line of said section
1269.89 feet to the place of beginning of this description; thence continuing
West along said South line of said section 100 feet; thence N 00 degrees 50’
35” E, 250 feet; thence East 100 feet; thence S 00 degrees 50’ 35” W parallel
with and 16.5 feet distant W’ly of as measured perpendicular to the West 1/8
line of said section, as occupied, a distance of 250 feet to the place of
beginning.

MONTCALM COUNTY

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

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

MONTMORENCY COUNTY

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

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

MUSKEGON COUNTY

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

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

NEWAYGO COUNTY

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

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

29

 

OAKLAND COUNTY

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

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

OCEANA COUNTY

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

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

OGEMAW COUNTY

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

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

OSCEOLA COUNTY

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

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

OSCODA COUNTY

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

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

30

 

OTSEGO COUNTY

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

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

OTTAWA COUNTY

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

     The North 660 feet of the West 660 feet of the NE 1/4 of the NW 1/4 of
Section 26, T7N, R15 W.

PRESQUE ISLE COUNTY

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

     Part of the South half of the Northeast quarter, Section 24, T34N, R5E,
and part of the Northwest quarter, Section 19, T34N, R6E, more fully
described as: Commencing at the East 1⁄4 corner of said Section 24; thence N
00 degrees 15’47” E, 507.42 feet, along the East line of said Section 24 to
the point of beginning; thence S 88 degrees l5’36” W, 400.00
feet, parallel with the North 1/8 line of said Section 24; thence N 00
degrees l5’47” E, 800.00 feet, parallel with said East line of Section 24;
thence N 88 degrees 15’36”E, 800.00 feet, along said North 1/8 line of
Section 24 and said line extended; thence S 00 degrees l5’47” W, 800.00
feet, parallel with said East line of Section 24; thence S 88 degrees l5’36”
W, 400.00 feet, parallel with said North 1/8 line of Section 24 to the
point of beginning.

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

ROSCOMMON COUNTY

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

     A parcel of land in the NW 1/4 of Section 19, T24N, R3W, described as
follows: To find the place of beginning of this description commence at the
Northwest corner of said section, run thence East along the North line of
said

31

 

section 1,163.2 feet to the place of beginning of this description (said
point also being the place of intersection of the West 1/8 line of said
section with the North line of said section), thence S 01 degrees 01’ E
along said West 1/8 line 132 feet, thence West parallel with the North line
of said section 132 feet, thence N 01 degrees 01’ W parallel with said West
1/8 line of said section 132 feet to the North line of said section, thence
East along the North line of said section 132 feet to the place of
beginning.

SAGINAW COUNTY

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

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

SANILAC COUNTY

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

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

SHIAWASSEE COUNTY

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

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

ST. CLAIR COUNTY

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

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

ST. JOSEPH COUNTY

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

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

32

 

TUSCOLA COUNTY

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

     A strip of land 280 feet wide across the East 96 rods of the South 20 rods of
the N 1/2 of the SE 1/4 of Section 34, T10N, R8E, more particularly described as
commencing at the Northeast corner of Section 3, T9N, R8E, thence S 89 degrees 55’
35” W along the South line of said Section 34 a distance of 329.65 feet, thence N
18 degrees 11’ 50” W a distance of 1398.67 feet to the South 1/8 line of said
Section 34 and the place of beginning for this description; thence continuing N 18
degrees 11’ 50” W a distance of 349.91 feet; thence N 89 degrees 57’ 01” W a
distance of 294.80 feet; thence S 18 degrees 11’ 50” E a distance of 350.04 feet
to the South 1/8 line of said Section 34; thence S 89 degrees 58’ 29” E along the
South 1/8 line of said section a distance of 294.76 feet to the place of
beginning.

VAN BUREN COUNTY

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

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

WASHTENAW COUNTY

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

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

33

 

WAYNE COUNTY

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

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

WEXFORD COUNTY

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

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

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

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

34

 

	 	 	 	 	 
	 	CONSUMERS ENERGY COMPANY

 	 
	(SEAL) 	By 
	/s/ Laura L. Mountcastle 	 
	 	 	Laura L. Mountcastle 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	 	 
	/s/ Joyce H. Norkey
 	 	 
	Joyce H. Norkey 	 	 
	Assistant
Secretary 	 	 
	 
	Signed, sealed and delivered

by CONSUMERS ENERGY COMPANY

in the presence of

 	 	 
	/s/ Kimberly C. Wilson
 	 	 
	Kimberly C. Wilson 	 	 
	 	 	 
	/s/ Sammie B. Dalton
 	 	 
	Sammie B. Dalton 	 	 
	 	 	 

	 	 	 	 	 	 	 
	STATE OF MICHIGAN

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.
	COUNTY OF JACKSON

	 	 	)	 	 	 

          The
foregoing instrument was acknowledged before me this 30th day of March,
2007, by Laura L. Mountcastle, Vice President and Treasurer of CONSUMERS ENERGY COMPANY, a
Michigan corporation, on behalf of the corporation.

	 	 	 	 	 
	 	 	 
	[Seal] 	                        /s/ Margaret Hillman
 	 
	 	Margaret Hillman, Notary Public  	 
	 	State of Michigan, County of Jackson

My Commission Expires: 06/14/10

Acting in the County of Jackson 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, AS TRUSTEE

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

	 	 	 	 	 
	/s/ Rosa Ciaccia
 	 	 
	Rosa Ciaccia 	 	 
	Assistant Treasurer 	 	 
	 
	Signed, sealed and delivered

by THE BANK OF NEW YORK

in the presence of

 	 	 
	/s/ James D. Heaney
 	 	 
	James D. Heaney 	 	 
	 	 	 
	/s/ Carol Ng
 	 	 
	Carol Ng 	 	 
	 	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	 	 	 	ss.
	COUNTY OF NEW YORK

	 	 	)	 	 	 

          The foregoing instrument was acknowledged before me this 30th day of March,
2007, by L. O’Brien, a Vice President of THE BANK OF NEW YORK, a New York banking
corporation, on behalf of the bank, as trustee.

	 	 	 	 	 
	 	 	 
	 	/s/ CHERYL L. CLARKE
 	 
	 	Notary Public 	 
	 	 	 

	 	 	 
	[Seal]

	 	New York County, New York
	 

	 	My Commission Expires:
 
	 

	 	CHERYL L. CLARKE
	 

	 	Notary Public, State of New York
	 

	 	No.01CL5057121
	 

	 	Qualified in New York County
	 

	 	Certificate Filed in New York County
	 

	 	Commission Expires May 11, 2010

S-2

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