Document:

EX-4(F)(119)

Exhibit 4.(f)(119)

Execution Copy

SIXTH AMENDMENT

AND CONSENT UNDER THE

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

     This Sixth Amendment and Consent under the Fourth Amended and Restated Credit Agreement
(“Sixth Amendment”) is made as of December 9, 2008 by and among Credit Acceptance Corporation, a
Michigan corporation (“Company”), Comerica Bank and the other banks signatory hereto (individually,
a “Bank” and collectively, the “Banks”) and Comerica Bank, as administrative agent for the Banks
(in such capacity, “Agent”).

RECITALS

	A.	 	Company, Agent and the Banks entered into that certain Fourth Amended and Restated Credit
Acceptance Corporation Credit Agreement dated as of February 7, 2006 (as amended by First
Amendment dated September 20, 2006, Second Amendment dated January 19, 2007, Third Amendment
dated June 14, 2007, Fourth Amendment dated as of January 25, 2008, Fifth Amendment dated July
31, 2008 and as may be further amended or otherwise modified from time to time, the “Credit
Agreement”) under which the Banks renewed and extended (or committed to extend) credit to the
Company, as set forth therein.
	 
	B.	 	The Company has requested that Agent and the Banks agree to certain amendments to the Credit
Agreement and Agent and the Banks are willing to do so, but only on the terms and conditions
set forth in this Sixth Amendment.
	 
	C.	 	The Company has requested that the Agent and the Banks consent to the purchase by the Company
of certain securities issued in connection with the Permitted Securitization which closed on
April 12, 2007. Agent and the Banks are willing to do so, but only on the terms and
conditions set forth in this Sixth Amendment.
	 
	 	 	NOW, THEREFORE, Company, Agent and the Banks agree:

	 	1.	 	Section 1 of the Credit Agreement is hereby amended as follows:

	 	 	 	(a) The definition of “Advance(s)” is amended by deleting the reference therein to
“Prime-based Advance” and replacing it with a reference to “Base Rate Advance.
	 
	 	 	 	(b) The definition of “Applicable Interest Rate” is amended by deleting the
reference therein to “Prime-based Rate” and replacing it with a reference to “Base
Rate.”
	 
	 	 	 	(c) The definition of Prime-based Advance is hereby deleted.
	 
	 	 	 	(d) The following specified definitions are hereby amended and restated (in their
entirety), as follows:

 

 

	 	 	 	“Applicable Margin” shall mean, as of any date of determination
thereof, the applicable interest rate margin, determined by
reference to the appropriate columns in the Pricing Matrix attached
to this Agreement as Schedule 1.1.
	 
	 	 	 	“Eurodollar-based Rate” shall mean a per annum interest rate which
is equal to the sum of (a) the Applicable Margin, plus (b) the
quotient of:

	 	(i)	 	the LIBOR Rate

	 	 	 	divided by

	 	(ii)	 	a percentage equal to 100% minus the maximum
rate on such date at which the Agent is required to maintain
reserves on ‘Eurodollar Liabilities’ as defined in and pursuant
to Regulation D of the Board of Governors of the Federal
Reserve System or, if such regulation or definition is
modified, and as long as the Agent is required to maintain
reserves against a category of liabilities which includes
Eurodollar deposits or includes a category of assets which
includes Eurodollar loans, the rate at which such reserves are
required to be maintained on such category,

	 	 	 	such sum to be rounded upward, if necessary, to the nearest whole
multiple of 1/100th of 1%.
	 
	 	 	 	“Eurodollar-Interest Period” shall mean, for Swing Line Advances
carried at the Eurodollar-based Rate, an interest period of one
month or any shorter period of not less than seven days (or any
lesser number of days agreed to in advance by Company, Agent and the
Swing Line Bank), and for all other Eurodollar-based Advances, an
interest period of one, two, three or six months, or any shorter
period of not less than fourteen days (or any lesser or greater
number of days agreed to in advance by Agent and the Banks), in each
case as selected by Company, as applicable, for a Eurodollar-based
Advance pursuant to Section 2.3 or 2.5 hereof, as the case may be.
	 
	 	 	 	“Prime-based Rate” shall mean, for any day, that rate of interest
which is equal to the greater of (i) the Prime Rate, and (ii) the
Alternate Base Rate.
	 
	 	 	 	(e) The following new definitions are hereby inserted in the appropriate
alphabetical order:

2

 

	 	 	 	“Base Rate” shall mean for any day, that rate of interest which is
equal to the Applicable Margin plus the greater of the (i) the Daily
Adjusting LIBOR Rate and (ii) the Prime-based Rate.
	 
	 	 	 	“Base Rate Advance” shall mean an Advance which bears interest at
the Base Rate.
	 
	 	 	 	“LIBOR Rate” shall mean,
	 
	 	 	 	(a) with respect to the principal amount of any Eurodollar-based
Advance, the per annum rate of interest determined on the basis of
the rate for deposits in United States Dollars for a period, in the
case of a Eurodollar-based Advance with a Eurodollar Interest Period
of one (1) month or longer, equal to the relevant
Eurodollar-Interest Period, and in the case of a Eurodollar-based
Advance with a Eurodollar-Interest Period of less than one (1)
month, equal to one (1) month, commencing on the first day of such
Eurodollar-Interest Period, appearing on Page BBAM of the Bloomberg
Financial Markets Information Service as of 11:00 a.m. (Detroit,
Michigan time) (or as soon thereafter as practical), two (2)
Business Days prior to the first day of such Eurodollar-Interest
Period. In the event that such rate does not appear on Page BBAM of
the Bloomberg Financial Markets Information Service (or otherwise on
such Service), the “LIBOR Rate” shall be determined by reference to
such other publicly available service for displaying LIBOR rates as
may be agreed upon by Agent and Company, or, in the absence of such
agreement, the “LIBOR Rate” shall, instead, be the per annum rate
equal to the average (rounded upward, if necessary, to the nearest
one-sixteenth of one percent (1/16%)) of the rate at which Agent is
offered dollar deposits at or about 11:00 a.m. (Detroit, Michigan
time) (or as soon thereafter as practical), two (2) Business Days
prior to the first day of such Eurodollar-Interest Period in the
interbank LIBOR market in an amount comparable to the principal
amount of the relevant Eurodollar-based Advance which is to bear
interest at such Eurodollar-based Rate and for a period equal to the
relevant Eurodollar-Interest Period; and
	 
	 	 	 	(b) with respect to the principal amount of any Advance carried at
the Daily Adjusting LIBOR Rate outstanding hereunder, the per annum
rate of interest determined on the basis of the rate for deposits in
United States Dollars for a period equal to one (1) month appearing
on Page BBAM of the Bloomberg Financial Markets Information Service
as of 11:00 a.m. (Detroit, Michigan time) (or soon thereafter as
practical) on such day, or if such day is not a Business Day, on the
immediately preceding Business Day. In the event that such rate
does not appear on Page BBAM of the

3

 

	 	 	 	Bloomberg Financial Markets Information Service (or otherwise on
such Service), the “LIBOR Rate” shall be determined by reference to
such other publicly available service for displaying eurodollar
rates as may be agreed upon by Agent and Company, or, in the absence
of such agreement, the “LIBOR Rate” shall, instead, be the per annum
rate equal to the average of the rate at which Agent is offered
dollar deposits at or about 11:00 a.m. (Detroit, Michigan time) (or
soon thereafter as practical) on such day in the interbank
eurodollar market in an amount comparable to the principal amount of
the Indebtedness hereunder which is to bear interest at such “LIBOR
Rate” and for a period equal to one (1) month.

	 	 	 	“Daily Adjusting LIBOR Rate” shall mean for any day a per annum
interest rate which is equal to the sum of one percent (1%) plus the
quotient of the following:

	 	(a)	 	the LIBOR Rate;
	 
	 	 	 	divided by

	 	 	 	(b) a percentage (expressed as a decimal) equal to 1.00 minus the
maximum rate on such date at which Bank is required to maintain
reserves on “Euro-currency Liabilities” as defined in and pursuant
to Regulation D of the Board of Governors of the Federal Reserve
System or, if such regulation or definition is modified, and as long
as Bank is required to maintain reserves against a category of
liabilities which includes eurodollar deposits or includes a
category of assets which includes eurodollar loans, the rate at
which such reserves are required to be maintained on such category.

	 	2.	 	Sections 11.3, 11.4 and 11.5 are hereby amended and restated as follows:

	 	 	 	“11.3 Circumstances Affecting LIBOR Rate Availability. If
Agent or the Majority Banks (after consultation with Agent) shall
determine that, by reason of circumstances affecting the foreign
exchange and interbank markets generally, deposits in eurodollars in
the applicable amounts are not being offered to the Agent or such
Banks at the applicable LIBOR Rate, then Agent shall forthwith give
notice thereof to Company. Thereafter, until Agent notifies Company
that such circumstances no longer exist, (i) the obligation of Banks
to make Advances which bears interest at or by reference to the
LIBOR Rate, and the right of Company to convert an Advance to or
refund an Advance as an Advance which bears interest at or by
reference to the LIBOR Rate shall be suspended, (ii) effective upon
the last day of each Eurodollar-

4

 

	 	 	 	Interest Period related to any existing Eurodollar-based Advance,
each such Eurodollar-based Advance shall automatically be converted
into an Advance which bears interest at or by reference to the
Prime-based Rate (plus the Applicable Margin) (without regard to
satisfaction of any conditions to conversion contained elsewhere
herein) and (iii) effective immediately following such notice, each
Advance which bears interest at or by reference to the Daily
Adjusting LIBOR Rate shall automatically be converted into an
Advance which bears interest at or by reference to the Prime-based
Rate (plus the Applicable Margin) (without regard to satisfaction
of any conditions to conversion contained elsewhere herein).

	 	 	 	11.4 Laws Affecting LIBOR Rate Availability. If, after the
date of this Agreement, the adoption or introduction of, or any
change in, any applicable law, rule or regulation or in the
interpretation or administration thereof by any governmental
authority charged with the interpretation or administration thereof,
or compliance by any of the Banks (or any of their respective
Eurodollar Lending Offices) with any request or directive (whether
or not having the force of law) of any such authority, shall make it
unlawful or impossible for any of the Banks (or any of their
respective Eurodollar Lending Offices) to honor its obligations
hereunder to make or maintain any Advance which bears interest at or
by reference to the LIBOR Rate, such Bank shall forthwith give
notice thereof to Company and to Agent. Thereafter, (a) the
obligations of the applicable Banks to make Advances which bears
interest at or by reference to the LIBOR Rate and the right of
Company to convert an Advance into or refund an Advance as an
Advance which bears interest at or by reference to the LIBOR Rate
shall be suspended and thereafter only the Prime-based Rate, plus
the Applicable Margin shall be available, and (b) if any of the
Banks may not lawfully continue to maintain an Advance which bears
interest at or by reference to the LIBOR Rate, the applicable
Advance shall immediately be converted to an Advance which bears
interest at or by reference to the Prime-based Rate (plus the
Applicable Margin). For purposes of this Section, a change in law,
rule, regulation, interpretation or administration shall include,
without limitation, any change made or which becomes effective on
the basis of a law, rule, regulation, interpretation or
administration presently in force, the effective date of which
change is delayed by the terms of such law, rule, regulation,
interpretation or administration.

	 	 	 	11.5 Increased Cost of Advances Carried at the LIBOR Rate.
If, after the date of this Agreement, the adoption or introduction
of, or

5

 

	 	 	 	any change in, any applicable law, rule or regulation or in the
interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Agent or
any of the Banks (or any of their respective Eurodollar Lending
Offices) with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable
agency:

	 	 	 	(a) shall subject any of the Banks (or any of their respective
Eurodollar Lending Offices) to any tax, duty or other charge with
respect to any Advance or any Note or shall change the basis of
taxation of payments to any of the Banks (or any of their respective
Eurodollar Lending Offices) of the principal of or interest on any
Advance or any Note or any other amounts due under this Agreement in
respect thereof (except for changes in the rate of tax on the
overall net income of any of the Banks or any of their respective
Eurodollar Lending Offices imposed by the jurisdiction in which such
Bank’s principal executive office or Eurodollar Lending Office is
located); or

	 	 	 	(b) shall impose, modify or deem applicable any reserve (including,
without limitation, any imposed by the Board of Governors of the
Federal Reserve System), special deposit or similar requirement
against assets of, deposits with or for the account of, or credit
extended by, any of the Banks (or any of their respective Eurodollar
Lending Offices) or shall impose on any of the Banks (or any of
their respective Eurodollar Lending Offices) or the foreign exchange
and interbank markets any other condition affecting any Advance or
any of the Notes;
	 
	 	 	 	and the result of any of the foregoing matters is to increase the
costs to any of the Banks of maintaining any part of the
Indebtedness hereunder as an Advance which bears interest at or by
reference to the LIBOR Rate to reduce the amount of any sum received
or receivable by any of the Banks under this Agreement in respect of
an Advance or under the Notes which bears interest at or by
reference to the LIBOR Rate, then such Bank shall promptly notify
Agent (or, in the case of a Swing Line Advance, shall notify Company
directly, with a copy of such notice to Agent), and Agent (or such
Bank as aforesaid) shall promptly notify Company of such fact and
demand compensation therefor and, within fifteen (15) Business Days
after such notice, Company agrees to pay to such Bank or Banks such
additional amount or amounts as will compensate such Bank or Banks
for such increased cost or reduction . Agent will promptly notify
Company of any event of

6

 

	 	 	 	which it has knowledge which will entitle Banks to compensation
pursuant to this Section, or which will cause Company to incur
additional liability under Sections 11.1 and 11.6 hereof, provided
that Agent shall incur no liability whatsoever to the Banks or
Company in the event it fails to do so. A certificate of Agent (or
such Bank, if applicable) setting forth the basis for determining
such additional amount or amounts necessary to compensate such Bank
or Banks shall accompany such demand and shall be conclusively
presumed to be correct save for manifest error. For purposes of
this Section, a change in law, rule, regulation, interpretation,
administration, request or directive shall include, without
limitation, any change made or which becomes effective on the basis
of a law, rule regulation, interpretation, administration, request
or directive presently in force, the effective date of which change
is delayed by the terms of such law, rule, regulation,
interpretation, administration, request or directive.”

     3. All references to “Prime-based Advance” and “Prime-based Rate” shall be deleted and
replaced with references to “Base Rate Advance” and “Base Rate”, respectively, in Articles 2, 3, 5,
6, 7, 8, 9, 10, 12, and 13 and in the Exhibits to the Credit Agreement.

     4. Schedule 1.1 to the Credit Agreement is hereby amended and restated by deleting
such Schedule and inserting the replacement Schedule 1.1 attached hereto as Attachment 1 in
its place.

     5. Exhibit A to the Credit Agreement is hereby amended and restated by deleting such
exhibit and inserting the replacement Exhibit A attached hereto as Attachment 2 in its
place.

     6. Agent and the Banks hereby consent to the purchase by the Company of securities issued in
connection with the Permitted Securitization which closed on April 12, 2007, commonly known as the
2007-1 ABS bonds (the “Bond Purchase”), provided that (i) the Bond Purchase shall be made on
substantially the same terms and conditions as described in the memorandum delivered to the Banks
by the Company on November 18, 2008 (ii) the purchase price for such Bond Purchase shall not exceed
$7,500,000.00 and (iii) at the time of such Bond Purchase no Default or Event of Default shall have
occurred and be continuing.

     7. This Sixth Amendment shall become effective, according to the terms and as of the date
hereof, upon satisfaction by the Company of the following conditions:

	 	 	 	(1) Agent shall have received counterpart originals of (i) this Sixth
Amendment, duly executed and delivered by the Company and the requisite
Banks and (ii) a Reaffirmation of Loan Documents duly executed and delivered
by the Guarantors.

	 	 	 	(2) Agent shall have received from a responsible senior officer of the
Company a certification (i) that all necessary actions have been taken by
the Company to authorize execution and delivery of this Sixth

7

 

	 	 	 	Amendment, supported by such resolutions or other evidence of corporate
authority or action as reasonably required by Agent and the Majority Banks
and that no consents or other authorizations of any third parties are
required in connection therewith; and (ii) that, after giving effect to this
Sixth Amendment, no Default or Event of Default has occurred and is
continuing on the proposed effective date of the Sixth Amendment.

     Agent shall give notice to Company and the Banks of the occurrence of the Sixth Amendment
Effective Date.

     8. The Company ratifies and confirms, as of the date hereof and after giving effect to the
amendments contained herein, each of the representations and warranties set forth in Sections 6.1
through 6.18, inclusive, of the Credit Agreement and acknowledges that such representations and
warranties are and shall remain continuing representations and warranties during the entire life of
the Credit Agreement.

     9. Except as specifically set forth above, this Sixth Amendment shall not be deemed to amend
or alter in any respect the terms and conditions of the Credit Agreement, any of the Notes issued
thereunder or any of the other Loan Documents, or to constitute a waiver by the Banks or Agent of
any right or remedy under or a consent to any transaction not meeting the terms and conditions of
the Credit Agreement, any of the Notes issued thereunder or any of the other Loan Documents.

     10. Unless otherwise defined to the contrary herein, all capitalized terms used in this Sixth
Amendment shall have the meaning set forth in the Credit Agreement.

     11. This Sixth Amendment may be executed in counterpart in accordance with Section 13.10 of
the Credit Agreement.

     12. This Sixth Amendment shall be construed in accordance with and governed by the laws of the
State of Michigan.

[Signatures Follow on Succeeding Pages]

8

 

Attachment 1

Schedule 1.11

PRICING MATRIX

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	The Applicable Margin For	 	 
	 	 	 	 	Advances carried at	 	 
	Notwithstanding the	 	Advances carried at	 	the	 	Applicable Fee Percentage For
	Company’s Rating	 	the Base Rate shall	 	Eurodollar-based	 	Revolving Credit	 	Letter of Credit
	Level:	 	be	 	Rate shall be	 	Facility Fee	 	Fee
	 

	 	minus .60%
	 	 	1.25	%	 	 	.50	%	 	1.375%
(inclusive of
facing fee)

 

			
	1	 	All terms as defined in the Agreement.

 

 

Attachment 2

EXHIBIT A

REQUEST FOR ADVANCE

	 	 	 
	No.________________

	 	Dated:________________

	TO: 	 	Comerica Bank (“Agent”)
	 
	RE: 	 	Fourth Amended and Restated Credit Acceptance Corporation Credit
Agreement dated as of February 7, 2006 by and among Company, the Banks
signatory thereto and Comerica Bank, as Agent (as amended, restated or
otherwise modified from time to time, the “Credit Agreement”)

     The Company pursuant to the Credit Agreement requests an Advance from Banks, as follows:

     Date of Advance:_________________________

Credit facility under which Advance is requested:

	 	 	o Revolving Credit

o (check if applicable)

	 	 	This Advance is or includes a whole or partial refunding/conversion of:

	 	 	Advance No(s)._________________________________________________

Type of Advance (check only one);

	 	 	o Base Rate Advance

o Eurodollar-based Advance

Amount of Advance:

	 	 	_________________________________________________

Interest Period (not applicable to Base Rate Advances)

	 	 	______ months (insert 1, 2, 3 or 6)

	 	 	______ days (insert number of days (not less than 14 unless agreed to by Agent and Banks)

     Interest on each 1 month or less, 2 month and 3 month Eurodollar-based Advance shall be
payable on the last day of the Applicable Interest Period. Interest on each 6 month Eurodollar-

 

 

based Advance shall be payable at intervals of 3 months after the first day of the applicable
Interest Period and also on the last day of the Interest Period applicable thereto.

Disbursement Instructions

	 	 	o Comerica Bank Account No. _______________________

o Other:___________________________________________________

                  ___________________________________________________

     The Company certifies to the matters specified in Section 2.3(f) or Sections 3.2(a) through
(e) of the Credit Agreement, as the case may be.

* * *

Signatures on Following Page

 

 

     Capitalized terms used herein, except as defined to the contrary, have the meanings given them
in the Credit Agreement.

	 	 	 	 	 
	 	CREDIT ACCEPTANCE CORPORATION

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Douglas W. Busk 	 
	 	Its: 	Treasurer 	 
	 

Agent Approval:______________

 

 

     WITNESS the due execution hereof as of the day and year first above written.

	 	 	 	 	 
	 	COMERICA BANK,

as Agent

 	 
	 	By:  	/s/ Timothy Bishop
 	 
	 	Its: 	Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	CREDIT ACCEPTANCE CORPORATION

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Douglas W. Busk 	 
	 	Its: 	Treasurer 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	BANKS:

COMERICA BANK

 	 
	 	By:  	/s/ Timothy Bishop
 	 
	 	Its: 	Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Daniel R. Petrik
 	 
	 	Its: 	Senior Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

 	 
	 	By:  	/s/ Michael S. Cameli
 	 
	 	Its: 	Director 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK

(Eastern Michigan)

 	 
	 	By:  	/s/ John Antonczak
 	 
	 	Its: 	Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK

 	 
	 	By:  	/s/ Michael Kell
 	 
	 	Its: 	Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)

 

 

	 	 	 	 	 
	 	RBS CITIZENS, N.A.

 	 
	 	By:  	/s/ Michael Dolson
 	 
	 	Its: 	Senior Vice President 	 
	 	 	 	 
	 

Signature Page For

CAC Sixth Amendment

(885814)EX-4.252

EXHIBIT 4-252

      

NINTH SUPPLEMENTAL INDENTURE

FROM

MICHIGAN CONSOLIDATED GAS COMPANY

TO

CITIBANK, N.A.

TRUSTEE

 

Dated as of December 1, 2008

SUPPLEMENT TO INDENTURE

Dated as of December 1, 1998

Providing for

Floating Rate Senior Notes, 2008 Series M due 2009

      

 

 

     This NINTH SUPPLEMENTAL INDENTURE is made as of the 1st day of December, 2008, by and between
MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and existing under the laws of the
State of Michigan (the “Company”), and CITIBANK, N.A., a national banking association incorporated
and existing under and by virtue of the laws of the United States of America, as trustee (the
“Trustee”).

RECITALS OF THE COMPANY:

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated
as of June 1, 1998 (the “Original Indenture”), as amended, supplemented and modified (as so
amended, supplemented and modified, the “Indenture”), providing for the issuance by the Company
from time to time of its senior debt securities (the “Securities”); and

     WHEREAS, the Company desires to provide for the issuance of a series of its Securities
pursuant to the Indenture; and

     WHEREAS, the Company, in the exercise of the power and authority conferred upon and
reserved to it under the provisions of the Original Indenture, including Section 10.1 thereof, and
pursuant to appropriate resolutions of the Board of Directors, has duly determined to make, execute
and deliver to the Trustee this Supplemental Indenture to the Original Indenture as permitted by
Section 2.1 and Section 3.1 of the Original Indenture in order to establish the form or terms of,
and to provide for the creation and issue of a series of its Securities under the Original
Indenture, which shall be known as the “Floating Rate Senior Notes, 2008 Series M due 2009”; and

     WHEREAS, all things necessary to make such Securities, when executed by the Company
and authenticated and delivered by the Trustee or any Authenticating Agent and issued upon the
terms and subject to the conditions hereinafter and in the Original Indenture set forth against
payment therefor, the valid, binding and legal obligations of the Company and to make this
Supplemental Indenture a valid, binding and legal agreement of the Company, have been done;

     NOW, THEREFORE, in order to establish the terms of a series of Securities, and for
and in consideration of the premises and of the covenants contained in the Original Indenture and
in this Supplemental Indenture and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, it is mutually covenanted and agreed as follows:

Article I

RELATION TO INDENTURE; DEFINITIONS

     Section 1.01.

     This Supplemental Indenture constitutes an integral part of the Indenture.

     Section 1.02.

2

 

     For all purposes of this Supplemental Indenture:

     (a) Capitalized terms used but not otherwise defined herein shall have the respective meanings
assigned to such terms in the Indenture;

     (b) All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture; and

     (c) The terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder,” and “herewith” refer to
this Supplemental Indenture.

     (d) The following terms shall have the meaning set forth below:

     “Closing” means December 18, 2008.

     “Institutional Investor” has the meaning set forth in the Purchase Agreement.“

     “Original Issue Date” means December 18, 2008.

“Purchase Agreement” means the Note Purchase Agreement dated as of December 18, 2008,
among the Company and the initial purchasers named therein.

     “Restricted Securities Legend” means the legend set forth in Section 2.03(b) herein.

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

Article II

THE SECURITIES

     Section 2.01. Title of the Securities; Stated Maturity.

     This Supplemental Indenture hereby establishes a series of Securities, known as and entitled
“Floating Rate Senior Notes, 2008 Series M due 2009” (the “Senior Notes”). The aggregate
principal amount of the Senior Notes shall be limited initially to Twenty million Dollars
($20,000,000)(except, in each case, for Senior Notes authenticated and delivered upon transfer of,
or in exchange for, or in lieu of, other Senior Notes).

     The Senior Notes issued on the Original Issue Date will be sold by the Company pursuant to the
Purchase Agreement.

     The Senior Notes are not subject to repayment at the option of Holders thereof and are not
subject to any sinking fund or other redemption prior to the Stated Maturity.

3

 

     The Senior Notes shall have such other terms and provisions as are set forth in the form of
the Senior Notes attached hereto as Appendix I (which is incorporated by reference in and made a
part of this Supplemental Indenture as if set forth in full at this place).

     Section 2.02. Amount and Denominations

     The Senior Notes shall be issuable only in fully registered form and, as permitted by Section
3.1 and Section 3.2 of the Original Indenture, in denominations of $1,000 and integral multiples
thereof.

     Section 2.03. Transfer and Exchange.

     (a) Transfer and Exchange of Definitive Securities. When Securities evidencing the Senior
Notes are presented to the Security Registrar with a request:

     (i) to register the transfer of such Securities; or

     (ii) to exchange such Securities for Securities of the same series of any authorized
denominations of the same aggregate principal amount and Stated Maturity, the Security Registrar
shall register the transfer or make the exchange as requested if its reasonable requirements for
such transaction are met; provided, however, that the Securities surrendered for transfer or
exchange:

     (A) shall be duly endorsed or be accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Security Registrar, duly executed by the
Holder thereof or his attorney duly authorized in writing; and

     (B) are accompanied by the following additional information and documents, as
applicable:

     (x) if such Securities are being delivered to the Security Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from such
Holder to that effect (in the form set forth on the reverse side of the Transfer
Restricted Security); or

     (y) if such Securities are being transferred to the Company, a certification to that
effect (in the form set forth on the reverse side of the Transfer Restricted Security);
or

     (z) if such Securities are being transferred pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act or in reliance upon
another exemption from the registration requirements of the Securities Act, (i) a
certification to that effect (in the form set forth on the reverse side of the Transfer
Restricted Security) and (ii) if the Company so

4

 

requests, other evidence reasonably satisfactory to it as to the compliance with the
restrictions set forth in the legend set forth in Section 2.03(b).

     (b) Legends for Securities. Each Security certificate evidencing the Senior Notes (and all
Securities issued in exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form (each defined term in the legend being defined as such for
purposes of the legend only):

     THE SENIOR NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES
AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

Article III

DELIVERY AND TRANSFER OF 2008 SERIES M COLLATERAL BONDS

     The Company hereby delivers and transfers to the Trustee in connection with the issuance of
the Senior Notes, Twenty million Dollars ($20,000,000) aggregate principal amount of a related
issue of Collateral Bonds of the Company designated “2008 Series M Collateral Bonds” (the ““Series
M Bonds” and, together with all other First Mortgage Bonds issued under the First Mortgage
Indenture as security for Securities issued under the Indenture, “Collateral Bonds”), which has
been fully registered in the name of the Trustee in such capacity, to be held in trust for the
benefit of the Holders from time to time of the Senior Notes as security for any and all
obligations of the Company in respect of the Senior Notes under the Indenture, this Supplemental
Indenture and the Senior Notes, including but not limited to (1) the full and prompt payment of the
interest on and principal of, and LIBOR Breakage Amount, if any, on the Senior Notes when and as
the same shall become due and payable in accordance with the terms and provisions of the Indenture
and this Supplemental Indenture and the Senior Notes, either at the Stated Maturity or upon
acceleration of the maturity of the Senior Notes, and (2) the full and prompt payment of any
interest on the Senior Notes when and as the same shall become due and payable in accordance with
the terms and provisions of the Indenture and this Supplemental Indenture and the Senior Notes.
The Trustee shall enforce all of its rights under the First Mortgage Indenture as a holder of the
Series M Bonds transferred to it as provided in this Article III for the benefit of the Holders of
the Senior Notes and the proceeds of the enforcement of such rights shall be applied by the Trustee
to satisfy the Company’s obligations under the Indenture, this Supplemental Indenture and the
Senior Notes. The Series M Bonds are the “Related Issue of Collateral Bonds” with respect to the
Senior Notes within the meaning of the Indenture.

5

 

     The Company shall make payments of the principal of, and LIBOR Breakage Amount or interest
on, the Series M Bonds to the Trustee, which payments shall be applied by the Trustee in
satisfaction of all obligations then due on the Senior Notes.

     The Series M Bonds shall not be sold or transferred by the Trustee until the earlier of the
Release Date or the prior retirement of the Senior Notes through repurchase or otherwise. The
“Release Date” shall be the date that all First Mortgage Bonds of the Company issued and
outstanding under the First Mortgage Indenture, other than the Collateral Bonds, have been retired
(at, before or after the maturity thereof) through payment, redemption or otherwise, provided that
no Default or Event of Default has occurred and, at such time, is continuing under the Indenture.

Article IV

COVENANTS

     Section 4.01. Limitation on Liens

     The covenant set forth in Section 11.10 of the Original Indenture shall apply to the Senior
Notes only from and after the Release Date (unless Substituted Collateral Bonds are issued to
secure the Senior Notes from and after the Release Date in which case such covenant shall not
apply); provided, that, in any case, the Company may issue, assume or guarantee Indebtedness
secured by a Lien not otherwise permitted under Section 11.10 so long as it effectively secures the
Senior Notes equally and ratably with such Indebtedness.

     Section 4.02. Limitation on Sale and Leaseback Transactions

     The covenant set forth in Section 11.11 of the Original Indenture shall apply to the Senior
Notes only from and after the Release Date (unless Substituted Collateral Bonds are issued to
secure the Senior Notes from and after the Release Date in which case such covenant shall not
apply).

     Section 4.03. Substituted Collateral Bonds

     The Company covenants and agrees that:

     (a) It shall notify the Trustee not less than 90 days prior to the anticipated Release Date
that on the Release Date the Company will cause Substituted Collateral Bonds and an associated
supplemental indenture to be delivered to the Trustee in accordance with Section 4.9 of the
Original Indenture as security for the Securities issued under the Indenture.

     (b) On or prior to the Release Date,

6

 

         (i) the Company shall have delivered to the Trustee as security for the Securities then
Outstanding under the Indenture, including the Senior Notes, Substituted Collateral Bonds
complying with the provisions of Section 4.9 of the Original Indenture, such Substituted
Collateral Bonds being issued

     (A) in an aggregate principal amount at least equal to the aggregate principal amount of
Securities then Outstanding under the Indenture, and

     (B) in series corresponding to the Series of Securities then Outstanding under the
Indenture, and each such series of Substituted Collateral Bonds shall be issued (1) in an
aggregate principal amount equal to the aggregate principal amount of the corresponding series
of Securities then Outstanding, (2) bearing interest at a rate equal to the interest rate borne
by the corresponding series of Securities, (3) having interest payment dates that are the same
as the Interest Payment Dates of the corresponding series of Securities, (4) with a stated
maturity that is the same as the Stated Maturity of the corresponding series of Securities, (5)
containing the same redemption and LIBOR Breakage Amount and other payment provisions as the
corresponding series of Securities and provisions providing for the mandatory redemption
thereof upon an acceleration of the maturity of any Outstanding Securities of the corresponding
series following an Event of Default, and (6) meeting the other requirements of Section 4.9 of
the Original Indenture; it being expressly understood that each such series of Substituted
Collateral Bonds shall be held by the Trustee for the benefit of the Holders of the
corresponding series of Securities from time to time Outstanding subject to such terms and
conditions relating to surrender to the Company, transfer restrictions, voting, application of
payments of principal and interest and other matters as shall be set forth in an indenture
supplemental hereto specifically providing for the delivery to the Trustee of such Substituted
Collateral Bonds;

     (ii) such Substituted Collateral Bonds shall have been issued under and shall be secured by
a Substituted Mortgage Indenture

	 	(A)	 	on which the Company shall be the obligor, and
	 
	 	(B)	 	which shall be qualified, or shall meet the requirements for
qualification, under the Trust Indenture Act;

     (iii) the Company shall have delivered to the Trustee:

      (A) an indenture supplemental hereto providing for the delivery to the Trustee of
Substituted Collateral Bonds in accordance with Section 4.9 of the Original Indenture and
Section 4.03(b)(i) above, together with such Substituted Collateral Bonds;

      (B) an Officer’s Certificate (1) stating that, to the knowledge of the signer, (A) no
Event of Default has occurred and is continuing and (B) no event has occurred and is continuing
which entitles the secured party under the Substituted Mortgage Indenture to accelerate the
maturity of the indebtedness outstanding thereunder

7

 

and (2) stating the aggregate principal amount of indebtedness issuable, and then proposed
to be issued, under and secured by the lien of the Substituted Mortgage Indenture; and

     (C) an Opinion of Counsel to the effect that such Substituted Collateral Bonds have been
duly issued under such Substituted Mortgage Indenture and constitute valid obligations,
entitled to the benefit of the lien of the Substituted Mortgage Indenture equally and ratably
with all other indebtedness then outstanding secured by such lien; and

     (iv) the Company shall have been advised in writing, within not more than 30 days prior to
such substitution of the Substituted Collateral Bonds for the Collateral Bonds, by at least two
credit rating agencies qualifying as “nationally recognized statistical rating organizations” (as
defined by the Securities Exchange Act of 1934, as amended) then maintaining a securities rating
on the Senior Notes that the substitution of such Substituted Collateral Bonds for the Collateral
Bonds will not result in a reduction of the securities rating assigned to the Senior Notes by that
credit rating agency immediately prior to the substitution or the suspension or withdrawal of its
rating and the Company shall have provided the Trustee with written evidence of such advice;
provided that, in the event such Senior Notes are not rated by at least two such credit rating
agencies as described above immediately prior to any proposed substitution, the Company shall
cause the Senior Notes to be so rated prior to such substitution (and without giving effect to any
substitution) by at least two such credit rating agencies described above.

     (c) in the event that the Company cannot obtain assurance of at least two credit rating
agencies as described in Section 4.03(b)(iv) above, the Company will take such actions as are
necessary to cause the Release Date not to occur.

     (d) Notwithstanding any other provision of the Indenture, including Section 4.9(d) of the
Original Indenture, the requirements of this Section 4.03 shall constitute covenants, agreements
and obligations of the Company under the Indenture.

     Section 4.04. Additional Event of Default.

     Failure by the Company to deliver Substituted Mortgage Bonds in accordance with the provisions
of Section 4.03 of this Supplemental Indenture and Section 4.9 of the Original Indenture on or
prior to the Release Date shall be an “Event of Default” with respect to the Senior Notes as
contemplated by Section 6.1(9) of the Original Indenture.

Article V

MISCELLANEOUS

     Section 5.01. Limitation of Trustee Liability

     The Trustee has accepted the amendment of the Indenture effected by this Supplemental
Indenture and agrees to execute the trust created by the Indenture as hereby amended, but only upon
the terms and conditions set forth in the Indenture, including the terms and provisions defining
and limiting the liabilities and responsibilities

8

 

of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be
responsible in any manner whatsoever for or with respect of any of the recitals or statements
contained herein, all of which recitals or statements are made solely by the Company, or for or
with respect to (a) the validity or sufficiency of this Supplemental Indenture or any of the terms
or provisions hereof, (b) the proper authorization hereof by the Company by corporate action or
otherwise, and (c) the due execution hereof by the Company.

     Section 5.02. Applicable Law

     This Supplemental Indenture and the Senior Notes shall be construed in connection with and as
a part of the Indenture and shall be governed by the laws (other than the choice of law provisions)
of the State of New York.

     Section 5.03. Survivability of Certain Provisions

     (a) If any provision of this Supplemental Indenture conflicts with another provision of the
Indenture required to be included in indentures qualified under the Trust Indenture Act of 1939, as
amended (as enacted prior to the date of this Supplemental Indenture), by any of the provisions of
Section 310 to 317, inclusive, of said act, such required provision shall control.

     (b) In case any one or more of the provisions contained in this Supplemental Indenture or in
the Senior Notes issued hereunder should be invalid, illegal, or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected, impaired, prejudiced or disturbed thereby.

     Section 5.04. Successors and Assigns

     Whenever in this Supplemental Indenture either of the parties hereto is named or referred to,
such name or reference shall be deemed to include the successors or assigns of such party, and all
the covenants and agreements contained in this Supplemental Indenture by or on behalf of the
Company or by or on behalf of the Trustee shall bind and inure to the benefit of the respective
successors and assigns of such parties, whether so expressed or not.

     Section 5.05. Counterpart Signatures and Descriptive Headings

     (a) 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.

     (b) The descriptive headings of the several Articles of this Supplemental Indenture were
formulated, used and inserted in this Supplemental Indenture for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.

9

 

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this Supplemental Indenture
to be executed by its duly authorized Officer and its corporate seal to be hereunto affixed, and
CITIBANK, N.A., as Trustee as aforesaid, has caused this Supplemental Indenture to be executed by
one of its authorized signatories, as of December 1, 2008.

	 	 	 	 	 	 	 
	 	 	MICHIGAN CONSOLIDATED GAS COMPANY	 	 
	 
	 	 	 	 	 	 
	[Corporate Seal]

	 	By:
	 	/s/ Edward J. Solomon
 

Edward J. Solomon
	 	 
	 

	 	 	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A., as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wafaa M. Orfy	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Wafaa M. Orfy	 	 
	 

	 	 	 	Vice President	 	 

10

 

	 	 	 
	PPN:                    

	 	APPENDIX I
	 
	 	 
	No.R-                    

	 	$                    

     THE SENIOR NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES
AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

MICHIGAN CONSOLIDATED GAS COMPANY

Floating Rate Senior Notes

2008 Series M due 2009

Principal Amount: $                     

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not a
Business Day) prior to the relevant Interest Payment Date

Original Issue Date: December 18, 2008

Stated Maturity: September 18, 2009

Interest Payment Dates: January 18, 2009, February 18, 2009, March 18, 2009, April 18, 2009, May
18, 2009, June 18, 2009, July 18, 2009, August 18, 2009 and September 18, 2009.

Interest Rate: Adjusted LIBOR Rate (as defined below)

     MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and existing under the laws of
the State of Michigan (the “Company”, which term includes any successor corporation under the
Senior Indenture hereinafter referred to), for value received, hereby promises to pay to
                                         or registered assigns, at the office or agency of the Company in
the City of New York, New York, the principal sum of                                          MILLION DOLLARS
($ ) on September 18, 2009 (the “Stated Maturity”), in the coin or currency of the
United States, and to pay interest thereon from the Original Issue Date shown above, or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, in arrears
on each Interest Payment Date as specified above, commencing on

 III-1 

 

January 18, 2009 and on the Stated Maturity at the floating rates equal to the Adjusted LIBOR
Rate (as defined below) in effect from time to time until the principal hereof is paid or made
available for payment and on any overdue principal and LIBOR Breakage Amount and on any overdue
installment of interest at the Adjusted LIBOR Rate until paid. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Senior
Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date as specified above
next preceding such Interest Payment Date; provided that any interest payable at Stated Maturity
will be paid to the Person to whom principal is payable. Except as otherwise provided in the Senior
Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Senior Note is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Senior Trustee, notice whereof shall be given
to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Securities of this series shall be listed, and upon such
notice as may be required by any such exchange, all as more fully provided in the Senior Indenture.

     “Adjusted LIBOR Rate” shall be equal to 4.38375% for the initial period, and for each
subsequent Interest Period shall be the rate per annum equal to LIBOR for such Interest Period plus
3.50%. For purposes of determining Adjusted LIBOR Rate, the following terms have the following
meanings:

     “LIBOR” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to
the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a
1-month period that appears on the Bloomberg Financial Markets Service Page BBAM-1 (or if such page
is not available, the Reuters Screen LIBO Page) as of 11:00 a.m. (London, England time) on the date
two Business Days before the commencement of such Interest Period.

     “Reuters Screen LIBO Page” means the display designated as the “LIBO” page on the Reuters
Monitor Money Rates Service (or such other page as may replace the LIBO page on that service) or
such other service as may be nominated by the British Bankers’ Association as the information
vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for
U.S. Dollar deposits.

     Determination of the Adjusted LIBOR Rate. The Adjusted LIBOR Rate shall be determined
by the Company, and notice thereof shall be given to the holders of the Senior Notes, two Business
Days before the beginning of each Interest Period, together with (i) a copy of the relevant screen
used for the determination of LIBOR, (ii) a calculation of the Adjusted LIBOR Rate for such
Interest Period, (iii) the number of days in such Interest Period, (iv) the date on which interest
for such Interest Period will be paid and (v) the amount of interest to be paid to each holder of
Senior Notes on such date. If the holders of a majority in principal amount of the Senior Notes
outstanding do not concur with such determination by the Company, as evidenced by a single written

 III-2 

 

notice delivered to the Company within 10 Business Days after receipt by such holders of the
notice delivered by the Company pursuant to the immediately preceding sentence, the determination
of the Adjusted LIBOR Rate shall be made by such holders of the Senior Notes, and any such
determination made in accordance with the provisions of this Senior Note shall be conclusive and
binding absent manifest error.

     “Interest Period” means the period commencing on an interest payment date or on the date of
Closing in the case of the first such period, and continuing up to, but not including, the next
interest payment date. The interest payment dates for the Senior Notes are January 18, 2009,
February 18, 2009, March 18, 2009, April 18, 2009, May 18, 2009, June 18, 2009, July 18, 2009,
August 18, 2009 and September 18, 2009.

     All percentages resulting from any calculation of the interest rate with respect to the Notes
will be rounded, if necessary to the nearest one-hundred thousandth of a percentage point, with
five one-millionths of a percentage point rounded upwards, and all dollar amounts in or resulting
from any such calculation will be rounded to the nearest cent (with one-half cent being rounded
upwards).

     The interest rate on this Senior Note will in no event be higher than the maximum rate
permitted by New York law as the same may be modified by United States law of general application.

     Payments of interest on this Senior Note will include interest accrued to but excluding the
respective Interest Payment Dates. Interest payments for this Senior Note shall be computed and
paid on the basis of a 360-day year and actual days elapsed. The Company shall pay interest on
overdue principal and LIBOR Breakage Amount, if any, and, to the extent lawful, on overdue
installments of interest at the rate per annum borne by this Senior Note. In the event that any
Interest Payment Date or Maturity Date is not a Business Day, then the required payment of
principal, LIBOR Breakage Amount, if any, and interest will be made on the next succeeding day that
is a Business Day (and without any interest or other payment in respect of any such delay except
that if the Maturity Date is a date other than a Business Day, the payment otherwise due on such
Maturity Date shall be made on the next succeeding Business Day and shall include the additional
days elapsed in the computation of interest payable on such next succeeding Business Day.).
“Business Day” means any day other than a day on which banking institutions in the State of New
York or the State of Michigan are authorized or obligated pursuant to law or executive order to
close.

     Payment of principal of, LIBOR Breakage Amount, if any, and interest on the Securities of this
series shall be made 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. Payments of principal, LIBOR
Breakage Amount, if any, and interest due at the Stated Maturity of such Securities shall be made
at the office of the Paying Agent upon surrender of such Securities to the Paying Agent, and (ii)
payments of interest shall be made, at the option of the Company, subject to such surrender where
applicable, (A) by check mailed to the address of the Person entitled thereto as such address shall
appear

 III-3 

 

in the Security Register or (B) by wire transfer at such place and to such account at a
banking institution in the United States as may be designated in writing to the Senior Trustee at
least fourteen (14) days prior to the date for payment by the Person entitled thereto.
Notwithstanding the foregoing, so long as any Senior Note is held by an Institutional Investor,
payment of principal, LIBOR Breakage Amount, if any, and interest on the Senior Notes held by such
Holder shall be made in the manner specified in the Purchase Agreement.

     The Senior Notes shall not be subject to redemption prior to Stated Maturity.

     UNTIL THE RELEASE DATE (AS DEFINED ON THE REVERSE HEREOF), THIS SENIOR NOTE SHALL BE SECURED
BY FIRST MORTGAGE BONDS (THE “FIRST MORTGAGE BONDS”) ISSUED AND DELIVERED BY THE COMPANY TO THE
SENIOR TRUSTEE (AS DEFINED ON THE REVERSE HEREOF) UNDER THE COMPANY’S TWENTY-NINTH SUPPLEMENTAL
INDENTURE DATED AS OF JULY 15, 1989, PROVIDING FOR THE RESTATEMENT OF THE INDENTURE OF MORTGAGE AND
DEED OF TRUST DATED AS OF MARCH 1, 1944 BETWEEN THE COMPANY AND CITIBANK, N.A. (THE “MORTGAGE
TRUSTEE”) WHICH BECAME EFFECTIVE APRIL 1, 1994, AS PREVIOUSLY SUPPLEMENTED INCLUDING AS
SUPPLEMENTED BY THE FORTY-SECOND SUPPLEMENTAL INDENTURE (AS SO SUPPLEMENTED, THE “MORTGAGE
INDENTURE”). ON THE RELEASE DATE, THE SENIOR NOTES SHALL CEASE TO BE SECURED BY SUCH FIRST MORTGAGE
BONDS AND INSTEAD SHALL BE SECURED BY SUBSTITUTED COLLATERAL BONDS PURSUANT TO SECTION 4.03 OF THE
NINTH SUPPLEMENTAL INDENTURE DATED AS OF DECEMBER 1, 2008 TO THE INDENTURE DESCRIBED ON THE REVERSE
HEREOF.

     Reference is made to the further provisions of this Senior Note set forth herein. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place.

     This Senior Note shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been manually signed by the Senior Trustee under the Senior
Indenture referred to on the reverse hereof.

     IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this instrument to be duly
executed under its corporate seal.

Dated: December 18, 2008

	 	 	 	 	 
	 	MICHIGAN CONSOLIDATED GAS COMPANY

 	 
	 	By:  	 	 
	 	 	N.A. Khouri 	 
	 	 	Vice President and Treasurer 	 
	 

 III-4 

 

	 	 	 	 	 
	Attest:
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Sandra Kay Ennis
	 	 
	 

	 	Corporate Secretary	 	 

CERTIFICATION OF AUTHENTICATION

Dated: December 18, 2008

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Senior Indenture.

	 	 	 	 	 
	 	CITIBANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

 III-5 

 

[REVERSE]

MICHIGAN CONSOLIDATED GAS COMPANY

Floating Rate Senior Notes

2008 Series due 2009

          1. Senior Indenture. (a) This Senior Note is one of the duly authorized issue
of Securities of the Company (hereinafter called the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to an Indenture, dated as of June 1, 1998,
as supplemented by the First Supplemental Indenture, dated as of June 18, 1998, the Second
Supplemental Indenture, dated as of June 9, 1999, the Third Supplemental Indenture, dated as of
August 15, 2001, the Fourth Supplemental Indenture dated as of February 15, 2003, the Fifth
Supplemental Indenture dated as of October 1, 2004, the Sixth Supplemental Indenture dated as of
April 1, 2008, the Seventh Supplemental Indenture dated as of June 1, 2008, the Eighth Supplemental
Indenture dated as of August 1, 2008 and the Ninth Supplemental Indenture dated as of December 1,
2008 between the Company and the Trustee (as so supplemented, the “Senior Indenture”), duly
executed and delivered by the Company to Citibank, N.A., as Trustee (herein called the “Senior
Trustee,” which term includes any successor trustee under the Senior Indenture), to which Senior
Indenture reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Senior Trustee, the Company and the Holders of
the Securities. The Securities may be issued in one or more series, which different series may be
issued in various aggregate principal amounts, may mature at different times, may bear interest, if
any, at different rates and may be subject to different sinking, purchase or analogous funds (if
any) and may otherwise vary as provided in the Senior Indenture. This Security is one of the series
designated as the “Floating Rate Senior Notes, 2008 Series M due 2009 (the “Senior Notes”) of the
Company.

               (b) The Senior Indenture contains provisions for defeasance at any time of the entire
indebtedness of the Senior Notes or certain covenants with respect thereto upon compliance by the
Company with certain conditions set forth therein.

          2. Defined Terms. Capitalized terms used herein for which no definition is provided
herein shall have the meanings set forth in the Senior Indenture.

          3. Transfer. No service charge will be made for any transfer or exchange of Senior
Notes, but payment will be required of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

          4. Security; Release Date. Prior to the Release Date (as hereinafter defined), the
Senior Notes shall be secured by First Mortgage Bonds designated as 2008 Series M Collateral Bonds
(the “Collateral Bonds”), delivered by the Company to the Senior Trustee for the benefit of the
Holders of the Senior Notes. Prior to the Release Date, the Company shall make payments of the
principal of, and LIBOR Breakage Amount, if any, and or interest on, the Collateral Bonds to the
Senior Trustee,

 III-6 

 

which payments shall be applied by the Senior Trustee to satisfaction of all obligations then due
on the Senior Notes. Reference is made to the Mortgage Indenture and the Senior Indenture for a
description of the rights of the Senior Trustee as holder of the Collateral Bonds, the property
mortgaged and pledged under the Mortgage Indenture and the rights of the Company and of the
Mortgage Trustee in respect thereof, the duties and immunities of the Mortgage Trustee and the
terms and conditions upon which the Collateral Bonds are secured and the circumstances under which
additional First Mortgage Bonds or Substituted Collateral Bonds may be issued.

     FROM AND AFTER SUCH TIME AS ALL FIRST MORTGAGE BONDS (OTHER THAN COLLATERAL BONDS) ISSUED
UNDER THE MORTGAGE INDENTURE HAVE BEEN RETIRED THROUGH PAYMENT, REDEMPTION OR OTHERWISE AT, BEFORE
OR AFTER THE MATURITY THEREOF (THE “RELEASE DATE”), THE COLLATERAL BONDS SHALL CEASE TO SECURE THE
SENIOR NOTES IN ANY MANNER PROVIDED THAT NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND AT SUCH
TIME IS CONTINUING UNDER THE SENIOR INDENTURE. IN CERTAIN CIRCUMSTANCES PRIOR TO THE RELEASE DATE
AS PROVIDED IN THE SENIOR INDENTURE, THE COMPANY IS PERMITTED TO REDUCE THE AGGREGATE PRINCIPAL
AMOUNT OF A SERIES OF COLLATERAL BONDS HELD BY THE SENIOR TRUSTEE, BUT IN NO EVENT PRIOR TO THE
RELEASE DATE TO AN AMOUNT LESS THAN THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT OF THE SERIES OF
SENIOR NOTES INITIALLY ISSUED CONTEMPORANEOUSLY WITH SUCH COLLATERAL BONDS. ON THE RELEASE DATE,
THE SENIOR NOTES SHALL CEASE TO BE SECURED BY SUCH FIRST MORTGAGE BONDS AND INSTEAD SHALL BE
SECURED BY SUBSTITUTED COLLATERAL BONDS PURSUANT TO SECTION 4.03 OF THE NINTH SUPPLEMENTAL
INDENTURE DATED AS OF DECEMBER 1, 2008 TO THE INDENTURE DESCRIBED ABOVE.

     5. Effect of Event of Default. In case an Event of Default with respect to the Senior
Notes shall occur and be continuing, the unpaid principal of the Senior Notes may be declared due
and payable, in the manner, with the effect and subject to the conditions provided in the Senior
Indenture. Upon any such declaration, the Company shall also pay to the Holders of the Senior
Notes the LIBOR Breakage Amount (as defined below) on the Senior Notes, if any, determined as of
the date the Senior Notes shall have been declared due and payable.

     “LIBOR Breakage Amount” means any loss, cost or expense (other than lost profits) reasonably
and actually incurred by any holder of a Senior Note as a result of any required payment or
prepayment of such Senior Note by reason of acceleration on a day other than an Interest Payment
Date or Stated Maturity thereof, arising from the liquidation or reemployment of funds obtained by
such holder or from fees payable to terminate the deposits from which such funds were obtained.
Any such loss, cost or expense shall be limited to the time period from the date of such payment
through the earlier of the next Interest Payment Date or the Stated Maturity of such Senior Note.
Each holder of a Senior Note shall determine the LIBOR Breakage Amount with respect

 III-7 

 

to the principal amount of its Senior Notes then being paid (or required to be paid) by
written notice to the Company setting forth such determination in reasonable detail not less than
two Business Days prior to the date of the payment. Each such determination shall be conclusive
absent manifest error.

     6. Amendments and Waivers. The Senior Indenture may be modified by the Company and
the Senior Trustee without consent of any Holder with respect to certain matters as described in
the Indenture. In addition, the Senior Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Senior
Indenture at any time by the Company and the Senior Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each series to be
affected. The Senior Indenture also contains provisions permitting the Holders of a majority in
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with certain provisions of the
Senior Indenture and certain past defaults under the Senior Indenture and their consequences. Any
such consent or waiver by the Holder of this Senior Note shall bind such Holder and all future
Holders of this Senior Note and of any note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Senior Note.

     7. Obligations of Company. No reference herein to the Senior Indenture and no
provision of this Senior Note or of the Senior Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and any LIBOR Breakage
Amount, if any, and interest on this Senior Note at the time, place, and rate and in the coin or
currency herein prescribed.

     8. Denominations, Transfer and Exchange.

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

          (b) As provided in the Senior Indenture and subject to certain limitations therein set forth,
the transfer of this Senior Note is registrable in the Security Register, upon surrender of this
Senior Note for registration of transfer at the office or agency of the Company in any place where
the principal of (and LIBOR Breakage Amount, if any) and interest on this Senior Note are payable,
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Senior Notes of this series, and of like
tenor, of

 III-8 

 

authorized denominations and for the same maturity and aggregate principal amount, shall be issued
to the designated transferee or transferees.

          (c) No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. Prior to due presentment of this Senior Note for registration of
transfer, the Company, the Senior Trustee and any agent of the Company or the Senior Trustee may
treat the Person in whose name this Senior Note is registered as the owner hereof for all purposes,
whether or not this Senior Note be overdue, and neither the Company, the Senior Trustee nor any
such agent shall be affected by notice to the contrary.

     9. No Liability of Certain Persons. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under this
Senior Note or the Senior Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder, by accepting a Senior Note, waives and releases all
such liability. The waiver and release are part of the consideration for the issuance of this
Senior Note.

     10. Governing Law. The Senior Indenture and this Senior Note shall for all purposes be
governed by, and construed in accordance with, the internal laws of the State of New York.

 III-9 

 

     THE FOLLOWING ABBREVIATIONS SHALL BE CONSTRUED AS THOUGH THE WORDS SET FORTH BELOW OPPOSITE
EACH ABBREVIATION WERE WRITTEN OUT IN FULL WHERE SUCH ABBREVIATION APPEARS:

	 	 	 	 	 	 	 
	TEN COM

	 	- as tenants in common
	 	(Name) CUST (Name)
	 	(Name) as Custodian
	TEN ENT

	 	- as tenants by the entirety
	 	UNIF GIFT MIN ACT
	 	for (name) under
	JF TEN

	 	- as joint tenants with
	 	(state) —
	 	the (State) Uniform
	 

	 	  right of survivorship and not as
	 	 	 	Gifts to Minors Act
	 

	 	  tenants in common	 	 	 	 

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

To assign this Senior Note, fill in the form below: (I) or (we) assign and transfer this Senior
Note to:

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s social security or tax I.D. number)

and irrevocably appoint                                         agent to transfer this Senior Note on the books of the Company. The agent
may substitute another to act for him.

	 	 	 	 	 
	Dated:                                         

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the other side of this Senior Note)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 

(Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Transfer Agent, which requirements will include membership or participation in STAMP or such
other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or
in substitution for, STAMP, all in accordance with the Exchange Act.)

	 	 	 
	Social Security Number or Taxpayer Identification Number:
	 	 
	 

	 	 

 III-10 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE

OR REGISTRATION OF TRANSFER OF SECURITIES

     This Certificate relates to $                                         principal amount of Senior Notes held in definitive
form by                                          (the “Transferor”). The Transferor has requested the Trustee by
written order to exchange or register the transfer of a Security or Securities.

     In connection with any transfer of any of the Securities evidenced by this certificate
occurring prior to the expiration of the period referred to in Rule 144(k) under the Securities Act
of 1933, the undersigned confirms that such Securities are being transferred in accordance with its
terms:

CHECK ONE BOX BELOW:

	 	 	 	 	 	 	 	 	 
	 	 	 	(1	)	 	o

	 	to the Company; or
	 	 	 	 	 	 	 
	 	 
	 	 	 	(2	)	 	o

	 	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made in
reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the
Securities Act of 1933; or
	 	 	 	 	 	 	 
	 	 
	 	 	 	(3	)	 	o

	 	pursuant to another available exemption from registration under the Securities Act of
1933.

     Prior to the expiration of the period referred to in Rule 144(k), unless one of the boxes is
checked, the Trustee will refuse to register any of the Securities evidenced by this certificate in
the name of any Person other than the registered holder thereof; provided, however, that if box (3)
is checked, the Trustee may require, prior to registering any such transfer of the Securities, such
certifications and other information satisfactory to the Company and the Trustee to confirm that
such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933.

	 	 	 
	 

	 	 
	 

	 	[INSERT NAME OF TRANSFEROR]
	 
	 	 
	 

	 	 
	 

	 	[SIGNATURE GUARANTEE]

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Security Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Security Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 III-11

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